value chains: district markets-linked cassava value chain in mvomero and kongwa districts, tanzania

“District Markets-Linked Cassava Value Chain in Mvomero and Kongwa Districts,

Tanzania.”

Presented at the International Food Security Dialogue 2014

“Enhancing Food Production, Gender Equity and Nutritional Security in a Changing World.”

Sponsored By: Hosted By:

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

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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• Cassava (Manihot esculenta Crants) is one of the

most important crops widely grown in East and Central Africa including Tanzania.

• Cassava crop has several advantages over other staples particularly cereals due to its drought tolerance, low demands on soil nutrients, low input requirements and flexibility in planting and harvesting (Marandu et al., 2007)

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Background info cont…• Global cassava production in 2009 was about

241 million tons with Africa being the highest producer (Bull et al., 2011).

• Tanzania is the sixth largest producer of cassava after Nigeria, DRC, Ghana, Angola and Mozambique, producing about 7 million tons of fresh cassava annually (FAOSTAT, 2007).

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Background info cont…• Regions producing cassava in Tanzania are

Mtwara, Coast, Mwanza, Kigoma, Tanga, Morogoro, Ruvuma, Shinyanga and Lindi.

• Area under cassava production in Tanzania is about 655 700 ha. (Lazaro et al., 2007).

• Cassava is very important in semi arid and drought prone areas, and is considered as a food security crop rather than raw materials for industries.

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Problem Statement and Justification• Despite the fact that cassava presents

commercial opportunity under small scale farming in Tanzania for improvement of their livelihoods, cassava products are yet in the markets.

• Besides, unreliable markets with little transformation, are additional factors limiting commercialization of cassava from smallholder farmers’ perspective.

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Problem Statement cont… • Furthermore, cassava marketing systems in

Tanzania and in the study districts of Mvomero and Kongwa in particular, are still traditional, with scanty market information and little has been done to develop or transform them.

• 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 cassava value chain in order to identify potential areas for intervention and ultimately improving smallholder cassava farmers’ access to markets.

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Objectives cont…• Specific objectives were:– to map cassava value chain in the study

area; – to determine profit margins accrued by the

players and – to assess factors influencing cassava

producing farmers’ profitability.

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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 two new varieties of cassava (Kiroba and Mumba) 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 145 whereby 63 were producers, 25 traders, 21 processors and 36 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 sub-sector mapping,

descriptive statistics, GM and Linear Regression

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Findings

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Findings cont…• Cassava value chain is comprised of multiple

products with actors being input suppliers, small scale farmers, transporters, village/local processors, retailers of fresh cassava and vendors.

• Critical pre-produce points are land issues and cassava cuttings availability,

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

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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 cooking vendors to

consumers;• Channel IV: Producers to local processors to

consumers;• Channel V: Producers to retailers to local

processors to consumers.

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Findings cont…

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Findings cont…• The most profitable marketing channels are II

and V. This might have been contributed by having fewer players and especially exclusion of retailers and value addition processes

• Selling prices in channels II and V are higher than in other channels, and

• Sales volumes in channels II and V are higher.• Weeding costs are higher in all the channels.

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Findings cont…

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Findings cont…• In Gross margins analysis, findings show that

local processors are getting higher margins as compared to other actors as shown in channels IV and V.

• Cooking vendors are obtaining lower margins than other actors followed by retailers as shown in channels III and II.

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Findings cont…

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Findings cont…• Findings show that experience of household

head and farm size are positively related to profitability and are statistically significant

• On the other hand, farm locations is negatively related but statistically significant. This implies that cassava plots near to the markets have higher chances of getting higher margins than those which are far.

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Conclusion• Cassava value chain in Kongwa and Mvomero

districts revealed several constraints from low production, poor access to inputs, inadequate market information, poor support services, poor coordination to lack of value addition.

• Farmers are not organized, lack bargaining powers and their scale of operation is low.

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Conclusion cont…• Local processors are the ones who are

benefiting more in the chain as compared to other players.

• Cassava profitability is enhanced by area under production and experience of the household.

• Farm location has been found to reduce farmers’ profitability.

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Recommendations• It is recommended that improved cassava

varieties and modern farm equipment should be availed to farmers,

• Organization and coordination of cassava chain actors requires strengthening, and

• Enhancement of value addition processes through technologies will increase profitability to the players involved in cassava value chain.

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Acknowledgements

• This is the end of presentation and we would like to acknowledge the following:– IDRC/DFATD for sponsoring the event,– University of Alberta 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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