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Contract Farming Practices and Economic Sustainability in Pyrethrum Farming

Author

Listed:
  • Matonya Imani Stanley

    (PhD. The University of Dodoma, P.O.Box 41218 Iyumbu, Dodoma, Tanzania)

  • Mishili Fulgence J.

    (Senior Lecturer, Sokoine University of Agriculture, Morogoro, Tanzania)

  • Mwinuka Lutengano

    (Senior Lecturer, The University of Dodoma, P.O.Box 41218 Iyumbu, Dodoma, Tanzania)

Abstract

Contract farming is increasingly promoted as a means to enhance agricultural productivity and improve farmers’ livelihoods, particularly for small and medium-scale producers. However, the extent to which existing contract farming practices influence the economic sustainability of pyrethrum farming remains underexplored in Tanzania. This study investigates how contractual arrangements affect the sustainability of pyrethrum farming with a focus on key practices of contract farming. A cross-sectional survey design was employed, targeting 179 randomly selected small- and medium-scale farmers engaged in contract farming. Data were collected using structured questionnaires and analysed through descriptive statistics, regression models, and ANOVA to evaluate the relationship between contract farming practices and economic sustainability. The findings reveal that stable pricing (95.0%), access to extension services (98.9%), and assured market access (99.4%) significantly contribute to economic sustainability, followed by other factors such as stable pricing, extension services, equity in contracts, and technology adoption with B = 12.79, p

Suggested Citation

  • Matonya Imani Stanley & Mishili Fulgence J. & Mwinuka Lutengano, 2025. "Contract Farming Practices and Economic Sustainability in Pyrethrum Farming," Management Theory and Studies for Rural Business and Infrastructure Development, Sciendo, vol. 47(2), pages 293-303.
    • Handle: RePEc:vrs:mtrbid:v:47:y:2025:i:2:p:293-303:n:1011
    DOI: 10.15544/mts.2025.23
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    Keywords

    Contract farming; economic sustainability; extension services; pyrethrum farming; smallholder farmers; Tanzania;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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