agricultural productivity rural livelihood and trade in agriculture
Skip this Video
Download Presentation
Agricultural Productivity Rural Livelihood and Trade in Agriculture

Loading in 2 Seconds...

play fullscreen
1 / 35

Agricultural Productivity Rural Livelihood and Trade in Agriculture - PowerPoint PPT Presentation

  • Uploaded on

Agricultural Productivity Rural Livelihood and Trade in Agriculture. Presented to the NRG FEATS PROJECT. Outline . Introduction Agriculture policy and structure Contribution of agriculture to economy Agriculture productivity Poverty and agriculture Agriculture and trade facilitation .

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Agricultural Productivity Rural Livelihood and Trade in Agriculture' - adem

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
agricultural productivity rural livelihood and trade in agriculture

Agricultural Productivity Rural Livelihood and Trade in Agriculture

Presented to the



  • Introduction
  • Agriculture policy and structure
  • Contribution of agriculture to economy
  • Agriculture productivity
  • Poverty and agriculture
  • Agriculture and trade facilitation
  • Economy registered positive growth since 2001
  • Macroeconomic indicators stablising
  • GDP per capita US$ 355 (2002) US$625 (2005) US$ 1183 (2008)
  • Poverty still high 64% poor PLUS ranked 165 out of 177 countries on the UNDP’s HDI
  • Poverty 80% in rural areas 34$ urban
  • Threatens country’s ability to achieve MDGs
  • Government efforts: -
cont d
  • PRSP , FNDP and Now SNDP
  • Also emphasised in:
    • The commercial, trade and industrial policy (CTI)
    • diagnostic trade integrated strategies, (DTIS) and the National Agricultural policy
  • Emphasize poverty reduction through agricultural production and trade
  • Need to understand the linkage between poverty
  • CUTS - through (FEATS) project seek to generate empirical data on the linkage between poverty, agriculture and trade
  • Role of and constraints faced by the agricultural sector with focus on rural livelihoods, productivity, and trade;
  • Trade facilitation needs and measures with focus on those directly related to landlockedness;
  • Development of coherent thinking and practice in the areas under study to advance poverty reduction and development objectives.
  • Two phased:
  • Phase 1: Secondary data sources from both national and international organizations and authorities – CSO, MACO, FAO WB etc
  • Phase 2: Primary data collection – interviews with stakeholders Mumbwa – two areas
  • Limitations
  • Inconsistent data across major sources FAO, World Bank and Government ministries
    • employment, international trade and investment flows tend to be difficult to generate, and, at times, significantly underestimated
key changes
Key Changes
  • Between 1964 – 1990s state dominated marketing, input supply and processing
  • Liberalisation in 1991 - resulted in some diversification
  • Private sector participation in
    • Production promotion - e.g., Outgrower schemes,
    • processing facilities
    • Export promotion initiatives have emerged
  • Structure changing
  • Small-scale category - increasing, medium $ large-scale largely unchanged over the years
  • Small-scale farmers supply over 70% of the national food requirements
agricultural policy
Agricultural Policy
  • Private sector driven agriculture that
    • assure national and household food security
    • generate income and employment to maximum feasible levels
    • contribute to sustainable industrial development
    • expand the sector\'s contribution to the BoP - increase total foreign exchange earnings from 3-5% to 10-20 %
    • boost the sector’s growth to 10% after 2006 and increasing its contribution to GDP from 18-20% to 25%
key players
Key players
  • Policy making –preserve of MACO & Livestock development
  • Statutory bodies- FRA and crop specific initiatives such as TBZ, Coffee Board of Zambia, Golden Valley Agricultural Research Trust (GART), Cotton Development Trust (CDT), Livestock Development Trust (LDT)

