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Figure from:High global food prices – crisis or opportunity for smallholder farmers in Tanzania?

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Do you consume cereal foods?

Table 77 Do you consume cereal foods?

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Note: Prices refer to monthly average,
Note: Prices refer to monthly average,
Figure 2. Cereal production in developed and developing countries (FAO, 2009d) According to FAO, the forecast for production increase where it is most needed does not look all hat good: In Low-Income Food-Deficit countries, prospects for the early 2009 cereal crops yoint to a lower output. The challenge is how to increase production also in developing countries vhere smallholder farmers are in dire need of livelihood improvements and governments indeed 1eed the economic contribution to GDP that agriculture can provide. Production in African 1griculture is low compared with other regions and has not had any real yield improvements over ast decades (UNCTAD, 2009). In the 1970s, African countries were exporting food while in 2008 they imported about 25% of food. According to UNCTAD (2009), 45% of wheat and 84% yf rice consumed in Africa is imported.
Figure 2. Cereal production in developed and developing countries (FAO, 2009d) According to FAO, the forecast for production increase where it is most needed does not look all hat good: In Low-Income Food-Deficit countries, prospects for the early 2009 cereal crops yoint to a lower output. The challenge is how to increase production also in developing countries vhere smallholder farmers are in dire need of livelihood improvements and governments indeed 1eed the economic contribution to GDP that agriculture can provide. Production in African 1griculture is low compared with other regions and has not had any real yield improvements over ast decades (UNCTAD, 2009). In the 1970s, African countries were exporting food while in 2008 they imported about 25% of food. According to UNCTAD (2009), 45% of wheat and 84% yf rice consumed in Africa is imported.
Figure 3. Food price increase in Ethiopia, July 2008 — November 2009 (FAO/WEP, 2009) As seen in Figure 3, Ethiopia experienced a sharp increase in food prices in general, and prices of cereals in particular, during a few months in 2008. There is no consensus on why Ethiopia is experiencing such rapid price rises. Unlike in the past, inflation growth has recently coincided with high economic growth rates. World food price increases may not have big effects in Ethiopia because of the limited size of food imports and also of food export, although Ulimwengu, et al. (2009) find significant short-term price effects between the world maize market and Ethiopian regional markets bordering Sudan. Prices for major staple crops have been
Figure 3. Food price increase in Ethiopia, July 2008 — November 2009 (FAO/WEP, 2009) As seen in Figure 3, Ethiopia experienced a sharp increase in food prices in general, and prices of cereals in particular, during a few months in 2008. There is no consensus on why Ethiopia is experiencing such rapid price rises. Unlike in the past, inflation growth has recently coincided with high economic growth rates. World food price increases may not have big effects in Ethiopia because of the limited size of food imports and also of food export, although Ulimwengu, et al. (2009) find significant short-term price effects between the world maize market and Ethiopian regional markets bordering Sudan. Prices for major staple crops have been
Figure 4. Maize price increase in Malawi, real and nominal terms (Banda et al., 2008) The poor 2004/05 season, made the government restart its support to agricultural inputs (fertilizer and seed for maize and tobacco, which continues, as well as a once-off support for coffee and tea in the 2008/09 season). Vouchers are currently distributed to poor smallholders. The vouchers allow for seed free of charge and heavily subsidized fertilizers. The voucher system has contributed towards increased production and improved food security (Sjaastad et al., 2007). Other factors, such as favorable rainfall, a predictable market, political stability, and donor support to fertilizer subsidies have also contributed to the improvements in production and food security. Food prices in Malawi, especially maize, have been rising both in real and nominal terms (Figure 4).
Figure 4. Maize price increase in Malawi, real and nominal terms (Banda et al., 2008) The poor 2004/05 season, made the government restart its support to agricultural inputs (fertilizer and seed for maize and tobacco, which continues, as well as a once-off support for coffee and tea in the 2008/09 season). Vouchers are currently distributed to poor smallholders. The vouchers allow for seed free of charge and heavily subsidized fertilizers. The voucher system has contributed towards increased production and improved food security (Sjaastad et al., 2007). Other factors, such as favorable rainfall, a predictable market, political stability, and donor support to fertilizer subsidies have also contributed to the improvements in production and food security. Food prices in Malawi, especially maize, have been rising both in real and nominal terms (Figure 4).
