Theses and Dissertations Collection

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Analysis of the value chain for hides and skins in Tanzania: the case of Dodoma and Arusha regions
(Sokoine University of Agriculture, 2008) Kabuje F.L
The general objective of this study was to analyse the value chain for hides and skins in order to provide an understanding of the factors affecting development of the leather industry in Tanzania. The specific objectives of the study were (i) To characterize the value chain for hides and skins from production to consumption; (ii) To examine how the chain is organized, coordinated and functioning including linkages between the key actors along the value chain; (iii) To examine efficiency in performing different operations in the value chain in terms of prices and margins obtained by different actors, and (iv) To identify the major constraints and challenges facing actors and suggest strategies for improving both linkages and efficiency of the value chain. Primary data for the study were gathered in Dodoma and Arusha regions from 84 respondents including livestock keepers, butcher and abattoir owners, hides and skins collectors, wholesalers, leather factories and manufacturer of leather goods. These data were supplemented with secondary data from the Ministry of Livestock Development, Board of External Trade and the National Bureau of Statistics. Qualitative analyses were used to describe the characteristics of the value chain actors whilst prices, marketing margins and profit margins were determined to examine efficiency at the different stages in the value chain. Prices, profit margins and marketing margins at various stages of the value chain were analysed to assess efficiency of the value chain. Generally, the hides and skins supply chain was characterized by low value addition, poor animal husbandry practices, improper skinning of animals due poor facilities and handling practices. poor preservation methods and processing technology. Most (80%) of the hides and skins were exported in raw form and the rest exported wet blue leather. With the exception of few wholesalers and processors, vertical coordination and linkage between actors was weak. Prices, marketing and profit margins were found to vary significantly between different actors along the value chain. Wholesalers obtained higher profit margins than the other actors in the value chain. The study recommends improvement of slaughtering slabs.slaughtering facilities. strengthening of producers and traders organizations and effective enforcement of laws and regulations governing hides and skins trade.
Differential livelihood portfolios along altitudinal gradients of Mount Kilimanjaro, Tanzania
(Sokoine University of Agriculture, 2014) Haule F. D.
This study was conducted in west Kirua Vunjo division in Moshi Rural district, Kilimanjaro from late 2012 to mid 2013 to assess the altitudinal differences in livelihood endowments; evaluate the altitudinal differences in coping strategies; and evaluate factors which determine the differential livelihood portfolios in the study area. The altitudinal differences in livelihood endowments were assessed using a one way analysis of variance and the altitudinal differences in coping strategies were evaluated using a chi-square test. The factors which determine differential livelihood portfolios were evaluated using a Multinomial logit regression model. The findings in this study show that there is a significant difference in livelihood endowments between communities in the upper zone (with mean of 93 250 000 TZS) and lower zone (with mean of 60 390 000 TZS). This implies that local populations living in the upper parts of Mountain Kilimanjaro have relatively better livelihoods than those living in the lower parts. However, the difference in livelihood endowments between difference was observed between the middle and the upper altitudes. The dependence on government aid was found to be a dominant coping strategy in the lower altitude, while the use of alternative crops as well as short rains were more dominant in the upper altitude. These results imply that, the households in the lower altitude are more vulnerable to disasters such as drought, floods, crops pests and diseases than are the found to have positive influence on livelihood portfolios. The presence of various institutions was also found to positively influence livelihood portfolios. The study recommends for an establishment of modern irrigation network system so as to households in the upper altitude. Also household characteristics and altitude were the lower and the middle altitudes was not statistically significant while a sligh difference was observed between the middle and the upper altitudes. The dependence on government aid was found to be a dominant coping strategy in the lower altitude, while the use of alternative crops as well as short rains were more dominant in the upper altitude. These results imply that, the households in the lower altitude are more vulnerable to disasters such as drought, floods, crops pests and diseases than are the found to have positive influence on livelihood portfolios. The presence of various institutions was also found to positively influence livelihood portfolios. The study recommends for an establishment of modern irrigation network system so as to households in the upper altitude. Also household characteristics and altitude were found to have positive influence on livelihood portfolios. The presence of various institutions was also found to positively influence livelihood portfolios. The study recommends for an establishment of modern irrigation network system so as to minimize drought borne problems, and the establishment of risk insurance so that farmers can join and get compensation in case ofshocks (drought, floods, etc).
