Economic profitability and development strategies for ornamental plant production sector in Benin

Abstract

The ornamental horticulture sector in Benin plays a crucial role in wealth creation and job generation but remains underdeveloped and under-researched. The main problem is the lack of reliable data on the profitability of ornamental plant production units, hindering the development of effective strategies for the sector's growth. The double objective of the study was to evaluate the economic profitability of the ornamental plant production units and to propose strategic avenues for enhancing their growth. The methodology included a survey conducted among 136 producers across various municipalities in Benin, using the snowball technique and KoboCollect application for data collection. Collected data covered production costs, revenues, and producers' perception of profitability. Results showed varying financial profitability based on production site location. The average annual production cost ranged from 171,544.641 ± 219,925.488 FCFA in ordinary-status municipalities to 9,043,291.304 ± 852,799.197 FCFA in special-status municipalities. Net margins range from 100,699.058 FCFA to 689,483.635 FCFA, with profitability between 46.64 % and 75.15 % depending on the region. In perspective, strategies are proposed to improve productivity and competitiveness, such as better access to funding and technical support, to promote sustainable sector growth.