Costs and Benefits on Ginger Cultivation, Do you know 1Ha Yields Cool 160% ROI?

We respond to the requests of our numerous readers in Ghana and across the continent. Their request specifically is on how much it costs to cultivate 1 hectare of ginger. Also, the yield in bags and the price of a bag. The questions also is that is 160% Return on Investment (ROI) even possible?

We respond very simply by presenting a breakdown cost of all activities and input that one needs to cultivate 1 hectare of ginger.

***1 hectare (ha) = 2.5 acres (ac).

Moreover, we compare the costs for 2 methods of ginger cultivation.

1. The conventional method of ginger production where you slash, burn and plough.
2. The conservation method (no-till) where do not burn after land clearing nor plough. Read more about Conservation agriculture.

Let us go straight to the figures. Amounts are in Ghana Cedis and US Dollars.

Read more on how to produce ginger.

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Rate (01 March 2021) – Source: OANDA

1USD = GHS 5.73771

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Contents hide 1 Cost for 1-hectare Ginger Cultivation using the Conventional Method 2 Cost of 1-hectare Ginger Cultivation using the No-till (Conservation) method. 3 Comparing Costs Between No-till and Conventional Methods of Ginger Cultivation. 4 Revenue from production

Cost for 1-hectare Ginger Cultivation using the Conventional Method

	ITEM	QUANTITY	UNIT COST	TOTAL COST (GHS)	TOTAL COST (USD)
1	MATERIALS
1.1	Land	2.5	150.00	375.00	65.36
1.2	Ginger planting materials	37.5	300.00	11,250.00	1,960.71
1.3	Manure	250.0	7.00	1,750.00	305.00
1.4	Weedicide	6.0	18.00	108.00	18.82
	Sub total -Materials			13,483.00	2,349.89
2	LABOUR
2.1	Land preparation	2.5	350.00	875.00	152.50
2.2	Weedicide application	6.0	20.00	120.00	20.91
2.3	Ploughing	2.5	1,000.00	2,500.00	435.71
2.4	Planting	250.0	30.00	7,500.00	1,307.14
2.5	Weed control (Manual)	30.0	35.00	1,050.00	183.00
2.6	Harvesting	42.0	35.00	1,470.00	56.54
2.7	Bagging	100.0	8.00	800.00	139.43
	Sub total-Labour			14,315.00	2,494.90
	TOTAL			27,798.00	4,844.79

Cost of 1-hectare Ginger Cultivation using the No-till (Conservation) method.

	ITEM	QUANTITY	UNIT COST	TOTAL COST (GHS)	TOTAL COST (USD)
1	MATERIALS
1.1	Land	2.5	150.00	375.00	65.36
1.2	Ginger planting materials	37.5	300.00	11,250.00	1,960.71
1.3	Manure	200.0	7.00	1,400.00	244.00
1.4	Weedicide	2.0	18.00	36.00	6.27
	Sub total -Materials			13,061.00	2,276.34
2	LABOUR
2.1	Land preparation	2.5	150.00	375.00	65.36
2.2	Weedicide application	2.0	20.00	40.00	6.97
2.3	Ploughing	2.5	0.00	–	–
2.4	Planting	250.0	35.00	8,750.00	1,525.00
2.5	Weed control (Manual)	10.0	35.00	350.00	61.00
2.6	Harvesting	42.0	35.00	1,470.00	56.54
2.7	Bagging	100.0	8.00	800.00	139.43
	Sub total-Labour			11,785.00	2,053.96
	TOTAL			24,846.00	4,330.30

Comparing Costs Between No-till and Conventional Methods of Ginger Cultivation.

Revenue from production

Average yield of ginger per hectare (ha) = 12.5 tons =12500 kg

No. of bags (50kg) = 12500/50 kg =250 bags

Farm gate price for 50 kg bag = GHC250.00 (average for 2021)

Revenue = 250 bags x Ghc250 = GHC62,500.00 ($10,892.85)

	Conventional	No-till
Net Income (GHS)	34,702.00	37,654.00
Net Income (USD)	6,048.06	6562.55

Note: This budget does not include fixed cost and overheads.