Agricultural Economics and Agribusiness Collection
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Item A parking systems analysis of factors that affect area and induction of cotton: A case study in Shinyanga regeon, Tanzania(1980) Kajumulo, D .A .RThis study describes factors that affect area and production of cotton as part of the overall farming system for smallholders in Shinyanga Region, Tanzania .It involve a description of the characteristics of the existing farming systems and assessment of the production efficiency of the cotton producer.Based on farmer’s resources, priorities and production decision, plans to improve cotton production are studied simultaneously with the other crops in the systems and xdesi 'able improvements as suggested./Primary data were collected from 50 randomly-selected farmers in the area for the 1976/77 and 1577/78 crop seasons. Direct programme planning was used to determine optimum resource allocation.Relations between specified variables were tested by means of Chi-square and correlation analyses.Two major types of farming systems were identified, namely (1) Larger farms with livestock which wore characterized by having more land in crops, slightly bigger families, use of ox-ploughs for land preparation, and much higher per capita income (Sh 710). These farms produced about twice the food they actually required for subsistence, and sold the surplus for cash, but had serious labour problems.(2) Smaller farms without livestock, characterized by less land in crops and use of hand hoes for land preparation.They produced 14 percent less protein and 4 percent less calories than required for subsistence based on PAO norms and had a very low per capita income (Sh 170).They made up over half of the farms.Eased on these two types of farms, the study has developed alternative feasible farming systems typical to the area which satisfy family food needs throughout the year and increase family incomes based on a more reasonable work schedule for each type and utilizing family labour only.They arc developed on the following assumptions! (1) Yields per ha of the common food items equal to 80 percent of those believed to be normal for the area so that the determined area for subsistence meets full family food needs in most years. (2) Family labour remaining after meeting subsistence requirements is used as required for optimum cash-crop combinations, (j) Net family incomes are calculated based on 1977/78 crop-year prices and 80 percent of yields as found for EIDHP.The crop which gives the highest net cash return per limiting-month man-day is considered since family labour in peak months is the limiting factor to increased production.For smaller farms without livestock, a cash crop combination of 0.8 ha of sorghum/groundnuts and 0.8 ha of late-planted cotton is suggested.This would give these farms a total net family income of Sh 1,590 or a per capita income of Sh 240, which is about one-third higher than present incomes.However, by hiring ox-ploughing services for lend preparation while school holidays for children staying at home were made to coincide with the critical work peak of weeding,farmers could improve their farming system by growing 1.9 ha of □orghuE/groundnuts and 0.8 ha of late-planted cotton.This system would triple their net family income to Sh 3,120 or a per capita income of Sh 470.For larger farms with livestock, the optimum cash crop combination includes 3.1 ha of sorghum/groundnuts intercrop, 0.8 ha of late-planted cotton, and 0.6 ha of paddy, from which these farms likely would realize a total net family income of Sh 5,630 or a per capita income of Sh 790.This is about 10 percent higher than present,excluding returns from livestock. It is concluded therefore that if the aim is to increase farmer’s income, the crop which gives the highest net cash return per limiting-month man-day after meeting subsistence requirements,namely sorghum/groundnuts intercrop, should be encouraged.From the Government point of view, (a) school holiday schedules for children staying at home should be made to coincide with the critical work peak of weeding, and (b) an increase by 35 percent over prices used in the systems analyses for cotton, while keeping those of other crops and inputs unchanged, would make cotton more profitable and increase the cash benefit/cost ratio to 3:1 to warrant the risk and costs of using fertilizers and insecticides.If producer prices of other crops and inputs increase simultaneously with -those of cotton, farmers will always be tempted to grow the most profitable crop relative to cotton. Research on cotton improvement should be considered not only for specified cotton operations but in relation to all crops of thesystems, given the resources on typical individual farm units.Item A parking systems analysis of factors that affect area and induction of cotton: A case study in Shinyanga regeon, Tanzania(Sokoine University of Agriculture, 1980) Kajumulo, D .A .RThis study describes factors that affect area and production of cotton as part of the overall farming system for smallholders in Shinyanga Region, Tanzania.It involves as description of the characteristics of the existing farming systems and assessment of the production efficiency of the cotton producer. Based on farmer’s resources, priorities and production decision, plans to improve cotton production are studied simultaneously with the other crops in the systems and desirable improvements are suggested./ Primary data were collected from 50 randomly-selected farmers in the area for the 1976/77 and 1577/78 crop seasons.Direct programme planning was used to determine optimum resource allocation.Relations between specified variables were tested by means of Chi-square and correlation analyses. Two major types of farming systems were identified, namely (1) Larger farms with livestock which wore characterized by having more land in crops, slightly bigger families, use of ox-ploughs for land preparation, and much higher per capita income (Sh 710).These farms produced about twice the food they actually required for subsistence, and sold the surplus for cash, but had serious labour problems.(2) Smaller farms without livestock, characterized by less land in crops and use of hand hoes for land preparation.They produced 14 percent less protein and 4 percent less calories than required for subsistence based on PAO norms and had a very low per capita income (Sh 170).They made up over half of the farms. Based on these two types of farms, the study has developed feasible farming systems typical to the area which satisfy family food needs throughout the year and increase family incomes based on a more reasonable work schedule for each type and utilizing family labour only.They arc developed on the following assumptions!(1)Yields per ha of the common food items equal to 80 percent of those believed to be normal for the area so that the determined area for subsistence meets full family food needs in most years.