Analysis of production and trading trends in the rice value chain in Mbarali District of Tanzania: perspectives from 2019 to 2021

Abstract

Rice is an essential food crop that significantly contributes to economic growth, food security, and poverty alleviation in many countries. In Tanzania, the rice value chain is critical for revenue generation and employment to thousands of people. However, little attention has been given to the profitability of the rice value chain in different parts of the country. This cross-sectional study investigated the rice value chain in Mbarali District, Tanzania, spanning the agricultural years 2019 to 2021. Using the Value Chain Analysis and Transaction Cost Economics, the study assessed the production and trading of rice in the rice value chain in Mbarali district. The study involved a total of 126 participants selected by snowballing. Data were collected by using structured, semi-structured and unstructured interviews to understand the actors' roles and the value-adding processes throughout the chain. Descriptive statistics were used to analyze production costs, input-output dynamics, and distribution patterns within the value chain. The findings revealed substantial financial investments required for paddy production in Mbarali District in terms of seeds, fertilizers, pesticides and herbicides, and farm implements. The findings also showed varying cost efficiencies across seasons, with in-season turnovers demonstrating robust revenue generation relative to input costs, particularly in sales to retailers (0.61) and wholesalers (0.75). However, out-of-season challenges were evident, notably in maintaining efficiency during slower market periods. The study contributes empirical insights into how to enhance the resilience and competitiveness of Tanzania's rice sector amidst evolving climatic and economic challenges and underscores the need for a policy and initiatives that would strengthen the resilience of the rice value chain against climatic and economic stresses. The results have significant implications for policymakers, academics, and other stakeholders interested in promote sustainable development of the rice value chain in Tanzania.