Financial Viability and Profitability Analysis of Agricultural Products and Enterprises

The decision to adopt a new technology or engage into a new enterprise depends on the feasibility of the proposed project in terms of its market, technical, organizational and management, environmental, financial, and economic aspects. One of the important questions potential technology adopters or investors seeks to answer is whether the financial benefits of technology adoption or enterprise start up exceed the financial costs of the project. Further, they want to know how much capital is required to implement the project and ultimately assess the project’s net benefits. The demand for the project’s output could be greater than the supply in the market and the project has been proven to increase yield. However, whether the project is financially viable is one critical dimension to consider. Financial analysis is, therefore, needed before researchers and extension workers can give their final recommendations on new agricultural production and processing technologies or enterprises to farmers, processors, and other potential investors.

The objectives of this project are to (1) prepare and publish monographs incorporating the financial viability analysis of technologies and enterprises of selected agricultural commodities and (2) equip research personnel (national and regional) of various academic and research institutions as well as DA-BAR personnel with knowledge and skills in conducting financial viability and profitability analysis of new technologies and enterprises.