Economic analysis of the pyrethrum industry in Tanzania: the case of Njombe district

Agricultural product production in Tanzania has been facing deep seated problems beginning the late 1960s and early 1970s. In effect, output production of the export crops had cont inued to decline throughout t he 1 970s Various factors have 1980s. been pointed out and i n various t o have contributed to the decline. These range studies from price to non price factors. This study has attempted to 1 ook i nt o the factors which have cont ri but ed to t he decline in pyrethrum output production in Njombe district with special emphasis on smallholder producers who are the main producers of the crop. The study is organised into five chapters. The f i rst chapter gives requi rement pract i ces t he the for are backg round crop present ed t o and t he t he fol 1 owed study. mai n a by Ecologi cal farm husbandry di scussi on on producer and world market price trends. The chapter observes that, 98 % of the crude extract and 70 % of the dry marc produced at the Mafinga plant i s export ed. Better prices for these products were received after the 1985/86 crop season both in the export and the domest i c market. increased at 1 ocal However, a higher currency terms. the export rate than the Devaluation of market prices domestic market the local i n currencyincrease in was more responsible for this than the actual export pri ces. due This was policy government to a of export promotion. Chapter two is all about literature review. Generally it is concluded in the chapter that, although price can be for agricultural the main machinery which account output production trends, at t ent i on need also to be paid to non price which factors affect pyret h rum smal1 hoider t he output production in Njombe district. Chapter three methodology used i n The chapter t he and area shows that, gross margin, the chi-square and descriptive statistics, the multiple study. the st udy t he descri bes regression models have been used dat a i n analysi s. In chapter d i scussed. f ou r, Bas i ng study on findings object i ves, study t he are presented it and i s identified that, the factors which are related and account the observed district include for pyrethrum poor out put crop produced husbandry i n Njombe pract i ces, unavai1abi1ity of some of the essential rural agricultural development i nf rast ruct u re. unfavourable competition crops grown in the area. of The ot her factor pyrethrum with i s other the major