Profitability and determinants of protected vegetable farming in Nepal

Abstract

Protected vegetable farming has emerged as a potential approach to improve the yield and quality of produce around the globe. In Nepal, it has a short history since 1996, but over the past decade, investment in protected structures has been gaining momentum. This paper discusses the findings of the study in the area of profitability and the determinants of protected vegetable farming in Nepal. The study was conducted in seven districts of Nepal by selecting 90 respondents growing vegetables under protected structures. Descriptive statistics and multinomial logistic regression were used to analyze data. The financial analysis showed a significantly higher benefit–cost ratio and payback period in temporary structures than those in semi-permanent and permanent structures. The productivity of vegetables under different types of protected structures was statistically similar to average productivity of 191.55 mt./ha/year. The multinomial logistic regression studied among 15 explanatory variables found 10 explanatory variables to be significant whether at 1% or 5% or 10% probability level. The variables, namely, gender, education, family type, household members involved in agriculture, experience in vegetable farming and subsidies received, were found to have a significant and positive influence on the adoption of semi-permanent and permanent structures, whereas the variables, namely, age, membership in farmers group, record keeping and technician visit, were found to have a significant and negative influence. The findings of the study would have implications for the policymakers, suppliers of the structure installment materials and farmers regarding the promotion and adoption of different types of protected structures.

Keywords:

• protected structures
• hi-tech
• benefit–cost ratio
• adoption
• multinomial logit

Public Interest Statement

Protected vegetable farming has emerged as a potential approach to improve the yield and quality of produce around the globe. In Nepal, it has a short history since 1996, but over the past decade, investment in protected structures has been gaining momentum. Based on the installation materials and their durability, the protected structures prevailing in the Nepal can be categorized into three types, namely temporary, semi-permanent and permanent. High installation cost, limited knowledge in operation and weak research have rendered the permanent structures less profitable as compared to temporary structures. The findings of this study show that under existing condition of technical knowhow, investment in permanent structure was found to be economically discouraging. Thus, direct investments and subsidies toward temporary (low cost) structure along with capacity-building programs for farmers for profit maximization are recommended.

Disclosure statement

No potential conflict of interest was reported by the authors.

Data availability statement

The authors confirm that the data supporting the findings of the study are available from the corresponding author, upon reasonable request.

Correction

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Authors’ contributions

Sandip Subedi designed and executed research plan. Moreover, he collected and analyzed the data. Mr. Subedi and Mr. Narayan Prasad Tiwari both prepared this manuscript. All authors approved the manuscript.

Additional information

Notes on contributors

Sandip Subedi

Sandip Subedi has practical and field experience within the agriculture sector in Nepal. He is a Horticulture Development Officer in the National Center for Potato, Vegetable and Spice Crops Development under the Department of Agriculture, Ministry of Agriculture and Livestock Development, Nepal. Subedi holds a Master's Degree in Agricultural Economics from the Agriculture and Forestry University (AFU), Nepal, in 2018. His area of research interest includes agribusiness management, climate change, agricultural economics and value chain analysis.

Narayan Prasad Tiwari

Narayan Prasad Tiwari is an Assistant Professor at College of Natural Resource Management, Sindhuli, Department of Agricultural Economics and Agribusiness Management, Agriculture and Forestry University (AFU). He Obtained his master’s degree in Agricultural Economics from AFU and has worked as Monitoring, Evaluation and Research officer in Vijaya Development Resource Centre in Suaahara II (USAID funded nutrition project). His research interest covers production economics, agricultural marketing, and nutrition sensitive agriculture.

Surendra Subedi

Surendra Subedi is a Senior Plant Protection Officer at the Department of Agriculture, Ministry of Agriculture and Livestock Development, Nepal. He obtained his master’s degree in plant Pathology from the Agriculture and Forestry University, Nepal. His research interest covers novel technologies, management practices, and governance.