The
mentioned functions are accomplished by conducting
market surveys and participation in commissioned studies.
In general, the activities of this unit involve data
collection, analysis and dissemination of research
findings.
3.1.2
Marketing Intelligence Unit
This
is unit is involved in gathering of time series data
from various markets by interviewing market participants
e.g. wholesalers and retailers. Regional and district
market monitors report what is happening in their
markets to the central data processing unit in the
Ministry. Other sources of its information are publications
i.e. books, newspapers, trade periodicals; large-scale
storage and processing facilities. Types of data collected
include commodity prices, volumes of trade, marketing
costs, commodity quality etc. In general activities
of this unit involves gathering of time series, data
analysis, projection and forecast, storage and dissemination
of information to stakeholders.
3.1.3
Promotion Unit
Broadly,
the functions of this unit include advertisement,
promotion and publicity. To perform these functions
the unit organizes trade fairs, exhibitions and provide
support in building the capacity of private sector
in promoting their products in domestic and international
markets. Since individual companies market their own
product, this unit is involved in coordinating and
facilitating such activities. Also the unit is involved
in generic promotion i.e. promotion of a commodity
as an industry as opposed to brand promotion performed
by individual companies.
3.1.4
Regulation Unit
This
unit is involved in regulating crop/commodity marketing
boards and traders by setting standards and grades
of products (inputs and produce), formulating rules
and regulations of operations, coordinating and monitoring,
setting standard measures and weights.
3.2 Other Agencies Involved in MIS
Besides
MDB there are other agencies involved in providing
agricultural MIS. These are;
3.2.1
Food Security Unit (FSU): FSU was established in 1989 under the Ministry of Agriculture and
Cooperatives. FSU has two sections, namely, Crop Monitoring
and Early Warning System (CM&EW) and Strategic
Grain Reserve (SGR). CM&EW is charged with the
task of assessing (present and future) crop production
and food supply in the country so that the government
can take timely remedial measures on impending food
deficit or surplus. This department has a countrywide
system of assessing food production and supply through
rapid field surveys, agro-meteorological data, crop
procurements and stock data.
3.2.2
Kariakoo Market Cooperaion (KMC): KMC was established in 1981 as state company and is the largest
produce market in Dar es Salaam. KMC is under the
Ministry of Local Governments. KMC collects and keep
records of price and volumes of crops delivered into
the market.
3.2.3
Bank of Tanzania (BOT): BOT publishes quarterly and annual reports on agricultural production,
export and import of commodities
3.2.4
Customs Department: This is department is under
the Ministry of Finance and provides information on
export and import of commodities including food and
cash crops. Some of the information collected by this
department are published by the Board of External
Trade.
3.2.5
Private Sector
Since
the adoption of liberalized market policies there
has been an increasing participation of private firms
and organizations in providing MIS. Some of identified
MIS providers are Business Care, and Tanzania Chamber
of Commerce, Industry and Agriculture (TCCIA). Business
Care publishes market information in its weekly the
Business Times. In addition to reporting secondary
information from other agencies, Business Care has
its own network for gathering market information.
The Financial Times also sponsors and publishes
market information gathered from various agencies
discussed earlier.
4.
Factors Contributing the Changing Role of MIS
4.1
Policy changes
Abandonment
of central planned socialist policies and adoption
of market-oriented policies have prompted MIS to change
its mode of operation from reporting of official (fixed)
prices set by the state agencies to monitoring and
reporting of market prices as they are determined
by demand and supply.
4.2
Government MIS Organization Structure
During
its inception MDB was under the Ministry of Agriculture.
However, there have been frequent changes in the organization
structure of the Ministry of Agriculture including
split or merger of its departments, and transfer of
its staff or functions to other Ministries such as
Ministry of Regional Administration and Local Government,
Ministry of Cooperatives and Markets, and Ministry
of Water and Livestock Development. Such changes have
affected the performance of MIS department in the
Ministry especially in maintenance of database, coordination
of market monitors in the regions and districts on
one hand and data processing unit in the Ministry.
Discontinuity of data series is one consequence for
such frequent changes in the organization structure
of the Ministries concerned.
