| Sumario: | Groundnut value chains are expanding rapidly in Tanzania, driven in part by rising urban demand and the growth of peanut butter processing. However, supply chains remain fragmented and informal, with limited incentives or mechanisms to ensure quality and food safety, restricting the sector’s potential to improve nutrition, livelihoods, and public health. This brief presents findings from qualitative fieldwork and ongoing research aimed at identifying constraints to value chain upgrading and opportunities for innovation. Engagement with value chain actors and stakeholders highlighted five potential market failures: weak quality verification systems, a lack of incentives for upstream quality investment, coordination failures, food safety externalities (e.g., lower-quality nuts with higher contamination risk entering other markets), and incomplete markets for improved seeds. We outline a research agenda to test institutional and technological innovations to address market failures and strengthen quality incentives for improved livelihood, nutrition, and food safety outcomes at scale.
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