Post on 18-May-2015
TRADE IN AGRICULTURE TRADE IN AGRICULTURE IN THE EAC: IN THE EAC:
IMPLICATIONS ON IMPLICATIONS ON FOOD SECURITY AND FOOD SECURITY AND RURAL LIVELIHOOD IN RURAL LIVELIHOOD IN
TANZANIATANZANIA
Monica A. HangiMonica A. Hangi
Economic and Social Research Economic and Social Research Foundation (ESRF)Foundation (ESRF)
INTRODUCTIONINTRODUCTION 1st phase: Political economy of trade policy
making; 2nd phase: The agricultural sector and its
importance to Tanzania’s economy and its social set up
Overall Objective: The study aims at providing new and valuable insights based on the analysis of the past and current patterns of regional trade in agriculture and their impact on food security and rural livelihood in Tanzania
..CONT..CONTOn top of this study’s contribution to the
regional and national policies, that can connect results of regional trade in agriculture with improvements in food security and rural livelihoods in Tanzania, the study also aims at:
Analyzing the recent trends in regional trade in agriculture; and on food security and rural livelihood; and
Examining the relationship between regional trade in agriculture and food security and rural livelihood in Tanzania.
TANZANIAN AGRICULTURAL TANZANIAN AGRICULTURAL SECTORSECTOR The sector serves as the major source of food
in the country; with an employment of approximately 74 percent of the entire population.
Agriculture in Tanzania is dominated by smallholder farmers (farm sizes between 0.9 to 3.2 hectares)
By 2008, agricultural economic activities grew by 4.6 percent (compared to 4.0 percent in 2007)
In 2007/08, production of the main produced food crop (Maize) increased by 7.66 percent; and the main cash crop (Cotton) increased by 53.7 percent
REGIONAL TRADE IN THE EACREGIONAL TRADE IN THE EAC
Generally, non-traditional exports (like gold) has contributes largely into the external sector; Imports of capital and intermediate goods increased BUT Imports of food stuff decreased (2008)
Imports: Trade among EAC member states increased by 13
percent in 2007 (Even with the GFC, trade among members continued to increase – esp. Kenya & Uganda) AND an increase of 92.8 percent was reached by 2008
However, Tanzania’s share of Intra EAC imports declined by 13.4 percent in 2007 and further by 2008
..CONT..CONTExports: All EAC member states registered increases
in export values by 2008 Tanzania share of exports to EAC increased to
USD 315.5 mill in 2008, compared to USD 172.8 mill in 2007 – which is an increase of approximately 82.6 percent
Tanzania has registered high export values with Kenya (USD 235 mill) by 2008 BUT has registered low export values with Burundi (of USD 19.5 mill from USD 41.5 mill in 2007)
TANZANIA’S SHARE OF TRADE TANZANIA’S SHARE OF TRADE WITH EACWITH EAC
Item
Share of Export to: 2000 2001 2002 2003 2004 2005 2006 2007
Kenya 68.8 73.3 68.3 81.7 79.1 71.5 77.6 58.4
Uganda 18.2 10.6 10.6 10.8 11.1 18.8 17.0 11.1
Burundi 9.1 11.8 13.6 4.9 7.1 6.9 3.1 24.0
Rwanda 3.9 4.4 7.5 2.7 2.8 2.8 2.4 6.5
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Share of Import from:
Kenya 94.2 94.6 97.2 92.5 94.3 96.6 97.5 94.0
Uganda 5.7 5.3 2.8 6.6 5.6 3.3 2.4 6.0
Burundi 0.0 0.1 0.0 0.3 0.0 0.2 0.0 0.0
Rwanda 0.1 0.0 0.0 0.6 0.1 0.0 0.1 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
REGIONAL TRADE IN THE AGRIC. REGIONAL TRADE IN THE AGRIC. PRODUCTSPRODUCTS
