An Investigation on the Factors that Contribute to the Influence of Warehouse Receipt System on the Price of Raw Cashew nut: A case of Smallholder Growers in Mtwara Region
Warehouse Receipt System (WRS) offers good example of commodity marketing institution and embryonic entry point for agricultural marketing development in Tanzania. This study investigates the factors that contributing to the influence of WRS on the market price of raw cashew nuts (RCN). The investigation is based on the determinants of supply, demand, and productivity that affect market price under WRS. The study was conducted in Mtwara region, in southern Tanzania. Two cooperative unions were purposively selected, namely: Tandahimba Newala Cooperative Union (TANECU) and Masasi Mtwara Cooperative Union (MAMCU). A cross sectional survey was conducted to collect primary data from 80 smallholder farmers, 20 primary cooperative societies (PCS), six exporters, six processors, four bank officers: two from CRDB and two from NMB and four warehouse operators. Secondary data were secured from reliable individual and institutional sources. Only descriptive analytical techniques were employed. The analysis shows that despite the differences in respondents‘ perceptions, the results provide basic answers to the research questions: The perceived supply of RCN has positive influence on the market price, to some extent the cashew nut market price depends on the demand and there is a direct relationship between productivity and market price of RCN under WRS. Consistent with the literature on market economy, the study has succeeded to generalize from a particular situation, the theories which describe the price responsiveness to changes in supply, demand and productivity. However, the WRS is found to be creditable apart from the challenges it faces. The findings suggest that the dimensions of challenges found in WRS must be strategically taken care of so as to avoid radical reversals of agricultural marketing systems.
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