Determinants of commercialization among smallholder maize farmers in Tanzania

Abstract

Agriculture is fundamental to Tanzania’s economic development with smallholders producing 85% of the nation’s maize. However, their market participation remains constrained. This study eximines determinants of maize commercialization among smallholder farmers in Tanzania, focusing on household characteristics, assets, access to information, and market engagement. Using data from 1,529 households drawn fromWave 5 of the Tanzania National Panel Survey and applying Tobit regression model, the study identifies key factors influencing the intensity of commercialization. Durable assets ownership, market information and number of adult household members significantly enhence maize commercialization. Conversely, higher household income, unmarried household head, older age, and larger plot sizes are associated within lower levels of commercialization. These findings suggest that while asset ownership and information access support commercialization by easing the separation of production and consumption decision, social-cultural factors often override profit-maximizing behaviour. Wealthier and older farmers tend to prioritize household food security and kinship affairs over maize sales, while land and labor decisions are shaped by inheritance norms and gender roles. The study recommends multi-pronged policy approach, including improved access to finance, strengthern digital and extension-based information systems, enhanced,market infrastructure, and targeted support for women and youth, alongside sustainable intensification strategies to improve productivity and resilience.