Aspects of profitability that influence smallholder cash-crop preferences in northern Mozambique

Abstract

This study analyses profitability in terms of relationships between various aspects, indicators and cash-crop cultivation preferences. Both financial and pragmatic aspects of profitability were found to be related to cash-crop preferences. Apart from the need to promote a crop with a good farm gate price and to reduce production and marketing costs, promoters need to strengthen the wider system by supporting profitability as well as household consumption requirements. The correlation between indicators of expected profitability improved as more financial and pragmatic aspects were incorporated. Smallholder farmers' rankings of profitability correlated better with cash-crop preferences when the analysis incorporated more aspects of profitability. In addition, the results indicated the institutional support needed to improve the profitability of cash crops. This simple method of identifying smallholder preferences for one cash crop among many is of paramount importance in the design of strategies for improving agricultural market participation.Profitability, cash-crop preferences, smallholder cash-crop cultivation, northern Mozambique,

Comparison of the Profitability of Small-scale Greenhouse and Open-field Tomato Production Systems in Nakuru-North District, Kenya

“…Profitability is the perception that a crop would reward the producer with surplus income and it is often considered as the basis for a viable business (Lukanu et al, 2009). In economic analysis, profitability is a relative term derived from profit, where profit is total revenue minus total costs (Lipsey, 1975).…”

Traditional Food Crop Production and Marketing in Sub-Saharan Africa - The Case of Finger Millet in Western Kenya

“…conclude that traditional food crops are more profitable, Rourke finds that cocoa production has a similar profitability as traditional cropping systems, especially if intercrops in the production of cocoa are taken into account. A more recent study by Lukanu (2009) in Mozambique finds most nonfood cash crops to be more profitable than food cash crops. Achieving profitability in traditional food crop production is of particular importance for small-scale farmers, since these farmers are often excluded from high-value agricultural markets (Maertens & Swinnen 2009;Handschuch et al 2013).…”

“…Especially female farmers are often hampered in obtaining profitability due to a constrained access to in-and output markets as well as farm productive resources such as high quality land (Zeller et al 1998;Quisumbing & Pandolfelli 2010;Croppenstedt et al 2013;Kilic et al 2013). Although there are studies that compare the profitability of cash crops and traditional cropping systems (Rourke 1974;Boateng et al 1987;Lukanu et al 2009), we are not aware of any study that is comparing the profitability of main cereals and traditional cereals.…”

“…Besides other factors such as market access and the genetic potential of the cultivated crop, an efficient use of the given productive resources is essential to achieve profitability. While numerous studies in the context of small-scale agriculture focus on profitability (Rourke 1974;Boateng et al 1987;Lukanu et al 2009) and technical efficiency (Kaliba 2004;Goyal et al 2006;Backman et al 2011;Rao et al 2012;Wollni & Brümmer 2012) in their analysis, traditional food crops have received little attention by researchers so far.…”