The Effect of Participation in High-Value Markets on Assets Ownership among Smallholder Vegetable Farmers in Arumeru District, Tanzania

Abstract

High-value market chains offer a promising opportunity for smallholder farmers and have the potential to improve their livelihoods. However, the effect of these markets on livelihood outcomes is not well established. A study was conducted to investigate the effect of participation in high-value markets (HVM) on asset ownership among smallholder vegetable farmers in the Arumeru District. Using the Sustainable Livelihood Approach as a framework, the study applied a cross-sectional research design. Data were collected through household surveys, focus group discussions and key informant interviews. The study aimed to assess the effect of participation in HVM on farmers’ ownership of livelihood assets while addressing potential selection bias. The analysis was conducted using Propensity Score Matching techniques. The findings indicated that farmers who participated in HVM experienced significantly greater improvements in physical, natural, and human assets compared to non-participants (p < 0.01). The study concluded that participation in HVMs positively influences asset ownership among smallholder farmers. To further enhance these effects, ongoing collaboration between state and non-state actors is needed to provide essential business support services to smallholder farmers, increase their productivity, and improve the quality of agricultural commodities. Supporting smallholder farmers in these areas could facilitate their entry into HVMs and ultimately enhance their livelihoods.