Steps, activities and actors related

The basic VC presented in this study consists of the following steps: input, production, trade, marketing and consumption, with transport as a cross-sectional issue involved in several steps.

Regarding input, large supply companies for seeds, fertiliser, and pesticides play the role of VC supporters. They sell these inputs but also provide information concerning their use. Yet there is a host of problems related to the accuracy of information provided to the farmers. Input suppliers promote intensive chemical application. But farmers and extensionists throughout the research areas reported increased awareness among the farmers regarding overuse of chemicals in terms of yield uncertainty and health issues.

Public and private extension services are VC supporters at input level as well.

However, extension service to horticultural farmers is deficient. The main reason interview partners gave for this is a lack of personnel at the Ministries of Agriculture in both countries. Most farmers stated that for years they had relied on neighbours, friends and relatives for information. Credit institutes also belong to the VC supporters of this step. But their impact is very low, as farmers refrain from taking loans because they fear crop failure and not being able to repay their credits. Another

reason that emerged from the qualitative interviews is that the farmers have too little information about loan conditions.

At production level farmers, workers and farmer groups play an important role as operators. In the present study only those farmers were considered who grow either tomatoes or onions as a main cash crop. An assumption of this study is that since the cultivation of these crops requires a certain resource endowment and the ability to cover the necessary input expenses, the farmers interviewed do not belong to the poorest households in the research regions. Nevertheless, most of the farmers are small to middle-scale producers, i.e. they manage their plot within their family or with the help of casual workers. The latter normally also belong to farm households but poorer ones.

Different types of traders work in the trade segment. A broker, as a VC supporter, does not own the product at any point in the chain. His role is to connect buyers and sellers and in some cases to negotiate prices either in the name of the buyer or the seller. He is paid a commission by either party (Fintrac HDC 2004, GTZ 2007). It is possible to distinguish between brokers at farm level bringing together producers and traders and brokers at the markets who e.g. link an intermediary with a wholesaler. In contrast to brokers, intermediaries take ownership of the product at the time they receive it. They neither produce the products nor sell them to the consumer (own data collection, GTZ 2007). An intermediary buys directly from farmers, brokers or from other intermediaries at local and regional open markets. He sells to other intermediaries, large suppliers, institutional consumers, and entrepreneurs or persons at the retail level. Often an intermediary is also responsible for the grading.

In this study a wholesaler is defined as an intermediary operating only at the wholesale market. He buys from intermediaries and often enlists the assistance of a market broker.

At retail or marketing level the operators are to be differentiated according to their location and/or the volume they trade. There are sellers on open markets, roadside sellers with small wooden kiosks and hawkers. The latter sell at the roadside without a booth, walking around and approaching potential customers. While the first two operate in the formal sector the hawkers work in the informal one. In addition, supermarkets are part of the formal retail sector but they do not play an important role for the supply of FFV. The smaller ones do not even offer FFV but there are kiosks located next to them. Most of the vendors on the retail markets specialise in some products and only change their range in the off-seasons. The range they offer and the amount they sell also depend on the kind of stall they own. Kiosk retailers normally only sell FFV and try to have a large selection of products to meet their customers’ needs. As hawkers depend on their mobility in general they have only few

commodities to offer. Big supermarkets in contrast often supply – besides the local or seasonal FFV – also “exotic” ones like apples or strawberries.

Wholesalers at Nairobi Wakulima Market, Kenya

(Source: SLE-Team)

Hawkers at the entrance to the

Kilombero Wholesale Market, Tanzania (Source: SLE-Team)

On the consumption side individual and large consumers such as hotels, restaurants, hospitals and schools are considered. Most consumers buy FFV at retail but also at wholesale markets, at kiosks or hawkers. Almost no consumers purchase FFV in supermarkets. Decisive criteria when choosing the seller are cheap prices, quality of products, proximity to the vendor, and trust. The consumers are not aware of the different varieties. Consumers characterise high quality in terms of medium size, good colour, faultless skin, shape, taste, and they look for storable goods. Only few consider organic production or pesticide residues. For most consumers interviewed quality is more important than price, but during low supply when prices are higher some customers purchase less.

Transport is a cross-sectional issue in the VCs affecting all actors. The most important actors for transport are entrepreneurs who own trucks and lorry drivers as well as porters. They all belong to the VC supporters. The first group is mainly responsible for transport from the production areas to the markets. Farmers or intermediaries hire the means of transportation plus drivers and often accompany them. Lorry drivers are often employed seasonally.

The porter group comprises firstly handcart drivers (called Mkokoteni in Kiswahili) who are engaged in transporting the commodities from the wholesale to the retail markets or kiosks. They normally own the carts themselves or have to rent them. The second group are the carriers who load, unload, and carry the goods in the production areas and at the markets. In some cases they also perform the grading

and repacking at the market. Porters normally are not employed. They are neither specialised in a certain product nor work on contract relations. They get paid for each tour they do, with the prices depending on the type and amount of commodity they transport. Given that they do not possess a legal work permit they are sometimes double-crossed by customers who fail to pay their wages. They also harassed by officials or the police. Farmers are only involved in transport from the field to the farm (if necessary) and in some cases they arrange transport from the farm to the markets, especially to the local markets.

Carrier of onion bags at Kilombero Wholesale Market, Tanzania (Source: SLE-Team)

An overview of the most relevant routes and means of transport can be found in annex I.

The figure below illustrates the different activities in a fresh vegetable value chain and the actors involved.

Transport

Input Production Transport Trade Marketing Consumption

Supply of

Input Production Transport Trade Marketing Consumption

Supply of

Fig. 3: Steps, Activities and Actors of all four Value Chains (Source: Own Outline)