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Marketing of Indigenous Fruits in Zimbabwe

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Marketing of Indigenous Fruits in Zimbabwe Marketing of Indigenous Fruits in Zimbabwe Vom Fachbereich Gartenbau der Universität Hannover zur Erlangung des akademischen Grades eines Doktors der Gartenbauwissenshaften - Dr. rer. Hort.- genehmigte Dissertation von Tunu Ramadhani Geboren am 16.11.1960, in Kibaha, Tanzania 2002 Referent: Prof. Dr. Erich Schmidt Institute of Horticultural Economics University of Hannover Koreferent: Prof. Dr. Dr. W. Manig Institute of Rural Development University of Göttingen Date of promotion: June 17, 2002 Fachbereich Gartenbau Universität Hannover By Tunu Ramadhani Marketing of Indigenous Fruits in Zimbabwe ABSTRACT Poverty, food insecurity and unsustainable use of natural resources are being blamed for the setback of African development. Research on the domestication of indigenous fruits, conducted by the International Centre for Research in Agroforestry (ICRAF) is among the several attempts to improve the livelihood strategies of the poor communities to attain food security, improve nutrition, increase cash income while conserving the environment. However, the research initiative is being limited by lack of baseline information on the existing production-to-consumption system. This study aims at describing the market structure, conduct and performance of Uapaca kirkiana and Strychnos cocculoides indigenous fruits, including the institutions guiding the management of the trees and use of the fruits. Also, intents to evaluate the demand of the fruits by assessing consumer’s attitudes, preferences and willingness to pay, and finally suggest on improvements. The study was conducted in Murehwa and Gokwe production and marketing sites, Mbare central market, City Botanical gardens and Westgate shopping centre. Data was collected by a review and analysis of secondary information, Rapid Market Appraisal, formal surveys and conjoint experiment, and analysed using descriptive statistics and advanced multivariate methods. Findings suggest that there is a substantial amount of trading and consumption of the fruits in both rural and urban areas of Zimbabwe. The marketing system is characterised by lack of production, as all fruits for selling and consumption are collected from the natural forests. There are numerous collectors and retailers but few wholesalers causing less competition at their level. There is no sophisticated product differentiation, however elementary presale activities at the retail level reflect consumer preferences. There is a lack of price formation mechanism. Major means of price formation include information from neighbours, knowledge of previous seasons and total cost incurred by the traders. One of the main obstacles to improving the marketing system is missing institutions defining property rights of IFTs and the fruits. The fruits are still treated as a public good, although increased usage has caused shortages and rivalry. Despite the constraints, consumers love the fruits and they are willing to pay, and hence traders generate some cash. In order to increase market sales, traders may supply high quality fruits in Harare markets, areas of high preferences. Furthermore, the government may set up reliable institutions among other recommendations, in order to encourage private action. Keywords: Marketing analysis, consumer behaviour, institutional economics ZUSAMMENFASSUNG Armut, unsichere Nahrungsversorgung und wachsende Umweltprobleme sind Hauptprobleme des Entwicklungsprozess afrikanischer Länder. Als einen Beitrag zur Lösung dieser Probleme bemüht sich das International Centre for Research in Agroforestry (ICRAF) um die Erhaltung und züchterische Weiterentwicklung heimischer Baumfrüchte. Ziel dieses Vorhabens ist es, den traditionellen Konsum der in den Wäldern vorkommenden Wildformen durch eine bäuerliche Produktion für den Markt auf nachhaltige Basis zu stellen. Damit soll gleichzeitig ein Beitrag zur Ernährungssicherheit, zur qualitativen Verbesserung der Ernährung und zur Einkommenserzielung in einer arbeitsteiligen Wirtschaft geleistet werden. Die Forschungsarbeit wird durch den mangelhaften Informationsstand bezüglich der Produktion und dem Konsum der Früchte erschwert. Diese Studie beschreibt und analysiert sowohl die Struktur des Marktes für die Früchte von Uapaca kirkiana und Strychnos cocculoides als auch das Verhalten und die Leistungsfähigkeit der Marktakteure (structure-conduct-performance- oder "SCP"-Ansatz). Weiterhin werden die institutionellen Rahmenbedingungen der Frucht- und Baumnutzung untersucht. Die Nachfrage nach den Früchten wird mit Hilfe von Einstellungsmessungen und Zahlungsbereitschaftsanalysen auf Konsumentenebene analysiert. Aus den Analysen werden Empfehlungen zur Verbesserung des Vermarktungssystems abgeleitet. Die Studie wurde in drei