WHY TRANSACTION COSTS IMPEDE SMALLHOLDER FARMERS’ PARTICIPATION INTO EXPORT ORGANIC MARKETS

Abstracts There have been growing trends of exports from countries dominated by smallholder agriculture to many of developed world (Kledal and Kwai, 2010). This shows that smallholders’ farmers development perspectives have gained interests in global markets and Value chain Approaches. However, apart from standard constraints in economics that impede participation of smallholder farmers in value chains at production and marketing, transaction costs do also constrain smallholder farmers in participating in value chains. To understand transaction costs effects on smallholder farmers’ participation in global value chains a study on governance of global value chains for organic ginger exports was conducted in Tanzania. The study employed a case study method, using transaction cost theory in a value chain approach. General characteristics that describe the smallholder farmers (such as small acreage size, proximities to and status of markets infrastructures, the levels of dependence on agriculture farming, household business structure) and the institutions they operate in were found to be the main reasons for high transaction cost proxies, hence the main reason for failure of smallholders to participate in global markets. This is because they cause high frequency of transaction, high asset specificity, high uncertainty, opportunism and bounded rationality. When developing global value chain these characteristics of Smallholders should be taken care of apart from the other measures that describe the trading between countries and those which determines production and productivity

Urbanization and transformation of agri-food system: Opportunities for organic producers in developing countries

Developing countries especially in Sub-Saharan Africa are pronominally agricultural based. Where the majority of the population resides in rural areas and engaged in agriculture as a source of livelihood. However, recently there has been a growing debate globally on rapid urban population growth in developing countries. The aim of this paper is to present opportunities for organic producers emanating from transformations of agri-food systems in urban area. The paper is based on research activities of a project ‘Productivity and Growth in Organic Value Chains (ProGrOV)’. ProGrOV is collaboration between universities in Uganda, Kenya, Tanzania and Denmark addressing the need for sustainable development of smallholder farming systems in East Africa with focus on value chains for local high-value markets as well as export chains. The project addresses innovations for improving production as well as market access. The transformations of agri-food systems addressed in this paper resulting from urbanization are evidenced by proliferation of supermarkets, specialized organic-food shops, food supply to tourist industry and traditional farmer markets. Efforts for promoting organic products in East Africa have traditionally focused on export markets this paper based on evidence from ProGrOV studies argue that there is opportunity for developing domestic organic product value chains to meet the demand from urban population growth and transformed agri-food systems

First Report of Dactylispa lenta Weise (Coleoptera: Chrysomelidae) as a Vector of Rice Yellow Mottle Virus

Rice yellow mottle virus (RYMV) is a severe disease of rice in Africa. It is naturally transmitted by several species of beetles. Chaetocnema pulla is widely believed to be an important vector of RYMV in Tanzania. However, the high incidence of RYMV in some rice fields where C. pulla was not seen in large numbers indicated that more vectors of the virus might exist. Transmission studies conducted showed Dactylispa lenta to be a vector of RYMV in Tanzania. This has not been previously known

Social Networks, Governance and Transaction Cost Effects on Organic Tomato and Sweet Pepper Tourist Hotels Market in Arusha and Unguja

The objectives of this study were to (i) determine the social networks of the main actors in the organic food value chain in the tourism sector (ii) determine governance in the value chain of organic tomatoes and sweet peppers for the tourism sector in Arusha and Unguja and (iii) to evaluate production and transaction costs of actors in the organic tomatoes and sweet peppers value chain in Arusha and Unguja

Social networks, governance and transaction costs effects on organic tomato and sweet pepper tourist hotels market in Arusha and Unguja

PhD ThesisThe objectives of this study were to (i) determine the social networks of the main actors in the organic food value chain in the tourism sector (ii) determine governance in the value chain of organic tomatoes and sweet peppers for the tourism sector in Arusha and Unguja and (iii) to evaluate production and transaction costs of actors in the organic tomatoes and sweet peppers value chain in Arusha and Unguja. The study was conducted in Arusha and Unguja. A preliminary survey was conducted in 2014. Then a stratified sampling procedure was used to select a sample of producers, tourist hoteliers and traders/suppliers. Key informants interviews and snowballing sampling procedures were also used. The results indicated that producers were close to other actors by closeness centrality of 2.12 in Arusha and 3.12 in Unguja. Suppliers/traders were central in the marketing of tomatoes and sweet peppers by betweenness centrality of 91 in Arusha while in Unguja producers‟ organization was central by betweenness of 533. Producers‟ organizations had many actors connected to them by a degree of 17 in Arusha and 28 in Unguja. The density of networks was low 0.01 due to fewer supporting institutions and lack of organic input suppliers. About four forms of governance structures were prominent in organic tomato and pepper value chain: market, modular, rational and captive. The probit results from the Heckman‟s two-stage process show that ownership of assets such as storage facilities, transportation assets and being under contract farming increased the probability of market participation, while experience in marketing increased the quantities of tomatoes and sweet peppers marketed. High marketing costs such as market levy, brokers and mobile phones costs decreased the quantities of tomatoes and sweet peppers marketed. Institutional arrangements (contract farming) were the possible solutions to reduce transaction costs effect, improve access to the tourist hotels market, increasing shelf life by having collective storage facilities and transport. Producers‟ cooperatives andcompanies enabled the promotion and production of organic tomatoes and peppers. The choice of captive and modular governance structure by lead actors ensured access to organic input and market

