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Protection Cultivated Report

1 Objectives

The main objective of this study is: to analyze the operations of the main horticultural crops in

protected cultivated and assess their cost – benefit ratios. to estimate the breakeaven yield and the breakeaven price

and other economic indicators for these crops.

2 Sources of data:

The data was collected from the experts in the vegetables researchers' department through designing specific questionnaire. The survey questionnaires were designed to incorporate all the data required for the purpose of the study, including:

Variable costs of farm inputs; quantities and their associated prices.

Total production and their associated prices. Labor requirements and their associated wages for different

operations. Machinery requirements and their associated wages for

different operations. Interest on variable costs. Fixed costs; machinery depreciation, interest, taxes,

insurance and land charge.

3. MethodologySpecific field survey data is collected within the current study through a specific questionnaire interview efforts. These data are analyzed and utilized crop budget tool to measure five indicators; break even yield, break-even price, return to cupic meter of water and cost-benefit ratio.

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Crop budget:Crop budget is considered one of the economic tools to estimate

the net return or profit. The estimated profit can be compared against the estimated per feddan profit for other crops and used to select the more profitable crops and crop combinations to be grown each year. It is worthy noting that the profit in this budget may not be the maximum profit possible from one feddan specific crop. Any crop budget represents only one point on a production function. Therefore, there is a crop budget for every point on a production function; so a budget does not automatically determine the profit maximizing input levels. However, the profit must be properly interpreted, as it is the return or profit above all costs including opportunity costs on owned inputs, (Ronald D. Kay).

Crop budget can be organized and presented in several different formats, but they can typically contain three different sections: income, variable costs and fixed costs. Following are the steps to estimate these sections in details:

a. Income:The first step to estimate income is to estimate the total production.

Total production contains main and by product and the associated prices of these outputs for the studied crops. Of course, these variables are the average at the sampling level (different experts) and could be considered good estimate for the actual case in the last agricultural year.

b. Variable costs:The variable costs contain seed, fertilizer, machinery, labor,

machinery repairs, fuel and other items of variable costs. The variable costs calculated by multiplying the quantities of every input by the associated price. The study also estimated the charge for the opportunity cost on capital invested in the variable cost. This charge covers the time period between expenditure of the capital and harvest when the income is received. Within the current research, an average time period of 6 months is assumed and a 6% opportunity cost is charged on the value of variable costs based on the interest cost on agricultural loans in the Principle Bank for Development and Agricultural Credit (PBDAC). In addition, the water input is specified as volume (m3) and the value of water expressed as the highest opportunity cost in alternative uses of the water (1 L.E /

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m3). To estimate water requirement of different crops, the current study utilized the data estimated by the experts at the field level for each crop.

c. Fixed costs:Fixed costs in the crop budget contain machinery fixed costs and

land charge. In the Egyptian circumstances, most of machinery work are hired and could be calculated as variable costs. Therefore, the fixed costs here are the charge of land. Land charge is the opportunity cost of land and represents the return for its use in crop production. Three methods could be adopted to determine the land charge: (1) an interest opportunity cost based on the current value of the land, (2) the owner’s rental income from a typical crop share lease, or (3) a typical cash rent charge. The current study adopted the third method because of available knowledge for the cash rent of each crop in advance as can be obtained in the Egyptian rural societies.

d. Net return: Net return calculated as the difference between the total return;

total production multiplied by their farm gate prices, and the total costs that calculated from the three items above. The net return here is not similar as its value published in agricultural economic bulletin because of the sharply price increasing in fertilizer, energy, labor wages and land rent in addition to the high increase of the outputs. On the other hand, each crop budget estimated the shadow prices of all owned inputs and estimated all the other items of irrigation cost that included fuel and oil, custom application, equipment rent, depreciation, taxes and insurances except the price of water as a resource and considered it as a cost recovery of water resource. Therefore, the net return here is expressing the economic profit.