Figure 6. Relative Monthly Maize Prices for 2007 and 2008 (Food and Nutrition Security Technical Secretariat, Ministry of Agriculture in Phiri, 2008) -hiri (2008) gave a number of possible reasons for this situation. The early harvest of maize by ome farmers at a time when the majority of them were going through the “hunger period’ senerated low supply and a relatively high demand. Hence, the high prices at this time. Second. he press and politicians started questioning the market behavior. Many private traders engaged n maize purchases expecting to hoard the maize and sell at a far higher price later in the ‘onsumption season. Competitive pressures grew in the country mainly between private traders ind ADMARC fueling a continuous upward trend of maize prices in the country. Other crops so benefited from this trend. Third, it had also been reported that the competition was created yy the fact that private traders made good business in 2007 out of selling maize and other crop roduce to Zimbabwe, fuelling domestic price increases. But the contracts in 2007 were awarded hrough NFRA. Since problems of food shortage were still continuing in Zimbabwe, some of the raders negotiated contracts with Zimbabwe firms on their own. The ‘scramble’ for crop produce mn the market was partly to satisfy these contracts. Lastly, it had been pointed out that the fact hat ADMARC was more active in buying maize, targeting to stock 200,000 MT, signaled to nany a shortage of the staple. This contributed to the competitive pressure in maize purchases cross the country.
Figure 6. Relative Monthly Maize Prices for 2007 and 2008 (Food and Nutrition Security Technical Secretariat, Ministry of Agriculture in Phiri, 2008) -hiri (2008) gave a number of possible reasons for this situation. The early harvest of maize by ome farmers at a time when the majority of them were going through the “hunger period’ senerated low supply and a relatively high demand. Hence, the high prices at this time. Second. he press and politicians started questioning the market behavior. Many private traders engaged n maize purchases expecting to hoard the maize and sell at a far higher price later in the ‘onsumption season. Competitive pressures grew in the country mainly between private traders ind ADMARC fueling a continuous upward trend of maize prices in the country. Other crops so benefited from this trend. Third, it had also been reported that the competition was created yy the fact that private traders made good business in 2007 out of selling maize and other crop roduce to Zimbabwe, fuelling domestic price increases. But the contracts in 2007 were awarded hrough NFRA. Since problems of food shortage were still continuing in Zimbabwe, some of the raders negotiated contracts with Zimbabwe firms on their own. The ‘scramble’ for crop produce mn the market was partly to satisfy these contracts. Lastly, it had been pointed out that the fact hat ADMARC was more active in buying maize, targeting to stock 200,000 MT, signaled to nany a shortage of the staple. This contributed to the competitive pressure in maize purchases cross the country.
Table 2, above, gives an overview of how farmers in a food surplus and food deficit village in Ethiopia respond to cereal price increase. The income level has improved for those selling maize, wheat and teff. The majority of farmers are selling cereals in the food surplus village while a minority is selling in the food deficit village. In the food surplus village the price of fertilizer is not regarded as a constraint when it comes to making profit. The increased income makes it possible for farmers in the food surplus village to invest in the farm. They spend proportionally less on food purchase than in the food deficit village. The result from these two villages indicates that in Ethiopia, there is more than a 50% chance to benefit from the high food prices given that you are in a better-off area (sufficient land of good fertility and sufficient rainfall). This finding corresponds with what Hussein Jemma (personal communication, July 2009) found in Arsi and West Arsi Zones of Oromia that farmers in better-off areas are able to improve their income from farming given that they have access to modern technology and have the capability to work hard. Unfortunately, the majority of farmers in Ethiopia do not find themselves in this favorable situation.
Table 2, above, gives an overview of how farmers in a food surplus and food deficit village in Ethiopia respond to cereal price increase. The income level has improved for those selling maize, wheat and teff. The majority of farmers are selling cereals in the food surplus village while a minority is selling in the food deficit village. In the food surplus village the price of fertilizer is not regarded as a constraint when it comes to making profit. The increased income makes it possible for farmers in the food surplus village to invest in the farm. They spend proportionally less on food purchase than in the food deficit village. The result from these two villages indicates that in Ethiopia, there is more than a 50% chance to benefit from the high food prices given that you are in a better-off area (sufficient land of good fertility and sufficient rainfall). This finding corresponds with what Hussein Jemma (personal communication, July 2009) found in Arsi and West Arsi Zones of Oromia that farmers in better-off areas are able to improve their income from farming given that they have access to modern technology and have the capability to work hard. Unfortunately, the majority of farmers in Ethiopia do not find themselves in this favorable situation.
