Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania

A thesis submitted in fulfillments of the requirements for award of the Degree of Doctor of Philosophy of Mzumbe University

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Main Author: Mpeta, Daniel F.
Format: Thesis
Language:English
Published: Mzumbe University 2024
Subjects:
Online Access:http://hdl.handle.net/11192/2247
https://scholar.mzumbe.ac.tz/handle/123456789/577
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author Mpeta, Daniel F.
author_facet Mpeta, Daniel F.
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spelling oai:null:123456789-5772024-04-08T18:56:46Z Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania Mpeta, Daniel F. Contract Farming Production Income Sunflower Farmers Central Agricultural Zone A thesis submitted in fulfillments of the requirements for award of the Degree of Doctor of Philosophy of Mzumbe University This thesis undertakes to explore the effects of farming contracts on technical efficiency of production and incomes of smallholders in Kongwa district of great interest in the study is fact that, farming contracts examined involve sunflower crop, a low value crop which does not belong to conventional crops considered to be ideal crops for contract farming. Most contract crops as described in Prowse (2012) are often those which exhibit higher net return per hectare of land than staples; have high degree of perishability and require product homogeneity in their production, high hygiene, and safety requirement at the end market. They are crops such as vegetables, fruits, flowers, ornamentals, condiments and spices whose transactions costs in spot market are usually high (Temu&Temu, 2005; Prowse, 2012). Sunflower does not have such characteristics. It is an easy to grow crop, an indispensable edible crop, with low perishability and with many buyers. Econometric modeling is used to determine the contract effects on productivity and income of sunflower farmers. Considering contract farming as a governance form between smallholders and agri-business firms, the study uses a value chain approach to examine the role of contracting firms in coordination of trade relationships. A cross-sectional data set of 400 small-scale sunflower farmers in Kongwa district and chain survey data covering 7 sunflower processing firms based in Dodoma and Singida practicing contract farming are used. Results show that participating in contract farming lead to an average increase in technical efficiency of a farmer by 4.5- 7.4 percent. Contract participation also increases land productivity of a farmer. The expected output per acre of contract farm is 24% higher than non-contact farm. Similarly, contract farmers realize positive income effects from sunflower production. Results also show that innovativeness of firms and collaborations with Local Government Authorities, are a key to contract farming success. Promotion of contract farming could be done by e.g. providing improved services to contract firms and farmers such as by supporting the availability of improved seeds, and creating conducive contract farming laws and regulations Private 2024-04-08T18:56:42Z 2024-04-08T18:56:42Z 2015 Thesis APA http://hdl.handle.net/11192/2247 https://scholar.mzumbe.ac.tz/handle/123456789/577 en application/octet-stream Mzumbe University
spellingShingle Contract Farming
Production
Income
Sunflower Farmers
Central Agricultural Zone
Mpeta, Daniel F.
Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania
title Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania
title_full Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania
title_fullStr Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania
title_full_unstemmed Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania
title_short Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania
title_sort effects of contract farming on production and income of sunflower farmers in kongwa district in central agricultural zone of tanzania
topic Contract Farming
Production
Income
Sunflower Farmers
Central Agricultural Zone
url http://hdl.handle.net/11192/2247
https://scholar.mzumbe.ac.tz/handle/123456789/577
work_keys_str_mv AT mpetadanielf effectsofcontractfarmingonproductionandincomeofsunflowerfarmersinkongwadistrictincentralagriculturalzoneoftanzania