Tanzania and Kenya: Tanzania agricultural imports from Kenya are
approximately 6 times higher than Tanzania’s exports to Kenya
The strong agricultural trade ties between TZ and Kenya are due to the poor transport infrastructure in Tanzania
Maize, Rice and Beans are the main staple foods traded between the two countries
From TZ, Kenya imports: Maize, Beans, Fish, Rice, Root Crops, Sugar, Fruits and Vegetables
From Kenya, TZ imports: Wheat flour and Sugar
……CONTCONT
Tanzania and Uganda: Agricultural trade between Uganda and
Tanzania is low compared to trade between Tanzania and Kenya, Zambia, Rwanda, Burundi, Democratic Republic of Congo, and Malawi
Main staple foods traded between the two countries are Rice, Beans and Bananas
From TZ, Uganda imports Rice and Bananas (though this direction can reverse depending on the season)
From Uganda, TZ imports mainly Rice (and it remains the main traded commodity between the two countries – though informally)
MAIN AGRICULTURAL TRADE MAIN AGRICULTURAL TRADE FLOWS IN THE EAC REGIONFLOWS IN THE EAC REGION
FOOD SECURITY TRENDS IN FOOD SECURITY TRENDS IN TANZANIATANZANIA
Food self-sufficiency (production and provision) at whatever time
By 2009, across 15 regions in TZ, there were more than 1.5 mill food insecure people (spread over 63 districts)
Most Households in Tanzania consume 2-3 meals per day; with few percentages of people having fewer meals than usual: overall 25.1 percent and 24.5 percent from rural population
CURRENT ESTIMATED FOOD CURRENT ESTIMATED FOOD SECURITY CONDITIONS IN SECURITY CONDITIONS IN
TANZANIATANZANIA
TRADE AND FOOD TRADE AND FOOD SECURITYSECURITYCross border trade has an impact on food
security in the following ways: Expanding markets – ensuring provision Allows consumption of good which at times
are not produced within the borders Creation of employment – affording
consumption
RURAL LIVELIHOOD TRENDS IN RURAL LIVELIHOOD TRENDS IN TZTZ Livelihoods, especially in developing
countries, are aligned with production capacities of food and cash crops. And, livestock as well.
In Tanzania, 78 livelihood zones have been distinguished.
TANZANIA LIVELIHOOD TANZANIA LIVELIHOOD ZONESZONES
INFORMAL CROSS BORDER INFORMAL CROSS BORDER TRADE IN EACTRADE IN EAC
Informal trade in EAC mainly occurs through unofficial channels established around formal ones at border townships and deep seas
On the Tanzania-Kenya border, informal trade occurs at Namanga and Sirari; While on the Tanzania-Uganda border, informal trade occurs mainly at the Mutukula, Bukoba and Kyaka border points
Reasons for informal trade in EAC includes: road blocks and presence of rigid, time consuming bureaucratic procedures
INFORMAL TRADE BETWEEN TZ INFORMAL TRADE BETWEEN TZ AND ITS NEIGHBORSAND ITS NEIGHBORS
Informal trade between TZ and its neighboring countries has been found to be significant, involving exchange of large volumes of goods.
Agricultural food commodities; mainly maize, rice, beans, sugar, wheat flour and root crops;
Industrial manufactures; toiletries, beer and spirits, cooking fats/oils, soft drinks, textiles (both new and used), construction materials, salt, electronics, petroleum products and car and bicycle parts;
Forest resources; charcoal and timber; and Water resources, which included all kinds of
fish species and prawns.
