Financial Viability and Profitability Analysis of New Technologies and Enterprises under High Value Crops Development Program

The acceptability and adoption of new technologies or enterprises developed by researchers largely depends on its capital requirement, profitability, and market potential. Potential investors are more interested in getting information on the capital requirement of the new technology or proposed new enterprise, its profitability and market potential rather than in just knowing that the technology is yield-increasing. Profitability analysis is, therefore, needed before researchers and extension workers can give their final recommendations on new farm technologies or enterprises to farmers and other potential investors.

Unfortunately, most researchers lack training or expertise in conducting profitability/financial viability analysis of new technologies and enterprises. Research findings often focused on the yield advantages of the new technology. While some researchers attempted to compute the return on investment (ROI) of new technologies, the estimated ROI figures were questionable or erroneous due to the use of the wrong formula in calculating ROI.

This project aims to provide training to research personnel of various academic and research institutions the knowledge and skills of conducting financial viability and profitability analysis.

Specific objectives are as follows:

• Determine the financial viability and profitability of technologies developed under HVCDP;
• Equip research personnel (national and regional) of various academic and research institutions as well as DA-BAR personnel with knowledge and skills in conducting financial viability and profitability analysis of new technologies and enterprises; and
• Develop a manual on financial viability and profitability analysis.