Comparative development and population growth of an exotic stemborer, Chilo partellus (Swinhoe), and an ecologically similar congener, C. orichalcociliellus (Strand) (Lepidoptera: Crambidae)

Studies were conducted to determine the effect of temperature and diet on the development of Chilo partellus (Swinhoe) and Chilo orichalcociliellus (Strand) (Lepidoptera: Crambidae). Developmental times of C. partellus and C. orichalcociliellus for the egg, larval and egg - adult life stages were inversely related to temperature. The larval developmental period of C. orichalcociliellus reared on artificial diet was longer than the developmental period on natural diet. Chilo partellus had a higher intrinsic rate of natural increase than C. orichalcociliellus at all diet/temperature combinations except natural diet at 31ºC. Des études ont été menées afin de déterminer l'effet de la température et de l'alimentation sur le développement de Chilo partellus (Swinhoe) et Chilo orichalcociliellus (Strand) (Lepidoptera: Crambidae). Les durées de développement des oeufs, des stades larvaires et du développement total sont inversement corrélées avec la température. La durée du développement larvaire de C. orichalcociliellus élevé sur milieu artificiel est plus longue que celle observée avec une alimentation naturelle. Chilo partellus a un taux intrinsèque d'accroissement naturel plus élevé que C. orichalcociliellus pour toutes les combinaisons d'alimentation et de température étudiées à l'exception de la combinaison associant une alimentation naturelle et 31 ºC

Institutions, production and transaction costs in the value chain of organic tomatoes and sweet peppers in tourist hotels, Unguja and Arusha

The aim of this paper was to evaluate production and transaction costs in organic tomatoes and sweet peppers value chain. The study was conducted in Arusha and Unguja. A preliminary survey was conducted in 2014, and then a stratified sampling procedure was used to select a sample of producers, tourist hoteliers and suppliers. The regions Arusha and Unguja were selected purposively and key informant interviews and snowballing sampling procedures were also used. The Heckman’s procedure was used to analyze factors affecting the probability and extent of participation in tomatoes and sweet peppers markets. The probit results from the Heckman’s two-stage process show that ownership of assets such as storage facilities, transportation assets and being under contract farming or farmers cooperatives increased the probability of market participation, while the heckit results (OLS corrected for selectivity bias) shows that experience in marketing increased the quantities of tomatoes and sweet peppers marketed while high marketing costs such as mobile phone costs decreased the quantities of tomatoes and sweet peppers marketed. Organic producers’ cooperatives and collective marketing strategies are the possible solutions to reduce transaction costs, improve access to the tourism market, and increasing shelf life by having collective storage facilities and transport. Policy changes that will ensure producers sell under cooperatives and collective marketing strategies should be implemented to improve producers’ market access

Identification of vectors of rice yellow mottle virus in Tanzania

Archives of Phytopathology and Plant Protection, 2001; 33 (5): 395-403countries in East Africa and almost all the countries in West Africa. At present, it is undoubtedly the most important disease of rice in Tanzania. It was first reported in the 1980's. It has spread fast and is now found in almost all the rice growing areas. In view of the increasing incidence and importance of RYMV on rice production in Tanzania, studies on the epidemiology of the disease were initiated in order to find ways of controlling the disease. Transmission studies were carried out on seventy-seven species of beetles and grasshoppers collected from different rice growing locations to determine vector identity. Four vectors have been identified (three chrysomelids; Dactylispa sp., Chaetocnema sp. and Chaetocnema pulla) and one tetrigid grasshopper. The wide distribution of Chaetocnema spp. in the RYMV endemic areas suggests that the species are the most important vectors responsible for infections in these areas

Newly recorded species of Chaetocnema, vector of rice yellow mottle virus in Tanzania

New Zealand Journal of Crop and Horticultural Science, 2001; 29:61-65Rice yellow mottle virus (RYMV) belongs to the Sobemovirus group and causes the only known virus disease of rice (Oryza sativa L.) peculiar to the African continent to date. It was first recorded in Kenya in 1966 and was not reported in Tanzania until in the 1980s. It has spread fast and is found in almost all the rice growing areas. Clearly, it is the most important disease of rice in Tanzania. RYMV is transmitted mechanically and by chrysomelid beetles. Chaetocnema pulla Chapuis is thought to be an important vector of the disease in Tanzania. Transmission studies conducted revealed a new species, Chaetocnema sp. nov. prope varicornis Jacoby, found in Tanzania as also a vector of RYMV. This species has not been previously reported to occur and to vector RYMV in any of the countries where the disease is prevalent. Further studies on the roles of these vectors and the dynamics of virus spread are necessary to provide more information on the epidemiology of this disease in Tanzania