(2) Family labour remaining after meeting subsistence requirements is used as required for optimum cash-crop combinations, (j) Net family incomes are calculated based on 1977/78 crop-year prices and 80 percent of yields as found for EIDHP. The crop which gives the highest net cash return per limiting-month man-day is considered since family labour in peak months is the limiting factor to increased production. For smaller farms without livestock, a cash crop combination of 0.8 ha of sorghum/groundnuts and 0.8 ha of late-planted cotton is suggested. This would give these farms a total net family income of Sh 1,590 or a per capita income of Sh 240, which is about one-third higher than present incomes. However, by hiring ox-ploughing services for lend preparation while school holidays for children staying at home were made to coincide with the critical work peak of weeding, fanners could improve their farming system by growing 1.9 ha of sorghum/groundnuts and 0.8 ha of late-planted cotton.This system would triple their net family income to Sh 3,120 or a per capita income of Sh 470. For larger farms with livestock, the optimum cash crop combination includes 3.1 ha of sorghum/groundnuts intercrop, 0.8 ha of late- planted cotton, and 0.6 ha of paddy, from which these farms likely would realize a total net family income of Sh 5,630 or a per capita income of Sh 790. This is about 10 percent higher than present, excluding returns from livestock. It is concluded therefore that if the aim is to increase farmer’s income, the crop which gives the highest net cash return per limiting month man-day after meeting subsistence requirements, namely sorghum/groundnuts intercrop, should be encouraged. From the Government point of view, (a) school holiday schedules for children staying at home should be made to coincide with the critical work peak of weeding, and (b) an increase by 35 percent over prices used in the systems analyses for cotton, while keeping those of other crops and inputs unchanged, would make cotton more profitable and increase the cash benefit/cost ratio to 3:1 to warrant the risk and costs of using fertilizers and insecticides. If producer prices of other crops and inputs increase simultaneously with -those of cotton, farmers will always be tempted to grow the most profitable crop relative to cotton. Research on cotton improvement should be considered not only for specified cotton operations but in relation to all crops of the systems, given the resources on typical individual farm units.Item An evaluation of the role played by coffee marketing Institutions to coffee smallholders in Kilimanjaro region, 1970-1984(Sokoine University of Agriculture, 1990) Shuma Geoffrey PetroChanging socio-political and economic circumstances and technological innovations necessitate institutional and conceptual adjustments to new conditions. Such changes which have occurred in Tanzania since Independence in 1961 have changed the country's crop marketing system. The purpose of this study has been to find out and narrate the causes, effects and salient features of the institutional changes of the Tanzania's crop marketing system in the period between 1970 and 1984. Coffee marketing institutions in Ki 1imanj aro Region are used as a case study. In this study two hypotheses were set and tested. First it was hypothesized that coffee marketing system under the Tanganyika Coffee Board (TCB)/ Kilimanjaro Native Cooperative Union (KNCU) was more efficient than under the Coffee Authority of Tanzania (CAT). To test this hypothesis secondary time series data on producer's price as percentage of f . o . b price, un i t marketing margin, unit marketing costs, potential final payment, unit administrative expenses, unit administrative expenses as percentage of unit marketing costs, current ratio and quantity of coffee sold were collected. Regression Analysis of these secondary data has shown that unit administrative and marketing costs were significantly lower during KNCU time than period. These factors enabled KNCU to * significantly higher producer's price as f.o.b price than could CAT. From these observations the during CAT pay farmers percentage of : (iii) hypothesis that coffee marketing system under TCB/KNCU was more efficient than under CAT cannot be rejected and it is cone1uded that TCB/KNCU was significantly more efficient than CAT when marketing farmers coffee. Secondly5 it was hypothesized that TCB/KNCU and affiliated cooperative societies were more concerned with the development of coffee farmers than the CAT. To test this hypothesis primary data on attitudes of farmers towards the crop marketing organization were collected by means of a questionnaire administered to fifty (50) randomly selected farmers. t and Chi-square tests were used to test the hypothesis. The corresponding parametric and non—parametric statistical inference proved that KNCU was significantly more efficient in providing managerial services when purchasing farmers coffee. The services included inspection, grading, weighing of crops and paying farmers. CAT was, however, significantly more efficient in the provision of inputs and extension services to farmers. Consequently it is recommended that in Tanzania agricultural crops shou1d be marketed by agricultural marketing cooperatives and marketing boards. The cooperative should be owned and controlled by the members on a democratic basis. The effectiveness of marketing boards can be improved by increasing the participation of farmers, processors, merchants and consumers in their decision making process.Item A socio economic analysts of modern irrigation projects under small -scale farming: a case study of the lower MCSPI Irrigation Project in Kilimanjaro Region(Sokoine University of Agriculture, 1993) Orota Germana Chanuo LaurentThis study analyses the socio-economic aspects of the Lower Moshi Irrigation Project in Kilimanjaro Region, Tanzania. Financial and economic analyses are performed to determine if th® investment is a justifiable us® of the scarce resources available in Tanzania for investment. Survey results show that the project is doing well th average yields per ba of 6.5 tons for paddy and 2.5 tons for maize. A benefit-cost ratio of 2.5, net present worth of shs 614 million and internal rate of return of over 50 percent is obtained from the financial analysis •.