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Products of medicinal plants play significant roles in management of diseases. Their accessibility through trade plays a key role in health, economic and livelihood improvement. However, the traceability of the production process from their source in Tanzania is lacking. This study aims to depicture the production process of formulated products of medicinal plants.

The study applied the value chain theory using qualitative data from literature review and survey to practitioners of traditional medicine. Survey data were collected through 15 in-depth interviews and ten focus group discussions in five regions of Tanzania.

Input to output structure is performed through a five actors' value chain. The raw material is provided by harvesters who collected medicinal plants from wild. The processing is conducted by wholesalers and formulators. The wholesalers add value by drying, milling and bulk packaging of individual medicinal plants. Formulators mix different medicinal plants to create readymade products for specified diseases. Distribution is done by retailers and healers. There were six regulating and two supporting organizations. Private supporters were millers and transporters. Governance structure was deduced to be relational. Relational governance was a result of lack official standards along the value chain.

The described value chain can be used to guide investments in production of products of medicinal plants by improving formulation technology.