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Exploring farmers’ willingness to pay for small scale maize shelling machines in Tanzania
Bekele Kotu1, Gundula Fischer1, Francis Muthoni1, Adebayo Abass1, Irmgard Hoeschle-Zeledon1, and Mateete Bekunda1
1International Institute of Tropical Agriculture
Contact: b.kotu@cgiar.org
Challenges & Study objective
 High labor shortage during harvesting season as farmers
cultivate multiple crops and activities are overlapping
 Agricultural operations are arduous by their nature
 There is high postharvest grain loss
 The use of engine-powered machines have been limited to
large-scale commercial farms
 Smallholder farmers who contribute to the large part of the
total production in these countries are out of reach of
mechanization
Main study objective: This study was initiated to explore
smallholder farmers’ WTP for small scale maize shelling machines
This poster is licensed for use under the Creative Commons Attribution 4.0 International Licence.
September 2018
We thank farmers and local partners in Africa RISING sites for their contributions to this work. We also acknowledge the
support of all donors which globally support the work of the CGIAR centers and their partners through their
contributions to the CGIAR system
Introduced technologies
(i)Diesel engine maize shelling machine
(ii)Electric engine maize shelling machine
Evidence
Scaling Approaches
Maize shelling mechanization can be scaled through one (or
combinations) of the following approaches:
 Supporting the private business entities outside of the farming
communities to provide rental shelling services
 Supporting farmers to purchase the shelling machines in groups
 Supporting those farmers who are interested and capable to
engage in the provision of rental shelling services
 Training technicians to realize efficient maintenance services for
the machines
Proposals for the future
 Encourage and support the private sector to experiment the
mechanization options studied in a few intervention areas. Providing
backstopping through R-in-D and address the problems associated with
the mechanization process.
 Research (particularly on the supply side of the market) to complement
this study.
Electric engine machine
• 1.5HP (single phase)
• 0.5t shelling capacity per
hour
• Price about $160
Response
category
Mechanization models
Rental service Group
ownership –
diesel
machine
Group
ownership-
Electric
machine
Private
ownership-
diesel
machine
Private
ownership-
electric
machine
Yes-Yes 30.6 30.9 54.0 9.4 26.5
Yes-No 48.9 30.9 23.1 20.3 26.0
No-Yes 19.5 16.2 10.3 21.3 18.2
No-No 1.0 22.0 12.6 49.1 29.3
Rental service
model
GOM-diesel
machine
GOM-electric
machine
POM-diesle machine POM-electric
machine
Coeff. SE Coeff. SE Coeff. SE Coeff. SE Coeff. SE
Livestock_wealth 3.7 4.3 1981 1349 694 483 28667** 12712 5434 3930
Gender -44.9 42.1 16970 12602 4675 4669 451345*** 111818 61085* 36099
Machine Exp. 152.4*** 48.6 47196* 15169 11869** 5459 366222*** 139655 77508* 42846
Active_Male -7.5 19.9 -5541 6039 -2643 2142 -21690 53340 -11094 16914
Active_Female -53.9*** 20.6 1599 6249 -3950* 2239 15519 52722 -15723 17521
Age -1.9 1.4 -938** 430 -376** 153 -7186* 3954 -5560*** 1266
Maize production -9.1 19.0 7957 5880 1090 2212 141655*** 52465 43007*** 16687
Hired labor cost 62.9 51.1 42957*** 14864 11527** 5666 -12764 125199 61031 41950
Off-farm inc. H. 5.2 7.5 1988 2309 -1406 873 17662 20076 -9053 6328
Off-farm inc. OH. -0.2 7.0 647 2139 1694** 814 12956 18623 9343 5863
Long 121.4* 66.2 22653 20717 16449** 7778 360602** 180860 128354** 58811
Sabilo 227.5*** 72.9 10770 20788 264 7515 147040 183531 48156 58811
Seloto 124.3* 65.8 38764* 20695 7285 7505 299404* 181344 91610 58578
Ndurugumi 78.4 63.0 14574 19631 4567 7133 51752 184248 1928 56683
_cons 1242*** 142.0 48201 43755 55791*** 16134 -1022933** 400708 159562 123061
/lnsigma 5.6*** 0.1 11.6*** 0.1 10.5*** 0.1 13.7*** 0.1 12.6*** 0.1
sigma 276.1 17.7 107134 6171 36516 2432 886423 54553 299603 17500
Number of obs. 396 396 396 396 396
LR Ch^2(14) 38.76*** 70.82*** 45.01*** 91.93*** 75.96***
Table 3: Factors influencing farmers WTP, alternative mechanization models
Amount (TZS) Std. err %farmers
Rental service model 1,268 22 98.7
GOM-Diesel machine 155,848 6036 64.4
GOM-Electric machine 64,698 2459 91.7
POM-Diesel machine 710,317 59161 7.6
POM-Electric machine 379,309 17101 63.1
Table 2: Farmers WTP for small scale maize shelling machines
Table 1: Farmers’ responses to bids
Note: GOM= Group Ownership Model; POM= Private Ownership Model
Note: *,**.*** imply statistical significance at 10%, 5% & 1% alpha levels.
