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Assessing the profitability of underutilized crops in KwaZulu-Natal; South Africa: using cost-benefit analysis
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DOI：10.3389/fsufs.2026.1745284.png)
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Abstract
En 中文
Neglected and underutilized crops (NUCs) offer an untapped opportunity to diversify smallholder food production systems in South Africa; yet their profitability remains underexplored. This study assessed the profitability of seven NUCs among 319 smallholder farmers in KwaZulu-Natal Province; South Africa; using a cost-benefit analysis framework. Data were analyzed using farm partial budget analysis; sensitivity analysis; and ordinary least squares regression. A 10% discount rate was applied over a 10-year horizon; with constant yields from year 4 onward and prices and costs adjusted annually at a 4.5% inflation rate. Profitability indicators included net present value (NPV); internal rate of return (IRR); and benefit–cost ratio (BCR). NUCs adopters achieved higher net profit (ZAR 11; 200/ha; approximately USD 600) and BCR (2.25) than non-adopters (ZAR 2; 700/ha; approx. USD 145); with an IRR of 38.2%. Over the 10-year horizon; adopters achieved an NPV of R76; 543 (approx. USD 4; 100) compared to R18; 445 (approx. USD 990) for non-adopters. Among individual crops; pumpkin achieved the highest BCR (5.12); followed by groundnut (4.25) and cowpeas (3.93). Sensitivity analysis confirmed profitability remained robust under adverse scenarios; with BCR never falling below 1.7. Regression analysis showed that credit access (p < 0.01); education (p < 0.05); extension access (p < 0.05); and gender (p < 0.05) were positively associated with profitability; while market distance (p < 0.05) was negatively associated. Women constituted 69% of adopters and earned higher profits than their male counterparts. The study concludes that NUCs are profitable for smallholder farmers. Improving access to credit; extension services; gender-responsive programmes; and local markets can substantially enhance profitability.
Keywords:
food security
smallholder farmers
profitability
cost-benefit analysis
economic feasibility
investment appraisal
neglected and underutilized crops
South Africa KwaZulu-Natal
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