•.’hen. costs and benefits are discounted at 18 percent. Results from economic analysis show a benefit-cost ratio of 2.3, a net present worth of shs 1028 million, and an internal rate of return of 49.25 percent when a 12 percent discount factor is used. Both the financial and economic analyses therefore, judge the project very profitable to the farmer and the economy as a whole. This study also attempts to evaluate the impact of the project on employment, cropping patterns, yield levels of principal, crops, farm income and land values. It is revealed that, the provision of irrigation facility has increased labour employment in the study area. Impacts of the project on cropping patterns, yield levels, farm income and land values show positive results when compared to the same in the non-project area. This study also .looks into the problems that hinder •project dev:-’.oniunnt arid -expansion. These .include problems of drought; high unit rater requirements: illegal use of water outside the project area and institutional problems such as those of farmers’ ignorance of the farming operations under modern irrigation. The following are the recommendations: 1. There is a need to improve the knowledge about modern irrigation practices at the farmer’s level. 2. .Water User Groups should be separated from other political and administrative bodies in the project area : 3. There is a need to look for alternative •.-.•ays of increasing water supply in project area during drought years and also solve the water shortage problem. A example is that of using boreholes to increase water supply. At present there are boreholes for this purpose in the project area. only few boreholes for this purpose in the project area.Item Economics of on-farm maize storage in Tanzania: The case of Kilosa District(University of Nairobi Kenya, 1993) Ashimogo Gasper CleophasThis study describes the technological and economic aspects of traditional and improved farm level storage of maize in Kilosa district of rural Tanzania. A brief review of the maize industry in the country is provided. Storage patterns in two survey villages using two different kinds of traditional storage structures are examined followed by a temporal price analysis of the parallel market. An economic and financial appraisal of farm storage improvements is presented. Primary data from the survey villages and secondary data from the Ministry of Agr iculture and Livestock Development are the bas is for the analysis. The study reveals that farmers store grain mainly for home consumption with the surplus used for sale, seed and other socioeconomic obligations. The temporal pr ice analysis shows that parallel market price increases over time resulting from grain supply flactuations are in excess of storage costs. This provides an opportunity for storers to make profits. It is further noted that farmers are aware of rodent and insect pest losses incured in their traditional granaries. Proposed farm level storage improvements aimed at reducing these losses were found to be profitable in terms of parallel market prices. Benefit-cost ratios (BCR) ranging between 1:1 and 4:1 and internal rates of return (IRR) well above the cut-off rate of 18 percent were estimated. To ensure a stable food supply and restrained prices it is recommended that official prices should be made to vary over time to reflect storage costs. The costeffective improvements proposed in this text may further contribute to the realization of these objectives. To be more effective it is suggested in this study that future on-farm storage improvement programs prefer the multidisciplinary systems approach over the specialists symptomatic approach.Item The effects of state intervention in public parastatals: the case of Tanzania dairy farming company limited Tanzania(Sokoine University of Agriculture, 1994) Ng'ui, Urughu EmmanuelThe study aimed at analyzing the effects of state intervention on the performance of public parastatals in Tanzania with special reference to the Tanzania Dairy Farming Company Limited (DAFCO). The specific objectives of the study were to: (a) Describe the milk production trends, marketing and pricing arrangements; (b) Analyze the effects of government intervention policy on the performance of marketing and pricing of milk; (c) Determine alternative Marketing and pricing arrangements of milk and other dairy products (heifers and bulls) from DAFCO farms; (d) Develop a dairy subsector policy in marketing and pricing; Both primary and secondary data were collected and analyzed by employing both qualitative and quantitative methods. The results on trends of milk production in DAFCO farms, revealed two phases of production i.e. an increasing phase between 1976 and 1982 and decreasing one between 1982 and 1991. Milk production increased from 1 220.2 thousand litres in 1976 to 4 570 thousand litres in 1982 and decreased to 2 371 thousand litres in 1991. The study showed that production performance of DAFCO has deteriorated greatly compared to the original design and objectives, (milk production decreased from highest of 4 571 to 2 371 thousand litres (-48%) , milk yield per cow per day decreased from highest of 7.7 to 6.8 litres (-12%), total herd decreased from highest of 5 592 to 3 633 heads (-35%) and milking cows decreased from highest of 1 686 to 930 heads (-45%). It was also found that the company has been making financial losses in all fiscal years except for 1977 when it reported a net profit of Tshs 23.8 million. The study also revealed that through Government intervention policy DAFCO was directed to sell all its milk to TDL as its sole marketing channel and milk prices were determined and fixed by the government, this policy was found to be detrimental to DAFCO. Results of regression analysis model indicated that price of milk is negatively related to quantity of milk produced which is contrary to economic theory. This indicated how firms which are protected through state intervention are not sensitive to market signals. Other variables i.e. price of feed, the minimum wage rate and trend variable were found to have the right relationship to quantity of milk produced as implied by economic theory i.e. increase in feed price will result into decreased milk production, increase in wage rate will lead to increased milk output and that for trend variable, improvement in dairy technology will result into increased milk production. All these variables were found to be significant at 0.05 significance level in determining milk production in DAFCO. farms with the explanatory power of 87.6% which shows that they are all important factors to be considered for decisions involving milk production. Policy recommendations include: (a) DAFCO to be given sole autonomy in decision making on its own policies, objectives and strategies and planning process; (b) The company should take the open market as the only marketing channel for its products. The prices of milk and other dairy products should also be determined by open market forces of supply and demand; (c) DAFCO should seek for funds from internal and external as well as from its own sources. It should also look for both internal and external joint ventures; (d) Husbandry aspects i.e. disease control and feeding procedures should be improved to reduce cattle's high mortality rates; (e) Technological improvement is required