Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 514

Full Length Research Paper

Analysis of labor opportunity cost on the economic profitability of fertilizer microdosing (FM) in Burkina Faso

Mamadou Sanogo
  • Mamadou Sanogo
  • Faculty of Bioscience Engineering, Earth and Life Institute, Université Catholique de Louvain, Belgium.
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Frédéric Gaspart
  • Frédéric Gaspart
  • Faculty of Bioscience Engineering, Earth and Life Institute, Université Catholique de Louvain, Belgium.
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Daniel Kabore
  • Daniel Kabore
  • Centre d’Analyse des Politiques Economiques et Sociales (CAPES), Burkina Faso.
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Sibiri Jean Baptiste Taonda
  • Sibiri Jean Baptiste Taonda
  • Institut de l’Environnement et de Recherches Agricoles (INERA), Burkina Faso.
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Marie-Paule Kestemont
  • Marie-Paule Kestemont
  • Faculty of Science, Louvain School of Statistics, Biostatistics and Actuarial Science, Université Catholique de Louvain, Belgium.
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  •  Received: 26 February 2020
  •  Accepted: 16 June 2020
  •  Published: 31 August 2020

Abstract

This paper analyses the effect of labor opportunity cost on economic profitability of fertilizer microdosing (FM) in Burkina Faso. In order to assess the incremental change in net income when the investment cost increases and takes into account labor opportunity cost, the marginal value cost ratio (MVCR) approach is used. Using data from farmer’s field, the results showed that for both crops, the median yield of the fertilizer microdosing plots is 500 kg.ha-1, which is slightly higher than yield from recommended dose plots. Moreover, the rate of fertilizer microdosing plots of millet with a marginal value cost ratio above 2 shifts from 50% (without labor opportunity cost) to 41% (with labor opportunity cost) and not even one recommended dose plots reached this threshold. These findings argued that fertilizer microdosing adopters remain economically profitable for farmers compared to traditional practices despite the opportunity cost of labor. However, because of its importance in the process of fertilizer microdosing adoption, labor costs must be included in its economic evaluation. The results of this study confirm the need to accelerate mechanization of fertilizer microdosing application.

Key words: Fertilizer microdosing (FM), labor, marginal value cost ratio, Burkina Faso.