Effects of non-tariff barriers on maize production and marketing in Songwe region of Tanzania

PhD Thesis

This study assessed the effect of Non-Tariff Barriers (NTBs) on production and marketing of maize for smallholder farmers in Mbozi and Momba Districts located in Songwe region in Tanzania. Specifically, the study pursued the following objectives to; i) determine the percentage contribution of NTBs on transaction costs for smallholder farmers and traders in the two districts (ii) determine the influence of NTBs on market participation decisions for smallholder farmers in the two districts (iii) examine the extent of the effects of NTBs costs on smallholder maize farmers’ price in Mbozi and Momba Districts and (iv) assess the effects of NTBs on maize production and marketing for smallholder farmers in the two districts. Cross sectional survey design was used in gathering primary data. A two-stage stratified sampling procedure was used in the selection of 400 smallholder farmers. Also, 50 traders were randomly selected from the two district markets of Mlowo and Tunduma. The structured questionnaires and focused group discussion were used to collect primary data. To estimate the effect of NTBs on farmers’ decisions on market participation, two stages Heckman and duality models were used. The findings indicate that higher NTBs costs were incurred by farmers in getting clearance at weighbridges in Mbozi and Momba Districts followed by police check points. Decisions on market participation were negatively influenced by NTBs and distance to the market. Additionally, results from t-test indicate that there is a significant difference in NTBs effect on maize prices between farmers in the two districts. The difference in NTBs effects was explained by spatiality that Momba District is closer to Tunduma market. Based on these findings, it is concluded that, the effects of NTBs on price and production are higher for famers living far from the urban markets as opposed to those who live close to the markets. Therefore, the study recommends for the reduction and or removal of the NTBs which impede maize production and marketing among smallholder farmers. This would help the government to achieve its goal of creating high prices in the surplus districts and of attaining low consumer prices in the deficit urban centres.