Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania
International Journal of Agricultural Economics
Volume 5, Issue 5, September 2020, Pages: 181-186
Received: Aug. 11, 2020; Accepted: Aug. 22, 2020; Published: Sep. 24, 2020
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Author
William George, Department of Economics, University of Dodoma, Dodoma, Tanzania
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Abstract
This research assessed the motivation of farmers to sell sunflower oil and in seed form and its effects on profitability. Data was collected through survey of 194 smallholder farmers in Dodoma region. The gross margin model was used to analyze profitability and was compared using the difference of mean test between households that sell oil and those who sell in seed form. Tobit Regression Model was used to analyze the factors that affect the proportion of sunflower sold as seeds. Results show that, higher variable costs were observed to farmers who processing sunflower; but higher gross margins were observed to farmers who process sunflower. This implied that farmers selling sunflower oil are more profitable than those farmers selling in seed form. Sunflower oil price, amount of sunflower harvested, size of household, farmer groups have significant and positive relationships with the proportion of sunflower sold as seed. The distance to the nearest machine is negatively and significantly associated with the proportion of sunflower sold as seed. Farmers should be encouraged to process sunflower before sale through training and extension. Access to yield-enhancing inputs, marketing or processing in groups, private entrepreneurs set up processing plants closer to farmers, invest mobile processing through improvement of the rural road network are some interventions proposed in this study to help farmers reduce transactions costs of processing.
Keywords
Smallholder Farmers, Processing, Sunflower, Profitability, Markets, Livelihoods
To cite this article
William George, Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania, International Journal of Agricultural Economics. Vol. 5, No. 5, 2020, pp. 181-186. doi: 10.11648/j.ijae.20200505.15
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Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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