Abstract:
This study analyses the performance of small-scale-tobacco producers under
contract farming system and farmer characteristics that influences tobacco
production in Songea district. The Specific objectives were: (i) To examine the cost
and return of tobacco small-scale farmers under contract farming scheme in the
study area; (ii) To assess the influence of contract farming characteristics on tobacco
production; (iii) To examine the resource use efficiency in contract farming; (iv) To
estimate yield and price uncertainties in production and marketing by the small-scale
tobacco contracts farmers. A multi-stage random sampling technique was employed
in selecting a representative sample of tobacco farmers where by 65 (DFC), 27
(Burley), and 20 (VFC) tobacco contract farmers were interviewed. Results revealed
that through practicing contract farming respondents reduced cost of production
(7%), improved quality of their harvest (31%) and increased income (37%). The
study shows there is no significant difference in production cost, yields and returns
for Burley, DFC and VFC tobacco farmers (P>0.05). Also shows that factors of
production, experience, education and contract price had a significant influence on
farmers tobacco production (P>0.05), further more tobacco farmers were
significantly employing their resource efficiently under contract farming (P<0.05).
Although there were enough evidences to conclude that tobacco farmers
experienced uncertainties during production and marketing of their tobacco
(P>0.05). The study recommends establishing a comprehensive-open contract
farming arrangements and improving managerial skills to cooperatives leaders with
enhancement of farmer’s knowledge about contractual practices so as to enrich
small scale farmer’s welfares in Tanzani
