Impact of high-value market participation on income, saving and assets among smallholder vegetable farmers in Arumeru District, Tanzania

Abstract

This paper examined the impact of participating in High-Value Markets on the income, savings, and asset value of smallholder vegetable farmers. The study was guided by the participatory behaviour theory and operationalized through a cross-sectional research design. It was conducted in the Arumeru District. Data was collected through household surveys, focus group discussions, and key informant interviews. A total of 384 respondents including both farmers participating and not participating in the HVM for vegetables were randomly selected and interviewed. The data were analysed using propensity score matching. Nearest neighbourhood, kernel, radius, and stratification matching techniques were used to estimate the impact of participation on income, savings, and asset value. Findings revealed that farmers participating in HVM had higher and statistically significant values of income, savings, and assets as compared to farmers not participating in HVM. This was evidenced by the statistically significant values of Average Treatment Effect (ATE) and Average Treatment Effect on the Treated (ATET) (p >0.05) These findings underscore the advantage of selling vegetables in HVM over traditional markets. While HVM participation shows promise in boosting savings, income, assets, and overall livelihoods of smallholder vegetable farmers, its full potential hinges on strong collaborative efforts. Agricultural extension services and NGOs must actively work together to support training programs, build capacity, and promote quality standards amongst farmers