The effects of selected value chain factors on sales performance of sugar in the sugar industry of Tanzania: a case study of Kilombero sugar company limited

The intention of this study was to examine the effects of selected value chain factors on sales performance of sugar in the sugar industry of Tanzania the case being Kilombero Sugar Co. Ltd. The objectives of the study were to examine the extent to which sugarcane production, sugarcane processing and selected marketing factors affect sales performance of sugar in the sugar industry. Multiple regression analysis was employed to test the hypotheses of sugarcane production factors, sugarcane processing factors, selected marketing factors, and sales performance of sugar. The findings of the study revealed that sales performance had positive relationship with sugarcane production factors, sugarcane processing factors and selected marketing factors. The coefficient of determinant for the aforesaid factors was positive. Thus the findings revealed a high level of correlation among the tested variables. Sales performance is the fundamental determinants of the financial capability and the survival of the organization. Thus, according to the findings of the study proper mix of the selected value chain factors enhances sales of the company. On the other hand as revealed in the study, improvement of the agronomic practices in the cane fields increases the cane yields. Also from the findings of the study processing factors like improvement of boiling house efficiency enhances the extraction rates of the cane juice. Proper mix of the marketing factors across the value chain increases sales. From the findings of the study it is recommended that, Sugar industry in Tanzania should strive to improve the value chain factors in order to increase sugar production in the country and improve sales performance in today’s Tanzania sugar demand.