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“ Assessment of the Performance of Sweet Potato Marketing Systems in Mvomero and Kongwa Districts, Tanzania.”. M. D. Waziri, J. R. Makindara and D. Shayo. Presented at the Canadian International Food Security Research Fund (CIFSRF) “Research to Feed Africa” Symposium

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Presented at the Canadian International Food Security Research Fund (CIFSRF)

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“Assessment of the Performance of Sweet Potato Marketing Systems in Mvomero and Kongwa Districts, Tanzania.”

M. D. Waziri, J. R. Makindara and D. Shayo

Presented at the Canadian International Food Security Research Fund (CIFSRF)

“Research to Feed Africa” Symposium

June 23-27 , 2014, Great Rift Valley Lodge, Naivasha, Kenya

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Presentation Outline

  • Background Information

  • Problem Statement and justification

  • Objectives of the study

  • Methodology

  • Findings

  • Conclusion

  • Recommendations

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Background Information

  • Sweet potato (Ipomea batatas L.) is an important traditional crop that is grown customarily by small-scale farmers mainly for household food consumption in the tropics and sub-tropics including Tanzania.

  • It ranks as the seventh most important food crop in the world after wheat, rice, maize, potato, barley and cassava (CGIAR, 2006).

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Background info cont…

  • Global annual sweet potato production is over 133 million tons (CGIAR, 2006), with Africa producing about 7 million tons annually (IPC, 2011).

  • Tanzania is the third largest producer of sweet potato in Africa and Uganda producing about 1.3 million tons annually (FAO, 2004).

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Background info cont…

  • Regions producing sweet potato in Tanzania under small scale farming are Morogoro, Mbeya, Kigoma, Shinyanga, Mwanza, Rukwa and Kagera.

  • Area under sweet potato production in Tanzania is estimated to be 470 600 ha. (URT, 2009).

  • Sweet potato is an important food security crop especially during periods of food scarcity particularly in areas prone to drought and with poor soils.

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Problem Statement and Justification

  • Despite the fact that sweet potatoes presents an opportunity for small scale farmers in Tanzania to improve their livelihoods through trading of it and its products, yet low volumes reach markets for commercial purposes.

  • Besides, its seasonal production and poor storability which leads to market variations in terms of quantity and quality, discourage the suitability of the crop for commercial ventures.

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Problem Statement cont…

  • Furthermore, sweet potato marketing systems in Tanzania and in the study districts of Mvomero and Kongwa in particular, are hampered by poor transportation, lack of good processing technology, poor storage and grading which make the systems inefficient.

  • Therefore, this study sought to fill this gap using value chain approach.

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Objectives of the Study

  • The overall objective of this study was to analyze sweet potato value chain in order to assess its performance and recommend areas for improvement in order to increase its marketing system efficiency, hence better prices and margins for players especially farmers.

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Objectives cont…

  • Specific objectives were:

    • to assess sweet potato marketing efficiency through profit and marketing margins; and

    • to assess sweet potato marketing efficiency under various marketing channels identified in the study area.

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Methodology

  • The study areas were Kunke and Wami-Luhindo villages in Mvomero district and Ihanda and Masinyeti villages in Kongwa district.

  • The area was chosen because four new varieties of sweet potatoes (Mataya and Kiegea – Orange fleshed and Simama and Ukerewe-normal) were introduced in the villages through Crop and Goat Project (CGP) implemented jointly by SUA, UA, ILRI and KSRI under IDRC Funding.

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Methodology cont…

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Methodology cont…

  • The research design was cross sectional with sampling units being producers (farmers), traders, processors and consumers.

  • Sampling procedure used was purposive in selecting the villages and simple random in selecting the respondents.

  • Total sample size was 100 whereby 51 were producers, 15 traders, 4 local processors and 30 consumers.

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Methodology cont…

  • Data collection methods include observations, interviews and FGD.

  • Data collection instruments were questionnaire, check list and FGD guide.

  • Data were analyzed using SPSS for questionnaire data and Excel for FGD and KI information.

  • Data analysis were descriptive statistics, gross and marketing margins and marketing efficiency analyses.

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Findings

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Findings cont…

  • Sweet potato value chain is comprised of multiple products with actors being input suppliers, small scale farmers, local processors, retailers of fresh sweet potatoes and consumers.

  • Critical pre-produce points are costs of planting materials, storage and processing technology.

  • Business support services are input supply, extension and financial services.

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Findings cont…

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Findings cont…

  • Distribution of sweet potato sales by place of sales were as follows:

    • 55% sale at farm gate;

    • 39% sale at their homesteads;

    • 3% sale at village market; and

    • 3% sale from house to house.

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Findings cont…

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Findings cont…

  • Marketing channels identified are five:

    • Channel I: Producers to consumers;

    • Channel II: Producers to retailers-consumers;

    • Channel III: Producers to local processors to consumers;

    • Channel IV: Producers to retailers to local processors to consumers.

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Findings cont…

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Findings cont…

  • The highest profit margin in sweet potato marketing chain was realized by local processors in channel III, i.e. Tshs 15,550 per bag.

  • Retailers realized gross margin of Tshs 13,676 per bag in channel II.

  • Local processors attained the lowest margin of Tshs 3,050 in channel IV.

  • Note: The length of the channel affects margins obtained.

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Findings cont…

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Findings cont…

  • The marketing costs of sweet potato vary depending on the stage along the value chain.

  • The marketing costs at retailers’ level was Tshs 8,586; at local processor level 1 was Tshs 42, 250; at local processor level 2 was Tshs 35,150.

  • The highest marketing costs was due to processing, transportation, loading and unloading.

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Findings cont…

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Findings cont…

  • Total gross marketing margins in sweet potato trading was the highest in channel IV i.e. 65%

  • Farmers share of total consumer price was highest in channel I, i.e. 100% and lowest in channel IV, i.e. 35%.

  • Local processors receives large proportion of marketing margins in channel 4

  • Highest net marketing margins were with retailers in channel II, i.e. 25%

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Findings cont…

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Findings cont…

  • Marketing efficiency under conventional method was highest in channel II (2.59), followed by channel IV (1.38) and least was channel III (1.37).

  • Marketing efficiency Shepherd method was highest in channel II (5.37), followed by channel III (1.19) and least was channel IV (1.12).

  • Marketing efficiency under Acharya’s method was highest in channel II (1.46), followed by channel III (0.61) and least was channel IV (0.54).

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Conclusion

  • Increasing marketing efficiency of sweet potato marketing system is possible through reducing marketing costs.

  • Therefore, improved infrastructural facilities such as processing centres and good storage is required for improves marketing efficiency and hence increased income and improved livelihood to farmers.

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Recommendations

  • Modern technologies should be availed to farmers;

  • Market information should be availed to players and

  • Infrastructure development such as such as processing centres and good storage facilities should be available at village level.

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Acknowledgements

  • This is the end of presentation and we would like to acknowledge the following:

    • IDRC/CIFSRF for sponsoring the symposium,

    • KARI for hosting,

    • IDRC/CIRDI for funding the study and

    • Sokoine University of Agriculture and University of Alberta for coordinating the study.

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