IDEAS home Printed from https://ideas.repec.org/a/spr/ssefpa/v10y2018i4d10.1007_s12571-018-0792-5.html
   My bibliography  Save this article

Food value chain linkages and household food security in Tanzania

Author

Listed:
  • Raoul Herrmann

    (German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE))

  • Ephraim Nkonya

    (International Food Policy Research Institute (IFPRI))

  • Anja Faße

    (Weihenstephan-Triesdorf University of Applied Sciences)

Abstract

This article investigates smallholder market linkages in food value chains in sub-Saharan Africa, using Tanzania as a case study. Specifically, we analysed the status and drivers of market linkages among farmers, and their impact on agricultural income and food security. The analysis is based on nationally representative household survey data, using a combination of descriptive statistics and econometric approaches. Although most farmers in Tanzania are integrated into agricultural markets, their level of commercialization is very low, with an average of only 30% of their crop production sold. Around 15% of farmers who sell crops have access to potentially more rewarding market linkages (e.g. through cooperatives or contract farming). The econometric results show that, controlling for a number of confounding factors, farmers with market linkages are more commercialized, and receive significantly higher producer prices and crop income than those without such linkages. However, in spite of these positive results, we did not find significant differences in terms of household food security.

Suggested Citation

  • Raoul Herrmann & Ephraim Nkonya & Anja Faße, 2018. "Food value chain linkages and household food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 827-839, August.
  • Handle: RePEc:spr:ssefpa:v:10:y:2018:i:4:d:10.1007_s12571-018-0792-5
    DOI: 10.1007/s12571-018-0792-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12571-018-0792-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s12571-018-0792-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fischer, Elisabeth & Qaim, Matin, 2012. "Gender, Agricultural Commercialization, and Collective Action in Kenya," GlobalFood Discussion Papers 121229, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Marc F. Bellemare & Lindsey Novak, 2017. "Contract Farming and Food Security," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(2), pages 357-378.
    3. Winford H. Masanjala, 2006. "Cash crop liberalization and poverty alleviation in Africa: evidence from Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 231-240, September.
    4. Hugh Wenban-Smith & Anja Faße & Ulrike Grote, 2016. "Food security in Tanzania: the challenge of rapid urbanisation," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(5), pages 973-984, October.
    5. repec:ilo:ilowps:456502 is not listed on IDEAS
    6. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    7. Maghimbi, Sam., 2010. "Cooperatives in Tanzania mainland : revival and growth," ILO Working Papers 994565023402676, International Labour Organization.
    8. Arndt, Channing & McKay, Andy & Tarp, Finn (ed.), 2016. "Growth and Poverty in Sub-Saharan Africa," OUP Catalogue, Oxford University Press, number 9780198744795.
    9. Johann Kirsten & Kurt Sartorius, 2002. "Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?," Development Southern Africa, Taylor & Francis Journals, vol. 19(4), pages 503-529.
    10. Birachi, Eliud & Karume, Katcho & Kyamuhangire, William & Chiuri, Wanjiku & Mugabo, Josaphat & Tumwesigye, K Steven & Kasenge, Valentine & Bonabana-Wabbi, Jackline & Tenywa, Moses M & Nyamwaro, Sospet, 2013. "Expanding market access and value addition in selected agricultural value chains: the role of IAR4D in the Lake Kivu Pilot Learning Site," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(3), pages 1-10, September.
    11. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    12. Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
    13. Mahamadou Roufahi Tankari, 2017. "Cash crops reduce the welfare of farm households in Senegal," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(5), pages 1105-1115, October.
    14. Jayne, T.S. & Yamano, Takashi & Nyoro, James, 2004. "Interlinked credit and farm intensification: evidence from Kenya," Agricultural Economics, Blackwell, vol. 31(2-3), pages 209-218, December.
    15. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    16. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    17. Mendola, Mariapia, 2007. "Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh," Food Policy, Elsevier, vol. 32(3), pages 372-393, June.
    18. Pauw, Karl & Thurlow, James, 2011. "Agricultural growth, poverty, and nutrition in Tanzania," Food Policy, Elsevier, vol. 36(6), pages 795-804.
    19. Maghimbi, Sam., 2010. "Cooperatives in Tanzania mainland revival and growth," ILO Working Papers 995017193002676, International Labour Organization.
    20. Pauw, Karl & Ecker, Olivier & Mazunda, John, 2011. "Agricultural growth, poverty, and nutrition linkages in Malawi:," MaSSP policy notes 8, International Food Policy Research Institute (IFPRI).
