Factors influencing the performance of marketing intermediaries in bean marketing in Karagwe District, Tanzania
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Date
2009
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Publisher
SUA
Abstract
This study was conducted to examine the factors that influence performance of marketing
intermediaries (traders) in beans marketing in Karagwe district. Primary data were
collected from 100 farmers and 60 traders, using structured questionnaires and these were
complemented with secondary data obtained from review of related literature.
Data
analysis focused on descriptive statistics, marketing margin analysis and linear regression
analysis. Results from marketing margin analysis indicate that bean producers gets 52% of
the final consumer price and 48% is shared among marketing intermediaries. Marketing
costs accounts for over 60% of the total marketing margin received by intermediaries.
Transport and commission agents (labour) costs are the largest component of marketing
costs. Regression analyses results indicate that traders’ age, years of schooling, working
capital, initial capital, number of business contacts, distance to sales markets and trading at
secondary markets are important variables in influencing the traders’ gross margin and
performance. The study concludes that traders’ working capital is not enough to trade
beans in large quantities. Marketing costs are too high to be afforded by small traders and
farmers. The share of gross marketing margin in bean consumers' shilling by
intermediaries is modest. Traders, who have many business contacts, trade beans at
secondary markets, access to financial resources and those with higher level of education.
earned significant higher marketing margins. The study recommends to traders and
farmers to form and strengthen private trading associations and/or groups. Government
should continue focusing on elimination of trade obstacles and providing credits and
entrepreneurship skills to farmers and traders.
Description
Dissertation
Keywords
Marketing intermediaries (traders), (traders), Beans marketing, Karagwe District, Tanzania