Profitability of maize production in Kapchorwa district, Uganda

Abstract

Maize plays an important role in the livelihoods of most people of Kapchorwa district. It is a staple food crop in the district and an important source of income to the people. Thepurpose of the study was to determine profitability of the maize enterprise in Kapchorwa district. Specific study objectives characterized maize farmers determined gross margins earned from the maize enterprise and investigated factors that affect the level of gross margins earned from the maize enterprise in Kapchorwa district in 2018. The target population was maize farmers of Kapchorwa, 62 respondents were randomly sampled and data was collected by cross section surveys using a questionnaire and observation.The results show that; 79% of the respondents were males and 21% were females, average age of farmers was 42 years, 66% of the respondents were farmers by occupation while 34% were other occupations, average total land holding was 2.9 acres per household and 42% of the total land was under maize production. The study revealed that maize farmers in Kapchorwa district made profit in 2018 where by the farmers earned fairly high gross margins despite the low prices of maize. Costs of fertilizers contributed the highest percentage to the total variable costs that were incurred by the maize farmers. The study revealed that farmers who marketed their maize in fresh form earned more revenue as compared to those who marketed in dry form. Factors such as total variable costs, size of household, total land holding and application of fertilizers had a significant effect on the level of gross margins earned from the maize enterprise. Total variable costs were very important in that they determined the level of gross margins earned by maize farmers in Kapchorwa district. Factors such as age of farmer, experience in maize production, occupation of a farmer and access to agricultural information did not have a significant effect on the level of gross margins earned from the maize enterprise.