Valuing willingness to pay for improved dairy cattle farming through livestock insurance scheme a case of Mara region Tanzania

John, Issac (2023) Valuing willingness to pay for improved dairy cattle farming through livestock insurance scheme a case of Mara region Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

The study sought to determine the willingness to pay for improving dairy cattle farming through livestock insurance scheme in Mara, Tanzania. The specific objectives were; to determine whether household income level affect improved dairy cattle farming, whether number of cattle’s affect improved dairy cattle farming, whether credit facilities affect improved dairy cattle farming, whether risk experience affect improved dairy cattle farming and whether after introduction of livestock insurance scheme to pastoralist communities, will increase the willingness to pay to improve dairy cattle farming. A cross-sectional survey was carried out on a sample of 405 respondents from Serengeti and Bunda Districts. Descriptive statistics, correlation, linear and multiple linear regression analysis techniques were applied. The study found that, the factors that positively influence respondents WTP for cattle insurance were distance to the tarmac road, household income, total land size and total livestock owned by respondents. The land and many cattle’s increased livestock keepers WTP for cattle insurance. The age of the household head, access to credit facilities, annual sales income derived from milk and vaccine cost negatively influenced the WTP. Also, it was equally observed that there was a positively significantly relationship between farming risk situations like security, theft, drought, fierce animals and conflict between cattle farmers and crop farmers in relation to livestock insurance in improving dairy cattle farming. It is recommended that the need for policymakers and insurers to design programs that will educate herders on risk management tools (e.g., financial literacy) to improve herders’ awareness of Livestock Insurance. Keywords: Climate change, Agricultural risk, livestock Insurance, Number of cattle, willingness to pay, improved diary cattle farming, Mara Region

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