What is the Cost of Planting Coconut per Hectare?

October 21, 2022


The cost of planting coconut per hectare is shown in the below tables.

Cost Analysis for One Hectare of Coconut

Year 1

Cost of Land Acquisition

100,000.00

Cost of Coconut Seedlings

150,000.00

Fertilisers

75,000.00

Manure

10,000.00

Pesticides

10,000.00

Cost of Transplanting

10,000.00

Labour Cost

50,000.00

Herbicides

15,000.00

Farm Tools and Machines

20,000.00

Farmland Preparation

50,000.00

490,000.00

Year 2

Fertilisers

85,000.00

Manure

5,000.00

Pesticides

10,000.00

Labour Cost

50,000.00

Herbicides

15,000.00

Farm Tools and Machines

25,000.00

190,000.00

Year 3

Fertilisers

95,000.00

Manure

5,000.00

Pesticides

10,000.00

Labour Cost

50,000.00

Herbicides

15,000.00

Farm Tools and Machines

25,000.00

Cost of Harvesting

20,000.00

220,000.00

Revenue Analysis

Revenue Analysis Year 4Year 5Year 6Year 7Year 8Year 9
Number of Harvested Coconuts per hectare                   10,000             15,000               20,000            30,000             30,000            30,000
Price of Coconut                   150.00             150.00               150.00            150.00             150.00            150.00
Total Revenue        1,500,000.00  2,250,000.00    3,000,000.00 4,500,000.00  4,500,000.00 4,500,000.00

Profit Analysis

Profit Analysis Year 4Year 5Year 6Year 7Year 8Year 9
Total Revenue             1,500,000        2,250,000          3,000,000       4,500,000        4,500,000       4,500,000
Total Cost           490,000.00     190,000.00        220,000.00     220,000.00     220,000.00    220,000.00
Profit        1,010,000.00  2,060,000.00    2,780,000.00 4,280,000.00  4,280,000.00 4,280,000.00

Assumptions of the Cost Analysis of a One Hectare Farmland of Coconut

In year 1, total cost or expenses is expected to be ₦490,000. These costs include cost of land acquisition, cost of coconut seedlings, fertilizers, manure, pesticides, cost of labour, farmland preparation, cost of transplanting and herbicides.

In year 2, total cost is expected to be incurred is ₦190,000. These costs include cost of fertilizers, manure, herbicides, farm tools and machines, pesticides and labour cost.

In year 3, total cost is expected to be ₦220,000. These costs include cost of fertilizers, manure, herbicides, farm tools and machines, pesticides and labour cost.

We envisage that the cost will increase by the annual inflation rate till the foreseeable future. Please note that a coconut tree can fruit for above 25 years. So you would be expected to incur some costs till the foreseeable future.

Assumptions of the Revenue Analysis of a One Hectare Farmland of Coconut

It is assumed that the coconut will start fruiting from the end of year 4. It should be noted that some varieties of coconut can start fruiting after 3 years. Each coconut tree is expected to produce 50 coconuts per tree. A hectare typically has 200 coconut trees, hence, a one hectare farm will produce 10,000 coconuts with a sales revenue of ₦1,500,000 (N150 per coconut).

In year 5, 15,000 coconuts are expected to be harvested with an expected sales revenue of ₦2,250.000.

From year 7 to the 25 – 30th year, about 30,000 coconuts are expected to be harvested each year with an expected sales revenue of ₦4,500,000. Please note that we have not factored inflation. We also assumed the sales price of coconut will remain constant which is impossible.

Assumptions of the Profit Analysis of a One Hectare Farmland of Coconut

Profit on palm oil in year 4 is expected to be ₦1,010,000. Profit in Year 5 is expected to be ₦2,060,000. Profit beyond year 5 is expected to rise significantly because of the expected increase in yield of the coconut.

Note to Computations

The data in the computations were gotten from public records. We did not take into cognizance the effects of inflation and the volatility in the value of the Naira.

Kindly note that the yield we assumed is conservative. Some varieties of coconut can yield 200 coconuts per tree.

You should do your own market research and due diligence before venturing into the business of coconut farming.

Should you need a detailed business plan, market research or feasibility studies for coconut cultivation in Nigeria, kindly reach us through sales@vegieconcept.ng.

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