Gebieten in Simbabwes durchgeführt. Murehwa und Gokwe wurden als Produktions- und ländliche Vermarktungsorte berücksichtigt während die Hauptstadt Harare den Ort mehrerer zentraler Märkte darstellt. Im Rahmen der Datenerfassung wurde zum einen auf Sekundärliteratur zurückgegriffen, und zum anderen eine Marktübersichtsstudie ("Rapid Market Appraisal") durchgeführt. Dabei wurde neben formellen Befragungen auch ein Conjoint Experiment vorgenommen. Die Daten wurden mit deskriptiven und weiterführenden multivariaten Verfahren ausgewertet. Die Ergebnisse der Studie zeigen, dass die Früchte in ländlichen und auch städtischen Gebieten Simbabwes in beträchtlichem Umfang verzehrt und auch gehandelt werden. Das Vermarktungssystem ist durch einen Mangel an Produktion gekennzeichnet, da alle Früchte für den Konsum und Verkauf von Gemeinschaftsland gesammelt werden. Die Ebene des Sammelns und der Einzelhändler ist durch viele Akteure und hohen Wettbewerb gekennzeichnet, während auf der Ebene der Großhändler nur einzelne Akteure tätig sind. Die Früchte werden mit geringer vorheriger Produktdifferenzierung vermarktet. Einfache Sortierung vor dem Verkauf gibt die Konsumentenpräferenzen wieder. Der Preisbildungsprozess ist ausserordentlich intransparent, da Einzel- und Großhändler die Verpackungsgröße variieren und den Preis pro Gebinde konstant halten, was letztendlich vom Verbraucher schlecht zu beobachten und zu vergleichen ist. Das Vermarktungssystem der Früchte wird durch die nur ungenügend definierten Eigentumsrechte an den Bäumen und Früchten kompliziert. Die Früchte werden als Allmende-Gut wahrgenommen, obwohl die intensive Nutzung zu Knappheit und Rivalität geführt hat. Die Früchte geniessen eine hohe Verbraucherpräferenz und Konsumenten äusserten hohe Zahlungsbereitschaft. Zur Verbesserung des bestehenden Vermarktungssystems wird empfohlen, dass die Märkte in Harare in noch stärkerem Maß mit Früchten guter Qualität beliefert werden, da die dort befragten Konsumenten eine hohe Präferenz für die Früchte zeigten. Weiterhin sollten die institutionellen Rahmenbedingungen gestärkt und eindeutige Eigentumsrechte an den Bäumen bzw. den Früchten definiert werden. Schlagwörter: Marktanalyse, Verbraucherverhalten, Institutionökonomie ACKNOWLEDGEMENTS A number of individuals, institutes and organisations have contributed financial resources, advises, time, moral support and information in order to accomplish the objectives of this study. Therefore, I would like to thank ICRAF/Bundesministerium Für Wirtschaftliche Zusammenarbeit (BMZ) for funding my fieldwork. I also equally appreciate the financial support from the University of Hannover, which made me to finish the last phase of my study. I am grateful to my supervisor, Prof. Dr. Erich Schmidt for his valuable comments and constructive criticisms throughout the period of the study, in which without his efforts the appearance of this piece of work would not be this attractive. I also wish to express my sincere thanks to Dr. Elias Ayuk for his useful comments and guidance during data collection. My appreciation also goes to the enumerators, participating traders and staff at Mbare central market, Gokwe and Murehwa growth point markets for their valuable time and willingness to provide information. Furthermore, I don’t like to forget the consumers at Mbare, City Botanical gardens, Westgate, Gokwe and Murehwa sites for their devotion and co-operation during data collection process. The policy makers including District Executive Officers, ward, village and traditional leaders of all the study sites are highly acknowledged for issuing me with permits to conduct the research in their respective areas as well as providing helpful information. I am also taking this opportunity to thank all staff members of ICRAF-Zimbabwe, Department of Research and Specialist Services (DRSS) and Agricultural Extension Services (AGRITEX) for providing me with the conducive working environment during my data collection phase. I am equally thanking the staff members of the Institute of Horticultural Economics, University of Hannover, especially my colleague Mithöfer for helping me with various logistics on how to survive and work comfortably at the university and German environment as a whole. Lastly, I would like to thank all members of my family, particularly my husband, Nelson Loponi for his patience, tolerance, determination and moral support during all the way long. Tunu Ramadhani TABLE OF CONTENTS Abstract ..................................................................................................................................... v Zusammenfassung ..................................................................................................................vii Acknowledgements ..................................................................................................................ix
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