Abstract:
This aper explores the factors influencing livestock market participation decision of
smallholder farmers in Mbulu and Bariadi districts, Tanzania. The objective of the study to
sort out the key factors that influence smallholder farmers’ decision to participate in the
livestock market as it has been pointed out that smallholder farmers rarely participate in the
markets. A probit regression model was employed for the analysis. The study used primary
data collected from 333 smallholder farmers of the tow aforementioned districts. It was found
that herd size, family labour, income from livestock, market information, livestock income
and farm income are the main factors that influence smallholder farmers’ decision to
participate in the livestock markets. Findings also indicate that smallholder farmers would
participate more and more in the livestock market, if herd size, availability of labour, market
information, farm income and income from livestock are increased as these factors were found to be
significant at p<0.0. It is concluded that. Smallholder farmers in the study are influenced by a number
of factors as aforementioned. The uniqueness of this paper is that it examines the phenomenon of
smallholder farmers in the study area from the viewpoint of market participation, which may create an
opportunity for further constructive debate. Furthermore, development of market infrastructure,
provision of marketing incentives to smallholder livestock farmers and development of an
institutionalised marketing information service are recommended to embrace commercialisation of
livestock in the study area.
