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A Cost-Benefit Analysis Of Local Production Of Ready To Use Theraupetic Foods In Uganda


  • Glenn P. Jenkins

    () (Department of Economics, Queen's University, Canada, Eastern Mediterranean University, Mersin 10, Turkey)

  • Mikhail Miklyaev

    () (Cambridge Resources International Inc.)


The prevalence of malnutrition, vitamin-A deficiency, and anemia is high in Uganda. Of children under 5 years of age, 33 percent are stunted and 5 percent wasted. The rate of anemia among women and children is as high as 50 percent. The aim of this study is to identify if a 5 year off-take contract would result a sufficient incentive for the private sector to establish a factory for Ready to Use Therapeutic Food (RUTF) production. The base-line analysis revealed that the financial incentive for the investment would exist if the off-take price is at the RUTF’s world price level. The proper structure of the deal would also result on significant benefits arising to more than 4,000 HIV/AIDs infected farmers supplying pea nuts to the factory. The government of Uganda would also benefit by US$1.54 mill over the 10-year life of the project

Suggested Citation

  • Glenn P. Jenkins & Mikhail Miklyaev, 2013. "A Cost-Benefit Analysis Of Local Production Of Ready To Use Theraupetic Foods In Uganda," Development Discussion Papers 2012-05, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:243

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    References listed on IDEAS

    1. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 10 (Economic Prices for Tradable Goods and Services)," Development Discussion Papers 2011-10, JDI Executive Programs.
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    More about this item


    cost-benefit analysis; investment appraisal; stakeholder analysis; RUTF; Uganda; project finance; malnutrition;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods


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