Performance of cotton smallholder farmers under contract farming in Bariadi district

Agriculture sustains the livelihoods of about 80% of Tanzanian households. Cotton is amongst the two most important export cash crops in Tanzania and the first for the Western cotton producing zone. Although Tanzania’s cotton output has increased, average cotton yields in the country reported to be only 760 kg /ha though yields of about 1200 kg/ha can be realized. The objective of this study was to measure the performance of cotton small holder farmers. Technical factors that affect efficiency and the level of profit attained by smallholder cotton farmers were used as the measure of farmers’ performance. A multistage sampling procedure was employed to select 120 respondents from Bariadi district. Descriptive statistics, a stochastic frontier model and GM analysis were employed. The study established that contract farming enhanced performance of cotton farmers. The means TE were 73% and 57% for contract and non-contract smallholder cotton farmers respectively. The inefficiency model revealed that TE among farmers was positively influenced by education, distance to the market, extension services, information and credit access while negatively influenced by age, sex and years of farming. The mean GM for contract farmers was higher than that of non-contract farmers. On average contract farmers achieved a GM of 220099 TZS while non-contract farmers achieved a GM of 113796 TZS Per acre. The study recommended the need for increased provision of quality extension services, training, developing roads, market infrastructure, and provision of affordable credit to improve production efficiency and hence profit of smallholder cotton farmers.

AERC