It has been revealed through the study that some traders are exploiting producers by lending cash when they have run out of food from their own production with the aim of collecting a stated amount of maize at harvest. This is testimony that increasing food prices are creating business opportunities not only to the producers, but also to the traders. However, due to the urban biased food policy, the government intervened to control the increasing food prices. The question is if the government is denying the producers who produce a surplus the opportunity to make money out of maize production? Usually, no easy answer is given to this question. The reality on the ground however is that denying farmers remunerative produce prices is a disincentive to the increased use of improved technologies such as improved seeds and inorganic fertilizers. The government’s policy is to control the sharp increase in food prices to protect the urban consumers on the one hand and to support the producers on the other with various interventions that are aimed at abating the cost of production so as to render food crops (maize in particular) profitable. The study has clearly demonstrated that food price increases are a major challenge to policy makers. Producers as well as consumers need to be supported in the face of continued increase of food prices. It is unlikely that farmers will achieve higher levels of crop productivity without any support. Taking Malawi’s hunger history into consideration, food security is prioritized by the government in its country policy.
It has been revealed through the study that some traders are exploiting producers by lending cash when they have run out of food from their own production with the aim of collecting a stated amount of maize at harvest. This is testimony that increasing food prices are creating business opportunities not only to the producers, but also to the traders. However, due to the urban biased food policy, the government intervened to control the increasing food prices. The question is if the government is denying the producers who produce a surplus the opportunity to make money out of maize production? Usually, no easy answer is given to this question. The reality on the ground however is that denying farmers remunerative produce prices is a disincentive to the increased use of improved technologies such as improved seeds and inorganic fertilizers. The government’s policy is to control the sharp increase in food prices to protect the urban consumers on the one hand and to support the producers on the other with various interventions that are aimed at abating the cost of production so as to render food crops (maize in particular) profitable. The study has clearly demonstrated that food price increases are a major challenge to policy makers. Producers as well as consumers need to be supported in the face of continued increase of food prices. It is unlikely that farmers will achieve higher levels of crop productivity without any support. Taking Malawi’s hunger history into consideration, food security is prioritized by the government in its country policy.
Figure 1. Map of Ethiopia showing the study sites Legend: Damot Sore @ asi Negele aforementioned points and food price inflation.
Figure 1. Map of Ethiopia showing the study sites Legend: Damot Sore @ asi Negele aforementioned points and food price inflation.
Table 2. Housing structure in the locations by year b) Land availability The average landholding for the respondents in the two locations was calculated to be 4.91
Table 2. Housing structure in the locations by year b) Land availability The average landholding for the respondents in the two locations was calculated to be 4.91
Table 3. Mean areas in timad in the two locations
Table 3. Mean areas in timad in the two locations
Table 4. Major livestock assets in the two locations
Table 4. Major livestock assets in the two locations
Table 5. Ownership of pack animals in the two locations to be noted that the most important pack animal is Donkey (Table 5).
Table 5. Ownership of pack animals in the two locations to be noted that the most important pack animal is Donkey (Table 5).
Table 6. Area and average yield per hectare for major cereal crops and pulses ** The majority classification is based on size of land and productivity of the crops.
Table 6. Area and average yield per hectare for major cereal crops and pulses ** The majority classification is based on size of land and productivity of the crops.
Table 7. Sellers and not sellers of cereal crops in the study locations * Sellers represent hhs which sold any amount of the crops.( at least more than zero)
Table 7. Sellers and not sellers of cereal crops in the study locations * Sellers represent hhs which sold any amount of the crops.( at least more than zero)
Table 8. Summary of root and tuber crop production and sales
Table 8. Summary of root and tuber crop production and sales
Table 9. Income from sales of crop in two study sites
Table 9. Income from sales of crop in two study sites
where as the sale in Damot Sore is diversified into all crops including pulses, root and fruit crops.
where as the sale in Damot Sore is diversified into all crops including pulses, root and fruit crops.
Table 10. Income received from sales of livestock and their products in Birr
Table 10. Income received from sales of livestock and their products in Birr
Farmers in both areas tell that selling of milking cow shows a distress sale. When a family is in >specially in Damote Sore where food insecurity is severe.
Farmers in both areas tell that selling of milking cow shows a distress sale. When a family is in >specially in Damote Sore where food insecurity is severe.
