Articles, Conference and Workshop Papers Collection

Permanent URI for this collectionhttp://10.10.97.169:4000/handle/123456789/1000

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An accounting method-based cost-benefit analysis of conformity to certified organic standards for spices in Tanzania
(Copenhagen 2008 Danish Institute for International Studies, DIIS, 2008) Akyoo, A.; Lazaro, E.
Certified organic farming has emerged as a market channel providing participating African small- holders with access to high value markets in the EU. The benefits may include not only a guaranteed produce market, but also premium prices, and higher net revenues. Where training in organic farming techniques is provided there may be also benefits in terms of increased yield. The major cost challenges are those for certification, although in many cases donor support to export- ers is available to cover these. This study quantifies the costs and benefits of complying with the certified organic standard for members of black pepper and chilli contract farming schemes in two districts in Tanzania. It is based on survey data from 2006-07 based on samples of scheme members and control groups. In both cases none of the potential benefit listed above were realized. This is the result of absent price premiums and, in the case of at least one scheme, wider contract failure. Adoption of re- commended organic practices by members of the schemes was also low. Learning from more successful schemes, recruitment of larger and better organized exporters and design of more effective contracts are some of the changes recommended for future schemes in Tanzania.
Field assessment of rapid market estimation techniques: a case study of dairy value chains in Tanzania
(African Journal of Agricultural and Resource Economics, 2015) Coles, C. F.; Kilima, F. T.; Mvena, Z. S.; Ngetti, M.; Akyoo, A.; Nombo, C.
Three rapid market estimation techniques were used to quantify the informal milk market in two Tanzanian municipalities, namely Iringa and Tanga, with reference to producer-based estimates, retailer-based estimates and a stratified consumer survey. The nature of the milk market systems in the two study areas was reflected in the magnitude and dynamics of milk consumption; the informal market was particularly important for a ‘subject to deprivation’ group in both cases. Producer-based estimates did not account for milk from outside the study area, whereas retail surveys omitted details of the producers’ own consumption and their direct sales. Consumer surveys captured the widest variety of informal milk sources but, like retail studies, omitted producers’ consumption. Therefore the most accurate rapid estimation of markets for consumable products may be obtained by triangulating producer data with consumer surveys (informal market) and adding reliable (and usually relatively easily obtained) data from processors and retailers to capture trade through formal channels.
Institutional capacity for standards conformity assessment: a case study on spices in Tanzania
(Copenhagen 2008 Danish Institute for International Studies, DIIS, 2008) Akyoo, A.; Lazaro, E.
Local capacity for standards conformity assessment is an important component in accessing export markets. In theory, it will lead to lowered compliance costs on the part of local exporters. Moreover, it may provide local exporters with the ability to contest unfavourable foreign test results and thus avoid unnecessary losses. This is important in cases where product contamin-ation occurs outside their borders. This is however possible only where relevant local institutions are accredited and adequately capitalized in terms of laboratory facilities, testing equipment, and certification services. Tanzania spices have four important market destinations – the domestic market, regional markets in Africa, the Asian market, and the EU market. The national standards that were formulated during late 1970s and 1980s address cleanliness and quality standards, and specify microbiological limits for various micro-organisms in spices. These standards are not observed in the local market due to lack of consumer demand for them and the absence of a deliberate industry drive to en-force them. This position weakens the possibility of using conformity to local standards as a step-ping stone to international conformity. Regional markets in Africa and Asian export markets are absorbing spice imports regardless of their quality so issues of conformity assessment in these markets are not important. EU market standards are concerned with food safety. In addition, organically-traded exports must be certified as such. For food safety the main tests demanded are for hazards like aflatoxins, pesticide residues, prohibited chemical dyes, heavy metals, as well as for Salmonella. Conformity assessment for these parameters entails investments in high performance liquid chromatograph, gas chromatograph, and atomic absorption spectrophotometer equipment, as well as other state-of –the-art laboratory facilities. Local conformity assessment in relation to these standards is deficient in many ways. Different approaches are recommended to address this situation. Meeting challenges of international accreditation, harnessing scattered efforts for conformity assessment capacity through improved coordination of existing laboratories, and formulation of a national food safety policy are among the recommendations suggested.
Policy imperatives for control of market exchange failure in the cashew nut industry
(NAF-IRN, 2014) Akyoo, A.; Mpenda, Z.
This study examined the root causes of incessant market failure problem facing Tanzanian cashew nut industry. The overarching hypothesis was that the industry challenges are both structural and institutional. Competition status and economic coordination in the industry were thus duly scrutinized. Key informant and questionnaire interviews were carried out with key industry stakeholders and cashew farmers respectively. Data analysis entailed operationalizing the Institutional Analysis and Development framework, the DFID Competition Assessment Framework and estimating the Stochastic Frontier Production Model. Results showcased a systematic positive effect of the Warehouse Receipt System (WRS) on indicative and final producer prices over the years. Concentration ratio results professed the industry as being fairly concentrated and hence oligopolistic. Farmers’ input use efficiency was calculated at 51% on average suggesting that majority could be high cost producers. The WRS was vindicated as an effective system for the industry though its high transaction costs due to hiked administrative costs, weak institutional arrangements along the value chain, cooperative monopoly and inadequate enforcement of underlying regulations counteract its strength. Fair competition in the industry is stifled by clandestine buyer collusion and predatory pricing at the expense of local processing. Production cost would overstate indicative price if used as a basis for its setting given inefficient farmers. For better results the industry needs to depoliticize, change warehouses’ ergonomics, eliminate unnecessary WRS administrative costs, break cooperative monopoly to accommodate private buyers’ participation, strengthen regulatory enforcement mechanisms, restore export parity pricing procedures and establish an advisory to sieve conflicting scholar recommendations.
The spice industry in Tanzania: general profile, supply chain structure, and food standards compliance issues
(Danish Institute for International Studies, DIIS, 2007) Akyoo, A.; Lazaro, E.
The fall in the agricultural sector’s contribution to Tanzanian export earnings since the early 1990s has increased attention toward new crops with the potential of supplementing the country’s traditional export crops. Particular attention has been focused upon identifying crops enjoying price stability, high demand elasticity and low substitutability. Spices fall into this category. Consequently there have been efforts by public agencies and private exporters, both on the mainland and on Zanzibar, to promote the crop. However, access to high value export markets raises issues of supply chain dynamics and conformity with international standards. This paper focuses upon the recent history of the spice industry in Tanzania with reference to these issues. The main conclusions are that Certified Organic standards are the only international standards complied with, and that a very loosely coordinated chain exists alongside a more coordinated one. Macro- and micro-institutional weaknesses need attention if the full potential of the sub-sector is to be realized.

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