Uncertainty in milk production by smallholders in Tanzania and its implications for investment
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The study evaluates the impact of risk on enterprises of male, female and young farmers operating in the formal and informal smallholder dairy value chains in Tanzania. It also examines the effect of uncertainty on the decision to invest in milk production in the two value chains. Results indicate that youths in the informal dairy value chain face the greatest level of risk followed by men in the formal value chain, and then men in the informal value chain. Women in both value chains and youths in the formal value chain face relatively low risk. Overall, milk production in the informal value chain is found to be substantially riskier than production in the formal chain. Optimal investment triggers are found to be much larger than the conventional triggers and are sensitive to volatility of returns. The results’ managerial and policy implications for inclusive dairy industry development in Tanzania are highlighted.
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Uncertainty in milk production by smallholders in Tanzania and its implications for investment
In: International Food and Agribusiness Management ReviewSearch for other papers by Edgar E. Twine in
Current site
Google Scholar
PubMed
Search for other papers by Amos Omore in
Current site
Google Scholar
PubMed
Search for other papers by Julius Githinji in
Current site
Google Scholar
PubMed
The study evaluates the impact of risk on enterprises of male, female and young farmers operating in the formal and informal smallholder dairy value chains in Tanzania. It also examines the effect of uncertainty on the decision to invest in milk production in the two value chains. Results indicate that youths in the informal dairy value chain face the greatest level of risk followed by men in the formal value chain, and then men in the informal value chain. Women in both value chains and youths in the formal value chain face relatively low risk. Overall, milk production in the informal value chain is found to be substantially riskier than production in the formal chain. Optimal investment triggers are found to be much larger than the conventional triggers and are sensitive to volatility of returns. The results’ managerial and policy implications for inclusive dairy industry development in Tanzania are highlighted.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 310 | 112 | 9 |
| PDF Views & Downloads | 232 | 70 | 7 |
