Smallholder rice farmers profitability in Agricultural Marketing Co-operative Societies in Tanzania: A case of Mvomero and Mbarali districts

Smallholder rice farming in Tanzania is an important economic activity that has the potential to livelihood improvement of smallholder farmers, yet their profitability remains low due several challenges they face. This study analyzed costs and benefits associated with farming, determined profit distribution among farmers assessed risk bearing ability under changing circumstances total variable costs, price yields. The was conducted Mvomero Mbarali districts adopted a cross-sectional research design, sample size 382 selected from three Agricultural Marketing Co-operative Societies during 2021 cropping season. Data were collected through questionnaire-based survey key informant interviews. using Statistical Package for Social Sciences (SPSS) excel whereby Enterprise Budgetary Technique Sensitivity Analysis performed. found average Return on Investment 0.42, Benefit Cost Ratio 1.42 Profit Margin 24%. level differed co-operatives where ‘Umoja wa Wakulima Dakawa’ (UWAWAKUDA) had highest return per acre (524 417 TZS) followed by Kapunga (414 111 Madibira (316 638 TZS). Furthermore, farmers' Gross Margins significantly affected changes Total Variable Costs, output yield acre. concludes production profitable business area. Therefore, local government, other stakeholders should improve drivers lead increased such as water infrastructures, organize markets build farmers’ capacities yields farmers.