Factors influencing the choice of market channels among cashew nut farmers in Mtwara rural district, Tanzania
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Olivia Severine Kasabago(1)
Department of Marketing, Entrepreneurship and Management, Faculty of Business Management, The Open University of Tanzania
-
Joseph Magali(2*)
Department of Marketing, Entrepreneurship and Management, Faculty of Business Management, The Open University of Tanzania
-
Mato Magobe(3)
Department of Accounting and Finance, The Open University of Tanzania
(*) Corresponding Author
Keywords:
Market Channels, Logistic Regression, Demographic Factors, Market Constraints, Institutional Barriers
Abstract
The cashew nut industry is one of the major agricultural sectors whose performance, through effective policies, can lead to increased economic development and improved welfare for Tanzanian farmers. The study assessed the factors influencing cashew nut production in Mtwara Rural District. Specifically, the study intended to examine the effects of demographic characteristics, market constraints, and institutional arrangements on market channel choice. A structured questionnaire was used to recruit 397 respondents through simple random sampling. Data were analyzed using descriptive and ordinary logistic regression methods. Results revealed that education level, gender, and alternative income sources were major drivers of farmers' market channel choice. Secondary education significantly increased the likelihood of formal market participation. In contrast, male farmers and those with other sources of income relied more on informal channels. Likewise, dealing with market constraints and institutional barriers positively influenced the choice of an informal cashew nuts market channel. The study concludes that policymakers and other actors should work collaboratively to improve the cashew nut marketing channel.
Keywords : Market Channels; Logistic Regression; Demographic Factors; Market Constraints; Institutional Barriers
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References
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https://doi.org/10.1186/s40066-022-00358-5
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ageconsearch.umn.edu/record/358236/files/Paul4032022AJAEES83356.pdf
Hegde, N. G. (2022). Value chain development for improving the income of cashew growers. Journal of Rural Advancement, 10(02).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4407115
Ismail, I. J. (2024). Market participation among smallholder farmers in Tanzania: Determining the dimensionality and influence of psychological contracts. Journal of Agribusiness in Developing and Emerging Economies, 14(2), 217–233. https://doi.org/10.1108/JADEE-07-2021-0183
Jari, B., & Fraser, G. C. G. (2009). An analysis of institutional and technical factors influencing agricultural marketing amongst smallholder farmers in the Kat River Valley, Eastern Cape Province, South Africa. African Journal of Agricultural Research, 4(11), 1129–1137.
https://academicjournals.org/article/article1380898960_Jari%20and%20Fraser.pdf
Jitmun, T., & Kuwornu, J. K. M. (2019). Factors influencing the choice of marketing channels: evidence from dairy farmers in Thailand. International Journal of Value Chain Management, 10(2), 123. https://doi.org/10.1504/IJVCM.2019.099102
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Kimaro, P. J., & Nnko, E. E. (2024). Analysis of the Current Marketing Channels among Small-Scale Coffee and Cashew Nut Farmers’ Households in Tanzania: A Case of Selected Co-Operatives in Coffee and Cashew Nuts Farming Districts. Journal of Management and Science, 14(3), 23–35. https://doi.org/10.26524/jms.14.25
Kirk, R.E., & Beaujean, A.A. (2025). Simple Random Sample. In: Lovric, M. (eds) International Encyclopedia of Statistical Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-69359-9_567
Kiprop, E. K., Okinda, C., Akter, A., & Geng, X. (2020). Factors influencing marketing channel choices for improved indigenous chicken farmers: insights from Baringo, Kenya. British Food Journal, 122(12), 3797–3813.https://doi.org/10.1108/BFJ-11-2019-0841
Kyriazos, T., & Poga, M. (2023). Dealing with multicollinearity in factor analysis: the problem, detections, and solutions. Open Journal of Statistics, 13(3), 404-424. https://doi.org/10.4236/ojs.2023.133020
Ma, W., Sonobe, T., & Gong, B. (2024). Linking farmers to markets: Barriers, solutions, and policy options. Economic Analysis and Policy, 82, 1102-1112. https://doi.org/10.1016/j.eap.2024.05.005
Mang'ana, K. ; Ngaiza, R. ; & Paul, M. (2024). Unlocking the potential of Tanzania's cashew processing industry: A comparative analysis with Côte d’Ivoire and Mozambique. F1000Research, 13, 108.https://doi.org/10.12688/f1000research.143364.1
Noor, S., Tajik, O., & Golzar, J. (2022). Simple random sampling. International Journal of Education & Language Studies, 1(2), 78-82.
