Title
The geography of agricultural input markets in rural Tanzania
Date Issued
01 December 2021
Access level
open access
Resource Type
journal article
Author(s)
Rutsaert P.
Chamberlin J.
Oluoch K.O.
Kitoto V.O.
International Maize and Wheat Improvement Centre (CIMMYT)
Publisher(s)
Springer Science and Business Media B.V.
Abstract
The expansion of agro-dealers into remote areas can be seen as conducive to more smallholders adopting new technologies and inputs, to include improved seed and fertilizer. However, lower travel costs may be offset by agro-dealer decisions on stocking and pricing, reflecting both travel time from wholesale markets as well as the level of competition in localized areas. This paper investigates the geographical distribution of agro-dealers and related patterns of local market competition on the availability and prices of maize seed and fertilizer. We use a unique census of agro-dealers in eight districts of Tanzania (n = 299) which maps distribution points for agricultural inputs in these areas. Results suggested that despite a high number of agro-dealers, almost 30% of farmers lived more than an hour travel time from at least one agro-dealer. Instead of wide geographical coverage, agro-dealers tended to be found in clusters, with strong variation in cluster sizes between different districts. Overall, more remote agro-dealers faced less competition, resulting in fewer stocked product choices and charging higher prices to customers, even after controlling for travel time from district headquarters. Remote farmers are disadvantaged in their uptake of new technologies and critical production inputs due to lack of competition among agro-dealers. Our results suggest that highly aggregated and/or simplified measures of market access fail to reflect important heterogeneity in the market access conditions faced by farmers; a better understanding of distribution networks and competition is needed.
Start page
1379
End page
1391
Volume
13
Issue
6
Language
English
OCDE Knowledge area
Agricultura
Scopus EID
2-s2.0-85108805790
Source
Food Security
ISSN of the container
18764517
Sponsor(s)
This work was supported by the Bill & Melinda Gates Foundation, through its project “Taking Maize Agronomy to Scale in Africa” (TAMASA) (investment # INV-008260); USAID, through its project “Strengthening product profile based maize breeding and varietal turnover in ESA” (MTO 069018); and the CGIAR Research Program on Maize Agri Food System (CRP MAIZE- AFS) led by the International Maize and Wheat Improvement Centre (CIMMYT). The content and opinions expressed herein are those of the authors and do not necessarily reflect the views of the associated and/or supporting institutions.
Sources of information: Directorio de Producción Científica Scopus