The Implication of Prevailing Marketing System in Production and Export: The Case of Cloves Production in Zanzibar

Zanzibar is the third largest cloves producer in the world. Its share of world cloves in the 1960’s was significance higher after it achieved the record of the world largest cloves producer. However in the last ten years Zanzibar’s share in world cloves production declined. The cloves sector is dominated by a state board with effects on farmers’ in terms of production and investment. The study sought to examine the implication of the prevailing the marketing system in the cloves industry using qualitative primary and secondary data. The implication of the monopsony system on cloves sector were studied in this paper through a discussion of the constraints faced by farmers and the way that marketing boards respond to the constraints. The paper explores the history of cloves production in Zanzibar and the monopsony marketing system to expose implications of the state marketing board. The information in this thesis mentions the farmers’ obstacles the cloves sector which caused them to significantly reduce production and investment. Also the findings show that the prevailing of marketing system has significant impact on cloves production and export. Data revealed that constraints faced by farmers and the way the marketing board responds to the constraints affects farmers decision in cloves production was significantly leads in decline the production and export. Furthermore the monopsony system through state marketing boards remains important for protecting farmers’ incomes and well-being.