TITLE:
The Characteristics and Functioning of Rice Markets and Trade in Tanzania: A Survey of the Major Rice Markets
AUTHORS:
Yohana James Mgale, George Frank Kinyashi, Shauri Timothy
KEYWORDS:
Structure of Rice Markets, Conduct of Rice Markets, Price Behaviour, Rice Market Concentration, Tanzania
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.12 No.5,
May
26,
2022
ABSTRACT: The analysis of market practices
is an essential part of examining marketing efficiency. This article examines
the characteristics and functioning of rice markets and trade in Tanzania. It
uses primary and secondary data collected through a survey of major regional
rice markets in Tanzania. Descriptive statistics, the Herfindahl-Hirschman
index and monthly seasonal indices were used for the analysis. According to the
findings, the distribution and sale of the rice are made through a network of
brokers, wholesalers and retailers who ensure that the product reaches
the final consumer through local shops and retail markets. The
country’s surplus and deficit markets for local rice appear to be separate as
the availability and trade of local rice are primarily concentrated in markets
closer to the main rice-producing regions. Rice prices vary depending on the
season, region, buyer-seller relationship, transport/distance and handling
costs. The rice value chain is very short, which can be extended by
establishing relevant industries and seizing opportunities in existing niche
markets. Likewise, although the size distribution of traders tends towards a
competitive market structure, they still face several constraints that affect
their ability to compete effectively. On the other hand, cultural and
socio-economic factors, price and quality characteristics are major
determinants of consumer purchasing decisions. The study also highlighted the
vital role of transporters, handlers, brokers and financial institutions in the
smooth functioning of rice markets.