Tropentag, September 16 - 18, 2026, Göttingen "Towards multi-functional agro-ecosystems promoting climate-resilient futures"

Trader–farmer business relationships and their implications for varietal turnover, productivity, and grain commercialisation in Tanzania

¹The Alliance of Bioversity International & CIAT, Tanzania
²Taita Taveta University, Kenya
³International Center for Tropical Agriculture, Rwanda
⁴Tanzania Agricultural Research Institute, Tanzania
⁵Tanzania Official Seed Certification Inst. (TOSCI), Tanzania
⁶International Maize and Wheat Improvement Center (CIMMYT), Kenya

Abstract

Scaling farm technologies and innovations have been viewed as a mechanism for revolutionizing agrifood systems, not only for food and nutrition but also for improving the productivity and incomes of farmers. Many technologies and innovations have been produced through research and disseminated through different extension and scaling approaches over the years. Unfortunately, uptake rates for the technologies remain low and, indeed, some do not even get to the farmers’ fields. This is worsened by the fact that the role of traders, processors and aggregators in seed systems, crop productivity and commercialisation is often overlooked. Thus, we combine farm and trader level cross-sectional data from 960 and 976 farmers and traders, respectively, from sorghum, common beans and groundnuts corridors in Tanzania to assess the role of trader-farmer relationship. Controlling for both observed and unobserved heterogeneity, our study finds that a strong, open and trustworthy relationship between traders and farmers translates into higher varietal turnover and yields, a higher degree of commercialisation and incomes among smallholders. We also find that the size of trader business, connection with research institute, and willingness to promote improved varieties play an important role in influencing the traders’ decision to support provision of services to farmers beyond purchasing grains from them. Our results suggest that improving the functioning of agricultural markets is critical in attracting farmers to engage in selling grains to traders. There is a need to invest in multi-stakeholder platforms (MSPs) led by large traders or processors as a vehicle for promoting uptake of improved varieties, productivity and enhanced commercialisation. Finally, gaining a deeper understanding of traders and their interactions with farmers is crucial for shaping policies that promote varietal turnover, boost productivity and commercialisation.

Keywords: Commercialisation, contract, governance norms, seed systems, smallholders, Sub-Sahara Africa, trust, varietal turnover

Contact Address: Justus Ochieng, The Alliance of Bioversity International & CIAT, Arusha, Tanzania, e-mail: justus.ochiengcgiar.org