Factors influencing farmers’ participation in the beef market chain: The case of Arusha City and Longido district, Tanzania

Abstract

The performance of the beef industry in Tanzania is heavily dependent on the participation of a few actors in it. The decision to participate in the beef market chain is likely to be influenced by several factors. However, there is a paucity of knowledge on the determinants of farmers’ decisions to participate in the beef market chain. Therefore, this paper assesses factors that influence farmers’ participation in the beef market chain in Longido District and Arusha City. Data for this study were collected from 270 respondents in Longido District and Arusha City. Quantitative data were analyzed using SPSS software. The number of cattle sold used as a proxy variable for participation in the beef market chain. Data were analyzed using the linear regression model. Factors that were identified to have a significant positive influence on the famers’ participation in the beef market chain were distance to the nearby auction (p = 0.026), number of cattle owned by the household (p = 0.05), plot size for improved pasture development (p = 0.000), and repeated transaction (p = 0.008). Meanwhile, a farmer’s age had a significant negative influence on the farmers’ participation in the beef market chain (p = 0.097). The results show that 56.4% of the respondents kept cattle, 39.1% kept shoats, 1.8% were self-employed providing veterinary services and 2.7% were casual labourers. The results also show that distance positively influenced participation in the beef market chain because farmers from a distance villages once they reached the auction were forced to sell whatever stocks they brought. The opportunity cost was too high for them to return with their animals if they do find the price at the auction too low. In conclusion, policies should emphasize equipping the auction with infrastructure that shall reduce transaction costs to all actors. This will enable a fair price determination in which each actor will have a commitment and participate to get a good price based on live weight.