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.
