KENYA · GUIDE 0024 · EDITION 4.2
Passion fruit growing - Pricing, break-even and cash flow
Price an accepted unit, not an activity title
Start with this sale unit: accepted kilogram.
Choose a passion fruit sales channel before grading, separating fruit purchased for visible fresh presentation from fruit assessed mainly for usable pulp by a juice maker.
A quotation needs the accepted quantity or scope, exclusions, completion point, delivery arrangement and payment schedule. Without that specification, two apparently similar prices may pay for different work.
Build the direct-cost sheet
- seedlings
- trellis
- replacement plants
Include trellis upkeep, collection of fallen fruit and sorting by market channel, with realised prices for each grade instead of a single premium assumption across production.
| Calculation | How to use it |
|---|---|
| Variable cost per accepted unit | Direct inputs, labour, delivery and measured losses divided by accepted units. |
| Contribution per unit | Agreed selling price minus variable cost per unit. |
| Period operating surplus | Contribution from units sold minus fixed overhead for the same period. |
| Break-even units | Fixed overhead divided by positive contribution, rounded up. |
Count rejected output, unsold stock and correction time. Keep fixed overhead in a consistent period; a daily contribution cannot be compared directly with a monthly overhead figure. If contribution is zero or negative, extra sales do not establish a workable break-even point.
Reconcile the cash separately
A customer's unpaid balance cannot pay today's supplier bill. List actual collections, advance payments, supplier deadlines, refunds and recurring bills by date. Separate refundable deposits and money held for an uncompleted commitment from funds freely available for expansion.
A variety that attracts fresh-fruit buyers may not match a processor's expectations, so one buyer's positive sample feedback cannot establish demand across both target channels.
Test a weaker outcome
Recalculate with fewer accepted units, a delayed customer collection or a higher input quotation. Change one assumption at a time to see which constraint matters. Use the actual pilot record: Keep sample photographs, cut-fruit observations, buyer channel and paid grade weights together, allowing future harvest decisions to follow the commercial specification actually accepted in practice.
Do not interpret the invented financial teaching exercise in the complete manuscript as a market price or predicted income. Replace its assumptions before using it for a real decision. The public planning tool can help with arithmetic; it does not validate the inputs.