Bayiyana, Irene2021-09-152021-09-152019Bayiyana, I. (2019). Impact of dairy market hubs and economic efficiency of smallholder dairy farmers in Tanzania: the case of Tanga and Morogoro regions. Masters dissertation, University of Dar es Salaam. Dar es Salaamhttp://41.86.178.5:8080/xmlui/handle/123456789/15568Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, (THS EAF HF5415.T34B394)This study examines participation in Dairy Market Hubs (DMHs), impact of DMHs and economic efficiency of smallholder dairy farmers in Tanzania. Using secondary data collected from 461 smallholder cattle keepers in four districts in two regions of Tanzania (Tanga and Morogoro), the study employs quasi-experimental methods combining propensity score matching and difference-in-difference to estimate treatment (dairy hub) effects. A logit random effects model was used to analyse the factors influencing smallholder participation in DMHs while economic efficiency was estimated using a stochastic frontier translog cost model. The results indicate that participation was encouraged by group membership, land holding and education of the household head. It related negatively with age and squared years of schooling. Dairy market hubs on average increased household dairy income by 2.59 percent points per household, for the period 2014 to 2016 compared with the expected effect of 5 percent points annual increase. The economic efficiency index ranged from 0.003-0.999 with a mean of 0.932 points implying that the sampled farmers were close to being fully economically efficient in the allocation of resources for producing a given level of milk output. Key factors indirectly related to cost inefficiency were education level, farmer’s age, hub membership, and farmer location. These results imply that it would be productive to support livestock producer groups across all potential dairy areas to move forming DMHs.enMarketingFarmersTanga regionsMorogoro regionsTanzaniaThesis