Regional Markets

Regional Markets for Local Development
Infrastructure and governance
RUDI’s baseline survey recommended different strategies for transporting produce
from the different intervention areas. The easy access to frequent transport opportunities
and the cheaper backhaul rates make truck transport an easy choice in Mbeya. In
Ifakara, on the other hand, larger traders transport their rice by train, as the town lies at
the end of a long, poorly maintained dirt road.
The establishment of associations via farming groups and the setting up of a WRS
contribute to farmers receiving better prices. Strengthening partnerships with private
operators and improving the market channels by enhancing the availability of market
information are among the challenges for RUDI’s future work.
Producer and consumer prices
Poor market information was a source of insecurity for farmers during price negotiations.
Asymmetric market information—compounded by poor financial literacy and incomplete
cost calculations—makes it very difficult for farmers to negotiate effectively on
prices. RUDI therefore focuses on training farmers on farm gross margin calculations so
that they can set profitable selling prices, at the farm gate as well as during the offseason.
RUDI’s report, stating that mislabelling and mixing of rice is a common practice for
increasing rice prices at point of sale, does emphasise that special value is attached to
known high-quality types and brands of rice in the regional Tanzanian market.
Innovation and sustainability
We saw that RUDI complements its technical trainings with education on marketing
skills, to both increase the quality and quantity of production as well as to enable farmers
to find an outlet for the increased production volume. RUDI further mentions the
importance of reliable storage capacity, a trustworthy transport system, processing at
milling hubs, and collective marketing (through WRS) as key contributions to improving
cereal value chains.
Future opportunities for RUDI
There are a number of issues where RUDI can facilitate the development of private sector
solutions to further enhance the growth of the cereal sector. The first is the underutilised
potential of irrigated areas (modern, improved, or traditional). A lot of smallholders
live in these areas, often organised in farmers’ groups, which makes it easy to share
market information. Also many services are already in place, but pricing is often skewed,
and therefore the services are not being fully utilised. The second area is to improve the
availability of market information from the main urban markets, such as Dar es Salaam,
to cereal-growing rural areas. Review of tools and identification of private sponsorship
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