Economic Analysis Of Irish Potato Value Chain In Njombe Urban And Wanging’ombe Districts, Tanzania

ABSTRACT

This study analyzed Irish potato value chains so as to identify potential areas for interventions towards improving income for the various actors involved in the chain in Njombe Urban and Wanging’ombe districts. Data were collected from 202 Irish potato value chains actors using individual interview and focused group discussions (FGD). Sub sector mapping, gross margin analysis and regression analysis were used in the study. Subsector mapping analysis was used to map Irish potato value chains in Njombe urban and Wanging’ombe districts. Gross margin along all Irish potato actors involved in the chain were computed. Results indicate variations in gross margins with the highest gross margin of Tshs. 2939 per kg obtained by local processors while the traders were receiving the average gross margin of Tshs. 421 per kg, farmers in Njombe urban and Wanging’ombe districts were getting a margin of Tshs. 51 and 22 per kg, which was the lowest gross margin compared to the other actors in the chain. The results show that the common ruralurban linkages were the flow of labour, fertilizer, output and financial services in the study area. Regression analysis model was used to analyze the determinants of Irish potato farmers’ gross margin. The findings show that only 34% of the variation in Irish potato gross margin was due to the independent variables included in the model; gender, farm size, age, farm location, Income and irrigation were the main determinants of Irish potato farmers’ gross margin. There were number of challenges that hinder the development of Irish potato value chain, it is recommended that government and non-government organization, researchers and small scale farmers should address these challenges so as to establish a profitable Irish potato value chain.