Research on World Agricultural Economy

Assessing Maize Enterprise Viability among Smallholder Farmers in Murehwa District, Zimbabwe: Implications for Socioeconomic Policy

Mark Manyanga

Department of Agricultural Business Development and Economics, University of Zimbabwe, Harare, Zimbabwe; CIRAD-ES-UMR SENS, 34086 Montpellier, France  

Françoise Gérard

CIRAD‑ES ‑ UMR SENS, 34086 Montpellier, France

Tarisayi Pedzisa

Department of Agricultural Business Development and Economics, University of Zimbabwe, Harare, Zimbabwe

Blessing Mutoro

Centre for Conflict Management & Transformation (CCMT), Harare, Zimbabwe

Benjamine Hanyani-Mlambo

Department of Agricultural Business Development and Economics, University of Zimbabwe, Harare, Zimbabwe

DOI: https://doi.org/10.36956/rwae.v6i1.1440

Received: 1 November 2024 | Revised: 5 December 2024 | Accepted: 23 December 2024 | Published Online: 7 March 2025

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Abstract

In the realm of climate change, maize crop yield continues to decline in most parts of Africa owing to extreme weather events. Although maize production plays a significant role in ensuring food and nutrition security and increasing household income, little is known about the viability of the enterprise for households with different socioeconomic statuses. The study relied on primary data collected from 248 randomly selected smallholder farmers in the Murehwa District of Zimbabwe. We estimated maize enterprise viability using gross margin analysis. We then investigated the factors driving productivity using log-linear regression analysis. We classified rural households into four groups by applying principal component and hierarchical cluster analyses using ward linkages. Our results reveal that maize is viable across all socioeconomic classes of households, with the better-off having the highest gross margin and the poorest having the least. Family size, area cultivated, number of cattle owned, quantity of maize required for household remittances, and distance to market affect the viability of maize production enterprises. Furthermore, we found a positive correlation between maize viability and the socioeconomic status of households. Improving market conditions and safety nets in terms of input provision can increase productivity and boost gross margins, especially for the poorest and poor households. There is a need for establishing breakeven areas, and providing credit facilities and subsidies to local agrodealers can help manage cash flow and reduce transportation costs.

Keywords: Gross Margin Analysis; Maize Enterprise; Productivity; Viability; Zimbabwe

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