Bananas and Food Security - Bioversity International

716 Les productions bananières / Bananas and food security – Session 4
Table 6. Summary of estimated compensation (incremental profit) for adopting
the use of treated plantain suckers while using traditional weeding practices
at on-farm sites in Nyinahin and Gyedu.
Site Measure Benefita in Cedis per 0.1 ha
Nyinahin Net present value 151,810
Benefit cost ratio 3.71
Gyedu Net present value -21,330
Benefit cost ratio 0.54
Farm average Net present value 65,240
profitable on the basis of the NPV criterion, while the adoption of treated material and
traditional weeding strategy is most profitable from the BCR criterion. Given, however,
that the Net Present Value is the preferred measure of project worth for choosing among
mutually exclusive projects or project options (Gittinger, 1982), it is considered that the
use of treated suckers, improved management and intercropping would be the most
profitable strategy to recommend to farmers.
Conclusions
Benefit cost ratio 2.28
a The prevailing lending rate (interest rate) for loans in the agricultural sector is between 40-45%.
The peak interest rate of 45% was used as the compound factor to calculate the NPV and BCR.
Table 7. Summary of estimated compensation (incremental profit) for adopting
the use of treated plantain suckers and improved management practices at on-farm
sites in Nyinahin and Gyedu.
Site Measure Benefita in Cedis per 0.1 ha
Nyinahin Net present value 163,773
Benefit cost ratio 2.53
Gyedu Net present value 46,557
Benefit cost ratio 1.45
Farm average Net present value 109,515
Benefit cost ratio 2.08
a The prevailing lending rate (interest rate) for loans in the agricultural sector is between 40-45%.
The peak interest rate of 45% was used as the compound factor to calculate the NPV and BCR.
Results from on-farm trials indicated that the use of pest-free planting material, together
with regular weeding, optimum plant spacing and intercropping, resulted in sustained
higher yields and improved sucker production compared with traditional production
practices. Economic analysis has shown conclusively that these agronomic benefits
translate into profits over a period of at least three years (estimated compensation of
1.1 million Cedis/ha), suggesting that such practices can be recommended to farmers for
adoption.