Assessment of tobacco marketing system at farmers level, a case of Tanzania leaf tobacco company of Morogoro, Tanzania

Thesis

Tobacco is one of the major agricultural export crops in Tanzania. Tobacco farming industry is a contract farming business involving fanners in primary cooperative societies located in eight production regions namely Tabora, Shinyanga, Mbeya, Singida, Rukwa, Iringa, Songea and Kagera. A large proportion of tobacco grown in Tanzania (85%) is exported to overseas markets. The main tobacco customers demand tobacco leaves of high quality. The tobacco buying companies through Association of Tanzania Tobacco Traders (ATTT) are committed in ensuring that the tobacco purchased is of high quality to make sure that customers choose their produce over those of their competitors. In spite of the company’s effort towards improving the quality of tobacco produced, the problem of poor tobacco quality still exists. Although studies on tobacco marketing had been carried out, information regarding tobacco quality at farmers’ level is still insufficient. Generally the study intended to create a better understanding of the factors influencing the strategies for the improvement of quality of tobacco sold to Primary Cooperative Societies. Specifically, this study examined the impact of tobacco quality to farmers and the buying companies identify factors that lead into marketing of low quality tobacco at farmers level, identify and analyze cost and revenue of tobacco to growers and suggest alternative solutions that would reduce the problem of low quality tobacco at farmers’ level. The data were collected, from seven Primary cooperative Societies, officers from all tobacco stakeholders and company’s officials in Tabora region. Part of the analysis was based on descriptive statistics to describe the responses, characteristics and trends of some data and information regarding the current marketing system of tobacco at farmers’ level. Gross Margin Analysis was used in order to examine the effect of quality and price on farmers’ income. The results of the study indicate that poor post harvest handling methods severely affect the quality of tobacco. The problem of quality has been a cause of higher cost of handling for the buyer companies and has also resulted into lower prices paid to farmers. The study recommended that, the company and other tobacco stakeholders should provide adequate and quality extension services on good agronomic practices, construction of improved barns and tobacco storage which will eventually improve tobacco quality at farmers’ level.