Economic Analysis Of Improved Banana Cultivars Production In Tanzania. A Case Study Of Rungwe, Mvomero And Mkuranga Districts

ABSTRACT

A study was carried out to assess the profitability of improved banana cultivars in Rungwe, Mvomero and Mkuranga districts. Specifically, the study aimed at comparing benefits of improved versus non improved banana cultivars production, determining the contribution of banana enterprise to total household income, assessing the factors that influence banana household income, assessing the changes in gender roles in improved banana farming system and suggesting the system of distributing new cultivars and clean planting materials to farmers. Data for the study were collected from a sample of 120 farmers; purposive sampling method was used to select the study villages. Cost Benefit and Regression analyses were employed in this study. Study results showed that, NPV was positive and higher on improved cultivar in comparison to non improved cultivars by Tsh 4 429 504 , CB ratio was greater than one though higher in improved cultivars by 3.3 , and IRR was greater than the opportunity cost of capital in both cultivars 16% per acre at 12% discount factor. Regression results in the three districts showed that age, education, gender, farm size, household size and number of extension visits per household were positively related to banana income, while, marital status was inversely related. However, there were no significant differences in contribution of banana income among the three districts. Gender role and decision making results indicate that no changes in these roles were observed among the three districts. To improve distribution of clean planting materials, it is suggested that, contact farmers should provide these cultivars to other farmers and establishment of more demonstration plots as sources of planting materials. Based on profitability of banana technologies, the study recommends the adoption of improved banana technology and the replication of this innovation to other areas with similar characteristics, as an approach towards poverty reduction.