The Contribution Of Oil Palm Farming To Poverty Reduction: A Case Of Small Scale Farmers In Kigoma Rural District, Tanzania

ABSTRACT

This study examined the contribution of oil palm farming to poverty reduction for small scale farmers in Kigoma Rural District, Tanzania. Specifically, the study identified different sources of income among small scale farmers; compared poverty levels between small scale oil palm farmers and non-oil palm farmers and examined the challenges which small scale farmers face. The study employed descriptive survey design (cross-sectional), whereby 50 respondents in the category of small scale oil palm farmers, 50 respondents in the category of non-oil palm farmers and 6 key informants were interviewed. Data were collected using questionnaires, interviews and observations respectively. Data were then analyzed using SPSS version 20.0 and Microsoft Excel. The study found that, agriculture (cultivation and livestock keeping) was the main source of income to 82% of small scale farmers in Kigoma Rural District, and oil palm was an important cash crop. However, results showed that, a small scale oil palm farmer earned an average of Tshs 175,000 while non oil palm farmers earned 89,000 Tshs annually (approximately Tsh 14,000 and 9,000 Tshs monthly, an amount way below the basic needs Poverty Line in Tanzania which isTshs 36,482 per adult equivalent per month). The T-test showed statistic significant difference (P