Linking small scale farmers to market: an evaluation of agricultural marketing system development programme in arumeru district, Tanzania
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Date
2008
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Publisher
Sokoine University of Agriculture
Abstract
The objective of this study was to evaluate the impact of institutions supporting the
marketing system (particularly AMSDP programme as case study) in the linking of
small scale farmers to markets following market liberalization in Tanzania. Thus the
study attempted to identify different factors that influence smallholder farmer’s
participation to the markets. It was expected that the identification of factors and the
extent to which they influence farmers’ participation to the market could assist
institutions in formulation of policy intervention to stimulate participation of small
scale farmers to agricultural product markets. Transaction costs originate from a
number of sources which include information asymmetries, enforcement of trade
contract, negotiation, and monitoring influence on farmers’ participation to the
market. The study hypothesized that decision of smallholder farmers to participate to
the markets is influenced by transaction costs, household characteristics and the level
of market orientation. In order to test the hypothesis that these factors influence
decision of smallholder farmers’ participation to the markets, logit model was
estimated using survey/data from randomly selected 163 households. The results
show that farming learned through extension officer and education of the household
positively and significantly influenced the probability of household participation to
the market in the study area. On the other hand, the distance to the market and the
age of the household head were negatively and significantly associated with the
probability of smallholder fanners participating to the market. Size of the farm
cultivated, road condition and household size were positively related to household
participation to the market. The study provides recommendations that would reduce
impediments of farmers’ participation to the markets. Institutional support in
provision of market information, training, and extension services, could facilitate the
establishment of smallholder cooperatives (groups) and association that would
empower smallholder farmers and enable them to access the markets easily.
Mechanisms should be established to ensure NGOs and Local government become
the main mediator of contracts between companies and small-scale farmers in cases
where they are required to cultivate a certain crop, particularly non traditional crops
so that both groups may benefit.
Description
Master's Dissertation
Keywords
Small scale, Farmers, SOCIAL SCIENCES::Other social sciences::Labour market research, HUMANITIES and RELIGION::History and philosophy subjects::History subjects::Agricultural history, SOCIAL SCIENCES::Business and economics