Table 11. Participation in different sources of income other than crop and livestock sales
Table 11. Participation in different sources of income other than crop and livestock sales
for work and food aid. Almost all the households in this site participate in these different income
for work and food aid. Almost all the households in this site participate in these different income
Table 12. Income from major sources Damot Sore earn more from selling livestock and their products.
Table 12. Income from major sources Damot Sore earn more from selling livestock and their products.
Table 13. Expenditure on basic agricultural inputs Farm hhs in Damot Sore have a small tendency to adopt or use modern yield/Productivity armers’ expenditure on basic agricultural inputs, seed, fertilizer and chemicals was also
Table 13. Expenditure on basic agricultural inputs Farm hhs in Damot Sore have a small tendency to adopt or use modern yield/Productivity armers’ expenditure on basic agricultural inputs, seed, fertilizer and chemicals was also
Table 14. Consumption expenditures of farm households in the two sites
Table 14. Consumption expenditures of farm households in the two sites
Damot Sore, Nine respondents supported their relatives in urban areas and even friends in the
Damot Sore, Nine respondents supported their relatives in urban areas and even friends in the
A1.1 Changes in stock of livestock between 2008 and 2009 at Arsi Negele site
A1.1 Changes in stock of livestock between 2008 and 2009 at Arsi Negele site
Figure 1 is a map showing the study sites.
Figure 1 is a map showing the study sites.
better than in Salima (see Table 1 below). The results from the study for the education attainment of household heads revealed that the ighest percentage of the respondents 33 (30%) had never been to any formal school. However, 32 (29%) had reached Standard 1-5, 30 (27%) had reached Standard 6-8. Only 11 (10%) had eached as high as Secondary school while only 5 (5%) had attained tertiary education. When esults were analyzed by district (EPA), it was found that the situation in Lilongwe was far much yetter than in Salima (see Table 1 helow). esults were analyzed by district (EPA), it was found that the situation in Lilongwe was far much
better than in Salima (see Table 1 below). The results from the study for the education attainment of household heads revealed that the ighest percentage of the respondents 33 (30%) had never been to any formal school. However, 32 (29%) had reached Standard 1-5, 30 (27%) had reached Standard 6-8. Only 11 (10%) had eached as high as Secondary school while only 5 (5%) had attained tertiary education. When esults were analyzed by district (EPA), it was found that the situation in Lilongwe was far much yetter than in Salima (see Table 1 helow). esults were analyzed by district (EPA), it was found that the situation in Lilongwe was far much
in Table 2 below:
in Table 2 below:
Figure 2. Nominal and Real Annual Average Maize Price in Malawi (see Banda et al 2008) terms (Figure 2).
Figure 2. Nominal and Real Annual Average Maize Price in Malawi (see Banda et al 2008) terms (Figure 2).
and which affect food security in different months. The other important consideration in prices is the seasonal nature at which they change (Figure 3)
and which affect food security in different months. The other important consideration in prices is the seasonal nature at which they change (Figure 3)
Source: Fertilizer Association of Malawi. Paper Presented at the Capital Hotel (August 2008). insecurity. Hence such a policy is self-defeating!
Source: Fertilizer Association of Malawi. Paper Presented at the Capital Hotel (August 2008). insecurity. Hence such a policy is self-defeating!
4.4 LIVESTOCK OWNERSHIP AND SALES
4.4 LIVESTOCK OWNERSHIP AND SALES
kept and the variation can be noted in the Table 5 below. average number of animals per household was only 3. The rest of the other types of livestock
kept and the variation can be noted in the Table 5 below. average number of animals per household was only 3. The rest of the other types of livestock
It should be noted that little variation in the numbers of livestock arising from sales. However, as
It should be noted that little variation in the numbers of livestock arising from sales. However, as
4.5 SOURCE OF HOUSEHOLD INCOME
4.5 SOURCE OF HOUSEHOLD INCOME
An examination of the prices per unit of item purchased show that the fertilizer prices reported
An examination of the prices per unit of item purchased show that the fertilizer prices reported
Table 9 Cash Expenditure by Item or Commodity
Table 9 Cash Expenditure by Item or Commodity
° Part of poverty has already been reported, not all of them were engaged in selling their maize due to high prices.
° Part of poverty has already been reported, not all of them were engaged in selling their maize due to high prices.
4.8 KEY INFORMANT AND CONSUMER IMPRESSIONS
4.8 KEY INFORMANT AND CONSUMER IMPRESSIONS
same extent if the prices were maintained.
same extent if the prices were maintained.
