The Institutional and Socio-Economic Constraints to Smallholder Tobacco Production and Marketing in Mount Darwin District of Zimbabwe: The Value Chain Approach

Abstract

This research was financed by the Govan Mbeki Research and Development Centre.

Abstract

This study used the value chain approach to identify the institutional and socio-economic constraints to tobacco production and marketing in Mount Darwin District; Zimbabwe. Three hundred and eighty farmers were randomly sampled for the study. Key informant interviews were used to collect data from input suppliers, contractors, buyers, auction floors, the Tobacco Industry Marketing Board, EMA and government extension staff. Data was analysed using descriptive statistics and the Pairwise ranking matrix.  Results from the study identified shortage of foreign currency and high transport costs as the major constraints affecting input suppliers. Dry spells, labour shortages, high inputs costs, fuel shortages, pests were some of the farmers’ constraints to tobacco production. Some of the major marketing constraints affecting the smallholder farmers included low producer prices, high transport costs, theft in transit and exploitative prices offered by tobacco merchants. Auction companies cited viability challenges due to declining tobacco volumes sold through auction floors. Tobacco contractors cited side-marketing, diversion of tobacco inputs by farmers and high operating costs as major constraints affecting their operations. The results from the study show that there are a lot of constraints affecting the smallholder tobacco chain and these can be addressed through collaboration among the chain stakeholders

Keywords: institutional constraints; tobacco value chain; Mount Darwin District; smallholder farmers.

DOI: 10.7176/JESD/10-7-09

Publication date: April 30^th 2019