63
13/14
Returns
Number of plantingmaterials
25,000
60,000
150,000
Less 2%mortality
24,500
58,800
147,000
Price per seedling
300
300
300
Total Revenue
7,350,000
17,640,000
44,100,000
GrossMargin
2,547,000
6,876,000
21,312,000
LessWith-holding tax (6%)
441,000
1,058,400
2,646,000
NetRevenue
2,106,000
5,817,600
18,666,000
Return on investment
0.44
0.54
0.82
Source: Surveydata 2014
The findings presented in Table 5 show that the Cost Benefit Analysis for small nurseries is relativelymore expensive as they
produce a seedling at UGX 192 compared to UGX 179 and UGX 152 for medium and large nurseries, respectively. Likewise
returnson investment progressively increased from small to largebeing0.44, 0.54and0.82 respectively. This implied that large
nursery operationsweremore efficient at utilizing resources.
b)
NorthernRegion
TheCost Benefit Analysis of theNorthern region is presented in Table 6
Table6: Cost benefit Analysis forNorthern region (Elitematerials)
Activity
Small
CostUGX
Medium
CostUGX
LandRent
50,000
250,000
AmortizedCost ofNurseryShadeConstruction
98,000
850,000
Cost of ShadeMaintenance
50,000
280,000
Depreciation ofTools andEquipment
70,000
600,000
Cost of EliteSeeds
80,000
800,000
Poly pots (kg)
320,000
3,192,000
Forest Soil (3 tonLorry loads)
240,000
1,000,000
Water
100,000
900,000
Pesticides
70,000
420,000
Manures andFoliar Fertilizers
120,000
1,100,000
Labour andSecurity
400,000
2,000,000
Management
300,000
800,000
Personal Protective equipment
80,000
270,000
Transport for seedlings to collection centre
250,000
2,500,000
TotalCost
2,228,000
14,962,000
Cost of production per seedling
223
150
Revenue
Number of seedlings
10,000
100,000
LessMortality (2%)
9,800
980,000
Price per seedling
300
300
TotalRevenue
2,940,000
29,400,000
GrossMargin
712,000
14,438,000
Lesswith-holding tax (6%)
176,400
1,764,000
NetRevenue
535,600
12,674,000
Return on Investment
0.24
0.85
Source: Surveydata 2014
The findings show that theNorthern regionhadonly small andmedium scale nursery operations and theCost Benefit Analysis
figures indicate that unit cost of producing coffee seedlings for small operators was UGX 223 compared to medium sized
nurseryUGX150. Returnson investment arehigher inmediumnursery (0.85) compared to small nursery (0.24). Both the small
andmedium scale nurseries are profitable ventures and can attract new investments whenmarkets demand for more coffee
plantingmaterials.
