Effects of food safety standards on the livelihoods of actors in the nile perch value chain in Tanzania

DII working paper no.2007/24Exports of non-traditional products from developing to developed countries have increased rapidly over the past two decades. However, one of the major challenges facing developing countries in seeking to maintain and expand their share of global markets is stringent food-safety requirements in industrialized countries. The effects of compliance with these requirements and their distributional impacts among actors in developing countries are generally not well known. Based on this understanding, a study was conducted on the Tanzanian side of Lake Victoria (in Mwanza and Mara regions) to evaluate the effects of food-safety standards on the livelihoods of actors in the Nile perch value chain using the Livelihoods Analysis and Change in Net Income (CNI) approach. The effects of food-safety standards were imputed as the residual values be- tween the “with” and “without” compliance scenarios for a specified actor category. The results of the analysis showed that the livelihood platform and income portfolios for the “with”-compliance scenario was relatively more favourable than that in the alternative, “without”- compliance scenario. The difference in human capital and livestock holdings between fishers / crews in the two scenarios was however non-significant (P<0.05). The results of the analysis also showed that both the costs and benefits of compliance with food-safety standards were consider- able. Actors in the Nile perch export supply chain (the “with”-compliance scenario) obtained the highest gross revenues and net returns, as well as incurring the highest operating costs. However, the profit margins, assets and income portfolios for most actors upstream of the fishery value chains were generally lower in both the “with” and “without” compliance scenarios than those of the actors in the subsequent stages. The overall analysis of issues in this paper suggests the need to ensure more effective and coherent planning in order to safeguard the future of the fishery sector, ensure an appropriate regulatory framework, strengthen the capacity of the stakeholders to manage the resource sustainably, develop safeguards for ensuring an equitable distribution of fishery benefits, and increase collaboration among the riparian states of Lake Victoria between them and development partners

Effects of food safety standards on the livelihoods of actors in the nile perch value chain in Tanzania

DII working paper no.2007/24Exports of non-traditional products from developing to developed countries have increased rapidly over the past two decades. However, one of the major challenges facing developing countries in seeking to maintain and expand their share of global markets is stringent food-safety requirements in industrialized countries. The effects of compliance with these requirements and their distributional impacts among actors in developing countries are generally not well known. Based on this understanding, a study was conducted on the Tanzanian side of Lake Victoria (in Mwanza and Mara regions) to evaluate the effects of food-safety standards on the livelihoods of actors in the Nile perch value chain using the Livelihoods Analysis and Change in Net Income (CNI) approach. The effects of food-safety standards were imputed as the residual values be- tween the “with” and “without” compliance scenarios for a specified actor category. The results of the analysis showed that the livelihood platform and income portfolios for the “with”-compliance scenario was relatively more favourable than that in the alternative, “without”- compliance scenario. The difference in human capital and livestock holdings between fishers / crews in the two scenarios was however non-significant (P<0.05). The results of the analysis also showed that both the costs and benefits of compliance with food-safety standards were consider- able. Actors in the Nile perch export supply chain (the “with”-compliance scenario) obtained the highest gross revenues and net returns, as well as incurring the highest operating costs. However, the profit margins, assets and income portfolios for most actors upstream of the fishery value chains were generally lower in both the “with” and “without” compliance scenarios than those of the actors in the subsequent stages. The overall analysis of issues in this paper suggests the need to ensure more effective and coherent planning in order to safeguard the future of the fishery sector, ensure an appropriate regulatory framework, strengthen the capacity of the stakeholders to manage the resource sustainably, develop safeguards for ensuring an equitable distribution of fishery benefits, and increase collaboration among the riparian states of Lake Victoria between them and development partners

Water for irrigation or hydropower generation?--Complex questions regarding water allocation in Tanzania

The need for achieving efficient, equitable and sustainable use of water resources to meet water demands of different sectors is pressing, particularly in areas where water resources are dwindling. Along with this is the quest for having a good understanding of the value of water in its different uses. Using a simplified model derived from the residual imputation approach (the Change in Net Income Model) we assess the value of water in irrigated paddy and hydropower generation in the Great Ruaha River Catchment (GRRC) in Tanzania. The estimated productivity of water (PW) in irrigated paddy ranges from 0.059 to 0.250 kg/m3 (for withdrawn water) and 0.126 to 0.265 kg/m3 (for consumed water). The PW in hydropower generation is estimated to range from 0.45 to 1.68 kWh/m3. In monetary terms the value of water in irrigated paddy is estimated at 15.3 Tanzanian shilling (Tsh)/m3 (for water withdrawn) and 0.19 tsh/m3 (for water consumed). The values of water for hydropower generation are relatively higher than for irrigated paddy, ranging from 59 to 226 tsh/m3. Yet, irrigated paddy also supports livelihoods of about 30,000 agrarian families in the GRRC, with gross revenue of about Tsh 15.9 million per annum and GRCC paddy contributes about 14-24% of national rice production. We conclude that understanding the value of water in its alternative uses is key to fostering informed debate on water management and allocation, identifying the basis for making 'agreeable' trade-offs, the potential for improvement and creating linkages with water allocation options particularly in agricultural-based economies, where agriculture competes with other sectors and where water re-allocation decisions may involve large transfers of water from the sector generating the highest pro-poor returns (agriculture for this case) to the sectors generating the highest economic returns (hydropower generation and industrial uses).

Identification of appropriate indicators for assessing sustainability of small-holder milk production systems in Tanzania

Improving the economic, social and environmental sustainability of milk production in Tanzania requires relevant indicators to monitor its progress. There is no existing set of indicators to assess sustainability of smallholder dairy farming systems in Tanzania. This study was carried out to identify relevant indicators for assessing sustainability of smallholder dairy and traditional cattle milk production farms in Tanzania. In four districts, selected based on their potential in milk production, within two regions of Tanzania, a two-round Delphi approach involving 44 diverse experts and stakeholders was used. An “initial set” of 57 indicators was selected based on their relevance to the study context and measurability using literature review as well as discussions with experts and stakeholders. Then, the ‘initial set’ was refined to a final set of 29. The final set includes 18 indicators on economic, 4 on social and 7 on environment pillars. The key economic indicators were milk hygiene and cow productivity; social indicators were participation in organizations and women’s empowerment; environmental indicators were access to water and water conservation. The study showed that a large number of existing indicators might not be relevant in the context of Tanzania’s smallholder dairy and traditional cattle systems. The indicators identified here demonstrate the importance of matching any set of indicators to the characteristics and realities of the specific production system being examined. These indicators should help farmers and other stakeholders to monitor farm sustainability and guide decision makers to make appropriate policies for Tanzania