Production efficiency among smallholder arabica coffee farmers in Buhigwe and Kigoma districts, Tanzania
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Date
2014
Authors
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Publisher
Sokoine University of Agriculture
Abstract
Coffee is one of the most important export commodities in Buhigwe and Kigoma districts.
Unfortunately, production is still low and information on technical efficiency has
remained a scarce. This study sets out to contribute to the efforts of improving coffee
productivity to enhance cash income of smallholder Arabica coffee farmers in Buhigwe
and Kigoma districts, Tanzania. To achieve its objective, the present study estimates the
Technical Efficiency (TE) and inefficiency effects using single stage Maximum
Likelihood Estimation. Additionally, it uses gross margin to determine profitability
whereas descriptive statistics to assess contribution of coffee production to household cash
income and challenges facing smallholder coffee farmers in various economic activities.
The results show that the mean TE index is 68% and number of coffee trees and farming
experience being the key factors affecting TE. Moreover, the results show that, coffee
production is profitable with the mean gross margin of TZS 730/tree and contributes about
39% of total household cash income. Input prices, taxes and other deductions, shortage of
extension services, unreliable markets and low coffee price, low quality of coffee,
transportation and delayed payment delay are significantly reported by respondents as
challenges face coffee production. The present study farmers are technically inefficient
and there is a 32% scope for increasing TE. Number of coffee trees, experience and
education level are the management levels that influence TE. Coffee production is
profitable and contributes to household income and hence useful in reducing poverty. The
study recommends deliberate education on farm expansion and engaging youth in
production to improve TE. Interventions on supply of new coffee varieties, prices, taxes,
extension services, quality, transport and delayed payment delay and economic activities
diversifications are crucial to enhance farmers' income
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Thesis
Keywords
Arabica coffee, Production efficiency, Coffee farmers