FOOD PRODUCTION IN FOOD PRODUCTION IN EACEAC
Wheat Maize Millet Cassava Beans RiceBurundi 1 17 1 99 31 6Kenya 11 79 2 14 10 1Rwanda 2 10 98 23 3Uganda 1 42 23 196 17 3Tanzania 3 79 5 164 8 18
TANZANIA KENYA UGANDA BURUNDI RWANDAProduct MT Product MT Product MT Product MT Product MT
Cattle meat
248,695 Cow milk
4,230,000 Plantain 9,231,000 Banana 1,600,000 Plantain 2,600,000
Banana 3,500,000 Cattle meat
396,520 Cassava 4,456,000 S/Potatoes 873,663 Potatoes 1,200,000
Cassava 6,600,000 Maize 2,928,793 S/Potatoes 670,000 Beans (Dry)
205,196 Beans (Dry)
280,000
Maize 3,659,000 Beans 427,996 Cattle meat
106,044 Vegetable 250,000 S/Potatoes 800,000
Rice(Paddy)
1,341,835 Banana 1,186,740 Cow milk 735,000 Cassava 558,557 Cassava 800,000
ANALYSIS - FOOD SECURITY & ANALYSIS - FOOD SECURITY & RURAL LIVELIHOOD IN TANZANIARURAL LIVELIHOOD IN TANZANIA
Food Insecurity in Tanzania is mainly due to: Economic reasons: lack of food security
knowledge; lack of market knowledge; low food production; poverty; food trade barriers; price volatility; low investment in the agric sector.
Environmental and Ecological reasons: environmental degradation; natural hazards; high dependency in rain; poor storage and food handling methods.
Infrastructural problems
..CONT..CONT Political and Institutional reasons:
inappropriate agric and trade policies; weak institutions; insufficient agricultural development efforts.
Social reasons: Diseases among farmers, traders and workers (HIV/AIDS); unemployment; unequal distribution of resources; high population growth (as compared to food production); gender inequality; lack of security and stability.
SYNTHESISSYNTHESISHow important is cross border trade in
understanding food security and rural livelihood in EAC?
Consider: Regional Trade in Food Staple
Agricultural Development
Long-term Poverty Reduction and Food Security
Also, food purchase in deficit zones assists in food availability and reduces prices for food staples
TANZANIA’S ROLE IN PROMOTING TANZANIA’S ROLE IN PROMOTING FOOD SECURITY AND RURAL FOOD SECURITY AND RURAL
LIVELIHOODLIVELIHOOD
i) Tanzania’s National Agricultural Policy (1997):
Recognizes the need to improve agri-technics and agriculture practices so as to enhance the agriculture activities for higher productivity
The policy strategizes, among others, to facilitate transport and storage infrastructures; as well as in promoting institutional structures in the agricultural sector.
ii) Tanzania Food and Nutrition Policy
OTHER PROGRAMMES:OTHER PROGRAMMES:
Food for Work Programme (FFW) – by WFP; National Strategy for Growth and Reduction of Poverty (NSGRP); Agriculture Sector Development Programme (ASDP) and Tanzania Social Action Fund (TASAF)
The “Accelerated Food Security in Tanzania” Project – The GoT requested funds from the World Bank
CONCLUSIONCONCLUSION EAC is characterized by food insecurity conditions,
especially in Kenya and in some parts of Tanzania, Uganda, Rwanda and Burundi. It however doesn’t imply that the entire region is food insecure.
Cross-border trade (especially on agricultural products) within EAC has proved to improve the conditions of food production and food availability in member countries.
Improved rural livelihoods are a result of a number of factors. Among those factors, the issue of trade on especially the agricultural products features in.
Hence, in order to improve food security conditions as well as experiencing rural development in Tanzania, Cross-Border Trade should be encouraged.
RECOMMENDATIONSRECOMMENDATIONS
To the Government of Tanzania: Attention should be paid to the needs of the
farmers; Improvement of the Warehousing facilities; Development of Farm Service Centers so as to address the needs of the local farmers; Financial assistance; and Addressing the customs procedures; taxes operations; bribes and delays at border posts
To the EAC Secretariat: Awareness on the regional market access;
Strengthening regional transport networks; and Assist the member countries so as to operate under a harmonized food safety standards
……CONTCONT
To Stakeholders (CSOs, Private Sector, Farmers Associations):
Improved productivity levels; assist the government and the secretariat in information dissemination through seminars, conferences and by carrying out researches