Impact of Transaction Costs on Smallholder Farmers of Potatoes Production in Tanzania: A Case Study of Kigamboni Council.

Onga, Shaaban S. (2023) Impact of Transaction Costs on Smallholder Farmers of Potatoes Production in Tanzania: A Case Study of Kigamboni Council. Masters thesis, The Open University of Tanzania.

PDF - Submitted Version Available under License Creative Commons Attribution. Download (1MB)

Abstract

The study aimed to assess the impact of transaction costs on smallholder farmers involved in potato production in Tanzania: A case study of Kigamboni. The study used cross sectional research. The study applied the purposive sampling technique to select a sample size of 96 smallholder farmers. A descriptive analysis and inferential analysis were employed in the data analysis. Findings showed that input costs, and risk associated have statistical negative significant, while financial support has a statistical positive significant. Also, findings showed that input costs such as the amount used to hire land, buy fertilizer, buy seeds, hire labour, pay for transportation of inputs, and pay for transportation of harvests affect potato production. Also, findings show that unaffordable loan collateral, a high interest rate from the lender, a short loan repayment period, and short total days spent processing credit affect smallholder farmers in potato production. Moreover, the findings reveal that rainfall variations, diseases, accidental fire, unstable prices in the market, and long harvesting times are the most prevalent risks in potato production. The study suggests that smallholder farmers could benefit from government help in the form of input cost reduction subsidies. Programmes for crop insurance must also be implemented in order to shield farmers from the hazards involved in producing potatoes. Additionally, granting them financing through alliances with banks, non�governmental organisations, and government initiatives can assist them in purchasing inputs and paying for additional production expenses. Keywords: Smallholder Farmers, Transaction Costs, Potatoes, Production.

Actions (login required)

View Item