Marketing chain analysis of sawn-wood from mufindi district to dar-es-salaam city and arusha municipality

Abstract

This study sought to analyse marketing chain of sawnwood from Mufindi District to Dar- es-salaam City and Arusha Municipality. Specifically, the study focused on examining the existing marketing chain of sawnwood, assessing chain’s key actors and how they develop chain strategy in the marketing of sawnwood, identifying main factors affecting marketing chain from producers to enduse manufactures, determining preliminary estimate of marketing margins at wholesale and retail sale nodes and examining price and cost changes at different stages in the market chain. A random sample of 270 respondents was selected in the study area. Data was collected using questionnaire survey and participant observation. The analysis was done using Statistical Package for Social Science (SPSS) and Microsoft Excel computer programmes. The study revealed that sawnwood were marketed through four channels. These included; Producer -Traders–Enduse manufactures, Producer- Middlemen-Traders-Enduse manufactures, Producer-Traders- Other traders - Enduse manufactures, Producer- Enduse manufactures. It was also revealed that, there were differences in prices at different levels of market. For example the distance from Mafinga to Dar es Salaam is more than 600 kilometers and the average transportation fee is Tshs 63 750 per m 3 which takes 26% of the sawnwood price to the market whereas the distance to Arusha is 1000 kilometers but the cost of transport is Tshs 80 000 shillings per m 3 due to its distance which counts 25% of the selling price at the Arusha market. Furthermore observation revealed that, there is a great number of traders, indicating competitive situation in the marketing system. Given the importance of marketing chain of sawnwood from production to the market in improving the economy, hence, this study recommends that the Government and its authorities should establish commonly accepted and workable quality, grades and standards for sawnwood for improving the quality of sawnwood sold in the market.