Economics Research International / 2012 / Article / Tab 5

Research Article

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
UnitNot sortedSortedNot sortedSorted
3 months6 months3 months6 months

Peanut butter (1 kg @ $7.35)kg96.0095.0492.1696.0095.0492.16
Whole grains kg2,4002,4002,4002,4002,4002,400
Unshelled nuts price$0.1470.1470.1470.1260.160.16
Purchasing costs$352.8352.8352.8302.4384.0384.0
Labor hourshour186.0258.0258.0186.0258.0258.0
Labor cost$114.08174.58174.58114.08174.58174.58
Material and equipment$0.630.630.630.630.630.63

Total variable costs$467.51528.01528.01417.11559.21559.21

Income above variable costs$238.09170.53149.37288.49139.33118.17

Repair and maintenance$
Depreciation equipment$0.950.950.950.950.950.95

Total fixed costs$1.951.951.951.951.951.95

Total costs$469.46529.96529.96419.06561.16561.16

Net returns $236.14168.58147.56286.54137.38116.22

Break-even price (per kg sold)
 To cover variable expenses$4.875.565.734.505.935.18
 To cover total expenses$4.895.585.754.525.955.20

Material and equipment are considered as variable costs because they are renewed every year.

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