Cashewnut Production And Marketing In Mkuranga District, Tanzania

ABSTRACT

This study analysed the performance of cashewnut production and marketing in Mkuranga District. More specifically, the study dealt with identifying major problems affecting cashewnut production and marketing, profitability of cashewnuts and its competing crop enterprises. In addition, an analysis of factors influencing buyers’ net profit was done. The survey was conducted using a sample of 120 households, 24 traders and four secretaries of primary cooperatives. A structured interview, personal observation and key informants were methods used to collect the primary data. On the other hand secondary data were obtained from key organizations in the industry. Tools of data analysis included descriptive statistics, gross margin, as well as regression and correlation analyses. The results of analysis in this study showed that low prices, unreliable markets, high input costs, pests and diseases were the most important constraints. The highest and lowest gross margin obtained from cashewnuts were 159 054 Tshs/ha and 82 110 Tshs/ha for coconut, respectively. The results of correlation analysis showed that selling price was positively correlated with market margin (r = 66.5%; P = 0.003). The regression results indicated that education, selling price, and transport cost significantly (P < 0.05) affected the traders’ net profit, whilst buying price, and trading experience, were not significant (P < 0.05). The existing marketing system actors comprised of producers, agents, collectors, cooperatives, traders and consumers. Generally, cashewnuts marketing system was seen to be inefficient and underdeveloped. Thus, cashew development interventions should be directed to both production technological gaps and marketing problems.