Tryphina Dube- Takaza

Women’s University in Africa, Zimbabwe

Title: Competitive Strategies in Zimbabwe's Brewing Industry: Managerial and Policy Implications.

Abstract

Zimbabwe’s brewing industry is characterized by monopolistic competition, jostling for market share and information asymmetry in the design of smallholder farmer’s contracts. This study examines the evolving structure of Zimbabwe’s brewing industry, contract design and performance and market failures. The objectives of this study are to 1 Determine the emerging competition for beer brewing industries in Zimbabwe 2. Identify marketing challenges faced by farmers and brewing companies in sorghum value chain. 3. Recommend government intervention in order to provide an enabling policy environment for contract farming in Zimbabwe. The study was conducted in 4 districts (Binga, Chiredzi, Hwange, Matobo) that are situated in Natural Regions IV and V. A mixed methods cross sectional study triangulated with multiple data sources was used. A survey questionnaire was used to collect data from 281 respondents who were randomly selected from four districts in regions IV and V. A multistage sampling approach with purposive selection of districts dominant in small grain production was conducted. For each district, two wards were selected randomly. Thematic analysis using Porter’s five forces was used to assess the competitive strength strategies of beer brewing contracting companies. Results showed that Delta Corporation Private Limited is the leading competitor among the brewing companies in Zimbabwe. There are few players in Zimbabwe’s beer industry with a large share of the market and rivalry limited to customer preferences. Farmers have been faced with resource limitation, poor road network whilst contracting companies have challenges in collecting poor quality grain as well as low volumes of grain from farmers. The study shows that to upgrade the sorghum values chain, there is need to lower entry barriers and promote competition among brewing firms. The policy recommendation should target behavior of monopolistic firms and seemingly unfair treatment and exclusionary tactics against smallholder sorghum farmers.

Biography

TBA

4th International Conference on Nutrition and Healthcare

Tryphina Dube- Takaza

Title: Competitive Strategies in Zimbabwe's Brewing Industry: Managerial and Policy Implications.

Abstract

Biography

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