Profitability of gliricidia-maize system in selected dryland areas of Dodoma region, Tanzania
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Date
2021-12
Journal Title
Journal ISSN
Volume Title
Publisher
MDPI
Abstract
Declining soil fertility and climatic extremes are among major problems for agricultural
production in most dryland agro-ecologies of sub-Saharan Africa. In response, the agroforestry tech-
nology intercropping of Gliricidia (Gliricidia sepium (Jacq.)) and Maize (Zea mays L.) was developed to
complement conventional soil fertility management technologies. However, diversified information
on the profitability of Gliricidia-Maize intercropping system in dryland areas is scanty. Using data
from the Gliricidia and maize models of the Next Generation version of the Agriculture Production
Systems sIMulator (APSIM), this study estimates the profitability of the Gliricidia-Maize system
relative to an unfertilized sole maize system. Results show significant heterogeneity in profitability
indicators both in absolute and relative economic terms. Aggregated over a 20-year cycle, Gliricidia-
Maize intercropping exhibited a higher Net Present Value (NPV = Tsh 19,238,798.43) and Benefit
Cost Ratio (BCR = 4.27) than the unfertilized sole maize system. The NPV and BCR of the latter
were Tsh 10,934,669.90 and 3.59, respectively. Moreover, the returns to labour per person day in
the Gliricidia-Maize system was 1.5 times those of the unfertilized sole maize system. Sensitivity
analysis revealed that the profitability of the Gliricidia-Maize system is more negatively affected
by the decrease in output prices than the increase in input prices. A 30% decrease in the former
leads to a decrease in NPV and BCR by 38% and 30%, respectively. Despite the higher initial costs
of the agroforestry establishment, the 30% increase in input prices affects more disproportionally
unfertilized sole maize than the Gliricidia-Maize system in absolute economic terms, i.e., 11.1% versus
8.8% decrease in NPV. In relative economic terms, an equal magnitude of change in input prices exerts
the same effect on the unfertilized sole maize and the Gliricidia-maize systems. This result implies
that the monetary benefits accrued after the first year of agroforestry establishment offset the initial
investment costs. The Gliricidia-Maize intercropping technology therefore is profitable with time,
and it can contribute to increased household income and food security. Helping farmers to overcome
initial investment costs and manage agroforestry technologies well to generate additional benefits is
critical for the successful scaling of the Gliricidia-Maize intercropping technology in dryland areas of
Dodoma, Tanzania.
Description
Keywords
APSIM, Gliricidia-Maize system, soil fertility, profitability, dryland areas