Effects of Non–Tariffs Barriers on Maize Production and Marketing for Smallholder Farmers in Tanzania

Petro Maziku, J. Hella and J. Makindara
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Petro Maziku: College of Business Education, Tanzania
J. Hella: Sokoine University of Agriculture, Tanzania
J. Makindara: Sokoine University of Agriculture, Tanzania

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Abstract: This study assessed the effects of Non-Tariffs Barriers (NTBs) on maize production and marketing for smallholder farmers in the major maize producing districts (Mbozi and Momba districts) in Songwe region located in the Southern Highland of Tanzania. A cross sectional survey design was employed in gathering primary data. A two-stage stratified sampling procedures were used in the selection of 400 smallholder farmers and interviewed using standardized questionnaires. In estimating the response of maize production on NTBs, the study employed the duality model using indirect supply function. Results indicated that, NTBs have depressive effects on the quantity of maize produced and marketed. Findings further shows that, a unit increase in the transaction costs as attributed by NTBs could reduce the quantity of maize produced by 16% in the two districts. Generally, the study concluded that, imposition of NTBs policies would not increase maize production in Tanzania especially in the surplus districts as they reduce the incentives for farmers to produce and supply more maize to market due to decline farm gate prices. It is therefore recommend that, government should eliminate discriminative NTBs and concentrate on incentives to smallholder farmers such subsidizing inputs and improvement of rural roads to encourage more maize production and supply. This will contribute much on food security and agricultural growth as well as reduction of poverty among rural households in the country.

Keywords: Maize; Production and Marketing; NTB; Smallholder farmers; Tanzania (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:tkp:mklp18:745

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