Table 3.
Sensitivity analysis of smallholder rice farming.
| Item | Actual | TVC per acre |
Price of rice/paddy |
Yield of rice/paddy |
|||
|---|---|---|---|---|---|---|---|
| 10% Increase | 10% Decrease | 10% Increase | 10% Decrease | 10% Increase | 10% Decrease | ||
| Total Variable Cost (TVC) | 857767 | 943543 | 771990 | 857767 | 857767 | 857767 | 857767 |
| Paddy yield sold (kg/acre) | 2345 | 2345 | 2345 | 2345 | 2345 | 2579 | 2110 |
| Unit price (TZS) | 453 | 453 | 453 | 498 | 408 | 453 | 453 |
| Value of paddy (TZS) | 1142379 | 1142379 | 1142379 | 1256617 | 1028141 | 1256617 | 1028141 |
| Rice yield sold (kg/acre) | 278 | 278 | 278 | 278 | 278 | 306 | 251 |
| Unit price (TZS) | 841 | 841 | 841 | 925 | 757 | 841 | 841 |
| Value of rice (TZS) | 215252 | 215252 | 215252 | 236777 | 193727 | 236777 | 193727 |
| Value of rice bran (TZS) | 21 | 21 | 21 | 21 | 21 | 21 | 21 |
| Value of broken rice (TZS) | 2585 | 2585 | 2585 | 2585 | 2585 | 2585 | 2585 |
| Total return | 1360236 | 1360236 | 1360236 | 1495999 | 1224473 | 1495999 | 1224473 |
| Gross margin | 502469 | 416693 | 588246 | 638232 | 366706 | 638232 | 366706 |
| % change in gross margin | −17 | 17 | 27 | −27 | 27 | −27 | |