last final thesis of umer
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Relative yield =
Intercrop yield of crop A intercrop yield of Crop B intercrop yiled of crop C
+ +
Sole crop yiled of A sole crop yield of Crop B sole crop yield of crop C
Total LER = Relative yield of maize + Relative yield of cowpea
3.8 Economic analysis
Economic analysis was done using the CIMMYT partial budget analysis methodology (CIMMYT,
1988). The variables that varied the treatments were the costs of seeds, perdium (day labour) for
seeding, weeding and harvesting. During the time of purchasing we bought 2kg of maize each 17
ETB and 5kg of cowpea each 27 ETB. During the time of selling the average grain yield price of
ETB 11 per kg for maize and cowpea grain yield for Kenketi and Bole varieties of ETB 23 per kg
whereas Black eye bean ETB 26 per kg
was considered for the computation. Following the
CIMMYT partial budget analysis method, total variable costs (TVC), gross benefits (GB) and net
benefits (NB) was computed. Then treatments were arranged in an increasing TVC order with
respected benefits and dominance analysis was performed to exclude dominated treatments from
the marginal rate of return (MRR) analysis. A treatment is said to be dominated if it has a higher
TVC than the treatment, which has lower TVC next to it but having a lower net benefit. A treatment
which is non-dominated and having a MRR of greater or equal to 100% and the highest net benefit
is said to be economically profitable (CIMMYT, 1988).
Total cost that varies (TVC): This was the cost of seeds, day labour for planting, weeding and
harvesting. The cost that varied was construction of ridge and furrow, tied ridge, mulching material
and mulch application.
Gross benefit (GB): is determined by multiplying field price of soybean grain by adjusted grain
yield. GB= field price kg-1 x ADJGY
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