Smallholders’ livestock commercialization and welfare impacts in Tanzania: evidence from Tanzania national panel survey

This study investigates the smallholders’ livestock commercialization in Tanzania using National Panel survey data. Specifically, the study assesses extent of livestock commercialization, investigate the role of gender and education on both participation and intensity decision of households’ livestock commercialization using Pooled data double hurdle model and, Correlated Random Effect Tobit and Probit models for intensity and participation decision of livestock commercialization respectively. Also two stage correlated random effect model was used to model effect of livestock commercialization on household welfare. As expected the result reveals low level of commercialization among livestock keepers. When it comes to the determinant of commercialization; we find that female livestock keepers are more likely to commercialize than the males’, although the variable has no statistical impact on the intensity. Education levels are found to be less important on influencing livestock commercialization however found to have negative impact on intensity of commercialization. On welfare, commercialization is found to affect non-food total monthly expenditure. The study found that livestock keeping is for subsistence purpose and role of human capital is important on commercialization. Moreover, efforts and practical initiatives are still needed to modernize livestock sector into business oriented so as to improve resource use and welfare of the majority. Key terms: Smallholders, commercialization, off take rates and Tanzania