Sawnwood value chain analysis in Ulanga District and Morogoro Municipality, Tanzania

Abstract

This study analysed sawnwood value chain in Ulanga District and Morogoro Municipality, Tanzania, focussing on mapping of actors, determining profit at each node and examining factors influencing profitability among actors along the sawnwood value chain. Both qualitative and quantitative data were collected. A sample of 66 respondents were interviewed (26 producers and 11 wholesalers from Ulanga districts and 29 retailers from Morogoro Municipality) from four wards based on their market relationship. Content analysis was used to analyse qualitative data and sub-sector mapping was employed to map sawnwood value chains. Profit margin analysis and multiple regression models were used to analyse quantitative data. Results indicated that there were various actors in the sawnwood value chain with the major ones being sawnwood producers, wholesalers/transporters, retailers and consumers as well as service providers. The profit accrued along the value chain is comparable among retailers and wholesalers, who also play the role of transporters, while producers benefit less from the sawnwood value chain. The results indicated that producers, wholesalers/transporters and retailers take 15.5%, 38.5% and 46.3% of the total profit, respectively. Regression analysis indicated that price, quality of sawnwood and the initial capital influenced actors' profit. It is recommended that sawnwood producers should be organized and pool their capital in order to increase their competitiveness in sawnwood markets.