Factors Influencing On-Farm Common Bean Profitability: The Case Of Smallholder Bean Farmers In Babati District, Tanzania

ABSTRACT

Legumes are important food and cash crops in developing countries. In Tanzania, more than half the farmers grow several species of grain legumes which include common bean, groundnut, pigeon pea, cowpea, chickpea, peas and soybean. However, productivity of all grain legumes is still low and far below potential and this has impacted on profitability. The aim of this study was to contribute to common bean improved profitability facts for income and food security in Tanzania. The specific objectives were; to measure the common bean on-farm gross margin realized by smallholder farmers, examine the socio-economic factors determining common bean on-farm level gross margin and to determine factors influencing the household common bean supply to the market. Multistage sampling procedure was used to select the respondents from the four divisions in Babati district (Babati, Gorowa, Mbugwe and Bashnet). The first stage involved a purposive selection of two divisions from the four divisions mentioned. The second stage entailed the selection of six wards from the two divisions, using purposive sampling technique; four from Bashnet division and two from Babati division. The fourth stage entailed purposive selection of 9 villages from the six wards basing on bean production dominance. Then the final stage employed systematic random sampling technique to select 200 bean farmers from the nine villages. Primary data was collected from the field using a structured interview schedule method. Secondary data such as national and world common bean production trend; Tanzania common bean export and import were obtained from published literature from Babati district council, Sokoine National Agricultural Library and Egerton University main library. In analysis of data; objective one was analysed using Gross Margin Analysis procedure. Moreover, objective two was analysed using Multiple Regression Analysis approach. Lastly, objective three was analyzed using Logistic Regression method. The study results showed that, at farm level, a gross margin of TZS 133,710.20/= (US$63.67) and TZS 307,283.70/= (US$146.33) for local and improved variety respectively was generated per acre per season. Moreover, age of respondents; gender; yield; selling price (farm-gate price); access to credit; and off-farm income affected the gross margin realized by smallholder farmers. Similarly, age of respondents; gender; family size; education level (years of schooling); farm-gate price; distance to the market; and off-farm income influenced the quantity of bean supplied to the market. This implies that, if this study is positively recognized by bean industry stakeholders, it may significantly contribute as a source of information for improving bean profitability and food security.