Analysis of supply chain for green beans in Tanzania: a case Study of Kilimanjaro, Arusha and Dar es salaam regions
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Date
2006
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Sokoine University of Agriculture
Abstract
This study was conducted to examine supply chain of green beans in Tanzania. Data were
collected from secondary and primary sources. Four farm owners from Kilimanjaro (3)
and Arusha (1); and Seventeen market agents from Arusha (5), Kilimanjaro (5) and Dar
cs Salaam (7) regions were interviewed using a structured questionnaire. Checklists were
used to interview owners of big hotels and supermarkets. Data were analyzed using
descriptive statistics. Profit margins and marketing margins were estimated as indicators
of performance and market efficiency respectively. The study revealed that green beans
were marketed through three different channels. These are: (1) farmers =>exporting
companies => European markets => consumers; (2) fanners => supermarkets => consumers;
and (3) farmers => assemblers => wholesalers =>retailers consumers. Wholesalers had
relatively high market power followed by retailers, fanners, and assemblers. Farmers and
exporting companies were bound by formal contracts enforced by law. Other chain actors
used informal contracts whose enforcement was trustfulness. About 71% of chain actors
lacked storage facilities. Majority of chain actors (86%) used open spaces to keep green
beans fresh. Quality attributes mentioned by marketing agents were:
freshness.
immature, greenish and straight beans. Wholesalers had more access to market
information than other chain actors. Green beans production and marketing faced some
problems.
These are diseases and expensive pesticides, water scarcity, lack of
organizations among chain actors and limited access to market information. Regarding
the problem of diseases and expensive pesticides, farmers/traders should be sensitized to
form organizations. The organization can purchase inputs in bulky and sell them to
farmers at reasonable price; and improve farmers’/ traders’ negotiation power. To
improve water supply, rainwater harvesting and modem technology like should be
promoted.
Improvement on market information system should be enhanced by
promoting telecommunications infrastructure.
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Keywords
Green Beans, Kilimanjaro, Supply chain, Arusha, Daresalaam