A Comparative Economic Analysis of Tobacco and Groundnut Farming in Urambo District, Tabora Region, Tanzania

Abstract

This study provides a comparative economic analysis for tobacco and groundnut farming systems in Urambo. The study used structured questionnaire and interviews. A Random sampling procedure was used to obtain a sample size of 121 respondents. 60 respondents were tobacco farmers and 61 groundnut farmers. 2007/2008 cropping season survey data on 121 randomly selected smallholder farmers was also used. Results revealed that a gross margin per acre for groundnut was lower than that of tobacco by 569 231.90 TZS equivalent to $ 497.62. However, there was no significance difference in profitability yielded by the two farming. A comparison of household income contribution by tobacco and groundnut enterprises gave a significance difference in terms of income generated by the two crops. The study concluded that tobacco farming activity was more profitable enterprise than groundnut farming.