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

Trade in Agriculture in the EAC: Implications on Food Security and Rural Livelihood in Tanzania. Monica A. Hangi Economic and Social Research Foundation (ESRF). INTRODUCTION. 1 st phase: Political economy of trade policy making;

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

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  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 Tanzania’s 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 study’s 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, Tanzania’s 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. Tanzania’s share of trade with eac

  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

  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 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 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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