An evaluation of the Southern Tombwe Growers Association out grower credit scheme for small holder farmers in Choma District
| dc.contributor.author | Lukwesa, Herman | |
| dc.date.accessioned | 2017-05-02T15:16:31Z | |
| dc.date.available | 2017-05-02T15:16:31Z | |
| dc.date.issued | 2007 | |
| dc.description | Student Project Report | en |
| dc.description.abstract | The general objective of the study was to evaluate the credit delivery scheme provided to small scale tobacco farmers by Southern Tombwe Growers Association (STOGA) in the out grower scheme arrangement. The specific objectives were to determine (a) the loan recovery rate from small scale farmers at STOGA (b) the factors influencing small scale farmers to default in their loan repayments (c) the appropriateness and effectiveness of the credit delivery scheme offered by STOGA to small scale farmers.(d) strategies out grower schemes have in place to reduce high default rates by small-scale farmers. This study was carried out in Choma District of Zambia. The study was done with STOGA which was running an out grower scheme with small scale farmers in this area. The study focused on a single crop (tobacco) for easy evaluation. The association had 378 members benefiting from the scheme and only 80 farmers were selected for the study using simple random sampling techniques. Both primary and secondary data was collected from the Board members and extension officers at STOGA who are the scheme managers. A case study conducted on STOGA. Interviews were conducted with small scale farmers to collect primary data using questionnaires and focus group discussions. According to the research findings, the number of farmers who had defaulted was 57.5% i.e. they fell below the cut- off point. Of the factors that contributed to the farmers defaulting {54.3%) attributed the default to drought, (63.0%) to low price fetched by the tobacco on the market, (41.7%)) to poor harvest due to late delivery of inputs and (67.5%) due to delays by the contracting firm to pay farmers for their produce were among some of the reasons farmers attributed to causing them to default. Despite the default rates being 57.5% of the farmers defaulting, 62.5%) of the farmers indicated that they were benefiting from the out grower scheme in terms of increased income and improved livelihood and the defaults were not to the extent that can close down the out grower scheme. It was recommended that the out grower scheme should consider revising the terms and conditions of paying back the loan in instances were yields are affected by natural causes. Farmers need to be consulted when it comes to setting the selling price of tobacco rather than imposing these prices on them. Prices of tobacco on the floor to be quoted in kwacha and not in dollars so that farmers can better understand the pricing system. Extension workers to intensify their visits during harvesting and curing time as this would help the farmers increase their income by achieving a better grade when selling tobacco on the floors. The out grower scheme to include programmes that incorporate the growing of staple foods such as maize side by side with tobacco to reduce on the number of farmers side selling the produce to buy food. | en |
| dc.identifier.uri | http://dspace.unza.zm/handle/123456789/4508 | |
| dc.language.iso | en | en |
| dc.publisher | University of Zambia | en |
| dc.subject | Agricutural Credit-Zambia | en |
| dc.title | An evaluation of the Southern Tombwe Growers Association out grower credit scheme for small holder farmers in Choma District | en |
| dc.type | Other | en |