The Choice of Marketing Channel by Maize and Pigeonpea Smallholder Farmers: Evidence from the Northern and Eastern Zones of Tanzania

Abstract

ABSTRACTThis study examines the factors affecting the choice of marketing channel used by smallholder maize and pigeonpea farmers in the northern and eastern zones of Tanzania. The reason for the focus on maize and pigeonpea is because these products are key crops that contribute to household production, consumption and cash income in the study zones. A Multinomial Logit Analysis of a multistage sample of 562 smallholder farmers, who market maize and pigeonpea, showed that transaction costs, household wealth, access to credit and extension services, and social capital affect their choice of marketing channel. This outcome suggests that policies aimed at reducing transaction costs, improving access to productive assets, prudent use of credit, and promoting the use of well-organised farmer groups to access appropriate technology and information could enhance market access and better integrate smallholder farmers into markets in the study areas.