Determinants of smallholder rice farmers’ market outlet selection in Mbarali and Mvomero Districts, Tanzania

Abstract

Understanding smallholder farmers’ market outlets have the potential to improve the productivity and incomes of smallholder farmers engaged in rice farming. Tanzania rice farmers select market outlets from a diverse spectrum. There is a scarcity of empirical information on the drivers of farmers’ decision-making associated with market outlets in the context of Agricultural Marketing Co-operative Societies’ marketing initiatives. This paper explores the smallholder rice farmers’ drivers for the selection of market outlets. A cross-sectional research design was used. A sample of 382 smallholder rice farmers was selected from three co-operative societies selected from two districts in Morogoro and Mbeya Regions. Multivariate Probit regression was applied to examine the determinants of market outlet selection decisions. It was found that the market outlets were wholesale, retail, millers, middlemen and private buyer. The majority (65.7%) of farmers sold to more than one outlet. The quantity of paddy sold, access to market information, smartphone ownership, access to credit, the amount of rice sold and frequency of extension visits were the important determinants of the selection of market outlets (p<0.05). It is concluded that the majority of farmers have access to multiple market outlets which contributes to livelihood improvement. To promote livelihood through agricultural transformation in Tanzania, policymakers should prioritize increasing smallholder rice farmers' access to market outlets through initiatives such as building rural infrastructures, improving market information systems, and promoting public-private partnerships.