Tobacco farming and its implications on poverty status: farmers’ perspectives in Urambo district Tanzania
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Date
2011
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Publisher
Sokoine University of Agriculture
Abstract
In its efforts to alleviate poverty among tobacco growers, the government of Tanzania adopted sub-sectoral reform aiming at improving tobacco gross margin. One of the basic strategies was the empowerment of co-operatives to source out finance through banks. It was in view of these initiatives that this study was undertaken in December 2009 and February 2010, to find out why poverty persists among tobacco growers despite the high income ensuing from tobacco production. The specific objectives of the study were to: estimate profitability of tobacco production; determine poverty status; determine expenditure of income from tobacco: assess perception of tobacco growers on tobacco farming and finally assess socio-economic factors affecting tobacco growers. The study findings show that, the respondents produce average of 1192 kg/ha which is below the potential production of 1900 kg/ha. The gross margin analysis reveals that, respondents’
gross margin is 70% of total revenue per ha. Considering government minimum salary scale of Tshs 104 000 per month as a benchmark, respondents earn twice of the same from tobacco production per month. Regression analysis indicates that yield per ha had beta wait of +0.743(p<000), contributing significantly on increased gross margin than other variables. Further, respondents spend over 50% of their income on food, which accounts for the prevailing reality of poverty. Tobacco low yield, large household size, insufficient food crops production, inefficiency performance of cooperatives, lack of entrepreneurial training and lack of other income generating activities, contribute in accounting for poverty persistence. The study recommends that the Government provides goods which promote utilization of income generated from tobacco such as building materials, schools, health and communication.
Description
Dissertation
Keywords
Tobacco farming, poverty status, farmers’ perspectives, Urambo district, Tanzania