THE EFFECTS OF AGRICULTURAL COMMODITIES MARKET PRICES ON LOCAL FARMERS’ WELFARE IN TANZANIA

The study investigated the effects of agricultural commodities market prices on local farmers’ welfare in Tanzania. The study was carried out at Mkuranga District in the Coast Region. The study was guided by the research objectives that were, to determine the effect of farmers competitive prices, farm operational costs and intermediaries price setting on local farmers’ welfare. The study was informed by the application of Porter’s Value Chain theory. The study which is basically descriptive adopted quantitative and qualitative approaches. The study used non-probability sampling (convenient sampling) to get views from the targeted group which is local farmers at Mkuranga District. The unit of analysis involved local farmers’ who produce cassava, pineapple and cashew nut from 3 villages namely Bupu, Mwalusembe and Kiparang’anda of which each included 25 farmers as respondents forming a total sample size of 75 respondents. Moreover, the study used 5 key informants who were purposively selected to provide in depth information on a study area. These were 3 agricultural officers and 2 government officials who were considered conversant in providing needed information. The analysis of the data was performed by multiple regression and correlation statistical methods with the aid of Statistical Package for the Social Science (SPSS) software. The results of the study showed that commodity prices and intermediaries’ price setting have positive and significant effects while operational costs have no significant effects on local farmers’ welfare in the region.