Cost benefit analysis of coffee growing in Mpogo Parish, Bukhulo Sub County in Sironko District

Abstract

The study was carried out to analyse the cost and benefits of coffee growing in Mpogo parish. It also aimed at evaluating the contribution of coffee income to household income. To achieve this, descriptive survey which was qualitative and quantitative in nature was carried out using interview schedule and questionnaires as data collection instruments. Descriptive statistics,Gross margin=𝑡𝑜𝑡𝑎𝑙𝑟𝑒𝑣𝑒𝑛𝑢𝑒−𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡𝑠∗ 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡𝑠*100, Relative income =Annual coffee income/Total household income×100%. These were all used in analysing the data that was collected in the field. It was found out that the age of fifty five and above contribute much to coffee growing. It was also found out that men do a lot of coffee growing compared to women and the highly educated are not much involved in coffee growing compared to the uneducated and the less educated. According to the findings coffee contributes less household income compared to other agriculture activities. Coffee has a high gross margin and this could second its production as there are lots of profits. Labour contributes to the most costs in coffee production compared to other activities. Among the benefits that were found from coffee production include coffee husks used as manure, money for house construction, money for buying land, etc. I recommended that more land should be allocated for coffee production as it has high gross margin.