to increase production; (f) Managerial skills should be improved through recruitment of qualified and experienced staff and offering further training; (g) All farms need to be well equipped with adequate farm machinery and equipments for their developmentItem Production and marketing of paddy and cotton in Ulanga district of Tanzania(Sokoine University of Agriculture, 1998) Gabagambi, Damian MulokoziAgriculture market reforms have been underway in Tanzania since mid 1980s. The ultimate objective of such policy change was to improve agricultural marketing efficiency in the economy. The extent to which this goal has been achieved in various parts of the country needs to be analysed. This study therefore attempts to assess the agricultural marketing problems in Ulanga district, Morogoro, Tanzania. The main objective of the study was to assess the marketing efficiency of paddy and cotton systems in the study area with a view to identifying areas of weaknesses which need improvements. A sample of 85 paddy and/or cotton producers and 40 paddy traders were interviewed using structured questionnaires. The production season was confined to 1994/95 production season. The tools of analysis used include descriptive statistics, correlation and regression. The results of the analysis revealed that (i) farm gross margin and returns to inputs for both crops were very low; (ii) in terms of market concentration ratio, and pricing efficiency there was some improvements in the paddy marketing system due to competition among traders; (iii) operational and pricing efficiency indicated that there is still a lot more to be done to improve the situation. For both crops, production and marketing costs in some operations were found to be unnecessarily high because of poor infrastructure and lack of competition on the part of cotton sector; and (iv) paddy producers were being discouraged by price instability.From the above results it is recommended that (i) paddy productivity be increased using appropriate technology to enable producers benefit from low average production cost; (ii) crop buying posts be established in each-village where exchange could take place. Apart from reducing collection cost to traders the buying posts would increase market transparency thereby motivating market participants which could result into improved marketing efficiency; (iii) the problem of small working capital for traders could be solved by carefully planned and monitored revolving fund scheme. This could start by identifying honest traders in the area; (iv) to minimise price fluctuations in the paddy marketing systems forward contracts and futures trading could be encouraged. For cotton marketing it is recommended that (i) cotton productivity should be increased so that private buyers could be motivated to invest in the cotton sector in Ulanga District; (ii) the present ginneries should be privatised so that cotton buyers in the area could have access to them at a ginning fee; (iii) the long bureaucratic procedure before obtaining licences to handle cotton should be minimised. This could be achieved by leaving this task with the Tanzania Cotton Lint and Seed Board TCLSB); (iv) road communication system in the study area if improved could facilitate production and marketing of agricultural products in the study area.Item Economic analysis of cash crop production and marketing' in Tanzania under a liberalised market economy: A case study of tobacco in Songea district.(Sokoine University of Agriculture, 2001) Rweyemamu Dennis ChristianThis study analyses the efficiency of production, degree of distortion in the markets and the pattern of incentives for smallholder tobacco growers in Songea district under liberalization. A survey was conducted on a sample of 120 tobacco growers in the district, and secondary data collected from key organizations in the industry. Because patterns of resource utilization change with shifts in prices of products and inputs whereby producers tend to allocate more resources to enterprises giving higher returns per unit of resource, gross margin analysis was conducted for the two competing crop enterprises in the area, tobacco and maize, so as to establish the relative economic profitability of the crops. Since tobacco is a tradable crop using tradable inputs, a policy analysis matrix for its production system was constructed so as to determine the private and social profitability of the crop, distortions in the markets and efficiency of resource use. Since PAM is a static model, sensitivity analysis was also conducted so as to explore the effect of potential changes in various factors that influence profitability of the enterprise. The analysis revealed that although tobacco production is potentially a profitable enterprise relative to the international market, smallholders are not protected and are paid less than the potential value of their product. The overall effect is a net taxation of tobacco production system at the form level. Thus, the existing marketing arrangements under liberalization have made the enterprise appear uncompetitive with low resource allocation efficiency. There is therefore a net disincentive to produce the crop. Gross margin analysis indicated that tobacco was more profitable compared to maize but considering labour requirements, the former is a highly labour demanding crop with low returns to labour. Sensitivity analysis indicated that an increase in producer prices for tobacco would result into a sharp increase in producer incentives iii and smallholders will be more protected with profits realized in excess of normal returns to domestic resources increasing. With a decrease in the parity price of the product, indicators depict that production of the crop becomes undesirable from the social point of view. However, efficiency indicators were insensitive to an increase in parity prices of tradable inputs implying that tobacco production will still be a desirable enterprise from the social point of view. The study concludes that although liberalization opened up markets by formally allowing private leaf dealers to invest in marketing of tobacco, operational arrangements have not provided adequate incentives to growers in terms of pre-harvest services and marketing efficiency in general. Many problems have been noted which indicated gross inefficiency in the entire production and marketing system. These problems alter costs and revenues in the input/output markets and prevent realization of potential income gains by tobacco growers.Item Evaluation of on-farm cassava processing and its implication on marketing and farmer’s income: a case of Coast region(Sokoine University of Agriculture, 2007) Mashimba, SemistatusOn-farm processing for agricultural produces is becoming more important in the economies of most developing countries like Tanzania. This study aimed at evaluating the potential of on-farm processing