Description
The Challenge
The number of hectares that a small-scale farmer is able to cultivate is limited by the time it takes to manually prepare the land for planting. Land preparation involves creating large, evenly spaced ridges each year as a result of the high rainfall experienced in Northern Zambia. The small-scale farmer does not have access to machinery to prepare the land and, each year, uses a hand-held hoe to clear the land and create these ridges.
The Agripreneur Solution
A beast of burden, such as an ox or steer, can be an excellent “development ladder” for the small-scale farmer. It can greatly reduce the labour required to prepare the field each year. A single family with access to an ox and a plow can easily prepare double the land as compared to the use of only a hoe. Agripreneur has negotiated a use agreement for two steers and has purchased a special plow to make ridges. We intend to rent the ox and plow to local farmers at an affordable price in order to allow them to cultivate more land, and thereby generate significantly more income.
The Numbers
Capital Cost
A sample of the cost of this Ox Project is set forth below. A single ox and plow can serve a number of nearby villages.
Item | Cost (Kwacha) | Cost (USD) (1) |
Ox | 3,000 | $165 |
Transportation | 1,500 | $83 |
Plow | 1,600 | $77 |
Total | 6,100 | $335 |
Notes:
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- At an exchange rate of 18.2 Kwacha to 1USD
Annual Income
We intend to rent the steer and plow out to other famers in the surrounding area this growing season. The estimated income from this project is as follows:
Kwacha | USD (1) | |
Revenue (2) | 9,000 | $494.50 |
Expenses | ||
Feed (3) | 0 | 0 |
Vaccinations | 400 | $22.00 |
Shepherd | 1,200 | $66.00 |
Total Expenses | 1,600 | 88.00 |
Total Income | 7,400 | $406.50 |
Notes:
- At an exchange rate of 18.2 Kwacha to 1USD
- We have used a slightly lower rate than farmers would pay for hiring manual labour to plow their field. We have assumed that the farmer will plow 1 hectare each for 15 farmers per year. Note the ox will generate additional income from transportation, which is not included above.
- There is no cost for feed, as the ox, will be grazed with other cattle. The only cost will be a de minimis payment to the Shepherd.
Required Donation to Purchase One Ox and a Plow
$335
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