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Rice Market Chain Analysis in Kigoma, March 2018

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Rice Market Chain Analysis in Kigoma, March 2018 MARKET CHAIN ANALYSIS AND DEVELOPMENT FOR RICE PRODUCED IN KIGOMA REGION, TANZANIA FINAL REPORT CONSULTANTS NICHOLAUS .E. NIKUSEKELA & GWALUSAJO K.J, KAPANDE MARCH, 2018 ACKNOWLEDGEMENT This comprehensive market analysis and development for rice produced in Kigoma region is the result of the invaluable efforts of many people and organizations. There is insufficient space and time to mention all organisations and individuals that made it possible to conduct a successful market chain analysis. However, our sincere gratitude goes to all who contributed technically and/or financially to this work. We are most grateful to the cooperation accorded by the management of NIRAS-LIC and all local leaders in the targeted irrigation schemes, villages and districts as well as all market chain actors (farmers, traders, transporters, millers and consumers) who made possible for this market analysis to take place. Specifically we would like to acknowledge the NIRAS-LIC for commissioning this work and supporting it technically and financially up to the end. We would also like to acknowledge the team from Nkamson Consultancy Co. Ltd who collected, analyses data/information, drafted the report and worked tirelessly to improve it to this final report. i Market Chain Analysis and Development for Rice Produced in Kigoma Region, Tanzania CONTENT ACKNOWLEDGEMENT i CONTENT ii LIST OF FIGURES iv ACRONYMS vii EXECUTIVE SUMMARY viii 1.0 INTRODUCTION 1 1.1. Project Background ................................................................................................................ 1 1.2. Objective and Deliverables .................................................................................................... 1 1.2.1. Objective of the study ................................................................................................... 1 1.2.2. Deliverables/Outputs .................................................................................................... 1 1.3. Market System Development Framework.............................................................................. 2 1.4. Structure Conduct Performance Model .................................................................................. 2 1.5. Structure of the Report ........................................................................................................... 3 2.0 METHODOLOGY 4 2.1. Market Analysis Design ......................................................................................................... 4 2.2. Market Study Area ................................................................................................................. 4 2.3. Data Collection Methods and Tools ....................................................................................... 7 2.4. Data Processing and Analysis ................................................................................................ 8 2.4.1. Quantitative and Qualitative Techniques ..................................................................... 8 2.4.2. Market Chain Mapping ................................................................................................ 8 2.4.3. Market Margin and Profitability Analysis .................................................................... 9 3.0 SITUATION ANALYSIS 10 3.1. Paddy Production and Productivity in Tanzania .................................................................. 10 3.2. Rice Imports and Exports in Tanzania (2008-2017) ............................................................ 11 3.3. Rice Trading in Tanzania ..................................................................................................... 13 3.4. Rice Prices in Tanzania ........................................................................................................ 13 3.5. Rice Consumption in Tanzania ............................................................................................ 14 3.6. Institutional and Legal Framework ...................................................................................... 17 3.6.1. Policy Decisions on Rice ............................................................................................ 17 3.6.2. Market and Price Support Policies ............................................................................. 18 4.0 STAKEHOLDER ANALYSIS 20 4.1. Overview and Concepts ....................................................................................................... 20 4.2. Market Chain Actors and Entry Requirements .................................................................... 20 4.2.1. Input Suppliers ........................................................................................................... 21 4.2.2. Farmers/producers ...................................................................................................... 21 4.2.3. Rice Traders ............................................................................................................... 21 4.2.4. Rice Millers ................................................................................................................ 22 4.2.5. Consumers .................................................................................................................. 22 4.3. Stakeholders’ Linkage Matrix .............................................................................................. 23 4.4. Market Players’ Capacity ..................................................................................................... 25 4.5. The Paddy/Rice Market Channels ........................................................................................ 25 ii Market Chain Analysis and Development for Rice Produced in Kigoma Region, Tanzania CONTENT 5.0 MARKET ANALYSIS FINDINGS 27 5.1. Beneficiary Characteristics .................................................................................................. 27 5.1.1. Sex .............................................................................................................................. 27 5.1.2. Age ............................................................................................................................. 27 5.1.3. Household Size ........................................................................................................... 28 5.1.4. Education .................................................................................................................... 29 5.2. Land Ownership and Paddy Cultivars .................................................................................. 30 5.2.1. Land Ownership ......................................................................................................... 30 5.2.2. Cultivars of Paddy/Rice Cultivated ............................................................................ 31 5.3. Paddy Production and Productivity in Kigoma Region ....................................................... 32 5.4. Prices for Rice Products in Kigoma Region......................................................................... 33 5.5. Rice Consumption in Kigoma Region ................................................................................. 35 5.6. Consumer Preference in Kigoma Region ............................................................................. 35 5.7. Potential Markets for Rice Produced in Kigoma Region ..................................................... 36 5.8. Competitiveness of Rice Produced in Kigoma Region ........................................................ 37 5.9. Information and Knowledge Flow ....................................................................................... 38 5.10. Access to Credit in Kigoma Region ................................................................................... 39 5.11. Gross Margin Analysis for Paddy/Rice Market Chain Actors ........................................... 40 5.12. Gender Issues ..................................................................................................................... 43 5.13. Market Challenges facing Market Chain Participants........................................................ 44 5.14. Major Paddy/Rice Production Constraints ......................................................................... 45 6.0 CONCLUSION AND RECOMMENDATIONS 47 6.1. Conclusion ............................................................................................................................ 47 6.2. Recommendations ................................................................................................................ 48 6.2.1. Paddy/rice production ................................................................................................. 48 6.2.2. Marketing systems ...................................................................................................... 48 6.2.3. Supportive factors ....................................................................................................... 49 6.2.4. Gender issues .............................................................................................................. 49 7.0 STRATEGIC PLAN 50 REFERENCES 53 APPENDICES 54 iii Market Chain Analysis and Development for Rice Produced in Kigoma Region, Tanzania LIST OF FIGURES Figure 1: Structure-Conduct-Performance Paradigm 3 Figure 2: Paddy production and area harvested in Tanzania (2008-2017) 11 Figure 3: Rice imports/exports in Tanzania (2008-2017) 12 Figure 4: Total rice consumption in Tanzania (2008-2017) 16 Figure 5: Paddy/rice market
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