Academe Research Journals

Journal of Agricultural Economics and Development

Full Length Research Paper

Profitability Analysis of Wine Grape Farms among irrigated and rain-fed farming systems in Dodoma Region, Tanzania

Natalia Naftali Kalimang`asi*¹, Aida Charles Isinika², Gaspar Peter Mwembezi³

¹Local Government training Institute, P.O. Box 1125, Dodoma, Tanzania;

²Institute of Continuing Education (ICE), Sokoine University of Agriculture, P. O. Box 3000, Chuo Kikuu, Morogoro, Tanzania

³Institute of Rural Development Planning (IRDP), P. O. Box 138, Dodoma, Tanzania.

*Corresponding author. E-mail address: mwaseu@yahoo.com. Tel. 255787577082/+255736577082

Accepted 4 March 2021

Abstract

The study compared profitability between irrigated and rain-fed farmers in Dodoma City and Chamwino District. Multi-stage and random sampling procedures were used to select the study area. A sample of 359 farmers was selected from two strata using a systematic sampling procedure. The data were collected using a structured questionnaire. Farm budgeting techniques and descriptive statistics were used to analyse profit levels. The findings showed that grape farming is a profitable venture in the study area. Farms under irrigation had significantly higher profit levels (return on investment TZS 1.79) compared to those under rain-fed wine grape farming (TZS 1.29). The economic implication is that the average returns for every shilling invested in wine grape production are higher than the prevailing weighted average rates on risk free investment such as treasury bills and bonds, which currently stands at 16.8 – 18.7% in the country. The study, therefore, recommends that any measure that promotes wine grape farming under irrigation is worthwhile to increase smallholder farmer`s income in the Dodoma region.

Keywords: Profitability, Wine Grape, Farm Budgeting technique, smallholder