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The profit per acre in onion farming can vary depending on various factors such as yield, market prices, production costs, and management practices. It’s important to note that onion farming profitability is influenced by specific circumstances and market dynamics. However, we can provide you with a general estimate based on average yields and market prices.
- Yield: The average yield of onions can vary depending on several factors, including variety, climate, soil fertility, and farming practices. In Kenya, with proper management, an average yield of 15 to 20 tons per acre is achievable for bulb onions.
- Market Prices: Onion prices fluctuate throughout the year due to seasonal variations and market demand. The prices can also vary based on the quality, size, and market channel. In 2023,the average market price is 50 Ksh /kg .
- Production costs: include expenses such as land preparation, seed acquisition, labor, irrigation, fertilizers, pest and disease control, harvesting, storage, and marketing. The costs can vary depending on individual circumstances and management practices. Proper cost management and efficiency are essential to maximize profitability.
Based on these factors, here’s a simplified example calculation of onion profit per acre: Estimated yield: 18 tons (18,000 kilograms) Market price: KES 50 per kilogram Total revenue: 18,000 kg x KES 50/kg = KES 900,000 Production costs: Let’s assume the production costs amount to KES 300,000 per acre. Profit: Total revenue – Production costs = KES 900,000 – KES 300,000 = KES 600,000
Please note that this is a simplified example, and actual profitability can vary based on specific circumstances, market conditions, and individual farm management practices. It’s crucial to conduct a detailed financial analysis considering your specific costs, yields, and market prices to estimate the profitability accurately for your onion farming venture.
Onion Doctor supports small holder farmers across Africa with quality and affordable Onion and Garlic seedlings, Onion seedlings, Farm planning services, Soil testing, Drip irrigation installation and maintenance, Agronomic support, Onion and Garlic value pack, Farm management, E-extension and on-farm training for farmers to optimize on yields and get maximum profits.