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Vegetables cultivation is a growing trend amongst crop farmers in Nigeria. Basic reasons for this diversification are shorter gestation periods and higher returns on investment. When properly planned and implemented, some vegetable enterprises promise as much as 50 - 300% returns at certain periods of the year.
One of the challenges intending and practicing farmers encounter is the ability to estimate the profitability and break-even point of agribusiness enterprises. On this basis, the profitability of some enterprises shall be estimated in subsequent posts.

ENDNOTE:
As festive season approaches, we are pleased to inform the interested public of the availability of these commodities:
1. Grade 1 unadulterated palm oil (25 litres keg to be provided by you).
Price: #9,500
2. Grade 2 unadulterated palm oil (25 litres keg to be provided by you).
Price: #9,200
3. High yielding fluted pumpkin/Ugu seeds for your dry season cultivation or gardening.
Price: #20 per seed or #1,200 per pod
4. Farm planning and setup.
Price: depends on work specification.

Kindly contact us on:
08117198769
08084166344

FLUTED PUMPKIN
Fluted pumpkin commonly called Ugu is one of the widely consumed vegetable in Nigeria due to its high nutrient-packed value. Cultivated by seeds, it is mostly produced in the Southern parts of the country. The plant is classified into crawling and climbing or small-leaved and big-leaved by some local farmers. Yield depends on the variety of seed planted and good agronomic practice.
When properly planned, the viability of Ugu enterprise is not in doubt because it has long harvesting period.
Enterprises present in Ugu value chain includes; seeds production, leaves production, leaves marketing, seeds marketing, value addition, leaves processing, transportation and distribution etc.
At scarcity periods (dry seasons) depending on location, ROI can be as high as 100 -300% but for this estimation, moderate case scenario of its profitability in scarcity period (starting from September) is shown below on per hectare basis:
Land rent (#25,000)
Land preparation (#30,000)
Irrigation (393,000)
Labour (#360,000)
Seeds purchase ( #506,250)
Fertilization (#330,000)
Weed management (#135,000)
Pest management (#90,000)
Miscellaneous (#63,000)
TOTAL COST (#2,436,500)
Assumptions
1. For good plant density, a spacing of 1m × 0.5m shall be used.
2. The plants shall be harvested every 3 weeks for good performance through a period of 6 months.
3. Irrigation begins by November.
4. For good establishment rate, 25% seed allowance is factored into the cost.
5. Each pocket (3 seeds) shall produce an average of #30 per harvest.
6. Total cultivable area shall be 6,750 Sqm.
7. Unit cost of seed is #20
8. Farm shall be located close to a natural water source.
9. Nigerian Naira is the currency used in projection.
REVENUE
Per harvest: 13,500 pockets × #30 = #405,000
A total of 8 harvests: #405,000 × 8 = #3,240,000
PROFIT
#3,240,000 - #2,436,500 = #803,500

TOMATO
Whenever you hear the word "tomato", what pops up in your mind? To some, it is just a vegetable; a few others regard it as a commodity to be traded; while to others, it is one of the available vegetables that has the highest hectare value. Agrobizwise regards it as the King of Vegetables because of its high hectare value, culinary uses and cosmetic applications. Tomato as one amongst other fruity vegetable has several economic importance worldwide and has contributed to wealth creation of many individuals.
Below is a simple projection of tomato cultivation that can make us further appreciate the wonders of this crop:
1. Land rent, mapping and soil test (N70,000)
2. Land clearing (N20,000)
3. Harrowing (N15,000)
4. Ploughing (N15,000)
5. Seeds (N64,000)
6. Fertilizer (N80,000)
7. Herbicide (N4,000)
8. Pesticides (N16,000)
9. Nursery operations (N78,000)
10. Irrigation (N650,000)
11. Labour (N180,000)
12. Logistics (N37,000)
13. Contingency and miscellaneous (N58,950)
Total expenditures (N1,240,450)
Financial Assumptions:
1. All estimates are done in Naira.
2. The estimates are modest to avoid overestimation or underestimation.
3. Total land area considered is one hectare.
4. Projections are done to reflect market equilibrium point or at near scarcity periods.
6. Total estimated yield is 12 metric tonnes.
7. If a kg weight of fresh tomatoes cost N150, 12tonnes shall generate a total of N1,800,000. Net profit is therefore N559,550.
8. Land shall be leased close to a natural water source.
9. Surface pump and drip kits shall be installed for irrigation.
10. In subsequent production cycles, net profit shall increase because capital expenditures will not be repeated.
11. Three cycles of production can be achieved in a year.
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