Determinants of Market Orientation and Market Participation among Smallholder Rice Farmers in Tanzania

Abstract

Abstract The study aims to examine the factors that affect smallholder rice farmers’ market orientation tendencies, market participation decision and the extent of rice marketing. A total sample of 352 rice farming households is drawn from the National Panel Survey Data of 2014/2015. A tobit model is used to analyse the factors that influence market orientation tendencies, then a double hurdle model is used to analyze the drivers of the choice and extent of rice marketing by the smallholder rice farmer. Findings reveal that the age of the household head, education level and receiving input vouchers negatively affect market orientation while access to marketing extension services, inorganic fertilizers application, use of animal traction, use of hired-labor, land fragmentation and household wealth positively influence market orientation inclinations among smallholder farmers. Moreover, the quantity harvested and household wealth were found to positively influence both decision and extent of market participation. The age of the head, household size and access to extension services influenced the decision to participate in marketing while distance to the nearest market and market orientation influenced the extent of market participation among smallholder rice farmers in Tanzania. Widening extension services and improving infrastructure supporting marketing are called for.