A2. 1 Land Allocation by Crop
A2. 1 Land Allocation by Crop
Quantity in kgs for major crop
Quantity in kgs for major crop
Quantity of major crop sold in kg
Quantity of major crop sold in kg
Total income (MK)
Total income (MK)
A2. 7 Price per Unit (MK)
A2. 7 Price per Unit (MK)
Figure 1 Conceptual framework on influencing staple food consumption
Figure 1 Conceptual framework on influencing staple food consumption
Figure 2. Location of Dodoma and Ruvuma
Figure 2. Location of Dodoma and Ruvuma
Table 1. The composition of respondents by location and total sample sizes Data from consumers were collected from Dodoma and Songea*! Municipalities respectively. Snowball approach was used to select 31 respondents from each municipality who provided data on prices from the consumption side of food pricing. Table 1 shows the composition of respondents by location and total sample sizes.
Table 1. The composition of respondents by location and total sample sizes Data from consumers were collected from Dodoma and Songea*! Municipalities respectively. Snowball approach was used to select 31 respondents from each municipality who provided data on prices from the consumption side of food pricing. Table 1 shows the composition of respondents by location and total sample sizes.
Due to the role of cattle as banks in the hoofs in most semi-arid areas, the proportion of respondents owning cattle is higher at Chigongwe than Mgazini village. Since ownership of assets reflects the wellbeing of the society, the main reflection which can be made from this finding is that income realized by producers at Mgazini village higher that proportion invested is also higher than their counterparts in Chigongwe village in Dodoma region. The higher the priced of food crops the higher the income so as investment in physical and social assets. Most significant difference (4=0.1) is reflected in ownership of cows, goats, pigs, hand hoes, radio, mobile phones and beds.
Due to the role of cattle as banks in the hoofs in most semi-arid areas, the proportion of respondents owning cattle is higher at Chigongwe than Mgazini village. Since ownership of assets reflects the wellbeing of the society, the main reflection which can be made from this finding is that income realized by producers at Mgazini village higher that proportion invested is also higher than their counterparts in Chigongwe village in Dodoma region. The higher the priced of food crops the higher the income so as investment in physical and social assets. Most significant difference (4=0.1) is reflected in ownership of cows, goats, pigs, hand hoes, radio, mobile phones and beds.
Analysis to reflect the reasons for eating cereals (Maize and rice) varied across the study regions. Taste and tradition was important reasons for eating rice among respondents at Songea town as reported by 53% and 27% of the respondents respectively. Consuming because it is the traditional food was recorded almost equally by the respondents in all towns whereas high price and limited availability were relatively the important reasons that limit consumption of both maize and rice among consumers in Dodoma region (Table 5). Based on the marketing systems for these two staples, it’s due to low purchasing power which limits their consumption in Dodoma municipality than otherwise. Table 4. Cereal consumption characteristics
Analysis to reflect the reasons for eating cereals (Maize and rice) varied across the study regions. Taste and tradition was important reasons for eating rice among respondents at Songea town as reported by 53% and 27% of the respondents respectively. Consuming because it is the traditional food was recorded almost equally by the respondents in all towns whereas high price and limited availability were relatively the important reasons that limit consumption of both maize and rice among consumers in Dodoma region (Table 5). Based on the marketing systems for these two staples, it’s due to low purchasing power which limits their consumption in Dodoma municipality than otherwise. Table 4. Cereal consumption characteristics
Table 5. Reasons for eating maize and rice as main staple
Table 5. Reasons for eating maize and rice as main staple
It should be noted that although rice and sweet potato are important crops consumed in the study areas (see Table 2), but are not produced within the areas thus must be purchased from other regions in the country or imported from abroad. I _ Oo oe In order to reflect consumption and production, ‘data on main crops produced in the study villages were collected and analyzed. Due to favorable climate in Ruvuma region, 16 foods crops were reported to be cultivated compared to only 7 crops in semi-arid Dodoma region. Overall analysis suggest that almost 93% percent of the respondents reported to cultivate maize, followed by ground nuts (45%), common beans (28%), pear millets (21%), simsim (19%) and sorghum (13%) (Table 6). Due to climate variability the importance differ across the study villages. Maize, common bean, simsim, finger millets, sunflower, and to some extent soya bean are important food crops in Mgazini village (Ruvuma) where as maize, groundnuts, pear millets, sorghum, bambara nuts and to some extent simisim in Chigongwe village.
