Economic analysis of small-scale wheat production in Tanzania: a case study of Karatu district
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Date
2008
Authors
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Journal ISSN
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Publisher
Sokoine Univesity of Agriculture
Abstract
This study identifies factors that effect small-scale wheat production in Karatu district, Arusha region. Specifically the study aimed at identifying inputs utilization and their effects on small-scale wheat production, examining relative profitability of major crop enterprises; and identifying socio-economic factors influencing wheat production in the district. A survey was conducted and 70 small-scale farmers were interviewed. Secondary data were collected from SARI, SACCOS and banks. Primary data were analyzed in the SPSS programme using descriptive statistics, gross margin and linear regression model. The study revealed that the majority of the farmers did not have access to credit due to high interest rate, lack of collateral items and high risk on investment. The major production problems were pest and diseases, unreliable rainfall and supply of inputs, unfertile soil, weed infestation and poor extension services. Gross margin analysis indicated that wheat is more profitable than maize and beans. However many farmers did not opt to produce wheat because of food preference for maize and beans, which is consistent with the hypothesis that alternative crops enterprise (maize and beans) are more desirable venture in the study area. Regression model indicates that, wheat yield is influenced by labour availability, capital used for the purchase of inputs, maize acreage and access to research services. These variables accounted for 80% of the variation in yield. The results indicated that wheat was the most profitable enterprise compare to other competing crops (maize and beans). Based on these findings, it is recommended that future plans to improve wheat production in the district, should consider encouraging the participation of skilled manpower. This strategy could be achieved through creating attractive production environment such as introducing special credit programmes in the district and provision of information on inputs, agricultural technology and markets.
Description
Dissertation
Keywords
Wheat production, Wheat yield, Beans, Maize, Crop enterprises