Project Costings For Year One
Basis of costings
Prices for the Participatory Rural Appraisal, initial training and monitoring were provided by the District Agricultural Development Officer (DADO). The actual costs of seeds and fertiliser are based on estimates of the number of kg/hectare required and costs per kg given by the DADO. Some of these are based on last year’s prices and may not be entirely accurate for this year. These are our calculations based on the per unit costs given to us by the DADO. They are also going to produce an estimate of costings for the project for comparison. We are currently awaiting this and it may factor in other costs that we are not aware of.
The costings are divided into two sections – the fixed costs for the Participatory Rural Appraisal, training and monitoring visits and the variable costs for seeds and fertiliser.The five projects given are only examples of the types of things that may emerge from the Participatory Appraisal to give an idea of how the costs may vary. It may be that different crops at different prices requiring different amounts of fertiliser will be more suitable for the soil type. Out of the five examples given probably the project we would be most keen on would be project five as it would allow good crop rotation allowing fertiliser use to be phased out. It was estimated that each family on average has 0.7 hectare of which varying amounts could be used for the project-introduced crops. The rest of their land could be left fallow or planted with local varieties at their own expense as at present.
N.B. Costings for running the project with 25 farmers are given in square brackets. As you will see, this does not simply halve the costs as the overheads remain almost constant.
For 50 families...
Participatory Rural Appraisal
- Refreshments for villagers – estimate 50 farmers x 40K = 2000K/day x 4 days = 8,000K
- Facilitator Allowance – 5 facilitators – 2800K/facilitator/day =14,000/day x 6 days = 84,000K
- Fuel costs – 4000K/day x 6 days = 24,000K
- Stationary costs – estimate 5,000K
- Total = 121,000K = ~£430 [for 25 farmers = 117,000K = ~£415]
Training
- Refreshments for villagers –2,000K/day x 6 days = 12,000K
- Trainers- 2800K/trainer/day = 2 trainers at 5,600K/day x 6 days = 33,600K
- Fuel costs – 4000K/day x 6 days = 24,000K
- Stationary costs – estimate 5000K
- Total = 74,600K = ~£265 [for 25 farmers = 68,600K=~£243]
Monitoring
- Fuel costs - 2000K/visit – 24 visits/year = 48,000K + 6000K for extra 3 vehicle visits = 54,000K
- Total = 54,000K =~£192 [for 25 farmers = 54,000K=£192]
Transport of seeds and fertiliser
Estimate 50,000K =~£177 (this is a wild estimate based on the fact it costs us about 10,000 to take a minibus or 2 pick-up trucks to Solomoni village from Ntcheu. It is likely that 2 of these trips may be enough to transport all the stuff, however, it would depend very much on the amount of seed and fertiliser being transported. It also may not be possible to obtain all the materials from Ntcheu and it may need to be transported from a further away location which is why a higher costing is given).
Total of overheads (excluding actual seed and fertiliser) = 299,600K = ~£1063
[for 25 farmers =289,600K=~£1027]
Examples of potential Seeds and Fertiliser costs
N.B. – the cost of fertiliser may be reduced as we shall try and ensure the training focuses more on locally produced manure for sustainability, however, full costs are given here.