4. Results and Discussion:5-1. Vegetable crops:Table (1) illustrates the economic indicators of the 6 vegetable

crops. According to net profit indicator, tomato, winter cucumber, spring cucumber and sweet pepper have the high values. These values represent 75762, 65922, 64362, 51096 L.E / feddan for both of them respectively. Based on the results of benefit cost

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ratio, spring cucumber, tomato and winter cucumber have the high value and represent 122%, 111% and 110 respectively. All crops have high values of benefit cost ratio except egg plant and summer cucumber because of their lower prices and a competitive of their similar in non protection cultivated vegetables. The return to cubic meter of water is absolutely high in case of spring cucumber, winter cucumber and tomato (89, 64.63 and 63% L.E / m3). On the other hand, the lowest value of the return to cubic meter of water were in egg plant and summer cucumber; represented about 14.6 and 4.13 L.E / feddan.

Table (1): Economic indicators of the vegetables cultivated protection in the year 2013.

ItemCucumber

Sweet Pepper

TomatoEgg Plant

ZuchiniClimbing beansSpring

Summer

WinterAutum

n

Net profit6436

23222

65922

26022

51096

75762

18396

24432

24534

Return to cupic meter

of water.89 4.13 64.63 36.14 40.55 63 14.6 33.93 45.43

Benefit cost ratio 122 9.83 110 53.13 68.22 111 22.82 51.36 48.61

Break Even Price (L.E /

Ton)1118 1177 1215 1331 1568 1233 2169 1605 2762

Break Even Yield (Ton)

14.5 18.83 17.01 15.98 21.96 19.73 23.86 12.84 8.29

Source: calculated from crop budget tables (1-1 to 1-9 ).

Break even Yield = Total Costs / Output price. The break-even Yield is the yield necessary to just cover all costs

at a given output price. Break-even Price = Total Costs / expected Yield. The break-even price is the price necessary to cover all costs at a

given yield level. The estimated profit can be compared against the estimated per

feddan profit for other crops and used to select the more profitable crops and crop combinations to be grown each year.

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5-2. Fruit crops:Table (2) illustrates the economic indicators of the 4 Fruit crops.

According to net profit indicator, Mango, grapes, and banana have the high values. These values represented about 32989, 28979, 23294 L.E / feddan for each of them respectively. Navel orange has a lower value (L.E 286) because of its lowest product price and the highly cost of production. Based on the results of benefit cost ratio, Mango, grapes, and banana have also the high values and represent 106%, 71% and 63% respectively while navel orange has only 0.96%. The return to cubic meter of water is similar for both mango and grapes (9 L.E / m3) while it was 4 and 0.08 L.E / m3 for banana and navel orange respectively. The lowest value of the return to cubic meter of water due to the lowest value of its net profit. However, the value of this indicator in case of fruits is absolutely small compared to its similar in vegetable crops because of the higher of the net profit and lower values of water requirement in case of vegetable crops.

Table (2): Economic indicators of the fruits cultivated protection in the year 2013.Item

Banana GrapesNavel orange

Mango

Net profit 23294 28979 286 32989Return to cupic meter of water. 4 9 0.08 9Benefit cost ratio 63 71 0.96 106Break Even Price (L.E / Ton) 1608 2606 1259 3309Break Even Yield (Ton) 10.72 7.3 16.78 3.3

Source: calculated from crop budget tables (2-1 to 2-4).

Break even Yield = Total Costs / Output price. The break-even Yield is the yield necessary to just cover all costs

at a given output price. Break-even Price = Total Costs / expected Yield. The break-even price is the price necessary to cover all costs at a

given yield level. The estimated profit can be compared against the estimated per

feddan profit for other crops and used to select the more profitable crops and crop combinations to be grown each year.

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5-3. Crop diversification options:Crop diversification refers to the different crops occupied in specific areas. Based on the experience of farmers, diversification strategy has a vital role in the field of risk aversion. Crop prices have fluctuated as sharp increasing or decreasing over the whole time.Table (3) depicts the crop mapping for the study crops. The yellow color shows the planting time till the beginning fruiting while the green one shows the fruiting phase. Table (3): Crop mapping of study crops in cultivated protection.

