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The contribution of non-timber forest products to the economy is ignored and often undervalued due to their subsistence nature. The study focused on baobab trees aiming to understand the baobab population, its asset value across various land uses, and the contribution of baobab fruits to the economy. Kilolo District and Iringa Urban District were purposively selected due to the availability of baobab trees and activities involving baobab fruit businesses in the districts. A stratified random sampling was done to select four land uses, in particular, settlement land, farmland, grazing land, and village forest reserve land for a biophysical survey. Besides, a socio-economic survey was conducted employing key informants’ interviews, market and household surveys to collect data for the assessment of baobab fruit value chains. A total of 91 respondents were interviewed, specifically, 44 harvesters, 1 village wholesaler, 2 middlemen, 2 village retailers, 6 processors 22 urban retailers, and 13 baobab fruits consumers. The study observed 5.27±0.39 stems/ha of baobab trees in grazing land, farmland (3.88±0.73stem/ha), village forest reserve land (2.68±0.17stem/land), and settlement land (2.27±0.31 stem/ha). Also, the total biological asset value of baobab trees was highest in farmland (29.87±9.04 USD/ha) and lowest in settlement land (12.36±2.82 USD/ha). Total chain value added was highest for the baobab fruits value chain involving village wholesalers (1.17 USD/Kg) and lowest for the baobab fruits value chain involving village retailers (0.27 USD/Kg) because of limited value-adding activities in the latter chain. Limited access to market information, low prices, poor storage facilities, lack of capital, poor processing facilities, and seasonal availability of baobab fruits were challenges facing baobab fruits value chain actors. The study concludes that the population of baobab trees differs between land uses implying the potential threats to its existence, and the need for desirable strategies for its conservation and management. So far, baobab is only harvested from self-growing trees, so the study proposes domestication and commercialization of the tree species to raise communities' contribution to the economy.

This study aimed at determining the extent to which the smallholder tree growers benefit from tree growing activities. It strove to accomplish the following: (i) analyse costs and benefits associated with tree growing activities; (ii) determine profitability indices; and (iii) assess economic status of respondents in the study area. Stratified random sampling technique was used to draw respondents. Mixed research methods for data collection were employed: household survey using semistructured questionnaire, key informants’ interviews, focus group discussions, and researcher’s direct observation. Data were analysed using Statistical Package for Social Sciences (SPSS) and Microsoft Excel computer programmes. Profitability was analysed by gross profit margin (GPM) and return on investment (ROI). Findings suggested that tree growing activities are profitable with GPM of 21% and ROI of 26%. ANOVA results showed no statistical difference within study districts between tree growers and non-tree growers. The possible explanation of this situation could be that tree growers have not invested much the benefits they get from tree growing into asset endowment. ANOVA results on household income revealed a similar pattern except in Njombe DC where there was a statistical significant difference in household income between tree growers and non-tree growers (F (1, 64) = 5.989, P=0.017). The effect size of the difference is medium (Eta = 0.08). It is concluded that tree growing activities in the Southern Highlands of Tanzania are economically profitable.