Charcoal Value Chain Analysis In Uyui District And Tabora Municipality, Tanzania

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(P0.05) 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.