Value chain analysis for oranges in Muheza district,Tanzania
2008
Lazaro , A
A study was conducted in Muheza District, Tanga from mid 2006 to mid 2007 to identify the existing value chain for orange in the study area; assess the performance of the value chain as well as the contribution of income from orange to total household income; and identify the problems and constraints facing the value chain for orange in the study area. The findings in this study showed that the value chain for oranges in Muheza District is dominated by middlemen who fall under four levels: the “junior” and “senior” middlemen based in the villages and the “junior” and “senior” middlemen based in Muheza town. On average, orange producers obtained the lowest gross margins ranging from Tshs 89 550 to 459 362 per annum. The wholesalers from Nairobi earned the highest margins (average of Tshs 6 449 450 per trip). The analysis of household incomes at the producer level showed that income from oranges constituted about 51% (Tshs 260 000) of the total household income. The following were identified as major problems/constraints facing orange producers in the study area: poor bargaining power, loss of produce, selling of immature oranges and poor access to financial' capital. The study recommends for an establishment and strengthening of fanner’s associations and/or trading societies, establishing and sensitization of farmers to join local financial institutions (e.g. SACCOS) and the need to develop the fruit processing industry in Tanzania as the alternative means of alleviating the farmers’ problems.
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