Socio-Economic Factors Influencing the Participation of Smallholder Vegetable Farmers in High-Value Markets

Abstract

Agriculture is the major source of employment in many sub-Saharan African (SSA) countries. It plays a key role in enhancing food security and reducing poverty because it employs about 62% of the population of SSA and generates almost 27% of the Gross Domestic Product (GDP) (Renzaho, 2020). In Tanzania, agriculture contributes about 43% to GDP, employs about 70% of the national labor force, and generates three-quarters of merchandise exports (Mhagama et al., 2023). The horticulture sub-sector is rapidly growing, with an annual growth rate of 11%, compared to the overall agricultural sector growth rate of 4% (Sharma, 2021). The horticulture sector employs over 450,000 people, covering production, processing, marketing, and transportation. Vegetable production, which is part of the horticulture sector has traditionally been a key component of staple foods and it contributes significantly to food security, nutrition enhancement, and economic growth in Tanzania (Mwadzingeni et al., 2021). Like in other developing nations, vegetable trade is dominated by small growers whose likelihood depends on access to vegetable markets (Mdemu et al., 2020; Rwigema, 2020). According to Sumari et al., (2018) and Tray et al. (2021), only a few small-scale farmers in Tanzania have been successful in producing and accessing high-value markets (HVM) which include supermarkets, schools and universities, tourist hotels, and greengrocer stores that are rapidly emerging and expanding. These unconventional outlets represent new income opportunities for smallholder vegetable farmers (Marwa and Manda, 2021). However, their participation in these markets is low (Ismail, 2018)