TRADE IN AGRICULTURE IN THE EAC: IMPLICATIONS ON FOOD SECURITY AND RURAL LIVELIHOOD IN TANZANIA Monica A. Hangi Economic and Social Research Foundation (ESRF)
1 st phase: Political economy of trade policy making;
2 nd 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
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.
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
REGIONAL TRADE IN AGRICULTURE
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
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)
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.
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.
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.
How important is cross border trade in understanding food security and rural livelihood in EAC?
Consider: Regional Trade in Food Staple
Long-term Poverty Reduction and Food Security
Also, food purchase in deficit zones assists in food availability and reduces prices for food staples
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.