Kilimo Kwanza:Agriculture First in Tanzania?

Andrew Coulson, Institute of Local Government Studies University of Birmingham, England a.c.coulson@bham.ac.uk 0121-414-4966

Small farms or large?

The debate is 100 years old ! The Germans started by collecting small

quantities of crops from small farmers - they ended up supporting German settlers

The British – similar story ! Independence – small farms and co-operative

marketing – but then settlement schemes and block farms

Small farms can be competitive More hours spent Mixed cropping Minimal disturbance to the soil Harvesting that produces a quality product Other methods of risk management

Yields may be as high as on large farmsCosts will be low.Small farmers respond to price incentives.In China the average plot size is 0.3ha – and there

are hardly any large farms

The World Bank’s change of heart Tanzania’s agricultural exports have been growing

very very slowly The World Bank is now recommending that for the

next 10 years at least, Tanzania should promote exports of food crops – rice, maize, cassava

Tanzania is already Africa’s 3rd biggest producer of rice

There should be no distinction between food crops and cash crops – the distinction is a colonial concept – just crops, some of which can be sold

The 10 pillars of kilimo kwanza1. A national vision

2. A mobilization of financial resources – including a Rural Development Bank

3. Institutional reorganisation - good governance, good co-ordination

4. “Paradigm shift” - production of the right crops

5. Land titles, and use of land “to promote harmonious exploitation”

6. Better incentives, including removal of market barriers

7. Industrialisation – processing (forward linkages), fertilizers, seeds, machinery and tools (backward linkages)

8. Science, technology and human resource development – using an increased % of government income

9. Infrastructure – irrigation, storage, ports, airports, roads, markets, etc

10. Mobilization of all Tanzanians

Agricultural banks in developing countries have problems

Farmers are very good at finding ways of not paying back their loans

The best successes come when loans are linked to a processing facility, e.g. a ginnery or coffee pulping facility – but even then there may be problems

The best forms of credit are credit unions – where the community police the loans

What do small farmers need ?1. Access to land

2. Good prices

3. To be paid on time

4. Good roads, especially local roads

5. Good seeds – though mostly they will keep the best from last year, and use those

6. Availability of tools, fertilizers, insecticides etc if they want them

7. Appropriate storage and/or processing facilities

8. Market information – e.g. by mobile phones

9. Not much else !

How small farmers can be discouraged

1. Not being paid – or paid late

2. Middlemen who take a big cut in the price – private or state

3. Unofficial taxes, e.g. at road blocks

4. Non-market restrictions, such as export bans or prohibitions on growing certain crops

5. Any other tax or bureaucracy

6. Lack of reliable seeds or rootstock.

What will they do with their profit?

1. Invest in better houses2. School fees3. Consumer items or clothes 4. Invest in better or more tools or agricultural

technologies

In other words, the profit will be recycled.Food prices may rise initially, but when production

increases they will fall, to be somewhat near world prices (hopefully).

Is it Kilimo [agriculture] or Maendeleo ya Vijijini [community development] ?

It needs to be both – because there will not be any maendeleo [development] unless there is income

However, we should be aware that women do more than half the work in agriculture – so they need to be included in any planning

There will be much less maendeleo if there are large farms and landless casual workers

What about livestock ?

It has an important part to play “Mixed farming” benefits both crops and

livestock Tanzania has huge potential here also – but

there is need to respect the livestock keepers, for example by making sure they have sufficient grazing and water for the dry seasons

seeds

An American company – Monsanto – is trying to control the whole world market in seeds:

By patenting new and some old varieties By promoting GM crops which require its weedkillers – with

the result that other farmers nearby may suffer Already many traditional varieties of seeds have been lost

Hybrid seeds are more complex, because most varieties need new seeds each year

research

An agricultural research station is not the same as a farm

In research trials, it is common for tasks which cost money – such as weeding – to be done perfectly! [for example in a fertilizer trial]

Recommendations often do not take account of labour bottlenecks, or local situations

As a result, farmers often reject the recommendations, and are right to do so !

extension

Extension workers may not be sure if what they are telling the farmers to do is right or wrong

They may not have the confidence to recommend what they think is best

It is very hard to be a good extension worker – perhaps more should be farmers themselves and more should be women!

If farmers are rejecting their recommendations, then we should look and see why – this is a useful research project

The Role of the StateSo what should the state do to support small

farmers? As near to nothing as possible! If in doubt

do not intervene Intervene to make markets work better Undertake agricultural research Undertake socio-economic research, including

monitoring and evaluation of implementation Provide advice when new problems arise Help with exports Statistics and information

conclusions

Kilimo Kwanza comes at a good time The potential is there The primary agency for increased agricultural

output will be small farmers, and for increased exports what have traditionally been called “food crops”

The role of the state will be to provide the conditions for this, and keep its own costs down

The change of mindset this requires will not be easy