Project One
0.2 ha of improved maize – 5kg/0.2ha – 200K/kg = 1000K
0.1 ha of cassava (interplanted with maize) – 10 bundles/0.1ha = 500K/bundle = 5000K
Total Seed Cost = 6000K
Fertiliser
Urea – 30kg/0.2ha – 80K/kg =2,400K
23-21 – 20kg/0.2ha – 80K/kg = 1,600K
Total fertiliser cost = 4,000K
Seed and fertiliser cost = 10,000K/family x 50 families = 500,000K = ~£1773 (~£36/family)
Total cost – 299,600K + 500,000K = 799,600K = ~£2835 = (~£57/family)
[for 25 families - 289,600K + 250,000K = 539,600K = ~£1913 = ~£76/family]
Project Two
0.2 ha of improved maize – 1000K as above
0.1 ha of soya – 8kg/0.1 ha – 200K/kg – 1600K
Total Seed cost – 2600K
Fertiliser
For maize – 4000K as above for 0.2ha
For soya – half needed therefore 1000K for 0.1ha
Total fertiliser cost – 5000K
Seed and fertiliser cost = 7,600K/family x 50 families = 380,000K = ~£1348 (~£27/family)
Total cost – 299,600K + 380,000K = 679,600K = ~£2410 = ~£48/family
[for 25 families - 289,600K + 190,000K = 479,600K = ~£1701 = ~£68/family]
Project Three
0.1 ha of improved maize = 500K
0.1 ha of QPM maize (good for nutrition as has vit A added)=2.5kg/0.1ha = 100K/kg = 250K
0.1 ha of cassava (interplanted with maize) = 5000K
Total seed cost =5750K/family
Fertiliser 4000K/family (as project 1)
Seeds and fertiliser cost =9750K/family x 50 families= 487,500K = ~£1729 (~£35/family)
Total cost – 299,600K + 487,500K = 787,100K = ~£2791 = ~£56/family
[for 25 families 289,600K + 243,750K = 533,350K = ~£1891 = ~£76/family]
Project Four
0.1 ha improved maize – 500K
0.1 ha cassava (interplanted with maize) – 5000K
0.1 ha soya -1600K
Total seed cost =7100K
Fertiliser
2000K for maize 0.1 ha
1000K for soya 0.1 ha
Total fertiliser cost = 3000K
Seed and fertiliser cost = 10,100K/family = 505,000 for 50 families = ~£1791 = £36/family
Total cost – 299,600K + 505,500K = 805,100 = ~£2855 = £57/family
[for 25 families – 289,600K + 250,500K = 540,100 = ~£1915 = £77/farmer]
Project Five
As project four – 10,100K/farmer
except also having 0.1 ha of groundnuts – need costing, assume costs same as soya (probably less as seed multiplication successful in this area – 1600K for seed +?1000K for fertiliser (ideally none but factor in higher costing)
Seed and fertiliser cost -12,700K/family x 50 families = 635,000 = ~£2252 =£45/family
Total cost - 299,600K +635,000K = 934,600 = £3314 = £66/family
[For 25 farmers – 289,600K + 317,500 = 607,100 = £2153 =£86/family]
Obviously there will be some variation in these costs. Some of these figures are based on last years seed prices which will be somewhat higher this year due to a recent fuel increase. The exact crops to be grown and in which proportions will be decided following the Participatory Rural Appraisal. This will identify areas of need and then we will be able to discuss with the DADO which of these can be met based on available resources.
[IT WAS AGREED TO PROCEED WITH PROJECT FIVE]
Project Costings for year 2
This is harder to estimate and the figures are based much more on guesswork than for year one. As stated above, for the project to have a greater chance of success, it would ideally run for two years with a much reduced package provided in the second year. It would be likely that some further training would be useful, less frequent monitoring visits and a reduced amount of fertiliser. A conservative estimate would be:
No PRA required
3 days of training required to refresh and reinforce knowledge so half of above costs = 37,300K = ~£132
Monitoring costs – 2/3rd of above = 36,000K =~£128
Transport costs – estimate 25,000K as less to be transported (less seed and half as much fertiliser)
Seed – ideally none required as varieties used can be used for two years, however estimate ¼ of seed required based on some climatic problems in year one so (based on project 5’s figures) 108,750K = £386
Fertiliser – estimated as half of that required in year one as there will have been some nitrogen fixation from crop rotation and the farmers will be using compost that they will have produced. Therefore approx (using project 5’s figures) 100,000K = £355
So total for second year 307,050K = £1089 = £22/family
Summary of recommendations
Estimate 50,000K =~£177 (this is a wild estimate based on the fact it costs us about 10,000 to take a minibus or 2 pick-up trucks to Solomoni village from Ntcheu. It is likely that 2 of these trips may be enough to transport all the stuff, however, it would depend very much on the amount of seed and fertiliser being transported. It also may not be possible to obtain all the materials from Ntcheu and it may need to be transported from a further away location which is why a higher costing is given).
Total of overheads (excluding actual seed and fertiliser) = 299,600K = ~£1063
[for 25 farmers =289,600K=~£1027]
Examples of potential Seeds and Fertiliser costs
N.B. – the cost of fertiliser may be reduced as we shall try and ensure the training focuses more on locally produced manure for sustainability, however, full costs are given here.
