Abstract: Though, Ethiopia has great potential for aromatic and medicinal plants cultivation, the country does not get benefit so far as per its potential. Other than the traditional aspect, the scientific aspect of aromatic and medicinal plants in general and Menth Piperita L. commonly known as peppermint in particular is not well known.  As a result nothing has been done on the costs, returns, profitability, and financial feasibility of peppermint cultivation. Therefore, the study was aimed at estimating the costs, returns, profitability, and financial feasibility of peppermint cultivation for herbal production to provide the information to concerned body. The study was conducted at Wondo genet agricultural research center experimental field, Ethiopia. For this study stolons of peppermint was planted on an area of 100m² with an inter-raw spacing of 60cm and all the required cost and benefit data were collected. For the estimation of profitability net return to land was used whereas cost benefit analysis was used for financial feasibility analysis and the two popular measures namely net present value and cost benefit ratio were applied for final decision making. The result of analyses shows that, peppermint cultivation for herbal production requires a total cost of 50299.85 birr/ha and provides total revenue of 80300 birr/ha. The finding also shows that due to absence of initial costs like cost of ploughing, planting material and labour cost for planting material preparation, planting and land preparation; the second year cost of cultivation is 41.54% lower than the first year and labour cost accounts the largest share of the total cost of cultivation which is 75.11%. Moreover, in the cultivation of peppermint the first year total revenue shares the largest amount which is 71%. Furthermore, given the current output and input prices used, involvement in cultivation of peppermint is profitable and can provide a net return of 30000.15 birr/ha. Finally, the result shows that the value of net present value and benefit cost ratio is 27305.70 birr/ha and 1.61 respectively indicating that involvement in cultivation of peppermint is financially acceptable.

Keywords: cost benefit ratio, net present value, net return, peppermint.

Title: Profitability and Financial Feasibility of Peppermint (Mentha piperita L.) Cultivation for Herbal Production in Ethiopia

Author: Hassen Nurhussen, Muluken Philipos

Volume 9, Issue 2, March 2022 - April 2022

Page: 1-7

International Journal of Novel Research in Humanity and Social Sciences

ISSN 2394-9694

Novelty Journals

Website: www.noveltyjournals.com

Published date: 07-April-2022