The Impact of Market Efficiency on Spice Production among Smallholder Farmers in Zanzibar

Erick Kwesigabo; Salum Mohamed; Akinyi Sassi

doi:10.37284/eajbe.8.2.3501

Erick Kwesigabo The Mwalimu Nyerere Memorial Academy
Salum Mohamed The Open University of Tanzania
Akinyi Sassi The Nelson Mandela African Institution of Science and Technology

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Résumé

This study aimed to examine the impact of market efficiency factors on spice production within the smallholder farming community in Zanzibar. An explanatory research design was used, involving a stratified random sample of 269 smallholder farmers, whereas Structural Equation Modelling (SEM) using IBM SPSS Amos 28 was used to test the hypotheses. Structured closed-ended questionnaires were administered randomly to the selected strata of respondents. The results revealed that access to market information and returns has a significant positive impact on spices production, whereas price fluctuations have a significant negative impact on production. The study concluded by affirming that access to market information and returns positively impacted spice production, whereas price fluctuations had a detrimental effect on it. The study therefore recommended that Governments and Policymakers assist in seeking platforms and channels that provide timely insights regarding market conditions, to enhance decision-making among smallholder farmers

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