Comprehending smallholder maize enterprises` profitability with the current maize marketing system in Zimbabwe: A case of Mazowe district

Abstract

Maize enterprise profitability is essential for sustainable maize production in smallholder farming. In Zimbabwe a lot of factors including several policy measures implemented in the past are believed to be influencing current maize profitability trends. Literature to confirm some of the crucial factors is limited especially in the smallholder farming sector. In this study we analyze profitability of smallholder maize farmers in Mazowe District of Zimbabwe. We estimate maize enterprise profitability using gross margin analysis, factors driving profitability using linear regression analysis and the influence of tobacco farming adoption on maize enterprise profitability using propensity score matching. We relied on both primary and secondary data from the study area. Results did not show robust outcomes on maize enterprises profitability. Maize profitability was found to be influenced positively by age of household head and selling produce to private buyers and negatively by fertilizer, chemical, and transport costs. Tobacco farming adoption was found to have a positive influence on maize profitability. Based on the results the study recommends the government through its various programs targeting agricultural development and food security to focus on smallholder maize production and marketing with the aim of improving its profitability.