4.3
Emergence of Private Agencies Offering MIS
Participation
of private sector in agricultural commodity trade
and as providers of MIS has changed the environment
at which government MIS operates. Private agencies
are complementing government’s effort in providing
MIS. Information collected by private agencies has
a potential of serving as a verification mechanism
for information collected by government agencies.
However, there is a need to coordinate activities
of various MIS providers to ensure consistence and
avoid confusion to information users. Institutional
networking in MIS providers is vital to ensure a more
broader geographical and commodity coverage while
avoiding duplication of efforts.
4.4
Commodities Changes
During
its inception MDB coverage was limited to few fruits
and vegetables. Currently there are 27 food crops
covered by the government MIS. Export crops such as
coffee, tea, cotton, etc., have a more developed MIS
than food crops. Since most of exports are of high
value crops there is more involvement of private traders
and crop cooperatives in providing various services
including market information. MIS in export crops
is more commodity-specialized.
However,
since liberalization of markets some non-traditional
exports such as food crops (e.g. rice) some fruits,
vegetables and spices are gradually penetrating international
markets. Also domestically, more commodities are finding
their way into the market and there have been changes
in commodities in the market in terms of volume, type
and form. For instance some commodities that traditionally
were grown for subsistence in the past have become
more popular and are now produced commercially. Also
more commodities are now being processed and packed
before are sold to consumers as a way of adding value
to them. Rapid emergence of maize and rice millers
has been witnessed in recent years. This has led to
decrease in commodity volume in some markets as part
of the supply is re-channelled into millers instead
of being delivered directly into the open market.
Such trend has been reported in Tandale market, which
is the largest wholesale grain market in Dar es Salaam.
Packaging of milled products is also increasing leading
to multiplicity of product brands in the market.
These
changes have made it necessary for the MIS to change
its mode of operation and revise its commodity basket.
4.5
Mass media for Dissemination of Market Information
When
MDB started all the media ware under state monopoly.
Currently there are many private media such as radio,
TV and newspaper. Some of the media are nationwide
while others are local. MIS has to deliver information
in media that will reach the target group. Competition
in media has an implication in the cost of dissemination
market information.
4.6
Changes in Market Structure and Location
Currently
government MIS covers 44 markets representing all
major agro-ecological zones. Market information is
collected mainly from producers (in rural markets),
wholesalers and retailers. Since liberalization of
markets there have been spatial changes in some commodity
markets, possibly due to development of infrastructure
(roads, railways and electricity), and increase in
processing and large scale-storage. Processors and
storage agencies are new intermediaries in the market
structure. For example in the past Gairo was an important
rural assembly market for maize and other staples
along Dodoma-Dar es Salaam market channel. However,
since electrification of the neighbouring Kibaigwa
town, this market has shifted to the latter town.
5.
Summary of Findings, Conclusions and Recommendations
From
this review it is obvious that the government has
done much effort to streamline the MIS in order to
accommodate the recent policy changes. However, the
below discussed observations suggest that the current
government supported MIS still lags behind the rapid
changing agricultural commodity markets hence recommendations
are made on how to make MIS more efficient and timely
in performing its functions.
5.1
Sampling (markets and commodity coverage)
Currently
government MIS covers 27 commodities in 44 markets
all over the country. Such sampling was designed to
get a good representation of markets and commodities,
and possibly to give statistical validity to market
information collected. However, managing such a large
sample of markets and commodities to ensure continuity
of time series has proven difficult. There are many
gaps in the price series available in the Ministry
database. It would be advisable to reduce the sample
size by selecting ‘strategic markets’ and most important
commodities while maintaining good representation
of agro-ecological zones, assembly and consumers markets.
Reducing the sample size will ensure a closer monitoring
of data collectors while increasing their motivation
through salaries, capacity strengthening (training)
and provision of working facilities e.g. motorcycle
and mobile phones. With the current tight budget of
the Ministries, a manageable sample is necessary to
ensure sustainability of financial support.