Options JanFeb

Mar

April

May

Jun

July

Aug

Sep

Oct

Nov

Dec

Autumn Cucumber Winter Cucumber Spring Cucumber Summer Cucumber Winter Tomato Summer Tomato Sweet Pepper Climbing Green Beans Autumn zucchini Spring zucchini Egg Plant

Crop rotation refers to the sequence of crops occupied specific area during the same year. This crop rotation has a vital role in appreciate the nutrition soil and improve it. The current study focused on the dominant rotations for protection agriculture because of the ability to controll most of factors affected agriculture.

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To evaluate the net return of water unit and benefit cost ratios, the study estimated the total net return of different crop rotations, their total costs and their water requirements, thereafter, divided the total net return of crop rotations by their total costs and water requirements. However, the estimation of net water return and benefit cost ratios allowed for the comparison of the different rotations and to determine which of them is more profitable in addition to comparing these crop rotations with fruits as a perennial crops ( table 2 above).

To calculate these indicators for crop rotations, the study calculated the different parameters of crops (table 3) and utilizing it to calculate table (4).Table (3): Some individual crop indicators of vegetable crops.

Crop Net profitWater

Requirement

Return to CM

of water

Total Cost

B/C Ratio

Summer Cucumber 3222 780 4 32778 10Autumn Cucumber 26022 720 36 48978 53Spring Cucumber 64362 720 89 52638 122Winter Cucumber 65922 1020 65 60078 110Sweet Pepper 51096 1260 41 74904 68Winter Tomato 75762 1200 63 68238 111Climbing Beans 24534 540 45 50466 49Egg Plant 18396 1260 15 80604 23Zucchini 24432 720 34 47568 51

Source: calculated from tables (1-1 to 1-9)

Table (4): Some economic indicators for crop rotations.No Rotation Net Water Return to Total B/C

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profitRequirement

CM of water Cost Ratio

1 Sweet Pepper + Summer Cucumber 54318 2040 26.63 107682 502 Autumn + spring + Summer Cucumber 93606 2220 42.16 134394 703 Winter Tomato + Summer Cucumber 78984 1980 39.89 101016 784 Winter Tomato + Autumn Cucumber 101784 1920 53.01 117216 875 Winter Tomato + Sweet Pepper 126858 2460 51.57 143142 896 Summer Tomato + Climbing Beans 100296 1740 57.64 118704 847 Climbing Beans + Spring Cucumber 88896 1260 70.55 103104 868 Climbing Beans + Summer Cucumber 27756 1320 21.03 83244 339 Egg Plant + Summer Cucumber 21618 2040 10.6 113382 1910 Spring Cucumber + Zucchini 88794 1440 61.66 100206 8911 Tomato + Zucchini 100194 1920 52.18 115806 87

Source: Calculated from table (3).As could be seen from table (4) bellow, all rotations have the

highest values of return to cubic meter of water and benefit cost ratios, except rotations number 1, 8 and 9 which have B/C ratios about 50, 33, 19% and return to CM of water valued 26.63, 21.03 and 10.6 for all of them respectively.

However, the values of these indicators for all rotations were high compared to fruits, except mango.

Annex:Table (1-1): Spring cucumber crop budget in cultivated protection. Crop Spring Cucumber AMOUNT UNIT PRICE TOTALGross Return Main 39.00 Ton 3,000 117,000 Secondry 0

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Gross Return Total 117,000 VARIABLE COSTS PER FEDDAN: AMOUNT UNIT PRICE TOTALRent Cash Land Rent (year) 1.00 Feddan 150 150

Seeds Seed / Seedlings 7,200.00 KG/Number 0.80 5,760

Water Cubic Meter 720.00 m3 1.00 720Nurse Cultivation Seedling trays 96.00 Number 10.00 960

Fertilizers

Manure 24.00 M3 60 1,440

Lime (agr. Sulphate) 3.00 bag (50 Kg) 160 480 Nitrogen 6.00 bag (50 Kg) 100 600 Phosphorus 6.00 bag (50 Kg) 60 360 Potassium 3.00 bag (50 Kg) 200 600 NPK 684.00 Kg 9 6,156Nutrition 216.00 Kg 3 648 Other Chemicals 36.00 Kg/Litre 8 288

