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

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