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updated: 7 March, 2007
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Market spies in Tanzania

Stanle, a “Mkulima Shushushu” – Kiswahili for “market spy"To the market vendors who sell him vegetables and rice, Stanley Mchome is just another customer, albeit one who asks a great many questions. But in reality, Stanley’s inquisitiveness is far more than friendly banter. When he’s not tending to his rice fields in Northern Tanzania, Stanley is a “Mkulima Shushushu” – Kiswahili for “market spy.”

Stanley is from Magugu, a small town on the Arusha to Babati highway best known for growing a distinctive aromatic rice. Although the fragrant rice is immensely popular, until recently Magugu farmers like Stanley had no other option but to sell their harvests to middle men for low prices. Then an innovative, IFAD-supported project known as the First Mile began helping them, and other farmer groups in similar situations across the country, take steps to improve their marketing and their incomes. Activities included building market chains from producer to consumer and using modern communication technology to share information and experiences.

For example, each week Stanley travels to local markets to gather information on up-to-date prices. He uses mobile phone technology to send text messages back to his group in Magugu, which in turn uses the information to negotiate better prices with local traders. Mobile phones are spreading rapidly across Tanzania.  At the same time, through the Tanzanian Government’s Agricultural Marketing Systems Development Programme (AMSDP), Stanley’s group has also received training in crop improvement, business planning, marketing and consumer awareness. They recently formed a savings and credit cooperative which is linked with the new local warehouse to create a warehouse receipt system. This enables them to store their harvest and sell it at the right time, when prices improve. If an emergency arise while they are waiting to sell, they can borrow cash from the credit cooperative. No longer dependent upon middlemen, the Magugu group’s profits have increased substantially and they are keenly awaiting the next harvest.

“An interesting insight that we’re having is that once producers understand the market chains they’re in, who the key players are and they meet them and talk to them, all sorts of ideas come up,” says Clive Lightfoot, the project co-ordinator.

 Recently, Stanley discovered that a supermarket in Dar-es-Salam was packaging Magugu rice and selling it at a premium. Now he and his group are looking at ways they might patent their unique rice and benefit more fairly.

Watch this short video to be featured on CNN World Report.

Source: IFAD