Pesticides

Herbicides 78.00 Litre 70 5,460 Insecticides 0.00 Litre 0 0

Machinery

Fuel and Oil 720.00 Liter 1.50 1,080 Repairs 360.00 Feddan 1 360 Custom Application 6.00 applications 80 480 Equipment Rental 0.00 Feddan 0 0

Labor

Hired Labor 48.00 Man/Day 50 2,400 permanent (Family) labor 240.00 Man/Day 50 12,000

Other

Plastic Mulsh, Yarn or fiber 102.00Protection

House 15 1,530 Irrigation System Maintenance 240.00 Feddan/Year 5 1,200 Harvest tools 0.00 Feddan/Year 0 0 Other 6.00 Feddan/Year 100 600

Capital Interest (1/2 year) 330.00 L.E. 1 330 TOTAL VARIABLE COST 43,602 RETURN ABOVE VARIABLE COST 73,398

BUDGETED FIXED COSTS/ACRE Depreciation 36 Machinery Installments 720 TOTAL BUDGETED FIXED COST 9,036 Less Operator Labor 288.00 Days 50 14,400

Indicators

NET PROFIT 64,362

RETURN TO OPERATOR LABOR, LAND, CAPITAL, AND MGT 64,362RETURN TO LAND, CAPITAL, AND MANAGEMENT 9,036RETURN TO CUBIC METER OF WATER 89 BENEFIT COST RATIO 122

Break Even Price 1118per ton to cover variable costs at

39.0 tons per Feddan

Break Even Yield 14.534tons to cover

variable costs at$3,000.00 per ton

Table (1-2): Summer cucumber crop budget in cultivated protection Crop Summer Cucumber AMOUNT UNIT PRICE TOTALGross Return Main 24.00 Ton 1,500 36,000 Secondry 0

Gross Return Total 36,000

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VARIABLE COSTS PER FEDDAN: AMOUNT UNIT PRICE TOTALRent Cash Land Rent (year) 1.00 Feddan 150 150


Water Cubic Meter 780.00 m3 1.00 780Nurse Cultivation Seedling trays 96.00 Number 10.00 960

Fertilizers

Manure 24.00 M3 60 1,440

Lime (agr. Sulphate) 0.00 bag (50 Kg) 160 0 Nitrogen 6.00 bag (50 Kg) 100 600 Phosphorus 6.00 bag (50 Kg) 60 360 Potassium 3.00 bag (50 Kg) 200 600 NPK 252.00 Kg 9 2,268Nutrition 90.00 Kg 3 270 Other Chemicals 18.00 Kg/Litre 8 144

Pesticides

Herbicides 42.00 Litre 70 2,940 Insecticides 0.00 Litre 0 0

Machinery

Fuel and Oil 780.00 Liter 1.50 1,170 Repairs 60.00 Feddan 1 60 Custom Application 6.00 applications 80 480 Equipment Rental 0.00 Feddan 0 0

Labor

Hired Labor 24.00 Man/Day 50 1,200 permanent (Family) labor 120.00 Man/Day 50 6,000

Other

Plastic Mulsh, Yarn or fiber 102.00 Feddan 15 1,530 Irrigation System Maintenance 120.00 Feddan/Year 5 600 Harvest tools 0.00 Feddan/Year 0 0 Other 6.00 Feddan/Year 100 600

Capital Interest (1/2 year) 330.00 L.E. 1 330 TOTAL VARIABLE COST 28,242 RETURN ABOVE VARIABLE COST 7,758

BUDGETED FIXED COSTS/ACRE Depreciation 216 Machinery Installments 4320 TOTAL BUDGETED FIXED COST 4536 Less Operator Labor 144 Days 50 7200

Indicators

NET PROFIT 3222RETURN TO OPERATOR LABOR, LAND, CAPITAL, AND MGT 3222RETURN TO LAND, CAPITAL, AND MANAGEMENT 4536RETURN TO CUBIC METER OF WATER 4 BENEFIT COST RATIO 10