The role of on-farm processing in generating farmers' income: the case of oilseeds in Kongvva District, Dodoma Region, Tanzania
(Sokoine University of Agriculture, 2006) Daudi ,P.N
On-farm processing of agricultural products like oilseeds is becoming more important in the economies of most developing countries like Tanzania mainly due to declining and fluctuating prices of raw products in the domestic and world markets. This study aims to illustrate the potential of on-farm processing in increasing farmer’s income in developing economies using sunflower in Kongwa district as a case. Specifically the study determines relative profit earned by farmers from selling raw sunflower and estimates how much additional income is generated after introducing on-farm processing. Primary data were collected through a cross section survey of 120 fanners using a structured questionnaire. Descriptive analyses were used to describe the respondents’ characteristics. Gross margin analysis was used to estimate income generated from selling raw produce and that from processed produce. Paired Sample T-test was used to compare means of income generated by farmers before and after processing sunflower. Sunflower oil and seedcakes are the two products into which sunflower in the study area is processed .The results show that, on average the welfare of fanners increased by Tshs 121.63/kg of sunflower when on-farm processing is introduced in the sector. Comparison of means using Paired Sample T-Test indicated that farmers’ profit before and after processing sunflower were highly statistically significant at 1% level (p<0.01), confirming the hypotheses that the income generated by farmers from raw sunflower differ significantly from that obtained by selling processed sunflower. The study also found that there are several problems that hinder prosperity of on- farm processing in the study area. These include lack of reliable markets, few processing facilities/machines, low oil content seed varieties, poor transport, poor packing facilities and import competition. This case study clearly suggests that on-farm processing has important role in generating considerable income and hence in alleviating rural poverty. The results also support the notion that on-farm processing may contribute towards satisfying some of the objectives of an effective rural development agenda. This study recommends that the government should introducc/expand on -farm processing in areas growing oilseed crops.
The contribution of microfinance on livelihood development of the people living with HIV/AIDS (plwhas) cases of caritas-Dar es salaam
(Sokoine University of Agriculture, 2008) Charles, J. S
Proponents of microfinance often state that its primary purpose is to provide investment capital for micro-enterprise development so that clients can grow their income and assets, smoothen their consumption, manage their risks better and enjoy an improved livelihood. A complementary microfinance strategy is to assist clients to protect their income and assets from the impact of crisis events such as AIDS, natural disasters or conflict. Tanzania being one of the country found in sub-Saharan Africa faces a serious AIDS epidemic and the people most at risk - the poor in general, and poor women in particular - are also target groups for microfinance initiatives. MFIs in Tanzania cannot ignore the reality of HIV/AIDS given the impact it does and will continue to have on their clients. This unique characteristic of the epidemic has been treated as an adverse condition, limiting the households' ability and willingness to react early. However, with a properly designed policy response. the 5-7 years between the HlV-infliction and the height of AIDS can be utilized to reduce the economic vulnerability of the HIV-afflicted households. The primary aim is to limit the negative coping strategies (reduced food consumption, use of savings and sale of assets) and to reinforce the positive coping strategies (income diversification) of the households. This step will potentially avoid economic collapse of the households due to too much strain in the worst stages of the illness. Financing the HIV/AIDS inflicted clients via microfinance is the most viable option, as the informal financial sector is unsustainable and the formal sector is out-of-reach for this high-risk group. The sustainability of the microfinance programs can be mitigated by transferring resources from the non-AIDS population in the form of savings. This research paper attempts to describe ways that microfinance Institutions (MFIs) in Tanzania can assist their clients to cope with the impact of HIV/AIDS when struggling to boost their business in the cause of fighting poverty and improving their livelihood.
Evaluation of farmers participation in oilseeds value addition and implication on their income: a case of sunflower in Kilosa
(Sokoine University of Agriculture, 2011) Abdallah, G. F
This study aimed at evaluating farmers participation in the value addition to oilseeds and its implication on their income with special emphasis on sunflower. The general objective was to increase production and income generation through value addition in the rural sunflower potential areas of Tanzania. Specifically the study aimed to: assess processing capacity and utilization, identify factors influencing farmer participation in value addition, describe marketing channels of fanner value added sunflower, describe oil millers’ constraints and assess the change in value of sunflower produce due to processing. Structured questionnaires were used to collect primary data from purposefully selected 205 respondents: 100 participating, 100 non participating farmers and five oil millers from eight villages. Discussions and participatory observations methods were also used. The logit model was estimated using data from 200 farmers to test the hypothesis that socio-economic and institutional factors influence fanner participation in value addition. The results indicate that milling capacity is about 11 280 kg per day of which only about 32.3% is utilized at peak period and about 14.3% when sunflower is scarce. Processed sunflower increased in value by about 62.7% and most of the products were sold in the village. Education and price had significant positive influences while inadequate knowledge, low household income and poor market information had significant negative influence. In order to improve value addition there should be effective fanners involvement in the process of imparting knowledge to them. Reliable market information system countrywide which can effectively connects producers and buyers, electricity and rural road network need as well to be in place.
