VEGETABLE ENTERPRISE GUIDELINE

BACKGROUND

Vegetables production plays an important role in human diet. the inclusion of Vegetables in agriculture is an important undertaking because unlike other agriculture commodities, it has been realized that it can be practiced profitably at both large and small scale. Over and above its potential for being a profitable commodity, horticulture production plays an important role in socio-economic development as it alleviates the current unemployment status by creating jobs to the surrounding communities. The guideline will be confined to the common vegetables grown mostly under open cultivation. It provides minimum requirements for establishing a sustainable and profitable Vegetable project. Project requirements vary depending on the botanical characteristics, climatic requirements. with size, location, inputs used, as well as other variables. However the success of any project is determined by the way inputs are combined and the quality of decisions regarding production, investment, and financing, marketing and human relations aspects. It is important for project promoters to be conversant with these input-output relationships to be able to establish viable and sustainable projects.

The financial estimates and projections will be based on one (1) hectare. 1 These guidelines will be confined to vegetable groupings: Group 1: Leafy (cabbage, spinach, rape, choumolliar, broccoli, lettuce and cauliflower). Group 2: Fruit Vegetables (tomatoes, green peppers, eggplants, garden egg) Group 3: Root/Bulb Vegetables (onion, carrots, garlic, beetroots) Group 4: Leguminous (garden peas, green beans).

PREREQUISITES To establish a viable vegetable project, there are certain essential production resources and requirements that must be available. These are: Water Vegetables require large quantities of water and they can only thrive under adequate soil moisture conditions. There must be an established and reliable water source (perennial) from a borehole, river, dam or any other available source. The quality of the water will also dictate the type of vegetables to be grown. While some vegetables prefer acidic conditions, others will thrive on neutral to alkaline environments. It is therefore important to strike a balance between the water and soil conditions to facilitate optimum production for the chosen crops. Irrigation System Where the water is not adequate, a reservoir could be constructed and used as a buffer in a case where inflow into a reservoir is less than out flow or withdrawal. Various pumping units are used for 2 Green pepper a) Revenue No Item Quantity Unit Price (P) Total Revenue(P) 1 Produce (30 Tonnes) 6000*5kg 4.00 24 000 Variable costs (VCs) a) Production Costs Item Quantity Unit cost Total Cost 2 Seed 300g 500.00 1 500.00 3 Fertilizer; 2:3:1 Potassium Phosphate 10*50kg 3*50kg 180.00 260.00 2000.00 780.00 4 Pesticides (Various) 1200.00 5 Ploughing 500.00 6 Labour: Seedling production Land preparation Irrigation Staking Transplanting Weeding Pest control Top dressing 45md 64md 22md 60md 26md 72md 15md 4md 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 360.00 760.00 380.00 1 200.00 520.00 940.00 280.00 200.00 7 Total production costs(2+3+4+5+6) 12 320.00 b) Marketing Costs 8 Labour: Harvesting 235 Mhrs 4.00 940.00 9 Empty boxes 3000 boxes 3.00 6000.00 10 Transport to market 2000 bags @ P 3.00/Bag 6000.00 11 Total marketing costs(8+9+10) 12 940.00 12 Total VC (7+11) 25 260.00 13 Gross margin(1-12) 25 140.00 14 Breakeven price P0.84/kg 15 Break even yield 31575kg Md = Man Days (Assuming a 10 hr duration) 22 drawing and pressurizing water into the system. The most commonly used are submissible, mono, and centrifugal pumps. Assuming there is an existing borehole, the cost of a complete set drip and sprinkler irrigation systems are estimated at P120 000 and P80 000 respectively. Applicants are strongly advised to consult with irrigation officers for proper design of systems before purchasing irrigation equipment. The amount of water required per day will vary considerably with location, soil types, crops to be grown and the type of irrigation system and time of year in