Economic Analysis of the Production of Root-vegetables by Small-Scale Farmers in Mbulu District

Abstract

The production of vegetables supports farmer’s food security and income generation. Thispaper seeks to analyse the production of root-vegetables by small-scale farmers in MbuluDistrict, Tanzania. The paper applied a cross-section design and a two-stage sampling toobtain 120 farmers producing either carrots or Irish potatoes. Results from the CobbDouglas production function showed that farm area and inputs cost were significantfactors that influenced production of carrots; while farm area, labour, inputs cost, andequipment cost were significant factors that influenced the production of potatoes.Furthermore, results from multiple regression showed that income of root-vegetablesgrowers decreased significantly with the production of potatoes compared to carrots; butincreased significantly with farm area. The findings highlight the need for the Ministryresponsible for Agriculture to offer agricultural extension services regarding optimalproduction of root-vegetables for sustainable increased returns to scale in the long-run.JEL Classification: D24, C30