https://doi.org/10.22034/ijels.2022.162982
Lukwago, M. M., Micheal Okello, D., & Mugonola, B. (2025). Institutional and technical drivers of intra-household marketing decisions for smallholder farmers in Uganda: evidence from Northern Uganda. Cogent Food & Agriculture, 11(1), 2498775. DOI : 10.1080/20421338.2020.182935
Lukurugu, G. A., Mwalongo, S., Kuboja, N. M., Kidunda, B. R., Mzena, G., Feleke, S., ... & Kapinga, F. A. (2022). Determinants of adoption of enhanced cashew production technologies among smallholder farmers in Mtwara region, Tanzania. Cogent Food & Agriculture, 8(1), 2137058.https://doi.org/10.1080/23311932.2022.2137058
Magakwe, N., & Olorunfemi, O. (2024). A systematic review of the trends, effects, and deterrents of collective marketing participation among smallholder farmers in sub-Saharan Africa. Sustainability, 16(21), 9578.
https://doi.org/10.3390/su16219578
Manda, J., ; Azzarri, C., ; Feleke, S., ; Kotu, B., ; Claessens, L., ; & Bekunda, M. (2021). Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania. PloS one, 16(5), e0250848.
https://doi.org/10.1371/journal.pone.0250848
Manjunath, V., & Girish, M. R. (2016). An analysis of private vegetable market vis-à-vis public vegetable market in Karnataka-a study in Kolar district of Karnataka state. Agriculture Update, 11(2), 173-177.
cabidigitallibrary.org/doi/full/10.5555/20163222626
Mgale, Y. J., & Yunxian, Y. (2020). Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania. Australian Journal of Agricultural and Resource Economics, 64(4), 1239–1259. https://doi.org/10.1111/1467-8489.12380
Mgonja, N. S., & Shausi, G. L. (2022). Challenges facing small-scale cashew nut processors in Ruangwa district, Tanzania: An implication for policy change. European Journal of Agriculture and Food Sciences, 4(3), 1-8.
https://doi.org/10.24018/ejfood.2022.4.3.492
Mmasa, J. J. & Msuya, E. E. (2012). Mapping of the sweet potato value chain linkages between actors, processes and activities in the value chain: A case of “Michembe” and “Matobolwa” products. Sustainable Agriculture Research, 1(1), 130-146. http://dx.doi.org/10.5539/sar.v1n1p130
Mukarumbwa, P., Mushunje, A., Taruvinga, A., Akinyemi, B., & Ngarava, S. (2018). Analysis of factors that influence market channel choice of smallholder vegetable farmers in Mashonaland east province of Zimbabwe. International Journal of Development and Sustainability, 7(2), 734-754.https://isdsnet.com/ijds-v7n2-23.pdf
Marson, M. (2022). Direct access to markets by farmers and the role of traders: Insights from Kenyan and Tanzanian leafy vegetables markets. Studies in Agricultural Economics, 124(2), 66-73. https://doi.org/10.7896/j.2287
Nwafor, C. U. (2021). Marketing channel preference among smallholder cocoyam farmers in South Africa. Journal of Agribusiness and Rural Development, 62(4), 407–414. http://dx.doi.org/10.17306/J.JARD.2021.01507
Omachi, J. U., & Monday, A. (2024). Media Assessment of Cashew Farming, Processing and Marketing for Sustainable Development in Kogi East, Kogi State, Nigeria. GVU Journal of Management and Social Sciences, 9(2), 11-19. https://doi.org/10.5281/zenodo.14712
Rantlo, A. M., & Bohloa, M. (2022). Factors influencing broiler farmers’ participation in contract farming in Lesotho. African Journal of Food, Agriculture, Nutrition and Development, 22(9), 21437-21453. https://doi.org/10.18697/ajfand.114.21050
Saha, A., Sabates-Wheeler, R., & Thompson, J. (2022). Insights into smallholder capacity for agricultural commercialisation: Evidence from four African contexts. The European Journal of Development Research, 34(4), 1757-1802. https://doi.org/10.1057/s41287-021-00414-z
Shrestha, N. (2020). Detecting Multicollinearity in Regression Analysis. American Journal of Applied Mathematics and Statistics, 8(2), 39–42. https://doi.org/10.12691/ajams-8-2-1
Simkus, J. (2023). Stratified Random Sampling: Definition, Examples. 13 October 2025.