Break Even Price 1177per ton to cover variable costs at 24

tons per Feddan

Break Even Yield 18.83tons to cover variable costs at 1500 per ton

Table (1-3): Winter cucumber crop budget in cultivated protectionCrop Winter Cucumber AMOUNT UNIT PRICE TOTAL

Gross Return Main 42.00 Ton 3,000 126,000Secondry 0


VARIABLE COSTS PER FEDDAN: AMOUNT UNIT PRICE TOTAL

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Rent Cash Land Rent (year) 1.00 Feddan 150 150


Water Cubic Meter 1,020.00 m3 1.00 1,020

Nurse Cultivation

Seedling trays 96.00 Number 10.00 960

FertilizersManure 24.00 M3 60 1,440

Lime (agr. Sulphate) 3.00 bag (50 Kg) 160 480

Nitrogen 6.00 bag (50 Kg) 100 600Phosphorus 6.00 bag (50 Kg) 60 360Potassium 3.00 bag (50 Kg) 200 600

NPK 684.00 Kg 9 6,156Nutrition 216.00 Kg 3 648

Other Chemicals 36.00 Kg/Litre 8 288

Pesticides Herbicides 78.00 Litre 70 5,460

Insecticides 0.00 Litre 0 0

Machinery Fuel and Oil 1,080.00 Liter 1.50 1,620

Repairs 360.00 Feddan 1 360Custom Application 6.00 applications 80 480Equipment Rental 0.00 Feddan 0 0

LaborHired Labor 60.00 Man/Day 50 3,000

permanent (Family) labor

360.00 Man/Day 50 18,000

Other

Plastic Mulsh, Yarn or fiber

102.00 Protection House 15 1,530

Irrigation System Maintenance

240.00 Feddan/Year 5 1,200

Harvest tools 0.00 Feddan/Year 0 0Other 6.00 Feddan/Year 100 600

Capital Interest (1/2 year) 330.00 L.E. 1 330

TOTAL VARIABLE COST 51042RETURN ABOVE VARIABLE COST 74958

BUDGETED FIXED COSTS/ACRE

Depreciation 216Machinery Installments 4320

TOTAL BUDGETED FIXED COST 9036Less Operator Labor 288 Days 50 14400

IndicatorsNET PROFIT 65922

RETURN TO OPERATOR LABOR, LAND, CAPITAL, AND MGT 65922RETURN TO LAND, CAPITAL, AND MANAGEMENT 9036

RETURN TO CUBIC METER OF WATER 65

BENEFIT COST RATIO 110

Break Even Price 1215 per ton to cover variable costs at

42 tons per Feddan

Break Even Yield 17.01 tons to cover variable costs at 3000 per ton

Table (1-4): Autumn cucumber crop budget in cultivated protectionCrop Autumn Cucumber AMOUNT UNIT PRICE TOTAL




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Water Cubic Meter 720.00 m3 1.00 720

Nurse Cultivation Seedling trays 96.00 Number 10.00 960








Machinery Fuel and Oil 720.00 Liter 1.50 1,080


Labor Hired Labor 48.00 Man/Day 50 2,400

permanent (Family) labor 240.00 Man/Day 50 12,000

Other


102.00 Protection House 15 1,530


240.00 Feddan/Year 5 1,200







Indicators NET PROFIT 26022RETURN TO OPERATOR LABOR, LAND, CAPITAL, AND MGT 26022

RETURN TO LAND, CAPITAL, AND MANAGEMENT 9036RETURN TO CUBIC METER OF WATER 36

BENEFIT COST RATIO 53Break Even Price 1331 per ton to cover variable costs at 30 tons per FeddanBreak Even Yield 15.98 tons to cover variable costs at 2500 per ton

Table (1-5): Sweet Pepper crop budget in cultivated protectionCrop Sweet Pepper AMOUNT UNIT PRICE TOTAL





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NPK 1,200.00 Kg 9 10,800Nutrition 300.00 Kg 3 900








