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Contract farming (CF) is increasingly gaining importance. However, there are some controversies on its impact on the livelihood in agrarian societies. It is alongside this argument that pressed on conducting the present study to ascertain the impact of contract farming to the livelihood of grapevine farmers in Dodoma Municipal, Tanzania. Specifically, the study aimed at examining the main features of grapevine CF, identifying factors that influence small grape farmers' engagement into CF and examining the livelihoods of grape farmers in Dodoma Municipality. Through Cross-sectional design, data were collected from 100 grape farmers and 12 key informants in four representative mitaa by the use of semi-structured interview, physical observation and documentary review. Data were analyzed by Statistical Package for Social Sciences (SPSS) software, whereby cross tabulation, F-test (ANOVA), Chi-Square and Logistic regression were used. The results depict that, grapevine CF featured as informal intermediary partnership in which majority (100%) entered in contract through farmer groups. Although offered guarantee of marketing (100%) and credit facilities (94.3%), the scheme failed to spell clearly the important components of a standard contract. Logistic regression suggested three strongest factors that influence grapevine farmers to engage in CF; farmers' experience in grapevine farming ((odds ratio (OR)) = 31.973), farm size (OR = 18.669) and place of birth (OR = 7.158). F-test results suggest that grapevine CF has a significant positive impact on income, credit access, farm size (P-value = 0.000) and spending on education (P-value = 0.004). While the results suggest that, contract farming has positive livelihood impacts for the grapevine farmers, the sustainability of the contract is not assured due to the existing challenges. The researcher, therefore, proposes developing harmonized framework contract between vi
local government, buyers, cooperatives and grapevine farmers integrating all important components of the legal contract. |
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