Demand-Driven Technologies for Sustainable Maize ... - IITA

417Profitability analysisThe profi tability analysis was done by valuing the seeds and grainproduced from the seven Obatanpa GH farms used for the analysis.Values of N60/kg for seed and N40/kg for grain were used as theconservative prices for purposes of the analysis. Table 4 shows thatthe average total cost was N33,770/ha; the average gross incomewas N96,914/ha, while the average net farm income (profi t) wasN63,144 /ha for farmers whose opportunity costs of land and familylabor were considered and who also used herbicide. However, lookingat Table 4 critically, fi ve of the seven farmers made a profi t but twoproduced at a loss. Three of the farmers made profi ts over and abovethe average profi t but they were also the farmers who invested morein the production process. Indeed, these farmers invested more thanthe average total cost of production, an indication that they used ahigher management level, which resulted in a good seed yield and,therefore, a higher income. The two farmers who made net losses hada relatively poor management and a low investment in fertilizers.Economics of EV 99 QPM productionOnly three farmers produced seed of EV 99 during the year of thestudy. The cost of production was derived as shown in Table 5.The average total cost of production was N39, 853/ha. About 2.5t/ha of seed and 900 kg/ha grain were produced/ha (Table 6).Table 7 shows the gross income from EV 99 seed production.An average gross income of N62, 533/ha was made. Two ofthe three farmers made a profi t while one made a loss (Table 8).The average profi t was N22680/ha and the two farmers’ profi ts wereeach above this average. The loss experienced by the other farmerwas attributable to fl ooding.Constraints to community seed production of QPM varietiesThe basic constraints to community seed production of QPM varietieswere identifi ed as follows:Inability of farmers to distinguish between seed and grain in theapplication of production practices. Farmers could not understandwhy they needed standard isolation distances when their farms werelocated between or close to other farms.Flooded fields. In years of heavy rainfall, the fi elds could be fl oodedor water- logged and this could affect the quality and quantity ofseed produced. Proper drainage and good seedbed preparation weresuggested to farmers who could not relocate their fi elds away fromareas prone to fl ooding.