Economic assessment of niche market arrangements in the fruit and vegetable value Chain in Tanzania
(Sokoine University of Agriculture, 2013) Goodluck,Annette
The main objective of this study is to create an understanding of the existing niche market arrangements for high value products and to determine how small scale fanners can tap into and sustain the niche markets channels. The study specifically assessed niche market requirements for fruits and vegetables and the institutional arrangements that develop and sustain trade relations between buyers and sellers. The study also analysed the effects of transaction costs on market arrangements, linkages and relationship among traders, the benefits of complying with the standards and factors affecting such benefits. Both primaiy and secondary data were collected. Primary data was collected through questionnaires which were administered to the niche markets, niche market suppliers (NMS) and the open market sellers (OMS) through stratified simple random sampling technique with proportionate allocation. Secondary data was collected from niche markets. By using SPSS descriptive statistics analysed the data. Qualitative method using structural theoretical analysis and quantitative methods using t-test and OLS regression were used as tools for analysing the objectives. The study found out that niche markets demanded high quality, mature, colourful and big but uniform size products. To ensure they obtain such quality products niche markets were found working on contractual basis with NMS and pay visits to where NMS source the vegetables. Most niche markets paid the NMS on credit basis. The study found out that selling vegetables to the niche markets generates more profit than selling in the open markets while NMS performing other businesses than fruits and vegetables earn lower profit margins. To earn higher profit margins the study recommended that farmers and NMS should trade directly with niche markets and specialise in the fruit and vegetable business respectively. The government, financial institutions and SACCOS should finance these farmers especially those working on credit basis with niche markets.
The role of intermediary microfinance institutions in providing financial services in rural areas
(Sokoine University of Agriculture, 2008) Msemwa,Cornel
Microfinance is access to financial' services by poor households. The essence of microfinance is uncollateralized loans to borrowers who have not a constant source of income from income generating activity or from a wage job. Microfinance can help small farmers and the self-employed individuals who cannot or will not post standard physical collateral such as a mortgage or real estate. In fact, lenders may not accept collateral for small loans since the cost of seizure and sale may exceed the debt owed. Lack of collateral, however, increases the costs for lenders to judge risk and to enforce repayment (Nagarajan and Meyer, 1995). Microfinance aims to provide financial services to those who do not have the possibility to obtain them from the informal and the formal financial markets. The formal financial sector (banks and other financial institutions) is largely urban-based and organized primarily to meet the financial needs of the modern sector. Many MFI clients do not have any experience with formal banks, or do not qualify for services (lack of collateral and lack of business license). For others, the next bank is simply too far away. Informal financial markets arc ubiquitous; they are generally characterized by personal relationships,, ease of access, simple procedures, rapid transactions, and flexible size and terms of loans. However, not all households have access to informal money sources. Even close family members or good friends are often reluctant to lend money. Moreover, the amounts of money available from friends and relatives are often too smallii to be used as a business investment. Of the various services offered by micro-finance institutions, clients mainly use credit services; savings and advisory services, including tiaining. aic also quite frequently used. Formal banks lend to operate in urban areas leaving rural areas short of sources of finance. This situation causes the emergence of SACCOS as an alternative aiming at filling the gap left by the formal financial providers in rural areas. 1 his research paper highlights the operation of intermediary microfinance institutions in Mbcya region which arc in the partnership with CRDB Microfinance Company Limited. The study is focused on the provision of microfinance services in rural areas. It includes the challenges and the alternative solutions to solve them. The information used in this research paper was collected by conducting physical visit to the selected intermediary microfinance institutions which are working in partnership with CRDB Microfinance hub at CRDB Bank Mbcya branch. The source of information was from monthly report of the microfinance institutions, and focus group discussions with managerial team that were held during the visit. Also some information was collected from Microfinance office at the hub. During the study, it was observed that the main challenges faced by these intermediary microfinance institutions included; lack of innovation and creativity to come up with reliable and relevant products and services to the clients, technical know-how of MFIs staff was still low, working on voluntary basis which could in long run undermine theiii morale of MFIs staffs, and weak MFIs outreach. The paper stipulates some of alternative solutions to improve the situation of these microfinance institutions.
Microenterprise finance in Tanzania: case study and policy design analyses
(Sokoine University of Agriculture, 2001) Chiduo C. M .P
The purpose of this study was to assess the status and provision of micro-finance services in Tanzania and suggest necessary improvements in national microfinance policies and design of micro-finance programmes. Specific objectives of the study were to (1) assess the status and provision of micro-finance services in Tanzania basing on secondary information and analyses of selected case studies, (2) evaluate the status of accessibility to micro-finance (credit) of selected MEs in Dar es Salaam region, (3) determine the role of credit in micro-enterprises performance in terms of changes in employment creation and income generation, (4) analyse factors which determine performance of micro-enterprises, and (5) following achievement of the above objectives, recommend necessary improvements in the design of national micro-finance policies and individual programmes. Data for the study were collected from various primary and secondary sources including, The Planning Commission, Vice President’s Office, Bank of Tanzania (BOT), and National Micro-finance Bank (NMB). More data were collected through MFI and ME level surveys from PRIDE Tanzania, Presidential Trust Fund for Self Reliance (PTF), Huduma Ya Maendeleo Ltd (HYM) and their clients in Dar- es-Salaam region. Major tools of analyses for the study were descriptive statistics and multiple linear regressions. Results of the study confirmed that micro-finance programmes operated by the MFIs in the study areas have been designed basing on policies enshrined in the New Micro-finance Approach such policies have contributed significantly to financial successes in many parts of the World. They include: emphasis on group liability in lieu of formal collateral; charging of commercial interest rates instead of subsidized rates, effecting intensive loan collection, and demanding contributions towards insurance funds. Micro-enterprises studied have contributed substantially to livelihood of families of the micro- enterprise owners. Access of MEs to capital improves income generation and labour employment capacity of ME although only to a small degree. Capital has also enabled MEs to operate more smoothly and more efficiently. Recommendations of the study for policy relate to improvements in performance of the micro-enterprise sector through provision of reasonable amounts of start-up capital, and, provision of business management and marketing training, for the purpose of assisting ME’s growth and development into the formal sector. It is also recommended that, activities of MFI should be regulated through a micro-finance board that shall develop and promote rules and regulations for self-guarding interest of the various stakeholders in the micro-finance sub-sector.
