The Effectiveness of Warehouse Receipt System on Improving Smallholder Cashewnut Income in Tanzania:Case study of Tandahimba District

Sizya, Titus (2013) The Effectiveness of Warehouse Receipt System on Improving Smallholder Cashewnut Income in Tanzania:Case study of Tandahimba District. Masters thesis, The Open University of Tanzania.

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Abstract

Tanzania introduced the Warehouse receipt system in coffee and cotton and later on in cashew in 2007 after the introduction of Warehouse Receipt Act number 10 of 2005 and its regulation of 2006. The introduction of Warehouse receipt system is part of the implementation of National Strategy for Growth and Reduction of Poverty (NSGRP), focuses on improving the livelihood of the people living in cashew producing Districts, For instance, over 95 percent of people in Tandahimba District depend on cashewnuts for their living. Despite of the fact that the Warehouse receipt system its aim is to assist smallholder cashewnut farmers to improve their income, but the study shows that the relationship between Warehouse receipt system and Income of smallholder cashewnut farmers is weak, this questions the effectiveness of the Warehouse receipt system which is the main objective of this study. The study used descriptive survey combining both qualitative and quantitative methods employed documentary review, semi-structured questionnaires, key informants interviews and focus group discussion in the area of study that is wards of Mahuta, Nahnyanga and Kitama. The study revealed that despite of the fact that the introduction of Warehouse Receipt system in cashewnut increased the price of cashew per kilogram from the average of Tshs 800/= to 1200/= for cashewnut seasons 2010/2011 and 2011/2012 but the income of smallholder farmers remained domant which is the parameter measure of inefficiency and ineffectiveness of the warehouse receipt system in Tandahimba District. The study suggested that effectiveness of warehouse receipt system can be improved by putting in place rules and regulations which will minimize the cost of running the warehouse receipt system in favor of improving the income of smallholder farmers.

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