Issue

Vol. 7 No. 2 (2018)

Profit Efficiency and Smallholder Sugarcane Out-Growers Under Contract Farming in Tanzania: Does Location Matter?

https://doi.org/10.56279/jhss.v7i2.22
Thobias Nsindagi
Sesabo
Department of Economics Mzumbe University, Tanzania

Corresponding Author(s) : Thobias Nsindagi

tensindagi@mzumbe.ac.tz

Journal of Humanities & Social Science (JHSS), Vol. 7 No. 2 (2018)

Abstract

This paper estimates profit inefficiency for smallholder sugarcane out-growers in Kilombero and Turiani, Tanzania. The main objective is to identify factors that explain the variation in the efficiency of individual out-growers. The analysis utilizes cross-section data collected from 386 smallholder sugarcane out-growers. The results show that smallholder sugarcane out-growers in Kilombero are more efficient, with an average score of 70.1% than those in Turiani, with an average score of 55.4%. Moreover, the results indicate that age, education, non-agricultural assets and part-time participation in sugarcane production are the main drivers of profit efficiency. Thus, strategies for improving sugarcane profitability need to focus on output and input, market accessibility, as well as education to smallholder sugarcane farmers.

Keywords

contract farming smallholder sugarcane farmers profit efficiency stochastic profit frontier Tanzania
Profit Efficiency and Smallholder Sugarcane Out-Growers Under Contract Farming in Tanzania: Does Location Matter?. (2018). Journal of Humanities & Social Science (JHSS), 7(2). https://doi.org/10.56279/jhss.v7i2.22
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Author Biography

Sesabo, Department of Economics Mzumbe University, Tanzania



How to Cite

Profit Efficiency and Smallholder Sugarcane Out-Growers Under Contract Farming in Tanzania: Does Location Matter?. (2018). Journal of Humanities & Social Science (JHSS), 7(2). https://doi.org/10.56279/jhss.v7i2.22
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