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The groundnut sub-sector in Tanzania is characterized by low productivity compared to
the maize sub-sector. Among other things, the low productivity is due to the use of low-
quality seeds. This study is therefore attempted to compare the profit of groundnuts and
maize seeds value chains in semi-arid agro-ecologies of central Tanzania. Specifically,
the study mapped the seed value chain of groundnut and maize sub-sectors; compared
the profitability of groundnut and maize seed farmers as well as seed companies
operating under an out-grower scheme model by using a gross margin approach. Further,
it assessed the factors influencing investment in the two seed sub-sectors using a binary
logistic regression model. Generally, the study covered 291 respondents where 120 were
groundnut seed farmers, 120 were maize seed farmers, 17 agro-dealers, 19 extension
officers, 4 research institutes, 5 seed companies and 4 regulatory organizations. Both
qualitative and quantitative methods of data analysis were employed. Using gross
margin analysis, the study reveals that, groundnut seed farmers realize a high gross
margin i.e a difference of 914 953 TZS compared to maize seed farmers. Also, seed
companies operating under the out-grower model scheme realize higher gross margins
than individual seed farmers. Results from binary logistic regression revealed that level
of education, household size, frequency of extension services, and training has positive
and significantly influence investment in the groundnut and maize seed value chain. For
the improvement of the groundnut and maize seed value chain in the study area, the
study recommends that the government should come up with policies aimed at
subsidizing the cost of farm inputs such as fertilizer and pesticides to lower the cost of
production. |
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