Volume 3, Issue 5, September 2018, Page: 103-111
Effects of Small-Scale Agricultural Crop Commercialisation on Rural Household Welfare in Tanzania: A Case Study of Liwale District, Lindi Region
Nelson Ochieng, Department of Economics and Social Studies, School of Spatial Planning and Social Sciences, Ardhi University, Dar es Salaam, Tanzania
Aloyce Hepelwa, Department of Agricultural Economics and Business, College of Agricultural Sciences and Fisheries Technology, University of Dar es Salaam, Dar es Salaam, Tanzania
Received: Sep. 8, 2018;       Accepted: Sep. 26, 2018;       Published: Oct. 22, 2018
DOI: 10.11648/j.ijae.20180305.12      View  362      Downloads  50
Abstract
This study aimed at examining the effect of crop commercialisation on rural households’ poverty in Tanzania. The household survey data was collected from a sample of 389 rural households. Commercialisation index was used to estimate the level of household crop commercialisation. The principal component analysis was used to develop a household welfare index which was then clustered to identify poor and non-poor households through cluster analysis, the method automatically guided the decision retaining two clusters by calculating the measure-of-fit that is Bayesian Information Criterion (BIC). To examine the factors affecting the household poverty status, a logistic model was employed. Results revealed that the majority (65.6%) of the households are poor. The level of crop commercialisation is averaged to 66% indicating a commercialised farming practice. The results further showed that crop commercialisation, women participation in crop income allocation, off-farm income, access to extension services and household size significantly reduce household poverty while household head’s age had an adverse effect. The study suggests that the small and medium agricultural processing units in rural areas should be given priorities and strengthened since they are crucial to promoting the level of commercialisation among rural households. Furthermore, in periods of sufficient and excess harvest, the crops trade restrictions with the neighbour countries should be eliminated to increase the level of commercialisation and earnings to the local rural farmers.
Keywords
Agriculture, Commercialisation, Rural, Welfare
To cite this article
Nelson Ochieng, Aloyce Hepelwa, Effects of Small-Scale Agricultural Crop Commercialisation on Rural Household Welfare in Tanzania: A Case Study of Liwale District, Lindi Region, International Journal of Agricultural Economics. Vol. 3, No. 5, 2018, pp. 103-111. doi: 10.11648/j.ijae.20180305.12
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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