Economics of indigenous vegetable marketing: a case study in Arumeru District
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Date
2008
Authors
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Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
Study objective was to analyze the marketing efficiency of indigenous vegetables in
Arumeru district. Specifically to (i) identify the present marketing channels of
Amaranthus, African nightshade and African eggplant and the role played by various
market participants’ objectives were (ii) To examine the relative competitiveness of
Amaranthus, African eggplant and African nightshade with the selected exotic vegetables
grown in the study area. (iii) Determine price differences and market margin among
various market participants and selected IVs. Structural Conduct Performance model
showed Indigenous Vegetables (IV) have similar marketing channel with other selected
crops except the occurrence of seasonal collectors. There was no producers or traders
organization to influence market price. IV sellers concentration index showed there is
possibility of oligopolistic behavior in African eggplant farmer’s sellers (CI=82.03%)
since most of their revenues were obtained from selling to traders/transporters from other
regions especially Dar-es-Salaam rather than Arusha city markets. Amaranthus and Africa
nightshade sellers were found to have weak oligopolistic behavior since the concentration
index was 38.92% and 36.7% respectively. From Gross Margin (GM) analysis the
performances of IVs were competitive. African nightshade (Solanum aethiopicum) GM
was higher (190 079.59 TSh) than selected exotic vegetables (Chinadese cabbage and
spinach). Their GM was 39 796.67 TSh and 20 840.47 TSh for Chinese cabbage and
spinach respectively. Also Market Margin (MM) among market participants were
excessive at retailer-consumer level for all studied vegetables. MM for amaranthus was
regressed against buying prices as a representative of indigenous vegetables to find
correlation between MM and selling prices. It was found that 72.1% of the variation in
selling prices is explained by buying prices and the remaining percent (27.9%) might be
explained by other factors such as marketing costs. Also correlation analysis shows that
there is positive correlation coefficient (r>0.765; p=0.01) between MM and selling price.
Indicating there is subsequent price movement to the next market level. There was positive
correlation between MM, selling and buying prices.
Description
Keywords
Vegetable Marketing, Arumeru District, Marketing channels, Amaranthus, African nightshade, African eggplant, Indigenous vegetables, Tanzania
Citation
Maro,F.E. (2008). Economics of indigenous vegetable marketing: a case study in Arumeru District. Morogoro;Sokoine University of Agriculture