Boosting Potato Enterprise Performance among Smallholder Farmers in Tanzania through Risks Management

Smallholder potato farmers in Tanzania use different on farm risk management strategies to boost potato enterprise performance. However, knowledge on how on farm risk management strategies boost potato enterprise performance remains undocumented and scarce. Therefore, this study uses cross sectional data collected from 384 potato smallholder farmers in 2019, to first identify various on farm risk management strategies and then to determine the effect of risk management strategies on potato enterprise performance. Data is analysed by use of content analysis and descriptive statistics. Further, a multiple regression model is used to determine the effect of risk management strategies' attributes on potato enterprise performance. The findings of content analysis and descriptive statistics indicate that potato smallholder farmers use various strategies to boost potato enterprise performance. The strategies include application of chemicals, irrigation, furrowing, increased frequency of fungicide application, field sanitation practices, searching for markets, transporting potatoes direct to the markets, use of market information and delaying harvesting of potatoes by leaving them in the soil. Empirical results from multiple regression model reveal that, frequent use, perceived effectiveness, costs and the number of on farm risk management strategies boost potato enterprise performance in Tanzania. The findings of this paper have several policy implications. First, more and effective risk management strategies such as the use of irrigation system, fungicides, accessing marketing information should be employed to boost potato enterprise performance in Tanzania. Second, since, the cost of risk management strategies had improved potato enterprise performance among smallholder farmers in Tanzania. However, the cost of employing risk management strategies is higher than the benefit potato smallholders get as a result of the strategies employed. The high costs had resulted from employing risk management strategies such as the purchase of irrigation systems during low rainfall and frost bites. Hence, potato smallholder farmers through public private partnerships between Lusitu Agribusiness Group and Tanzania Agricultural Development Bank TADB should establish a village hiring irrigation to dramatically reduce the costs associated with risk management strategies such as irrigation. Semeni Ngozi | Patience Mshenga | Isaac Maina Kariuki | Aloyce Shaban Hepelwa "Boosting Potato Enterprise Performance among Smallholder Farmers in Tanzania through Risks Management" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-1 , December 2020, URL: https://www.ijtsrd.com/papers/ijtsrd38189.pdf Paper URL : https://www.ijtsrd.com/management/risk-management/38189/boosting-potato-enterprise-performance-among-smallholder-farmers-in-tanzania-through-risks-management/semeni-ngozi