TY  - JOUR
T1  - Profitability and Economic Efficacy of Tamarind (<I>Tamarindus indica L.</I>) Production:A Case of Green Money in the Drylands of Northern Uganda
AU - , Buyinza Mukadasi AU - , Muyanja Senjonga 
JO  - Journal of Economics Theory
VL  - 2
IS  - 1
SP  - 1
EP  - 9
PY  - 2008
DA  - 2001/08/19
SN  - 1994-8212
DO  - jeth.2008.1.9
UR  - https://makhillpublications.co/view-article.php?doi=jeth.2008.1.9
KW  - Cost
KW  -financial analysis
KW  -open woodland
KW  -revenue
KW  -NPV
KW  -Uganda
AB  - Indigenous fruit tree species have since time immemorial been used as an alternative source of food and nutrition for many people especially in the drylands during droughts when there is food shortage. A better knowledge of the economic viability of <I>Tamarindus indica</I> production is critical for the improved management of this indigenous tree in the north-eastern belt of Uganda. Sustainability of this management will depend on the resources` tangible benefits. This study makes an attempt to compare the  net  benefits  and  costs  from <I> T. indica</I> in the open woodland and that from the cropland. Production and household surveys were carried out in Kamuli and Kaliro districts from July 2004 to February 2005. Costs and revenues of <I>T. indica</I> production were collected from local cottage firms trading in the product. Net benefits from open woodlands and croplands were determined using the Net Present Value criterion. The estimated mean productions were 127 kg/ha/yr from the open woodland areas and 84 kg/ha/yr for cropland. A significant difference (p< 0.05) was observed between per tree mean <I>T. indica</I> yield from open woodland and cropland sites. The average fodder harvest from open woodland was 2660 kg/ha/yr. The financial NPVs were Ush. 1,791,000 ha <SUP>1</SUP> from <I>T. indica</I> products in open woodland and Ush. 1,343,400 ha <SUP>1</SUP> for cropland areas (r = 0.0842). These values were larger by Ush 981,400 ha <SUP>1</SUP> and by Ushs. 450,800 ha <SUP>1</SUP>, than the sum of NPV from farm crops and crop residuals of the two sites, respectively. Exporting of <I>T. indica</I> juice could generate foreign exchange of Ushs. 60 ha <SUP>1</SUP> and Ush 42 ha<SUP>-1 </SUP>from <I>T. indica</I> in open woodlands and cropland sites, respectively. Rural households earn 74% of their annual total revenue as wage for collecting <I>T. indica</I> fruits. Sensitivity analysis showed that managing <I>T. indica</I> in open woodlands always generates a higher NPV than when left as croplands. Therefore, managing the <I>T. indica</I> stands as open woodlands is a competitive land-use alternative and provides more net benefits than both the croplands and open woodlands.
ER  -