Abstract:
Sugarcane Contract Farming (CF) has been mentioned to be an important practice and an engine for
improving livelihoods among farmers in Africa. However, in Tanzania there has been limited research
on explaining the impact of sugarcane contract farming arrangements on smallholder farmers’
livelihood outcomes. The purpose of this paper was to determine the impact of sugarcane CF
arrangements on smallholder farmers’ livelihood outcomes. The specific objectives of the study (from
which this paper is based) were to: (i) identify CF arrangements experienced by smallholder farmers, (ii)
measure levels of livelihood outcomes, and (iii) determine the impact of CF arrangements on
smallholder farmers’ livelihood outcomes. Data were collected from 300 sugarcane outgrowers in
February and March 2014 in Kilombero Valley using a structured questionnaire and an interview guide
used for interviews with 14 key informants. Data were analysed descriptively and inferentially whereby
the multiple (linear) regression model was used to determine the impact of some CF arrangement’
variables on farmers’ livelihood outcomes. The findings indicated that CF arrangements, variables such
as price negotiations made by farmers’ association leaders, sugarcane harvesting arrangements, loans
or goods by farmers and the payments follow up made by farmers’ association leaders for the sugarcane
sold; expose smallholder farmers to higher risks of low livelihood outcomes. It is recommended that the
Sugar Board of Tanzania and farmers’ associations should make sure that the few CF arrangements
which negatively affected farmers’ livelihood outcomes are addressed timely. It is recommended that
contractual supports provided by sugarcane farmers’ associations should increase farmers’ association
leaders’ ability to negotiate for better prices of their sugarcane outputs.
