Assessing the profitability of underutilized crops in KwaZulu-Natal, South Africa: using cost-benefit analysis

Neglected and underutilized crops (NUCs) offer an untapped opportunity to diversify smallholder food production systems in South Africa, yet their profitability remains underexplored. This study assessed the profitability of seven NUCs among 319 smallholder farmers in KwaZulu-Natal Province, South Africa, using a cost-benefit analysis framework. Data were analyzed using farm partial budget analysis, sensitivity analysis, and ordinary least squares regression. A 10% discount rate was applied over a 10-year horizon, with constant yields from year 4 onward and prices and costs adjusted annually at a 4.5% inflation rate. Profitability indicators included net present value (NPV), internal rate of return (IRR), and benefit–cost ratio (BCR). NUCs adopters achieved higher net profit (ZAR 11,200/ha; approximately USD 600) and BCR (2.25) than non-adopters (ZAR 2,700/ha; approx. USD 145), with an IRR of 38.2%. Over the 10-year horizon, adopters achieved an NPV of R76,543 (approx. USD 4,100) compared to R18,445 (approx. USD 990) for non-adopters. Among individual crops, pumpkin achieved the highest BCR (5.12), followed by groundnut (4.25) and cowpeas (3.93). Sensitivity analysis confirmed profitability remained robust under adverse scenarios, with BCR never falling below 1.7. Regression analysis showed that credit access ( p  < 0.01), education ( p  < 0.05), extension access ( p  < 0.05), and gender ( p  < 0.05) were positively associated with profitability, while market distance ( p  < 0.05) was negatively associated. Women constituted 69% of adopters and earned higher profits than their male counterparts. The study concludes that NUCs are profitable for smallholder farmers. Improving access to credit, extension services, gender-responsive programmes, and local markets can substantially enhance profitability.