Economic Risks of Aflatoxin Contamination in Marketing of Peanut in Benin
Table 5
Estimated costs and returns for processing peanut, using 2,400 kg of whole grain peanut per month, under the following assumptions. (i) Case 1: peanut is normally purchased at $0.15 per kilogram and sold at $7.35 a bassin of peanut butter. (ii) Case 2: peanut is purchased at different price due to storage length and sorting.
Case 1
Case 2
Unit
Not sorted
Sorted
Not sorted
Sorted
3 months
6 months
3 months
6 months
Value
Value
Value
Value
Value
Value
Peanut butter (1 kg @ $7.35)
kg
96.00
95.04
92.16
96.00
95.04
92.16
Revenue
$
705.60
698.54
677.38
705.60
698.54
677.38
Whole grains
kg
2,400
2,400
2,400
2,400
2,400
2,400
Unshelled nuts price
$
0.147
0.147
0.147
0.126
0.16
0.16
Purchasing costs
$
352.8
352.8
352.8
302.4
384.0
384.0
Labor hours
hour
186.0
258.0
258.0
186.0
258.0
258.0
Labor cost
$
114.08
174.58
174.58
114.08
174.58
174.58
Material and equipment
$
0.63
0.63
0.63
0.63
0.63
0.63
Total variable costs
$
467.51
528.01
528.01
417.11
559.21
559.21
Income above variable costs
$
238.09
170.53
149.37
288.49
139.33
118.17
Repair and maintenance
$
1.00
1.00
1.00
1.00
1.00
1.00
Depreciation equipment
$
0.95
0.95
0.95
0.95
0.95
0.95
Total fixed costs
$
1.95
1.95
1.95
1.95
1.95
1.95
Total costs
$
469.46
529.96
529.96
419.06
561.16
561.16
Net returns
$
236.14
168.58
147.56
286.54
137.38
116.22
Break-even price (per kg sold)
To cover variable expenses
$
4.87
5.56
5.73
4.50
5.93
5.18
To cover total expenses
$
4.89
5.58
5.75
4.52
5.95
5.20
Material and equipment are considered as variable costs because they are renewed every year.
