Influence of Farmer Quality Attributes on Farmers’ Participation in Contract Farming in Tanzania’s Tea Subsector

Abstract

This paper assesses how selected farmer quality indicators influence farmers’ participation in contract farming in Tanzania’s tea industry. A total of 393 smallholder tea farmers from three purposefully selected districts in the Mbeya and Njombe regions in the southern highlands of Tanzania participated in a cross-section survey that yielded the study’s primary data. Data were collected using a structured questionnaire with five-point scale questions. Binary logistic regression analysis was conducted to assess the impact of the four farmer quality determinants on farmers’ participation in contract farming. The results show that farmers’ engagement in contract farming is significantly negatively affected by land access (B=-0.529, Wald value=4.931 and P<0.05). Access to farming equipment was found to have negatively influenced farmers’ engagement in contract farming (B=-0.21, Wald value=0.931 and P<0.30). Further results show that prior contract farming experience significantly positively affects tea farmers’ participation (B=0.551, Wald value=9.656 and P<0.05). Regression results indicate that farmers’ knowledge of the tea value chain seems to have a positive influence on farmers’ engagement in contract farming (B=0.27, Wald=1.757 p<0.20). These findings suggest that access to land and equipment negatively affects farmers’ contract farming participation. Thus, strategies and policies should focus on improving land access to overcome the challenges faced by farmers to engage in contract farming. Moreover, the enhancement of farmers’ access to farming equipment through subsidised programs, equipment rental schemes or cooperative initiatives is crucial. These measures contribute to enhanced and sustainable contract farming practices, thus benefiting both farmers and the tea subsector at large