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SIERRA LEONE maq 4ª.indd - agrilife - Europa

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6 Survey Results<br />

106<br />

Figure 46. Annual Cash flow of output value and input production costs (Leones/year)<br />

unit. Results aggregated per district are presented<br />

in Table 27 up to Table 30, respectively.<br />

As illustrated in Figure 45 more income is<br />

generated from household production in Eastern<br />

region than in the Northern region, however the<br />

magnitude of it does also vary across the different<br />

districts and the method of FNI calculation. It can<br />

be seen that based on FNI-NA calculations the<br />

overall performance of the farms in the Eastern<br />

regions is positive (with Kono being around zero),<br />

thus profitable, compared to the farms in the<br />

Northern regions, where farm net income and<br />

farm gross margin both show a negative value.<br />

Alternative calculation of FNI-PF shows positive<br />

results for FNI for all the districts, with best<br />

performing values in Kailahun district. The choice<br />

of crop appears as a determinant factor given<br />

the higher output value of cash crops (i.e. cocoa<br />

and coffee) mainly produced in the Easter region.<br />

From this viewpoint, it may be argued that higher<br />

benefits are obtained per acre in the East than the<br />

North. Nevertheless, costs in Eastern district of<br />

Kailahun were observed to fairly similar to costs<br />

in both districts of the Northern region on a per<br />

acre basis. The key difference lies in the output<br />

value which in both districts of the Northern<br />

region is roughly one-fourth the output value in<br />

Kailahun. Consequently, the balance is positive<br />

in Kailahun district and negative in the Northern<br />

region. Concerning Kenema and Kono, production<br />

is significantly lower (less than half) than in<br />

Kailahun, but so are costs, so the difference stays<br />

positive. Although, if only food crop output value<br />

is compared, the Northern districts on average<br />

appear in a similar position to the Eastern districts.<br />

For cash flow calculation (Figure 46) all<br />

expenditures that are not calculated in cash terms<br />

were excluded, and thus only those components<br />

remain where cash was actually either spent were<br />

included: seeds41 , livestock purchase, hired labour<br />

for cash crops (i.e. during collection periods), or<br />

earnings associated to sold production. As a result,<br />

the balance is slightly negative in the North and it<br />

may only be compensated through complementary<br />

coping strategies such as loans, family gifts, noncash<br />

economic transactions at the village level and<br />

aid between families or other institutional bodies<br />

(NGO’s, Government or International assistance).<br />

However, considering the very low monetary<br />

value of the negative cash-balance the socioeconomic<br />

impact is in fact quite marginal (10000<br />

Leones are roughly 1,78 EUR) and the households<br />

in Northern districts can be considered balanced<br />

around zero in real terms.<br />

41 In the case of seeds, the 2003/2004 Sierra Leone survey<br />

indicates that usually 1/4th of seeds are acquired without<br />

enterint into a monetary exchange.

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