Profit Margin for Small Maize Business: A Comparative Study of Green Roasted and Dry Maize in Mbeya, Tanzania

Abstract

Roasted fresh green maize harvested from farms is one of a growing small business in many towns in Tanzania.  Yet, little information is available on the profit margin differences between roasted fresh green maize and dry maize. This study therefore was conducted to investigate the profit margin differences between roasted fresh green and dry maize in Mbeya City and Mbeya District. The study employed both snowballing and random sampling plan whereby a sample of 70 respondents was collected.  Present study used SPSS in data analysis while descriptive and multiple regression techniques were employed.  As a result, the mean of profit margin, operation cost and capital invested were compared. Results showed that the profit margins of both businesses, the operation cost, as well start-up capital were statistically significant at (P<0.01), (P<0.05) and (P<0.01) levels, respectively. Suggesting that profit margin of roasted green maize was higher than of dry maize as well as the operation cost. Contrary to these, the start up capital for roasted green maize was lower than that of dry maize business. Based on survey findings it was concluded that business of roasted green maize had higher profit margin than dry maize. It is therefore recommended that the government should not restrict the green roasted maize business and that the decisions should be left to the producers and business dealers. Further, it is also recommended that the government should register all roasted green maize dealers and find a way of taxing them equally to dry maize businesses in regard to the profit generated.

Key Words: Roasted fresh green maize, dry maize, profit margin, operation cost, startup capital, Mbeya University of Science and Technology