Practices and challenges of selling systems for teak (tectona grandis) at Mtibwa tree plantation in Tanzania
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Date
2015-06
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Abstract
Mibwa forest plantation. hereafter referred to simply as
Mtibwa plantation was established in 1944. and is currently
owned by Tanzania Forest Services (iTS) under Government
Notice 269 of 2010. The plantation was gazette through the
Government Notice number 213 of 1944 (CRT. 2013).
Mtibwa plantation has about 3.115.6 ha of land. out of this 2068 ha are
suitable for teak production. The main species grown was Tectona grandis,
which constituted 95% while Cedrella odorala (3%), Milicia excelsa and
Khuya anthotheca together (2%) were planted as alternative species (CRT.
2013).
Timber for logs and building poles are the main forest products from
Mtibwa plantation which arc traded within and outside the country. The
plantation also generates some income through sales of teak stumps. and
Firewood which are sold or given for free to nearby villages. Tree seeds
from the plantation are collected for free by the Tanzania Tree Seed
Agency (TTSA) and the community living adjacent to the plantation. The
auction system and private agreements are currently used for selling
standing teak from. Auctioning is the public sale of goods or properties to
the highest bidder (Chamuva. 2007). In implementing the Bing Results Now
(BRN) in Tanzania. the main focus of the Ministry of Natural Resources
and Tourism (MNRT) is to promote sustainable production, utilization and
marketing of forest resources to achieve the national social economic
objectives as well as the protection of natural forest resources. Tanzania.
like other countries in Africa sets forest charges using market mechanisms
and calculations that are based on market information (Chamuva. 2007).
The main challenge of using market mechanisms is that they work well
where there is genuine competition in the market (FAO. 1979). If the
number of buyers is small they tend to collude. offering low prices. "[he
Tanzania National Forest policy statement stipulates that 70% of forest
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Practices and Challenges of Selling System for Teak...
products should be sold using the auction system while the remaining 30%
is to be sold through allocation. The policy is supported by the Forest Act
Cap 323 IRE. 2002] of 2002 (URT, 2002).
Description
Journal of continuing Education and Extension, 2015; 6(1): 902-910
Keywords
Practices and challenges, Selling systems, Tectona grandis, Mtibwa Tree Plantation