    21. Bhagowalia, Priya & Menon, Purnima & Quisumbing, Agnes R. & Soundararajan, Vidhya, 2012. "What Dimensions of Women’s Empowerment Matter Most for Child Nutrition? Evidence Using Nationally Representative Data from Bangladesh:," IFPRI discussion papers 1192, International Food Policy Research Institute (IFPRI).
    22. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    23. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
    24. Herrmann, Raoul T., 2017. "Large-Scale Agricultural Investments and Smallholder Welfare: A Comparison of Wage Labor and Outgrower Channels in Tanzania," World Development, Elsevier, vol. 90(C), pages 294-310.
    25. Bernard, Tanguy & Spielman, David J., 2009. "Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia," Food Policy, Elsevier, vol. 34(1), pages 60-69, February.
    26. Beynon, Jonathan & Jones, Stephen & Yao, Shujie, 1992. "Market reform and private trade in Eastern and Southern Africa," Food Policy, Elsevier, vol. 17(6), pages 399-408, December.
    27. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    28. Burchi, Francesco & De Muro, Pasquale, 2016. "From food availability to nutritional capabilities: Advancing food security analysis," Food Policy, Elsevier, vol. 60(C), pages 10-19.
    29. Kaganzi, Elly & Ferris, Shaun & Barham, James & Abenakyo, Annet & Sanginga, Pascal & Njuki, Jemimah, 2009. "Sustaining linkages to high value markets through collective action in Uganda," Food Policy, Elsevier, vol. 34(1), pages 23-30, February.
    30. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
    31. World Bank, 2015. "Tanzania Poverty Assessment," World Bank Publications - Reports 21871, The World Bank Group.
    32. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    33. Fischer, Elisabeth & Qaim, Matin, 2012. "Gender, Agricultural Commercialization, and Collective Action in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126659, International Association of Agricultural Economists.
    34. Meike Wollni & Manfred Zeller, 2007. "Do farmers benefit from participating in specialty markets and cooperatives? The case of coffee marketing in Costa Rica1," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 243-248, September.
    35. Thankom Arun & Katsushi Imai & Frances Sinha, 2006. "Does the Microfinance Reduce Poverty in India? Propensity Score Matching based on a National-level Household Data," Economics Discussion Paper Series 0625, Economics, The University of Manchester.
    36. Trienekens, Jacques H., 2011. "Agricultural Value Chains in Developing Countries A Framework for Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-32, May.
    37. Neven, David & Odera, Michael Makokha & Reardon, Thomas & Wang, Honglin, 2009. "Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor," World Development, Elsevier, vol. 37(11), pages 1802-1811, November.
    38. Luitfred Kissoly & Anja Faße & Ulrike Grote, 2017. "The integration of smallholders in agricultural value chain activities and food security: evidence from rural Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1219-1235, December.
    39. Frieder Graef & Götz Uckert & Jana Schindler & Hannes Jochen König & Hadijah A. Mbwana & Anja Fasse & Lutengano Mwinuka & Henry Mahoo & Laurent N. Kaburire & Paul Saidia & Yusto Mugisha Yustas & Valer, 2017. "Expert-based ex-ante assessments of potential social, ecological, and economic impacts of upgrading strategies for improving food security in rural Tanzania using the ScalA-FS approach," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1255-1270, December.
    40. Johnston Birchall & Richard Simmons, 2010. "The Co‐Operative Reform Process In Tanzania And Sri Lanka," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(3), pages 467-500, September.
    41. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
    42. Raoul Herrmann & Ulrike Grote, 2015. "Large-scale Agro-Industrial Investments and Rural Poverty: Evidence from Sugarcane in Malawi," Journal of African Economies, Centre for the Study of African Economies, vol. 24(5), pages 645-676.
    43. Jakob Svensson & David Yanagizawa, 2009. "Getting Prices Right: The Impact of the Market Information Service in Uganda," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 435-445, 04-05.
    44. David I. Levine & Gary Painter, 2003. "The Schooling Costs of Teenage Out-of-Wedlock Childbearing: Analysis with a Within-School Propensity-Score-Matching Estimator," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 884-900, November.
    45. Holloway, Garth & Nicholson, Charles & Delgado, Chris & Staal, Steve & Ehui, Simeon, 2000. "Agroindustrialization through institutional innovation: Transaction costs, cooperatives and milk-market development in the east-African highlands," Agricultural Economics, Blackwell, vol. 23(3), pages 279-288, September.
