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Article Number - D3B949F65739


Vol.9(9), pp. 250-268 , September 2017
DOI: 10.5897/JDAE2017.0833
ISSN: 2006-9774



Full Length Research Paper

Economic profitability and risk analyses of improved sorghum varieties in Tanzania



Aloyce R. Kaliba
  • Aloyce R. Kaliba
  • Department of Accounting, Finance and Economics, College of Business, P. O. Box 9723, Baton Rouge, Louisiana, USA.
  • Google Scholar
Kizito Mazvimavi
  • Kizito Mazvimavi
  • International Crop Research Institute for Semiarid Tropics, Matopos Research Station, P. O. Box 776, Bulawayo, Zimbabwe.
  • Google Scholar
Ghirmay S. Ghebreyesus
  • Ghirmay S. Ghebreyesus
  • Department of Accounting, Finance and Economics, College of Business, P. O. Box 9723, Baton Rouge, Louisiana, USA.
  • Google Scholar







 Received: 23 March 2017  Accepted: 16 June 2017  Published: 30 September 2017

Copyright © 2017 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


This study uses survey data collected in 2012/2013 farming season to determine the net-returns and utility-efficient farm management practices for improved sorghum varieties adopted by small-scale farmers in Tanzania. The reference farm management practice was using JEMBE (handhole) for land cultivation and growing local varieties (landraces). Other farm management practices included using ox-plough for land cultivation with or without applying manure for soil amendment, and using JEMBE for land cultivation with or without applying manure. Improved sorghum Varieties included Tegemeo, Pato, Macia, Wahi, Hakika, Mtama-1, and Sila. We used simulation and bootstrapping to estimate yield distributions and net returns and stochastic efficiency with respect to a function to complement first and second degree stochastic dominance analyses to determine varieties and farm management practice that reduce production and price risk. Under profit maximization and risk reduction assumptions, main results show that Macia and Mtama-1 varieties have high mean yield and low yield variability. Even under low inputs and extreme risk averse farmers, Macia and Mtama-1 were superior choices. Value addition activities increased price offered to farmers, which also reduced price risk.

 

Key words: Economic profitability, risk analysis, sorghum, stochastic dominance, Tanzania.

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APA Kaliba, A. R., Mazvimavi, K., & Ghebreyesus, G. S. (2017). Economic profitability and risk analyses of improved sorghum varieties in Tanzania. Journal of Development and Agricultural Economics, 9(9), 250-268.
Chicago Aloyce R. Kaliba, Kizito Mazvimavi and Ghirmay S. Ghebreyesus. "Economic profitability and risk analyses of improved sorghum varieties in Tanzania." Journal of Development and Agricultural Economics 9, no. 9 (2017): 250-268.
MLA Aloyce R. Kaliba, Kizito Mazvimavi and Ghirmay S. Ghebreyesus. "Economic profitability and risk analyses of improved sorghum varieties in Tanzania." Journal of Development and Agricultural Economics 9.9 (2017): 250-268.
   
DOI 10.5897/JDAE2017.0833
URL http://www.academicjournals.org/journal/JDAE/article-abstract/D3B949F65739

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