Participation of Smallholder Vegetable Growers in High-Value Market Chains in Arusha, Tanzania

Abstract

Despite the huge employment and income benefits from vegetable farming, smallholder growers in developing countries lack the knowledge about high value markets and their requirements. Most of these growers are ignorant have limited knowledge about vegetable contract farming, product standardization and grading of their produce, quality of produce preferred by customers, on delivery times and food safety standards. This study used primary data collected from 200 smallholder vegetable growers in Arumeru District in Arusha Region to identify the determinants of high-value market participation of smallholder vegetable growers in high-value markets. The findings indicated that farmers income, distance from the farm to the main road and yield had a significant influence on smallholder cabbage growers' participation in high-value markets to local markets. While for onion farmers, income, irrigation, extension services, and market information had a positive influence on farmers' market participation. But as for tomato growers, experience, the distance to high-value market, yield, and irrigation had significant influence on growers' participation. These findings demonstrated the urgent need to deliberately improve the factors that increase participation of smallholder growers in high-value markets if they are to get stable incomes and sustain their livelihoods. There is also a need to improve access to market information, develop farmers' business skills and improve rural access roads.

What factors influence access to and the level of participation in high value mango markets by smallholder farmers in Ghana?

“…This finding is in line with the findings of Muthini et al. (2017) and Sumari et al. (2018) who found that wealthier mango farmers and vegetable farmers, respectively, were more likely to participate in high value markets.…”

“…High value markets, especially the export markets, require farmers to use approved farm inputs which are expensive but could be relatively affordable to wealthy farmers. This finding is in line with the findings of Muthini et al (2017) and Sumari et al (2018) who found that wealthier mango farmers and vegetable farmers, respectively, were more likely to participate in high value markets. Muthini et al (2017) argue that wealthy farmers can incur transaction and transportation costs associated with participating in remunerative markets.…”

“…This is in line with the findings of Bobojonov et al. (2016) , but contrary to the finding of Sumari et al. (2018) who found that more experienced farmers were more likely to supply to high value markets.…”

“…Muthini et al (2017) argue that wealthy farmers can incur transaction and transportation costs associated with participating in remunerative markets. Further, high value markets require a constant supply of quality products which are associated with high costs (Sumari et al, 2018). This is also true for farmers who have access to credit.…”

“…Researchers began with modeling market participation as a single-step decision where the binary probit or logit models were used for binary choices and such models as the multinomial logit or multinomial probit models were used for a multiple choice outcome. Applying the binary logit model, Sumari et al (2018) analyzed the participation of smallholder vegetable farmers in high value market chains in Tanzania and found that participation in high value market in Tanzania was influenced by income, distance from farm to main road, yield, irrigation, access to extension services, access to market information and distance to high value market. Other key determinants of participation in high value markets by smallholder vegetable farmers include age, education, farm size and membership if farmer groups or cooperatives ( Maspaitella et al, 2018 ).…”