Contribution of Agricultural Marketing Co-operatives in Commercialisation Among Smallholder Maize Farmers in Mbozi District, Tanzania

Abstract

Commercialization of agricultural products is one of the key indicators of agricultural sector transformation and development of smallholder farmers. However, limited access to markets has remained one of the contemporary agendas that face smallholder farmers. This article addresses the role of Agricultural Marketing Co-operatives (AMCOS) in maize commercialization among smallholder farmers using a cross-sectional research design. 374 households (203 AMCOS members, 171 non-members) maize growers were randomly sampled for analysis. Data were collected using survey and interview methods. To examine the level of commercialization indexes between the two groups, Weighted Average Index and Propensity Score Matching were used. The results indicated that AMCOS members had 0.29-0.30 higher commercialization index than their counterparts. Moreover, AMCOS members revealed strong marketing abilities in terms of bargaining power, access to market information and link to structured market and demand than non-members. The study concludes that AMCOS are important platform that support and enhance smallholders’ ability towards maize commercialization. The findings of this article are confined to maize crop, which has not been adequately researched. To smallholders, policymakers and scholars, the article informs on the perceived benefits of AMCOS and recommends the best steps toward smallholders’ participation in AMCOS, improved market access and commercialization.