Keyword

Supply chain, agricultural marketing, agricultural trade and market liberalization

Abstract

This study describes the prevailing marketing arrangements in Tanzania at local, regional, national and export markets using Dar es Salaam and Ifakara in Morogoro as case study examples. The major impediments for trade in Tanzania have been categorized into three groups: 1) Physical infrastructure, 2) know-how and capital, and 3) institutional framework. Insufficient physical infrastructure in terms of roads increases the cost of transportation, works as an informal market barrier, forms a wedge between the supplier price and consumer price, and increases the loss of perishable products. Lack of know-how shows in poor market orientation and business skills, and leads to difficulties in managing and obtaining loans. Furthermore, the current institutional framework is unable to support the formation of strong traders and producers’ associations and other representative bodies to enhance capacity building and to bargain for fairer terms of trade. In addition, the lack of market information and the weak legal framework lead to difficulties in negotiating trade agreements and enforcing the existing contracts. Currently the necessary institutional framework has been substituted for by long supply chains of middlemen, and relying on personal relationships between producers, traders and brokers


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