use. Land The conventional method is when planting is done on the open land, the common areas under production range from 0.25-2 hectares of land, but for a viable project the area should be at least one (1) hectare. Labor Labour availability in the locality is crucial; this is because vegetable production is labour intensive and as such requires adequate manpower for all operations. Four (4) permanent workers are required per hectare, but during peak periods (planting, weeding and harvesting) the demand increases warranting use of casual workers. Market All successful business initiatives is market led, therefore soliciting a market for the business prior to production is essential. This should be done at the business conceptual stage before drafting either a business or a cropping plan. This will guide all the farm operations, these include but not limited to: • Types of crops to grow • When to grow 3 Beetroot a) Revenue No Item Quantity Unit Price (P) Total Revenue(P) 1 Produce(15tonnes) 30000*1kg 2.00 30 000.00 Variable costs (VCs) a) Production Costs Item Quantity Unit cost Total Cost 2 Seed 14 kg 1200.00 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 525kg 9*50kg 2000.00 210.00 2 100.00 1 890.00 4 Pesticides (Various) 280.00 5 Ploughing 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 101md 24md 40md 215md 14md 10md 20.00 20.00 20.00 20.00 20.00 20.00 2 020.00 480.00 800.00 4 300.00 280.00 200.00 7 Total production costs(2+3+4+5+6) 16 450.00 b) Marketing Costs 8 Harvesting 300000 bundles 1 500.00 9 Plastic Bags 1 200.00 10 Transport to market P0.10/bundle 3 000.00 11 Total marketing costs(8+9+10) 5 700.00 12 Total VC (7+11) 22 150.00 13 Gross margin (1-12) 7 850.00 14 Breakeven price P1.48/kg 15 Breakeven yield 11075kg 21 N 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 5 280.00 5 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 1 480.00 800.00 280.00 200.00 7 16 450.00 b 1 500.00 9 1 200.00 1 3 000.00 1 5 700.00 1 22 150.00 1 margin (1-12) 850.00 1 P 1 md=Man Days (Assuming a 10 hr duration) • How much to grow • The resources needed for production. Availability of reliable markets outlets within the vicinity of the farm/project will go a long way in ensuring its success as transport costs would be reduced considerably. Finance Access to finance is important in acquisition of farm equipment and inputs to effectively run a profitable vegetable project. It therefore requires that a potential funding source be identified when the project is being conceived. Basic farming skills and experience Vegetable production is a very labour intensive enterprise which requires both dedication and skill to effectively undertake it. Basic training in agronomic principles or experience in the same field is very crucial; some managerial skill is important and can enhance business competitiveness. In the absence of this, the applicant together with the workforce should be prepared to undertake training in horticulture production principles and farm business concepts.

MANAGEMENT/AGRONOMIC PRACTICE Maturity period Vegetables comprise different varieties and cultivars with a range of maturity indexes as reflected in table 4. It is therefore essential to determine the different maturity indexes of the crops to be planted in order to make a proper schedule of operations for all the enterprises. However Integrated Pest management (IPM) control system will be ideal to minimize dependence on use of pesticides, most of which are hazardous to humans, animals and the environment in general. 4 Carrot a) Revenue No Item Quantity Unit Price (P) Total Revenue(P) 1 Produce(30tonnes) 3000*10kg 12.00 36 000.00 Variable costs (VCs) a) Production Costs Item Quantity Unit cost Total Cost 2 Seed 6* 100g 200.00 1200.00 3 Fertilizer; 2:3:1 Amon Phosphate 10*50kg 2*50kg 200.00 210.00 2000.00 420.00 4 Pesticides (Various) 000.00 5 Ploughing 500.00 6 Labour: Seedling production Land preparation Irrigation Transplanting Weeding Pest control Top dressing 18md 38md 19md 26md 47md 14md 10md 20.00 20.00 20.00 20.00 20.00 20.00 20.00 360.00 760.00 380.00 520.00 940.00 280.00 200.00 7 Total production costs(2+3+4+5+6) 12 390.00 b) Marketing