Agricultural Production Services and its Impact on Choice of Marketing Channels among Smallholder Sesame Farmers in Tanzania

Abstract

The study examined the relationship between agricultural production services and choice of marketing channels among smallholder sesame farmers in Tanzania. The study employed cross-sectional research design; whereas a sample of 392 smallholder sesame farmers was randomly drawn through probability sampling techniques. Data were collected using survey questionnaire, interview guide and checklist. Analysis of quantitative data was done using Generalized Structural Equation Modelling (SEM) method. The study found that agricultural production services were associated with increase in chance of Smallholder sesame farmers to use Warehouse Receipt System (WHRS) channel; the odds ratio associated with selecting of WHRS marketing channel instead of other market channels for unit increase in production services was 1.59. This implies that the odds of using WHRS market channel increased by 1.59 for unit increase in agricultural production services. These results indicate that there is a relationship between the agricultural production services and choice of market channel. Hence, hypotheses was rejected, and concluded that agricultural production services had a significant influence on the choice of market channel. Hence, the increase in agricultural production services associates with higher probability of Smallholder sesame farmers to use WHRS channel instead of the other market channels by 61 percent. However, there is generally low provision of agricultural production services to Smallholder sesame farmers in the study area. The Smallholder sesame farmers in the study area have low access to education and training, agricultural inputs and agriculture support services. Low provision of production services implies low productivity in agriculture. The study provides important insights into understanding of the effects of agricultural marketing cooperative societies on the influence of agricultural production services on the choice of marketing channels, and recommends enhancing the capacity of the agricultural marketing Cooperatives Societies for agricultural service delivery