in increasing farmers’ income in developing economies using cassava in Coast Region as a case. Specifically the study determines economic viability of on-farm cassava processing technology. Primary data were collected through a cross section survey of 100 farmers using a structured questionnaire. Descriptive analyses were used to describe the respondents’ characteristics. Gross Margin Analysis was conducted to estimate relative profitability of two different processing technologies in a view of ascertaining their appropriateness and effectiveness. The results show that, flour processing is a more profitable technology than chips processing. Regression analysis was used to investigate the relationship between processing technology and marketability of cassava products, results showed that processing has negative relation with marketability of cassava products implying that those farmers who process have a low possibility of accessing market. Independent sample t-test was employed to compare income generated by farmers from the main processing technologies and those who sell raw cassava, however the results showed that raw cassava in Coast Region has a significant impact on increasing farmer’s income than on-farm processing of chips and flour. The study also found that there are several problems that hinder prosperity of on-farm processing, these include lack of reliable markets, few processing facilities and poor packing facilities. This case study clearly suggests that on-farm flour processing is more important in generating household income than chips production. The study recommends that the government should educate the use of processed cassava and expand flour production in areas growing cassava by investing in providing processing services to farmers together with finding the way of increasing processed cassava price as one way of improving farmer’s income and reduce poverty.Item The honey value chain analysis: case study: snv central portfolio (Morogoro & Dodoma regions)(Sokoine University of Agriculture, 2007) Kasongo M. RThis study examines honey value chain in SNV Central portfolio areas covered Morogoro and Dodoma regions. It draws from the experience of the Beekeepers from the districts of Morogoro rural, Mvomero and Kondoa. The study specifically examines the key production, market constraints and opportunities within the value chain. It analyzes the existing market linkages and identifies the participants within the chain. The study also explores factors influencing the development of honey sub sector in the area. A detailed account is made of the existing stakeholders involved in production, processing and marketing of bee products in the study area. The honey value chain was veiy weak particularly in producer level and experiences many problems such as fragmentation, weak link among the stakeholders, low quantities, poor quality and other external factors like tariffs. Existing marketing channel is direct from the producers (beekeepers) to the consumers for food, for brewing local beer and medicinal purposes. There are no organized markets for collection and/or selling. More than 90% of honey produced is consumed locally. The study winds up by assessing potential interventions that could be used to improve the honey value chain within the area, such as to build capacity to organisations dealing with honey production, assist natural resources department in the process of establishing beekeeping associations and facilitating linkage between producers, inputs and credits providers and other organisations.Item Economic analysis of outgrowers’ sugarcane production scheme at Ruembe Sugarcane Basin in Kilosa District, Morogoro(Sokoine University of Agriculture, 2008) Chongela JoelThe 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.Item Assessment of tobacco marketing system at farmers level, a case of Tanzania leaf tobacco company of Morogoro, Tanzania(Sokoine University of Agriculture, 2008) Kemilembe J. KTobacco is one of the major agricultural export crops in Tanzania. Tobacco farming industry is a contract farming business involving fanners in primary cooperative societies located in eight production regions namely Tabora, Shinyanga, Mbeya, Singida, Rukwa, Iringa, Songea and Kagera. A large proportion of tobacco grown in Tanzania (85%) is exported to overseas markets. The main tobacco customers demand tobacco leaves of high quality. The tobacco buying companies through Association of Tanzania Tobacco Traders (ATTT) are committed in ensuring that the tobacco purchased is of high quality to make sure that customers choose their produce over those of their competitors. In spite of the company’s effort towards improving the quality of tobacco produced, the problem of poor tobacco quality still exists. Although studies on tobacco marketing had been carried out, information regarding tobacco quality at farmers’ level is still insufficient. Generally the study intended to create a better understanding of the factors influencing the strategies for the improvement of quality of tobacco sold to Primary Cooperative Societies. Specifically, this study examined the impact of tobacco quality to farmers and the buying companies identify factors that lead into marketing of low quality tobacco at farmers level, identify and analyze cost and revenue of tobacco to growers and suggest alternative solutions that would reduce the problem of low quality tobacco at farmers’ level. The data were collected, from seven Primary cooperative Societies, officers from all tobacco stakeholders and company’s officials in Tabora region. Part of the analysis was based on descriptive statistics to describe the responses, characteristics and trends of some data and information regarding the current marketing system of tobacco at farmers’ level. Gross Margin Analysis was used in order to examine the effect of quality and price on farmers’ income. The results of the study indicate that poor post harvest handling methods severely affect the quality of tobacco. The problem of quality has been a cause of higher cost of handling for the buyer companies and has also resulted into lower prices paid to farmers. The study recommended that, the company and other tobacco stakeholders should provide adequate and quality extension services on good agronomic practices, construction of improved barns and tobacco storage which will eventually improve tobacco quality at farmers’ level.Item Value chain analysis for cassava in the eastern zone of Tanzania(Sokoine University of Agriculture, 2008) Njau, Pudensiana HipolityA study was conducted in the Eastern zone of Tanzania to evaluate the existing value chain for cassava using the Profit Margin and Sustainable Livelihood Approaches. Data were collected using a structured questionnaire and Participatory' Rural Appraisal (PRA). The results of analysis showed that cassava was marketed mainly as a