The development and significance of smallholder tea growing in Tanzania
Date
1986
Authors
Stephan, Bertrum Magani Bud
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Abstract
Rapid growth has taken place In the smallholder tea sector in
Tanzania.
The Introductory chapter discusses the economic aspects of
development of a newly introduced export cash crop in a low income
country and goes further to introduce the theme of the study.
The second chapter reviews the World Tea situation. It examines
the impact of uncontrolled expansion of tea production on world tea
prices in the absence of effective demand and discusses the role that
ITA might play in maintaining favourable world tea prices. Chapter
three traces the historical development and success of the tea industry
in Tanzania and especially smallholder tea production, a crop
originally thought to be suitable for estates only. The developmental
aspects of foreign exchange generation, provision of rural employment
and income are highlighted.
The production function of tea is revisited in an attempt to
include real producer price index in the function. This relaxes the
earlier assumption of constant prices and concludes that whereas the
constant price assumption was realistic at the time of earlier studies
of the Kenya smallholder tea industry, in the wake of rising inflation
and fall in real producer price earnings, it is important to
incorporate the price indices as an additional variable while
calculating yields in Tanzania.
The study concludes with some suggestions on improving yields for
smallholders following the rapid expansion of the tea area and
increased maturity of the tea bushes over the last twenty years.
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