Agriculture and The Challenge to Reduce Poverty in East Africa

The three East African (EA) countries Tanzania, Kenya and Uganda have a population of about 95 million people and Gross Domestic Product (GDP) of USD 34.2 billion. In recent years efforts has been made among the three East African countries, towards forging economic and regional co-operation by establishing the East African Community (EAC). The premise for economic and regional co-operation has been underpinned for the need for a common market and boost regional trade. The ultimate goal of these efforts is to achieve one of the international development objectives of increasing growth to 7% a year that is required to reduce income poverty. One of the challenges that East African countries need to tackle in the face of globalisation is the ability to participate in international markets. East African countries have to make serious consideration with regards to changing the composition of their exports away from primary products to manufactured exports. Value addition to both agricultural and industrial products is vital to improving the EA economies. This paper examines the composition of East Africa’s economic structure. The aim is to analyse how the economic structure has changed over time, and to assess whether or not East African countries have transformed their agricultural sectors, and what the impact has been on poverty reduction in these economies.Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, Land Economics/Use, Marketing, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,

Coconut Productivity and the Status of Improved Agricultural Technologies at Small-Scale Level in Tanzania: Country Experience after National Coconut Development Program

In the mid-seventies, there was a steady decline of coconut production in Tanzania hence the government established the National Coconut Development Programme (NCDP) from 1979-2004 aimed at promoting of coconut sub-sector industry in Tanzania. However, since then there is little information on coconut production and productivity in the country and less is known on the status of improved agricultural technologies. This paper therefore, investigates the current production and productivity of coconut at small-scale level and the status of improved agricultural technologies (IATs). Primary data were solicited by interviewing 150 farm households, focus group discussion which involved 68 members and key informants which involved 30 people. Results indicate that coconut production in terms of nuts/year in Tanzania decreased at a rate of 2.2% per annum while at other end of the spectrum yield in terms of nuts/ha decreased at a rate of 0.5% per annum. Furthermore, only 22% of the small-scale farmers applied improved technologies for coconut production while rest (78%) of the farmers practiced conventional methods. Decreasing of production and productivity in the study areas is associated with low use of improved technologies and poor extension services. Promotion of coconut research and development (R&D) activities, extension services and dissemination of improved technologies are recommended by this study. Keywords: Coconut Production, Productivity, Small-Scale Level, Improved Technologies, Tanzani

Labour Productivity Performance of Small Agro-Processing Firms in Mbeya and Morogoro, Tanzania

This paper examines human capital factors affecting labour productivity in small agro-processing firms. Labour productivity is a measure of a firm’s efficiency that is affected by different factors, among them includes human capital factors represented by education, experience, and training. A survey of 107 agro-processing firms was conducted in Mbeya and Morogoro Regions, Tanzania. Descriptive statistics and regression analysis was employed in estimating the effect of factors on labour productivity. Results show that the trend of labour productivity among different types of small agro-processing firms varies.  Animal feed, cooking oil and milling firms tend to have higher labour productivity than bakeries and milk processing firms. Moreover, the experience of workers, education of managers and female managers has a positive effect on labour productivity in small agro-processing firms. Contrary to expectations, the number of workers with education above standard seven has a negative effect on labour productivity. Through these findings the study recommends investment in physical and human capital factors for the growth of labour productivity and employment creation. Key words: Labour productivity, Small Agro-processing firms, Tanzani

WHY TRANSACTION COSTS IMPEDE SMALLHOLDER FARMERS’ PARTICIPATION INTO EXPORT ORGANIC MARKETS

Abstracts There have been growing trends of exports from countries dominated by smallholder agriculture to many of developed world (Kledal and Kwai, 2010). This shows that smallholders’ farmers development perspectives have gained interests in global markets and Value chain Approaches. However, apart from standard constraints in economics that impede participation of smallholder farmers in value chains at production and marketing, transaction costs do also constrain smallholder farmers in participating in value chains. To understand transaction costs effects on smallholder farmers’ participation in global value chains a study on governance of global value chains for organic ginger exports was conducted in Tanzania. The study employed a case study method, using transaction cost theory in a value chain approach. General characteristics that describe the smallholder farmers (such as small acreage size, proximities to and status of markets infrastructures, the levels of dependence on agriculture farming, household business structure) and the institutions they operate in were found to be the main reasons for high transaction cost proxies, hence the main reason for failure of smallholders to participate in global markets. This is because they cause high frequency of transaction, high asset specificity, high uncertainty, opportunism and bounded rationality. When developing global value chain these characteristics of Smallholders should be taken care of apart from the other measures that describe the trading between countries and those which determines production and productivity

Urbanization and transformation of agri-food system: Opportunities for organic producers in developing countries

Developing countries especially in Sub-Saharan Africa are pronominally agricultural based. Where the majority of the population resides in rural areas and engaged in agriculture as a source of livelihood. However, recently there has been a growing debate globally on rapid urban population growth in developing countries. The aim of this paper is to present opportunities for organic producers emanating from transformations of agri-food systems in urban area. The paper is based on research activities of a project ‘Productivity and Growth in Organic Value Chains (ProGrOV)’. ProGrOV is collaboration between universities in Uganda, Kenya, Tanzania and Denmark addressing the need for sustainable development of smallholder farming systems in East Africa with focus on value chains for local high-value markets as well as export chains. The project addresses innovations for improving production as well as market access. The transformations of agri-food systems addressed in this paper resulting from urbanization are evidenced by proliferation of supermarkets, specialized organic-food shops, food supply to tourist industry and traditional farmer markets. Efforts for promoting organic products in East Africa have traditionally focused on export markets this paper based on evidence from ProGrOV studies argue that there is opportunity for developing domestic organic product value chains to meet the demand from urban population growth and transformed agri-food systems