Profitability of Organic Vegetable Production: The Case History of Toktokha Organic Farm, Toebesa Geog, Punakha Dzongkhag

Abstract

A study was conducted to assess the profitability of organic vegetable production by evaluating the economic performance of Toktokha Organic Farm, Toebesa Geog under Punakha Dzongkhag. The profitability of farm was assessed by preparing an income statement for 2012 which was then compared with the income statements of other organic farms, and non-organic farms from the same region. Information on markets for organic products was collected from Organic Sales Outlet in Centenary Farmers’ Market, Thimphu, by interviewing 30 randomly selected customers in the market. The results showed that the Toktokha Organic Farm was running at a loss in the year 2012, with a negative balance of Nu. 65,429.00, while other vegetable farms at household level were gaining with a mean profit of Nu. 9,440.50 and Nu. 10,052.10 for organic and nonorganic farms respectively from half langdo (about 30 decimal) of vegetabl gardens. An independent samples t–test showed that there was no significant difference (p > .05) between organic and non-organic farms in terms of profitability in vegetable production. Most of the Centenary Farmers’ Market customers were not
aware of the organic products sold in the Organic Sales Outlet or the Centenary Farmers’ Market.