Economic liberalization and privatization of agricultural marketing and input supply in Tanzania: A case study of cashewn uts

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Mwase, Ngila
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African Economic Research consortium
Since 1991 massive restructuring and liberalization of agricultural marketing have been undertaken in Tanzania. The study examines this process in the context of SAP and the need to ensure a more economically viable private sector driven agricultural marketing system. Private firms and traders are increasingly marketing agricultural inputs and outputs, hitherto a preserve of marketing boards and cooperatives. The study uses interviews and a questionnaire to examine the impact of these changed on smaliholder cashew producers, with special emphasis on the producers' views and expectations. We conclude that despite some financial and logistical problems, and vested interest, some positive results are discernible. Given favourable pricing, marketing and processing policies, the persistent decline in cashew production has been reversed, and producer prices have increased. The challenge is to develop a privatised and sustainable cashew marketing system that is responsive to producers' needs and expectations.