It should be noted that although rice and sweet potato are important crops consumed in the study areas (see Table 2), but are not produced within the areas thus must be purchased from other regions in the country or imported from abroad. I _ Oo oe In order to reflect consumption and production, ‘data on main crops produced in the study villages were collected and analyzed. Due to favorable climate in Ruvuma region, 16 foods crops were reported to be cultivated compared to only 7 crops in semi-arid Dodoma region. Overall analysis suggest that almost 93% percent of the respondents reported to cultivate maize, followed by ground nuts (45%), common beans (28%), pear millets (21%), simsim (19%) and sorghum (13%) (Table 6). Due to climate variability the importance differ across the study villages. Maize, common bean, simsim, finger millets, sunflower, and to some extent soya bean are important food crops in Mgazini village (Ruvuma) where as maize, groundnuts, pear millets, sorghum, bambara nuts and to some extent simisim in Chigongwe village.
Table 7b: Area cultivated, quantity of crop sold and income obtained by gender for selected crops Table 8. Farm level production, productivity and income for Mgazini village
Table 7b: Area cultivated, quantity of crop sold and income obtained by gender for selected crops Table 8. Farm level production, productivity and income for Mgazini village
Figure 3. Maize - Area cultivate, total production and prices Songea rural district Sor region (Source Songea DALDO office reports, 2009) In addition to farm level productivity, this study sought to establish production trends for important staples based on time cereals data collected from reliable sources at the study regions. Analysis of the results as presented in Figure 3 and 4 shows that despite the fact that price of maize has been increasing tremendously over the past three years, area cultivated and total production have not been increasing accordingly. The hypothesis that price is a determinant factor in directing decision to invest in production does not hold. In situation like this, other reasons such as institutional, policy and infrastructural failures could be the main courses.
Figure 3. Maize - Area cultivate, total production and prices Songea rural district Sor region (Source Songea DALDO office reports, 2009) In addition to farm level productivity, this study sought to establish production trends for important staples based on time cereals data collected from reliable sources at the study regions. Analysis of the results as presented in Figure 3 and 4 shows that despite the fact that price of maize has been increasing tremendously over the past three years, area cultivated and total production have not been increasing accordingly. The hypothesis that price is a determinant factor in directing decision to invest in production does not hold. In situation like this, other reasons such as institutional, policy and infrastructural failures could be the main courses.
Figure 4. Maize — Quantity and price of maize brought at Kibaigwa market Dodoma (Kibaigwa market reports, 2008)
Figure 4. Maize — Quantity and price of maize brought at Kibaigwa market Dodoma (Kibaigwa market reports, 2008)
Table 9 presents main food crops consumed by respondents interviewed at Dodoma and Songea markets. Analysis show that more than 50% of the respondents reported to eat maize (95%), followed by rice (79%) common beans (54%) and sweet potato (52%). Other crops of significant importance include round potato (31%), cassava (29%), leafy vegetable and banana (22%).
Table 9 presents main food crops consumed by respondents interviewed at Dodoma and Songea markets. Analysis show that more than 50% of the respondents reported to eat maize (95%), followed by rice (79%) common beans (54%) and sweet potato (52%). Other crops of significant importance include round potato (31%), cassava (29%), leafy vegetable and banana (22%).
Due to the presence of different agro-ecological zones which is a unique characteristic for Tanzania, all these crops (especially maj jor staples except wheat) are produced in Tanzania in various intensities. In a year with good rainfall, yields are usually high that the country is self sufficient and able to export to neighboring countries such as Zambia, Kenya, Uganda and Comoro. However, due to government directives that crops for food security reasons, internal where one or two crops are not produced transport to deficit areas as regulated by distribution mainly through trade through free marketing systems Malawi, DR Congo hinder exportation of iS common in areas hat enable traders to market forces. In this context, al hough crops such as rice and round potato are not produced in all study districts, their consumption continues albeit at higher price due to high by transportation cost.
Due to the presence of different agro-ecological zones which is a unique characteristic for Tanzania, all these crops (especially maj jor staples except wheat) are produced in Tanzania in various intensities. In a year with good rainfall, yields are usually high that the country is self sufficient and able to export to neighboring countries such as Zambia, Kenya, Uganda and Comoro. However, due to government directives that crops for food security reasons, internal where one or two crops are not produced transport to deficit areas as regulated by distribution mainly through trade through free marketing systems Malawi, DR Congo hinder exportation of iS common in areas hat enable traders to market forces. In this context, al hough crops such as rice and round potato are not produced in all study districts, their consumption continues albeit at higher price due to high by transportation cost.
