A comparative analysis of business models of two-wheel tractors in Babati district, Manyara region, Tanzania.
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Date
2017
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Publisher
Sokoine University of Agriculture
Abstract
The study was conducted in Babati district in Manyara Region to sight see the viable business model for supplying two-wheel tractors to the farmers whether individual or formal group of farmers. In this study, the influence of socio-economic factors and institution factors in adopting and purchasing two-wheel tractors were identified. The methodology involved a cross-sectional research design with sample size of 88 farmers from both owners and non-owners. Purposive sampling technique systematic sampling was employed to select key informants. The main methods of data collection used were structured questionnaires and interview. Descriptive and
inferential statistical analyses were undertaken for qualitative and quantitative data
analysis using Statistical Package for Social Sciences. For the owners of Two-
Wheels Tractors (2WTs), 63.6% were in age category of 31-70. 90.9% were male
and more than 90% with household members less to 10,68.2% have more than 16
acres of land size cultivated. Binary logistic regression was: Land size was
statistically significant and is positively related to the ownership and purchasing of
2WTs at 1%, age of the farmer is statistically significant and is positively at 5%
while household size was negative statistically significant at 5%. From cost-benefit
analysis findings using CBA at 23% discount rate, individual business model had
B/C ratio of 2.59 while for group business model had B/C ratio of 1.47, indicating
that individual business model is viable. The study recommends that incentives for
agriculture investors that include zero-rated duty on farm inputs including fertilizer.
seeds, tractors and zero rated VAT on agricultural exports to be encouraged.
Description
Dissertation
Keywords
Suplying tractors, Purchasing tractors, Wheel tractors