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highest returns from them, they are also activities performed mainly in Masugu and toa much lesser extent in Nyali and Lunenzi.7.5.3 Non-farm incomeAs the third most important income source, non-farm sources contributed to 16% tothe total income of an average household (see Table 38). The most profitable activitywas agricultural processing which on average generated USD 191 a year, followed byshops and trade with USD 52, and local brew USD 26. Most of this income accrued tothe less poor households contributing to 20% on average to total income (compared to4% for the poor).When looking for variations by location, households in Masugu were more involvedin non-farm activities. This we think can be due to better road network and proximityto Kilosa Town. Availability of infrastructure will in this way, not only provide accessto markets for sale of crops and forest products, but also provide opportunities forbusinesses.7.5.4 Off-farm incomeAs another diversification measure, off-farm activities make up 6% of the totalincome. Once again it is the less poor that are the biggest group involved in thisactivity (Table 36). In turn those less poor earned the most with an average of $159which is quite a lot more than say for instance the medium income group which onlyhad an average income of $31. Among the villages, Masugu had the highest rate ofhouseholds doing off-farm labour (23%). Since it also had the highest rate ofunexpected expenditures due to shocks (60%), this might be a partial explanation.The final income source that we will mention is remittances, although this incomehardly plays a part at all in the households‟ diversification strategy.7.5.5 RemittanceThe amount of money transferred was insignificant in relation to total income, but wehave to here consider what such payments presents. For instance there is a certaindegree to which some remittances were not captured by us, as many view receivingremittances with something “shameful” linked to it, or rather being embarrassed for202