Smallholder rice farmers' competitiveness within agricultural marketing co- operative societies in selected districts, Tanzania.
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Date
2024
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Publisher
Sokoine University of Agriculture
Abstract
Rice is the most important staple crop for most of the world's
population, particularly in Asia and sub-Saharan Africa. Smallholder
rice farmers account for a significant proportion of rice production
worldwide. Yet, they face numerous challenges that limit their
competitiveness in terms of Technical Efficiency (TE), profitability
and access to agricultural information and market outlets in farming
activities. Agricultural Marketing Co-operative Societies (AMCOS)
have the potential to enhance smallholder farmers‟ competitiveness
by sharing resources and knowledge. Yet, smallholder farmers‟
competitiveness in AMCOS has not sufficiently been explored in
Tanzania. The overall objective of the study was to assess
smallholder rice farmers‟ competitiveness in rice farming among
smallholder farmers in Mbarali and Mvomero Districts of Tanzania.
Specifically, the study sought to (i) Determine smallholder rice
farmers‟ productivity and TE in rice farming, (ii) Estimate the
profitability of smallholder rice farmers, (iii) Evaluate the contribution
of AMCOS to agricultural information access by smallholder rice
farmers in rice farming, and (iv) Assess the drivers of market outlet
selection among smallholder rice farmers in the study area. A cross-
sectional research design was employed whereby 382 respondents
were randomly selected from three AMCOS during the 2021/22
cropping season. Data were collected through interviews and Focus
Group Discussions (FGDs). Quantitative data analysis employed the
Cobb-Douglas stochastic frontier model, Enterprise Budgetary
Technique, Sensitivity Analysis, Ordinal Logistic Regression and
Multivariate Probit Regression. IBM SPSS Statistics, Stata and
Excel software were used for descriptive and inferential statistical
analysis while content analysis was used to analyse qualitative data.
The findings on TE showed that the mean TE indices for Kapunga,
Madibira and „„Umoja wa Wakulima Dakawa’‟ (UWAWAKUDA)
AMCOS were 84.9%, 87.6% and 79.1% respectively with a mean
TE of 83.8% for the whole sample. Across AMCOS, it was found that
intermediate costs, labour costs, fixed costs and quantity of fertilizer
influenced productivity (p < 0.05) while access to training, water
distribution, ploughing time, planting systems, and access to credit
influenced TE (p < 0.05). The study found an average Return on
Investment of 0.42, a Benefit Cost Ratio of 1.42 and a Profit Margin
of 24%. The level of profitability differed among co-operatives
whereby UWAWAKUDA had the highest return per acre (TZS
524 417), followed by Kapunga (TZS 414 111) and Madibira (TZS
316 638). Smallholder rice farmers' Gross Margins were significantly
affected by changes in Total Variable Costs, output price and yield
per acre. Although smallholder farmers had access to adequate
(52.6%), relevant (35.6%) and reliable (37.7%) agricultural
information from the AMCOS, information on rice agronomy was the
most important information accessed by the majority of farmers
(77.2%). The adequacy of information was influenced by
membership in social groups, access to rice agronomy information,
financial information and information on value addition at p < 0.05.
Wholesale, retail, millers, middlemen and private buyers were the
existing market outlets among smallholder rice farmers with the
majority (65.71%) of farmers selling to more than one outlet. The
quantity of paddy sold, access to market information, smartphone
ownership, access to credit, the quantity of rice sold and frequency
of extension services were the important determinants of selection of
market outlets of rice producers (p < 0.05). The study concludes that
rice farming in terms of TE has not reached a plateau and rice farms
have been operating below the maximum level of production frontier;
hence there is a potential for improvement to increase rice
production by 16.2%, given the available technology. The
smallholder rice production is profitable in the study area. AMCOS
are potential platforms for providing good quality information in rice
farming, and the majority of farmers access multiple market outlets,
contributing to livelihood improvement. To enhance smallholder rice
farmers‟ competitiveness, the Local Government Authorities,
AMCOS and other stakeholders should improve drivers that lead to
increased TE and profitability such as the water infrastructures,
organizing markets and training programmes for farmers.
Stakeholders responsible for improving smallholder farmers‟
livelihoods should ensure farmers‟ access credits and such credits
are channelled to rice farming. Local Government Authorities should
put efforts to strengthen AMCOS by providing them with resources,
training, and support to enhance their capacity to deliver accurate
and timely information to farmers. This includes collaboration with
agricultural extension service providers and leveraging their
networks to access up-to-date information on agronomic practices,
weather forecasting, and market trends to enhance farmers‟
competitiveness in rice farming. Policymakers should prioritize
increasing smallholder rice farmers' access to market outlets by
building rural infrastructures, improving market information systems,
and promoting public-private partnerships.
Description
PhD Thesis
Keywords
Smallholder rice, farmers, agricultural marketing, co- operative societies, rice.