Influence of Entrepreneurship Practices on Agribusiness Transformation in Tanzania: A Vertical Integration Role on Grains

  • Peter Mkufya Must Lead Group
  • Deus Ngaruko, PhD The Open University of Tanzania
  • Timothy Lyanga, PhD The Open University of Tanzania
Keywords: Entrepreneurship Practices, Vertical Integration, Agribusiness and Agribusiness Transformation
Share Article:


The study examined the influence of entrepreneurship practices on agribusiness transformation among agribusiness owners in the Mbeya region. Specifically, it examined the effect of agricultural production technologies on postharvest storage and assessed the effect of marketing practices and agro-processing practices on agribusiness transformation. It explored the effect of vertical function on agribusiness transformation on grains. A cross-sectional study design consisting of both qualitative and quantitative data was applied. A sample of 254 agribusiness owners involved in grain production was purposively selected. The study used interviews and structured questionnaires to collect primary data. The reliability and validity test generated an estimated Cronbach’s Alpha value of 0.889, which indicates good internal consistency. Multiple Ordinal Logistic Regression was used to determine the influence of entrepreneurship practices on agribusiness transformation. The finding shows that there is insignificant influence (p > 0.05) of agricultural production technology practices on agribusiness transformation, whereas postharvest storage, marketing and agro-processing practices indicate significant influence on agribusiness transformation (P<0.05). However, the moderation role of vertical function reveals significant negative prediction (-1.193) on agribusiness transformation. Correlation analysis reveals a significant positive, strong correlation between marketing practices and total agribusiness transformation. Government and key actors in the agribusiness value chain are advised to formulate and implement appropriate policies, programs, and strategies to enhance appropriate entrepreneurship practices necessary for agribusiness transformation


Download data is not yet available.


Abass, B. A., Kotu, H. B., Hoeschle, Z. I., Bekunda, M., and Mwambo, H., (2019). Exploring the profitability of improved storage technologies and their potential impacts on food security and income of smallholder farm households in Tanzania. Journal of Stored Products Research. Volume 82, June 2019, Pages 98-109.

ACET, (2017) Africa Transformation Report; Agriculture Powering Africa’s Economic Transformation. African Centre for Economic Transformation. Accra, Ghana. [] site visited on 2nd September, 2019.

Adam, A. M. (2021). A Study on Sample Size Determination in Survey Research. New Ideas Concerning Science and Technology Vol. 4, 125–134. [] site visited on 18th March, 2023.

AGRA. (2017). Africa Agriculture Status Report: The Business of Smallholder Agriculture in Sub-Saharan Africa (Issue 5). Nairobi, Kenya: Alliance for a Green Revolution in Africa (AGRA). Issue No. 5

AGRA. (2018). Africa Agriculture Status Report: Catalysing Government Capacity to Drive Agricultural Transformation (Issue 6). Nairobi, Kenya: Alliance for a Green Revolution in Africa (AGRA)

AGRA. (2021). How Integration Enhances the Competitiveness of Agribusinesses and Smallholder Farming Systems - the Tanzania Case Study. Dar es Salaam, Tanzania: Alliance for a Green Revolution in Africa (AGRA). ISBN: 978-0-9980765-5-3

Ameh, O. E., Sunday. O. A., Baajon, M. A., and Chukwuemeka. N. J. (2017). An Empirical Analysis of the Effect of Agricultural Input on Agricultural Productivity in Nigeria. International Journal of Agricultural Science and Food Technology. Nigeria [] site visited 3rd November 2022

Ansah, I., Ehwi, J., and D, S. (2018). Effect of postharvest management practices on the welfare of farmers and traders in Tamale Metropolis and Zabzugu Districts, Ghana. Cogent Food & Agriculture. 4. 10.1080/23311932.2018.1475916

Asom, S. T. & Ijirshar, V. U. (2016). Impact of Agriculture Value Added on the Growth of Nigerian Economy. Nigerian Journal of Management Sciences: A Multi-disciplinary Edition. 5(1): 238-245. Benue State University, Makurdi-Nigeria.

Bachmann, Y., Idohou, R., Sinsin, B., Elie A., P., and Lykke, A. M (2017). Mapping changes in land use/land cover and prediction of future extension of bowé in Benin, West Africa. Volume 69, December 2017, Pages 85-92 [] site visited on May 13, 2022

Channa, H., Gilbert, J.R., Feleke, S., Abdoulaye, T., (2022); Overcoming smallholder farmers’ postharvest constraints through harvest loans and storage technology: Insights from a randomised controlled trial in Tanzania, Journal of Development Economics, Volume 157,2022,102851, ISSN 0304-3878 [] site visited on March 15 2023.

FAO & World Bank (2010): FAO/World Bank Workshop on Reducing Postharvest Losses in Grain Supply Chains in Africa; Lessons Learned and Practical Guidelines. Rome, Italy.

GEM (2022). Global Entrepreneurship Monitor 2021/2022 Global Report. Opportunities Amid Disruption. Babson College [] site visited June 10, 2022.

Gichangi, A. (2010). Analysis of Structure, conduct and performance of sweet potato marketing: the case of Nairobi and Kisumu, Kenya.

GoT, (2012). National Sample Census of Agriculture 2007/2008: Crop Sector –National Report. Tanzania.

Guthiga, P., Karugia, J., and Nyikal, R. (2007). Does use of draft animal power increase economic efficiency of smallholder farms in Kenya? Renewable Agriculture and Food Systems. 22. 290 - 296. 10.1017/S174217050700186X. [] site visited on 8th June, 2022.

