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

Master's Thesis from the year 2020 in the subject Agrarian Studies, grade: 2.98, University of Lusaka, language: English, abstract: 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.