Implication of quality uncertainty on market exchange: The case of seed industry in Kilolo district, Tanzania. [version 1; peer review: awaiting peer review]
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Date
2020
Authors
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Journal ISSN
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Publisher
Emerald
Abstract
An increasing demand of agricultural intensification and value addition
necessitates the use of improved inputs such as improved seed.
Smallholder farmers contribute about 70 % of agricultural production in
Tanzania. Agriculture sector in Tanzania contributes about 24.1 % of the
GDP, 30 % of exports and 65% of industrial raw materials. Thus, agriculture
development, economic growth and industrialization are inseparable. Due
to the nature of the product, smallholder farmers cannot judge the overall
excellence of seed at the time of buying. This paper assessed quality
uncertainty in maize and vegetable seed and its implication for market
exchange between farmers and seed sellers in Kilolo district, Iringa
Tanzania. The study used a random sample of 130 smallholder farmers and
representatives from ten seed companies. Asymmetric information prevails
between the two trading sides i.e. sellers and buyers. Moreover, product
augmentation is profoundly overlooked whereby most of seed companies
have not augmented their products. Despite that genetic and environmental
interaction sways crop performance, the paper offers a thorough deduction
of the results and its implication on market exchange. This paper adds
information in the body of knowledge on how an improved seed can
intensify upsurge production of food and industrial raw materials, which is a
step towards desired industrialization agenda in Tanzania.
Description
Emerald Open Research 2020,
Keywords
Seed value chain, Quality uncertainty, Market exchange, Agriculture intensification