Agriculture Reference
In-Depth Information
On the other hand, the proximity of the markets to other towns was an
advantage for Murehwa fruit traders because they were aware of prices at
nearby markets. The unequal distribution of information between market
participants seemed to be a widespread problem, causing severe market
exchange inefficiencies.
Prices of U. kirkiana and S. cocculoides fruits varied according to the
regional locations of the markets. In urban areas, for example, fruit prices were
higher than in semi-urban areas/growth points and rural markets. In the case of
U. kirkiana fruits, producer and retailer prices were lower at the Murehwa
growth point markets than at the Mbare urban market. Higher prices at Mbare
and Gokwe town markets created an incentive for producers and retailers in
Murehwa and Gokwe rural areas to transport their fruits and sell them at these
markets. Price differences at a given point in time were at least partly caused
by differences in the marketing costs incurred by the different traders at the
markets.
The lack of marketing transparency created leeway for price manipulation
by the better-informed actors (mostly the sellers) at all stages of marketing. The
absence of standard quantity/volume units of measurement has caused
additional problems. First, the unit of quantity/volume traded changed with the
market level. At the production level the common quantity unit was a 20 l
bucket. In contrast, wholesalers measured U. kirkiana fruits in units of 5, 10
and 20 l tins, equivalent to 3, 6 and 11 kg, respectively. Finally, retailers packed
the fruits in plastic bags, plates, bowls or cups weighing on average 150-500 g,
and sometimes they sold the fruits in small tins measuring 1.5, 2.5 or 5 l. In
Gokwe, retailers sold individual fruits of U. kirkiana . Since S. cocculoides fruits
are large, they were sold individually at all market levels.
Second, the quantity sold at the wholesale level in a 20 l tin varied
according to the supply situation. Wholesalers pressed the tin bases inwards or
filled the tin with grass material/papers in order to hold fewer fruits. In any case,
prices were affected by the use of different units of quantity at different sites
and different market stages, as well as changes in quantities of fruits available
as the supply situation changed. Hence, the commonly used procedure of price
comparison was impeded and the evaluation of relative prices was very
difficult. Price comparison was impeded not only for fruits between different
sites, but between different market stages and different suppliers at the same
market stage. Moreover, comparison of prices between different indigenous
fruits and between indigenous fruits and exotic fruits (the main substitutes
for indigenous fruits) traded in the same markets, but sold in standardized
quantities, made business difficult.
12.2.4 Marketing costs
Marketing costs were incurred in the process of transferring the fruits from the
producer to the consumer. The costs differed depending on the market location
(urban or rural) and level in the marketing chain (production/collection,
wholesaling or retailing).
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