Analyzing the Economic Benefit of Fresh Tomato Production at the Tono Irrigation Scheme in Upper East Region of Ghana

Abstract

The cultivation of fresh tomatoes at Tono irrigation scheme by mostly the lowly educated youth is bedeviled by so many challenges. However, even though the full cost of producing fresh tomato at Tono appears to be increasing rapidly over the years under review, the venture is still economically beneficial but with decreasing profitability by using conventional statistics. The average return on investment for 2006 dry season was 4.22 while that for 2010 dry season was 2.34. Thus, there was a general decline in profits over the years. Time series analysis was therefore, carried out to forecast for the next five years which confirmed the declining profits nature of the industry.  It was realized that, various interventions from government and policy makers were needed to arrest the appalling situation and make the industry one of the keys to alleviating the chronic poverty in the Upper East Region of Ghana.

Keywords: Time series model, Tono irrigation scheme, Ghana, Tomato production