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 methodImproved method
UnitNormal3 months6 monthsNormal3 months6 months
ValueValueValueValueValueValue

Peanut storedkg1,0009809501,000980950
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 hourhour6.676.676.673.673.673.67
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 $724.30709.60 687.55 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.