Farmers eager to embrace mechanized maize shelling through Group Business Model

10 November 2023

In sub-Saharan Africa, particularly in Tanzania, maize is a lifeline for several million people. It’s not just a crop; it’s the key to food security, better nutrition, and improved livelihoods for smallholder farmers. For a long time, using machinery to grow maize was a distant dream due to low demand, insufficient policy attention, and the mechanization process was far from efficient. But times have changed, and now small-scale farmers are realizing the benefits of using machinery.

Farmers in Tanzania's Mbozi District using maize sheller machines promoted by the Africa RISING - NAFAKA Project.
Farmers in Tanzania’s Mbozi District using maize sheller machines promoted by the Africa RISING – NAFAKA Project. (Photo Credit: Haroon Sseguya/IITA)

A recent study led by socio-economics scientists from IITA investigated the willingness of farmers to invest in mechanized maize shelling in Tanzania. The results suggest that most farmers are eager to invest in mechanized maize shelling to boost productivity and increase their income. Among the participants in the study, 65% are interested in the Group Business Model (GBM), where groups of farmers own and use maize shelling machines collectively, and around 10% are looking at the Individual Business Model (IBM), with farmers owning and using the machines individually.

IITA Agricultural Economist Bekele Kotu shed light on the reasons behind these decisions: “Farmers with more education, greater wealth, experience with shelling machines, and those grappling with high labor costs are more likely to choose the GBM. On the other hand, male farmers with education, wealth, and shelling machine experience but facing labor challenges tend to favor the IBM.

A scientist, Christopher Mutungi trains farmers how the newly developed low-cost mechanized multi crop processor prototype works at Changarawe Village in Karatu District.
A scientist, Christopher Mutungi trains farmers how the newly developed low-cost mechanized multi crop processor prototype works at Changarawe Village in Karatu District. (Photo Credit: Bevin Bhoke/IITA)

He noted that female farmers are more likely to adopt the GBM than men because of their lower financial positions. Moreover, women are more likely to join groups with larger group sizes than men because they get the leverage of contributing less for initial capital.

The results show that increasing agricultural mechanization in Tanzania through investments from smallholder farmers is possible. However, achieving this would require having supportive policies. This includes targeted loan programs, training, and incentives to encourage smallholder farmers to participate in mechanization.

Moreover, the study suggests that engaging all parties in mechanization is crucial to spur agricultural development. This approach can help reduce post-harvest losses, cut labor costs, boost farm income, increase production and productivity, and ensure profitability. “We need steps like improving the business environment, offering tax breaks and subsidies to rural businesses along the mechanization value chain, and establishing a well-integrated mechanization support system to turn this vision into reality,” Kotu proposed.

Lastly, the study emphasizes the significance of investing in local manufacturers to reduce reliance on imported machinery. This benefits the local market and supports domestic industries producing machinery tailored to local needs. It’s a change that has already won over many customers who once depended on imported equipment.

Contributed by Rashid Hadi