Economic analysis of irish potato value chain in Njombe urban and Wanging’ombe districts, Tanzania
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Date
2015
Authors
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Publisher
Sokoine University of Agriculture
Abstract
This study analyzed Irish potato value chains so as to identify potential areas for
interventions towards improving income for the various actors involved in the chain in
Njombe Urban and Wanging’ombe districts. Data were collected from 202 Irish potato
value chains actors using individual interview and focused group discussions (FGD). Sub
sector mapping, gross margin analysis and regression analysis were used in the study. Sub-
sector mapping analysis was used to map Irish potato value chains in Njombe urban and
Wanging’ombe districts. Gross margin along all Irish potato actors involved in the chain
were computed. Results indicate variations in gross margins with the highest gross margin
of Tshs. 2939 per kg obtained by local processors while the traders were receiving the
average gross margin of Tshs. 421 per kg, farmers in Njombe urban and Wanging’ombe
districts were getting a margin of Tshs. 51 and 22 per kg, which was the lowest gross
margin compared to the other actors in the chain. The results show that the common rural-
urban linkages were the flow of labour, fertilizer, output and financial services in the study
area. Regression analysis model was used to analyze the determinants of Irish potato
farmers’ gross margin. The findings show that only 34% of the variation in Irish potato
gross margin was due to the independent variables included in the model; gender, farm
size, age, farm location, Income and irrigation were the main determinants of Irish potato
farmers’ gross margin. There were number of challenges that hinder the development of
Irish potato value chain, it is recommended that government and non-government
organization, researchers and small scale farmers should address these challenges so as to
establish a profitable Irish potato value chain.
Description
MSc. Thesis
Keywords
Njombe Urban, Wanging’ombe, irish potato production, potato value chain, local processors