Market Opportunities and Profitability of Tree Crop Planting in Nigeria
Investing in trees offer financial and social returns for years to come and it is a lucrative long-term investment in Nigeria. Despite the substantial gain on investment in tree planting, only few people are still involved in the business. This paper analyzed the profitability of investment in tree...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Joint Coordination Centre of the World Bank assisted National Agricultural Research Programme (NARP)
2020-12-01
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| Series: | Journal of Applied Sciences and Environmental Management |
| Subjects: | |
| Online Access: | https://www.ajol.info/index.php/jasem/article/view/202330 |
| _version_ | 1797228110357200896 |
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| author | OO Olugbire LA Orumwense OG Oloba OS Oke T Oyaniyi |
| author_facet | OO Olugbire LA Orumwense OG Oloba OS Oke T Oyaniyi |
| author_sort | OO Olugbire |
| collection | DOAJ |
| description |
Investing in trees offer financial and social returns for years to come and it is a lucrative long-term investment in Nigeria. Despite the substantial gain on investment in tree planting, only few people are still involved in the business. This paper analyzed the profitability of investment in tree crop planting for income generation. Benefit Cost Ratio (BCR) and Net Present Value (NPV) were calculated to determine the financial viability of tree crop planting. The study showed that tree crop planting is a profitable business as shown by positive NPV of ₦2,187,822.0 and N2, 782,214.97 for Tectonia grandis and Moringa oleifera plantations respectively, after 10-years of maturation and harvesting at 14 % discount rate with a B/C Ratio of 1.97 and 1.6 respectively. Also, NPV of N1, 575,487.10 for a 5-year small scale private nursery establishment with a B/C Ratio of 2.79 at a 14% discount rate also confirm that the investment on nursery establishment is highly profitable. It is recommended that with adequate support and incentives, farmers can take advantage of these opportunities and invest in nursery enterprise and tree crop sub-sector of the economy
Keywords: Market opportunities, Tree planting, BCR, NPV
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| first_indexed | 2024-04-24T14:51:29Z |
| format | Article |
| id | doaj.art-94c42c11c0fc4a3496c41d52785d9905 |
| institution | Directory Open Access Journal |
| issn | 2659-1502 2659-1499 |
| language | English |
| last_indexed | 2024-04-24T14:51:29Z |
| publishDate | 2020-12-01 |
| publisher | Joint Coordination Centre of the World Bank assisted National Agricultural Research Programme (NARP) |
| record_format | Article |
| series | Journal of Applied Sciences and Environmental Management |
| spelling | doaj.art-94c42c11c0fc4a3496c41d52785d99052024-04-02T19:48:45ZengJoint Coordination Centre of the World Bank assisted National Agricultural Research Programme (NARP)Journal of Applied Sciences and Environmental Management2659-15022659-14992020-12-01241110.4314/jasem.v24i11.5Market Opportunities and Profitability of Tree Crop Planting in NigeriaOO OlugbireLA OrumwenseOG OlobaOS OkeT Oyaniyi Investing in trees offer financial and social returns for years to come and it is a lucrative long-term investment in Nigeria. Despite the substantial gain on investment in tree planting, only few people are still involved in the business. This paper analyzed the profitability of investment in tree crop planting for income generation. Benefit Cost Ratio (BCR) and Net Present Value (NPV) were calculated to determine the financial viability of tree crop planting. The study showed that tree crop planting is a profitable business as shown by positive NPV of ₦2,187,822.0 and N2, 782,214.97 for Tectonia grandis and Moringa oleifera plantations respectively, after 10-years of maturation and harvesting at 14 % discount rate with a B/C Ratio of 1.97 and 1.6 respectively. Also, NPV of N1, 575,487.10 for a 5-year small scale private nursery establishment with a B/C Ratio of 2.79 at a 14% discount rate also confirm that the investment on nursery establishment is highly profitable. It is recommended that with adequate support and incentives, farmers can take advantage of these opportunities and invest in nursery enterprise and tree crop sub-sector of the economy Keywords: Market opportunities, Tree planting, BCR, NPV https://www.ajol.info/index.php/jasem/article/view/202330Market opportunities, Tree planting, BCR, NPV |
| spellingShingle | OO Olugbire LA Orumwense OG Oloba OS Oke T Oyaniyi Market Opportunities and Profitability of Tree Crop Planting in Nigeria Journal of Applied Sciences and Environmental Management Market opportunities, Tree planting, BCR, NPV |
| title | Market Opportunities and Profitability of Tree Crop Planting in Nigeria |
| title_full | Market Opportunities and Profitability of Tree Crop Planting in Nigeria |
| title_fullStr | Market Opportunities and Profitability of Tree Crop Planting in Nigeria |
| title_full_unstemmed | Market Opportunities and Profitability of Tree Crop Planting in Nigeria |
| title_short | Market Opportunities and Profitability of Tree Crop Planting in Nigeria |
| title_sort | market opportunities and profitability of tree crop planting in nigeria |
| topic | Market opportunities, Tree planting, BCR, NPV |
| url | https://www.ajol.info/index.php/jasem/article/view/202330 |
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