Analysis of Maize Profitability among Smallholder Farmers in Mbinga District, Tanzania

Abstract

This cross-sectional study analyzed the profitability of maize production among smallholder farmers in Mbinga District, Ruvuma, Tanzania. A multistage sampling procedure was applied to select 120 smallholder farmers. Data was collected by using semi-structured questionnaires and then analyzed by using descriptive statistics and farm budgeting technique. The results reveal that Gross Margin for maize enterprise was 1,182,650.79 TZS per hectare. This implies that maize farming is a profitable enterprise in the study area. The study recommends that the government should promote financing mechanisms to facilitate conducive environment for investment in the subsector. More, it is recommended that the government should manage the inputs subsidy provision by using participatory techniques. Further, the government should regulate informal maize markets to protect the welfare of farmers. Moreover, youth, women and people with disabilities should utilise the funds (10% of councils’ budgets) available at the Local Government Authorities to engage in agricultural activities. This will ultimately offer an opportunity to reduce unemployment in such localities.