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TRADE IN AGRICULTURE IN THE EAC:

IMPLICATIONS ON FOOD SECURITY AND RURAL LIVELIHOOD IN

TANZANIA

Monica A. HangiEconomic and Social Research

Foundation (ESRF)

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INTRODUCTIONOverall 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

Specifically, the study aims at: Analyzing the recent trends in Regional Trade in

Agriculture within the EAC; and on Food Security and Rural Livelihood in Tanzania; and

Examining the relationship between Regional Trade in Agriculture and Food Security and Rural Livelihood in Tanzania.

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TANZANIAN AGRICULTURAL SECTOR The sector serves as the major source of food in

the country; creating employment for 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

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REGIONAL 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

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..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)

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REGIONAL TRADE IN THE AGRICULTURAL PRODUCTS

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

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…CONT

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)

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MAIN AGRICULTURAL TRADE FLOWS IN THE EAC REGION

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FOOD SECURITY TRENDS IN TANZANIA

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

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CURRENT ESTIMATED FOOD SECURITY CONDITIONS IN TANZANIA

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TRADE AND FOOD SECURITY

Cross 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

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INFORMAL CROSS BORDER TRADE 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

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INFORMAL TRADE BETWEEN TZ AND 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.

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ANALYSIS - FOOD SECURITY & RURAL 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

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..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.

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SYNTHESISHow important is cross border trade in understanding

food security and rural livelihood in EAC?

Consider: Regional Trade in Food Staple

Agricultural Development (and Rural Development)

Long-term Poverty Reduction and Food Security

Secondly, food purchase in deficit zones assists in food availability and reduces prices for food staples

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TANZANIA’S ROLE IN PROMOTING FOOD SECURITY AND RURAL LIVELIHOOD

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

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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 has requested funds from the World Bank;

Recent ‘Kilimo Kwanza’ (Agriculture First) resolution / initiative. ETC

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CONCLUSION 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.

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RECOMMENDATIONS

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

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…CONT

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