The role of on-farm processing in generating farmers' income: the case of oilseeds in Kongvva District, Dodoma Region, Tanzania
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Date
2006
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Publisher
Sokoine University of Agriculture
Abstract
On-farm processing of agricultural products like oilseeds is becoming more important in the
economies of most developing countries like Tanzania mainly due to declining and
fluctuating prices of raw products in the domestic and world markets. This study aims to
illustrate the potential of on-farm processing in increasing farmer’s income in developing
economies using sunflower in Kongwa district as a case. Specifically the study determines
relative profit earned by farmers from selling raw sunflower and estimates how much
additional income is generated after introducing on-farm processing. Primary data were
collected through a cross section survey of 120 fanners using a structured questionnaire.
Descriptive analyses were used to describe the respondents’ characteristics. Gross margin
analysis was used to estimate income generated from selling raw produce and that from
processed produce. Paired Sample T-test was used to compare means of income generated by
farmers before and after processing sunflower. Sunflower oil and seedcakes are the two
products into which sunflower in the study area is processed .The results show that, on
average the welfare of fanners increased by Tshs 121.63/kg of sunflower when on-farm
processing is introduced in the sector. Comparison of means using Paired Sample T-Test
indicated that farmers’ profit before and after processing sunflower were highly statistically
significant at 1% level (p<0.01), confirming the hypotheses that the income generated by
farmers from raw sunflower differ significantly from that obtained by selling processed
sunflower. The study also found that there are several problems that hinder prosperity of on-
farm processing in the study area. These include lack of reliable markets, few processing
facilities/machines, low oil content seed varieties, poor transport, poor packing facilities and
import competition. This case study clearly suggests that on-farm processing has important
role in generating considerable income and hence in alleviating rural poverty. The results also
support the notion that on-farm processing may contribute towards satisfying some of the
objectives of an effective rural development agenda. This study recommends that the
government should introducc/expand on -farm processing in areas growing oilseed crops.
Description
Masters Dissertation
Keywords
On-farm processing, Oilseeds, Generating farmers' income, Kongvva District, Dodoma Region, Tanzania