An investigation into the demand chain of beans and cowpeas in Mozambique

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Date
2006-12
Authors
Ziote, Julieta Milicinho Eliseu
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Publisher
University of the Free State
Abstract
In Mozambique marketing systems for beans and cowpeas are limited and poorly organized. This is notwithstanding the fact that beans and cowpeas are cultivated by the majority of smallholders in Mozambique. Improving the marketing of these products should promote production and trade in the country, which in turn could contribute to poverty alleviation and improving the livelihoods of the poor in rural areas. On the demand side very little is known about consumer preferences for beans and cowpeas and how they respond to changes in economic factors (i.e. price and supply). Knowledge on consumers’ preferences for specific grain characteristics of beans and cowpeas should create market opportunities on local and regional markets. Findings of several studies on beans and cowpeas in Africa indicate that systematic and adequate information about consumers’ preferences for quality characteristics of beans and cowpeas is important, not only for trade, but also for improving bean and cowpea production and marketing systems. The primary objective of this study was to investigate the impact of different bean and cowpea characteristics on the probability of consumers to purchase these products. Hence the focus of the study is primarily on the demand chain for beans and cowpeas. A logit model was used to estimate the probability that consumers will prefer a specific attribute of beans and cowpeas. In addition, price and volume variables are also considered. Questionnaires were designed to interview traders and consumers in Mozambique to gain information about their perceptions relating to market opportunities for beans and cowpeas, consumer preferences regarding the purchase of beans and cowpeas and how these preferences translate into purchase decisions, and how information flows among bean and cowpea supply chain members. Interviews were conducted with transporters, formal wholesalers, informal wholesalers, formal retailers, informal retailers, roadside traders and consumers. The sample was stratified into 2 markets each in Maputo and Nampula. The markets are Bazuca and Xipamanine in Maputo, and Faina and Muhala in Nampula. Bazuca and Faina are wholesale markets, while Xipamanine and Muhala are retail markets. In total, 131 bean and cowpea traders and 169 consumers were randomly selected. In the Maputo market 4 transporters, 23 wholesalers, 36 retailers and 91 consumers were interviewed. In Nampula 2 transporters, 28 wholesalers, 38 retailers and 78 consumers were interviewed. The results show that aggregate characteristics (colour and culinary characteristics of beans and cowpeas) are positively and significantly related to the probability of consumers’ decisions to purchase beans and cowpeas. From this it can be postulated that the better informed consumers are about the quality characteristics of beans and cowpeas the higher is the probability that they will purchase these commodities. Improved access to market information about the characteristics of beans and cowpeas will increase the probability of consumers to purchase beans and cowpeas from 0.546 to 0.703 for beans and from 0.380 to 0.622 for cowpeas. Price has a negative and significant relationship with the probability of consumers to purchase beans and cowpeas. That is, an increase of one unit in the price will result in a decrease in the probability of consumers to purchase the selected commodities by 0.00024 for beans and 0.00004 for cowpeas
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Keywords
Business logistics, Supply and demand -- Mozambique, Cowpea -- Mozambique, Beans -- Mozambique, Consumer behavior, Consumers' preferences, Dissertation (M.Agric. (Agricultural Management))--University of the Free State, 2006
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