Profitability analysis of value added usipa (engraulicypris sardella) by packaging In Nkhotakota, Malawi

Abstract

The study was conducted to determine the profitability of value addition of Engraulicypris sardella through packaging in Nkhotakota district, central Malawi. Samples(69Kg) of fresh E. sardella purchased and sundried in solar tent dryer, packaged (34.5Kg) in plastics papers while the other 34.5Kg was unpackaged. Sales data were analyzed using gross margin and net profit analysis. Benefit-cost ratio and rate of return on investment were used to determine the viability of small scale E. sardella fish business. Results of Cost and Return Analysis packaged E. sardella showed that the total revenue of packaged E. sardella was Mk225,400.00 and total cost was Mk 40,350.00 while results for unpackaged E. sardella showed that the total revenue was Mk104,144.92 and total cost was Mk20,450.00. Results on Benefit cost ratio for packaged and unpackaged E. sardella were 5.09 and 5.58 respectively. The findings implies that packaged E. sardella was more profitable than unpackaged E. sardella. The rate of return for packaged and unpackaged Engraulicypris sardella was 4.58 and 4.09 respectively, implying that for every Mk1.00 invested for Packaged Engraulicypris sardella there was a return of Mk4.58 and Mk4.09 for unpackaged Engraulicypris sardella. Packaging should be encouraged to maximize profits from small scale fish business in Malaw