Costs 8 Harvesting 235 Mhrs 4.00 940.00 9 Empty bags 2000 bags 3.00 6000.00 10 Transport to market 2000 bags @ P 3.00/Bag 6000.00 11 Total marketing costs(8+9+10) 12 940.00 12 Total VC (7+11) 25 330.00 13 Gross margin (1-12) 10 670.00 14 Break even price P0.84/kg 15 Break even yield 21108kg 20 N 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 5 280.00 5 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 1 480.00 800.00 280.00 200.00 7 16 450.00 b 1 500.00 9 1 200.00 1 3 000.00 1 5 700.00 1 22 150.00 1 margin (1-12) 850.00 1 P 1 md=Man Days (Assuming a 10 hr duration) Table 1: Crop maturity and yield Crop Days to maturit y Yield(tons) Cabbage 105-135 50-75 Rape 120 50-75 Kale 120 50-75 Spinach 16-20 Tomato 135 60-75 Greenpepper 120 Onion 150 40-60 Carrots 120 20-30 root 30-50 leaves Butternuts 18-22 Potatoes 30 Green Mealies 150 25 Beetroot 90 25-35 Water melon 150 16 Common Pests and diseases in Botswana Vegetables are susceptible to any disorder or disturbance in their physiological development; they have varied pests and diseases which can attack a wide range of crops. The pest and diseases infestation is more prevalent in summer when the temperatures are high, with a significant reduction in occurrences in winter when the temperatures become unfavourable for their multiplication. The common pests and diseases are varied and 5 Onion a) Revenue No Item Quantity Unit Price (P) Total Revenue(P) 1 Produce(40tonnes) 4000*10kg P 10.00 40 000.00 Variable costs (VCs) a) Production Costs Item Quantity Unit cost Total Cost 2 Seed 3 kg 300.00 900.00 3 Fertilizer; 2:3:2 Amon Phosphate 500 kg 2:3:2 450 kg 200.00 200.00 2 000.00 1 800.00 4 Pesticides (Various) 200.00 5 Ploughing 500.00 6 Labour: Seedling production Land preparation Irrigation Transplanting Weeding Pest control Top dressing 23md 102md 22md 201md 105md 5md 11md 20.00 20.00 20.00 20.00 20.00 20.00 20.00 460.00 2 040.00 440.00 4 020.00 2 100.00 100.00 220.00 7 Total production costs(2+3+4+5+6) 14 780.00 b) Marketing Costs 8 Harvesting 80md 20.00 1 600.00 9 Empty bags 4000 1.00 4 000.00 10 Transport to market 4000 0.50/bag 2 000.00 11 Total marketing costs(8+9+10) 7 600.00 12 Total VC (7+11) 22 380.00 13 Gross margin (1-12) 17 620.00 14 Breakeven price P0.56/kg 15 Break even yield 22380 kg 19 N 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 5 280.00 5 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 1 480.00 800.00 280.00 200.00 7 16 450.00 b 1 500.00 9 1 200.00 1 3 000.00 1 5 700.00 1 22 150.00 1 margin (1-12) 850.00 1 P 1 md=Man Days (Assuming a 10 hr duration) their infestation intensity is season specific. Table 1 provides a list of the common types. Table 2: Common pest and diseases of vegetables in Botswana Crop Pests Control Diseases Control Cabbage Kale Rape Cauliflower Broccoli Diamond Back Moth, Cabbage Aphid, Bagrada bug, American bollworm, Cutworm Curator, Carbofuran, Diclovors, Dimethoate Chlorpyrifos Cypermethrin, Black rot, Downy mildew Cypermethrin, Copper Oxychloride Mervinphos Tomato Green-pepper Red Spider mite, American Ballworm, Nematodes Copper oxychloride, Nemacur, Cypermethrin, Dicofol Bacterial spot, Blossom end rot Canker, Fusarium wilt, Curly due to virus Cypermethrin and Deltamethrin Onion Thrips, Aphids Endosulfan, Deltamethrin, Trichlorofon Fusarium rot, Purple blotch Mancoze Spinach Beetroots Nematodes, Caterpillars Nemacur, Alphemethrin, Mevinphos, Malathion 50%, Chloroprifos Leaf spot Captan dust Butternut Red spider mite, Aphids Rootknot nematodes Metasystox, Dimethoate 40EC Omite Fusarium wilt, Anthracnose, Mosaic, Powdery and Downy mildews MZ72WP, Copperoxychloride Carrots Nematodes, Aphid, Mole rats Nemacur, Dimenton-smethyl, Alumminium phosphate, Mancozeb/Dithane M45 Bacterial soft rot, Leaf blight Crop rotation, use of certified seed Potato Fruit fly, Aphids, Dimenton-s-methyl, Dimethoate Black scurf, Leaf Roll Virus, Soft Rot Fusarium Dry Rot, Early & Late Blights Benodanil, Mancozeb, Chlorthalonil Fruit fly Greenmealies Stalk Borer, Aphids, American Ball Worm Dipterex, Curator, Endosulfan Maize Streak Virus, Early planting, rotation Cucumber Watermelon Red spider mite, Aphids Rootknot nematodes