The Status of Family-Owned Food Processing Firms in Tanzania: Evidence and Implications for Generational Continuity

Abstract

Family-owned food processing firms are central to Tanzania's economy, contributing to the agricultural value chain and food security. However, limited information exists on their characteristics, governance, and generational succession. This study provides a quantitative overview of 267 single-family-owned food processing firms in Mainland Tanzania, guided by socioemotional wealth and stewardship theories. The study collected data through structured questionnaires and zanalyzed them using descriptive statistics, logistic regression, cluster analysis, and the General Electric Portfolio Matrix. Results show that the founder leads 78.3% of firms, 84.6% were under first-generation control, and only 14.6% involve multiple generations. The descriptive results indicated that 73.0% of firms focused on staple grain milling, while 14.6% were involved in bakery production. Participation in other categories is minimal, including fruit and vegetable processing (6.7%), dairy (3.4%), meat products (1.9%), and cocoa and confectionery (0.4%). No firms had adopted a family constitution; instead, they relied on informal governance. Education and work experience significantly predicted founder status, firm longevity, and diversification. Cluster analysis identified three profiles: founder-led, multi-generational, and education-driven firms, with the latter exhibiting stronger governance and adaptability. Asset analysis revealed significant disparities: average firm assets were valued at TZS 920.6 million, yet the distribution was highly skewed. The General Electric Portfolio Matrix indicates that most firms operate in low- to medium-risk zones, although some education-driven and emerging firms exhibit high growth potential. The study concludes that, although the firms support continuity, founder dominance and limited governance restrict their resilience. Policy efforts should prioritize governance reform, succession planning, and diversification to support Tanzania's Vision 2050 zindustrialization goals.