Examining the Hindrances Faced by Farmers in Achieving Profitability in Tanzanian Agribusiness

Abstract

v ABSTRACT This research examines the hindrances faced by farmers operating within the Tanzanian agribusiness sector, to attain profitability with a case study of Pinda farm in Chemba district Dodoma Region. Guided by the Resource-Based View theory (RBV), the study adopts a descriptive research design with a mixed research approach, integrating both qualitative and quantitative methods. The research involves 150 participants in the population, and a sample size of 60 participants was selected using simple random sampling for farmers and purposive sampling for farm leaders and managers. Data was collected through questionnaire guides and interview questions, while descriptive analysis is applied to quantitative data, and content analysis is used for qualitative data. The outcome highlights that agribusiness profitability faces hindrance from key financial factors. Access to affordable credit is a major concern, as 73.3% of respondents struggle to secure credit at reasonable rates. High production costs, encompassing inputs and labor, also pose a significant obstacle to profitability. Inadequate transportation infrastructure significantly affects farmers' profitability, where 87.5% % of farmers agree it as a challenge towards attaining profitability. Governmental policies and regulations emerge as critical factors influencing profitability for farmers in the region, with 81.3% of respondents expressing concerns. This underscores the necessity for a closer examination of policy challenges and the creation of a more favorable regulatory environment for agribusiness in Pinda Farm. Recommendations include fostering collaboration between farmers and financial institutions such as banks (Access Microfinance Bank (ACB)), tailoring financial credit options to meet farmers' needs, supporting agribusiness education and training with educational institutions like Sokoine University of Agriculture (SUA) to offer relevant agribusiness courses and ensure farmers have access to updated knowledge, and revising and streamlining governmental policies and regulations