Value Chain Analysis of Potato in the Southern Highlands of Tanzania: Constraints and Solutions

This study aimed at assessing the value chain of Potato (Solanum tuberosum) in the Southern Highlands of Tanzania so as to characterize its structure and institutional flow of the commodity; analyse institutional margins and challenge; and finally make policy recommendations based on the findings. It was a qualitative research that triangulated data collection methods by employing Focus Group discussions (FGD) with farmers, middlemen, local traders and scheduled interviews with various off-takers (traders and processors) and key informants (government officials and service providers). Results show that potato value chain is fragmented and dominated by numerous middlemen bulking the commodity at operating at different levels (village, local townships and major urban centres, the major market destinations of potato in the country is scattered in all urban centres especially the big cities (Dar es Salaam, Arusha, Mwanza, Tanga and Dodoma. During peak season potatoes find destinations in the regional market particularly Kenya, DRC, Rwanda and Zambia. During off-seasons potatoes take a reverse movement particularly is imported from Kenya. Prices are mainly determined by seasonality (demand/supply) and variety (improved variety are much more expensive). Gross margin analysis indicated that off-takers get more or less same returns which are larger than that of producers (confirming the general perception in Tanzania that off-takers usually exploit producers. The major constraints facing potato value chains limited availability of seed potato; dominance of middlemen, counterfeit inputs; prevalence of fungal disease; limited processing options. The author made a number of policy recommendations including establishing legal framework that supports contract farming (out-grower scheme) business model in potato value chain; review of seed certification and imports policy; and supporting seed potato production, research and post-harvest management.