Panel 9: Building Food Security

Thursday, April 20th (12:45-1:45pm)

13th Symposium on

Development and Social Transformation

Agricultural Transformation: Tanzania’s Next Step

Alba Struga

Panel 9: Building Food Security

13th Symposium onDevelopment and Social Transformation

Tanzania:The Expanding Agricultural

Market Alba Struga

Presentation Overview

Role of agriculture in Tanzania’s economyConstraints to agricultural developmentCase studiesMaizeCashewsFlowers

Suggestions to improve agriculture

Agriculture in Tanzania

Accounts for 47% of GDPEmploys 75% of active labor forceContributes to 51% of foreign exchangeAgricultural growth ~ 3.5%Population growth ~ 2.8%

Constraints to Agricultural Growth

Low production, productivity and qualityProblems with infrastructure Lack of access to support servicesLack of irrigated agricultureGovernment constraintsLack of agro-processing industries

Some Definitions

Traditional export crops Coffee, cotton, tobacco, sisal, cashew

Non-traditional export cropsFruits, vegetables and flowers

Cash value crops Coffee, sugar cane, tea, cashew

Food crops maize

Maize Production

Principal staple food cropGrown in 44% of food crop landNational growth 1958-1998 2.4% per year, 0.3% less than population growthThe last five years show a deficit in maize

Constraints to Maize Production

Lack of credit facilitiesInsufficient and inadequate inputsLack of storage facilitiesLack of collaboration among farmersLack of government support Not enough resources to visit all small farmers High transaction costs Unfavorable trade policies for small exporters

Cashew Production

Source of income for 250,000 small farmersGrows on poor soilTolerates drought conditions28% of global raw nut exports in 1990-1998Export earnings rose from $ 4 millions in 1990 to $107 million in 1998

Constraints to Cashew Production

Deterioration of export qualityIncreasing production costsSmall number of buyers (India)Emergence of new competitors (Vietnam)Lack of domestic processingInstitutional constraints High local and national taxes The Cashew Board of Tanzania

Flower Seed Production

Flower seed production is replacing coffee production in northern Tanzania300 coffee growers switched to flowersEasy to growCould be harvested twice a yearNo artificial fertilizers

Constraints to Flower Seeds

Other major competitors (Kenya)Balancing between cash and food cropsLand scarcity

Suggestions

Improvements in access to markets Improvements in transportation infrastructure Better access to inputs & credit

Diversification toward non-traditional export products (vegetables, flowers and fruits)Vertical integration into processing industryOrganization of small farmers Trade policy and regulatory environment

Policy And Action Towards Food Security In Tanzania

James Abraham

Panel 9: Building Food Security

13th Symposium onDevelopment and Social Transformation

Food Security in Tanzania

Food Security in Tanzania

Policy & Sustainability

Policy & Sustainability

Cooperative Model

Cooperative Model

•“Unionizing” of farmers, develops purchasing power (econ. of scale)

•Develop relationships w/ Banks•Poor Legacy of Cooperatives•More isolated farmers are left

out

•“Unionizing” of farmers, develops purchasing power (econ. of scale)

•Develop relationships w/ Banks•Poor Legacy of Cooperatives•More isolated farmers are left

out

Integrated Producer Scheme

Integrated Producer Scheme•Farmers enter into contractual

distribution pipeline•Private companies control

some to all of processing, transport, & marketing

•Potentially harmful to farmers

•Farmers enter into contractual distribution pipeline

•Private companies control some to all of processing, transport, & marketing

•Potentially harmful to farmers

IPS – Example MarketsIPS – Example Markets

ProblemsProblems•Cash-crops vs. Staple crops

•Govt. promoting international competition

•Capital oriented agriculture, leaves poor in dark.

•Cash-crops vs. Staple crops

•Govt. promoting international competition

•Capital oriented agriculture, leaves poor in dark.

The Agricultural Sector Of Argentina

Michael Anthony Lagiglia

Panel 9: Building Food Security

13th Symposium onDevelopment and Social Transformation

Argentina’s Agricultural Sector

Agricultural Sector overview

Argentina based its first economic success on agriculture in the late 19th century.

60 Percent of all exports One of the main grain producers With a population of 40 million, Argentina produces

enough food for 300 million Recently, Argentina’s biggest prospect for growth

has been in its agriculture sector.

Relative size in grain exports

Argentina Gross Domestic Product Growth by Sector, 1997 - 2005

Comparative Advantage

Argentina has few competitors in Southern Hemisphere

Temperate climate ideal for agriculture Sector is free of subsidies Few farmers use chemical products Livestock are mainly grass-fed Increasing market share in upscale foreign

demand – higher margins

Growing regions

Wine industry

In 1987, exports accounted for 1% of output. By 2003 they amounted to 12% of output Multinational investment Credit problems Infrastructure

U.S. Relationship

Positive Long-run Outlook

Growth of large-scale commercial farms Establish international market channels Continued MNC investment Closed gaps in corn yields Development of internal waterways Demand from China US and EU agri-sector support programs? FTAA ?

FTAA welfare effects

Negative Outlook

Poor infrastructure Truck transportation subject to oil-price risk

Domestic storage capacity shortfalls Inadequate credit system Commodity prices? Climate change?

Questions?

Panel 9: Building Food Security

Thursday, April 20th (12:45-1:45pm)

Alba Struga Agricultural Transformation: Tanzania’s Next Step

James Abraham Policy And Action Towards Food Security In Tanzania

Michael Anthony Lagiglia

The Agricultural Sector Of Argentina

13th Symposium onDevelopment and Social Transformation