Metasystox, Dimethoate 40EC Omite Fusarium wilt, Anthracnose, Mosaic, Powdery and Downy mildews MZ72WP, Copperoxychloride 6 Spinach a) Revenue No Item Quantity Unit Price (P) Total Revenue(P) 1 Produce (10Tonnes) 20 000*500g 2.00 40 000.00 Variable costs (VCs) a) Production Costs No Item Quantity Unit cost Total Cost 2 Seed 1*5kg 130.00 650.00 3 Fertilizer; 2:3:1 LAN 500kg 5*50kg 180.00 260.00 1800.00 1300.00 4 Pesticides (Various) 80.00 280.00 5 Ploughing 500.00 6 Labour: Seedling production Land preparation Irrigation Transplanting Weeding Pest control Top dressing 3md 101md 29md 47md 114md 33md 12md 20.00 20.00 20.00 20.00 20.00 20.00 20.00 60.00 2 020.00 580.00 940.00 2 280.00 660.00 240.00 7 Total production costs(1+2+3+4+5) 11 310.00 b) Marketing Costs 8 Harvesting 300000 bundles 1 500.00 9 Plastic Bags 1 200.00 10 Transport to market P0.10/bundle 3 000.00 11 Total marketing costs(7+8+9) 5 700.00 12 Total VC (6+10) 17 010.00 13 Gross margin(1-12) 22 990.00 14 Breakeven price P1.70/kg 15 Breakeven yield 4252.5 kg 18 N 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 5 280.00 5 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 1 480.00 800.00 280.00 200.00 7 16 450.00 b 1 500.00 9 1 200.00 1 3 000.00 1 5 700.00 1 22 150.00 1 margin (1-12) 850.00 1 P 1 md=Man Days (Assuming a 10 hr duration) Record management All farm operations should be documented to facilitate trekking of enterprise performance. Such an undertaking will ultimately assist in decision making for whole farm. The following records should be adequately kept: • Total area planted • Total variables bought • Total variables used • Yield • Diseases and causes MARKETING ISSUES Most vegetables are perishable in nature and have a short shelf life. To prolong their usefulness, adherence to all production principles will ensure freshness at harvest and even storage periods. When picked, it is essential that proper grading and sorting be done to ensure product value. Harvesting should be done when the crop has reached physiological maturity to ensure that it does not shrivel in storage due to excessive moisture loss. The common outlets include, fresh produce markets, wholesalers, retailers hotels, institutions (schools, hospitals, government offices), hawkers and individuals. The materials used for packaging should also be appropriate and should conform to the prescribed specifications e.g. tomatoes, green pepper and brinjal be packaged in boxes, potatoes in brown bags, cabbages, onions and butternuts in perforated bags. 7 Tomato a) Revenue No Item Quantity Unit Price (P) Total Revenue(P) 1 Produce (30 Tonnes) 4200*7kg 12.00 50 400.00 Variable costs (VCs) a) Production Costs Item Quantity Unit cost Total Cost 2 Seed 160g 2000.00 3200.00 3 Fertilizer; 2:3:1 Potassium Phosphate 10*50kg 3*50kg 180.00 260.00 2000.00 780.00 4 Pesticides (Various) 1200.00 5 Ploughing 500.00 6 Labour: Seedling production Land preparation Irrigation Staking Transplanting Weeding Pest control Top dressing 45md 64md 22md 60md 26md 72md 15md 4md 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 360.00 760.00 380.00 1 200.00 520.00 940.00 280.00 200.00 7 Total production costs(2+3+4+5+6) 12 320.00 b) Marketing Costs 8 Labour: Harvesting 235 Man hrs 4.00 940.00 9 Empty boxes 3000 boxes 3.00 6000.00 10 Transport to market 2000 bags @ P 3.00/Bag 6000.00 11 Total marketing costs(8+9+10) 12 940.00 11 Total VC (7+11) 25 260.00 Gross margin(1-12) 25 140.00 12 Breakeven price P0.84/kg 13 Breakeven yield 14771.93 kg 17 N 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 5 280.00 5 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 1 480.00 800.00 280.00 200.00 7 16 450.00 b 1 500.00 9 1 200.00 1 3 000.00 1 5 700.00 1 22 150.00 1 margin (1-12) 850.00 1 P 1 md=Man Days (Assuming a 10 hr duration) FIXED ASSETS Key fixed assets required in horticulture are listed in table 3 below. Table 3: Fixed Costs for establishing a I ha vegetable plot No. Item Quantity 1. Land 1 hectare 2. Permanent Water Source 1 Borehole 3. Irrigation Equipment Set 4. Reservoir 20 000 liters 5. Fencing Set 6. Store room/office 1 7. Net Shade 2 rolls 8. Protective Clothing 4 pairs 9. Garden Tools Assorted 10. Permanent