This study was undertaken to assess the market efficiency of Jatropha value chain by
assessing the Jatropha market channels, pricing efficiency, profitability and price
transmissions. The data were collected from a sample of 130 Jatropha market chain
actors who were randomly selected from the Monduli and Arumeru Districts using a
structured questionnaire. Concentration indices were estimated to assess the market
power. Market margin was used to estimate the differences between the selling and
buying prices while gross margin was estimated to assess the income earned per each
value chain actor. Pricing efficiency analysis was used to assess market efficiency at
different nodes of the market chain while the average market shares were used to
estimate the proportion of producers’ prices against the ultimate consumption and
utilization level. The results showed the market structure of the Jatropha farmers is
unconcentrated and that of Jatropha traders is non-competitive with a concentration
indecesof 18% and 36% respectively. Results of profitability analysis indicated
variation in gross margins with the highest margin (1 363 610Tshs/kg) obtained by
processors while farmers’ market margin was the lowest (84Tshs/kg). Selling and
buying prices at farmers’ level were highly correlated with each other(r = 0.713; p =
0.01). At the traders’ level, results indicate a strong correlation between the selling
price and market margin (r = 0.941; p= 0.01). The average market shares results
indicated farmers received 35%, while traders and processors received percentage
shares of 21% and 43% respectively. In conclusion, the Jatropha marketing system is
not efficient in Tanzania. Therefore, the study recommends that interventions to
encourage Jatropha production and productivity in the country should be done and
pricing behaviours and market information systems should be strengthened.
Biofuel Evaluation for Technological Tanzanian Efficiency using Renewable-integrated Strategies (BETTER-iS) project and the World Agro-forestry Centre (ICRAF)