Assessment of food market structures and their implication to household food security in Rufiji district
(Sokoine University of Agriculture, 2008) Massawe, Samwel
This study analyzes food market structure and its implication to household food security in Rufiji district with particular emphasis on Rufiji Demographic Surveillance System (RDSS) area. Specifically, the study analyzed existing food market structures in terms of number and size of marketing agents and marketing channels for major food products in Rufiji district; analyzed market efficiency of food products in terms of barrier to entry, vertical integration and market transparency; derived the implication of existing market structures and efficiency in terms of household food sufficiency; and proposed policy measures for addressing food insecurity in Rufiji district. A cross sectional single-visit survey that included randomly selected representative samples of 153 farmers and 66 food traders residing in RDSS area was conducted in February 2006. Pre-tested questionnaires were used to interview the sampled farmers and food traders selected so as to capture issues of food production and marketing in the area. The results of analysis revealed that (i) production of food crops for households with food deficit was low compared to households with food surplus; (ii) more than 90% of the households accessed most of their food items from food retail markets; (iii) in many areas food markets were concentrated with few traders who operate under diseconomies of scale; (iv) the entry major barrier faced by food traders is lack of access to capital; (vi) traders who integrate vertically offered processed food products at lower price; and (vii) correlation analysis between marketing margin and selling price of food products showed that changes in food prices were passed by traders from one marketing channel to another without significantly increasing their marketing margins. Based on the findings, the study recommended that (i) Food crop production should beiii increased by using appropriate modem technologies such as fertilizers, tractors and improved seeds to enable farmers to be food self-sufficient and at the same time increase marketed surplus; (ii) Traders should be sensitized by local government through district cooperative officers to form Savings and Credit Cooperative Societies (SACCOS) as an alternative to formal banks; (iii) The local authority in collaboration with development partners in the district should adopt the approach used by Rufiji Demographic Surveillance System (RDSS) to collect market information from identified locations in each month so as to monitor movement of food prices over time and space in order to improve district market information system.
Operational partnership facing challenges with commercial banks: microfinance the case of Hembeti and Turiani saccos/CRDB partnership
(Sokoine University of Agriculture, 2011) Kingazi Monica M.
Financing the poor is expensive than commercial banking due to transactions and administration cost. Loan officers have to travel to remote areas to give loans and other services. The problem is aggravated further by the fact that poor people have only small sums to save which limit the banks' economic opportunities. Recently, Microfinance Company initiated efforts to assist the poor by creating awareness on the borrowing procedures. This situatiomattracted Microfinance Industries (MFIs) to go into partnership with commercial financial institutions. The lending programme appears to produce tangible benefits and does not distort the process of financial intermediation between micro savers and micro borrowers' survivor. The purpose of this case was to determine the operational challenges facing the MFIs partnership with commercial banks. Two SACCOS namely Hembeti and Turiani were used as case studies. The data were gathered through participating in the SACCOS general meetings and interviews with leaders and other members. The results narrate several challenges which face the SACCOS. For the case of Hembeti SACCOS, paddy storage was a problem as all respondents mentioned shortage of godowns. Farm input costs to both SACCOS was mentioned by more than 90% of the respondents as prohibitively high to the extent of compromising SACCOS members from effective farming activities. Education is an important component for the SACCOS management to manage business and financial aspect as organization grow. This study has found that 55% of Hembeti SACCOS leaders had primary school education different from their counterpart Turiani SACCOS with 92% of its management members with secondary school education and 8% being universityiii graduate. Furthermore, the 81% and 99% of Hcmbcti and Turiani borrowers respectively used their loans as planned and had significantly reduced credit risk. Therefore there is need for MFIs continue plans to build a vibrant market of microfinance services by setting fair pricing and profit levels. Need for micro credit to expand entrepreneurial activities is a very important aspect. The study recommends that MFI management should posses the necessary skills that would lead to implementation of range of financial services and policies that support the farmers in different matters. Adherence to agreed ethics and the general code of conducts shall be taken as necessary.