Labour 4 Machinery Ideally no heavy machinery is required for a hectare of vegetables; the few that is used for land preparation could be hired out, these common ones include: tractor, planter, harrow and rotovator. Unless the proprietor already has a vehicle, the project is located away from good roads and reliable transport source, a vehicle is not advisable as this will increase the capital outlay. Fencing Materials Fence with small animal proof material (Diamond Mesh or Veldspan wire) can be used to keep out small animals. The choice of fence will depend on the location of the project. Most materials in 8 Annex 3: Crop Budgets for 1 hectare (HA) Cabbage a) Revenue No Item Quantity Unit Price (P) Total Revenue(P) 1 Produce(40tonnes) 2000*20kg 20.00 40 000.00 Variable costs (VCs) a) Production Costs Item Quantity Unit cost Total Cost 2 Seed 3* 100g 1200.00 3600.00 3 Fertilizer; 2:3:1 LAN 10*50kg 5*50kg 180.00 210.00 1800.00 1050.00 4 Pesticides (Various) 2000.00 5 Ploughing 500.00 6 Labour: Seedling production Land preparation Irrigation Transplanting Weeding Pest control Top dressing 18md 38md 19md 26md 47md 14md 10md 20.00 20.00 20.00 20.00 20.00 20.00 20.00 360.00 760.00 380.00 520.00 940.00 280.00 200.00 7 Total production costs(2+3+4+5+6) 12 390.00 b) Marketing Costs 8 Harvesting 235 Man hrs 4.00 940.00 9 Empty bags 2000 bags 3.00 6000.00 10 Transport to market 2000 bags @ P 3.00/Bag 6000.00 11 Total marketing costs(8+9+10) 12 940.00 12 Total VC (7+11) 25 330.00 13 Gross margin (1-12) 14 670.00 14 Breakeven price P0.63/kg 15 Breakeven yield 25 330 kg 16 N 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 5 280.00 5 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 1 480.00 800.00 280.00 200.00 7 16 450.00 b 1 500.00 9 1 200.00 1 3 000.00 1 5 700.00 1 22 150.00 1 margin (1-12) 850.00 1 P 1 md=Man Days (Assuming a 10 hr duration) Table 4 below may be purchased from hardwares and other equipment from suppliers. Also see annex 1. Table 4: List of fencing materials for 1 hectare No Item Type Number 1 Fence Wire Diamond Mesh or 14 rolls @ 30m Veld span 5 rolls @ 100m 2 Wire Steel 1 Roll @1650m 3 Wire (Anchor) 8 Gauge 1 roll 4 Binding Wire Soft 1 Roll 5 Gate Double (3.6 * 1.2m) 1 6 Poles Standards 85 7 Poles Corner 6 8 Poles Droppers 470 9 Wire Strainer Wire Strainer 1 10 Labour 60 mandays 40 Buildings Vegetable under open cultivation on a hectare does not require sophisticated buildings except for a, net-shade, store-room, packaging shed. 9 Annex 2: Garden Tools and Protective Clothing Category Item Qty Unit Cost (BWP) Total Cost (BWP) Garden Tools 1 Wheel barrow 2 350.00 700.00 2 Spade 2 100.00 400.00 3 Digging fork 3 80.00 240.00 4 Garden rake 3 80.00 240.00 5 Watering can 2 120.00 240.00 6 Weeding hoe 3 70.00 210.00 7 Hand trowel 3 10.00 30.00 8 Hand fork 3 10.00 30.00 9 Tensiometer 2 Not available locally 10 Hose pipe 1 300.00 300.00 Totals 2 340.00 Protective Clothing 1 Gum-boots 4 105.00 420.00 2 Hand gloves 4 30.00 120.00 3 Goggles 4 20.00 80.00 4 Overall (2 piece) 4 150.00 600.00 5 Dustcoats 4 120.00 480.00 6 Rain-coats 4 100.00 400.00 7 Safety boots 4 100.00 400.00 Facemasks (boxes) 2 50.00 100.00 Respirators 4 50.00 200.00 Totals 2 800.00 15 N 3 600.00 3 Fertilizer; 2:3:2 Amon Sulphate 5 280.00 5 500.00 6 Land preparation Irrigation Thinning Weeding Pest control Top dressing 1 480.00 800.00 280.00 200.00 7 16 450.00 b 1 500.00 9 1 200.00 1 3 000.00 1 5 700.00 1 22 150.00 1 margin (1-12) 850.00 1 P 1 md=Man Days (Assuming a 10 hr duration) Equipment and tools Protective clothing It is advisable that people working under such conditions be provided with protective clothes for safety purposes. Garden tools These are basic tools for general agronomic operations and are listed under annexure 2. INFRASTRUCTURE (Electricity, roads, market, telephones) Vegetables by nature are very perishable and they require reaching the market through the most reliable and prompting methods. The basic requirements of good roads to transport the commodity, a reliable market for quick disposal, good telephone to contact clients are essential for a successful project. Electricity is also very important because it can be used for both water pumping, for use in cooling facilities and farm amenities like lighting. Variable Inputs Variable inputs needed in vegetable production are pesticides, seeds, herbicides, fertilizers, protective clothing and packaging materials. Other variable inputs are found under financial projection. Some of the variable inputs in Table 5 below can be sourced from stores specializing in selling agricultural products. 