Trade in Agriculture in the EAC: Implications on Food Security and Rural Livelihood in Tanzania - PowerPoint PPT Presentation

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Trade in Agriculture in the EAC: Implications on Food Security and Rural Livelihood in Tanzania

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TRADE IN AGRICULTURE IN THE EAC: IMPLICATIONS ON FOOD SECURITY AND RURAL LIVELIHOOD IN TANZANIA Monica A. Hangi Economic and Social Research Foundation (ESRF) – PowerPoint PPT presentation

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Title: Trade in Agriculture in the EAC: Implications on Food Security and Rural Livelihood in Tanzania


1
Trade in Agriculture in the EAC Implications on
Food Security and Rural Livelihood in Tanzania
  • Monica A. Hangi
  • Economic and Social Research Foundation (ESRF)

2
INTRODUCTION
  • 1st phase Political economy of trade policy
    making
  • 2nd phase The agricultural sector and its
    importance to Tanzanias economy and its social
    set up
  • Overall Objective The study aims to provide 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

3
..cont
  • On top of this studys 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 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.

4
Tanzanian agricultural sector
  • 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, agriculture 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

5
Regional trade in agriculture
  • Imports
  • Trade among EAC member states increased by 13
    percent in 2007 (Even with GFC, trade among
    members continued to increase esp. Kenya
    Uganda) AND an increase of 92.8 percent was
    reached by 2008
  • However, Tanzanias share of imports to EAC
    declined by 13.4 percent in 2007 and further by
    2008
  • WHY?

6
..cont
  • Exports
  • Generally, all EAC member states registered an
    increase 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)

7
Tanzanias share of trade with eac
Item Item Item Item Item Item Item Item 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 Share of Import from Share of Import from Share of Import from Share of Import from Share of Import from Share of Import from Share of Import from 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
8
Food Security trends in Tanzania
  • 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

9
Current estimated food security conditions in
Tanzania
10
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

11
Rural Livelihood trends in TZ
  • 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.

12
Tanzania livelihood zones
13
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.

14
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.

15
Food Production in EAC
Wheat Maize Millet Cassava Beans Rice
Burundi 1 17 1 99 31 6
Kenya 11 79 2 14 10 1
Rwanda 2 10 98 23 3
Uganda 1 42 23 196 17 3
Tanzania 3 79 5 164 8 18
TANZANIA TANZANIA KENYA KENYA UGANDA UGANDA BURUNDI BURUNDI RWANDA RWANDA
Product 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
16
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.
  • Infrastructure problems

17
..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.

18
Synthesis
  • How 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

19
Conclusion
  • EAC is characterized by food insecurity
    conditions, especially in Kenya and in some parts
    of Tanzania, Uganda, Rwanda and Burundi. It
    however doesnt 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 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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