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Economic Analysis of Leaf Production


This document was produced with the financial assistance of CTA. The ideas expressed in it are those of the authors and cannot be considered as the opinion of CTA.

Economic sheet on production of Moringa leaf powder


Case in Benin: Intercropping of Moringa with other crops by women groups.


Transformation by groups of women, either manually (mortar), or with a mill (piece work).


Table 1:

Cost of transformation by hectare and per year


Activity

Number of women working

Number of work hours/harvest

Cost of work/harvest (village processing)

Cost of work/harvest

(workshop processing)

Total cost/year (6 to 8 harvests)

Harvesting leaves

15

3h/day x 15 = 45

3,000F

3,000F

18.000

Washing leaves

10

30min/day x 10 = 5

1,000F

1,000F

6.000

Turning leaves on the drier and spreading after washing

6

30min/day x 6 days x 6 women

= 18

2,000F

2,000F

12.000

Grinding of leaves in the mill

5

30min/day x 5 =2,5


1,000F


Crushing of leaves by the women*

5

7h/day x 5

=

35

2,500F


17.000

Sieving of the powder

10

1h30/day x 10 =15

1,000F

1,000F

6.000

Storage of the powder

5

1h/day x 5

= 5


500F

3.000

Putting quantities to sell under plastic

2

2h/day x 2

=4


2,000F

12.000

Selling and delivery

3

5h/jour x 3

=15

2,000F

2,000F

12.000




11,500 FCFA

12,500 FCFA

86 000 FCFA




Table 2: Annual cost of leaf production and transformation equipment

in the village by a group of women


Designation

Quantity

Unit price

TOTAL

Seeds

3 kg

800F

2,400F

Hoes

4

600F

2,400F

Dabas

4

2,000F

8,000F

Baskets

2

2,000F

4,000F

Secateurs

2

3,000

6,000

Bags

3

350

1,050

Buckets

3

1500

4,500

Small condiment bags

1500

2

3,000

Drying sheets or mats

2

3,000

6,000

Storage recipients

2

2,500

5,000

Measuring doser

3

100

300

Mortar and pestle

1

7,000

7,000

Brooms

5

100

500

Scales

1

8,000

8,000

Sieving bowls

2

4,000

8,000

Sieve

4

400

1,600

Building rental

12

1,000

12,000

TOTAL



79,750F
















Table 3: Accumulated cost of production and transformation per ha

(intercropping)


Specific activity

Quantity/year

Total cost/ha/year

Cost for 4.375 ha

Ploughing

40% total cost of plot

12,000


Sowing

1

12,000


Re-sowing

1

1,500


Separation

1

3,000


Sub-total installation


28,500 F

124,687.5

Maintenance (manure, weeding)

40% total cost of plot

20,000 F

87,500

Harvest

7

18,000


Sub total harvest & transformation (table 1)


86,000F

376,250

TOTAL


134,500 FCFA

588,438 FCFA




Table 6: Yield, value and hours of work in the plantations monitored by GARPE


Surface area

Type of culture

Total quantity of fresh leaves harvested

(1)

Total quantity stripped leaves %


(2)

Total quantity of dried leaves %


(3)

Total quantity powder produced %

(4)

Total quantity residue %



Quantity & total value for sale


(5)

Number of hours work or number of days

4.375 Ha

Intercropping

3984.5 kg

3785 kg or 95% of (1)

567.75 kg or 15% of (2)

564.70 kg or 99% of (3)

2.3 kg or 0.5% of (4)

562.4 kg or 562,400 F at 1,000 F/kg or 843,600 F at 1,500 F/kg

866 hours or 86.6 days/year

*(1) = the quantity of fresh leaves harvested in the field

(2) = the quantity of leaves without petiole

(3) = the real quantity of dried leaves without petiole even after 14 days of drying

(4) = the quantity of powder after crushing in the mill

(5) = the quantity of powder after sieving

* Except in case of mould and handling losses, the weights mentioned are harvested.

*NB: We assume that a day’s work is equal to 10 hours.


Table 17: Economic situation of plantations monitored by GARPE after one year


Total Surface area of plantations

Total number of working hours

Investment and operating costs (with mill and bagging machines not included in the investment)

Quantity of powder produced

Total value of powder sold

Gross profit

4.375 Ha

866 hours

Plot installation

124,687.5

562.4kg

562,400 F at 1,000 F/kg


or


843,600 F at 1,500 F/kg

- 185, 538


or



+ 95, 662

Plot maintenance

87,500

Transformation

376 250

Equipment

79,750 x 2 for 2 production units

TOTAL

747, 938 FCFA



Here the cost of producing one kilo of leaf powder is 747, 938 / 562.4 = 1,330 FCFA/ kg, or 2 € /kg, which is half of the cost of the intensive Senegalese system, but still quite a high price for local sale.


Selling at 1,500 FCFA/kg generates a profit, but rather small (170 FCFA/kg). Nevertheless, the women groups and farmers are interested in this production and more and more numerous to get involved. In this system, production costs are reasonable, especially considering that they are a little overrated, with the buying of basic equipment (hoes) and the pricing of women working time.


Actually, 80% of the production and processing costs are manpower. This means that on top of the 170 FCFA, the Moringa powder sellers earn 80% x 1,330 FCFA = 1,064 FCFA per kilo to pay for their working time.


Rather than production costs, the low yields are what reduces profitability. It must be noted that this production is practiced in a rather dry area, without irrigation, and Moringa is intercropped with other plants. The yields per hectare are low compared to Togo, Niger and Senegal, because the trees are much further apart, but the profits are made up by the associated crops.




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