Evaluating economic impact of credit to small-scale farmers: a case study of Turiani division, Morogoro
(Sokoine University of Agriculture, 2008) Sipira, Goodluck Loishiro Mellau
The study of evaluating economic impact of credit to small scale farmers was carried out in Turiani division. Specifically the study aimed at evaluating impact of that credit on use of modem agricultural inputs, impact of credit to smallholders’ livelihood and the performance of savings and credit cooperative societies. Both purposive and simple random sampling techniques were used in the sampling process. Purposive technique was used to select the area of study and target population relevant to the study. Six groups of beneficiaries each containing 5-20 members were randomly selected for the study. Equal number of non-beneficiaries was purposively selected from six villages. Therefore a total of 36 borrowers were selected and equal number of non-beneficiaries was selected from six villages of Turiani division. The sampling unit comprised of 36 beneficiaries and 36 non-beneficiaries. These villages were purposively selected due to easy accessibility and the fact that they have many farmers who were using SACCOS services. After the study, results revealed that there is a positive impact in terms of farmers’ use of modem and purchased agricultural inputs, credit on smallholder farmers livelihood and the performance of savings and credit and cooperative societies. The findings from this study will assist the government and other MFIs to formulate procedures to design institutional frameworks for improving credit services to small- scale farmers. Furthermore, the findings of this study will also assist private and public sector to enhance the ability of poor farmer to access credit and consequently improve their living standards through increased earning from their agricultural activities.
Farmers’ perception and adaptation to climate variability in selected districts of Morogoro region, Tanzania
(Sokoine University of Agriculture, 2011) Daninga, Phillip Daniel
The thrust of this study was to discern perceptions of rural people about climate variations and assess their ability to adapt to the changes accordingly. The specific objectives were to: (i) assess farmers’ perception about climate change indicators affecting agriculture, (ii) analyze micro-level climate change impacts facing farmers on production systems, (iii) analyse farmers’ adaptation to effects of climate change on production systems, and (iv) assess adequacy of off-farm coping strategies in reducing livelihood risks associated with climate variability. The data for this study were collected through household interviews. The questionnaires was administered to a sample of 240 farming households from six selected villages, three from Kilosa District, two from Morogoro rural and one from Mvomero District. Data were analysed using descriptive and quantitative methods. As perceived by farmers, temperature, rainfall intensity and sunshine intensity were mentioned by most farmers as among the major indicators having great impact on climate variability and change. The study results showed that farmers’ awareness about climate variations is high and that production systems of farmers have been highly impacted due to prolonged droughts, dry spell, untimely rains and changes in rainfall seasons. The results showed that most people in rural areas still do not know what the major agents of climate change are. However, the rural farmers have some knowledge and capacity in trying to adapt and cope to the climate changes although the capacities to deal with the climatic variability are still low. Consequently it is recommended that effective policies must be formulated to address adaptation strategies that focus more on access to information, credit, extension services and strengthening social networks through farmer to farmer extension. Additional actors such as the private sector, NGOs, and the media should be more involved in promoting the adaptation process.
An economic assessment of invasive shrubs and grasses on pastoral grazinglands of ruhaama county, Uganda.
(Sokoine University of Agriculture, 2010) Kagwa, Tugeineyo Apollo
The need to achieve improved and sustainable range and grazingland conditions is an ideal to meet pastoralists income in the pastoral economy. Range and grazinglands of Uganda and Ntungamo district in particular, are of great significance to livestock production and pastoral economy. Rangelands of Uganda on which grazing activities are generally based, support about 90% of the national cattle population. However, massive shrub/grass invasion appears to be. causing severe environmental and economic loss to the pastoral economy. Based on this ground, the study was conducted in pastoral communities of Ruhaama county to assess economic effects of invasive shrubs and grasses onto cattle rearing and pastoralists income. A hundred twenty pastoral households were surveyed, sixty of which were grazing on cleared farms and the other sixty grazing on bushy farms. Data was analysed using both qualitative and quantitative techniques under Statistical Package for Social Scientists (SPSS) and excel computer programs. Binary logistic regression and gross margin techniques were used to evaluate shrub effects, pastoralists income, production efficiency and profitability respectively. The household obtained gross margin of Ush 5 822 052 on cleared farms while on bushy farms was Ush 1 655 418 per annum. The TR/TVC ratio of 2.5 on cleared farms was considered desirable and economically efficient given a minimum level of variable inputs in farm improvement compared to 1.6 on bushy farms. It is recommended in this dissertation that there is a need to have more comprehensive research on the real magnitude of environmental and economic losses caused by shrub encroachment to cattle production and national economy as whole. There is also a need to obtain detailed information on causative factors of shrub/grass invasion and pastoralists to establish alternative sources of income to improve their livelihood and farms other than over depending on cattle as main source of income.
