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Explore the productivity and profitability of organic vs conventional farming of export crops in Tanzania, analyzing factors such as revenues, costs, and returns at farm level.
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Comparative productivity and profitability of Organic and Conventional Farming of Export Crops in Tanzania G.C. Ashimogoet al
Introduction • Rational for switching to Organic farming • Declining prices of traditional export crops • Declining export volumes • Expanding markets for certified organic products • Premium prices for organic products • Stable prices for organic products
Introduction… • In Tanzania OA has been practiced for a long time • There is need to assess productivity and profitability at OA at farm level
Research questions • How does productivity and profitability compare among farms practicing organic and conventional agriculture? • What micro-and meso-level factors explain the observed phenomena?
Methods • We use crop / enterprise budgets to compare • Revenues • Variable costs • returns • The study focused on • Cotton in Meatu district, Shinyanga region (2006/07) • BioRe Tanzania limited • Cashew in Mkuranga district, Coast region (2005/06) • Premier cashew Industries
Conclusions • The whole farm area of OFs were slightly bigger than CFs but not statistically so. • Ofs were bigger than those of CFs, although not statistically significantly (cashew farms were established some years before organic certification) • OFs had bigger household sizes than CFs but not significantly so. • Adoption of organic practices • Adoption of ‘GAP’ • Relatively more OFs dried and graded their cashew before sale compared to CFs. However, the proportions were not significantly different. • Production volume • OFs harvested significantly more (than twice as much) cashew nuts than CFs. • Incomes • OFs recorded significantly more income from sales of cashew nuts during 2005/06 vs. CFs. • Although not significantly, relatively more CFs weeded their farms at least once per season vs. OFs. • Although not significant, OFs recorded more income from sale of other crops than CFs. However, OFs reported a significantly higher total crop income compared to their CFs counterparts.