Smallholder farmers in low income countries are vulnerable to commodity
price fluctuations that impact heavily on their expected earnings necessary to
improve household income and fight abject poverty.
The segment of smallholder farmers in Tanzania, who are the dominant
leaders in the sector as a whole, support average farm sizes of between 0.9 and
three hectares, cultivating 5.1 million hectares annually, 85 per cent on which
they grow food crops.
Currently, the private sector has absorbed much of the responsibility
for the production and processing functions, but some greedy individuals misuse
the opportunity by interfering the pricing process of farmers’ produce,
affecting their earnings.
Middlemen competition syndrome is mentioned to have impacted negatively
on farmers’ earnings through low prices that hardly reflect the real market
value of the agro-products. According to Tanzania Exporters Association
(TANEXA) Executive Director, Laurence Naluyaga, who was speaking at a
consultative workshop for enhancing food security in Eastern Africa:
“Cooperative Societies and farmers unions in most regions were lacking
powers to intervene on matters related to prices of agrocommodities thus making
farmers earnings never reflect of the cost of production.”
He said the middlemen have established an artificial fencing in some
regions with high food productivity to protect their interests and ensuring
that there is no interference on the pricing already set to serve their profit
making motives.
“Some business persons (middlemen) have been inflating prices for food
commodities after learning that other traders are wishing to deal directly with
farmers,” he said.
He cited a typical case of Singida region where greedy traders have
been controlling and determining the prices for sunflower, offering farmers very
little while denying other business persons to enter the market.
To ensure fair trade prevails for the benefits of both farmers and
whole business community including local exporters, Mr Laurence called for an
urgent need for the government to address the shortcomings for a win-win
situation.
He said the government should further establish price strategy that
could make farmers and exporters enjoy the benefits accrued from engagement on
farming activities.
“Our food prices are high and continue to volatile because of lacking
proper system to gather and dispatch information on the volume of production
and the available markets in the country and across the region,” said Dr
Michael Waithaka at the consultative workshop.
Dr Waithaka from the Association of Strengthening Agricultural Research
in Eastern and Central Africa (ASARECA), called for the need for government
interventions to ensure the smooth flow of agro products from production point
to the markets.
He said the ASARECA will be providing necessary information on the
availability of agro products, particularly food for the government to take
informed decisions instead of banning exports.
Similarly, export ban of food
products has been highlighted as one of the major factors that led to increased
consumer price and costs of doing business coupled by bribes, documentation and
time loss at check points.
This was said by Mr Festo Maro from the Association of Strengthening
Agricultural Research in Eastern and Central Africa (ASARECA), while presenting
a paper on Food Price Analysis: Implication to Food Security in Tanzania.
Various studies done on export ban imposed by the government a couple
of years ago on cereal crops have revealed that the practice discourages
investors in the agriculture sector while at the same time increasing poverty.
He said a feasible policy option is to go away with export bans as
markets will adjust for surplus and deficit areas. In his opening remarks, Dr
Francis Mwaijande, the Principal Investigator at the Economic and Social
Research Foundation (ESRF), said any policy measures ought to affect food price
and trade like export ban has great implications on welfare of the people
involved.
“Policy decisions that affect price and its relation to production
behaviour in agriculture is very complex and to a large extent results into
growth that is either inclusive or exclusive,” he said.
He said price is important income determinant for over 80 per cent of
farming communities in the country and entire food chain economic agents. The
project funded by the World Bank through the ASARECA and carried in five
countries of Tanzania, Rwanda, Uganda, Ethiopia and Kenya is designed to
adequately attain the overall goal to enhance food security in the region.
It started in February, this year and will be completed in December,
3013. The project will provide an in-depth analysis of price trends and
transmission within the region in monthly and quarterly basis.
“Project
researchers in these countries then will enhance early warning and policy
response mechanism to mitigate the consequences of food insecurity,” he added.
Dr Mwaijande said the project will add value to the government
initiatives like the Comprehensive African Agriculture Development Programme
(CAADP) and the Southern Agriculture Growth Corridor of Tanzania (SAGCOT).
ASARECA’s Manager, Policy Analysis & Advocacy Programme Dr Michael
Waithaka said the organization is expected to provide forecasting of food
prices to countries to make informed decision that will never affect farmers or
markets.
ASARECA is a sub-regional not-for-profit association consisting of 10
member countries including Burundi, Democratic Republic of Congo (DRC),
Eritrea, Ethiopia, Kenya, Madagascar, Rwanda, Sudan, Tanzania, and Uganda.
As a not for profit association, ASARECA aims to enhance regional
collective action in agricultural research for development, extension and
agricultural training and education to promote economic growth, fight poverty,
eradicate hunger and enhance sustainable use of resources in the region.
Source: The Daily News,http://www.dailynews.co.tz, reported by Sebastian Mrindoko in Dar es Salaam
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