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The welfare impacts of market channel choice by smallholder farmers in Tanzania

Frank E. Mmbando, Edilegnaw Z. Wale and Lloyd J.S. Baiyegunhi

Development in Practice, 2017, vol. 27, issue 7, 981-993

Abstract: This article analyses the impact of market channel choice on household welfare by maize and pigeon pea smallholder farmers in Tanzania, using a multinomial endogenous treatment approach. The study utilises farm household-level data collected from a randomly selected sample of 700 smallholder farmers. The results show that participation with traders in nearby markets and wholesalers in nearby towns have a positive effect on consumption expenditure per capita relative to brokers at the farmgate, for both maize and pigeon pea-farming households. The study suggests that interventions that aimed at inclusion of smallholder farmers in more profitable markets could improve household welfare and reduce poverty among rural households.

Date: 2017
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DOI: 10.1080/09614524.2017.1353066

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