Isinika, A. & Kipene, V. (2016). Growth of Agro-processing Firms and Labour Productivity in Tanzania: Opportunities and Limiting Factors. In: REPOA’s 21st Annual Research Workshop. Dar es Salaam, 1-35.

Jahari, C., Kilama, B., Dube, S. & Paremoer, T. (2017). Regional industrialisation and the development of agro-processing value chains in Tanzania and South Africa: Oilseeds-to-edible oils. In: ACER III Conference.

Kahan, D., (2013) Entrepreneurship in farming. FAO. Rome [] site visited on October 31 2019.

Kereth, G., K., Lyimo, M., Mbwana, H., Mongi, R., Ruhembe, C., (2013). Assessment of postharvest handling practices: knowledge and losses of fruits in Bagamoyo district of Tanzania. J.Food Qual. Manag.. 11. 8-15. [file:///C:/Users/USER/Downloads/Postharvest.pdf] site visited on 15th March 2023.

Kizito, M. A., (2011). The structure, conduct, and performance of Agricultural Marketing Information Systems in Sub-Saharan Africa. A dissertation submitted to Michigan State University in partial fulfilment of the requirements for the Degree of Doctor of Philosophy.

Kumar, D., and Kalita, P., (2017). Reducing Postharvest Losses during Storage of Grain Crops to Strengthen Food Security in Developing Countries. Foods 6, no. 1: 8. [] site visited on June 13 2022.

Mignouna D. B., Abdoulaye T., Akinola A. A., Alene A., Oparinde A., Manyong V.M., Maroya N., Asiedu R. (2017). A Two-stage Empirical Analysis of Market Participation in Yam-growing Areas of West Africa, p. 262-274 [] site visited September 25 2021

Naminse, E. J. and Zhuang, J (2018). Does farmer entrepreneurship alleviate rural poverty in China? Evidence from Guangxi Province [] site visited October 31 2019.

Nkwabi, M. J., Mboya, B. L., Nkwabi, M. J., Nkwabi, M. J., (2019). A review of the challenges affecting the agro-processing sector in Tanzania, Asian Journal of Sustainable Business Research, 1 (2): 68-77

Okou, C., Spray, J., and Unsal, D. F. 2022. Staple Food Prices in Sub-Saharan Africa: An Empirical Assessment, IMF Working Papers, WP/22/135.

Omayio, G., George, A.,Michael,O.,Gachuiri, C., Mwang'ombe, A. (2020). Trends and Constraints in Guava ( Psidium Guajava L.) Production, Utilisation, Processing and Preservation in Kenya. International Journal of Fruit Science. 20. 1-12. 10.1080/15538362.2020.1791304.

REPOA (2013), Tanzania Markets Pan: Postharvest Losses in Tanzania; Challenges and Options for Mitigation. Policy Brief, No 3 –ENG/2013 [] site visited September 3 2019.

Suleiman, R., (2017). Journal of Stored Products and Postharvest Research Understanding postharvest practices, knowledge, and actual mycotoxin levels in maize in three agro-ecological zones in Tanzania. Journal of Stored Products and Postharvest Research. 8. 73-84. 10.5897/JSPPR2017.0243.

Taber, K. S. (2018). Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Res. Sci. Educ, 48,. 1273-1296.[https://doi.or/10.1007/s11165-016-9602-2] site visited on 18th March, 2023

Tefera, T. (2012). Postharvest losses in Africa maize in the face of increasing food shortage. Food Sec.4, 267 – 277 (2012). [] site visited on 13th June 2022

Timmer, C. P. (1988). “The agricultural transformation,” in Handbook of Development Economics, Vol. 1, eds H. Chenery and T. N. Srinivasan (Amsterdam: North Holland Publishers).

UNCTAD (2018). Migration for Structural Transformation. Economic Development in Africa Report 2018. United Nations Conference on Trade and Development [] site visited September 11 2019]

URT (2019). National Postharvest Management Strategy 2019 -2029. Ministry of Agriculture, Dodoma, Tanzania[] site visited on March 3 2023.

URT, (2008). Agricultural Marketing Policy. Ministry of Industry, Trade and Marketing [] site visited on March 17 2023

URT, (2013) National Agriculture Policy Draft November 2013: Ministry of Agriculture Food Security and Cooperative. Dar es Salaam. [] site visited on 4th September 2019.

USDA, (2018). Grain and Feed Annual: 2018 Tanzania Corn, Wheat and Rice Report. Washington, DC.

Vermeulen, S.J., Dinesh D., Howden S.M., Cramer, L and Thornton, P.K., (2018). Transformation in Practice: A Review of Empirical Cases of Transformational Adaptation in Agriculture Under Climate Change. Front. Sustain. Food Syst. 2:65. doi: 10.3389/fsufs.2018.00065 [] siste visited on 12th November 2019]

Wang, T., & Huang, L., (2018). An Empirical Study on the Relationship between Agricultural Science and Technology Input and Agricultural Economic Growth Based on E-Commerce Model. Sustainability. 10. 4465. 10.3390/su10124465. Watch?v=A6g8NG3K_vo&t=3316s]site visited on 22nd March, 2022

WB, (2016). Transforming Vietnamese Agriculture: Gaining More from Less. Vietnam Development Report. Washington, D.C. World Bank.

WB, (2018). Country partnership framework for Tanzania [] site visited on March 5 2020.

Yamane, Taro (1967) Statistics an Introductory Analysis. 2nd Edition, New York, Harper and Row

[] site visited on 13th November, 2020

16 November, 2023
How to Cite
Mkufya, P., Ngaruko, D., & Lyanga, T. (2023). Influence of Entrepreneurship Practices on Agribusiness Transformation in Tanzania: A Vertical Integration Role on Grains. East African Journal of Business and Economics, 6(2), 103-124.