Impact of agricultural global value chains trade policies on livelihood and : the case of coffee and sugar in Tanzania
(Sokoine University of Agriculture, 2024) Kangile R.J
Agricultural global value chains (GVCs) are “organizational systems that operate across multiple nations and are always integrated”. The GVCs commodities link producers to consumers worldwide through a global network of multinational enterprises (MNEs). GVCs trade is managed using trade policies both in producing and importing countries. GVCs trade policies in developing countries, including Tanzania, must optimally deliver social, economic, and environmental benefits to trade participants. The socio, economic and environmental benefits realized sometimes are offset by socio and environmental costs. This happens to all trade policies, whether in trade agreements, trade rules, regulations, or global standards such as certifications. It is thus essential to assess the impact of GVCs trade policies to suggest appropriate policy levers that can optimise social, economic, and environmental benefits. Thus, this study uses coffee and sugar GVCs in Tanzania to assess the impact of certification policy, which is one of the GVC‟s trade policies, the trade policies landscape of the country (trade governance), and the role played by GVCs in ensuring delivery of social, economic, and environmental benefits. Specifically, the study evaluates how governance affects the sugar trade, determines the impact of coffee certification policy on livelihood and environmental conservation and finally analyzes the contribution of the coffee trade to livelihood improvement and gender equity. The study hypothesizes that trade governance does not affect Tanzania's sugar trade and trade policy landscape; coffee certification does not improve household incomes and environmental conservation. Coffee production and trade do not contribute positively to livelihood improvement and gender equity. The study uses data collected from randomly sampled 400 coffee farmers and 375 randomly selected sugar supply chain actors in Tanzania. The study used a mixed method of data analysis. The endogenous switching regression (ESR) model is used to ascertain the impact of the coffee certification policy. Exploratory (factor analysis) and confirmatory (weighted least square regression) models are applied to evaluate the level of trade governance in Tanzania and ascertain its effects on the sugar trade. The Oaxaca– Blinder decomposition and Gini coefficient models evaluate coffee income distribution and how general coffee production and trade contribute to gender equity and livelihood improvement. The major findings are that trade governance is essential in ensuring the delivery of benefits to all participants in trade. The study confirms that governance affects the sugar trade, with the magnitude of its effects being felt differently between farmers and traders. The findings show further that abrupt trade policy change significantly (p<0.05) reduces sugar trade by almost half (47.7%) and lowers the overall level of efforts to invest within the sugar supply chain. The study shows further that the evaluated GVCs certification trade policy does not offer socio-economic benefits but contributes significantly to environmental conservation. This is because the study rejects the hypothesis of certification to improve household income but accepts its contribution to improved awareness and environmental conservation practices among coffee farmers. Additionally, GVCs trade contributes positively to livelihood improvement and gender equity since the study found coffee to have income inequality-reducing effects. Therefore, using sugar and coffee GVCs and one of the GVC policies, certification, the study has confirmed that certification does not optimally deliver social, economic, and environmental benefits to trade participants. However, participation in trade is essential for inclusive socioeconomic benefits. The study confirms further that good sugar trade governance is a panacea for Tanzania to achieve optimal trade policies in the sugar sector. Predictability of the trade policies in the sector is a major factor for allowing forward contracting of imports and/or exports and investments. Thus, the study has provided the importance of trade governance in shaping how countries should implement trade policies. The study recommends ensuring trade policies are stable and predictable for increasing trade and allowing forward contracting and investments. It is also essential to create awareness of institutions and organizations managing the GVCs by encouraging transparency in trade policy administration and practices. The certification policy should be implemented by easing the transmission of price premiums to coffee farmers for an increased supply of sustainably grown coffee, improving coffee farmers‟ livelihood and helping attain environmental sustainability goals within the coffee supply chain. This must be supported with awareness creation and making certification services accessible and cost-effective to coffee farmers. In striking a balance between people and nature, participation in the GVCs trade is encouraged. This is because coffee is an essential crop with an inequality-reducing effect, contributing to livelihood improvement. Investing in supporting the coffee supply chain impacts poverty reduction, as the income earned from coffee favours people experiencing poverty more than other income sources. Participation should be supported through empowerment for equal access to land and credit. Production and trade policies should also be gender responsive by providing opportunities to offer trade facilitation services to increase the participation of women in coffee supply chain activities and control their participation benefits
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 Christian
This 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 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.