10 ANNEXTURES Annex 1: Fencing materials No Item Type Number *Unit Cost (BWP) Total Cost (BWP) 1 Fence Wire Diamond Mesh 14 rolls @ 30m 600.00 8400.00 Veld span 5 rolls @ 100m 900.00 4500.00 2 Wire Steel 1 Roll @1650m 850.00 850.00 3 Wire (Anchor) 8 Gauge 1 roll 750.00 750.00 4 Binding Wire Soft 1 Roll 650.00 650.00 5 Gate Double (3.6 * 1.2m) 1 1500.00 1500.00 6 Poles Standards 85 20.00 1700.00 7 Poles Corner 6 40.00 240.00 8 Poles Droppers 470 10.00 4700.00 9 Wire Strainer Wire Strainer 1 300.00 300.00 10 Labour 60 mandays 40 100.00 4 000.00 Totals 27590.00 14 Table 5: Input requirement, Maturity Index yield estimates Crop Seed Fertilizers s NP K LA N Ammonium Phosphate Potassium Phosphate Cabbage 300g 500 250 - - Rape 500g 500 250 - - Kale 300g 500 250 - - Spinach 14kg 500 250 - - Tomato 200g 500 - - 150 Greenpepper 500g 500 - - 150 Onion 3kg 500 Carrots 6kg 500 - 150 - Butternuts 2- 3kg 500 - 150 - Potatoes 600k g 500 - 350 - Green Mealies 25kg 300 - - 150 Beetroot 14kg 500 - 450 Water melon 2- 3kg 300 - - 100 Fertilizers: The nutrient status of the soil must be analyzed before fertilizer is added so as to determine the right quantities to be applied, this is essential for optimal yield. Generally Botswana soils are said to be deficient of phosphorus, application of fertilizers largely with phosphorus sources are recommended incase of non analysis. Horticultural crops have different fertilizer requirements. 11 The average total revenue for the enterprises is BWP 37 200 against average production expenditure of BWP 32 388.00. The gross margin (Average Total Revenue – Average Variable Costs) estimated per hectare for the enterprises is positive at BWP 17 226.00 and profit after subtracting fixed costs is projected at BWP 17 226 .00 – BWP 12 390.00 = BWP 4 866.00 NB: It should be noted that the crop budgets provided below are guides only. Therefore, users should alter them to meet their needs, for movements in crop and input prices, changes in seasonal conditions and the farm characteristics. 13 Organic Manure: Organic manure adds nutrients and also improves the structure of the soil. Organic manure includes crop residues left in the field after harvest, organic wastes such as farmyard manure, slurry, sewage sludge and compost. Seeds: Vegetable seeds comprise both open pollinated and hybrids, for commercial use, hybrids are best as they are quick maturing, high yielding and tolerant to most pests and diseases. Seeds are available in a range of quantities and varieties. CAPITAL REQUIRED Establishing and running a project requires finance from owners and/or various financial institutions and government programs. This guideline had assumed acquisition of a loan from Citizen Entrepreneurial Development Agency (CEDA) at 7.5% interest rate payable over 7 years. The principal amount covers the entire project establishment and running costs for 1 hectare for a period not exceeding 12 months. The initial capital outlay can be up to BWP 40 000 per enterprise. The guideline assumes the availability of land as owner’s contribution. The key assumptions of production could vary from project to project due to location, size, production level, costs, loan and prices. The financial analysis of the project is based on an average of 1 hectare and would break even at average yield of approximately 28 tonnes. See annex 3 for individual crop budgets. These calculations were based on Variable Costs and may not necessarily reflect the real actual situation. Breakeven points were not calculated based on Total Fixed Costs as Fixed Costs were lumped up for all the 7 enterprises making it difficult to differentiate and separate the costs according to individual enterprises and overhead costs have not been captured. 12