Profitability of tobacco production among smallholder farmers in northern Uganda: a case of Terego district West Nile region

Abstract

Tobacco is classified as a cash crop and is renowned for its high returns per unit area. In northern Uganda, it serves as a primary cash crop, significantly boosting household incomes and contributing revenue to the government and households. The objectives of the study are to analyze the socio-demographic characteristics of tobacco farmers, evaluate the profitability levels of tobacco farming and to investigate the challenges encountered in tobacco production and marketing in Terego district. A cross-sectional study design was used to conduct the study. Data were collected from 100 randomly selected tobacco farmers using structured questionnaires. Data were analyzed using SPSS. Findings revealed that 85% of tobacco farmers are men with mean age of 40.26 years, an average of 7.56 years of schooling, and average household size is 8.38 members. The total input cost for tobacco farming is 2,268,266.17 Ugandan shillings per acre per season, while the gross return is UGX 5,130,859.25 per acer per season. The gross margin percentage is 55.81%, and the net return is UGX 2,862,593.08 per acre per season. The benefit-cost ratio of 2.26 indicates that for every unit invested; farmers receive 2.26 units in return, confirming the profitability of tobacco farming. Challenges faced by tobacco farmers include excessive sunshine, pests and diseases, and low market prices. Additionally, farmers faced both excessive sunshine and pests, dealt with excessive sunshine and low prices, and managed pests, diseases, and low prices concurrently. A majority of the tobacco farmers reported experiencing all three challenges. Solutions employed include spraying, mulching, and a combined approach of spraying and mulching. The study recommends educational interventions tailored to the socio-demographic context of tobacco farmers in Terego District to improve their farming practices, improvement on rural infrastructure such as roads and storage facilities to reduce transport costs and minimize post-harvest losses, and promotion of sustainable land management and soil conservation practices.