Development outcomes of land tenure formalization under customary and statutory land tenure systems in Tanzania
(Sokoine University of Agriculture, 2023-11) Msangi Haji Athumani
As the global population continues to grow, urbanization and industrialization have led to a scarcity of land, putting additional pressure on agricultural land as various competing uses emerge, such as new settlements, commercial farming, and industrial establishments. This situation has made smallholders increasingly vulnerable to poverty, food insecurity, and conflicts due to the loss of land rights and tenure insecurity. In response to these challenges, Land Tenure Formalization (LTF) has become a popular policy approach and a prominent development agenda among development partners and national governments in the global south. However, the adoption of LTF interventions has been consistently low, and the reasons behind this low uptake are not well- documented in the existing literature. Where LTF interventions have been implemented, the empirical evidence on their effects is inconclusive and mixed, leading to uncertain implications for policy. This ambiguity in results stems from conceptual and methodological flaws in the treatment of LTF as a simple dichotomy between formalized and non-formalized land tenure, as well as issues with identification and the failure to account for potential complementarities between LTF and other interventions. To shed light on these issues, this study utilizes Tanzania's National Panel Survey data from 2014/2015 to examine the development outcomes of LTF, making a distinction between customary and statutory systems in Tanzania. The research specifically investigates the determinants of LTF using a Multinomial Logit (MNL) model, the development outcomes of LTF under customary and statutory tenure systems using a Multinomial Endogenous Switching Regression (MESR) model, and the potential complementarities between LTF and the Productive Social Safety Nets (PSSN) cash transfer program using an Inverse Probability Weighted Regression Adjustment (IPWRA) approach. The findings reveal significant differences in the determinants of LTF across land tenure systems. Factors such as household education level, formal employment status, migrant status, possession of dwelling certificate, and plot-to-dwelling distance positively and significantly influence statutory land tenure formalization, while agricultural occupation status has a negative impact on statutory land tenure formalization. In contrast, factors like household education level, rural resident status, farm size, financial assistance, and village land certificate significantly and positively influence customary land tenure formalization. However, formal employment status of the household head, migrant status of the household head, and purchased plots significantly and negatively influence customary land tenure formalization. Overall, these results suggest that Tanzania's LTF interventions are costly, bureaucratic, and tend to favor educated formal wage earners and migrants, leaving less educated, indigenous, and full-time farmers, who make up the majority of households reliant on agriculture, at a disadvantage. This renders the LTF interventions socially sub-optimal as they attract speculative rather than productive formalization. Similarly, the MESR estimates demonstrate that the effects of LTF differ significantly between customary and statutory land tenure systems. Possessing formal land tenure certificates, such as Certificate of Customary Right of Occupancy (CCRO) or Certificate of Granted Right of Occupancy (CGRO), significantly improves perceived land tenure security, with the effect being more pronounced and significant for CGRO holders compared to CCRO holders. Regarding credit access, the findings show variations in the effects of LTF on general, formal, and informal credit access. While there is no significant effect on general access to credit, possessing a CGRO significantly improves access to formal credit and reduces reliance on informal credit. Furthermore, regarding land investments, there are positive and significant effects of LTF on organic and inorganic fertilizer use, as well as investments in trees and permanent crops, but only for CGRO plots. The findings from the Inverse Probability Weighted Regression Adjustment (IPWRA) analysis reveal that when households participate jointly in Land Tenure Formalization (LTF) and the Productive Social Safety Nets (PSSN) programs, there is a significant improvement in farm productivity, households' consumption expenditure, and food security. Interestingly, the combined impact of LTF and PSSN is far greater than the sum of their individual effects, indicating a strong complementarity between these two programs. While the stand-alone impacts of LTF or PSSN are positive, they do not show significant effects on all food security indicators, except for PSSN, which has a slightly significant positive impact on food consumption scores. Moreover, when analyzing different tenure systems, the study suggests that the joint impact of statutory LTF with PSSN is stronger compared to the joint impact of customary LTF with PSSN, whereas the stand-alone impacts show the opposite pattern. Given the evidence of the costly and bureaucratic nature of the LTF system in Tanzania, there is a clear need for policy reforms and initiatives that promote more cost-effective, less bureaucratic, and inclusive LTF systems to achieve more socially optimal outcomes. Additionally, as the determinants and outcomes of LTF significantly differ between tenure systems, future empirical studies should acknowledge and consider this distinction in their conceptualization and methodologies to provide greater clarity and more meaningful policy insights. Considering the proven complementarities between LTF and PSSN programs, it is highly recommended to design pro-poor agricultural interventions that integrate complementary packages such as social protection programs to enhance their impact. Lastly, in light of the mixed and inconclusive evidence on the effects of LTF, this study calls for further empirical research to explore and better understand the potential interactions between LTF and other anti-poverty interventions, such as credit access, extension services, farm input subsidies, irrigation, and farm mechanization programs. Such studies would contribute to improving clarity and generating better policy implications for poverty reduction and agricultural development.
An Economic analysis of factors influencing Flue-cured Tobacco production in Tanzania: A case study of Iringa district
(Sokoine University of Agriculture, 1992) Mwikila, Theophil Ruttashubanyuma
The study tobacco focuses production emphasis is on fluctuations on factors in Iringa factors yield The Tanzania. District, responsible which are in tobacco flue-cured affecting for wide small-scale in both and large-scale farms. Two types of data namely primary and secondary were collected. Structured questionnaires were used to collect most of from two the primary data and small-scale large-scale selected samples farmers. Discussions of with relevant authorities and use of relevant office documents were the main of sources secondary analyses , multiple regressions, programme planning are the data. budgeting techniques Descriptive and direct in used the analyses. Results indicate tobacco individual production maize and in significant that working capital, influencing small-scale f arms. were tobacco Total areas under statistically production tobacco yield on is highly associated with both tobacco planted area and the amount of working capital spent for tobacco inputs used. Positive correlation exists between tobacco area planted, tobacco yield per ha and the amount of capital employed while negative correlation is observed between tobacco yield per ha and maize area planted. For large-scale farms, tobacco farming experience and total tobacco area planted are important parameters explaining the variations in tobacco yield per hectare. Tobacco yield per ha is highly correlated with tobacco farming experience. tobacco Also, area planted positively correlated with farmer’s experience. is Shortage of firewood, inaccessibility of credit facility from banks and low soil fertility particularly in large scale farmers were the common problems. Recommendations encourage cultivation include of Government manageable policies farm sizes that and intensification of agricultural extension services. Others include prompt payment of sold tobacco, special credit scheme to tobacco farmers, introduction of liberalization of tobacco market and encouragement of research that aims at solving the firewood problem.