OtherPlastic Mulsh, Yarn or fiber 192.00 Protection House 15 2,880


240.00 Feddan/Year 5 1,200









BENEFIT COST RATIO 68Break Even Price 1568 per ton to cover variable costs at 42 tons per FeddanBreak Even Yield 21.96 tons to cover variable costs at 3000 per ton

Table (1-6): Tomato crop budget in cultivated protectionCrop Tomato AMOUNT UNIT PRICE TOTAL






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LaborHired Labor 72.00 Man/Day 50 3,600


420.00 Man/Day 50 21,000

Other


102.00Protection House

15 1,530


240.00 Feddan/Year 5 1,200








RETURN TO OPERATOR LABOR, LAND, CAPITAL, AND MGT

75762


BENEFIT COST RATIO 111

Break Even Price 1234 per ton to cover variable costs at 48tons per Feddan


Table (1-7): Egg Plant crop budget in cultivated protectionCrop Egg Plant AMOUNT UNIT PRICE TOTAL







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NPK 1,200.00 Kg 9 10,800Nutrition 300.00 Kg 3 900










240.00 Feddan/Year 5 1,200









RETURN TO CUBIC METER OF WATER 15BENEFIT COST RATIO 23

Break Even Price 2169 per ton to cover variable costs at 33 tons per Feddan


Table (1-8): Zucchini crop budget in cultivated protectionCrop Zucchini AMOUNT UNIT PRICE TOTAL







Fertilizers Manure 24.00 M3 60 1,440

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240.00 Feddan/Year 5 1,200










Break Even Price 1605 per ton to cover variable costs at 24

tons per Feddan


Crop Climbing Beans AMOUNT UNIT PRICE TOTALGross Return Main 15.00 Ton 5,000 75,000

Secondry 0Gross Return Total 75,000





Fertilizers Manure 24.00 M3 60 1,440


Nitrogen 6.00 bag (50 Kg) 100 600

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Phosphorus 3.00 bag (50 Kg) 60 180Potassium 3.00 bag (50 Kg) 200 600









Other Plastic Mulsh, Yarn or fiber 102.00 Protection House 15 1,530

Irrigation System Maintenance 240.00 Feddan/Year 5 1,200Harvest tools 0.00 Feddan/Year 0 0

Other 6.00 Feddan/Year 100 600











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Table (1-9): Climbing Beans crop budget in cultivated protection

Table (2-1):Banana crop budget in cultivated protection

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Crop Banana AMOUNT UNIT PRICE TOTALGross Return Main 20.00 Ton 3,000 60,000

Secondry 0Gross Return Total 60,000

VARIABLE COSTS PER FEDDAN: AMOUNT UNIT PRICE TOTALRent Cash Land Rent (year) 5,000 Feddan 1 5,000

Seeds Seed / Seedlings 672 Number 5.00 3,360

Water Cubic Meter 5,500 m3 1.00 5,500

Nurse Cultivation Seedling trays 0 Number 0.00 0

FertilizersCompost 20 M3 200 4,000

Lime (agr. Sulphate) 0.00 Kg 0 0

Nitrogen 1,000.00 Kg 1.50 1,500Phosphorus 500 Kg 1 500Potassium 1,000.00 Kg 4.50 4,500

NPK 0 Kg 0 0Nutrition 0 Kg 0 0

Other Chemicals 0 Kg/Litre 0 0

Pesticides Herbicides 6 Litre 50 300

Insecticides 6 Litre 50 300

Machinery Fuel and Oil 80 Liter 12.50 1,000

Repairs 1 Feddan 600 600Custom Application 0 applications 0 0Equipment Rental 1 Feddan 500 500

Labor Hired Labor 40 Man/Day 60 2,400

permanent (Family) labor 0 Man/Day 0 0

Other


1 Protection House 1,250 1,250


1 Feddan/Year 800 800

Harvest tools 0 Feddan/Year 0 0Other 0 Feddan/Year 0 0

Capital Interest (1/2 year) 660 Feddan 1 660







BENEFIT COST RATIO 63Break Even Price 1608.5 per ton to cover variable costs at 20 tons per FeddanBreak Even Yield 10.73 tons to cover variable costs at 3000 per ton

