Economic Risks of Aflatoxin Contamination in Marketing of Peanut in Benin
Table 4
Estimated costs and returns budget for vendors (wholesalers) under the following assumptions. (1) Vendors purchased nonsorted peanut and do no sort before marketing. (2) Vendors purchased nonsorted peanut and sort before marketing. (3) Vendors purchased sorted peanut at a higher price and do not sort before marketing.
Wholesalers
Retailers
Unit
Value
Value
Value
Value
Value
Value
Unshelled peanut
kg
5,500
5,225
5,500
4,500
4,275
4,500
Price
$
0.147
0.15
0.15
0.168
0.17
0.17
Revenue
$
808.5
783.8
825.0
756.0
726.8
765.0
Variable costs
Quantity purchased
kg
5,500
5,500
5,500
4,500
4,500
4,500
Price
$
0.105
0.105
$0.126
0.11
0.11
0.13
Purchasing costs
$
577.5
577.5
$693.0
495.0
495.0
585.0
Labor hour
hour
28.5
54.0
28.5
68.5
87.0
68.5
Labor costs
$
7.63
20.63
7.63
34.5
43.75
34.5
Material and equipment
$
28.89
27.84
28.89
23.63
22.58
23.63
Total variable costs
$
614.0
626.0
729.5
553.1
561.3
643.1
Income above variable costs
$
194.48
157.8
95.5
202.9
165.4
121.9
Fixed costs
Repair and maintenance
$
1.0
1.0
1.0
2.5
2.5
2.5
Depreciation equipment
$
1.13
1.13
1.13
1.23
1.21
1.23
Total fixed costs
$
2.13
2.13
2.13
3.73
3.71
3.73
Total costs
$
616.2
628.1
731.7
556.9
565.0
646.9
Net returns
$
192.4
155.7
93.4
199.1
161.7
118.1
Break-even price (per kg sold)
To cover variable expenses
$
0.111
0.12
0.133
0.118
0.126
0.139
To cover total expenses
$
0.112
0.12
0.133
0.119
0.127
0.14
Peanut is sold to vendors at the farm gate price, which is 50 FCFA per kg ($0.105). Wholesalers are vendors selling unshelled peanut in local and neighbors’ villages at 70 FCFA ($0.147) per kg. Retailers are vendors who sell only shelled nuts; price of shelled peanut is higher than the unshelled nuts: 80 FCFA ($0.168) per kg. In the third case , the purchased cost of 1 kg of peanut already sorted is 60 FCFA = $0.126. Material and equipment are considered as variable costs because they are renewed every year.
