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CULTIVATION OF FRESH CAVENDISH BANANAS

Location of the project TANZANIA Location of Cultivation

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BANANA CULTIVATION TANZANIA

Technology used for Cultivation Drip irrigation, also known as trickle irrigation or micro irrigation, is an irrigation method which saves water and fertilizer by allowing water to drip slowly to the roots of plants, either onto the soil surface or directly onto the root zone, through a network of valves, pipes, tubing, and emitters.

About CAVENDISH BANANAS The Cavendish is the name for the banana cultivar used most commonly in the world banana trade. One of many banana cultivars originating in Vietnam and China became the primary replacement for the Gros Michel banana in the 1950s. Cavendish's descendant, the Dwarf Cavendish Banana, is often grown as a houseplant. Cavendish bananas range from approximately 1525 cm in length, and are used in baking, fruit salads, fruit compotes, and to complement foods. The outer skin is partially green when sold in food markets and turns yellow when it ripens. When over-ripe, the skin will turn black and the flesh becomes mushy. Bananas ripen naturally and are at their peak ripeness when the peel is all yellow with a few dark brown specks beginning to appear.

Cost Sheet for the project of Cultivation of Cavendish banana for One acre ( First Year ) SR. 1 2 3 4 5 6 7 8 9 10 11 12 FUNCTION / PROCESS Procuring land or leasing cost Land preparation for cultivations Cost of drip irrigation system fixing Cost of manure Cost of plant @$ 0.25 + 5% causality ) Coast of planting @ $ 0.02 per plant Cost of weeding Cost of earthling up Cost of Fertication chemicals Periodical maintenance Plant production chemicals, micro nutrient , spray and bunch covering Cost of harvesting AMT US $ 0.00 22.00 660.00 44.00 315.00 25.00 22.00 44.00 440.00 300.00 240.00 80.00

Total Cost for cultivation of one acre

2,192.00

Cost for the cultivation for one Acre is US $ 2192 in first year. Total area to be cover under cultivation of banana project 300 acre.

Cost Sheet for the project of Cultivation of Cavendish banana for One acre

( Second year ) SR. 1 2 3 4 5 6 7 8 9 10 11 12 FUNCTION / PROCESS Procuring land or leasing cost Land preparation for cultivations Cost of drip irrigation system fixing Cost of manure Cost of plant @$ 0.25 + 5% causality ) Coast of planting @ $ 0.02 per plant Cost of weeding Cost of earthling up Cost of Fertication chemicals Periodical maintenance Plant production chemicals, micro nutrient , spray and bunch covering Cost of harvesting AMT US $ 0.00 22.00 0.00 44.00 0.00 0.00 22.00 44.00 440.00 300.00 240.00 80.00

Total Cost for cultivation of one acre

922.00

Cost for the cultivation for one Acre is US $ 922 in Second year.

Estimation of sales of Cavendish banana for one year As per current market situation, the sale price for one kg of Cavendish banana is US $ 0.20 at the season period and US $ 0.12 at the off-season. So

approximately, we can sell at an average cost of US $ 0.15 around the year. With advanced agricultural techniques, we can get yield up to 35 to 40 kg of Banana from per plant. Yield analysis Functions/ Factors 1. Plants Planted per Acer 2. Wastage of plant due to natural calamites 3. Yield giving plants Average yield of banana per plant =37.5 kgs Yield produce per Acer ( 37.5 Kgs X 1000 ) Average price of banana round the year US $ 0.15 1. Total Sales of banana ( US $ US $ 5625 0.15 X 37500) 2. Total Production cost US $ 2192 37,500 kgs Number of Plants 1200 200 1000

Net profit produced banana cultivation per Acer is ( US $ 5625-2192) = US $ 3433

Profit of banana Farming

Investment on Land for 300 Acer Cost of Banana Farming @ US $ 2192 per Acer x 300 Acer Revenue of Banana @ US % 5625 per Acer x 300 Acer Profit @ US $ 3433 per Acer X 300 Acer Return on Working capital for First Year Note: Land cost not consider as investment being

US $ 657,600

US $ 1,687,500

US $ 1,029,900 156 %

Investment of US $ 922 per Acer for second year Cost of Banana Farming @ US $ 922 per Acer x 300 Acer Revenue of Banana @US $5625 per Acer x 300 Acer Profit @ US $ 4703 per Acer x 300 Acer Return on Investment on Second Year

US $ 922

US $ 276,600

US $ 1,687,500

US $ 1,410.900 510 %

CASH FLOW

1ST YEAR OPENING BALANCE INVESTMENT PROFIT WITHDRAWAL OF LAND INVESTMENT AVAILABLE CASH 0 657,600 1,029,900 0

2ND YEAR 1,029,900 276,600 1,410,900 0

3RD YEAR 2,440,800

1,029,900

2,440,800

Note: All Amounts are in US $

In General for first year, if we Shipped 300 containers of premium banana of 4,5,6, hand costing are as under 1. One Standard 40 feet reefer container will carry 1540 carton of 13.5 kgs of banana IE. 20.8 MT volume 2. Carton cost will be US $ 1.2 to 1.35 and standard weight of box is approximately 1.3 kgs. 3. For stuffing 300 container we need ( 1540*13.5 kgs* 300 ) =6237 MT of banana required 4. With 300 Acer banana farming we will produce minimum 11250 MT of banana in first crop in first year which is costing US $ 657600 with an average price US$ 58.45 per ton 5. If we charge all cost of banana to all 300 containers, the cost will be US $ 105.45 per MT.

6. Actual maximum cost of banana per container will be US$ 2193 for 20.8 MT. Hence Banana cost of one box of 13.5 kgs will come to US $ 1.45 7. Carton cost US $ 1.35 maximum. 8. All other charges like setting up ropeway for collecting banana from farm to pack house required special costing and it will be capital investment for long terms. 9. Need following information to detail out projects A) Labour cost for Banana farming labours B) Skilled personal to look after farm C) Skilled Banana cutting labour cost D) Transport cost from farm to pack house E) Labour cost of helpers at pack house, for banana washing, assorting, chemical applications, weighing, vacuuming plastic bag. Marking cartoon and loading in to container, or shifting to colas stores in case container not available. F) Supervisor cost G) Transport cost of Container from port to pack house and back to port. H) Container freight to Dar-a Salam to Middle East ports. I) Any government special intensive available for Agriproducts exports.