Socio-economic determinants of household participation in large-scale agricultural investments and its influence on livelihood outcomes in Kilombero Valley, Tanzania
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Date
2018
Authors
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Publisher
Sokoine University of Agriculture
Abstract
Large-scale agricultural investments have the potential of improving household livelihood
outcomes among households participating in the out-grower schemes and in the investor
farm wage employment. However, there is no consensus whether large-scale agricultural
investments generate better livelihood outcomes for participating households. This study
was conducted in Kilombero Valley in Tanzania to examine socio-economic determinants
of household participation in large-scale agricultural investments and the influence of
socio-economic characteristics and large-scale agricultural investments on household
livelihood outcomes. Data were collected through Key informant Interviews (KIIs), Focus
Group Discussions (FGDs) and involving a sample of 376 households in the survey.
Content analysis was used to analyse qualitative data. Quantitative data were analysed
using Statistical Package for Social Sciences (SPSS). The analysis was done using the
following techniques: descriptive statistics, multiple responses analysis, binary logistic
regression, One Way Analysis of Variance (ANOVA), independent samples t-test and
multiple regression. The results show that there were associations between out-growers
scheme opportunities and household headship with Male-Headed Households (MHHs)
enjoying more benefits. There were differences between households participating in
sugarcane out-grower scheme, the non-participants and investor farm wage employment in
terms of livelihood outcomes (p < 0.05) with MHHs having higher livelihood outcomes.
There was a difference in livelihood outcomes by household headship (p
0.05) and
MHHs had higher livelihood outcomes. The most important predictors of household
participation in the out-grower schemes were age, household headship, and group
membership, access to credit, distance to investor, asset stocks and asset ownership
(p < 0.05). Household participation in the investor farm wage employment was influenced
by age, household headship, marital status, land size, asset stocks and income (p < 0.05). The age of household head, years of schooling, household size, land size, group
membership, household participation in the out-grower scheme, and livelihood strategies
had influence on household livelihood outcomes (p < 0.05). Therefore, MHHs
participating in the out-grower schemes derived more benefits in terms of opportunities
and showed possibilities of having higher livelihood outcomes than FHHs. Households’
participation in the out-grower scheme is influenced by socio-economic characteristics
including gender variables. Also, household participation in the investor farm wage
employment reflected gender differences with MHHs and married household heads having
higher chances of participating in the investor farm employment. Out-growers benefit
more from large-scale agricultural investments compared to investor farm workers and to
non-participants. Household livelihood outcomes depend on household socio-economic
characteristics and household participation in large-scale agricultural investment through
the out-grower schemes. The study recommends that Local Government Authorities and
non-governmental organizations involved in promoting livelihood improvement through
large-scale agricultural investments should train out-growers on the diversification of
livelihood strategies, group strengthening and promoting gender dialogues in the
community with a view to changing gender norms that discriminate against FHHs from
participating in the out-grower schemes as well as promoting FHHs ownership of
sugarcane land. Out-grower associations, in collaboration with investors, should set up
plans to ensure that there is a representation of out-growers in every decision making
process that affects their payments and raise household livelihood outcomes by raising the
minimum wages of those working in the investor farms.
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Thesis
Keywords
Socio-economic determinants, Large-scale agricultural investments, Livelihood outcomes, Kilombero Valley, Tanzania