Comparative Productivity and Profitability of Four Groundnut Varieties with Phosphate Fertiliser in Mbale District, Uganda

Groundnut (Arachis Hypogaea, L.) is important for food, nutrition and income generation. However, productivity in Uganda is low, partly due to low soil fertility, yet fertiliser use is limited amidst uncertain market conditions. This study assessed the profitability of phosphate fertiliser use on four varieties: red beauty, serenut 2, serenut 3 and serenut 4, in Mbale district, Uganda. The objective was to develop optimum P fertiliser rates for different groundnut varieties under prevailing market conditions. Phosphorus was applied as single superphosphate at 0, 4.37, 8.73, 13.10, 17.46 and 34.96 kg P ha-1. Over two seasons (2009-2010), response to P was highest for red beauty followed by serenut 3 then serenut 4, and none for serenut 2. Agronomic response was observed up to 13.1 kg P ha-1; however, highest gross margin (US $ 47 ha-1) was observed at 4.37 kg P ha-1. Phosphate rates higher than 8.73 kg P ha-1 although agronomically beneficial, were not profitable under the prevailing market conditions. Breakeven prices indicated that profitability would be assured with red beauty and serenut 3 varieties if their prices rose by 10% for all P rates. Profitability with serenut 2 and serenut 4 varieties could be assured if their prices rose by 20% for P rates between 4.37 and 13.1 P ha-1 only. The study recommends a need for government and other value chain actors to put in place mechanisms that make fertilisers more accessible and affordable for smallholder for enhanced profitability.