Singh, P., Singh, S., & Paprzycki, M. (2023). Detection and elimination of multicollinearity in regression analysis. International Journal of Knowledge-Based and Intelligent Engineering Systems, 27(1), 105-111.https://doi.org/10.3233/KES-221622
Sori, O., & Adugna, M. (2022). Determinants of groundnut producers’ market channel choice in Western Oromia region, Ethiopia. Journal of Agriculture and Food Research, 7, 100277. https://doi.org/10.1016/j.jafr.2022.100277
Sreedevi, S. R., & Shanmugam, P. V. (2024). Factors influencing market channels selection for small and marginal vegetable farmers in Kerala, India. International Journal of Value Chain Management, 15(1), 98-118.
https://doi.org/10.1504/IJVCM.2024.140373
Teame, G. T., & Yacob, M. P. (2023). Smallholder vegetable farmers’ choice of agricultural marketing channels in Maekel Region, Eritrea. Business and Economic Research, 13(4), 142-157. https://doi.org/10.5296/ber.v13i4.21492
Yaseen, A., Bryceson, K., & Mungai, A. N. (2018). Commercialization behaviour in production agriculture : The overlooked role of market orientation. Journal of Agribusiness in Developing and Emerging Economies, 8(3), 579-602. https://doi.org/10.1108/JADEE-07-2017-0072
Waje, S. S., Shano, B. K., & Walelign, S. Z. (2025). Unpacking cassava market dynamics: exploring the determinants affecting market participation and channel choices in South Ethiopia. Discover Sustainability, 6(1), 322. https://doi.org/10.1007/s43621-025-01108-w
Wanasinghe, P., & Sachitra, V. (2022). Determinants of Market Channel Choices by Vegetable Farmers in Sri Lanka. South Asian Journal of Social Studies and Economics, 1–15. https://doi.org/10.9734/sajsse/2022/v13i430362
Zhu, M., Shen, C., Tian, Y., Wu, J., & Mu, Y. (2022). Factors affecting smallholder farmers’ marketing channel choice in China with multivariate logit model. Agriculture, 12(9), 1441.https://doi.org/10.3390/agriculture12091441
Bannor, R. K., Abele, S., Kyire, S. K. C., Oppong-Kyeremeh, H. & Mensah, E. (2019). Value chains and comparative advantage assessment of the Ghanaian cashew sector. International Journal of Value Chain Management, 10(3), 196-218.https://doi.org/10.1504/IJVCM.2019.100925
Changalima, I. A., & Ismail, I. J. (2022). Agriculture supply chain challenges and smallholder maize farmers’ market participation decisions in Tanzania. Tanzania journal of agricultural sciences, 21(1), 104-120.
