Research Article: Profitability of Producing Early Generation Rice Seed Under Pawe Districts: Northwestern Ethiopia

Abstract

This research was conducted on the profitability of producing early-generation rice seeds under pawe districts in northwestern parts of Ethiopia. Early-generation seed production is a promising business that can be a solution to increase rice productivity and farmers' income. However, limited technology use, soil preference of commodity, and limited rice seed multiplier companies and human resources often become obstacles to addressing improved seed for farmers, especially smallholder farmers. The main purpose of early-generation seed production is to maintain the genetic potential and identity of a variety and regular provision of high-quality breeder seed which is the basis for subsequent seed production. Variety maintenance, production, and distribution of the breeder, pre-basic, and basic seed are carried out by the public breeding institutions or private seed sector. Samples were taken from rice seed farmers within two production seasons. This research aims to understand the economics of current seed production in the case of rice crops and provide basic information cost structure of EGS production for private and public enterprises. The analysis carried out includes cost analysis, income, and profitability analysis. The results showed that rice seed farmers were profitable with a 1.381 benefit-cost ratio and 27.58 profit margins. The total profit of one-hectare pre-basic seed production of rice was 47,433.565 which is the difference between total revenue (Price*Quantity =171939.39) and total cost (124,505.825).