A Comparative Assessment of the Profitability of Improved Sorghum Varieties in Western Ethiopia

Abstract

We compared the economic profitability of the newly registered sorghum varieties and local sorghum varieties in Assosa, Bambasi, and Homosha districts of Assosa Zone. Two improved sorghum varieties (Assosa-1 and Adukara) with one local variety were evaluated on farmers' fields and research stations. The experimental design was a randomized complete block design (RCBD) with three replications implemented on three farmers selected from each district. The results showed that improved sorghum varieties, particularly Assosa-1 were profitable with economic considerations and grain yield advantages over the local variety. The total gross revenue of Ethiopian Birr (ETB) 38792, 30487 and 22109 per hectare were generated from the sale of Assosa-1, Adukara, and local sorghum grains, respectively. The average variable costs incurred were ETB 14942, 15020 and 14581 per hectare by Assosa-1, Adukara, and Local variety, respectively. The gross benefits generated by Assosa-1 and Adukara improved sorghum varieties was ETB 23,850 and 15,467 per hectare, respectively as compared to the local sorghum variety which generated ETB 7,528 per hectare. The benefit-cost ratios were 2.60, 2.03, and 1.52 for Assosa-1, Adukara, and local variety which imply for every ETB incurred in costs, the farmer can expect a greater benefit. The net returns by the production of improved sorghum varieties were 45.22 and 18.08 for Assosa-1 and Adukara, respectively. The break-even prices and break-even yields for which sorghum producers at no loss no profit were ETB 4.62, 4.68, and 6.27 per kg and 1245.17, 1581.05, and 1534.84 kg per hectare for Assosa-1, Adukara, and local variety, respectively. The sensitivity analysis revealed that Assosa-1 sorghum variety production is more sensitive to price reduction than to yield in the study area. Therefore, we conclude that the use of the improved sorghum varieties, particularly Assosa-1 is the most beneficial and could be profitable for sorghum-producing smallholder farmers in the area.