UNIVERSITY OF IRINGA

MASTERS OF ARTS IN JOURNALISM AND MEDIA MANAGEMENT (MAJOMM)

THE ROLE OF AGRICULTURE IN ECONOMIC DEVELOPMENT

Presented by Elisha Magolanga, 2015

Outline• Introduction• Background of agriculture in Tanzania • Contribution of Agricultural in economic

growth• Reasons for changes in agricultural production• Way forward improving agriculture sector• Conclusion

Abellanosa and Pava, (1987) defined the term agriculture in relation to crop farming and livestock farming as the art and science of growing plants and other crops and the raising of animals for food, other human needs, or economic gain . Agriculture plays a major role in economic development. It can enhance economic growth, but can also constraint it depends on the ways in which the agrarian question is solved.

Introduction

• Agriculture continues to provide livelihood for about 80% of the labour force despite the trends towards income diversification and urbanization

• The majority of farmers are smallholders who rely on traditional methods in cultivation and livestock-keeping. The average farm size is less than two hectares per household (Toni Haapanen, 2011) .

• Since the mid-1980s, the growth in domestic food production has lagged behind the population growth which has been over 2.5% annually. Especially the per capita production of fresh vegetables, roots and tubers has declined while wheat imports have grown manifold (The World Bank 2011).

Background of Agriculture in Tanzania

• According to the UNDP (2010), about 36% remain below the national poverty line and as many as 89% are estimated to live with less than USD 1.25 per day.

• The growth rate of agriculture has been at an average of 4.3% for the 2000–2012 periods, much slower than the rates of growth for industry and services (HDI 2014).

• Growth in agriculture actually slowed down over the 2000s, from 4.5% in the first half of the decade to 3.7% in later years. 20 Slow growth rates in agriculture resulted in the persistence of very high rates of rural poverty. Towards the end of the 2000s, as agricultural production declined, food prices increased at 12% per annum on average, and unmet demand for food led to rising imports of cereals and other foods.

Background…

Contribution to economic growth

Agricultural Sector remains the Foundation of the Economy in Tanzania as it accounts for:

• 24.7 per cent of the GDP • About 20 percent of traditional export earnings • Provides 95 percent of food requirement • Employs 75 per cent of the population• Control of inflation, since food contributes about

55.9% of the inflation basket • Highest multiplier effect in the economy

…..Critical to Reducing Poverty

Real GDP breakdown by sector Percent Workforce breakdown by sectorPercent, 2009

Services

Industry

Agriculture

Other

5

100% =

Agriculture

Industry

Services

2012

20.3 million employed

75

20

2006 2007 2008 2009 20100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Industry

Agriculture

Others

Services

8

6

15

Crops

Livestock

HuntingAnd forestry

Fishing

2012

100% = TZS 4.1 tril.

72

Out of which 56% are women

Source: URT 2012

Sector performance...

0123456789

20022003

20042005

20062007

20082009

20102011

2012

Sector Growth Economic Growth

The sector has maintained a steady growth rate of over 4% which is above population growth of 2.8%

……..91% of agriculture land in use is driven by smallholders farmers

14 million hectaresSmallholders▪ Smallholders average farm

size is 0.2 to 2 hectares▪ The main source of income

is sales of food crops

44 million hectaresArable land

1.5 million hectaresCommercial farming▪ There are 1,006 large scale

farms in Tanzania with the average size of 1,107 hectares

Reasons for agriculture decline in Sub Saharan

• Globalisation and liberalisation

• Urbanisation

• Increasing limits to natural resource use

• Climate change

• Land conflict

• HIV/AIDS pandemic

The projected reduction in African agricultural labour force due to AIDS by 2020

SOURCE: UNAIDS report, 2006.

Way forward improvement

1. Investment in rural infrastructure (rural roads, water supply, transportation, processing facilities, communication and electrification.2. Develop Human Capital in the sector• Target to have 1 extension officer in every village

which total to 15,082 extension officers• Currently, about 7,974 extension officers

equivalent to 53% of the target• In collaboration with LGAs a total of 2,546

extension officers were recruited in March, 2013.

Way forward…

3. Implementation of agriculture policies such as the BRN initiative4. Promote Research and Development5. Scale up input subsidies6. Promoting Irrigation farming7. Promoting mechanization in agriculture8. Reduce Pre and Post Harvest losses9. Emphasis on Rural Employment and Decent work10. Enhance Marketing and Value addition11. Sustainable Land Use Planning and Water Resources

Conclusion• We need economic transformation through

Science and Innovation because have always been the key forces behind agricultural growth.

• More importantly, the ability to add value to agricultural produce via the application of scientific knowledge to entrepreneurial activities stands out as one of the most important lessons of Economic History.

• Abellanosa, A and Pava H, (1987). Introduction to Crop Science. Central Mindanao University, Musuan, Bukidnon: Publications Office. p. 238).

• Bryceson, D.F. (1999). African rural labour, income diversification & livelihood approaches: A long-term development perspective. Review of African Political Economy

• FAO. 2006. "Aids a Threat to Rural Africa". Rome: FAO.• IPCC. 2001. "Climate Change 2001: Impacts, Adaptation and

Vulnerability": The Intergovernmental Panel on Climate Change (IPCC). WMO and UNEP.

• Toni Haapanen, (2011) Rural Food System Change in Tanzania during the Post-Ujamaa ERA: A Case Study from Western Bagamoyo District, University of Turku

• UNAIDS. 2006. "2006 Report on the Global Aids Epidemic", Geneva, Switzerland: UNAIDS.

References