    46. Frank Mmbando & Edilegnaw Wale & Lloyd Baiyegunhi, 2015. "Welfare impacts of smallholder farmers’ participation in maize and pigeonpea markets in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1211-1224, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Charles Peter Mgeni & Klaus Müller & Stefan Sieber, 2018. "Sunflower Value Chain Enhancements for the Rural Economy in Tanzania: A Village Computable General Equilibrium-CGE Approach," Sustainability, MDPI, vol. 11(1), pages 1-22, December.
    2. Luca Tricarico & Andrea Galimberti & Ausilia Campanaro & Chiara Magoni & Massimo Labra, 2020. "Experimenting with RRI tools to Drive Sustainable Agri-Food Research: The SASS Case Study from Sub-Saharan Africa," Sustainability, MDPI, vol. 12(3), pages 1-19, January.
    3. Osabuohien, Evans S. & Efobi, Uchenna R. & Herrmann, Raoul T. & Gitau, Ciliaka M.W., 2019. "Female labor outcomes and large-scale agricultural land investments: Macro-micro evidencefrom Tanzania," Land Use Policy, Elsevier, vol. 82(C), pages 716-728.
    4. Kafle, Kashi & Songsermsawas, Tisorn & Winters, Paul, 2021. "IFAD Research Series Issue 65 - Impacts of agricultural value chain development in a mountainous region: Evidence from Nepal," IFAD Research Series 311008, International Fund for Agricultural Development (IFAD).
    5. Kafle, Kashi & Songsermsawas, T. & Winters, P., 2021. "Impacts of agricultural value chain development in a mountainous region: evidence from Nepal," IWMI Books, Reports H050432, International Water Management Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Biggeri, Mario & Burchi, Francesco & Ciani, Federico & Herrmann, Raoul, 2018. "Linking small-scale farmers to the durum wheat value chain in Ethiopia: Assessing the effects on production and wellbeing," Food Policy, Elsevier, vol. 79(C), pages 77-91.
    2. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    3. Verhofstadt, Ellen & Maertens, Miet, 2013. "Cooperative membership and agricultural performance: Evidence from Rwanda," Working Papers 157389, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    4. Bhanot, Disha & Kathuria, Vinish & Das, Debabrata, 2021. "Can institutional innovations in agri-marketing channels alleviate distress selling? Evidence from India," World Development, Elsevier, vol. 137(C).
    5. Biggeri, Mario & Carraro, Alessandro & Ciani, Federico & Romano, Donato, 2022. "Disentangling the impact of a multiple-component project on SDG dimensions: The case of durum wheat value chain development in Oromia (Ethiopia)," World Development, Elsevier, vol. 153(C).
    6. McNamara, Paul E. & Lee, Han Bum, 2017. "Strengthening Nutrition and Improving Livelihoods through Linking Women Farmers to Markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258091, Agricultural and Applied Economics Association.
    7. Muriithi, Beatrice W. & Matz, Julia Anna, 2015. "Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya," Food Policy, Elsevier, vol. 50(C), pages 80-91.
    8. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin D'Souza, 2018. "Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 865-886, October.
    9. Sara D. Elder, 2019. "The impact of supermarket supply chain governance on smallholder farmer cooperatives: the case of Walmart in Nicaragua," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(2), pages 213-224, June.
    10. Ellen Verhofstadt & Miet Maertens, 2014. "Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 39-52, November.
    11. Luitfred Kissoly & Anja Faße & Ulrike Grote, 2017. "The integration of smallholders in agricultural value chain activities and food security: evidence from rural Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1219-1235, December.
    12. Nuthalapati, Chandra S.R. & Sutradhar, Rajib & Reardon, Thomas & Qaim, Matin, 2020. "Supermarket procurement and farmgate prices in India," World Development, Elsevier, vol. 134(C).
    13. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    14. Benali, Marwan & Brümmer, Bernhard & Afari-Sefa, Victor, 2017. "Small producer participation in export vegetable supply chains and poverty: evidence from different export schemes in Tanzania," GlobalFood Discussion Papers 262583, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    15. Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2020. "Global and local food value chains in Africa: A review," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 143-157, January.
    16. Soullier, Guillaume & Moustier, Paule, 2018. "Impacts of contract farming in domestic grain chains on farmer income and food insecurity. Contrasted evidence from Senegal," Food Policy, Elsevier, vol. 79(C), pages 179-198.
    17. Neda Trifković, 2014. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 949-961, July.
    18. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    19. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    20. Aniseh S. Bro & Daniel C. Clay & David L. Ortega & Maria C. Lopez, 2019. "Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 895-915, April.

    More about this item

    Keywords

    Tanzania; Food value chain; Market linkage; Cooperatives; Impact evaluation;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ssefpa:v:10:y:2018:i:4:d:10.1007_s12571-018-0792-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.