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Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania

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  • Mgale, Yohana James
  • Yunxian, Yan

Abstract

Rice production is an increasing source of income and food security for smallholder farmers in many parts of Tanzania. Improving market access for rice farmers is essential to raise rural incomes and reduce poverty. This paper aims to determine the most efficient rice marketing channel and analyse the factors affecting marketing channel choices by smallholder rice farmers. Marketing efficiency was tested using Acharya and Aggarwal’s composite index method. A multinomial logit model was used to analyse the marketing channel choices. The results showed that the miller– wholesaler marketing channel is the most efficient. The results show that most farmers in rural areas still sell their rice to local collectors because of failure, fear or inability by farmers to venture out of the farm gate into the markets. The findings suggest that there is a need to improve rural infrastructure, market information systems, smallholder access to productive assets, prudent use of credit and strengthening collective action through well-organised farmer groups in the country.

Suggested Citation

  • Mgale, Yohana James & Yunxian, Yan, 2020. "Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    • Handle: RePEc:ags:aareaj:342933
    DOI: 10.22004/ag.econ.342933
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    Cited by:

    1. Aneteneh Ashebir & Tibebu Legesse & Girma Gezimu Gebre & Teshome Kassahun, 2025. "Smallholders’ market outlet choice decision: the case of bamboo producer farmers in Sidama Regional State, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-18, December.
    2. Daniel Musau Wambua & Samuel N. Ndirangu & Hezron Mogaka & Bernard M. Gichimu, 2025. "Determinants of the produced coffee volumes and choice of marketing channels among smallholder coffee farmers in Embu and Kirinyaga counties, Kenya," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-9, December.
    3. Sharon, M. Mary & Suseela, K. & Shalendra & Rao, M. Srinivasa & Ramesh, D., 2025. "Determinants of Marketing Channel Choices among Paddy Farmers in Andhra Pradesh, India: Insights into Electronic Negotiable Warehouse Receipts (e-NWRs)," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 43(4), pages 1-6.
    4. K. Nirmal Ravi Kumar & G. Mohan Naidu & D. Suresh Kumar & Adinan Bahahudeen Shafiwu & Ishaque Mahama, 2026. "A multivariate probit analysis of market outlet decision-making of smallholder tomato producers," SN Business & Economics, Springer, vol. 6(1), pages 1-32, January.
    5. Mohamed Said, 2023. "A Comprehensive Overview of Challenges and Prospects in Large-Scale Rice Production Among Farmers in Jawhar, Middle Shabelle, Somalia," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 52(5), pages 44155-44163, September.
    6. Edet, Glory Emmanul & Akpan, Sunday Brownson & Patrick, Ini-mfon Vincent, 2024. "Marketing channel choice and its determinants among small-scale oil palm fruit farmers in Akwa Ibom State, the southern region of Nigeria," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 14(02).
    7. Yu Zhang & Zhenzhen Lin & Renhui Zhang & Kai Zhao, 2025. "The impact of digital capabilities on farmers’ choice of marketing channels: evidence from rural areas of the Yellow River Basin in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    8. Jiping Wang & Jun He, 2024. "Livelihood resilience in context of crop booms: insights from Southwest China," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 41(4), pages 1755-1772, December.
    9. Pankaj Thakur & Piyush Mehta & Amit Guleria & Divyanshu & Pardeep Singh & Prashant Sharma & Rahul Kumar Tiwari & Milan Kumar Lal & Ravinder Kumar, 2025. "Determinants of farmers’ choice for agricultural output marketing channels of tomato (Solanum lycopersicum): an empirical evidence from north-western Himalayan region," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 10497-10521, May.

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