Analysis of the Organization and Challenges of Contract Farming in Tanzania: A Case of Mtibwa Sugarcane Outgrower Scheme

Aims: To analyze the organization and challenges of contract farming in Tanzania. Study Design: Cross sectional. Place and Duration of the Study: Turiani division in Mvomero District. Data collection began in February 2013 and ended in March of the same year. Methodology: The paper utilizes the qualitative data to answer the research questions. Results: Sugarcane growers are contracted through their organizations. Five main challenges of contract farming in the study area were identified. They include delayed payment, lack of fairness in allocation of quotas, lack of transparency in determining the content of sucrose (rendement), lack of transparency in determining the weight of sugarcane and low price of sugarcane. Conclusion: Contract farming in the study area has the potential to overcome sugarcane marketing constraints. However, the challenges identified require an immediate attention.