Socio-Economic Incentives Influencing Livestock Investment Decisions Among Smallholder Farmers in Mbulu and Bariadi, Tanzania

Abstract

Livestock are socio-economically useful assets to rural communities in Tanzania. Different aspects, however, do affect
smallholder farmers’ decisions to commit resources (investment) in livestock. This paper assesses the socio-economic incentives
influencing livestock investment decisions among smallholder farmers in Mbulu and Bariadi districts. A cross-sectional research design was employed, whereby data were collected from 333 randomly selected respondents and 9 key informants. Qualitative data was analysed using content analysis, while for quantitative data, a benefits, costs, and revenue (Gross Margin) analysis was used to determine net gain. A Binary Logistic Regression Model (BLRM) was used to determine the influence of the socio-economic incentives on livestock investment decisions. Study findings show that all three ruminants are profitable, while the availability of capital, costs associated with keeping livestock, herd size, returns on investment, market availability and need for draft power influence livestock investment decisions significantly at (p<0.05). The study generally concludes that the availability of livestock economic opportunities influences investment decisions amongst smallholder farmers in the study area. It is recommended that the government should support smallholder farmers through livestock investment education programmes and infrastructure development.