1. Monica A. Hangi Economic and Social Research Foundation (ESRF)
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 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

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 the 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, 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 percent

5. 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

6. ..cont
Exports:
All EAC member states registered increases in export values by 2008
Tanzania share of exports to EAC increased to USD mill in 2008, compared to USD 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
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
10.8
11.1
18.8
17.0
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
2.4
6.5
Total
100.0
Share of Import from:
94.2
94.6
97.2
92.5
94.3
96.6
97.5
94.0
5.7
5.3
6.6
5.6
3.3
6.0
0.0
0.1
0.3
0.2
0.6

8. Regional trade in the agric. 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

9. …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)

10. Main Agricultural trade flows in the EAC region

11. 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 percent from rural population

12. Current estimated food security conditions in Tanzania

13. 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

14. 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.

15. Tanzania livelihood zones

16. 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

17. 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.

18. Food Production in EAC Wheat Maize Millet Cassava Beans Rice Burundi 117 99 31 6
Kenya 11 79 2 14 10
Rwanda 98 23 3
Uganda 42
196
Tanzania 5
164 8 18
TANZANIA
KENYA
UGANDA
BURUNDI
RWANDA
Product MT
Cattle meat
248,695
Cow milk
4,230,000
Plantain
9,231,000
Banana
1,600,000
2,600,000
3,500,000
396,520
Cassava
4,456,000
S/Potatoes
873,663
Potatoes
1,200,000
6,600,000
Maize
2,928,793
670,000
Beans (Dry)
205,196
280,000
3,659,000
Beans
427,996
106,044
Vegetable
250,000
800,000
Rice(Pad dy)
1,341,835
1,186,740
735,000
558,557
Table 1: EAC Food production (Kg/Person/Year),
Table 2: The Top five Produced Food commodities in EAC Member States in 2007 (Quantity in MT)

19. 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

20. ..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.

21. 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

22. 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

23. 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 requested funds from the World Bank

24. 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.

25. 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

26. …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