Title: Effectiveness of collective action in reducing transaction cost for smallholder paddy farmers in Tanzania

Authors: Tosin K. Gbadegesin; Labode Popoola

Addresses: Centre for Sustainable Development, University of Ibadan, Ibadan, Oyo, Nigeria ' Centre for Sustainable Development, University of Ibadan, Ibadan, Oyo, Nigeria

Abstract: The majority of smallholder farmers (SHF) in developing countries are located in remote areas with poor infrastructure and they often fail to participate in markets due to the high-transaction costs involved. Collective Action (CA) has become an important strategy for SHF in developing countries to remain competitive in rapidly changing markets and has been tagged as a popular means of reducing transaction costs. This study was carried out to show the multifaceted problems of CA and to access the effectiveness of CA in reducing transaction costs for smallholder paddy farmers. The target populations for the study were members of Msalala Paddy Farmers Company (MPAFAC) belonging to five different wards, 35 groups, and different villages. It was found that the total amount spent by smallholder farmers on a transaction before joining MPAFAC was 205 USD by 45.7% of the respondent while 9.2% spent below 100 USD after joining MPAFAC.

Keywords: collective action; transaction cost; smallholder farmers; economy.

DOI: 10.1504/AJESD.2020.106828

African Journal of Economic and Sustainable Development, 2020 Vol.7 No.4, pp.391 - 404

Received: 17 May 2019
Accepted: 31 Jan 2020
Published online: 21 Apr 2020 *

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