Economic Analysis of Bell Pepper Cultivated under Screen House Production System in Ondo State, Nigeria

Abstract

Production under protected cultivation systems such as greenhouses and screen houses is a technique for regulating the environmental factors for the benefit of the plants (bell pepper) under a controlled atmosphere situation. This study assessed the economic feasibility of bell pepper production under the screen house system, focusing on cost analysis and profitability indicators. Data were obtained from farm records and the operational system of a screen house production system in the Akure North area of Ondo State. Data collated were obtained from four production cycles during two years (2022 and 2023 production seasons). The findings reveal that while the initial investment in infrastructure represents a significant portion of total costs, the overall net benefit and efficiency of the production system are favorable. With an average investment of N3,417,500 per production unit, the annual total cost of production was N1,447,417, resulting in a net benefit of N5,752,583.33 per unit and an impressive profit margin of 80%. The Benefit to Cost Ratio (BCR) exceeding 1 indicates the efficiency of the system, with every N1 invested yielding a N4.97 return. Recommendations include policymakers incentivizing infrastructure investments, reducing variable costs through targeted support programs, and promoting climate-smart agricultural practices. By leveraging the positive economic indicators and profitability of the screen house system, policymakers can implement interventions such as subsidies, credit access, and technical assistance to facilitate the adoption and scaling up of similar high-value crop production systems, ultimately enhancing agricultural productivity, farmer income, and food security.