| dc.description |
Tanzania is the second-largest producer of rice (Oryza sativa) in Eastern, Central,
and Southern Africa after Madagascar. Unfortunately, the sector has been performing poorly due to
many constraints, including poor agricultural practices and climate variability. In addressing the
challenge, the government is making substantial investments to speed the agriculture transformation
into a more modernized, commercial, and highly productive and profitable sector. Our objective
was to apply a Monte Carlo simulation approach to assess the economic feasibility of alternative
rice farming systems operating in Tanzania while considering risk analysis for decision-makers with
different risk preferences to make better management decisions. The rice farming systems in this
study comprise rice farms using traditional practices and those using some or all of the recommended
system of rice intensification (SRI) practices. The overall results show 2% and zero probability of net
cash income (NCI) being negative for partial and full SRI adopters, respectively. Meanwhile, farmers
using local and improved seeds have 66% and 60% probability of NCI being negative, correspondingly.
Rice farms which applied fertilizers in addition to improved seeds have a 21% probability of negative
returns. Additionally, net income for rice farms using local seeds was slightly worthwhile when the
transaction made during the harvesting period compared to farms applied improved varieties due
to a relatively high price for local seeds. These results help to inform policymakers and agencies
promoting food security and eradication of poverty on the benefits of encouraging improved rice
farming practices in the country. Despite climate variability, in Tanzania, it is still possible for rice
farmers to increase food production and income through the application of improved technologies,
particularly SRI management practices, which have shown a promising future. |
|