The economics of grape production in Tanzania: price incentive and bottlenecks of production for small-holder producers

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
University of Dar es Salaam
The main objective in this study has been to study production of grapes in Tanzania. The emphasis has been placed on incentives, particularly low price incentive can be used to increase production. In addition, bottlenecks hindering grape production development have been identified. In this study, both qualitative and quantitative methods of analysis have been used, The qualitative methods of analysis involved a brief theoretical and empirical survey on the problems of grape production and the peasant behaviour. As regards the quantitative analysis, statistical and econometric techniques have been used, For the statistical exercise, tabulated and graphed tends in absolute values in output, acreage and prices from 1968 - 1982 have been presented, In the econometric analysis price has been found to be significant in. only one regression, whereas time factor has been found to be significant in most regressions. In most regressions, the price estimates have been perverse or insignificant or both. Also the estimates of supply response to prices of an alternative crop have not been clear cut. Bottlenecks identified include, lack of inputs poor crop practices due to lack of extension services and limited knowledge on the crop, high initial investment costs and poor farm tools. The present extension and agriculture education system is not functioning optimally. Problems related to marketing, transport and climatic conditions have also been identified. Thus the need to improve: (i)transport, marketing and input distribution (ii) farm tools and technology used (iii)extension services and general education of farmers (iv) the accessibility to productive resources all the year round have been high lightened. In the light of the above findings, main policy implications have been drawn. Price policy is a useful instrument in agricultural production, it can be used to encourage or discourage production. It can also induce diffusion of technology. However price policy by itself is not a sufficient policy instrument. Other complimentary policies are required such as strengthening research and training of extension staff, distribution of appropriate technological packages and improvement in transport and marketing.
Available in print form
Grapes, Economic conditions, Dodoma (region), Tanzania
Mgale, E. J (1984) The economics of grape production in Tanzania: price incentive and bottlenecks of production for small-holder producers, Masters dissertation, University of Dar es Salaam. Available at ( )