Multiple factors cause price tripling over three years
Tanzania: Fruits now unaffordable luxury
Analysis of fruit prices has shown that, in previous years, it was usual for prices to be high initially, during the breeding season, but these dropped as harvests increased supply.
Traders in various markets are now reporting a change in this, however.
“There is something very wrong with fruit supply. I have noticed that supply has been decreasing to the city in the past few years even during harvesting seasons,” a fruit vendor at the Buguruni market, Kasimu Hamis said.
Prices have more than tripled over the past three years alone.
Watermelons that were sold at between Sh300 and Sh500 (respectively $0.18-$0.31 USD) are currently sold at between Sh700 to Sh3,000 (respectively $0.43 to $1.88 USD) depending on their sizes.
A pineapple that was sold at Sh300 to Sh1,000 is now sold at between Sh500 and Sh2, 500 depend on the size.
A mango that was being sold at between Sh200 and Sh500 in the past two or three years is now being sold at between Sh500 and Sh1,000.
Oranges are now sold at between Sh200 and Sh250 each, from an average of Sh100 and Sh50 two years ago.
Over recent years there has been an increase in the nation's processing capacity, which has led to a significant amount of the harvest heading for processing, thus upping demand for fresh fruits.
Some of the processing companies used to outsource their produce, but have recently switched to locally produced fruits more recently. This has removed much needed stocks of fruit from the marketplace.
There are other factors involved also. Increases of disease incidence and poor handling practices that result in wastage are a part of the problem as well. There are estimates that the country currently wastes between 40 and 60% of its fruits.
The rise in disease incidence and decreasing soil fertility mean that farmers have to use more pesticides and fertilizers, also upping the price of fruits.
Then there are the costs of transportation to consider, these have also been on the rise significantly, from an average of Sh50 and Sh70 per fruit two years ago to Sh100 to Sh150 from the farms to the city markets.
“If you transport a tonne of fruits- note that transporting a single tonne is not suitable for economies of scale- the transport costs are horrendous. You buy a fruit at Sh500 from a farmer and you will have to sell it at Sh1,500 just to break even,” the vendor says.
Coupled to the increase in processing removing lots of fruit from the market, there is also the rise of the middle class to consider. The expanding private sector in the country has led to an increase in foreign investment and an increase in wealth. The result is an increased demand for fruit that is not there.
Source: thecitizen.co.tz
