Abstract

This paper analyses the effect of labor opportunity cost on economic profitability of fertilizer microdosing (FM) in Burkina Faso. In order to assess the incremental change in net income when the investment cost increases and takes into account labor opportunity cost, the marginal value cost ratio (MVCR) approach is used. Using data from farmer’s field, the results showed that for both crops, the median yield of the fertilizer microdosing plots is 500 kg.ha-1, which is slightly higher than yield from recommended dose plots. Moreover, the rate of fertilizer microdosing plots of millet with a marginal value cost ratio above 2 shifts from 50% (without labor opportunity cost) to 41% (with labor opportunity cost) and not even one recommended dose plots reached this threshold. These findings argued that fertilizer microdosing adopters remain economically profitable for farmers compared to traditional practices despite the opportunity cost of labor. However, because of its importance in the process of fertilizer microdosing adoption, labor costs must be included in its economic evaluation. The results of this study confirm the need to accelerate mechanization of fertilizer microdosing application. Key words: Fertilizer microdosing (FM), labor, marginal value cost ratio, Burkina Faso. &nbsp

Highlights

  • The graphs show that 50% of fertilizer microdosing plots of millet have more than 500 kg.ha-1 compared to control plots

  • This paper focuses on understanding the effect of labor opportunity cost on the economic profitability of fertilizer microdosing in Burkina Faso

  • In terms of economic profitability, analysis of the marginal value cost ratio reveals that fertilizer microdosing remains economically profitable for some farmers despite the opportunity cost of labor

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Summary

Introduction

The objective of fertilizer microdosing (FM) promoted throughout the semi-arid countries of West Africa since the 1990s was to achieve that outcome through an improvement in the fertilizer use efficiency and reduction in investment costs (Bationo et al, 1998). Fertilizer microdosing is the application of mineral fertilizers in small doses per hill (Hayashi et al, 2008). This technology was developed to remove some obstacles due to the low rate of adoption of agricultural technologies, mineral fertilizers, which have long been recognized as essential components for increasing agricultural productivity in semi-arid countries such as Burkina Faso (FAO, 2013; Crawford et al, 2006). Aune and Bationo (2008) highlighted that the use of lowcost technologies like microdose could prompt farmers towards participating in agricultural intensification

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