Economic analysis of sesame production and marketing: a case study of small-scale farmers in south eastern Tanzania
Loading...
Date
2009
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
The study was conducted to analyse the economics of sesame production and
marketing fbr small-scale farmers of Southeastern Tanzania. The main objective of
the study was to identify main factors influencing sesame production and marketing
in Southeastern Tanzania and options to enhance its production. Structured
questionnaire was used to collect information from sampled small-scale sesame
fanners, buyers, agents, processors, exporters and retailers. Descriptive statistics.
Regression analysis, Gross margin analysis and Gini coefficient were used fbr
investigation. Results revealed that, farm size allocated to sesame, planting method
and Total Variable Costs (TVC) incurred were significant (P < 0.05) and important
factors in determining sesame yield at fann level. Cashew crop enterprise was the
most profitable enterprise followed by pigeon peas and lastly sesame. The estimated
Gini coefficient was 0.8, which implies unequal distribution of buyers' share in the
study area. The analysis indicated that agents' share of export price was high (99%)
followed by co-operative unions (98%), retailers (56%), companies (38%) and
farmers (36%). These findings suggest the presence of inefficient market system in
the study area. This study recommends that the government should encourage more
buyers to buy sesame through reducing conditions for acquiring business license and
taxes during registration. This could improve market efficiency through competition
among the buyers. District councils should attempt to provide timely and adequate
market information to market participants particularly formers so as to improve
market transparency. Lastly, the government particularly district councils should
improve rural roads to reduce marketing costs.
Description
Dissertation
Keywords
Economic analysis, Sesame production, Marketing production, Small-scale farmers, South eastern Tanzania