Consumer Preferences as Drivers of the Common Bean Trade in Tanzania: A Marketing Perspective

Abstract

Abstract The objective of this study is to determine the impact of bean grain quality characteristics on market price. The data were collected from retail markets in Tanzania. Hedonic pricing provides a statistical estimate of premiums and discounts. Implications for the development of bean markets include the following: (a) extension agents should identify cost-effective ways to educate producers on targeting urban market niches based on consumer preferences for varieties, (b) breeding for bruchid-resistant beans and use of appropriate storage technologies would alleviate the problems of storage damage, and (c) a portfolio of grain quality characteristics to fit consumer preferences in local markets should be required. KEYWORDS: beansconsumer preferenceshedonic modemarketsstorageTanzania Acknowledgments We acknowledge funding from the United States Agency for International Development (USAID) through the BEAN/COWPEA CRSP under the terms of Grant GDG-G-00-02-00012-00. Opinions expressed are those of the authors and do not necessarily reflect the views of USAID. Notes a Exchange rates used were the average exchange rate (in US$) between January 2003 and June 2007. Source: Tanzania country study Sokoine University of Agriculture (SUA) Bean/Cowpea Collaborative Research Support Program (CRSP) project March 2003–June 2007. Note. The numbers in parentheses are minimum and maximum values, respectively. Source: Tanzania country study Sokoine University of Agriculture (SUA) Bean/Cowpea Collaborative Research Support Program (CRSP) project March 2003–June 2007. Source: Sokoine University of Agriculture (SUA) Bean/Cowpea survey in Tanzania 2006–2007. Note. Data for Dar es Salaam markets were collected only for 2 years (2006–2007). NA = Not available in this market. * = 10%. ** = 5%. *** = 1%. Source: Tanzania country study Sokoine University of Agriculture (SUA) Bean/Cowpea Collaborative Research Support Program (CRSP) project March 2003–June 2007. Note. The Box-Cox implemented was "both sides Box-Cox model with the same parameter." The test statistic is based on the restricted log likelihood model. P values reported are for likelihood ratio (LR) statistics. Statistical Significance of the model λ coefficient (** = 5%. *** = 1%). Data for Dar es Salaam markets were collected only for 2 years (2006–2007). Percentage values were calculated as (βi/Av. Price in Market i) × 100. NA = Not available in this market. * = 10%. ** = 5%. *** = 1%. Source: Tanzania country study Sokoine University of Agriculture (SUA) Bean/Cowpea Collaborative Research Support Program (CRSP) project March 2003–June 2007. Information retrieved from the International Financial Statistics (IFS) database in 2008. Additional informationNotes on contributorsFulgence Joseph Mishili F. J. Mishili is lecturer of Agricultural Economics and Agribusiness at Sokoine University of Agriculture, Tanzania. Anna Temu Anna Temu is lecturer of Agricultural Economics and Agribusiness at Sokoine University of Agriculture, Tanzania. Joan Fulton Joan Fulton is Professor of Agricultural Economics at Purdue University, West Lafayette, Indiana, USA. J. Lowenberg-DeBoer J. Lowenberg-DeBoer is Professor of Agricultural Economics at Purdue University, West Lafayette, Indiana, USA.