Linking farmers to markets is widely viewed as a milestone towards promoting economic growth and poverty reduction. However, market and institutional imperfections along the supply chain thwart perfect vertical and spatial price transmission and prevent farmers and market actors from getting access to information, identifying business opportunities and allocating their resources efficiently. This acts as a barrier to market-led rural development and poverty reduction.
The Government's Tanzania Development Vision 2025 and the Five-Year Development Plan (FYDP II) set out ambitious goals for reducing poverty and sustainably industrializing so that the country can achieve middle-income status by 2025. The government recognizes agriculture as central to realizing its objectives of socioeconomic development, which are well-articulated in the Second Agriculture Sector Development Program (ASDP II).