Cross-border trade in Northern Tanzania: the effect of market exchange arrangements and institutions on values of non-traditional export crops
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Date
2003
Authors
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Publisher
Sokoine University of Agriculture
Abstract
This study was conducted to investigate the influence of market exchange
arrangements on export values of non-traditional agricultural export market in
Northern Tanzania. The survey was conducted on oranges in Muheza. Specifically
objectives were to (a) evaluate trade competitiveness of the cross border export
market for oranges, (b) Determine gross margins under different arrangements of
market exchange and examine variations across every arrangement in the cross
border export market for oranges, (c) Identify factors influencing export values
(gross margins) of orange farmers. The study is based on farmers, local and Kenyan
traders surveys, and a PRA. Data were analysed using (SPSS). Data analysis entailed
descriptive statistics including frequencies, cross tabulations and correlation tests.
Gross margin technique was used to determine export values of farmers, local traders
and Kenyan traders. Multiple regression model was used to identify factors
influencing gross margins of farmers, and a simple regression aimed at establishing
effects of economies of scale for farmers. Concentration ratio, Chi square and T-test
were also used in the study to test robustness of the statistics. Results reveal that the
cross border export market for oranges was uncompetitive with a seller index of
concentration ratio of 72% implying oligopolistic behaviours in the market. It was
found that market information flow was poor, most farmers (81%) relied on
unreliable and subjective sources. Gross margins were significantly different
(p>0.01) across different market exchange arrangements. Lastly the study revealed
producers’ gross margins were influenced significantly by age of producers, number
of mature trees, remoteness of the farms, duration of skills training and farming
years. The following recommendations were made; there be training to farmers on
business and credit management. There be government regulation to correct
inefficiency in the market and producers should increase their farm sizes and number
of mature trees along with input use.
Description
The Degree of Master of Science in Agricultural Economics
Keywords
Cross-border trade-Northern Tanzania, Market exchange arrangements, Market exchange institutions, Non-traditional export crops