A Research Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University Dar es Salaam Campus College
This study presents an assessment of the rice value chain in Dakawa village within Morogoro Region. This region is considered as the rice-basket for Tanzania. A sample size of 53 smallholder farmers was identified for the study.
The first objective of the study was to examine and describe the status of existing value chain in rice production. Second objective was to find out the existing marketing channels so as to identify the specific market actors for each channel and third objective was to analyze the different value chain activities and their margins in the rice production processes and to suggest what is to be done in order to improve or maintain value chain margins of the rice crops.
The key players of rice value chain in Dakawa are input suppliers, producers/ farmers, transporters, stakeholders, government, millers, traders and consumers.
The study reveals that small holder farmers have low level of education as about 90% of them had primary school education as their highest level. This low educational background cost the small holders when it came to the adoption of new and more modern ways of food production, improved food storage facilities, access to credit.
The study reveals that crop insurance does not exist not only in the village but in the country as a whole. Erratic weather patterns that include floods or too little rainfall affect and demoralize the farmers, particularly the smallholder farmer. Access to credit, is perhaps, the biggest single factor that affects rice farming among smallholder farmers in Dakawa. Financial institutions require acceptable collateral before credit can be advanced to a borrower. Smallholder paddy farmers in Dakawa do not have the requisite land, tractors and machinery against which credit can be advanced. Poor access to credit primarily due to lack of land ownership by farmers in the irrigation schemes in Dakawa is a major bottleneck. Farmers can only, therefore, borrow against their crops.
This study recommends that in order to enhance improved rice production so as to increase small holders ‘income levels in the area, provision of supporting services like better infrastructure systems, roads, warehouse system, credits and crop processing to add value and extension services need to be made available to the farmers.