5.2
Type of Information Collected
Though
it is documented that volumes of commodities delivered
to the market is collected, such information is scantly
available in the database. Not much analysis can be
done to price data without volumes. Monitoring of
volume is quite complicated due to lack of transparency
by private traders (in attempt to evade tax) and emergence
of new market intermediaries (processors and storage
agencies). There is a need to strengthen data collection
mechanism possibly by increasing public awareness
of the importance of MIS through media and legal enforcement
through local government by-laws. Increasing public
awareness is an appropriate task for the newly formed
promotion and monitoring section of MIS.
5.3
Data transmission to processing centre
Currently
information from district and regional monitors is
transmitted through radio-call network and postal
mails. Due to increasing accessibility to internet,
email and mobile phone network in regional and district
towns, use of such technology where available could
make reporting of information more timely and less
costly. For example Vodacom Text Message cost US $
0.06 per message regardless of the length. Sending
an email in an internet café could cost TSh,. 300
–500 per 15 to 30 minutes.
5.4
Data processing
The
current database needs to be updated and a more user-friendly
software installed. FOODNET has already started to
support MIS department by providing computers to facilitate
installation of new software. However, the department
needs continued support in capacity strengthening
in terms of IT and analytical skills.
5.5
Information Dissemination
Most
of market information is currently published in English
newspapers. However, profile of traders in many market
surveys indicate that majority of traders are primary
school graduate. There is a need to have more market
information publication on Swahili media. MIS stakeholders
survey will reveal more information on popular mass
media and programs.
5.6
Institutional networking
To
avoid duplication of information reported by various
MIS providers there is a need to establish a network
of agencies providing the service. Such networking
will also allow more geographical (markets) and commodity
coverage while minimizing costs of MIS. Inconsistence
in information reported will also be avoided.
5.7
Units of Measurements in Reported Prices and Volumes
Standardized
measuring facilities are lacking in most markets and
commodities. For example bags of maize and rice differ
from market to market and seasons. When prices are
converted into standardized weights such as Shilling
per kilogram more precision is lost. The Regulation
Section of government MIS need to undertake a study
on how to cope with this and possibly regulate markets
through legal enforcement. Use of standardized scales
is gaining popularity in retail urban markets for
some commodities. However, adoption of such practice
needs more incentive and legal enforcement.
5.8
Promote Participation of Private Sector in MIS
There
is an increasing participation of private sector in
providing MIS. There is a need to promote more participation
of private sector in providing MIS through public
awareness campaign and contracting some of MIS task
to private sector. However,
due
to high cost of providing MIS especially in geographically
scattered market, the government should continue to
provide this service and gradually withdraw where
the private sector is taking over.
5.9
Changes in the Organization Structure of the Ministries
Frequent
changes in the organization structure of the Ministry
is affecting negatively the performance of MIS especially
in maintenance of database, coordination of reporting
system for markets in the districts and regions to
the central processing unit. Discontinuity of many
time series and loss of records is the evidence of
the negative impact of frequent changes in the Ministries.
To minimize such negative changes at least at the
Ministry level, MIS department need to be moved as
unit instead of splitting or merging it with other
departments.
References:
Mdadila,
J.M. (1996). A proposal to set up a comprehensive
market information system for the agricultural sector.
Marketing Development Bureau of the Ministry of Agriculture,
Livestock and Cooperatives. Dar es Salaam, February
1996.
MDB
(1992). Wholesale trade in grains and beans. Marketing
Development Bureau of the Ministry of Agriculture
and Livestock Development. Dar es Salaam, January
1992.
List
of Current and Past MIS Officials Interviewed
| 1. |
Mr
Banda, E.T.- Former Assistant Commissioner, Marketing
Development Bureau, Ministry of Agriculture |
| 2. |
Mr
Mdadila, J.M, Director, Market Information Service,
Ministry of Markets and Cooperatives |
| 3. |
Mr
Ulaya, B. Market Information Service, Ministry
of Agriculture |
| 4. |
Mr
Massawe, B.D. Project Manager, Tanzania Livestock
Development Project, Ministry of Water and Livestock
Development |
| 5 |
Mrs
Mlote,S . Coordinator of MIS, Tanzania Livestock
Development Project, Ministry of Water and Livestock
Development |
