Economic Evaluation of Sweet Sorghum in Biofuel Production as a Multi-purpose Crop: The Case of Zambia

Abstract

Increasing awareness of the environmental damage caused by the existing fossil fuel-based energy system and rising fossil fuel prices explain, in part, the growing interest in renewable energy sources. In March 2008, oil broke through the psychological ceiling of 100 US$ a barrel, and later in early June 2008 rose to 140 US$ on the way to 150 US$. In addition, rising issues on global warming have resulted in the need to consider alternative sources of energy. This also resulted in debates about biofuels in most developing and developed countries. Zambia is faced with an energy crisis from importation of large amounts of crude oil and the high cost of fuel and petroleum products. Sweet sorghum has been flagged as a potential biofuel feedstock in Zambia. This chapter evaluates different varieties of sweet sorghum and identifies production scenarios under which sweet sorghum can be produced in Zambia by the use of Gross Margin Analysis. It also evaluates notable trade-offs in producing sweet sorghum instead of grain sorghum. The results show that identifying high sweet sorghum yielding varieties and optimum production scenarios are important pre-requisites for the successful implementation of the use of sweet sorghum in biofuel production. The results indicate a positive relationship between the yield of sweet sorghum and the production regime.