Analysis of the Impact of Out-Grower Schemes on the Wellbeing of Small-Scale Tobacco Farmers

A Case of Mugubbudu Tobacco Out-Grower Scheme in Chipata District, Eastern Province, Zambia

Master's Thesis , 2020 , 93 Pages , Grade: 2.98

Agrarian Studies

Out-grower schemes as an appropriate model for improving livelihoods of people in rural areas need to be recommended. This is because out-grower schemes provide access to agricultural inputs and market to the rural farmers. These services seem to be scarce, especially in a liberalized economy like Zambia. However, there are debates as whether out-grower schemes have been beneficial to farmers or not.

Therefore, this study aims at investigating the impact of tobacco out-grower schemes on the economic well-being of farmers at Mugubudu tobacco out-grower scheme of Chipata District. To do this, the study employed non-experimental cross sectional research design. 150 questionnaires were distributed to solicit data from 150 randomly selected small scale tobacco farmers using a tobacco farmers' register as sample frame.

The salient findings of the study were that tobacco out-grower schemes had improved the well-being of small scale tobacco farmers. Indicators for this improvement were that small scale tobacco farmers had acquired assets and their consumption expenditure had increased. However, the study established that lack of information as regard to contract contents, insufficiency of extension services, pricing system, environmental hazards and debt from inputs loans as factors that can choke the strides made by out-grower schemes.

The study recommended that information is be provided in local languages as this will reduce the current difficulties as many of agro-literature is published in English. It is necessary that there is improved collaboration, dialogue and negotiation among all stakeholders namely the Ministry of Agriculture through the regulatory body Tobacco Board of Zambia (TBZ), out-grower firms and farmers association on issues such as pricing, dissemination of information and loan management.

The quantity of extension services should be increased and quality improved to enhance productivity which would consequently improve income well-being. Finally, government should make it as policy for tobacco out-grower schemes to embrace efforts of sustainable environmental management as failure to do so have the potential to erode strides made so far in improving the well-being of small-scale tobacco farmers.

Inhaltsverzeichnis (Table of Contents)

• CHAPTER ONE: INTRODUCTION AND BACKGROUND
• 1.1 Introduction
• 1.2 Background of the Study
• 1.2.1 What are Out-grower Schemes?
• 1.2.2 Types of the Out-grower Schemes
• 1.2.3 The Zambia National Agricultural Policy (NAP)
• 1.3 The Statement of the Problem
• 1.4 Objectives of the Study
• 1.4.1. Overall Objective
• 1.5 Research Questions
• 1.5.1 Overall Research Question
• 1.6 Significance of the Study
• 1.7 Scope of the Study
• 1.7.1 Profile for Eastern Province
• 1.8 Conclusion
• CHAPTER TWO: LITERATURE REVIEW
• 2.1 Introduction
• 2.2 Literature Review
• 2.2.1 Out-side Zambia
• 2.2.2 With-in Zambia
• 2.3 Conclusion
• CHAPTER THREE: THEORETICAL AND CONCEPTUAL FRAMEWORK
• 3.1 Introduction
• 3.2 Theoretical Review of the study
• 3.2.1 Theories of Contract farming/Out-grower Schemes
• 3.3 Conceptual Framework
• 3.4 Definition of Key Operational Terms
• 3.4.1 Out-grower Scheme/Contract Farming
• 3.4.2 Small scale Farmer/Smallholder
• 3.4.3 Agribusiness
• 3.4.4 Contract
• 3.4.5 Household Economic Well-Being
• 3.4.6 Agricultural Extension
• 3.4.7 Poverty
• 3.4.8 Impact
• 3.5 Conclusion
• CHAPTER FOUR: RESEARCH METHODOLOGY
• 4.1 Introduction
• 4.2 Study Design
• 4.3 Study Population
• 4.3.1 Sampling Design and Sampling Procedure
• 4.4 Data Collection Techniques
• 4.4.1 Personal Interviews (face to face interview)
• 4.4.2 Document Review
• 4.4.3 Questionnaires
• 4.5 Data Analysis
• 4.5.1 Chi-Square Test of Independence
• 4.6 Ethical Considerations
• 4.6.1 Veracity
• 4.6.2 Privacy
• 4.6.3 Confidentiality
• 4.6.4 Fidelity
• 4.7 Limitations of the Study
• 4.7.1 Resources
• 4.7.2 Competition
• 4.7.3 Gender

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation aims to analyze the impact of out-grower schemes on the well-being of small-scale tobacco farmers in Zambia, focusing on the Mugubbudu Tobacco Out-grower Scheme in Chipata District, Eastern Province. The study seeks to investigate the extent to which these schemes contribute to the socio-economic well-being of small-scale farmers and to identify any challenges or constraints they face.

• Impact of out-grower schemes on small-scale farmers' income and livelihoods.
• Challenges faced by small-scale farmers participating in out-grower schemes.
• Factors influencing the success or failure of out-grower schemes in Zambia.
• The role of government policy and agricultural extension services in supporting out-grower schemes.
• The potential for out-grower schemes to contribute to poverty reduction and rural development.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter One provides an introduction to the study, outlining the background, problem statement, objectives, research questions, significance, scope, and conclusion. It defines out-grower schemes and discusses their types, focusing on the Zambian context. Chapter Two delves into a comprehensive literature review on out-grower schemes, examining both international and Zambian perspectives. It explores the theoretical and empirical evidence regarding the impact of out-grower schemes on smallholder farmers, including their benefits and challenges. Chapter Three presents the theoretical and conceptual framework of the study. It examines relevant theories of contract farming and out-grower schemes, developing a conceptual framework to guide the research. The chapter also provides definitions of key operational terms, such as out-grower scheme, smallholder, and agribusiness.

Schlüsselwörter (Keywords)

The primary focus of this dissertation is on out-grower schemes, small-scale tobacco farmers, well-being, agricultural extension, and rural development in Zambia. Key concepts include contract farming, poverty reduction, and the impact of agricultural policies on smallholder livelihoods. The research relies on empirical data gathered from the Mugubbudu Tobacco Out-grower Scheme in Chipata District.

• College: University of Lusaka
• Grade: 2.98
• Author: Sunday Silungwe (Author)
• Publication Year: 2020
• Pages: 93
• Catalog Number: V520339
• ISBN (eBook): 9783346140333
• ISBN (Book): 9783346140340
• Language: English
• Tags: analysis, province, eastern, district, chipata, scheme, mugubbudu, case, farmers, tobacco, small-scale, wellbeing, schemes, out-grower, impact, zambia