Value chain analysis for sawnwood from Ulanga district to Morogoro municipality, Tanzania

Master Thesis

This study analyzed sawnwood value chain in Ulanga District and Morogoro Municipality. Specifically, the study mapped the actors along the chain, determined profit ateach node and examined factors influencing profitability among actors along the value chain. The sample of 66 respondents was selected for interview from four wards based on their market relationship. Both qualitative and quantitative data were collected. Content analysis was used to analyze qualitative data and sub-sector mapping was employedto map sawn wood value chains,while SPSS computer software was used to analyze quantitative data.Results indicated thatthere were various actors along the sawn wood value chain but the major ones found in the study area were sawn woodproducers, transporters, wholesalers, retailers and consumers as well as service providers.The profit accrued along the value chain is comparableamong retailers and wholesalers but producers are far less benefitingwhereby retailers takes a share of 46.3% of the total profit followed by wholesalers and/or transporters who earna shareof 38.5% of the total profit while producers accrue only 15.5% of the total profit.Regression analysis revealed thatprice, quality of sawnwood and capital of the actors were statistically significantat (P<0.05)in influencing sawnwood profitability. It is recommended that sawnwood producers should organize themselves in groups and share their capital so as to be in a position to search for the market and transport consignment to the distant markets such as Morogoro, instead of selling within the district which will help them to have negotiation leverage to wholesalers and hence maximize their profit.

Ministry of Natural Resources and Tourism in particular, Tanzania Forest Services (TFS)