fresh root, dry roots/chips and cassava flours. The analysis of livelihood assets revealed that PANTIL project farmers had more favourable livelihood portfolios than their counterpart non-PANTIL project farmers. The former owned significantly larger land holdings than the latter farmers (P < 0.05), averaging at 2.4 versus 1.7 ha. respectively. When human capital was evaluated using the proxy of average years of schooling for family members aged 25 to 64 years, the results showed statistically significant higher portfolios of human capital for PANTIL project farmers than non- PANTIL project farmers (P < 0.05). The difference in human capital measured in terms of Adult Labour Equivalent was not significant (P < 0.05). The PANTIL farmers had also adopted more cassava processing technologies than the non- PANTIL farmers (P < 0.05). The former farmers obtained higher net margins than the latter (a mean difference of Tshs 129 919 which was significant at P < 0.05). The study recommended that the government should help facilitating the introduction and adoption of appropriate technologies that can reduce labour bottlenecks and enhance cassava production, processing, marketing and utilization. The opportunity for processing enterprises must be identified based on the existence of viable market opportunities and the financial aspects of technology acquisition (affordability) and operation should be taken into account.Item The impact of fairtrade standard on smallholder coffee farmers and their organisations in selected areas in Tanzania .(Sokoine University of Agriculture, 2008) Shayo Hellen MungubarikiFairtrade has become an alternative approach to convectional trade practices over the past decade. In Tanzania, Fairtrade organisations started doing transactions with Tanzanian coffee producers since early 1990s. Participation in Fairtrade initiatives has brought range of benefits and constraints to the producers and their respective communities. There have been several structural changes since 1999 when the last Fairtrade impact study was done in Tanzanian coffee industry. Up to 2008, Fairtrade standard is yet to be recognized by Tanzania Coffee Board in auction system, though direct export regulations allow the fine washed Fairtrade Arabica coffee of top grades. There is no significant statistical difference in coffee yield and net coffee income (P<0.05) among sampled FT fanners compared to non FT farmers. Harvesting of old coffee trees and high management and operation costs facing FT farmers are among the reasons for insignificant difference in coffee yield and net income. FT premium at KNCU is retained for investment in crop quality and infrastructure improvements or community projects, while at AKSCG it is distributed to the farmers groups for infrastructure construction and/or improvement. FT farmers organisations are guaranteed coffee market, accessibility of imperative market information and organizational capacity building training by Fairtrade organizations (ATOs). Inability to sell all FT coffee stock through FT channel, low level of awareness on FT market, networks, premiums or price floors among FT producers were observed to be some of the constraints related to Fairtrade compliance. FLO should appraise its generic standard concerning value addition to raw coffee to provide smallholder farmers organisations with an opportunity to earn more. FT processors and millers can pursue TCB to recognize Fairtrade standard in auction iii system, this would be further step in creating FT market’ awareness among stakeholders in the coffee industry. FT farmers organisations should improve awareness on Fairtrade standard through educational training so that farmers can make informed decision concerning compliance.Item The impact of Free market economy on tobacco cooperative societies. A case study of Western zone tobacco growers cooperative union (WETCU) in Tabora region.(Sokoine University of Agriculture, 2008) Sanga Filberto Hassan.Cooperatives as grassroot organizations have engaged themselves in the provision of agro-marketing and of other social services. Cooperatives thus play a key role of promoting development, hand in hand with the government, in the rural as well as in the urban areas. Actually in that way, they have, in deed, been agents of socio economic change and for poverty alleviation. After market liberalization, coops fail to deliver and performed poorly under competition partly due to the withdraw of government guarantees. This report is the output of the research study which analyses the impact of free market economy on tobacco marketing cooperatives, in Tabora region as a case study. The study successfully covered 21 randomly selected primary cooperative societies (PCS) in three branches of Western Zone Tobacco Growers Cooperative Union (WETCU). All the PCSs were tobacco marketing cooperative societies. Secondary data were collected from published materials, handbooks, files, and other related documents from WETCU, TTB, association of tobacco companies (ATTT) and the district cooperative offices as well as Regional commissioner’s office. The general objective of this study was to evaluate the performance of cooperative union before and after free market economy. The research findings reveal that free market economy have both advantages and disadvantages to cooperatives. As for the issue of tobacco cooperative societies, there is an improvement on input supply and distribution, extension services, the market for the crop, payments to the farmers and financial stability for tobacco cooperative union (WETCU). However, the findings show that there are no improvements on input price, interest rates on input credit and tobacco marketing have continued to encounter problems. Tobacco Leaf Commercial company (TLCC), which is Ill considered to be an association formed out of collusion of Tanzania tobacco traders, lack of government intervention, poor pricing system, contract farming and low producer prices compared to cost of production are the eminent problems. In this study, the researcher found out that the government efforts, in the present stance towards the restructuring of coops along its promotional role seemed to have less enthusiasm, less seriousness, and less commitment towards the cooperative revival. The study, under the above circumstances, show that the market liberalization has both advantages and disadvantages to cooperatives, and to farmers. Recommendations, based on above findings, are emphasize on the government appropriate coops development and implementation policy. Also, the government should take into consideration the importance of creating a conducive environment under which cooperative societies will be able to operate and thrive under current free market and trade liberalization macro-economic policies. Alternatively, the tobacco farmers can opt for other agricultural crops such as