Value chain analysis of sawnwood from Tanzanian forest plantations: case study of Mufindi,Kilombero districts and Dar es salaam city.

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Date

2018

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Journal ISSN

Volume Title

Publisher

Sokoine University of Agriculture

Abstract

The study was conducted to analyse value chain of sawnwood from government and private plantations in the selected locations. Specifically, the existing sawnwood value chain actors* characteristics and behaviour were assessed. Analysis of sawnwood efficiency on production and marketing in the value chain was done. The intensity of business enabling environment in sawnwood value chain was also assessed. Samples of 579 actors were selected from government plantation while on private plantation a total of 10 actors were also selected. Data was collected using questionnaire survey and direct observation. The analysis was done using Statistical Package for Social Science (SPSS), SAS, Microsoft Excel, mapping matrix and content analysis. For hypothesis testing, Tobit model was used to estimate the influence of various transaction factors. The study found that, in government plantation four main sawnwood value chains were existed. On the other hand, three value chains were detected in private plantation. Also in government plantation at production site the average price (TZS 333 837) per m3 is lower by 18% compared to market site (TZS 460 000) while on private plantation the average price per m'3 is 11 % of increase in price of sawnwood at the export zone. The results reveal that the market information, operation system, negotiation and enforcement costs before transaction, increases the likelihood of producing a certain volume at 100%, 59%, 17% and 69% respectively. Also fi,om government plantation, lack of market differentiation results the gross margin of the sawnwood produced using small scale technology to be higher than that produced by advanced technology. For private plantation the profit is TZS 644 000 which is higher because of line of production and market arrangements. It was also found that, policies and legislation lias contribution towards enabling environment to sawnwood stakeholders. The study concluded that the sawnwood value chain from government plantation is long and complex. Further, the private plantations gain more profit in sawnwood business due to efficiency in utilizing the resource andchain arrangements. The study recommended that, fbr development of sustainable sawnwood value chain, production and marketing systems should be improved by government, private and individuals.

Description

Dissertation

Keywords

Wood product, Sawnwood industries, Wood marketing

Citation