An economic analysts of state owned large scale mechanised wheat farms. a case study of setchet wheat farm in Arusha, Tanzania.
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Date
1993
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
This
large
study
scale
Arusha,
describes
wheat
Tanzania.
and analyses
production
The
the
Setchet
at
economics of
Farm in
Wheat
of study are to
objectives
(a)
determine benefits and costs of wheat production at Setchet
Farm and examine the farm’s cost effectiveness, (b) examine
efficiency and profitability of the farm and (c) investigate
the constraining factor(s) limiting the farm to achieve its
potential yields.
The study requires
extensive use of secondary data.
However primary data were collected to supplement recorded
data. Analysis applied involved use of descriptive analyses,
such as the benefit-cost ratio (supplemented by net present
value and internal rate of return),
efficiency ratios and
cost comparative analysis.
Survey results reveal that, the farm is operating below
its potential
compared
to wheat research
trials done at
Hanang Wheat complex. Efficiency ratio analysis shows that
although the
farm
has
been able
to
meet
its
production
costs, meagre farm margins in some years have made the farm
not able to meet its investment and depreciation costs.
Economic analysis demonstrates that the current average
farm performance is economical, while financial tests reveal
that the farm is commercially unviable at 1.8 tons/ha. The
economic analysis gives a benefit-cost ratio of 1.15.
financial analysis at the same management
level,
But
gives a benefit-cost
ratio
of
0.96.
the
On
other
cost
hand,
comparative test reveals that conventional, tillage method is
cheaper than reduced tillage method currently applied at the
farm.
From the study it is recommended that, the farm should
do
advance
preparati on
of
f arm
machinery
before
field
operations, while seed multiplication has to be carried on
separate blocks.
On the other hand,
the farm should apply
conventional tillage method during land preparation. Finally
the study recommends further restructuring of NAFCO so as to
allow autonomy and flexibility of the farm management.
Description
MSc. Dissertation in Agricultural Economics
Keywords
wheat production, Large scale economics, Wheat Farm