(OTE: © Three markets sampled are: Majengo, Miembeni and Chamwino. * Two markets sampled are: SODECO and Soko kuu. 5.4.2. Market price for major food crops and consumers indication for willingness to pay Since main market of staple produced in the country is within the country, our study intended to establish historical market prices of selected food crops produced and consumed in Tanzania at Dodoma and Songea towns. In Table 10 we have presented consumers reflection on prices of important foods crop from 2006 and 2008. In addition, consumers were asked to tell the prices which they are currently willing to pay.
(OTE: © Three markets sampled are: Majengo, Miembeni and Chamwino. * Two markets sampled are: SODECO and Soko kuu. 5.4.2. Market price for major food crops and consumers indication for willingness to pay Since main market of staple produced in the country is within the country, our study intended to establish historical market prices of selected food crops produced and consumed in Tanzania at Dodoma and Songea towns. In Table 10 we have presented consumers reflection on prices of important foods crop from 2006 and 2008. In addition, consumers were asked to tell the prices which they are currently willing to pay.
5.4.3. Price trends at main consumer markets
5.4.3. Price trends at main consumer markets
reasons. Figure 7. Bean priced trends 5.4.4. Income generation pattern by producer SS ae See ee SE es eee ee eee ge I ee ae Table 3 presented income generated from sale of major crops produced in sample villages. From the table it was apparent that income from sale of staple crops is very minimal especially in traditional-food-deficit regions like the Dodoma region where major proportion of the produce is consumed by household members. On the other hand income from sale of maize is very high at Mgazini village apparently a food surplus village. Table 11 presents a list of other sources of income from the two study regions. Income from petty business and sale of chicken although not very important monetary value but was reported by many respondent. For example, almost 30% and 22% of the producers obtain income from petty trading and sale of chicken respectively. Other most important sources in Chigongwe village in terms of number of people engaged include sale of charcoal (20%), hiring out labor (18%), sale of cow/goats and its by-products (10%) and local brewing (10%). In Ruvuma region other sources of income comes from sale of pigs (23%), goats (17%) and sale of bucks (11%).
reasons. Figure 7. Bean priced trends 5.4.4. Income generation pattern by producer SS ae See ee SE es eee ee eee ge I ee ae Table 3 presented income generated from sale of major crops produced in sample villages. From the table it was apparent that income from sale of staple crops is very minimal especially in traditional-food-deficit regions like the Dodoma region where major proportion of the produce is consumed by household members. On the other hand income from sale of maize is very high at Mgazini village apparently a food surplus village. Table 11 presents a list of other sources of income from the two study regions. Income from petty business and sale of chicken although not very important monetary value but was reported by many respondent. For example, almost 30% and 22% of the producers obtain income from petty trading and sale of chicken respectively. Other most important sources in Chigongwe village in terms of number of people engaged include sale of charcoal (20%), hiring out labor (18%), sale of cow/goats and its by-products (10%) and local brewing (10%). In Ruvuma region other sources of income comes from sale of pigs (23%), goats (17%) and sale of bucks (11%).
Discussing Table 11 together with Table 3, it is apparent that non-crop income sources are relatively lower and/or are effective to relatively small segment of the population. From this realization, it is now agreeable that income shortage can be reduced through sale of both staple and non-staple crops. The observed increase in prices may decline if it is coupled with increase in production and productivity and higher income for the farmers.
Discussing Table 11 together with Table 3, it is apparent that non-crop income sources are relatively lower and/or are effective to relatively small segment of the population. From this realization, it is now agreeable that income shortage can be reduced through sale of both staple and non-staple crops. The observed increase in prices may decline if it is coupled with increase in production and productivity and higher income for the farmers.
Ce Table 12 and 13 present results of the analysis of expenditure of their income generated from sale of their produce on consumption and investment respectively. You will recall that farmers in food deficit Chigongwe village in Dodoma generate income from sale of groundnuts, charcoal, hiring out labor and sale of livestock and related products. On the other hand respondents in Mgazini village depend on sale of maize and to some extent livestock mainly pigs, goats and chicken. Expenditure on welfare (consumption) was compared between the two study villages on food, clothes, household items, health, school fees, transport, traditional rituals and ceremonies and support to relatives (Table 12). Expenditure on food accounted for 35% of the total income apportioned for welfare in Chigongwe village. Other major expenditure includes school fees (21%), and clothes (11%). At Mgazini village expenditure pattern on welfare is slightly different from that at Mgazini village. Expenditure on food accounts for only 6% of the total income on welfare. This is mainly due to the fact that the village is surplus producer of maize which is the main staple. Main expenditure is on school fees (31%), clothes (11%), traveling (14%) and rituals and ceremonies (14%).
