Abstract
An increasing demand of agricultural intensification and value addition necessitates the use of improved inputs such as improved seed. Smallholder farmers contribute about 70 % of agricultural production in Tanzania. Agriculture sector in Tanzania contributes about 24.1 % of the GDP, 30 % of exports and 65% of industrial raw materials. Thus, agriculture development, economic growth and industrialization are inseparable. Due to the nature of the product, smallholder farmers cannot judge the overall excellence of seed at the time of buying. This paper assessed quality uncertainty in maize and vegetable seed and its implication for market exchange between farmers and seed sellers in Kilolo district, Iringa Tanzania. The study used a random sample of 130 smallholder farmers and representatives from ten seed companies. Asymmetric information prevails between the two trading sides i.e. sellers and buyers leading into quality uncertainty. Moreover, product augmentation is profoundly overlooked whereby most of seed companies have not augmented their products. Because an improved seed is a quintessential example of an experience good, quality uncertainty of some crop varieties under field conditions favored some seed brands to be used more by farmers compared to others. This paper offers a thorough deduction on quality uncertainty under farmers’ field condition and its implication on market exchange. It adds information in the body of knowledge on how an improved seed can contribute to sustainable production of food and industrial raw materials, which is a step towards desired industrialization agenda in Tanzania.
Highlights
The agriculture sector employs about 90 percent of Tanzanians (URT, 2014)
Core benefits of each seed brand variety are defined against the proportion of farmers (A1) in Kilolo district who reported to use the variety in the 2018 growing season
This study evaluated inter-company differences of seed quality attributes that appeared to be common in some varieties
Summary
The agriculture sector employs about 90 percent of Tanzanians (URT, 2014). It is the major supplier of industrial raw materials (65%) and contributes around 24.1 % of the GDP, 30 % of total exports and 65 % of industrial raw materials (URT, 2013). The Tanzanian government has paid due attention to build up this sector in its growth and transformation programs through Agricultural Sector Development Programs (ASDP I and II). Improved seed is one of the dimensions of agriculture intensification which aims at improving crop productivity. It defines the quantity and quality to be realized on the farm produce (Kaguongo et al, 2014). A quality seed is a result of research and development of appropriate and adapted products
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