https://www.ajol.info/index.php/tjags/article/download/230303/217425
Cashew Board of Tanzania (2025). MAMCU sells 35,445,155 kilos of cashews at a top price of Tsh 2,510. https://www.cashew.go.tz/mamcu-sells-35445155-kilos-of-cashews-at-a-top-price-of-tsh-2510/
Kumar, P., Mishra, S., Khanna, V., Roy, P., Nayak, A., Baldodiya, V. K., ... & Pundir, R. S. (2023). Impact of marketing reforms on farm-market linkages. In Sustainable Food Value Chain Development: Perspectives from Developing and Emerging Economies (pp. 239-257). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-19-6454-1_12
Dogeje, F., Ngaruko, D., & Mpeta, D. (2024). Farmer’s literacy and contract farming participation in Tanzania’s cash crops agriculture: Application of human capital theory. Discover Agriculture, 2(1), 86. https://doi.org/10.1007/s44279-024-00097-0
Dube, L. (2020). Factors Influencing Market Participation by Smallholder Farmers in Masvingo and Manicaland Provinces, Zimbabwe. International Journal of Agricultural Economics, 5(6), 313–320. DOI: 10.11648/j.ijae.20200506.20
Haile, K., Gebre, E., & Workye, A. (2022). Determinants of market participation among smallholder farmers in Southwest Ethiopia: double-hurdle model approach. Agriculture & Food Security, 11(1), 18.
https://doi.org/10.1186/s40066-022-00358-5
Haritha, P., & Ushadevi, K. N. (2022). The trend in area, production, productivity of cashew nut in India with special reference to Kerala. Asian Journal of Agricultural Extension, Economics & Sociology, 40(3), 1-8.
ageconsearch.umn.edu/record/358236/files/Paul4032022AJAEES83356.pdf
Hegde, N. G. (2022). Value chain development for improving the income of cashew growers. Journal of Rural Advancement, 10(02).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4407115
Ismail, I. J. (2024). Market participation among smallholder farmers in Tanzania: Determining the dimensionality and influence of psychological contracts. Journal of Agribusiness in Developing and Emerging Economies, 14(2), 217–233. https://doi.org/10.1108/JADEE-07-2021-0183
Jari, B., & Fraser, G. C. G. (2009). An analysis of institutional and technical factors influencing agricultural marketing amongst smallholder farmers in the Kat River Valley, Eastern Cape Province, South Africa. African Journal of Agricultural Research, 4(11), 1129–1137.
https://academicjournals.org/article/article1380898960_Jari%20and%20Fraser.pdf
Jitmun, T., & Kuwornu, J. K. M. (2019). Factors influencing the choice of marketing channels: evidence from dairy farmers in Thailand. International Journal of Value Chain Management, 10(2), 123. https://doi.org/10.1504/IJVCM.2019.099102
Kandi, L. P., Ma, S., Xu, Z., & Dooley, K. E. (2025). Women in agricultural marketing: A systematic review of motivations, opportunities, and challenges. Outlook on Agriculture, 54(1), 3-15. https://doi.org/10.1177/00307270241305644
Kimaro, P. J., & Nnko, E. E. (2024). Analysis of the Current Marketing Channels among Small-Scale Coffee and Cashew Nut Farmers’ Households in Tanzania: A Case of Selected Co-Operatives in Coffee and Cashew Nuts Farming Districts. Journal of Management and Science, 14(3), 23–35. https://doi.org/10.26524/jms.14.25
Kirk, R.E., & Beaujean, A.A. (2025). Simple Random Sample. In: Lovric, M. (eds) International Encyclopedia of Statistical Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-69359-9_567
Kiprop, E. K., Okinda, C., Akter, A., & Geng, X. (2020). Factors influencing marketing channel choices for improved indigenous chicken farmers: insights from Baringo, Kenya. British Food Journal, 122(12), 3797–3813.https://doi.org/10.1108/BFJ-11-2019-0841
Kyriazos, T., & Poga, M. (2023). Dealing with multicollinearity in factor analysis: the problem, detections, and solutions. Open Journal of Statistics, 13(3), 404-424. https://doi.org/10.4236/ojs.2023.133020
Ma, W., Sonobe, T., & Gong, B. (2024). Linking farmers to markets: Barriers, solutions, and policy options. Economic Analysis and Policy, 82, 1102-1112. https://doi.org/10.1016/j.eap.2024.05.005
Mang'ana, K. ; Ngaiza, R. ; & Paul, M. (2024). Unlocking the potential of Tanzania's cashew processing industry: A comparative analysis with Côte d’Ivoire and Mozambique. F1000Research, 13, 108.https://doi.org/10.12688/f1000research.143364.1
Noor, S., Tajik, O., & Golzar, J. (2022). Simple random sampling. International Journal of Education & Language Studies, 1(2), 78-82.
