Abstract:
Since 1986, Tanzania undertook economic reforms to establish free market
economy in order to stimulate economic growth. With respect to maize, policy
measures were implemented through; removal of price subsidies on maize and
production inputs, liberalization of the cooperative marketing system at the
farmer level by removing restrictions and restructuring of the crop marketing
system involving redefinition of the roles of regional cooperative unions, and
the main food marketing parastatal (NMC). This paper presents findings from a
study carried out in Ludewa and Sumbawanga rural districts. The study aimed
at investigating the dynamics of maize marketing in the two purposely selected
districts and villages. Using structured questionnaire data was collected from
115 maize farmers in the selected villages. Study results show that removal
of state monopolies and the emergence of private sector in input (fertiliser)
distributors, fertiliser procurement and distribution has had made majority of
small-farmers in marginal areas less competitive and victimised by monopsony
and oligopsony power of traders. Few farmers who can afford transporting
maize to distant market records substantial benefit than otherwise. Farmers in
marginal areas can benefit from liberal market if necessary infrastructures such
as good road are in place. Among other things the study suggest that while the
need for improving access to marginal areas still unattainable in a near future,
necessary effort by the government to create a favorable environment that will
enable increased number of private traders to reduce the chances of collusion
which has negative impact to maize farmers is required.
