Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania

William George

doi:doi:10.11648/j.ijae.20200505.15

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Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania

William George

Published in International Journal of Agricultural Economics (Volume 5, Issue 5)

Received: 11 August 2020 Accepted: 22 August 2020 Published: 24 September 2020

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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.

Published in	International Journal of Agricultural Economics (Volume 5, Issue 5)
DOI	10.11648/j.ijae.20200505.15
Page(s)	181-186
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Smallholder Farmers, Processing, Sunflower, Profitability, Markets, Livelihoods

References

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APA Style

William George. (2020). Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania. International Journal of Agricultural Economics, 5(5), 181-186. https://doi.org/10.11648/j.ijae.20200505.15

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ACS Style

William George. Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania. Int. J. Agric. Econ. 2020, 5(5), 181-186. doi: 10.11648/j.ijae.20200505.15

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AMA Style

William George. Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania. Int J Agric Econ. 2020;5(5):181-186. doi: 10.11648/j.ijae.20200505.15

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@article{10.11648/j.ijae.20200505.15,
  author = {William George},
  title = {Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania},
  journal = {International Journal of Agricultural Economics},
  volume = {5},
  number = {5},
  pages = {181-186},
  doi = {10.11648/j.ijae.20200505.15},
  url = {https://doi.org/10.11648/j.ijae.20200505.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20200505.15},
  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.},
 year = {2020}
}

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TY  - JOUR
T1  - Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania
AU  - William George
Y1  - 2020/09/24
PY  - 2020
N1  - https://doi.org/10.11648/j.ijae.20200505.15
DO  - 10.11648/j.ijae.20200505.15
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 181
EP  - 186
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20200505.15
AB  - 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.
VL  - 5
IS  - 5
ER  -

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Author Information

William George

Department of Economics, University of Dodoma, Dodoma, Tanzania

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Plain Text BibTeX RIS

APA Style

William George. (2020). Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania. International Journal of Agricultural Economics, 5(5), 181-186. https://doi.org/10.11648/j.ijae.20200505.15

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ACS Style

William George. Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania. Int. J. Agric. Econ. 2020, 5(5), 181-186. doi: 10.11648/j.ijae.20200505.15

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AMA Style

William George. Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania. Int J Agric Econ. 2020;5(5):181-186. doi: 10.11648/j.ijae.20200505.15

Copy | Download

@article{10.11648/j.ijae.20200505.15,
  author = {William George},
  title = {Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania},
  journal = {International Journal of Agricultural Economics},
  volume = {5},
  number = {5},
  pages = {181-186},
  doi = {10.11648/j.ijae.20200505.15},
  url = {https://doi.org/10.11648/j.ijae.20200505.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20200505.15},
  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.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Cost and Return of Selling Processed Sunflower Versus Unprocessed Sunflower by Smallholder Farmers in Dodoma Region, Tanzania
AU  - William George
Y1  - 2020/09/24
PY  - 2020
N1  - https://doi.org/10.11648/j.ijae.20200505.15
DO  - 10.11648/j.ijae.20200505.15
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 181
EP  - 186
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20200505.15
AB  - 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.
VL  - 5
IS  - 5
ER  -

Copy | Download