Kidane, Asmerom W.; Tingum, Ernest T.
Description:
The study presented here considers the relative efficiency of planting tobacco and maize in the
tobacco-producing Tabora region of Tanzania. The study used a 2013 survey that was conducted
among smallholder farmers in the Tabora region. The aim was to investigate whether farmers are better
off planting tobacco or maize. The paper briefly reviews the importance of agriculture in general and
tobacco planting in particular on the Tanzanian economy. The paper then reviews the methodology
used in the analysis, The Frontier Production Function. The findings show relative inefficiency in both
tobacco and maize production. When the two are compared, one finds a statistically significant higher
efficiency in the production of maize compared to tobacco. In other words, maize farmers can produce
the same output utilizing 76.83% of the current input, while the corresponding value for tobacco is 73.89
percent. After generating the efficiency index of each farmer and for each crop, a multiple linear
regression was estimated to identify significant determinants of efficiency. For the production of maize,
five significant explanatory variables were identified (gender, age, education, household size, and farm
size). For tobacco production, five explanatory variables including the variable “feeling sick while
curing tobacco” were significant. In other words, the efficiency equation for maize has significantly
better fit. In general, the efficiency indicators suggest that Tanzanian small scale farmers are more
productive planting maize than tobacco.