Enhancing Productivity, Market Access and Incomes for Small Farming Businesses in Tanzania

Identifying the Contribution of Savings and Credit Facilities

One way to address the problem of market access and inadequate farm income amongst smallholders in developing economies is to establish integrated systems of agricultural production, extension and marketing. Commonly known as contract farming, these systems have the potential to enable smallholders to respond to global market conditions. In a national perspective it is also considered as a strategy for improving the livelihoods of smallholders, hence reducing poverty while linking agriculture to industry at sector level. POLICOFA addresses the question of contract farming by combining traditional econometric analysis with a value chain approach to the study of the dynamics within particular agro-industries.

The overall objectives of the project are:

  • To understand the role and importance of contracts for small-scale farming in selected crops (sugarcane, tobacco, sunflower and cotton)
  • To understand how formal credit for agriculture matters in contract farming arrangement.

The project is funded by the Consultative Research Committee for Development Research (FFU) under the ‘Tanzania – Denmark Research Cooperation Pilot Programme’ and runs from April 2011 to March 2014.

The project is led by the Department of Economics at Mzumbe University, Tanzania, in collaboration with the Department of Geography and Geology and the Institute of Food and Resource Economics, both at the University of Copenhagen, Denmark.