Abstract
Agriculture has a high potential to contribute to poverty reduction and economic development. The sector in United Republic of Tanzania is however dominated by smallholder farmers whose productivity and income remained stagnated due to many challenges, one of which is poor knowledge of market mechanisms and how to link with buyer groups to sell their produce/products. To address this challenge particularly among paddy (rice) farmers in Sengerema District in Nwanza Region, a market linkage approach known as consortia platform model is being employed. This study investigated the effectiveness of this approach (consortia platform) by identifying the benefits or supports derived by the smallholder paddy farmers and also ascertain the change in productivity leading to improvement in level of sales and profitability as a result of their involvement in the platform. The methodology employed is Experimental and Control variable, to investigate any change in productivity and income of smallholder farmers before and after their membership of the consortia platform. Mixed methods of both qualitative and quantitative were employed to gather data using structured questionnaire, Key Informant Interview (KII), Focused Group Discussion (FGD) while both primary and secondary data were equally gathered. The result clearly showed an improved market opportunities and increased value addition for the famers, which has ultimately resulted to increased incomes of the smallholder producer. These benefits primarily result to: (i) improved access to markets and information; reduced transaction costs, reduced post-harvest losses, enhanced food safety, improved product quality and increased producer (farm gate) price.
Highlights
A good percentage of people in developing countries live in rural areas and depend on agriculture for their livelihoods
These 37, 613, 489 representing 67.7% of people live in the rural areas and semi-rural, majority of them are smallholder farmers who depend on agriculture for their means of livelihood. [2, 3] reported that poverty in Tanzania is more endemic among households engaged in crop farming, livestock keeping, fishing and forestry
According to a project completion report compiled by James Wembe of Agri-business Development Company Limited, Tanzania, the Government of the United Republic of Tanzania in collaboration with the International Fund for Agriculture Development (IFAD) and the African Development Bank (AfDB), is implementing the Marketing Infrastructure, Value Addition and Rural Finance Support Programme (MIVARF), which is a seven year Programme (2011-2017), though, extended for another two years
Summary
A good percentage of people in developing countries live in rural areas and depend on agriculture for their livelihoods. In East Africa, agriculture account for about 80% of the workforce, yet, East Africa Community (EAC) is characterised with low agricultural productivity and low income, rated amongst the poorest in Africa, [1] According to State of East Africa Report (2016), about 11, 679, 275 people in Tanzania still live below poverty line. These 37, 613, 489 representing 67.7% of people live in the rural areas and semi-rural, majority of them are smallholder farmers who depend on agriculture for their means of livelihood. According to a baseline report byMarketing Infrastructure, Value Addition and Rural Finance (MIVARF, 2017) [6] a consortium approach was introduced to bring together with equal representation the small producer farmer groups, the buyers/off takers, improved input providers, implement providers, finance providers, extension service providers, market information providers and other stakeholders, with government at the other end standing as a regulatory body. [7] These stakeholders come together to do business as they plan for the planting season with market specifications as a guide for their activities
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