Charcoal value chain analysis in Uyui District and Tabora Municipality, Tanzania.
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Date
2015
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Sokoine University of Agriculture
Abstract
This study sought to analyse charcoal value chain in Uyui District and Tabora Municipality. Specific objectives were to identify actors and assess their roles in the chain; determine profit and marketing margins of various actors along the value chain and determine the factors influencing charcoal profitability among actors.Both qualitative and quantitative data were collected.The sample of 114 respondents was drawn for interview from eight wards. Content analysis was used to analyse qualitative data while SPSS computer software was used for quantitative data analysis.The results showed that the major actors in charcoal value chain in the study areas were charcoal producers, transporters, wholesalers, retailers and consumers.The profit accrued along the value chain is small and unevenly shared. Wholesalers and/or transporters take a big share of total profit (84%) followed by retailers (11%) while producers only accrue 5% of the total profit. Charcoal producers are the least beneficiaries in the chain due to lack of business skills indicated by the way charcoal is priced and how charcoal production costs are estimated. Multiple regression analysis revealed that there was statistically significant(P<0.05) relationship between socio-economic factors such as gender, level of education, the season charcoal business is done, number of charcoal bags sold at a time, category of respondent and the district in which the actor carried out the business. However, other factors such as age, access to market information and experience in charcoal business were not statistically significant(P>0.05) to charcoal profitability but showed a relationship with charcoal profitability. This study recommends that there should be an organised charcoal industry and market networks. Also, producers need training on business skills and charcoal should be charged at full price based on the total cost incurred in the whole spectrum of production and marketing.
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Keywords
Charcoal,Value chain,Analyisis in Uyui District,Tabora Municipality,Tanzania