Supply Chain Analysis For Agricultural Inputs In Tanzania: A Case Of Subsidized Fertilizer In The Southern Highlands

ABSTRACT

The major objective of this research was to analyze supply chain of agricultural inputs in Tanzania using the subsidized fertilizer in the Southern highlands as a case study. It specifically sought to describe the subsidy fertilizer supply chain in the Southern highland zone with a view of identifying key stakeholders in the system and their linkages. The study further, aimed at examining the fertilizer consumption levels and the impact of fertilizer subsidy programme on maize production in the study area. Finally, the study presented policy options that would help improve the fertilizer subsidy programme. The study at large based on secondary data and information, obtained from various sources including; Sokoine National Agricultural Library, documents and consultations with officials from input unit in the Ministry of Agriculture, Food Security and Co-operatives, input transporting companies particularly Tanzania Fertilizer Company, input related publications from various sources including internet. Secondary data on fertilizer consumption and maize production were analyzed using annual growth models. This was aimed to examine the impact of the subsidy fertilizer on consumption and production levels. Results from the analysis indicated that there has been a significant increase in the fertilizer consumption and maize production level since the inception of the subsidy programme. From these results it can be concluded that, fertilizer use is a vital input for sustainable agricultural production and so its use has to be highly encouraged in order to maintain higher level ii of output. In light of the observation, it was recommended that, further fertilizer distribution be effected through Grass Root Economic Groups such as Saving and Credit Societies. Fertilizer distribution through such group could enhance better service delivery to target farmers.