Tree products market chains and trade arrangements for tree products produced from farms in East and acentral Africa: comparative case studies from Kenya, Uganda and Tanzania.

Abstract

Tree products market chain and trade arrangements project was conceptualized as a regional project to cover five countries Kenya, Ethiopia, Rwanda, Uganda and Tanzania. However, due to logistical and financial reasons four countries Kenya, Ethiopia, Uganda and Tanzania were selected to participate in the in 2005/2006. The study sites were western region in Kenya, Kampala-Jinja Lake Victoria shores in Uganda, Addis Ababa region in Ethiopia and Arusha and Kilimanjaro regions of Tanzania. The study sites are highly populated intensive agricultural zones with significant tree planting activities. The study was aimed at generating tree product market information useful for enhancing the contribution of agroforestry activities towards poverty alleviation within the agricultural landscapes. The activities involved were market chain surveys for tradable tree products, evaluation of key stakeholders in the production to consumption market chain, prioritization of tradable products, key market segments for.tree product and potential partnerships in tree product trade and development. The study also evaluated opportunities and constraints of the existing policies and regulation that govern tree product trade. A simple structured questionnaire was mostly used in the survey. Others sources of data were focused discussions, direct observations, and review of secondary data. Package for Social Science (SPSS) and Microsoft Excel computer programmes were used in quantitative data analysis. Results revealed indicated that up to 27 tree products from farms were traded in the region mostly sawn wood, charcoal, firewood, handicrafts and saw logs. Non wood tree products traded were limited and of small quantities. These products were largely produced in rural areas mostly from private farms and to smaller extend government plantations was reported in Tanzania. Tree products from farms were harvested and processed before transporting them to major urban stock yards by merchants using various modes of transport ranging from bicycle, pickups, tractors, and lorries depending on quantity and distances to be moved. The study showed that there are vast market opportunities tree products from farms in the study countries that largely depended on the ability of the public forests to supply tree products to the competing markets. The studies reveal that trade in tree products from farms is multimillion dollar sector in the region with potential to grow given the dwindling abilities of public forests to meet the growing demand from the various market niches. The financial benefits from the tree product trade were shared by various stakeholders participating in the market value chain mostly farmers, traders, transporters, local authorities and other institutions. The market reforms carried out by the three countries have created opportunities to develop efficient private and competitive markets for trade products. However the efficiency of most markets has remained low due to deficient institutions and infrastructure, and partial policy reforms that created some policy barriers to development of competitive markets and marketing systems. Most sectoral policies tend to concentrate on controls and less emphasis on use of market instruments to foster market driven conservations efforts through commercialization of tree growing and trade in tree products. The study revealed that there is need for building reliable and regular quantitative and qualitative information data base at the lowest cost possible. However, there is inadequate or fragmented information on the existing tree product market niches to enable smallholder tree growers to invest and supply products to the multi-billion sector business. Generally, market arrangement for the tradable tree products is lacking or at infancy stages in the study sites. The study concluded that tree products trade is one of the most important economic activities providing employment and income to many inhabitants both in rural and urban areas. The high number of tradable products is a clear indication of the potential of tree products to the livelihood improvement. There is high dependency on government forest plantations and natural forests to obtain forest products traded in the study areas. Nevertheless, these sources are dwindling creating potential market for tree products from farms and private plantations. On the other hand, there is an increasing trend of tree products exportation especially rough sawn timber and transmission poles to Kenya. Therefore, the trade between Kenya and Tanzania is a classic example of how tree products from surplus can flow into deficit countries for the benefits of producers and consumers in the region. The fears expressed by Tanzanian traders on the threats from exports to Kenya on their domestic business are short term hitches that will be addressed by the market forces in the medium and longer term time frame.