maize, ground nuts, paddy, cotton or paprika which can do better than tobacco.Item Economic analysis of dairying in smallholder farming systems in peri- urban areas of Dar-Es-Salaam and Coast Regions, Tanzania(Sokoine University of Agriculture, 2009) Mwakipesile Elukaga SamsonThe main objective of this study was to evaluate the competitiveness of smallholder dairying and the resource use trade-offs that smallholder farmers need to make when introducing dairy production into their farming systems. The specific objectives were: (i) to compare profitability between smallholder dairy and crop enterprises in the mixed crop dairy farming system, (ii) to examine the competitiveness of smallholder dairying and resource use trade-offs in the face access to milk markets and declining land size and (iii) to determine optimum combination of crop and dairy enterprises and suggest ways of improving farm productivity through integration of dairying and the existing crop enterprises. Data for the study were collected using a structured questionnaire from a sample of 120 households selected randomly from lists of households in four crop-dairy keeping villages in Dar-Es-Salaam and Coast regions. The data were analysed using a combination of qualitative and quantitative analytical methods namely, Statistical Package for Social Scientists (SPSS), Farm Enterprise Budgeting and Linear Programming (LP). The results of the enterprise budgeting show that dairy enterprise is more profitable and provided higher returns to land and capital compared to paddy, maize and cassava enterprises where as paddy was found to have higher return to labour followed by cassava, maize and dairy respectively. The optimal combination of dairy and crop enterprises determined using LP indicate that smallholder farmers in the study area should allocate 1.20 ha of fodder, 0.29 ha of paddy and 2 dairy cows, realizing a net revenue of Tshs. 2 840 941.67 per household per year which is 49% higher than what is currently earned. In terms of crop enterprises, paddy realises higher net revenue followed by maize and cassava when all land is devoted to crops.Item Analysis of farmers’ adaptation to climatic change in Kilimanjaro region(Sokoine University of Agriculture, 2010) Ajuaye, AdelineThis study aimed at assessing farmers’ adaptation mechanisms to climate change in Kilimanjaro region. Specifically, attention was devoted to examine farmers’ awareness and perception towards climate change; adaptation measures used and their influence on crop yield as well as factors which influence adoption of those strategies. The data were collected through household surveys and focused group discussions. A questionnaire was administered to a sample of 175 farming households in twelve villages from Moshi Rural, Hai and Rombo Districts. Data were analyzed using descriptive statistics, Cobb-Douglas production function and linear regressions. Results confirm that farmers are quite aware of climate change and adaptation options. Seasonal drought, temperature change and outbreak of diseases in plant and animals were the most perceived consequences of climate change. The adaptation strategies used included change of farm management practices and adoption off-farm employment. Timing of farm operations, water harvesting, mulching, change of crop varieties, irrigation and agro-forestry were the major farm-copping strategies. These strategies were observed to have positive and significant influence on maize and banana yield. Also the study found out that household assets; household size; education level; extension services; owned land size and access to irrigation are the major factors which influence adoption of adaptation strategies. Moreover, lack of capital and information on climate change as well as reliable weather forecast information were indicated to be the core constraints in adaptation. The relevant policy recommendation from these results is that enhanced access to credit and information can significantly increase frames’ adaptation. Government policies should support research and development on appropriate technologies to help farmers adapt to changes in climatic conditions.Item Consumers’ reactions to involvement of large retailers in selling of fair trade coffee(Newcastle University, 2010) Nandonde, Felix AdamuThe Fairtrade Labelling International Organisation (FLO) reported recently global sales of Fair Trade (FT) products estimated to reach €1.3 billion in 2009. Certified FT coffee is the leading commodity and estimated to be 0.01 of the international coffee trade. The United Kingdom is among of the major market of the Fair Trade (FT) products with annual growth sales of 33 percent and sales estimated to reach £700 million in 2009, while coffee sales stand at £ 157 million and estimated to be 20 percent of the country coffee business. Recently worldwide expansion of FT with other factors was highly reported to be accelerated with the involvement of large retailers (LRs). Since 2002 when own label of FT products was introduced in the UK, grievances started and many authors criticised the FLO movement of commercialisation by giving LRs licence to use Fairtrade mark, which once were produced by alternatives trading organisations (ATOs). To reach mass market FT products needs LRs distribution channels which many retailers started to stocked FT products e.g The Coop stocked Cafedirect FT coffee since 1994. However, the challenge is on the use of own label and the willingness of the LRs to implement the Fairtrade guiding principles for the benefit of small producers in the South. The purpose of this research is to explore consumers’ reactions to the involvement of large retailers (LRs) in selling FT coffee. Two objectives addressed by the study related to coffee, first understanding factors influencing coffee purchase intention and consumers attitudes to involvement of LRs in selling FT coffee. And two analytical techniques used to analyse data collected in June, 2010 in the high street of Newcastle by face to face interviews. (1) Factor analysis conducted with sample of 219 coffee consumers to understanding factors influencing purchase decision, (2) Cluster analysis employed to identify customers’ reaction to LRs involvement in selling FT coffee. Factor analysis was employed to identify consumers’ attitudes towards coffee. The study indicates that credence processing attributes are the major factors that influence consumers in the intention of coffee purchasing in the UK. such as ‘ethical’, ‘production techniques and fair trade products’. However, credence process content attributes such as ‘quality’ and decaffeinated coffee are most significant in influencing consumers’ attitudes towards coffee. Second is on cluster analysis, two clusters identified, cluster one is the male ‘ethical consumers’ influenced by retailers image and social responsibilities activities. This group is Findings