1. Panel 9: Building Food Security Thursday, April 20 th (12:45-1:45pm) 13 th Symposium on Development and Social Transformation

2. Agricultural Transformation: Tanzania’s Next Step Alba Struga Panel 9: Building Food Security 13th Symposium on Development and Social Transformation

3. Tanzania: The Expanding Agricultural Market Alba Struga

4. Presentation Overview Role of agriculture in Tanzania ’ s economy Constraints to agricultural development Case studies Maize Cashews Flowers Suggestions to improve agriculture

5. Agriculture in Tanzania Accounts for 47% of GDP Employs 75% of active labor force Contributes to 51% of foreign exchange Agricultural growth ~ 3.5% Population growth ~ 2.8%

6. Constraints to Agricultural Growth Low production, productivity and quality Problems with infrastructure Lack of access to support services Lack of irrigated agriculture Government constraints Lack of agro-processing industries

7. Some Definitions Traditional export crops Coffee, cotton, tobacco, sisal, cashew Non-traditional export crops Fruits, vegetables and flowers Cash value crops Coffee, sugar cane, tea, cashew Food crops maize

8. Maize Production Principal staple food crop Grown in 44% of food crop land National growth 1958-1998 2.4% per year, 0. 3% less than population growth The last five years show a deficit in maize

9. Constraints to Maize Production Lack of credit facilities Insufficient and inadequate inputs Lack of storage facilities Lack of collaboration among farmers Lack of government support Not enough resources to visit all small farmers High transaction costs Unfavorable trade policies for small exporters

10. Cashew Production Source of income for 250,000 small farmers Grows on poor soil Tolerates drought conditions 28% of global raw nut exports in 1990-1998 Export earnings rose from $ 4 millions in 199 0 to $107 million in 1998

11. Constraints to Cashew Production Deterioration of export quality Increasing production costs Small number of buyers (India) Emergence of new competitors (Vietnam) Lack of domestic processing Institutional constraints High local and national taxes The Cashew Board of Tanzania

12. Flower Seed Production Flower seed production is replacing coff ee production in northern Tanzania 300 coffee growers switched to flowers Easy to grow Could be harvested twice a year No artificial fertilizers

13. Constraints to Flower Seeds Other major competitors (Kenya) Balancing between cash and food cro ps Land scarcity

14. Suggestions Improvements in access to markets Improvements in transportation infrastructure Better access to inputs & credit Diversification toward non-traditional export pro ducts (vegetables, flowers and fruits) Vertical integration into processing industry Organization of small farmers Trade policy and regulatory environment

15. Policy And Action Towards Food Security In Tanzania James Abraham Panel 9: Building Food Security 13th Symposium on Development and Social Transformation

16. James Abraham Food Security in Tanzania Policy & Sustainability

18. 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

19. 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

20. IPS – Example Markets

21. Problems 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.

22. The Agricultural Sector Of Argentina Michael Anthony Lagiglia Panel 9: Building Food Security 13th Symposium on Development and Social Transformation

23. Argentina’s Agricultural Sector

24. 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.

25. Relative size in grain exports

26. Argentina Gross Domestic Product Growth by Sector, 1997 - 2005

28. 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

29. Growing regions

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

31. U.S. Relationship

33. 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 ?

34. FTAA welfare effects

35. Negative Outlook Poor infrastructure  Truck transportation subject to oil-price risk Domestic storage capacity shortfalls Inadequate credit system Commodity prices? Climate change?

36. Questions?

37. 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 on Development and Social Transformation