IJEBM

ISSN: 2384-6151

 International Journal of Economic and Business Management
 

Vol. 8(3), pp. 18-22, April, 2020.

ISSN: 2384-6151

DOI: 10.14662/IJEBM2020.035

Full Length Research

A Shift from Subsistence Agriculture to Agribusiness: The case of Profitability Analysis of Citronella Grass Cultivation for herbal production, Southern Ethiopia

^1*Guta Bukero, ²Zeyituna Abe and ³Muluken Philipos

^1,2,3 Ethiopian Institute of Agricultural Research, WGARC, Agricultural Economics Research Process, P.O.Box, 198, Shashemene, Ethiopia. *Corresponding author’s Email: ggutabukero@gmail.com

Accepted 29 April 2020

This study has examined the agribusiness opportunities in medicinal and aromatic plants (MAPs), based on the field level information from the state of SNNPR. In Ethiopia; other than the traditional aspect, the scientific aspect of aromatic and medicinal plants is not well known and little has been done on their economic contribution to households. Therefore Wondo genet agricultural research center has carried out cost-benefit analysis for this aromatic grass namely Citronella grass (Cymbopogon winterianus) at wondo Genet experimental site. The selected plant was planted based on its recommended spacing at Wondo Genet experimental site and the required data was collected. For the analysis net return to land (birr/ha) was used as a parameter. The analysis shows that, the selected aromatic grass provides the net return of which is 80417.32 ETB/ha at fresh bio mass price of 1 ETB. The NPV and BCR for Citronella grass was found to be: 76,858.5 and   2.3   respectively.

Keywords:  BCR, Benefit, Citronella grass/ Cymbopogon winterianus, Cost and NPV

Cite This Article As: Guta B., Zeyituna A., Muluken P (2020). A Shift from Subsistence Agriculture to Agribusiness: The case of Profitability Analysis of Citronella Grass Cultivation for herbal production, Southern Ethiopia. Inter. J. Econ. Bus. Manage. 8(3): 18-22