Economic potential of small-scale citronella (Cymbopogon winterianus) production in the Philippines
Issue Date
12-2015
Abstract
The economic potential of establishing smallholder citronella grass (Cymbopogon winterianus) plantation for essential oil production was assessed. Data were gathered through key informant interviews, field visits and observations of citronella plantation and processing activities of the University of the Philippines Laguna-Quezon Land Grant (UP-LQLG). The various activities involved in essential oil production include: site preparation (e.g. brushing and clearing, cultivation of soil, holing, planting, and fertilizing); maintenance and protection; harvesting and hauling; and processing of citronella grass. BY estimate, 96 L haˉ¹ was produced per harvest which has a gross revenue of PhP115,200.00. With three harvests during the first year, the gross revenue was PhP 345,600.00. Considering all sosts, the total net revenue of oil production during the first year of harvest was PhP135,562.20. Results also showed that pursuing such enterprise could be economically viable since its Net Present Value (NPV) in 10 years can reach as much as PhP2.891 M at 12% discount rate. This can be translated to PhP240.917 NPV haˉ¹. The projected internal rate of return for the same period is around 91%, a fairly attractive return on investment. The overall employment generation potential of the venture is also fairly attractive with an average of 936 MD haˉ¹ yrˉ¹. One problem encountered that hindered the profitability of citronella production is that the UP-LQLG was not able to acquire an efficient extractor with which efficiency of oil extraction depends.
Source or Periodical Title
Philippine Journal of Crop Science
ISSN
0115-463x
Volume
40
Issue
3
Page
73-81
Document Type
Article
Frequency
tri-quarterly
Physical Description
tables, maps, pictures
Language
English
Recommended Citation
Camacho, Sofronio C.; Carandang, Antonio P.; Camacho, Leni D.; Gevaña, Dixon T.; Carandang, Myrna G.; Lorida, Reynaldo E.; and Bandian, Ma. Nimfa P., "Economic potential of small-scale citronella (Cymbopogon winterianus) production in the Philippines" (2015). Journal Article. 4925.
https://www.ukdr.uplb.edu.ph/journal-articles/4925
