Economic Assessment of Tea Smallholder Farmers under Contract Farming in Rungwe District, Tanzania

抄録

In Tanzania, tea is considered as one of the most exported crops. The main stakeholders of the tea industry are smallholder farmers and estates. Smallholder tea farmers are required to engage in contract farming, as stipulated in the Tea Regulation of 2010. This study attempted to assess contract farming and its impact to production and income of tea smallholder farmers in Rungwe District, Tanzania. A total of 48 randomly selected smallholder farmers were interviewed using a semi-structured questionnaire in September 2020 and October 2021. Agribusiness company officials, government officials and extension officers were also interviewed to clarify the condition and issues of the contract farming scheme. Descriptive analysis and cost and return analysis were utilized. Results show that yield, income, and profitability increased from 2016-2019. These can be attributed to steady supply of inputs, easy access to technical assistance, and early adoption of new technology under contract farming scheme. Moreover, the price of smallholder green leaf has improved, with farmers receiving a second payment hence improve their overall revenue returns.