Dissertation Submitted in Partial Fulfillment of the Requirements for
the Master’s Degree in Business Administration(Administration
(Corporate Management)Mzumbe) Mzumbe University
This study assessed effects behind the diversification of income generating activities
by rural farmers in their efforts to overcome poverty in Kilombero District in
Morogoro region. The study was undertaken to address four research questions, such
as: (1) What are different sources of income generating activities existing in the
study areas? (2) What are the current economic institutional arrangements of
agricultural production as well as agricultural trade in the study areas? (3) How
agricultural and non-agricultural trades are economically profitable? (4) What are
factors affecting agricultural performance in the study areas?
The study used convenience and judgmental / purposive sampling methods to select
100 respondents including rural farmers and key informant. Data were collected by
using questionnaires, interviews guides as well as Focus Group Discussion (FGD)
methods. Moreover, data collected were analyzed by using descriptive and
descriptive statistics methods(frequencies and percentages) as well as profitability
stastistical analyses was used to measure effects of agricultural and non- agricultural
farmers income particular in the study area.
The obtainable findings showed that rural household farmers earn higher net margin
income from non–agricultural activities than from agricultural activities. For the
purpose of illustrations, net margin income from non- agricultural activities was Tshs
15,000/= per day while for agricultural activities was Tshs 21, 000/= per year. In
addition, the findings showed that both agricultural and non-agricultural activities
had been encountered by some constraints, such as: lack of enough capital; poor
markets; high transportation cost; lack of reliable market; presence of intensive
market competitions; change of weather conditions; higher price of farming inputs;
insufficient rainfalls; flooding; poor extension services as well as farming skills.
Therefore, in view of the above findings, this study recommended that there should
be provision of subsidies on farming equipments, extension services, trainings on
better farming practices. If these challenges were effectively addressed, the rural
household farmers would improve their agricultural activities.