An Action Plan for Developing Agricultural Input Markets in Tanzania

Table II.15. Retail Fertilizer Prices by Regions in Tanzanian Shilling Per 50-kg Bag (2001/02)
Source: MAFS Inputs Section.
• Inadequate business, technical knowledge, and skills
at the distributor and retailer levels of fertilizers.
• Insufficient credit facilities for small-scale farmers
as well as for agribusinesses—importers, wholesalers,
and retailers—due to stringent collateral requirements
and high interest rates.
• Insufficient extension activities in the field despite
the efforts of some NGOs, private sector organizations,
and the extension department staff, which is
handicapped by paucity of funds.
• Inadequate knowledge on the part of farmers about
the proper use of inputs and its economics.
• Very little market promotion being done by the private
sector.
• Inadequate flow of market information—information
is available scattered over a number of organizations
without a system for the regular collection, analysis,
and dissemination of this information in the market
to key players.
• Private and public sector relationships need improvement
to provide mutual trust and confidence. This
will also help in coordination and working towards
improving the public/private sector partnership.
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Measures Needed
Measures are needed to strengthen the functioning
and performance of the fertilizer markets—policy, human
capital, finance, market information, regulation,
and others:
• The Government of Tanzania should follow a consistent
marketing policy. Ad hoc announcements or
interventions should be avoided.
• Donor supplies like KR II should be “marketized” in
the future—auctioned through specialist auctioneers
in Dar es Salaam or in the regions in small lots to
enable participation by small traders at or above full
costs.
• Level playing field should be maintained without
providing TFC any tangible or intangible benefits.
• An intensive training program for the retailers, wholesalers,
and importers in the basics of mineral fertilizer
and crop production technology, and fertilizer
marketing and business should be implemented to
develop human capital. This is particularly necessary
at the retailer and wholesaler levels in the rural areas
to develop and strengthen the distribution network