Market infrastructure and its impact on agricultural profitability in Mpanda district, Tanzania

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Date

2013

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Sokoine University of Agriculture

Abstract

Several factors such as cost of inputs, unreliable rainfall and poor market infrastructures and road are known to affect the performance of the agricultural sector in Tanzania. Therefore, this study investigated the influence of roads on maize profitability in Mpanda district. Specifically the study examined the effect of road infrastructure on cost of input in areas with poor and good roads. Furthermore, the study examined the effect of market accessibility by roads on the profitability of maize farming and evaluated the factors influencing profitability of maize farming in the study area. Purposive sampling was employed to select five wards based on categorical difference in areas with good and bad roads. Simple random sampling was then applied to select 125 respondents. The study found that the mean cost of inputs in areas with poor road infrastructures were higher than that of areas with good roads. At the same time, maize farming was found to be more profitable in areas with relatively good roads than in areas with relatively difficultly passable roads. Farmers from areas with relatively good roads get an average gross revenue of 1 066 417 Tshs/ha from maize farming while farmers from areas with relatively poor roads get an average gross income of 356 905 Tshs/ha. The study also found an existence of significant relationship between maize profitability and several socio-economic factors that included gender, age, farm size, credit access market accessibility and price road conditions. However, few factors like availability of extension service and types of labour used were recommended for further investigations due to their inconclusiveness.

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Keywords

Market infrastructure, Mpanda district, Tanzania, Agricultural Profitability

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