Potentials of Commercialization of Smallholder Farming in Kigoma Region, Tanzania: Gross Profit Margin Analysis of selected Crops in Selected Districts, Kigoma Region

Commercialization of smallholder farming (SF) is of paramount importance for African rural economic transformation. This study was undertaken to reveal the less known potentials of commercialization of SF in Kigoma Region. The Gross Profit Margin Analysis of beans, maize and cassava in Kasulu, Kakonko and Kibondo districts from Kigoma Region was performed. Descriptive cross-sectional research design was employed and both primary and secondary data were utilized. The target population of 10,708 smallholder farmers (SFs) resulted to the sample size of 400 SFs (at 95% confidence level and 5% confidence interval (0.05 sampling error)). The study revealed majority of households were male-headed households, 57% of the households had the household size ranging from 6 to 10 members while 96.5% of all respondent’s own land. Through the overall mean yields, the study also revealed Kibondo and Kasulu as capable districts of producing both maize and beans while cassava was highly produced in Kakonko district. The study further revealed majority of SFs were non-users of improved seeds, fertilizers and pesticides. The Gross Profit Margin Analyses of all three crops revealed high profitability under ideal farming conditions compared the prevailing farmers’ traditional practices. The study concludes all opportunities in the ideal farming conditions as the major potentials for commercialization of SF. The study urges SFs, business community and the government to put deliberate efforts towards investing on the agriculture sector to enable ideal farming conditions to majority of farmers, hence enhancing agricultural productivity and profitability among SFs in Kigoma region.

Keywords: Commercialization; Smallholder Farming and Gross-Profit-Margin-Analysis