Smallholder potato farmers in Tanzania use different on-farm risk management strategies to boost potato enterprise performance. However, knowledge on how on-farm risk management strategies boost potato enterprise performance remains undocumented and scarce. Therefore, this study uses cross-sectional data collected from 384 potato smallholder farmers in 2019, to first identify various on-farm risk management strategies and then to determine the effect of risk management strategies on potato enterprise performance. Data is analysed by use of content analysis and descriptive statistics. Further, a multiple regression model is used to determine the effect of risk management strategies’ attributes on potato enterprise performance. The findings of content analysis and descriptive statistics indicate that potato smallholder farmers use various strategies to boost potato enterprise performance. The strategies include application of chemicals, irrigation, furrowing, increased frequency of fungicide application, field sanitation practices, searching for markets, transporting potatoes direct to the markets, use of market information and delaying harvesting of potatoes by leaving them in the soil. Empirical results from multiple regression model reveal that, frequent use, perceived effectiveness, costs and the number of on-farm risk management strategies boost potato enterprise performance in Tanzania. The findings of this paper have several policy implications. First, more and effective risk management strategies such as the use of irrigation system, fungicides, accessing marketing information should be employed to boost potato enterprise performance in Tanzania. Second, since, the cost of risk management strategies had improved potato enterprise performance among smallholder farmers in Tanzania. However, the cost of employing risk management strategies is higher than the benefit potato smallholders get as a result of the strategies employed. The high costs had resulted from employing risk management strategies such as the purchase of irrigation systems during low rainfall and frost bites. Hence, potato smallholder farmers through public-private partnerships between Lusitu Agribusiness Group and Tanzania Agricultural Development Bank (TADB) should establish a village hiring irrigation to dramatically reduce the costs associated with risk management strategies such as irrigation.
Risk management, irrigation, potato, enterprise, Tanzania
International Journal of Trend in Scientific Research and Development - IJTSRD having
online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International
Journal which provides rapid publication of your research articles and aims to promote
the theory and practice along with knowledge sharing between researchers, developers,
engineers, students, and practitioners working in and around the world in many areas
like Sciences, Technology, Innovation, Engineering, Agriculture, Management and
many more and it is recommended by all Universities, review articles and short communications
in all subjects. IJTSRD running an International Journal who are proving quality
publication of peer reviewed and refereed international journals from diverse fields
that emphasizes new research, development and their applications. IJTSRD provides
an online access to exchange your research work, technical notes & surveying results
among professionals throughout the world in e-journals. IJTSRD is a fastest growing
and dynamic professional organization. The aim of this organization is to provide
access not only to world class research resources, but through its professionals
aim to bring in a significant transformation in the real of open access journals
and online publishing.