High-Value Market Participation and Sustainability of Livelihood Outcomes among Smallholder Vegetable Farmers in Arumeru District, Tanzania

Abstract

This study investigates how vegetable farmers’ participation in high-value markets (HVMs) affects the sustainability of their livelihood outcomes. A cross-sectional research design was employed, collecting data from 384 respondents through household surveys that included both HVM participants and non-participants. Data were analysed using descriptive statistics and propensity score matching (PSM) techniques. The results revealed that 94.5% of non-participants experienced lower levels of livelihood sustainability, whereas 67.19% of participants achieved higher levels. PSM analysis further indicated a significantly higher average treatment effect on the treated (ATT) of 2.536 for participants, compared to 1.43 for non-participants, both significant at the 5% level. These findings highlight the benefits of selling vegetables in high-value markets compared to traditional ones. The study concludes that participation in HVMs significantly enhances smallholder farmers’ livelihood sustainability. Accordingly, it recommends strengthening collaborations between state and non-state actors to improve productivity, quality standards, and access to business support services, thereby promoting smallholders’ inclusion in HVMs and fostering long-term sustainable livelihoods.