Economic Efficiency Of Selected Income Generating Activities In Villages Surrounding Magamba Nature Reserve In Lushoto District, Tanga Region

ABSTRACT

Despite that income-generating activities play a vital role on reducing the dependency of local communities on forest resources, in some cases the performance of practised income generating activities has been a challenging issue. This study was conducted to assess economic efficiency of tree nurseries and beekeeping income-generating activities, asses factors affecting the economic efficiency of tree nurseries and beekeeping IGAs, asses its impacts on forest conservation and to asses challenges facing IGAs .Focus Group Discussions (FGDs) and Key Informant Interviews (KIIs) were conducted to gather information from experienced people about the subject matter and semi-structured questionnaire was administered to 77respondents (61 from tree nurseries and 16 from beekeeping activities) from randomly selected households.Data envelope analysis was used to estimate economic efficiency under Variable Return (VRS) to Scale and Constant Return (CRS) to Scale assumption. Torbit model was used to examine factors affecting economic efficiency of practised IGAs. Results for tree nurseries activities show a mean technical efficiency of 62.1 % (CRS Mode), 80.2 % (VRS), allocativeefficiency of 60.4 % (CRS), 95.7 % (VRS), cost efficiency of 38.1 % (CRS) and 76.7 % (VRS). For beekeeping activities results show a mean technical efficiency of 77.6 % (CRS Mode), 86.8 % (VRS), allocativeefficiency of 91.2 % (CRS), 96.1 % (VRS), cost efficiency of 69.8.1 % (CRS) and 83.3.7 % (VRS). Results from censored regression model revealed that, years of experience, number of training attended and extension serviced attended have positive with tree nurseries efficiency while in beekeeping activities, extension visits and number of training are positive significance to efficiency estimates. Practised IGAs have great impact on forest conservation as they have increased conservation activities such as tree planting, forest fire protection, forest patrols and reducedcommunities’ forest dependency in the study area. Several challenges facing both IGAs were identified in both IGAs. ii Based on the study findings, some recommendations have been put forward. Efforts should be done on improving efficiency of tree nurseries and beekeeping activitiesby increasing trainings, extension services and supporting technical equipments to communities. Also factors hindering beekeeping activities in the study area should be alleviated, subsidising IGAs equipments and sensitizing local communities to work in groups.