Economic analysis of fresh fruit and vegetable export marketing channels by small-scale farmers in Tanzania: the case of Arumeru district
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Date
2009
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Publisher
Sokoine University of Agriculture
Abstract
The falling prices of traditional cash crops such as coffee and the growth of world
markets for non traditional cash crops have led farmers to look for alternatives, hence the
growth of exports of fresh fruit and vegetable. This study aimed at investigating the
profitability and coordination of fresh fruit and vegetable export marketing channels by
small-scale farmers in Tanzania. Specifically, the study had four objectives: (i) To
describe Tanzania’s fresh fruit and vegetable export marketing channels; (ii) To carry out
profitability analysis of the export of fresh fruit and vegetable by small-scale farmers;
(iii) To determine factors governing small-scale farmers’ choice of an export marketing
channel, and (iv) To identify challenges facing marketing agents within the fresh fruit
and vegetable export market channels. A cross-sectional survey was conducted to collect
primary data. Structured questionnaire was used to collect primary data; Secondary data
were obtained from the Arumeru’s DALDO office. Descriptive and quantitative
analytical techniques i.e. cluster analysis; Gross margin and logistic regression were
employed. The findings suggest that four export marketing channels for fresh fruit and
vegetable exist, that are vertically integrated. The enterprises profitability between
farmers selling fresh fruit and vegetable to export and domestic markets was statistically
different (P<0.05), meaning that export trade is more profitable than domestic trade, with
a mean GM difference of Tsh. 543 642 per acre. Prices offered by buyers, the mode
payment and rejection rate of the consignments were found to be the factors governing
the choice of a particular export marketing channel. This study found that knowledge
about Global good agricultural practices, record keeping, possession of storage facilities
and contract farming were the major challenges facing FFV export market enterprises.
This necessitates the formation of FFV farmers and traders association and provision of
soft credit which may increase FFV export marketing efficiency.
Description
Masters Dissertation
Keywords
Fresh fruit-marketing, Vegetable export marketing, Small-scale farmers, Tanzania, Arumeru district