Project One
0.2 ha of improved maize – 5kg/0.2ha – 200K/kg = 1000K
0.1 ha of cassava (interplanted with maize) – 10 bundles/0.1ha = 500K/bundle = 5000K
Total Seed Cost = 6000K
Fertiliser
Urea – 30kg/0.2ha – 80K/kg =2,400K
23-21 – 20kg/0.2ha – 80K/kg = 1,600K
Total fertiliser cost = 4,000K
Seed and fertiliser cost = 10,000K/family x 50 families = 500,000K = ~£1773 (~£36/family)
Total cost – 299,600K + 500,000K = 799,600K = ~£2835 = (~£57/family)
[for 25 families - 289,600K + 250,000K = 539,600K = ~£1913 = ~£76/family]
Project Two
0.2 ha of improved maize – 1000K as above
0.1 ha of soya – 8kg/0.1 ha – 200K/kg – 1600K
Total Seed cost – 2600K
Fertiliser
For maize – 4000K as above for 0.2ha
For soya – half needed therefore 1000K for 0.1ha
Total fertiliser cost – 5000K
Seed and fertiliser cost = 7,600K/family x 50 families = 380,000K = ~£1348 (~£27/family)
Total cost – 299,600K + 380,000K = 679,600K = ~£2410 = ~£48/family
[for 25 families - 289,600K + 190,000K = 479,600K = ~£1701 = ~£68/family]
Project Three
0.1 ha of improved maize = 500K
0.1 ha of QPM maize (good for nutrition as has vit A added)=2.5kg/0.1ha = 100K/kg = 250K
0.1 ha of cassava (interplanted with maize) = 5000K
Total seed cost =5750K/family
Fertiliser 4000K/family (as project 1)
Seeds and fertiliser cost =9750K/family x 50 families= 487,500K = ~£1729 (~£35/family)
Total cost – 299,600K + 487,500K = 787,100K = ~£2791 = ~£56/family
[for 25 families 289,600K + 243,750K = 533,350K = ~£1891 = ~£76/family]
Project Four
0.1 ha improved maize – 500K
0.1 ha cassava (interplanted with maize) – 5000K
0.1 ha soya -1600K
Total seed cost =7100K
Fertiliser
2000K for maize 0.1 ha
1000K for soya 0.1 ha
Total fertiliser cost = 3000K
Seed and fertiliser cost = 10,100K/family = 505,000 for 50 families = ~£1791 = £36/family
Total cost – 299,600K + 505,500K = 805,100 = ~£2855 = £57/family
[for 25 families – 289,600K + 250,500K = 540,100 = ~£1915 = £77/farmer]
Project Five
As project four – 10,100K/farmer
except also having 0.1 ha of groundnuts – need costing, assume costs same as soya (probably less as seed multiplication successful in this area – 1600K for seed +?1000K for fertiliser (ideally none but factor in higher costing)
Seed and fertiliser cost -12,700K/family x 50 families = 635,000 = ~£2252 =£45/family
Total cost - 299,600K +635,000K = 934,600 = £3314 = £66/family
[For 25 farmers – 289,600K + 317,500 = 607,100 = £2153 =£86/family]
Obviously there will be some variation in these costs. Some of these figures are based on last years seed prices which will be somewhat higher this year due to a recent fuel increase. The exact crops to be grown and in which proportions will be decided following the Participatory Rural Appraisal. This will identify areas of need and then we will be able to discuss with the DADO which of these can be met based on available resources.
[IT WAS AGREED TO PROCEED WITH PROJECT FIVE]
Project Costings for year 2
This is harder to estimate and the figures are based much more on guesswork than for year one. As stated above, for the project to have a greater chance of success, it would ideally run for two years with a much reduced package provided in the second year. It would be likely that some further training would be useful, less frequent monitoring visits and a reduced amount of fertiliser. A conservative estimate would be:
No PRA required
3 days of training required to refresh and reinforce knowledge so half of above costs = 37,300K = ~£132
Monitoring costs – 2/3rd of above = 36,000K =~£128
Transport costs – estimate 25,000K as less to be transported (less seed and half as much fertiliser)
Seed – ideally none required as varieties used can be used for two years, however estimate ¼ of seed required based on some climatic problems in year one so (based on project 5’s figures) 108,750K = £386
Fertiliser – estimated as half of that required in year one as there will have been some nitrogen fixation from crop rotation and the farmers will be using compost that they will have produced. Therefore approx (using project 5’s figures) 100,000K = £355
So total for second year 307,050K = £1089 = £22/family
Summary of recommendations
- Farming project as above for initial Ntcheu Project
- Project to include Participatory Rural Appraisal, Training of farmers, provision of starter packs of seeds and fertiliser and regular monitoring visits
- Funding to be budgeted internally for year 2 of project although this would not be emphasised to the community and District Agricultural Office
- If project is successful, project addressing next priority of need proposed
Therefore a very rough and conservative estimate of costs over the two years would be in the region of £5000.