of the study need to be interpreted with cautions because, there are two major additional factors can change coffee purchase. in favour of LRs to use their own label. Cluster two is female ‘ethical and well being consumers, the group is not favouring LRs to have their own label for fair trade coffee. Interesting findings is that this group is not against the involvement of LRs to sell FT coffee limitations first js-the^ample size is a very limited number of the UK coffee consumers, second is the result based on the evaluation of hypothetical attributes of coffee and any additional factors can change coffee purchase.Item Structure and performance of the bean marketing system in tanzania: A case study of Kigoma region(Sokoine University of Agriculture., 2010) Silomba Luseshelo BarnabaThis study attempts to evaluate the structure and performance of the bean marketing system (BMS) in Tanzania with particular emphasis on Kigoma Urban, Kigoma Rural and Kasulu districts in Kigoma region. Specifically the study aims at: describing the present bean marketing channels (BMC) and the structure of trader networks; evaluating the efficiency of the BMS; and examining the overall performance of the BMS. A simple random selection technique was employed for selecting farmer, trader and consumer samples. Ten farming households were randomly selected from eight villages (based in Kigoma Rural and Kasulu districts) making a sample size of 80 farmers. On the other hand, thirty and twenty traders were randomly selected from markets located in Kigoma Urban and Kasulu districts respectively. Also, thirty bean consuming households were randomly selected from Mwanga Kaskazini and Kasulu mjini wards in Kigoma Urban and Kasulu districts respectively. Descriptive and quantitative assessments were employed in this study based on objectives and hypotheses to be tested. For descriptive analysis, the use of means, percentages, ranges and other statistics were employed to describe the characteristics and trends of the bean marketing system. Quantitative analysis involved the use of Gross margin, Marketing Margin, market concentration index (CI) and correlation analyses. iii Results show that in the study area there are seven BMC for beans namely: (i) producer-consumer, (ii) producer-retailer (village/inter-village collectors)-consumer, (iii) producer-wholesaler (regional)-retailer-consumer, (iv) producer-wholesaler (regional)-wholesaler (regional)-retailer-consumer, (v) producer-wholesaler (regional)-wholesaler (regional)-consumer, (vi) producer-wholesaler (regional)- wholesaler (inter-regional)-retailer-consumer, and (vii) producer-wholesaler (regional)-wholesaler (inter-regional)-consumer. Also the study found that the BMS is competitive as there are many bean traders to prevent any monopolistic tendencies. This is indicated by weak levels of CL The CI for retailers were 38.8 and 46.8% for Kigoma Urban and Kasulu respectively. Results for the wholesalers indicated unconcentrated (CI 27.6%) and existence of weak monopolistic situation (CI 35.6%) for Kigoma Urban and Kasulu respectively. Apart from being competitive the BMS was found to be inefficient in terms of market transparency and barriers to entry (structure). Market transparency is obscured by lack of proper information transmission among the market participants. There are no uniform measurements, weights or standards such that direct price comparisons are very difficult. Lack of enough capital and high market fees were found to be major barriers to business expansion because they do not really prevent people from entering into the business as it is indicated by low CI. Furthermore, the study found that there is no form of collusion among traders in determining buying and selling iv prices. As a result each trader buys bean supplies at varied prices and marketing costs, a fact that has caused considerable variations in the retail prices. Generally, it can be concluded that the BMS is performing poorly as it is suggested by a low ratio of gross margin earned per Kg to the per unit cost which was approximately 1:9.4. Lack of transparency, high transport costs and market fees (structure) and lack of appreciable cooperation among traders (conduct) further aggravate poor performance. Based on the findings of this study the following are recommended for better performance of the BMS: (i) the road network in the region should be improved, (ii) traders should be encouraged to form groups, (iii) the measuring devices should be standardized and the quality of beans traded should be monitored closely, and (iv) market fees should be revisited to make them affordable to traders.Item Factors influencing small-scale fruit and vegetable producers’ access to high value markets: a case study of dar es salaam region(Sokoine University of Agriculture, 2010) Simon JamesThis study was conducted to investigate the factors influencing small- scale fruit and vegetable producers' access to high value markets. To do so, the study provides a micro level survey. The survey was conducted on fruit and vegetable farmers, traders and supermarket operators along three districts namely Kinondoni, Ilala and Temeke in Par es Salaam region. The Specific objectives were to (a) describe the current market structure for small-scale fruit and vegetable farmers (b) Assess various farmers' marketing chains for fruit and vegetable (c) To determine the potential of training to small scale fruit and vegetable farmers access to niche market (d) To examine the role of education level to small scale fruit and vegetable farmers access to niche market. The hypothesis to be tested states as follows (a) There is no significant different between various farmers’ chain for fruit and vegetable marketing chain (b) Training does not have influence on fruits and vegetables farmers’ access to niche markets (c) Education levels for fruit and vegetable farmers have no impact on niche market accessible. Results reveal that the trade was uncompetitive with a seller concentration ratio of 50.4% and 60.2% for tomatoes and mangoes respectively. Implying oligopolistic behaviors in the market. The intermediary traders linking producers and urban market traders to access to niche markets which implies uncompetitiveness of the market. The results reveal 58% of the land used for production is through renting. This can be one of the limitations for producers to access niche markets. Only 5% of the farmers sell processed products such as juices and used packages of low quality mainly plastic materials such as nylon packets. It shows that, 33.3% and 36.7% of tomato and mango traders respectively used colour and 25% and 21.67% of tomatoes and mangoes traders respectively used rottenness of the produce as the quality measures respectively. However, those methods alone would not guarantee safety ofthe products.
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