Potato Market Structure, Conduct and Performance in Tete Province of Mozambique

Paulino Bartolomeu Sandramo and Abdi-Khalil Edriss

Asian Journal of Agricultural Extension, Economics & Sociology, 2023, vol. 41, issue 9, 10

Abstract: Since over 85 percent (%) of potato production in Mozambique comes from Tete province, it was necessary to develop the present study in order to assess the current structure, conduct and performance of potato market in this region so as to improve the discussions of the potato industry in the country. Based on this objective, the study targeted four districts of Tete province, namely Angonia, Tsangano, Moatize and Tete town. Data were collected through a survey in February 2021, using multistage random sampling techniques to 152 potato traders in 10 markets of these districts. The structure, conduct and performance theory was used. Gini coefficient indices were used to analyze the structure of potato markets, frequency and percentage were used to analyze the conduct of potato markets and marketing margins were the tools applied to analyze the performance of potato markets. The result indicated that in overall sampled potato markets, the Gini Coefficient Index was 0.25 out of 1.0 indicating that potato markets were competitive. In addition, 78.9% of potato traders reported that selling price depended on the forces of demand and supply. Despite of this, traders were getting 57.9% of consumer’s price and 42.1% was the producer participation. Among the selected potato markets, Lizulu and 1o de Maio respectively were found to be most efficient with indices of 669.2% and 1,718.8%. A 100% of potato traders were unanimous on pointing a lack of cold storage facilities as a major constraint to potato marketing which influence price to be unstable. In the study area, the size of the market-share and the distribution of income is almost the same between different categories of traders and the business is profitable. Policy recommendations of strengthening the rehabilitation of rural roads and establishment of cooling centres among others can promote potato marketing in Mozambique.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2023
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