Economic viability of Jatropha curcas L. plantations in Northern Tanzania

The oil -containing seeds of Jatropha curcas L., a shrub prevalent in many African countries, were recently rediscovered as a possible feedstock for biodiesel production. This study examines the economic viability of jatropha seed production in three northern regio ns of Tanzania where a jatropha -based bioenergy value chain is about to emerge. Interviews with several farmers growing jatropha in the regions were conducted to create primary data on costs and benefits. Along with data from literature and assumptions made , a cost -benefit analysis reveals future prospects of jatropha cultivation . The net present value of a five-year investment was found to be negative (USD -65 ha-1) when yielding 2000 kg of seeds per hectare and only slightly positive (USD 9 ha -1) when yielding 3000 kg ha-1 . On rather fertile soils jatropha is not able to compete with alternative sunflower cultivation . For the specific case of Northern Tanzania , the authors therefore advise not to sacrifice scarce fertile land to a rather risky investment because of insecure prospects. On the contrary, jatropha hedges, that are low in opportunity costs, are a proven additional source of income and seem more appropriate under current conditions.

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