Causes And Consequences Of Closed And Imperfect Market For Grapes In Dodoma

ABSTRACT

This study was conducted to assess the causes and consequences of the closed and imperfect market for grapes in Dodoma. Three research objectives guided the study which includes identifying the sufficiency of the existing market of grapes produced by the small scale farmers in the study area, examination of the initiatives of a farmers group in enhancing the availability of market for grapes produced in the study area and find out the challenges of market-facing the grape farmers. The study applied qualitative and quantitative approaches and a cross-sectional research design was employed. A total 80 grape farmers and 20 key informants making a sample of 100 respondents as the sample size. The study used primary and secondary data. Data were collected through survey, interview and documentary review. Data were analyzed using Statistical Package for Social Science (SPSS) version 16.0.The study found out that 75% of the farmer respondents were mainly selling their grapes to the processing industries. But the findings show that 64% of total of the respondents indicated that traders provide better price for grapes compared processing industries even though they are the main buyers. About 37.5% said that the current market does not absorb all the produced grapes. This means there is no reliable market for grape farmers. The study also found out that 65% of respondents said that there is some existing farmer groups as one of the initiatives used to enhance the prices for grapes. The farmers cited the following challenges; low price of grapes, unreliable market, inadequate capital and price fluctuations, lack of strong bargaining power in setting grape prices, lack of alternatives in selling grapes and selling grapes on credit. Grape farmers in Dodoma lack reliable markets for grapes where-by it has been observed that buyers set prices. This does not satisfy farmers. It has beeen recommended that production of grapes should be focused on the market demand for example farmers should be encouraged to be engaged in contract farming growing in partnership with processing wine industry owners. By doing that, farmers will organize themselves into produce cooperative association in order to improve and increase their bargaining power for better grape prices.