The Contextual Analysis of Cashew-nut Industry in Southern Tanzania After Market Liberalization
Dennis C. Rweyemamu (Economic and Social Research Foundation (ESRF)P.O.BOX 31226, Dares Salaam, Tanzania )
Download Article | Published On 01/01/2002

Abstract

This study examines the performance of cashew nut industry in Southern Tanzania under the current policies of market liberalization. It looks at the activities in the crop output market. Since the inception of liberalization to the cashew sector in Tanzania, stakeholders are expressing divergent views as to how the markets for both inputs and outputs have performed. The specific objectives of the study were to assess production performance of cashew nuts after liberalization, identify institutional changes that have taken place, and assess the behavior of market participants and how they influence prices and marketing costs. The study also aimed at assessing whether the market structure has changed following liberalization and ultimately identifies points of intervention that could improve performance of the cashew industry. The study was based on secondary sources of information where various documents and reports were reviewed as a basis for making assessment. The study found that, liberalization measures to-date have led to strong private sector activity in cashew purchase and export. However, the partially liberalized industry still suffers from significant weaknesses that impair the production and marketing system, resulting from both market failure and government interventions. The output market is only partially competitive. As for inputs, there is lack of demand caused by failure of the market for seasonal credit. Government interventions in terms of the structure of levies and activities of input trust funds are also responsible for reinforcing some of the difficulties.

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