Ce Table 12 and 13 present results of the analysis of expenditure of their income generated from sale of their produce on consumption and investment respectively. You will recall that farmers in food deficit Chigongwe village in Dodoma generate income from sale of groundnuts, charcoal, hiring out labor and sale of livestock and related products. On the other hand respondents in Mgazini village depend on sale of maize and to some extent livestock mainly pigs, goats and chicken. Expenditure on welfare (consumption) was compared between the two study villages on food, clothes, household items, health, school fees, transport, traditional rituals and ceremonies and support to relatives (Table 12). Expenditure on food accounted for 35% of the total income apportioned for welfare in Chigongwe village. Other major expenditure includes school fees (21%), and clothes (11%). At Mgazini village expenditure pattern on welfare is slightly different from that at Mgazini village. Expenditure on food accounts for only 6% of the total income on welfare. This is mainly due to the fact that the village is surplus producer of maize which is the main staple. Main expenditure is on school fees (31%), clothes (11%), traveling (14%) and rituals and ceremonies (14%).
As narrated in section 3 of this report where economic theory is presented, the income received by any household is either consumed and/or saved. From macroeconomics point of view, saving is equal to investment. Analysis of investment decisions of the farmers in the two study villages is presented in Table 12. Comparatively farmers in Mgazini villages portion much of their income on investment spending than those at Chigongwe village. Majority invest in agriculture such as buying seed, fertilizer, hiring farm labor, and on farm equipments. At Chigongwe villages, very few farmers reported to make investments agriculture except on purchase of farm tools and equipment (Table 13).
As narrated in section 3 of this report where economic theory is presented, the income received by any household is either consumed and/or saved. From macroeconomics point of view, saving is equal to investment. Analysis of investment decisions of the farmers in the two study villages is presented in Table 12. Comparatively farmers in Mgazini villages portion much of their income on investment spending than those at Chigongwe village. Majority invest in agriculture such as buying seed, fertilizer, hiring farm labor, and on farm equipments. At Chigongwe villages, very few farmers reported to make investments agriculture except on purchase of farm tools and equipment (Table 13).
Table 13. Expenditure on investment
Table 13. Expenditure on investment
Figure 8 present a proposition income used for consumption and investment in the study area Overall, the 76% total income generated is used for consumption and only 24% is invested i development ventures. Analysis across the study villages indicated a very skewed proportion While almost all income (98%) generated by farmers at Chigongwe village is consumed, onh 67% of the total income at Mgazini village is consumed (Figure 8). Based on economic principl which believes that income is equal to consumption and saving. And since saving is equal t investment, then farmers in Chigonwe village have negligible power to save hence they have : negligible capacity of investment. The situation is aggrieved more by an increase in food price thus they have to use more of their little income to buy food within the declining income fron sale of crops due low production hence are not benefiting from increasing food prices. This is ; double barreled tragedy. In this context farmers’ residing in low potential food deficit areas ar main losers in a situation of increasing food prices. Figure 8. Proportion of expenditure on consumption and investment
Figure 8 present a proposition income used for consumption and investment in the study area Overall, the 76% total income generated is used for consumption and only 24% is invested i development ventures. Analysis across the study villages indicated a very skewed proportion While almost all income (98%) generated by farmers at Chigongwe village is consumed, onh 67% of the total income at Mgazini village is consumed (Figure 8). Based on economic principl which believes that income is equal to consumption and saving. And since saving is equal t investment, then farmers in Chigonwe village have negligible power to save hence they have : negligible capacity of investment. The situation is aggrieved more by an increase in food price thus they have to use more of their little income to buy food within the declining income fron sale of crops due low production hence are not benefiting from increasing food prices. This is ; double barreled tragedy. In this context farmers’ residing in low potential food deficit areas ar main losers in a situation of increasing food prices. Figure 8. Proportion of expenditure on consumption and investment
1. Household characteristics
1. Household characteristics
2. Asset endowments of the household
2. Asset endowments of the household
3.0 Which crops do you consume most? WET SEASON
3.0 Which crops do you consume most? WET SEASON