Investor Presentaiton
IIFET 2012 Tanzania Proceedings
Analysis of Measure of Market Structure
Artisanal fish marketers have some basic functions which include buying, selling, financing, risk
bearing and merchandising. The results showed that there were no product differentiation. Also,
the prices of fish were determined through bargaining powers of the parties involved (buyers and
sellers) since there is non-uniformity of the prices of fish in the study area. As shown in Table
VIII, the two largest marketers in the artisanal fish marketing business accounted for 25% of the
volume of fish sold in the study area. The largest four marketers for 39% of the volume of
marketed fish, while the largest eight marketers accounted for 49%. This indicates that the
concentration in the industry can be said to be too low. The value of the Herfindahl index
estimated was 0.05 which implies some degree of concentration in the industry. The estimated
value of the Gini-coefficient determined was 0.64 which means that there was inequality in the
share of the market. The value of the Gini-coefficient would have been zero if the there was
equality in the share of the market.
Table VIII: Summary of Concentration Indexes
Index
Symbol
Formula Used Value obtained
Σ (5)
Concentration CR
CR2=25%
Σ (5)
Ratio
CR4=39%
CR8 = 49%
Herfindahl
H.I
Ž (S.)²
0.05
i=1
Index
A
Gini
G.C
G
0.64
(A+B)
Coefficient
Operational Efficiency of Artisanal Fish Marketers in the Study Area.
The mean operational efficiency of the Artisanal Fish Marketers was 15.5% which implies that
there was no significant difference in operational efficiency of the respondents.
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