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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

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Paper provided by JDI Executive Programs in its series Development Discussion Papers with number 2012-05.

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Length: 17 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:qed:dpaper:243
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  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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