Abstract:
While many initiatives are focusing on linking farmers in higher governance chains such as contract
farming and other collective actions by farmers themselves, little is known on options for lower levels
of governance which are dominant among smallholder farmers in Tanzania. This study documented
socio-economic and transaction costs variable attn5utes that influence farmers in choosing marketing
governance options. The study surveyed 300 vegetable smallholders of Mgeta Division. Logit
regression with MLE was used to analyse data. Significant attributes were sex (P≤ 0.05), age (P ≤
0.01), pot-nary school education (P ≤ 0.05), and experience (P ≤ 0.05). Age and experience were
negatively related to selling of vegetables in a village market when compared to farm-gate.
Negotiations related costs which were significant at (P ≤ 0.01) were: farmers' location. time taken to
negotiate with buyers, quantity sold, and average cost of transport. These variables (negotiation costs)
were all negatively related to dependent variable (choice of market governance). Action research for
gender mainstreaming in value chains is Important. Policies which support primary school education
are likely to nurture the use of open markets when compared to farm-gate participation. Private and
public support can help in building open air markets in farmers' locations. Improvements in rural and
feeder road networks and a review in fuel taxes are also important to reduce negotiation related costs.