https://doi.org/10.22034/ijels.2022.162982
Lukwago, M. M., Micheal Okello, D., & Mugonola, B. (2025). Institutional and technical drivers of intra-household marketing decisions for smallholder farmers in Uganda: evidence from Northern Uganda. Cogent Food & Agriculture, 11(1), 2498775. DOI : 10.1080/20421338.2020.182935
Lukurugu, G. A., Mwalongo, S., Kuboja, N. M., Kidunda, B. R., Mzena, G., Feleke, S., ... & Kapinga, F. A. (2022). Determinants of adoption of enhanced cashew production technologies among smallholder farmers in Mtwara region, Tanzania. Cogent Food & Agriculture, 8(1), 2137058.https://doi.org/10.1080/23311932.2022.2137058
Magakwe, N., & Olorunfemi, O. (2024). A systematic review of the trends, effects, and deterrents of collective marketing participation among smallholder farmers in sub-Saharan Africa. Sustainability, 16(21), 9578.
https://doi.org/10.3390/su16219578
Manda, J., ; Azzarri, C., ; Feleke, S., ; Kotu, B., ; Claessens, L., ; & Bekunda, M. (2021). Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania. PloS one, 16(5), e0250848.
https://doi.org/10.1371/journal.pone.0250848
Manjunath, V., & Girish, M. R. (2016). An analysis of private vegetable market vis-à-vis public vegetable market in Karnataka-a study in Kolar district of Karnataka state. Agriculture Update, 11(2), 173-177.
cabidigitallibrary.org/doi/full/10.5555/20163222626
Mgale, Y. J., & Yunxian, Y. (2020). Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania. Australian Journal of Agricultural and Resource Economics, 64(4), 1239–1259. https://doi.org/10.1111/1467-8489.12380
Mgonja, N. S., & Shausi, G. L. (2022). Challenges facing small-scale cashew nut processors in Ruangwa district, Tanzania: An implication for policy change. European Journal of Agriculture and Food Sciences, 4(3), 1-8.
