A Dissertation Submitted in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University.
This paper contains the results of a study conducted in Masasi District, Mtwara Tanzania in 2014 assessing the factors contributing to low export prices of unprocessed cashewnuts.The research is in line with current efforts by government, and other stakeholders to unravel the problem of low export prices of unprocessed cashewnuts that has led to failure of the smallholder farmers to succeed in their agriculture activities in the cashewnut industry. The study focused on the determinants of low export prices of unprocessed cashewnuts by using survey method. Structured questionnaires were administered to Smallholder farmers of Chikunja and Nanditi who engage in farming activities in the areas. Interview method was used for the officials of in the export firms and CBT, the study used stratified, purposive and simple random sampling techniques. The findings from the study indicated that CBT has not been able to fully control the farm gate prices that have been indicated which have adversely increased the problem of lower export prices through unethical marketing practices conducted outside buying centers. The study also aimed at assessing the role of modern technology in cashewnut plantation, whether modern technology has a role in improving the yield and quality of the output in order to improve prices and ultimately wellbeing of the farmers. The study found out the government is playing a role to assist the farmers in providing inputs but it is not enough and that more support is required, the costs of inputs is too high and farmers cannot afford and end up purchasing less inputs which affects their yield and quality. The study also found that insufficient application of inputs, delayed rehabilitation of plantations, has affected the quality of output which in turn affect price. The study recommends that the government take serious measures to all those involved in unethical marketing prices by manipulating the farmers and lowering the indicative farmgate price set by CBT, also the study suggests that more training and seminars to the farmers on the best methods and practices/technology on the cashewnut production so as to increase yield and quality of output for better export prices. The government should also reduce the levies and other costs so that the farmer can profit.