Economic analysis of sesame production and marketing performance: a case study of Babati district, Manyara
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Date
2012
Authors
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Publisher
Sokoine University of Agriculture
Abstract
This study analyzed production and marketing performance of sesame in Babati
district. Specifically the study aimed at: (i) explaining major factors characterizing
sesame production and marketing performance in the study area, (ii) examining how
resources utilization affects production of sesame and (iii) evaluating the efficiency
of existing sesame marketing system as well as suggesting strategies to improve
production and marketing of sesame in the study area. Data were collected from 132
farmers and 18 traders randomly selected from the study area through direct
observation, questionnaire survey and discussions with district officials. Descriptive
statistics were used to describe major factors characterizing sesame production and
marketing performance. Regression and structure-conduct-performance analyses
were employed to appraise the economics of sesame production and marketing. It
was revealed that sesame production was positively influenced by resources or input
utilization. It was also observed that low input utilization was associated with low
production which was well below the potential average. The computed CI value
indicated a strong monopolistic behavior among sesame sellers. Analysis of the
major four market participants in sesame industry demonstrated that CR4 of 100%
was an indication of extremely concentrated oligopoly market. HHI value of 4168
had further revealed that the sesame market was highly concentrated and hence was
likely to enhance market power.
Moreover, the study found that although
middlemen occupy large volume of sesame share in the sesame market, wholesalers
were enjoying higher marketing margin of about 47.7% of the consumer price than
other market participants. Based on the overall results, it was concluded that the
sesame marketing system was not efficient in Babati district. The study recommends
for promotion of sesame by ensuring increased production of the crop. It is also
recommended that entrepreneurial skills among farmers and traders and accessibility
to credits should be improved.
Description
Masters Dissertation
Keywords
Sesame production, Babati district, Manyara