This study examined the profitability and economic feasibility of a leaf-based Moringa production and processing under a plantation system in the Nigerian guinea savannah using the University of Ilorin Moringa Plantation as a case study. To achieve this objective, data on production and processing cost and revenue for the 2011/2012 planting season were collected and a simulated 10-year production and cost and revenue scenarios were scheduled based on the assumption of a constant cost and cash inflow over the same period. The cost-benefit was reported using the Return on Investment (ROI), Benefit Cost Ratio (BCR) and the Net Present Value (NPV) analyses. Result indicated an estimated average net profit of N827,109 (USD5, 137) ha/annum from a Total production cost of N1,371,360 (USD8, 580) ha/annum and a gross revenue of N2,200,000.00 (USD13,750) ha/annum derived from the sale of an average of 110kg of processed dry leaf powder output. This indicates the relative profitability of the enterprise. Furthermore, at varying discount rates of 17.5%, 20%, 22.5%, and 25%, the BCR indicated that for every N1 invested in cost, the investor could realize N1.60 in returns, the ROI indicate a profit return turnover of 26.7% of the cost of investment and a NPV estimate at the end of the 10-year period considered the project to be financially worthwhile. Based on these findings, this study recommends the encouragement of Moringa production and value addition development due to the potential it portends for income generation.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.