Challenges facing sugarcane supply to Mtibwa Factory: empirical evidence from Mtibwa Sugarcane Outgrowers Scheme, Morogoro, Tanzania
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Date
2018
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Publisher
Sokoine University of Agriculture
Abstract
This study intended to assess challenges facing supply of outgrowers sugarcane to Mtibwa
factory in Morogoro, Tanzania using a sample of 210 respondents. The main objective
was to investigate problems leading to low supply of cane from outgrowers. Specifically
the study aimed to (i) Investigate factors affecting farm level productivity,(ii) Analyze
sugarcane outgrowers technical efficiency, (iii) Determine profitability of sugarcane
production among outgrowers and (iv) Examine constraints facing sugarcane outgrowers.
Cobb-Douglas stochastic frontier with technical efficiency effect was used to estimate
factors affecting sugarcane productivity, technical efficiency and factors affecting
efficiency. Outgrowers profitability was estimated by Net Present Value (NPV) analysis.
Stochastic production function estimates showed that; factor affecting sugarcane
productivity were 0.02, 1.2e-3, and 0.78 for capital, labour and land respectively. Findings
also showed that the mean technical efficiency was 53.75%. Furthermore; the results
showed that the factors affecting efficiency levels positively were age, farming
experience, non-farm activities, marital status and household size. Profitability analysis
from calculated values of NPV was positive thus it can be concluded that the business was profitable. Major problems faced by outgrowers included late payments, low price, high service charges and lack of transparency in calculating rendement and sugarcane weight.
Description
MSc. Dissertation
Keywords
Sugarcane supply challenges, Mtibwa Factory, Mtibwa Sugarcane Outgrowers Scheme, Morogoro, Tanzania, Sugarcan outgrowers technical efficiency, Sugarcan profitability