Table (2-2): Grapes crop budget in cultivated protection.Crop Grapes AMOUNT UNIT PRICE TOTAL



VARIABLE COSTS PER FEDDAN: AMOUNT UNIT PRICE TOTAL

Rent Cash Land Rent (year)

5,000 feddan 1 5,000

Seeds Seed / Seedlings 700 KG/Number 6.00 4,200


Nurse Cultivation Seedling trays 0 Number 0 0

FertilizersManure 15 M3 50 750

Lime (agr. Sulphate) 0 Kg 0 0

Nitrogen 300.00 Kg 2 450Phosphorus 200 Kg 1 180Potassium 200.00 Kg 5 960

NPK 0 Kg 0 0Nutrition 1.50 Kg 80 120




Machinery Fuel and Oil 60 Liter 12.50 750


LaborHired Labor 35 Man/Day 50 1,750


0 Man/Day 0 0

Other


1.50 Ton 11,000 16,500




Capital Interest (1/2 year) 660 Feddan/Year 1 660










Table (2-3): Navel orange crop budget in cultivated protection.Crop Navel orange AMOUNT UNIT PRICE TOTAL

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VARIABLE COSTS PER FEDDAN: AMOUNT UNIT PRICE TOTALRent Cash Land Rent (year) 1 feddan 5000 5,000

Seeds Seed / Seedlings 1,200 Number 5.00 6,000


Nurse Cultivation Seedling trays 0 Number 0.00 0



Nitrogen 500.00 bag (50 Kg) 1.50 750Phosphorus 200 bag (50 Kg) 1 180Potassium 200.00 bag (50 Kg) 5 960





Machinery Fuel and Oil 80 Liter 12.50 1,000




OtherPlastic Mulsh, Yarn or fiber 1 Protection House 1,250 1,250











RETURN TO CUBIC METER OF WATER 0.08BENEFIT COST RATIO 1

Break Even Price 1259per ton to cover variable

costs at20

tons per Feddan

Break Even Yield 16.79tons to cover variable

costs at1500 per ton

Table (2-4): Mango crop budget in cultivated protection.Crop Mango AMOUNT UNIT PRICE TOTAL


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VARIABLE COSTS PER FEDDAN: AMOUNT UNIT PRICE TOTALRent Cash Land Rent (year) 1 Feddan 5,000 5,000

Seeds Seed / Seedlings 700 Number 12.00 8,400

Water Cubic Meter 1500 m3 50.00 75000

Nurse Cultivation Seedling trays 0 Number 0 0


Lime (agr. Sulphate) 0.50 Kg 160 80

Nitrogen 400.00 Kg 1.5 600Phosphorus 200 Kg 0.9 180Potassium 400.00 Kg 4.8 1,920





Machinery Fuel and Oil 80 Liter 1.50 120




Other Plastic Mulsh, Yarn or fiber 1 Feddan 1,250 1,250

Irrigation System Maintenance 1 Feddan/Year 800 800Harvest tools 0 Feddan/Year 0 0

Other 0 Feddan/Year 0 0









Break Even Price 3309 per ton to cover variable costs at

8 tons per Feddan

Break Even Yield 3.31 tons to cover variable costs at

8000 per ton

References:1. Hexem, Roger W. and Earl O. Heady, 1978, Water Production

Functions for Irrigated Agriculture. Ames, Iowa: The Iowa State University Press. In Karina Schoengold and David Zilberman,

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2005, The Economics of Water, irrigation, and Development, University of California, Berkeley.

2. Molden, D.J., Hammond Murray-Rust, R.Sakthivadivel and Ian Makin. 2003, A water productivity framework for understanding and action. In.Jacob Kijne, Randolph Barker and David Molden (Eds.) Water productivity in agriculture: limits and opportunities for improvement. IWMI-CABI, Wallingford, UK, pp. 1-19.

3. Molden, D. 1997, Accounting for water use and productivity, SWIM Paper 1, Colombo, SriLanka: International Irrigation Management Institute.

4. Ronald D.Kay, 1981, Farm Management Planning, Control, and implementation, McGraw-Hill international book company.

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