The role of selected rural market institutions in market access: the case study of Iringa rural district, Tanzania
Loading...
Date
2014
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
During the 1980s public sector in Tanzania withdrew from full control of trade activities
in rural areas. In spite of a few trials, private companies were not able to fill the gap hence
new forms of institutions have emerged to provide a response to constraints that small
producers face. Despite the efforts made, rural producers are exploited and the efficacy of
rural institutions is questionable. This study was conducted in Iringa Rural District in
order to examine the roles of rural market institutions in market access. The selected
institutions were Producer cooperatives, Farmers’ and traders' associations. The specific
objectives were to examine producer market linkage and individual performance of rural
institutions, to identify market strategies among rural institutions and the main predictor of
market access. Multistage sampling technique was used to identify study area and a
sample size of 120 respondents were selected randomly. Data were collected through
structured interviews. SPSS was used to analyse data whereby descriptive data and
inferential analysis (Logit regression) were done. Producers were mainly linked to
middlemen by 45%, 50% and 20% for cooperative, farmers', association and traders'
association. The mostly used market penetration strategy was delay price agreement by
55% for cooperative and 50% for farmers' association. Results revealed that 37.5%, and
50% of cooperatives and farmers' associations respectively used price reduction as a
market development strategy. Results indicate that the individual performance of rural
market institutions contributes to access to market access. The significance variables
(P<0.05) were timely access to market information adequate negotiation skills and
engagement in contract farming. It is recommended that the formation of consolidated
rural institutions which take bases on collective marketing is required.
Description
MASTERS DISSERTATION
Keywords
rural, market, market access, Iringa rural district, middlemen