Profitability of contractual bread wheat seed production in Mecha district of Amhara region, Ethiopia

Abstract

The study was undertaken to examine the profitability of contractual bread wheat seed production in Kudmi village of Mecha district in Amhara region, Ethiopia. Primary data were collected from fourteen seed growers using structured questionnaire. The analytical tools employed include descriptive statistics and average net farm income. Results revealed that the average total cost of production per hectare is Br 8,478.82 ($ 493.82); the average gross revenue per hectare is Br 17,783.72 ($ 1,035.74); and hence the average net profit per hectare is Br 9,304.90 ($ 541.93). The findings also showed that an index of 1.10 economic efficiency of certified bread wheat seed production indicating that contractual bread what seed production is a profitable venture in the study area. The study identified non-application or improper application of inputs (fertilizers and seed) and not exercising the recommended management practices were the major problems in seed production. It is necessary to provide adequate extension service for farmers to promote better seed management technologies and efficient use of agricultural inputs.