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• EXPLORING THE MEDIATION EFFECT OF PERCEIVED USEFULNESS ON CROP DIVERSIFICATION DRIVERS AMONG SMALLHOLDER COCOA FARMERS IN TANZANIA

  Godfrey Molela

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  The living standard of smallholder cocoa farmers in Tanzania was still low despite the recent transformation in marketing structure which led to the sharp rise in price. This study aimed at examining the drivers for smallholder cocoa farmers in Kilombero, Tanzania to engage in multiple crops farming as the means of poverty alleviation. Based on the cross-sectional survey design, primary data were collected from 501 cocoa farmers obtained through a random selection process that was conducted in their respective 162 agricultural marketing and cooperative societies (AMCOS) found in Kilombero. Results from covariance-based structural equation modeling (SEM) revealed that, cocoa market price, payment waiting time, farm size and cocoa farm income played significant roles in cocoa farmers’ decisions to invest while taking into account their perceptions of success. It was only the off-farm income factor that was found to have no statistical significance on farmers’ decision to invest while considering the mediation effect of perception. The study just assessed the investment decisions by smallholder cocoa farmers in Tanzania. Policy makers need to enhance the marketing factors such as cocoa price and payment time to boost farmers’ financial muscles. Meanwhile, farmers themselves are advised to take measures to boost production by increasing farm sizes while adopting better agronomic as per extension officers’ training.This study contributed to knowledge gap by exploring the cocoa-related factors that affect the stallholders’ decision to invest in crop diversification other than the non-cocoa factors that were investigated in previous studies.

• ENHANCING AGRICULTURAL MARKET EFFICIENCY THROUGH THE INTEGRATION OF VALUE CHAINS INTO TANZANIA’S AGRICULTURAL COMMODITY EXCHANGE AND WAREHOUSE RECEIPT SYSTEM

  Godfrey Molela

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  Enhancement of small-scale agricultural performance is undoubtedly one of the Tanzanian government’s initiatives toward an industrialized economy as stipulated in “Intergrated Industrial Development Strategy 2025”. The coordination of agricultural commodity exchange market operations with those of warehouse receipt system was aimed at improving the forward market linkages for agricultural products from small-scale farming. However, due to the growth of the sector, it became imperative to review the marketing structure in place to align with the new changes. This study was conducted to assess a need of upgrading the marketing structure for small scale agribusinesses by focusing on sunflower sub-sector. Primary data were collected from 399 sunflower farmers from Kondoa and Itigi district councils based on cross-sectional survey design. The gross margin analysis revealed that, smallholder farmers engaged in sunflower oil business earned 5.085 times more than those who just sell unprocessed seeds. The secondary data from Tanzania corporation development commission (TCDC), Tanzania mercantile exchange (TMX) and warehouse receipt regulatory board (WRRB) showed that, the current marketing structure did not support the trading of processed agricultural products. It was therefore recommended to upgrade that system in place to have a designated window for trading the value added agricultural products for improved performance.