Analysis of the value chain for local chicken in Tanzania: a case study of Singida and Dar es salaam regions
(Sokoine University of Agriculture, 2010) Chuwa, Rozina Roman
The study sought to: analyse the structure of the local chicken value chain (LCVC) from production to consumption, examine how the chain is organized and coordinated, assess the efficiency along the value chain and identify the constraints facing actors. Secondary data were collected from various sources such as MLDF and DALDO/ MALDO reports. Primary data were collected using questionnaires administered to a total of 139 actors along the LCVC from Singida to Dar es Salaam regions. Data were analysed by using SPSS to generate descriptive statistics such as means, range. frequencies and percentages as well as cross tab and correlation coefficients. Marketing margins and profit margins along the chain were also estimated. The study results indicated that the LCVC was characterized by small scale of operations at all nodes in the chain, high prevalence of diseases, low productivity per bird, poor facilities for handling and transporting live chicken birds and limited value addition. Key actors were local chicken (LC) keepers, assemblers, wholesalers, live chicken retailers, food retailers and consumers. Overall, the results show that these actors were weakly organized and coordinated. Prices and margins were found to vary' among the actors in the LCVC. Retailers were found to obtain higher profits than other actors in the LCVC. Among the retailers, retailers of cooked/processed LC products were found to obtain higher profit margins per bird than retailers of live birds, suggesting the importance of value addition in profit making. Low productivity, low local chicken price, local chicken mortality, lack of training, extension services, and credits were the major challenges to local chicken keepers. Traders were constrained by chicken mortalities, double charges payment and high business running costs. The study recommends improvement on LC husbandry practices, enforcement of existing laws and regulations,iii establishment of LC keepers' organizations, linking LC keepers to profitable value chain strands, establishment of cold chains for transporting LC meat and credit support.
Evaluation of a loan system under tobacco contract Farming, a case study of Tanzania leaf tobacco company of Morogoro, Tanzania.
(Sokoine University of Agriculture, 2007) Machunda, J.
In Tanzania, tobacco is one of the largest export and exchange earner crop (BOT, 2003). Tobacco farming industry is a contract farming business involving farmers in primary cooperative societies located in eight production regions. TLTC as one of the company dealing with tobacco business do enter into contracts with primary cooperative societies. According to the company records since 2001 the current debt recovery has improved compared to previous years, however this improvement had not been beneficial to both the company and farmers because after debts recovery from PCS sales, farmers fail to repay themselves efficiently to realize their intended profit margins. Farmer’s payments among themselves after debts recovery since 2002-2004 had been 61.41, 69.51 and 59.75 percents to some PCS. This indicates inefficiency in the production-marketing system and revenues reduction to both sides. This study has evaluated the loan system under tobacco contract farming in Tabora and Urambo production regions and revealed some points in the functioning of the entire contract farming arrangements and also calculated the average profitability of tobacco farming to average farmers which is 40% in view to repay the loan. The study concluded that the ability of the farmers to repay the loan is within coverable ability, however other weaknesses have been identified and noted to contribute to poor repayments, thus a need of more role efforts to industry stakeholders are recommended on more education to PCS leaders, improved tobacco buying system, implementation of lawful enforcements and stakeholder role analysis.
Technical efficiency among small scale onion growers in Karatu district, Tanzania
(Sokoine University of Agriculture, 2011) Kileo , S.K
Tanzania’s economy is heavily dependent on agricultural production. Agriculture is the lead sector, accounting for 45% of GDP and about 60% of export earnings. It is the source of food and raw materials for industries and it provides livelihoods to about 80% of the population. The overall objective of the present study was to determine the performance of small scale onion growers so as to improve production efficiency. Subsequently specific objectives were to determine technical efficiency among small scale onion growers, to determine factors influencing technical efficiency among small-scale onion growers and to determine contribution of onion production to household income. Primary data including households attributes were obtained from house holds while secondary data such as potential villages which produce onion, population density and acreage size as well as infrastructure development were obtained accordingly. Data were collected from 120 onion growers in Mang’ola ward at Karatu District. The data were analyzed by using the limdep software and the results showed that 35% of farmers had low technical efficiency. The average gross margin analysis showed that, onion was sold TZS 36 000 per bag implying that onion has high contribution to households income. Also the results showed that farmers’ education, income and market information have no significant influence on technical efficiency. This study therefore, recommends formation of farmers associations which would enable access to inputs in low price from suppliers, utilization of the economy of scale and enhance farmer's access to markets which is important for increasing productivity for the various crops grown in the study area.

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