Agricultural Economics and Agribusiness Collection

Permanent URI for this collectionhttp://10.10.97.169:4000/handle/123456789/1002

Browse

Browsing Agricultural Economics and Agribusiness Collection by Author "Chongela Joel"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Economic analysis of outgrowers’ sugarcane production scheme at Ruembe Sugarcane Basin in Kilosa District, Morogoro
    (Sokoine University of Agriculture, 2008) Chongela Joel
    The study was conducted al Ruembe Sugarcane Basin in Kilosa district in Morogoro region in 2007/08 to analyse economic factors influencing out growers sugarcane production scheme. A Cobb-Douglas production function was used to determine the technical relationship between sugarcane productivity and the inputs (land, labour, fertilizer, herbicide, credit and extension services). Ordinary Least Squares regression technique was used to perform the analysis. Coefficients of the inputs were estimated from the Cobb-Douglas production function. Gross margins of the sugarcane and paddy enterprises were calculated to determine profitability. The results indicate that fertilizer, labour and credit are statistically significant factors of production for sugarcane at P<0.05 where as land, herbicide and extension services are not statistically significant at P<0.05. The estimated coefficients for the input factors were 0.52878, 0.34376, 0.22464, 0.13025, 0.00160 and -0.01758 for fertilizer, labour, herbicide, credit, land and extension services, respectively. The positive coefficients indicate increased sugarcane productivity where as the negative coefficient for extension service means decreased productivity. The Gross margin analysis showed that sugarcane enterprise has higher returns of 561 498.48 Tshs/ha followed by paddy enterprise which has returns of 73 929.64 Tshs/ha. The mean annual contribution of Ruembe sugarcane out growers to the Kilombero II Sugar factory is 220.277 tonnes of cane/capita. The mean sugarcane price was 35 360.42 Tshs/tonne at mean sucrose content of 9.11%/tonne of rendement. The mean annual per capita sugar consumption of Ruembe outgrowers’ is 12 kg due to high sugar price which limits consumers to use more sugar. This implies that sugar consumption is still a constraint to consumers due to inflation of sugar price caused by inadequate of sugar supply in the market leading to importation of sugar from abroad which distort the domestic market price.