FINANCIAL FEASIBILITY OF PRODUCING A URINE-BASED FERTILISER FOR VEGETABLE FARMING IN ACCRA, GHANA

The continual cropping of vegetable lands in the city of Accra necessitates the application of fertiliser in order to improve and sustain production. This paper addresses the question as to whether it is feasible to up-scale and use sanitised human urine as an alternative low-cost fertiliser for vegetable farming in Accra. The study used survey data conducted by IWMI on some urinals located in the Central Business District of the Accra Metropolitan Assembly (AMA) and on a demonstration project of the use of urine to fertilize cabbage together with data obtained by conducting a questionnaire survey of 300 vegetable farmers. The results of the study showed that it is capital intensive to establish the urine collection and reuse system in the city of Accra considering the logistics needed. The cost-benefit analysis (including a sensitivity analysis) showed that the investment can be financially feasible for a profit-oriented entrepreneur and AMA only if the discount rate is 20% and lower with a urine user fee of GH¢ 0.10 per visit and sale of urine to farmers at GH¢0.30 per jerry-can (20 litres) as it gave NPVs, BCRs and IRRs (GH¢ 8,147.79, 1.03 and 22.65%) and (GH¢ 104901.34, 1.49 and 51.45%) with payback periods of 5.44years and 2.91 years respectively. The Partial Budgeting Analysis showed that in one cropping cycle a cabbage farmer in Accra of farm size 0.02 ha with a planting distance of 0.45m × 0.60m would make a savings of GH¢24.59 when he pays for and uses sanitized urine as an alternative to chemical fertiliser (say NPK). Since it is financially feasible to establish and operate a human urine collection and reuse system in the Accra Metropolitan Area, the metro assembly should partner financing institutions such as the Agricultural Development Bank and start with a pilot project, in that way confidence will be instilled in the private business sector to participate later.