Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania

Abstract

Rice production is an increasing source of income and food security for smallholder farmers in many parts of Tanzania. Improving market access for rice farmers is essential to raise rural incomes and reduce poverty. This paper aims to determine the most efficient rice marketing channel and analyse the factors affecting marketing channel choices by smallholder rice farmers. Marketing efficiency was tested using Acharya and Aggarwal's composite index method. A multinomial logit model was used to analyse the marketing channel choices. The results showed that the miller–wholesaler marketing channel is the most efficient. The results show that most farmers in rural areas still sell their rice to local collectors because of failure, fear or inability by farmers to venture out of the farm gate into the markets. The findings suggest that there is a need to improve rural infrastructure, market information systems, smallholder access to productive assets, prudent use of credit and strengthening collective action through well‐organised farmer groups in the country.