Abstract
Tanzania is among countries that value the sugarcane sector as one of the potential crops for poverty alleviation. The sector provides direct employment to about 14,000 people, and it is an outlet for the produce of over 30,000 farming households (Nkonya & Barreiro Hurle, 2012). Likewise, it provides direct earnings and savings amounting to about US$28m annually (Sugar Board of Tanzania (SBT), 2007). However, sugarcane out-growers in Tanzania have been getting low prices relative to unit costs (Matango, 2006). This has generated substantial debate about the need and level of government support. Like other developing countries, contract farming (CF) has been used as one of the strategies to improve the performance of smallholders farmers in sugarcane production in Tanzania. The importance of contract farming in improving performance, and hence welfare, has been recognized in recent literature (World Bank, 2011; Minot, 2011; Oya, 2012; Prowse, 2012). The assumption behind contract farming lies on its ability to provide technical assistance and markets for inputs and outputs, hence enhance productivity and improve earnings. However, some authors have indicated that contract arrangements may cause
Recommended Citation
Nsindagi, Thobias and K. Sesabo, Jennifer
(2018)
"Profit Efficiency and Smallholder Sugarcane Out-Growers Under Contract Farming in Tanzania: Does Location Matter?,"
Journal of Humanities and Social Sciences: Vol. 7
:
No.
2
, Article 2.
Available at: https://doi.org/10.56279/jhss.v7.i2.1