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Institutions, production and transaction costs in the value chain of organic tomatoes and sweet peppers in tourist hotels, Unguja and Arusha

Mbapila, Shadrack J. and Karantininis, Konstantinos and Lazaro, Evelyne A. (2019). Institutions, production and transaction costs in the value chain of organic tomatoes and sweet peppers in tourist hotels, Unguja and Arusha. Cogent Food & Agriculture. 5, 1-22
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Abstract

The aim of this paper was to evaluate production and transaction costs in organic tomatoes and sweet peppers value chain. The study was conducted in Arusha and Unguja. A preliminary survey was conducted in 2014, and then a stratified sampling procedure was used to select a sample of producers, tourist hoteliers and suppliers. The regions Arusha and Unguja were selected purposively and key informant interviews and snowballing sampling procedures were also used. The Heckman’s procedure was used to analyze factors affecting the probability and extent of participation in tomatoes and sweet peppers markets. The probit results from the Heckman’s two-stage process show that ownership of assets such as storage facilities, transportation assets and being under contract farming or farmers cooperatives increased the probability of market participation, while the heckit results (OLS corrected for selectivity bias) shows that experience in marketing increased the quantities of tomatoes and sweet peppers marketed while high marketing costs such as mobile phone costs decreased the quantities of tomatoes and sweet peppers marketed. Organic producers’ cooperatives and collective marketing strategies are the possible solutions to reduce transaction costs, improve access to the tourism market, and increasing shelf life by having collective storage facilities and transport. Policy changes that will ensure producers sell under cooperatives and collective marketing strategies should be implemented to improve producers’ market access.

Authors/Creators:Mbapila, Shadrack J. and Karantininis, Konstantinos and Lazaro, Evelyne A.
Title:Institutions, production and transaction costs in the value chain of organic tomatoes and sweet peppers in tourist hotels, Unguja and Arusha
Year of publishing :2019
Volume:5
Page range:1-22
Number of Pages:22
Publisher:Cogent OA
ISSN:2331-1932
Language:English
Publication Type:Journal article
Refereed:Yes
Article category:Scientific peer reviewed
Version:Published version
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics
(A) Swedish standard research categories 2011 > 4 Agricultural Sciences > 401 Agricultural, Forestry and Fisheries > Agricultural Science
Keywords:tourism sector, production and transaction costs, market challenges, producers’ cooperatives, collective marketing strategies, linkage opportunities
URN:NBN:urn:nbn:se:slu:epsilon-p-100570
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-p-100570
Additional ID:
Type of IDID
DOI10.1080/23311932.2019.1631581
ID Code:16246
Faculty:LTV - Fakulteten för landskapsarkitektur, trädgårds- och växtproduktionsvetenskap
Department:(LTJ, LTV) > Department of Work Science, Business Economics, and Environmental Psychology
Deposited By: SLUpub Connector
Deposited On:12 Aug 2019 07:13
Metadata Last Modified:12 Aug 2019 07:13

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