Impact assessment of post-harvest repayment deducfions on sugarcane out-growers’ profitability: a case study of Ruembe cane growers asso-ciafion
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Date
2011
Authors
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Journal ISSN
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Publisher
Forum for Agricultural Research in Africa
Abstract
This study was conducted at the Kilombero sugarcane out-growers’ scheme under the Ruembe Cane Growers Association (RCGA). It investigated the impact of post-harvest repayment deductions on sugarcane out-growers’ profitability through identifying benefits to farmers participating in the scheme, assessing their profitability, and analysing costs to sugarcane out-growers. A structured questionnaire was used for data collection. Profitability analysis was done by calculating the farmers’ gross revenues, gross cost and profit (both with and without ‘unnecessary deductions’). There were significant differences in farmers’ profitability, between all deductions included and ‘unnecessary deductions’ excluded. The analysis shows enough evidence that the ‘unnecessary deductions’ identified (Tanzania Sugarcane Growers Association, TASGA and government ‘CESS’ levy) had a significant impact on farmers’ final profits. In addition, farmers have been subject to many deductions and higher costs regarding their general involvement in cane production, compared with other crops, and with less help from the association management. Farmers participating in the sugarcane out-growers’ scheme benefited through a guaranteed market for their canes (the factory), price determination and negotiation by the Association, the possibility of getting loans and other credit facilities, and a guarantee of infrastructure services during the rainy season. However, double payments, duplicate roles of some deductions, and high transport costs because of inaccurate farm registration are some of the problems that need to be evaluated and addressed for Tanzanian sugarcane out-growers.
Description
Abstract. Full text article available at http://erepository.uonbi.ac.ke/bitstream/handle/11295/34641/CTA_FARA_Agri_Innovations_Book_whole_book_+2010.pdf?sequence=1#page=204
Keywords
Cane Growers Association, Ruembe Cane Growers Association, Tanzania Sugarcane Growers Association, Tanzanian sugarcane out-growers
Citation
Mwinuka, L. Impact Assessment of Post-harvest Repayment Deducfions on Sugarcane Out-growers’ Profitability: A Case Study of Ruembe Cane Growers Associafion. Agricultural Innovations for Sustainable Development, 196.