Dissertation of Agricultural and Applied Economics
Smallholder farmers lack knowledge on the amount of income lost from improper grain
management after harvest thus they make uninformed decisions on the storage technique
to use. This study aimed at assessing the economics of grain storage techniques in Kilosa
district in Tanzania. Specifically, the study aimed at performing a cost benefit analysis of
grain storage techniques, to determine farmers’ perceptions on the effectiveness of grain
storage techniques and to establish determinants of farmers’ choices of grain storage
techniques in the study area. A random sample of 153 farmers was drawn from farmers in
Changarawe and Ilakala villages. The Net Present Value (NPV) and Cost Benefit Ratio
(CBR) results from a cost benefit analysis of grain storage techniques suggest that it is
more profitable to invest in the modern hermetic techniques known as Purdue Improved
Crop Storage Bags (PICS) and metal silos than investing in traditional granaries and
polypropylene bags. Likert scale and principal component analysis were used to deduce
farmers’ perceptions on effectiveness of techniques. Farmers perceived hermetic modern
techniques as the most effective in reduction of post-harvest crop losses. The Multinomial
logistic regression was used to establish determinants of farmers’ choices of storage
techniques where age was positive and significant for the choice of traditional granary
over metal silo at 10% (P<0.1), expected price after storage was significant and negative
for traditional granary and polypropylene bags over metal silo at 5% (P<0.05) and 10%
(P<0.1) respectively. Education level of household head, investment costs, number of
crops cultivated and percentage of crop stored for sell were significant and positive for the
choice of polypropylene bags and PICS over metal silo at 1% (P<0.01) and 10%(P<0.1)
respectively. The study concluded that hermetic techniques are not only feasible
investments but also more effective in reduction of grain loss. The study recommends that
farmers should invest in the feasible techniques while been financially supported to
purchase effective grain loss reduction storage techniques for food security.