Effect of Non-tariff Barriers on Maize Production and Marketing by Smallholder Farmers in Tanzania

Abstract

This study assessed the effect of non-tariff barriers (NTBs) on the production and marketing of maize for smallholder farmers in Mbozi and Momba Districts located in Songwe region in Tanzania. A cross-sectional design was employed in gathering primary data. A two-stage stratified sampling procedure was used in the selection of 400 smallholder farmers, who were surveyed using standardized questionnaires. In estimating the effect of NTBs on maize production and supply, the duality model was employed. The results indicate that NTBs have a depressive effect on the quantity of maize produced and marketed. The findings further show that a unit increase in transaction costs attributed to NTBs could reduce the quantity of maize produced by 16 per cent in the two districts. Based on these findings, it is concluded that the quantity of maize produced and supplied by farmers in the two districts decreases with an increase in the NTB costs. The study recommends the reduction and/or removal of the NTBs, which impede maize production and marketing among smallholder farmers. This would help the government to achieve its goals of creating high prices in the surplus districts and attain low consumer prices in the deficit urban centers, thus reducing poverty.