Browsing by Author "Kundaeli, MAEDA, Claude Rumisha"

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    Smallholder farmers’ commercialization and the status of agricultural markets in Tanzania
    (University of Dar es Salaam, 2019) Kundaeli, MAEDA, Claude Rumisha
    This study addresses the role of commercialization and markets in improving agriculture by exploring how forces linking farmers to agricultural markets and trade can improve the welfare of farmers. Specifically, commercialization levels and pathways of 882 farming households in Morogoro and Dodoma regions are explored using heteroskedasticity-based instruments model to understand the entry to markets. Markets integration between surplus regions of Iringa and Morogoro and deficient ones,Dodoma and Manyara, are studied using maize monthly prices for 120 months to establish the interconnectivity of markets based on Johansen’s co-integration and error-correction model. Also, 263 traders were interviewed with regard to factors driving their decision to trade maize, using the Fractional response model. The results show that commercialization levels were moderate (53%), with food staples being less commercialized i.e. Sorghum (13.7%), Millet (15.6%) and Maize (28.1%). Generally, better prices, the use of middlemen, age and dietary diversity improves commercialization, whereas low education thwarts it. Supply and deficient regional markets were integrated at different levels; Dodoma has long-term relationship with Morogoro, but none with Iringa. Disequilibrium adjustment matrix was small (0.06) implying slow correction to equilibrium upon shocks. Decision of traders to merchandize maize is observed in simple business structures namely sole proprietorship, in traders with access to information on product sources and quantity available, market prices, and phone ownership. Traders giving credit to suppliers and those with poor means of transport are less likely to trade maize. Traders accessing information on credit sources and transportation do not trade maize but commercial crops such as Simsim. Promoting farming among youth and entrepreneurial education will improve farmers’ commercialization, while access to information on sources, products and prices promotes trade. Iringa is closer to Dodoma than to Morogoro. Absence of long-term relationship necessitates enquiry to ascertain the role of infrastructure in connecting markets.