Investment Opportunities in Ethiopia: The Case of Financial Feasibility of Rosemary Production

Abstract

This study was conducted at Wondo Genet Agricultural Research Center experimental field from January 2018 to March 2021. The study was undertaken to examine the financial feasibility of WG-Rosemary-III rosemary variety for fresh herb production and WG-Rosemary-II rosemary variety for dry herb production. For this study, both rosemary varieties were planted on 100m² areas of land with an intra and inter-row spacing of 60cm. All cost and benefit data were collected during the cultivation period by preparing data collection sheets. The study utilized financial analysis methods such as net present value (NPV) and benefit-cost ratio (BCR) to analyze the feasibility of their production. The study found that the net present value of production of WG-rosemary-III for fresh herb was birr 1,599,641.65 per hectare in its entire three years course of cultivation, which indicates that its production is financially feasible. The benefit-cost ratio of production of WG-rosemary-III for fresh herbs was birr 7.11 per hectare, which indicates that a 1 ETB outlay for this rosemary production results to gain a net return of birr 6.11 per hectare. Besides the net present value of production of WG-rosemary-II for dry herb was birr 897,179.46 per hectare in its entire three years course of cultivation, which indicates that its production is financially feasible. The benefit-cost ratio of production of WG-rosemary-II for dry herbs was birr 4.01 per hectare, which indicates that a 1 ETB outlay for this rosemary production results to gain a net return of birr 3.01. The aforementioned results indicate that the production of these rosemary varieties is profitable.

DOI: 10.7176/RJFA/14-15-02

Publication date:August 31^st 2023