Partners
Diesel engine machine
• 4HP
• 1.5t shelling capacity per
hour
• Price about $650

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Exploring farmers’ willingness to pay for small scale maize shelling machines in Tanzania

  • 1. Exploring farmers’ willingness to pay for small scale maize shelling machines in Tanzania Bekele Kotu1, Gundula Fischer1, Francis Muthoni1, Adebayo Abass1, Irmgard Hoeschle-Zeledon1, and Mateete Bekunda1 1International Institute of Tropical Agriculture Contact: b.kotu@cgiar.org Challenges & Study objective  High labor shortage during harvesting season as farmers cultivate multiple crops and activities are overlapping  Agricultural operations are arduous by their nature  There is high postharvest grain loss  The use of engine-powered machines have been limited to large-scale commercial farms  Smallholder farmers who contribute to the large part of the total production in these countries are out of reach of mechanization Main study objective: This study was initiated to explore smallholder farmers’ WTP for small scale maize shelling machines This poster is licensed for use under the Creative Commons Attribution 4.0 International Licence. September 2018 We thank farmers and local partners in Africa RISING sites for their contributions to this work. We also acknowledge the support of all donors which globally support the work of the CGIAR centers and their partners through their contributions to the CGIAR system Introduced technologies (i)Diesel engine maize shelling machine (ii)Electric engine maize shelling machine Evidence Scaling Approaches Maize shelling mechanization can be scaled through one (or combinations) of the following approaches:  Supporting the private business entities outside of the farming communities to provide rental shelling services  Supporting farmers to purchase the shelling machines in groups  Supporting those farmers who are interested and capable to engage in the provision of rental shelling services  Training technicians to realize efficient maintenance services for the machines Proposals for the future  Encourage and support the private sector to experiment the mechanization options studied in a few intervention areas. Providing backstopping through R-in-D and address the problems associated with the mechanization process.  Research (particularly on the supply side of the market) to complement this study. Electric engine machine • 1.5HP (single phase) • 0.5t shelling capacity per hour • Price about $160 Response category Mechanization models Rental service Group ownership – diesel machine Group ownership- Electric machine Private ownership- diesel machine Private ownership- electric machine Yes-Yes 30.6 30.9 54.0 9.4 26.5 Yes-No 48.9 30.9 23.1 20.3 26.0 No-Yes 19.5 16.2 10.3 21.3 18.2 No-No 1.0 22.0 12.6 49.1 29.3 Rental service model GOM-diesel machine GOM-electric machine POM-diesle machine POM-electric machine Coeff. SE Coeff. SE Coeff. SE Coeff. SE Coeff. SE Livestock_wealth 3.7 4.3 1981 1349 694 483 28667** 12712 5434 3930 Gender -44.9 42.1 16970 12602 4675 4669 451345*** 111818 61085* 36099 Machine Exp. 152.4*** 48.6 47196* 15169 11869** 5459 366222*** 139655 77508* 42846 Active_Male -7.5 19.9 -5541 6039 -2643 2142 -21690 53340 -11094 16914 Active_Female -53.9*** 20.6 1599 6249 -3950* 2239 15519 52722 -15723 17521 Age -1.9 1.4 -938** 430 -376** 153 -7186* 3954 -5560*** 1266 Maize production -9.1 19.0 7957 5880 1090 2212 141655*** 52465 43007*** 16687 Hired labor cost 62.9 51.1 42957*** 14864 11527** 5666 -12764 125199 61031 41950 Off-farm inc. H. 5.2 7.5 1988 2309 -1406 873 17662 20076 -9053 6328 Off-farm inc. OH. -0.2 7.0 647 2139 1694** 814 12956 18623 9343 5863 Long 121.4* 66.2 22653 20717 16449** 7778 360602** 180860 128354** 58811 Sabilo 227.5*** 72.9 10770 20788 264 7515 147040 183531 48156 58811 Seloto 124.3* 65.8 38764* 20695 7285 7505 299404* 181344 91610 58578 Ndurugumi 78.4 63.0 14574 19631 4567 7133 51752 184248 1928 56683 _cons 1242*** 142.0 48201 43755 55791*** 16134 -1022933** 400708 159562 123061 /lnsigma 5.6*** 0.1 11.6*** 0.1 10.5*** 0.1 13.7*** 0.1 12.6*** 0.1 sigma 276.1 17.7 107134 6171 36516 2432 886423 54553 299603 17500 Number of obs. 396 396 396 396 396 LR Ch^2(14) 38.76*** 70.82*** 45.01*** 91.93*** 75.96*** Table 3: Factors influencing farmers WTP, alternative mechanization models Amount (TZS) Std. err %farmers Rental service model 1,268 22 98.7 GOM-Diesel machine 155,848 6036 64.4 GOM-Electric machine 64,698 2459 91.7 POM-Diesel machine 710,317 59161 7.6 POM-Electric machine 379,309 17101 63.1 Table 2: Farmers WTP for small scale maize shelling machines Table 1: Farmers’ responses to bids Note: GOM= Group Ownership Model; POM= Private Ownership Model Note: *,**.*** imply statistical significance at 10%, 5% & 1% alpha levels. Partners Diesel engine machine • 4HP • 1.5t shelling capacity per hour • Price about $650