An analysis of the profitability and factors driving farmers’ decisions to produce bioethanol from cassava in Northern Uganda

The study examined profitability of producing bioethanol from cassava among smallholder farmers in northern Uganda. Although small scale production of bioethanol was found to be profitable, selling cassava dry chips was found to be more profitable. In addition, selling fresh cassava roots was also more profitable than small scale production of bioethanol. However, bioethanol producers who grow cassava and process bioethanol get more returns on investment compared to those who buy cassava chips and process bioethanol. Sensitivity analysis results revealed that 40% decrease or increase in price of dry chips and firewood contributed remarkable change on profitability of bioethanol. The study concludes that farmers should be supported to produce quality dry cassava. However, to promote bioethanol production (small and large scale), there is need to increase cassava production by increasing acreage and cultivating improved high yielding varieties. This should be coupled with expansion of market opportunities and reduction in cost of energy required for bioethanol production.