https://doi.org/10.24018/ejfood.2022.4.3.492
Mmasa, J. J. & Msuya, E. E. (2012). Mapping of the sweet potato value chain linkages between actors, processes and activities in the value chain: A case of “Michembe” and “Matobolwa” products. Sustainable Agriculture Research, 1(1), 130-146. http://dx.doi.org/10.5539/sar.v1n1p130
Mukarumbwa, P., Mushunje, A., Taruvinga, A., Akinyemi, B., & Ngarava, S. (2018). Analysis of factors that influence market channel choice of smallholder vegetable farmers in Mashonaland east province of Zimbabwe. International Journal of Development and Sustainability, 7(2), 734-754.https://isdsnet.com/ijds-v7n2-23.pdf
Marson, M. (2022). Direct access to markets by farmers and the role of traders: Insights from Kenyan and Tanzanian leafy vegetables markets. Studies in Agricultural Economics, 124(2), 66-73. https://doi.org/10.7896/j.2287
Nwafor, C. U. (2021). Marketing channel preference among smallholder cocoyam farmers in South Africa. Journal of Agribusiness and Rural Development, 62(4), 407–414. http://dx.doi.org/10.17306/J.JARD.2021.01507
Omachi, J. U., & Monday, A. (2024). Media Assessment of Cashew Farming, Processing and Marketing for Sustainable Development in Kogi East, Kogi State, Nigeria. GVU Journal of Management and Social Sciences, 9(2), 11-19. https://doi.org/10.5281/zenodo.14712
Rantlo, A. M., & Bohloa, M. (2022). Factors influencing broiler farmers’ participation in contract farming in Lesotho. African Journal of Food, Agriculture, Nutrition and Development, 22(9), 21437-21453. https://doi.org/10.18697/ajfand.114.21050
Saha, A., Sabates-Wheeler, R., & Thompson, J. (2022). Insights into smallholder capacity for agricultural commercialisation: Evidence from four African contexts. The European Journal of Development Research, 34(4), 1757-1802. https://doi.org/10.1057/s41287-021-00414-z
Shrestha, N. (2020). Detecting Multicollinearity in Regression Analysis. American Journal of Applied Mathematics and Statistics, 8(2), 39–42. https://doi.org/10.12691/ajams-8-2-1
Simkus, J. (2023). Stratified Random Sampling: Definition, Examples. 13 October 2025.
Singh, P., Singh, S., & Paprzycki, M. (2023). Detection and elimination of multicollinearity in regression analysis. International Journal of Knowledge-Based and Intelligent Engineering Systems, 27(1), 105-111.https://doi.org/10.3233/KES-221622
Sori, O., & Adugna, M. (2022). Determinants of groundnut producers’ market channel choice in Western Oromia region, Ethiopia. Journal of Agriculture and Food Research, 7, 100277. https://doi.org/10.1016/j.jafr.2022.100277
Sreedevi, S. R., & Shanmugam, P. V. (2024). Factors influencing market channels selection for small and marginal vegetable farmers in Kerala, India. International Journal of Value Chain Management, 15(1), 98-118.
https://doi.org/10.1504/IJVCM.2024.140373
Teame, G. T., & Yacob, M. P. (2023). Smallholder vegetable farmers’ choice of agricultural marketing channels in Maekel Region, Eritrea. Business and Economic Research, 13(4), 142-157. https://doi.org/10.5296/ber.v13i4.21492
Yaseen, A., Bryceson, K., & Mungai, A. N. (2018). Commercialization behaviour in production agriculture : The overlooked role of market orientation. Journal of Agribusiness in Developing and Emerging Economies, 8(3), 579-602. https://doi.org/10.1108/JADEE-07-2017-0072
Waje, S. S., Shano, B. K., & Walelign, S. Z. (2025). Unpacking cassava market dynamics: exploring the determinants affecting market participation and channel choices in South Ethiopia. Discover Sustainability, 6(1), 322. https://doi.org/10.1007/s43621-025-01108-w
Wanasinghe, P., & Sachitra, V. (2022). Determinants of Market Channel Choices by Vegetable Farmers in Sri Lanka. South Asian Journal of Social Studies and Economics, 1–15. https://doi.org/10.9734/sajsse/2022/v13i430362
Zhu, M., Shen, C., Tian, Y., Wu, J., & Mu, Y. (2022). Factors affecting smallholder farmers’ marketing channel choice in China with multivariate logit model. Agriculture, 12(9), 1441.https://doi.org/10.3390/agriculture12091441
Published
2026-07-01
How to Cite
Kasabago, O., Magali, J., & Magobe, M. (2026). Factors influencing the choice of market channels among cashew nut farmers in Mtwara rural district, Tanzania. Journal of Management : Small and Medium Enterprises (SMEs), 19(2), 645-659. https://doi.org/10.35508/jom.v19i2.27397
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Articles
