ECONOMIC EVALUATION OF SISAL PRODUCTION AND ITS IMPACT ON HOUSEHOLD INCOME IN THE TANGA REGION, TANZANIA

Business

This study aims to assess the economic valuation of sisal production on household income in the Tanga Region, Tanzania. The objective of this study is to analyze the costs and benefits of sisal production. Sisal belongs to the category of the most crucial natural hard fibers worldwide, which are famous owing to their environmental friendliness and socio-economic significance in dry and semi-arid lands. Tanzania is one of the countries where sisal played an important role in providing export income as well as a rural workforce, especially in the Tanga Region, where small- and large-scale farming, instead, is the most widespread. In spite of economic standing, there is less empirical data on how far sisal production goes in relation to household income and community development. This paper evaluates the contribution of sisal farming to the household income in the Tanga Region, specifically Muheza district and Korogwe district, in terms of costs and benefits, efficiency of production, and the socio-economic situation of income in the region. Data was obtained via the application of structured questionnaires and interviews with a sample size of 180 sisal-producing households by use of a cross-sectional research design. The method adopted was a multistage sampling procedure using purposive and random methods of sampling with a view to having regional and household representativeness. The analytical tools were composed of the cost-benefit analysis (CBA). The results are that the use of sisal in production is a profitable venture, and the Benefit-Cost Ratio (BCR) is over 1.0, the Net Present Value (NPV) is positive, and the Internal Rate of Return (IRR) is favorable to the long-term feasibility of the venture

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