Economic Risks of Aflatoxin Contamination in Marketing of Peanut in Benin
Table 6
Estimated costs and returns for peanut storage activities under the following assumptions. (i) No treatment is done for stored peanut in the traditional storage method. (ii) Decision maker authorize customers (farmers, vendors, or processors) to sort peanut. (iii) Peanut is stored for less than 3 months and more than 6 months.
Traditional method
Improved method
Unit
Normal
3 months
6 months
Normal
3 months
6 months
Value
Value
Value
Value
Value
Value
Peanut stored
kg
1,000
980
950
1,000
980
950
Price
$
0.735
0.735
0.735
1.051
1.051
1.051
Revenue
$
735.00
720.30
698.25
1,051.00
1,029.98
998.45
Labor hour
hour
6.67
6.67
6.67
3.67
3.67
3.67
Labor costs
$
2.63
2.63
2.63
2.94
2.64
2.64
Material and equipment
$
6.25
6.25
6.25
6.25
6.25
6.25
Total variable costs
$
8.88
8.88
8.88
9.19
8.89
8.89
Income above variable costs
$
726.12
711.42
689.37
1,041.81
1,021.09
989.56
Repair and maintenance
$
1.00
1.00
1.00
2.00
2.00
2.00
Depreciation equipment
$
0.82
0.82
0.82
1.74
1.74
1.74
Total fixed costs
$
1.82
1.82
1.82
3.74
3.74
3.74
Total costs
$
10.70
10.70
10.70
12.93
12.63
12.63
Net returns
$
724.30
709.60
687.55
1,038.07
1,017.35
985.82
Break-even price (per kg sold)
To cover variable expenses
$
0.01
0.01
0.01
0.01
0.01
0.01
To cover total expenses
$
0.01
0.01
0.01
0.01
0.01
0.01
Percent of quantity rejected in 2% for peanut stored less than 3 months and 5% for peanut stored after six months.
