IDEAS home Printed from https://ideas.repec.org/p/ags/aaae16/246961.html
   My bibliography  Save this paper

Farmers’ preference for bundled input-output markets and implications for adapted dairy hubs in Tanzania – a choice experiment

Author

Listed:
  • Rao, E.J.O.
  • Mtimet, N.
  • Twine, E.
  • Baltenweck, I.
  • Omore, A.

Abstract

Dairy business hubs present opportunities for efficiently linking farmers to input and output markets. Yet participation by smallholder dairy farmers in these hubs will only be realized if the hub options are adapted to fit the needs of farmers. In this study we have analyzed preference for dairy business hubs in Tanzania where ILRI is currently implementing adapted hub options. Using survey data from smallholder dairy producers from Tanga and Morogoro and applying the choice experiment method we find significant preference for hub options with higher milk prices and payment for milk on a fortnight rather than cash basis. Farmers also prefer hub options that bundle milk marketing with input provision. For bundled inputs, smallholder dairy farmers prefer hub options that allow payment for such inputs via credit or check-off rather than cash. Our analyses also reveal significant heterogeneity in preference among farmers hence the need for advanced analytical approaches that can handle such heterogeneity. Emerging dairy hubs in Tanzania should be supported to either establish in-house input provision arrangements or to enter into contracts with major agro-input dealers in their environs.

Suggested Citation

  • Rao, E.J.O. & Mtimet, N. & Twine, E. & Baltenweck, I. & Omore, A., 2016. "Farmers’ preference for bundled input-output markets and implications for adapted dairy hubs in Tanzania – a choice experiment," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246961, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae16:246961
    DOI: 10.22004/ag.econ.246961
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/246961/files/298.%20Choice%20experiments%20in%20Tanzania.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.246961?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
    ---><---

    References listed on IDEAS

    as
    1. Mujawamariya, Gaudiose & D’Haese, Marijke & Speelman, Stijn, 2013. "Exploring double side-selling in cooperatives, case study of four coffee cooperatives in Rwanda," Food Policy, Elsevier, vol. 39(C), pages 72-83.
    2. Helen Markelova & Esther Mwangi, 2010. "Collective Action for Smallholder Market Access: Evidence and Implications for Africa," Review of Policy Research, Policy Studies Organization, vol. 27(5), pages 621-640, September.
    3. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    4. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, November.
    5. 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.
    6. Green, Paul E & Srinivasan, V, 1978. "Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 5(2), pages 103-123, Se.
    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. Twine, Edgar E. & Omore, Amos & Githinji, Julius, 2018. "Uncertainty in milk production by smallholders in Tanzania and its implications for investment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(01).

    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. Kevin W. Maina & Martin C. Parlasca & Elizaphan J. O. Rao & Matin Qaim, 2024. "Farmer‐friendly delivery of veterinary services: Experimental insights from the Kenyan dairy sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(3), pages 829-846, September.
    2. Shumeta, Zekarias & D'Haese, Marijke, 2016. "Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.
    3. Walke, Maria & Mtimet, Nadhem & Baker, Derek & Lindahl, Johanna & Hartmann, Monika & Grace, Delia, 2014. "Kenyan perceptions of aflatoxin: an analysis of raw milk consumption," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182729, European Association of Agricultural Economists.
    4. Hendrawan, Dienda & Musshoff, Oliver, 2024. "Smallholders' preferred attributes in a subsidy program for replanting overaged oil palm plantations in Indonesia," Ecological Economics, Elsevier, vol. 224(C).
    5. Álvarez-Farizo, Begoña & Gil, José M. & Howard, B.J., 2009. "Impacts from restoration strategies: Assessment through valuation workshops," Ecological Economics, Elsevier, vol. 68(3), pages 787-797, January.
    6. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    7. Dennis Etemesi Olumeh & Dagmar Mithöfer, 2024. "Impact of collective action on household welfare: Empirical evidence from baobab collectors in Malawi," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 385-411, June.
    8. Jacob Ladenburg & Mette Andersen Nexø & Bryan Cleal & Frederik Thuesen, 2023. "Willingness to pay heterogeneity for accommodating job attributes among people with diabetes," LABOUR, CEIS, vol. 37(4), pages 626-654, December.
    9. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).
    10. Mtimet, Nadhem & Walke, Maria & Baker, Derek & Lindahl, Johanna & Hartmann, Monika & Grace, Delia, 2015. "Kenyan Awareness of Aflatoxin: An Analysis of Processed Milk Consumers," 2015 Conference, August 9-14, 2015, Milan, Italy 212504, International Association of Agricultural Economists.
    11. Mtimet, Nadhem & Ujiie, Kiyokazu & Kashiwagi, Kenichi & Zaibet, Lokman & Nagaki, Masakazu, 2011. "The effects of Information and Country of Origin on Japanese Olive Oil Consumer Selection," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114642, European Association of Agricultural Economists.
    12. Fanghella, Valeria & Faure, Corinne & Guetlein, Marie-Charlotte & Schleich, Joachim, 2022. "Discriminatory subsidies for energy-efficient technologies and the role of envy," Resource and Energy Economics, Elsevier, vol. 68(C).
    13. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    14. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.
    15. Schleich, Joachim & Faure, Corinne & Guetlein, Marie-Charlotte & Tu, Gengyang, 2020. "Conveyance, envy, and homeowner choice of appliances," Energy Economics, Elsevier, vol. 89(C).
    16. Veneziani, Mario & Sckokai, Paolo & Moro, Daniele, 2012. "Consumers’ willingness to pay for a functional food," 2012 First Congress, June 4-5, 2012, Trento, Italy 124101, Italian Association of Agricultural and Applied Economics (AIEAA).
    17. Asinyaka Michael, 2019. "Willingness to Pay for Energy Efficient Refrigerating Appliances in Accra, Ghana: A Choice Experiment Approach," Review of Economics, De Gruyter, vol. 70(1), pages 15-39, April.
    18. Annkathrin Wahbi & Oliver Musshoff, 2024. "Unlocking rural resilience: Exploring innovative digital saving solutions for farming households in Mali," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(3), pages 931-954, September.
    19. Martin O'Connell & Pierre Dubois & Rachel Griffith, 2022. "The Use of Scanner Data for Economics Research," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 723-745, August.
    20. John K. Dagsvik & Zhiyang Jia, 2016. "Labor Supply as a Choice Among Latent Jobs: Unobserved Heterogeneity and Identification," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(3), pages 487-506, April.

    More about this item

    Keywords

    Livestock Production/Industries; Marketing; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aaae16:246961. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    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.