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I CHARCOAL VALUE CHAIN ANALYSIS in UYUI DISTRICT AND i CHARCOAL VALUE CHAIN ANALYSIS IN UYUI DISTRICT AND TABORA MUNICIPALITY, TANZANIA JUMA KAZIMOTO A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS OF SOKOINE UNIVERSITY OF AGRICULTURE.MOROGORO, TANZANIA. 2015 ii ABSTRACT This study sought to analyse charcoal value chain in Uyui District and Tabora Municipality. Specific objectives were to identify actors and assess their rolesin the chain; determine profitand marketing margins of various actors along the value chain and determine the factors influencing charcoalprofitability among actors.Both qualitative and quantitative data were collected.The sample of 114 respondents was drawn for interview from eight wards. Content analysis was used to analyse qualitative data while SPSS computer software was used for quantitative data analysis.The results showed that the major actors in charcoal value chain in the study areas were charcoal producers, transporters, wholesalers, retailers and consumers.The profit accrued along the value chain is small and unevenly shared. Wholesalers and/or transporters take a big share of total profit (84%) followed by retailers (11%) while producers only accrue 5% of the total profit. Charcoal producers are the least beneficiaries in the chain due to lack of business skills indicated by the way charcoal is priced and how charcoal production costs are estimated. Multiple regression analysis revealed that there was statistically significant(P<0.05) relationship between socio-economic factors such as gender, level of education, the season charcoal business is done, number of charcoal bags sold at a time, category of respondent andthe district in which the actor carried out the business. However, other factors such as age, access to market information and experience in charcoal business were not statistically significant(P>0.05) to charcoal profitability but showed a relationship with charcoal profitability. This study recommends that there should be an organised charcoal industry and market networks. Also, producers need training on business skills and charcoal should be charged at full price based on the total cost incurred in the whole spectrum of production and marketing. iii DECLARATION I, JumaKazimoto, do hereby declare to the senate of Sokoine University of Agriculture that this dissertation is a result of my own original work done within the period of registration and that it has neither been submitted nor being concurrently submitted in any other institution. JumaKazimoto Date (Student) The above declaration is confirmed by Prof. Y. M. Ngaga Date (Supervisor) iv COPYRIGHT No part of this dissertation may be produced, stored in any retrieval system, or transmitted in any form or by any means without prior written permission of the author or Sokoine University of Agriculture in that behalf. v ACKNOWLEDGEMENTS First and foremost I would like to thank the Almighty God for His blessingsand protection throughout the time of study.Special appreciations are extended to my supervisor Prof. Y.M. Ngagafor his insights, patience, commitment and guidance whenever I needed his assistance throughout the research period.Also, I would like to express my gratitude to the entire staff of the Department of Forest Economics and Dr. K.K. Mwajombe of the Department of Agricultural Education and Extensionwho were there for me whenever I needed help and especially on academic and technical advice. Further thanks are extended to the Ministry of Natural Resources and Tourism in particular, Tanzania Forest Services (TFS) Agency for giving me permission to pursue studies, providing me with working tool (laptop) and financial support throughout the study.I am also highly indebted to Mr. Frank V.Sima, who by then was the Acting Manager for TFS Western zone for providing me with transport during my detailed surveys and also for providing me with secondary information for my study. In addition, thanks should go to Mr Fredrick E. Mazengo, Assistant Manager in Resource Management for TFS Western zone, Mr Thomas Wambura, The Senior Forest Officer TFS Western zone, Mr Wilson N.Subuya, The Tabora Municipal Natural Resources Officer, Ms LucyMaliga, The Forest Assistant in Uyui District for their patience, understanding and willingness to offer the valuable time and agreed to discuss on important matters pertaining to this study. Their assistance is highly acknowledged. vi Last but not least I would like to thank mybeloved wife Maria L. Malambo for her encouragement, patience, and tolerance and for taking care of our children during my absence for this study. My children Debora, Victor, Damian and Ethan missed me so much during the time of my absence. I thank them very much for their tolerance to the hardships they faced while I was away. This acknowledgement would be incomplete without special word of thanks to all charcoal dealers and village leaders in the surveyed wards for their willingness to talk and respond to my questions during the study. I know that it is very hard to thank everyone individually, but let me kindly ask you all who contributed immensely towards successful completion of this research to accept my cordial appreciations. May God bless them all! vii DEDICATION I dedicate this work to Almighty God for his blessings; and giving me mental, moral and physical strength to accomplish this important endeavour. To my parents, Mr and Mrs KazimotoBuyobe and my Late brother William Kazimotowhom together laid the strong foundation of my educationwith a lot of sacrifice. I also dedicate this work to my wife Maria for her support and to my beloved children Debora, Victor, Damian and Ethan. viii TABLE OF CONTENTS ABSTRACT ........................................................................................................................ ii DECLARATION ............................................................................................................... iii COPYRIGHT .................................................................................................................... iv ACKNOWLEDGEMENTS ................................................................................................ v DEDICATION .................................................................................................................. vii TABLE OF CONTENTS ................................................................................................ viii LIST OF TABLES .......................................................................................................... xiii LIST OF FIGURES ........................................................................................................ xiv LIST OF PLATES ............................................................................................................. xv LIST OF APPENDICES ................................................................................................. xvi LIST OF ABREVIATIONS AND ACRONYMS ........................................................ xvii CHAPTER ONE .................................................................................................................. 1 1.0 INTRODUCTION ................................................................................................. 1 1.1 Background Information .......................................................................................... 1 1.2 Problem Statement and Justification........................................................................ 2 1.3 Objective of the Study ............................................................................................. 4 1.3.1 Overall objective .................................................................................... 4 1.3.2 Specific objectives ................................................................................. 4 1.4 Research Questions .................................................................................................. 5 CHAPTER TWO ................................................................................................................. 6 2.0 LITERATURE REVIEW ..................................................................................... 6 2.1 Theoretical Framework ............................................................................................ 6 ix 2.1.1 Definition of terms ................................................................................. 6 2.1.1.1 The value chain concept ...................................................... 6 2.1.1.2 The value chain analysis ...................................................... 8 2.1.1.3 Value chain governance ....................................................... 9 2.1.2 Marketing Theories .............................................................................. 10 2.1.2.1 Market chain analysis ........................................................ 10 2.1.2.2 Marketing channels ............................................................ 11 2.2 Empirical Studies ................................................................................................... 11 2.2.1 A review of stakeholders in charcoal value chain ............................... 11 2.2.2 Charcoal production worldwide........................................................... 14 2.2.2.1 Charcoal production in Tanzania ....................................... 15 2.2.2.2 Tree species preferred for charcoal .................................... 16 2.2.2.3 Charcoal production
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