Effects of Practices of Inputs Entrepreneurs on Upstream Market Participation by Smallholder Dairy Farmers in Tanga and Kilimanjaro

Abstract

Tanzania has the fourth largest cattle herd in Africa with smallholder farmers as the majority. However, dairy productivity per cow has been consistently lower than the potential productivity. Yet, lower uptake of dairy input/service technologies by smallholder dairy farmers is evident. This study investigated the effects of market practices of inputs and services agri-entrepreneurs on market participation by smallholder dairy farmers in Tanga and Kilimanjaro. Specifically, the study characterized dairy inputs and services agri-entrepreneurs‘ business and technology dissemination practices, described the state of dairy inputs and services used by smallholder dairy farmers, and determined the effect of business practices by inputs and services agri-entrepreneurs on the uptake of inputs/services by smallholder dairy farmers. This study used secondary data collected in June 2021 by the International Livestock Research Institute under Maziwa Zaidi II project with a sample of 712 smallholder dairy farmers and 93 inputs and services agri-entrepreneurs. LCA characterized inputs and services agri-entrepreneurs. BIC revealed a 3-class model as the best fit (2153.071). The latent class membership of the input/service entrepreneurs for classes I, II, and III was 37.6% (35), 9.7% (9), and 52.7% (49) respectively. Item response probabilities revealed that class I provided animal health and extension services and maintained linkages with other POs while linking smallholder dairy farmers to AI, health, and extension services providers hence was named ‗High business activities and business promotional practices‘. Class II mainly provided genetic products (AI), delivering to clients on credit with milk as checkoff and genetic and extension services and linked smallholders to AI and extension service providers. It was named ‗Low business activities, Medium business promotional activities‘. Class III mainly sold feeds products and services while providing them on credit with milk as checkoff. This was named ‗Medium business activities, Low business promotional activities‘. Descriptive statistics showed that bull servicing was used more compared to AI. A mean of 2 cattle had been vaccinated, 3 dewormed, 2 tick controlled, and 1 treated while 2 types of feeds had been purchased. OLS Model analyzed the third objective. Latent classes I and II were significant at 1% while latent class III was significant at 5%. Education levels were negatively significant on expenditure on input meaning education did not affect decision to participate in input markets. Moshi Rural district had a negatively significant influence on input expenditure. Training inputs and service agri- vii entrepreneurs on bundling relevant information alongside dairy inputs and services optimally is necessary to accelerate knowledge sharing with farmers.