Economic Evaluation of Grain Amaranth Production in Kamuli District, Uganda

In Uganda, grain amaranth is relatively new and has generally not been considered as an important crop compared to other grain crops and legumes. This study was therefore conducted to determine factors affecting adoption of grain amaranth growing, factors affecting production, and economic returns on investment of its production. The study was carried out in Kamuli district where a total of 174 grain amaranth farmers and 90 non-grain amaranth farmers were randomly selected and interviewed. Using descriptive statistics, regression analysis (logit model and a Cobb-Douglas type production function) and profitability ratios, it was found that grain amaranth is produced on a small scale and yields are low. Farmer adoption of the crop was favoured by age, gender (female), education of the farmer, and source of income. The output was positively affected by the amount of labour and manure used in production, while a negative relationship existed between output and male farmers. The crop was most viable under small acreages (0.02-0.04 ha) with positive returns to investment of 0.016. Its production should therefore be encouraged because of its income generation potential and since it requires small land.