Academic Research Journal of Agricultural Science and Research
 

Academic Research Journal of Agricultural Science and Research 

Vol. 6(6), pp. 320-327. July, 2018.

ISSN: 2360-7874 

 DOI: 10.14662/ARJASRD2018.036

Full Length Research

Cost benefits Analysis of lemongrass (cymbopogon citratus) variety: WG-Lomisar-UA for herbal production

¹Melkamu Tilaye, ²Tamirat Girma and ³Muluken Philipose

^1,2,3Ethiopian Institute of Agricultural Research, Wondogenet Agricultural Research Center, P.O. Box. 198, Shashemene, Ethiopia. 1E-mail: melkamutw@gmail.com, 2E-mail:  tamirat.girma@yahoo.com, 3E-mail: natinard.philip1@gmail.com

Accepted 23 July 2018

The study was conducted at Wondogenet Agricultural Research Center experimental field from August 2014 to September 2017. The study was undertaken with the aim of examining the financial feasibility of WG-lomisar-UA lemongrass (Cymbopogon citratus) variety: WG-lomisar-UA for its herbal production.  For this study WG-lomisar-UA lemongrass was planted on 100m² area of land with an intra and inter row spacing of 60cm. All cost and benefit data were collected during the production period by preparing data collection sheets. The study employed financial analysis methods such as Net Present Value (NPV) and Benefit Cost Ratio (BCR) to analyze feasibility of its production. The result revealed that, the herbal production WG-lomisar-UA lemongrass required a total cost of 60,172.78 birr/ha, and provided total revenue of 152,750 birr/ha, resulted net return of 92,577.22 birr/ha in its three years of cultivation. Moreover, net present value and benefit cost ratio was found 76,454.03 and 2.44 respectively indicating that production of WG-lomisar-UA lemongrass is financially feasible. Sensitivity analysis in selected scenarios revealed that production the plant is still financially feasible. These indicate that the herbal production of this plant was profitable.    

Key Words: Feasibility study, WG-lomisar-UA, Wondognenet

How to cite this article: Tilaye, M., Girma, T., Philipose, M., (2018). Cost benefits Analysis of lemongrass (cymbopogon citratus) variety: WG-Lomisar-UA for herbal production. Acad. Res. J. Agri. Sci. Res. 6(6): 320-327

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