Kassim, Ashura Urassa2024-11-052024-11-052016APAhttps://scholar.mzumbe.ac.tz/handle/123456789/1643A research report submitted as a partial fulfillment of the requirements for award of the Master of Procurement and Supply chain ManagementThis study aimed at assessing the economic impact of contract farming for smallholders‟ tobacco producers in Urambo District. The study was guided by three specific objectives: examining the cost and return of tobacco smallholders‟ farmers under contract farming scheme, examining the resource use efficiency of smallholders‟ tobacco farmers under the contract farming, and analyzing yield and price uncertainties involved in the tobacco production and marketing by the smallholders‟ contracts farmers. The study employed a cross –sectional design with a sample of 94 respondents selected using simple random and purposive sampling techniques. A mixed approach was used in studying the phenomena. Quantitative data from questionnaire were analyzed using Statistical Package for Social Science (SPSS).The Cobb Douglas production function was used to determine the impact of factors of production and contract farming characteristics. The qualitative data from interview guide were analyzed descriptively using content analysis procedure. Findings of this study revealed the following: there is a positive return in tobacco contract farming; resources utilization was efficient with family being a major source of labor. It was also revealed that yield were affected limits in amount to be produced, whereas price being affected by existence of so many grades of tobacco leaves. In the light of above findings it is recommended that: the Primary Cooperative Society should reduce the interest imposed on the farmers, farming implements should reach farming at right time and right quantity. There is a dare need of reducing number of grades for tobacco leaves from 72 to at least 35. WETCU should remain as supervisors of Primary Societies and not supplier of farming implementsenContract FarmingTobacco ProductionTobacco MarketingThesis