Price Fluctuation of Agricultural Products and its Impact on Small Scale Farmers Development

Abstract

Price fluctuation is a multifaceted problem attributed by various factors which, when combined, culminate in dangerous consequences for the most vulnerable. Although high prices can technically be good news for farmers, price fluctuation is extremely dangerous, as farmers and other agents in the food chain risk losing their investments if prices fall. One frequently cited reason for increased prices is ‘market fundamentals’ as demand is thought to be outstripping supply and thus leading to increased prices. The specific focus was to identify the causes of price fluctuation for agricultural products, examine the contribution of good price toward achievement of small scale farmer’s development and to find out the possible solutions on how price fluctuation can be addressed. Cross sectional research design was used to undertake the study where Hai District council was selected as a study area located in Moshi Rural. Purposive and simple random sampling techniques were used to pick a sample of 30 respondents including farmers from Kalali village, Mkufi village and Sanya Juu. Multiple approaches including questionnaire, interview, and documentary review were used to collect data. Data were analyzed through applying interpretive and reflexive qualitative approaches while quantitative techniques involved utilization of descriptive statistics. Findings showed that price fluctuation of agricultural product is a challenge towards achievement of small scale famer’s development which results to loss of capital and farmers shifting to other production activities.