An appropriate conceptual supply chain management model in the Tanzanian agricultural sector : a case study of coffee in the Kagera Region

摘要

Tanzania’s good climatic condition of four agro-ecological zones and six farming system together withadequate good soils and water resources with reasonable rainfall patterns (except in semi-arid regions) arefavourable for agricultural production. Despite this abundance of resources, Tanzania is still far from taping fullpotentials in crop production and productivity that could be attained if the existing agricultural resources werefully utilised. The agricultural sector has failed toraise the rural poor above the poverty line and hasperpetuated the existing pervasive poverty among farming communities. These constraints facing theagricultural sector have contributed to low production and productivity of the agricultural sector. For severaldecades the agricultural sector has failed to fulfil its role as the “engine of economic growth”; as a result, thegeneral picture of the Tanzania’s economy has remained untransformed and unreliable. Given the importanceof agriculture as the mainstay of rural livelihoods, it must grow much faster to realise rural poverty reduction inTanzania.In view of the above state of affairs, this study posed the following research questions: Are support activitiesand services in coffee production, processing and marketing significantly linked to allow application of SupplyChain Management (SCM)?; Do institutions responsible for coffee provide mandatory services to enablefarmers undertake support activities and services in production, processing and marketing of this crop? Finally,are the coffee marketing support activities and services significantly integrated along the supply chain in orderto enhance its marketing? Thus, the above underlined challenges and questions imply thatstagnation inagricultural development is a function of a multiplicity of soci-economic, technological and political factors. As aresult, the call for improving the agricultural sector production and productivity needs a holistic approach,particularly the application of SCM. The above fact suggests that Tanzania should among others, find ways toincrease agricultural production, productivity, promote agro-processing and expand markets for its agriproductsthrough a well co-coordinated system. The present study calls for a collaborative and integrativeapproach in the supply chain to plan and control the flow of value adding materials from the producers to theconsumers. The objective of this study is to examine the application of the Conceptual Supply ChainManagement Model (SCMM) in coffee support activities and services in the areas of production, processingand marketing in order to suggest an appropriate model that can improve production and productivity of theagricultural sector thereby enhancing the income of the rural poor and ultimately alleviating poverty and raisingthe standard of living of Tanzanians.Following the format prescribed by the University of South Africa, this thesis is organized into eight chapters.Also, it is structured in a coherent manner to bring the logic for the development of the conceptual frameworkfor the coffee subsector in Kagera region. Chapter One provides the introduction and backgroundinformation. It creates a base and sets a framework for the entire study. Chapter Two presents theliterature review including both the theory and practice of SCM. It also presents the background and SCMdevelopment as well as the importance of integrating SCM in the agricultural sector in Kagera, Tanzania andthe world at large. The objective of the chapter is to present an in-depth review of literature and show the gapso as to make justification for proposing a study on the application of the SCM in agriculture with reference toCoffee in Kagera Region. Chapter Three discusses the Model Development. It discusses the meaning andthe type of conceptual models. Further more, it discusses the reasons for and the advantage of applying theconceptual models. Finally, it highlights the rationale for selecting a particular criterion for evaluating theconceptual models.Chapter Four presents research methodology including identification of the definition of research anddifferent research methods and their respective instruments for undertaking this study. It presents thetheoretical and research process, showing the types of research methods and research designs. It also presents in detail, sampling, sampling techniques and data collection techniques. Finally, the chapterhighlights how the collected data have been organised, analysed and presented. Chapter Five is aboutresearch findings. It covers the outcome of the exercise set by Chapter Four. It presents descriptive andempirical information of basic agricultural support activities along the supply chain from production throughconsumption. It involves the analysis of the production, processing and marketing support activities to examinetheir influence on the production and productivity of coffee in Kagera Region. Chapter Six entails synthesisanalysis and results. This is an amalgamation of the research findings as well as synthesis, descriptive andempirical analysis of those findings. Thus, the chapter is about the analysis of coffee production, processingand marketing support activities and services in Kagera Region.Chapter Seven describes the contribution to knowledge which shows the existing conceptual SCMM forcoffee in Kagera. The Chapter presents the appropriate conceptual model which adopts planning of manycomponents in the coffee supply chain such as suppliers, materials, resources, warehouses, transporters andcustomers. The Model has been developed and proposed for application in Kagera Region in order to addressthe shortcomings addressed in the analysis made in the existing model as indicated in Chapter Six. ChapterEight presents the summary, conclusions and recommendations. In this chapter, the study concludes thatcoffee marketing support activities and services in Kagera are not significantly linked to production andprocessing in order to allow the application of SCM principles. Furthermore, it shows that coffee managementinstitutions such as private coffee traders, cooperative unions, government regional and district agriculturaloffices and other stakeholders do not provide all mandatory services to enable coffee production, processingand marketing support activities and services. According to this study, marketing support services are notsignificantly integrated in the coffee supply chain that will enhance its marketing.Given this reality, this study proposes the adoption of the appropriate conceptual SCMM. The Coffee SCMMhas been developed to coordinate key players and processes in coffee SCM for the integrated framework. Theproposed model has been successfully implemented in many successful management systems. Theconceptual model for Kagera integrates various participants involved in the entire coffee supply chain includingcoffee producers, processors and exporters. The Tanzania Coffee Board (TCB) is proposed to be the overallcoordinator of the entire coffee supply chain. In addition, it proposes an information exchange procedureamong players (feedback) initiated by consumers. For further studies, the study recommends three majorblocks of studies such as support activities and services in the areas of SCM in coffee production, processingand marketing. Finally, the study proposes these three major areas to be individually and deeply studied.