Assessment of pigeon pea export oriented market in Babati and Karatu districts
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Date
2013
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Publisher
Sokoine University of Agriculture
Abstract
The objective of this study was to carry out an assessment of pigeon pea export market.
Specifically to: (i) identify profitability or gross margins of investing in pigeon pea
production for export (ii) evaluate the pricing structure, costs and margins along the pigeon
pea value chain (iii) identify the constraints facing different actors within the value chain
and (iv) identify the key actors in the pigeon pea export value chain. The average gross
margin for pigeon pea was 210 860 Tshs for Babati and 484 630 Tshs for Karatu. Costs,
prices and margins received by actors in pigeon pea value chain increased downstream.
Traders were incurring high cost as moving downstream. This cost resulted into high prices
received by consumers and increased in marketing margins downstream. Collectors had
the marketing margin of 1.94% for Babati and 4.04% for Karatu. Retailers had the
marketing margin of 12.14% for Babati and 28.74% for Karatu. Wholesalers had the
marketing margin of 11.21% for Babati and 29.04% for Karatu. Exporters had the
marketing margin of 16.70% for Babati and 41.36 for Karatu. Some costs were not
revealed by exporters like Tax/Tanzania Revenue Authority for fear of disclosing their
business information. Collectors faced a lot of marketing constraints like price fluctuation,
competition with big companies, low price, and poor quality of pigeon pea, lack of market
and lack of marketing information, followed by retailers wholesalers and least marketing
constraints to exporters. Key actors identified in pigeon pea export oriented value chain
includes, input suppliers, farmers, brokers, collectors, wholesalers, retailers, consumers,
exporters and processing industries. Input suppliers for pigeon pea in Babati and Karatu
were research institution for experimental purposes, Exporting companies who interred
contracts with farmers and stockist. These stockist were also exporting companies like
Dodoma transport an exporting company found in Arusha and Babati.
Description
Masters Dissertation
Keywords
Pigeon pea, Babati district, Karatu district