Institutional arrangements and performance of contract farming in sunflower for smallholder farmers in Singida and Dodoma regions, Tanzania
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Date
2018
Authors
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Journal ISSN
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Publisher
The University of Dodoma
Abstract
Contract farming in sunflower as a vertically integrated mode of production and marketing is one of the most important transformations in the agriculture sector in Tanzania. Despite the introduction of CF in sunflower, many challenges persisted. These include unfavourable prices or markets. The reasons or factors for persistence of challenges in sunflower CF was the uniqueness of smallholder sunflower farmers such that the conventional CF arrangement was not fully applicable to it. This study assessed the existing CF arrangements with the aim of finding means of addressing the challenges and developing CF arrangements for sunflower farming. The study examined existing institutional arrangements and performance of CF in sunflower among smallholder farmers in Kibaigwa, Kinangali, Chenene and Haneti villages (Dodoma region) and Misigiri and Ulemo villages (Singida region). The study also determined factors essential for an effective CF arrangement in sunflower in the study area and formulated appropriate CF arrangement for sunflower. Stratified simple random sampling techniques were employed in selecting a representative sample of contracted and non contracted farmers where 124 contract farmers and 202 non contracted farmers were interviewed. Purposive sampling was employed to
get key informants in this study.
The study reveals that CF has significant positive influence in increasing farm productivity. Results show that the revenue of contract farmers increased from Tsh 184,437/= in first year to 320, 704/= in year four. However, the institutional arrangement is not well structured for effective performance of CF in sunflower in the study area. Results show that for effective performance of CF, timely provision of extension services and inputs, attractive prices of produces and trust are among the factors for an effective performance of CF in sunflower. Based on the findings, the study puts forward five major recommendations; establishing effective monitoring system to assure conditions and terms of agreements are adhered; writing the contract document in the form and language that majority of the farmers can understand and setting attractive and fair prices in CF. Other recommendations include establishing insurance programme to take care of the production risks and creating awareness on the usefulness of CF in sunflower among farmers.
Description
Doctoral thesis (PhD in Humanities)
Keywords
Dodoma, Singida, Tanzania, Sunflower, Smallholders farmers, Contract farming, Sunflower oil, Markets, Extension services, Sunflower farmers
Citation
Mwandilawa, B. (2018). Institutional arrangements and performance of contract farming in sunflower for smallholder farmers in Singida and Dodoma regions, Tanzania (Doctoral thesis). The University of Dodoma, Dodoma.