Potential Implications of Production and Market Risks on Potato Farming Enterprise among Smallholder Farmers in Tanzania

Despite the risks that potato smallholder farmers face that are thought to affect the profitability and viability of the enterprise, little is known on the implications of the production and market risks on potato farming enterprise in Tanzania. Therefore, this study aims at determining the effects of production and market risks on potato farming enterprise among smallholder farmers in the study area. Therefore, this study uses cross sectional data collected from 384 potato smallholder farmers in 2019, to first the likelihood of the selected production and market risks affect potato farming enterprise and how they affect the potato farm income among smallholder farmers. Data is analysed by use of descriptive statistics and, a multiple regression model is used to determine the effect of the selected production and market risks on potato farming enterprise. Empirical results from multiple regression model reveal that, climate risks low rainfall and frost bite and market risks price volatility have a positive and significant effect on potato farming enterprise among smallholder farmers in Tanzania. The findings of this paper have several policy implications. First, potato smallholder farmers to invest hire irrigation facilities especially during low rainfall and frost bites incidences so that they able to take advantages of the low supply of potato in the market hence fetching higher potato market prices. Second, potato smallholder farmers to observe price movement which follows a pattern of being high before the harvest, dropping at harvest time and rising again towards the end of the season. This information, could help potato smallholder farmers to plan when to plant and harvest potatoes and be able to have potatoes ready to sell when prices are good. Third, the government should come up with policies that help potato smallholder farmers to develop resilience mechanisms to manage potato price volatility. The polices should focus on developing Information Communications Technologies ICT related platforms such as M Kilimo with the purpose of improving the content and speed of disseminating market information such as potato price volatility. Semeni Ngozi | Patience Mshenga | Isaac Maina Kariuki "Potential Implications of Production and Market Risks on Potato Farming Enterprise among Smallholder Farmers in Tanzania" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd46378.pdf Paper URL : https://www.ijtsrd.com/engineering/agricultural-engineering/46378/potential-implications-of-production-and-market-risks-on-potato-farming-enterprise-among-smallholder-farmers-in-tanzania/semeni-ngozi