Abstract
Effectiveness of solar tent dryers in agricultural products has been well documented, but this information may not be generalised for use of solar dryers in all agricultural commodities and for all sizes of solar dryers. As such, we evaluated the economic viability of large capital intensive solar dryer that has been designed to dry small fish species on commercial basis on Lake Malawi. A probabilistic net present value (NPV) analysis was applied to a 15-m-long by 8-m-wide solar tent dryer which costs MK1,513,850 (US$2100) to construct and has a maximum carrying capacity 850 kg of fresh fish. The results show that the base NPV of this solar tent dryer is MWK5, 838,482.11 (US$11,762). When risk and uncertainty are considered, the probabilistic NPV becomes MWK12, 268,503 (US$24,716). The probability of obtaining a positive NPV was 58%, and we found that NPV is highly sensitive to total revenue and total cost but not to their components. We conclude that investments in large solar tent dryers are economically viable and that viability would be enhanced through access to formal fish markets where prices are stable and high.
Highlights
The increase in demand for food due to population and income growth has raised the need to increase food supply
We evaluated the economic viability of large capital intensive solar dryer that has been designed to dry small fish species on commercial basis on Lake Malawi
The results show that the base net present value (NPV) of this solar tent dryer is MWK5, 838,482.11 (US$11,762)
Summary
The increase in demand for food due to population and income growth has raised the need to increase food supply. Efforts to increase food supply have mainly been through increase in agricultural productivity and increase in cultivated area. It is, noted that one of the cost-effective means of increasing food supply is through reduction in postharvest losses [17]. The Food and Agriculture Organisation (FAO) estimates the fish postharvest losses in Africa at 40% [11], while a recent. To reduce fish postharvest losses, a fish solar tent dryer has been adapted to small fish species of Lake Malawi [4]. Fish solar tent drying is an old technology which was first used in Bangladesh [1].
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