2019 Volume 10 Issue 2 Pages 80-85
The main objective of this paper is to investigate why the sharp decline of sunflower seed production had occurred just after the starting of modern varieties promotion policy in Tanzania. Specifically, the study aims to (1) examine the changes in production of sunflower seed crop and that of its substitutable crop (sweet potato) for ten years, (2) determine the differences in profitability between sunflower production with modern varieties and production of related crops (sunflower seed with traditional varieties, and sweet potato), (3) examine the effect of relative price changes, (4) clarify other related factors such as famers’ characteristics in the adoption of new technologies, contract farming, and limited capacities of oil processing sectors. The field study was conducted in March and September 2018, selecting 270 farmers from three villages in Ikungi District. Based on the data obtained in the 2018 field study, profitability of the three types of cultivation was calculated. The result shows that sweet potato farmers received the highest economic return in terms of gross profit (545.7 TZS/ha) than sunflower farmers with modern seed varieties (397.0 TZS/ha). Sunflower farmers using traditional varieties received the lowest (273.7 TZS/ha). Furthermore, it was confirmed that changes in the farm gate prices over time had influenced profitability of three types of farming. At the starting time sunflower production with modern technologies had its advantage against sweet potato production. Farmers’ crop selection is mostly rational but institutional factors like contract farming and limited capacity of processing sector were the barrier for the change. Also, it was suggested that farmers need more education and training for more rational crop selection. Finally, from this case policy makers have to know that if the conditions are not well fulfilled the promotion of new technology may not have the desired result.