EFFECT OF CONTRACT FARMING ON SMALLHOLDER FARMERS' GREEN LEAF TEA PRODUCTION IN TANZANIA

Abstract

This paper investigates the impact of contract farming on green leaf tea output among Tanzanian smallholder farmers. Data from 393 growers from Mbeya and Njombe regions were collected in a cross-sectional survey and analysed descriptively using IBM Statistics Version 26. A multiple linear regression model was used to test the null hypothesis. The findings show that contract farming engagement (β=140.102; P=0.058) positively impact production. Moreover, household size (β=2.268; P=0.903) and gender (β=294.978; P=0.000) positively impact green leaf tea production. Besides, age (β=-2.719), education (β=-3171.868), and farm size (β=-20.866) all negatively impact production, but education only was statistically significant at P=0.002. We conclude that, contract farming has a favourable impact on green leaf tea production and suggests recognising its potential for farmers’ growth. Besides, its nuanced importance and borderline P value (0.058) prompts further research on contract design, capacity-building, and market dynamics. Additionally, this paper highlights nuanced effects of farmer attributes. While household size and gender positively influences production, age, education, and larger farms negatively impact it. A comprehensive approach to tea production optimization, considering age-appropriate practices, education-specific interventions, and efficient farm management, is crucial. Further investigation into the combined effects of age, education, and gender is suggested for holistic insights.