Economic assessment of cotton pesticides marketing in Tanzania: a case of insecticides in Kwimba and Meatu districts
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Date
2003
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Publisher
Sokoine University of Agriculture
Abstract
In recent years, following liberalisation of agricultural inputs particularly for
cotton, Co-operatives have severely reduced their pesticide procurements and
private traders have apparently been uninterested in entering the market. This
study aimed at systematically analysing the structure, conduct and performance of
cotton insecticides marketing in the study area. The specific objectives of the
study were firstly; to assess the cotton insecticides market structure in the study
area. Secondly, to describe the cotton insecticides market conducts in the study
area. Thirdly, to evaluate the performance and implications of the current cotton
insecticide marketing on insecticide use in cotton and fourthly, to assess the
determinants of insecticide use in smallholder cotton production, in the study area.
Secondary data were collected from key institutions in the cotton sector. A survey
was conducted on sample of 120-cotton growing farm households in the sample
districts, and 33 crop-input traders in Mwanza, Shinyanga urban and peri-urban,
and sample districts. The Structure-Conduct-Performance framework approach
objective, seller concentration index, descriptive statistics and cross tabulation
analytical methods were used. The results reveal that relatively very small
proportion of imported cotton insecticide (14%) was channelled through private
traders. However, a greater proportion was through the Cotton Development Fund
(CDF) distribution channel (86%). The results also indicate that there was greater
seller concentration of eighty six percent in favour of insecticides marketed
through CDF. To address the second objective, descriptive statistics and cross
was used to assess the current cotton insecticide market. To address the first
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tabulation were the main methods of analysis. Results indicate that price subsidy
of about 50% was offered by CDF. Results also indicate that majority of private
traders (93.3%) sold insecticides on cash basis at market prices. Correlation
analysis was one method used to address the third objective, which indicated that
regression model was estimated. The results from the model revealed that 10%
increase in farm size under cotton during 2000/2001 season was significantly
associated with 6.93% increase in amount of insecticides used by farmers
(p<0.01), other factors held constant. It is therefore generally recommended from
the study that incentives for private sector need to be enhanced. The Cotton
Development Fund (CDF) should reorient its focus to facilitating active
participation of private traders in cotton insecticide market. This may mean
revisiting its current pricing policy of subsidising the cotton insecticide farmgate
price, to enhance fair play and efficiency in cotton insecticides marketing.
Emphasis on shift from small-scale cotton production to at least medium scale is
one of the recommendations from this study. This may enable exploitation of
economies of scale by farmers from using insecticides and other inputs in cotton
production.
Description
Dissertation
Keywords
Economic assessment, Cotton pesticides, Insecticides, Co-operatives