ZEGA Trust

  • MCTI –trade oriented
  • Private sector association ACF, ZNFU etc
  • GDP - directly an average of 20% drives GDP
  • Manufacturing – over 60% of sub-sector output such as tobacco, processed food , textiles and leather
  • Services –transportation services etc
  • Employment - accounts for 15% of formal sector
  • Informal sector employment - 70% countrywide
    • women key players
  • Livestock sector – largely neglected BUT has potential
    • Good area for poverty reduction –traditionally practiced
  • Food security – small scale farmers driven –
  • Maize production Good in 6/15 , Bad in 8/15 years
  • Rice deficits, wheat oscillates
  • Forex – from US$207 Mn (2001) to US$476Mn.
    • Private sector, Regional integration key to increase e.g. Congo DR, SACU and Zimbabwe
  • Issues around Maize- bans – making taking advantage of regional markets
    • Price controls- benefit traders at expense of small scale farmers
    • Goveren J–makes commercial sense to export even in deficit years
  • Livestock –neglected for a long time but has huge potential
  • FDI –pledges hang around 6% of total FDI
key exports
Key exports
  • Out grower schemes and PA critical in cotton, sugar, coffee, horticultural and floricultural products ( key to access inputs, credit and output market, technical training and coordination)
  • Poor maize policy – discourage private sector initiative e.g. bans
agricultural productivity
Agricultural productivity
  • Critical to efficiency gains and export competitiveness
  • Commercial farmers crops and livestock productivity meets global level (WB, 2008)
  • Small scale farmers – below regional levels for crops and livestock (lower than all other sectors in Zambia)
  • 70% of labor is inefficiently being used
  • Yield metric tons per hector is very low: averaging at less than 1.5 metric tons per hectare
livestock productivity
Livestock Productivity
  • An estimated 42% of Zambian landmass is suitable for agriculture/livestock activities with 21% of the total land area suitable for rangeland grazing.
  • Total livestock population of Goats, cattle and pigs are far less than the human population.
  • This contrasts greatly with countries like Namibia and Botswana that have established export oriented beef industries.
factors affecting productivity
Factors affecting productivity
  • Neglect of the Sector - government policy failures - delay in input delivery
  • Dependence on rain – only 11% of irrigation potential is used (2006)
  • Weak business orientation
  • Genetic Engineering
  • Education- good education levels lead to high returns
  • High Transactions costs problems – lack of complementary infrastructure in rural areas plus export
  • Land tenure system
  • Marketing structures
  • Trade and investment
cont d20
  • Agriculture finance – costly 25% and conditions of borrowing strangulating
  • Default rate highest -37% non-performing loans
  • Low producer price for maize, rice etc
  • HIV/AIDS –limited labour (sickness or caring for sick)
  • Key institutional capacities not aligned for small scale farmers e.g. GART, ACF etc.
livestock productivity21
Livestock productivity
  • prevalence of animal diseases;
  • high cost of veterinary drugs;
  • inadequate livestock nutrition and water;
  • poor animal husbandry practices/management;
  • inadequate marketing infrastructure;
  • lack of appropriate livestock research;
  • inadequate livestock extension and health services;
  • lack of linkages between livestock research and livestock extension.
poverty and agric trade
Poverty and agric trade
  • Improving agriculture productivity and trade could accelerate poverty in country
  • The sector accounts for over 70% of employment in the country and is core in rural livelihood
  • Commercial farmers already geared for exports
  • Government – recognises importance of trade- FNDP, CTI etc
  • Engaged in regional and MTS negotiations.
regional arrangements
Regional Arrangements
  • Key RTA
  • World trade organisation
    • AoA - illegalises unfair trade and implementation beneficial to LDCs
  • EBA , Cotonou agreement (EPAs) useful to Zambia
  • AGOA – selected products
  • SADC
  • Promotes regional food security, seed bank, etc
  • COMESA – Promote food security
  • Alliance for Commodity Trade in ESA (ACTESA) to foster investment, development policies, regional trade and marketing of staple agricultural commodities
trade facilitation
Trade facilitation
  • Zambia is land-locked making it harder to reach export markets and realize economies of scale, as well as access cheap import.
  • Air transport -high value and low weight and volume products, but also improved access to air transport
  • BUT -some firms suspended horticultural exports to Europe account of high transportation costs
  • A number of Initiatives to facilitate trade –not agriculture only
cont d25
  • WTO facilitated trade facilitation programmes such as assessing their trade facilitation needs and priorities.
  • UNCTAD, ICT, WCO, WTO programmes - Export priority identification , ACYCUDA EIF etc
  • Regional efforts – One border posts Chirundu, Nakonde??
  • North South Corridor development –under Aid for trade
  • ACTESA –information provision
  • USAID MATEP, Southern African Global Competitiveness Hub, technical assistance etc
cont d27
  • Southern Corridor – to Durban
  • Maputo corridor
  • Tazara corridor – Dar es Salaam
  • Walvis bay
  • Beira and Nacala Corridors: via Harare by rail
  • Angola –lobito
  • Infrastructure poor
cont d28
  • Initiatives
  • The Harmonized Commodity Description Coding System
  • COMESA Customs Declaration Document (COMESA-CD
  • COMESA Carrier\'s License
  • Harmonized Axle Loading, Maximum Vehicle Dimensions and road transit charges
  • Yellow Card Scheme
export barriers
Export Barriers
  • Sanitary and Phytosanitary measures (SPS
  • Minimum Residual Level
  • Market Standards
  • Pests Risk Assessment (PRA)
  • Complex tariff structures and import arrangements
  • Restrictive rules of origin
  • Agriculture still regarded as sensitive sector by most regional countries
case study
  • Mumbwa
  • Over 32 000 farmers
  • No direct external market BUT through PA agric business organizations
  • Outgrower schemes –cotton and paprika
  • Key issues:
  • Maize poor marketing arrangements, untimely and inadequate input supply, low prices, private traders
  • Cotton – outgrower scheme sponsored
  • Main source of income
cont d31
  • Alternative to maize
  • Outgrower scheme managers: determine input and output prices
  • Contracts are designed by scheme owners and are unclear
  • Prices are usually low
  • Quality determination is not clear and any losses are transferred to farmers
  • Government must:
  • Provide complementary services – infrastructure, research warehouses & support services necessary for private sector
  • Reduce policy confusion –maize marketing
  • Trade facilitation infrastructure and regional and MT negotiations
  • Facilitate code of conduct in outgrower schemes
  • Promote emergence of farmer organization to encourage coordinated approach to export promotion
  • Must be timely in providing inputs, purchases etc
  • Donor coordination
  • Government must reduce unnecessary intervention and reprioritse its expenditure on agriculture
  • Land policies must be improved upon
  • Recommendations to scheme owners
  • Provide a transparent production and marketing chain
  • Loan recovery must well explained through unbiased contracting methods, risks etc must be equally taken

Civil Society organisations

  • research and information dissemination network to all stakeholders in the various provinces
  • Encourage the Zambian Government to promote infrastructure for agricultural production and exports
cont d34
  • Lobby government and donors for more resources to be invested in the most binding constraints in agricultural
    • Sponsor Produce association targeting small scale farmers
    • Buy food aid from the regional
    • Coordinate closely in programme sponsorship.