1. Trade in Agriculture in the EAC: Implications on Food Security and Rural Livelihood in Tanzania Monica A. Hangi Economic and Social Research Foundation (ESRF) 1

3. Examining the relationship between Regional Trade in Agriculture and Food Security and Rural Livelihood in Tanzania.2

5. Agriculture in Tanzania is dominated by smallholder farmers (farm sizes between 0.9 to 3.2 hectares)

6. By 2008, agricultural economic activities grew by 4.6 percent (compared to 4.0 percent in 2007)

7. In 2007/08, production of the main produced food crop (Maize) increased by 7.66 percent; and the main cash crop (Cotton) increased by 53.7 percent3

9. However, Tanzania’s share of Intra EAC imports declined by 13.4 percent in 2007 and further by 20084

11. Tanzania share of exports to EAC increased to USD 315.5 mill in 2008, compared to USD 172.8 mill in 2007 – which is an increase of approximately 82.6 percent

12. 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)5

14. The strong agricultural trade ties between TZ and Kenya are due to the poor transport infrastructure in Tanzania

15. Maize, Rice and Beans are the main staple foods traded between the two countries

16. From TZ, Kenya imports: Maize, Beans, Fish, Rice, Root Crops, Sugar, Fruits and Vegetables

17. From Kenya, TZ imports: Wheat flour and Sugar6

19. Main staple foods traded between the two countries are Rice, Beans and Bananas

20. From TZ, Uganda imports Rice and Bananas (though this direction can reverse depending on the season)

21. From Uganda, TZ imports mainly Rice (and it remains the main traded commodity between the two countries – though informally)7

22. Main Agricultural trade flows in the EAC region 8

24. 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 24.5 percent from rural population9

25. Current estimated food security conditions in Tanzania 10

27. Allows consumption of good which at times are not produced within the borders

28. Creation of employment – affording consumption11

30. 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

31. Reasons for informal trade in EAC includes: road blocks and presence of rigid, time consuming bureaucratic procedures12

33. 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;

34. Forest resources; charcoal and timber; and

35. Water resources, which included all kinds of fish species and prawns.13

37. Environmental and Ecological reasons: environmental degradation; natural hazards; high dependency in rain; poor storage and food handling methods.

38. Infrastructural problems14

40. 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.15

43. 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 17

45. The “Accelerated Food Security in Tanzania” Project – The GoT has requested funds from the World Bank;

46. Recent ‘Kilimo Kwanza’ (Agriculture First) resolution / initiative. ETC18

48. Cross-border trade (especially on agricultural products) within EAC has proved to improve the conditions of food production and food availability in member countries.

49. 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. 19