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Cassava chain in Tanzania

Anna Mwambuzi, cassava producer

Sustainable livelihood analysis and chain analysis

Mkuranga District

Raymond Mnenwa P.O. Box 68125 Boko, Dar es Salaam, Tanzania Tel No.: (255) 744-584044 Email: krmnenwa@yahoo.com On order of VECO Tanzania

January 2009

ABOUT THE AUTHOR Raymond Mnenwa prepared this report. Raymond Mnenwa is a Senior Agricultural Economist experienced in research, business development, trade and marketing. Mr. Mnenwa obtained an MSc in Agricultural Economics from the University of Reading (UK) in 1994. He has long experience in research. For three years, (1999-2001) Mnenwa was involved in the Milk Marketing and Public Health Research Project. This was a collaborative research project between the Sokoine University of Agriculture (SUA) and the International Livestock Research Institute (ILRI) based in Nairobi. For 5 years, i.e. from 2001 to 2005, he had been a Consultant for ACARDIS-EUROCONSULT as an Economist responsible for marketing and business promotion. ACARDIS EUROCONSULT was administering the Smallholder Dairy Support Programme (SDSP) in Tanzania from 2001 to 2005. Mr. Mnenwa is currently a PhD student at the SUA and Danish Institute for International Studies (DIIS). ABOUT VECO-TANZANIA VECO Tanzania is a country office of Vredeseilanden (VE), an international Belgian pluralistic development organization, which is aware of the potential of Tanzanian farmers in the society. VE wants to support organized family farmers, male and female, in Tanzania to improve their livelihood through food security and increase of income from sustainable agriculture chain development (SACD). In 2008, Vredeseilanden starts a new 6-year strategic plan with focus on development of sustainable agricultural chains. In its economic objective, VECO Tanzania wishes to support and facilitate establishment of agricultural commodity market chains (value chains) that favour Organized Family Farmers (OFFs) and empowers them to participate actively and profitably in the market transactions and relations they engage in.

ACKNOWLEDGEMENT The author wishes to recognize the contribution of (i) Festo Shibone and David Rwazo who assisted in the data collection and analysis; (ii) Mkuranga District officials for their considerable amount of help with the necessary information and views on various aspects of livelihood and chain development in the district; and (iii) cassava farmers, traders, processors and retailers; and (iv) the institutions who spared their time responding to the questions asked by the Study Team. Lastly, the consultant recognizes the support from Boukari Ayessaki who made the necessary logistical arrangements for the assignment.

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TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................ 3 O. EXECUTIVE SUMMARY........................................................................................................... 7 1. CHAPTER ONE: INTRODUCTION ..................................................................................... 12

1.1 1.2 1.3

BACKGROUND TO THE STUDY .............................................................12 OBJECTIVES OF THE STUDY ................................................................12 STRUCTURE OF THE REPORT ...............................................................13

2.

CHAPTER TWO: STUDY METHODOLOGY ........................................................................... 14

2.1 2.2

STUDY AREAS AND RESPONDENTS ......................................................14 STUDY CONCEPTUAL FRAMEWORK ......................................................15 2.2.1 2.2.2

2.3

3.

3.1 3.2 3.3

STUDY METHODOLOGIES ...................................................................16 2.3.1 Desk review.......................................................................................................16 2.3.2 Field work.........................................................................................................16 2.3.3 Data analysis......................................................................................................17 2.3.4 Work Plan ..........................................................................................................17 CHAPTER THREE: LIVELIHOODS ANALYSIS ..................................................................... 18

TANZANIA LIVELIHOOD CONTEXT– THE BIG PICTURE ............................18 MKURANGA DISTRICT CONTEXTS: A SOCIO-ECONOMIC PROFILE...............19 MKURANGA VULNERABILITY CONTEXTS...............................................20 3.3.1 3.3.2 3.3.3

3.4

Human Capital....................................................................................................29 Social capital .....................................................................................................34 Natural Capital ...................................................................................................35 Physical capital ..................................................................................................38 Social capital .....................................................................................................42 Financial capital .................................................................................................42 Policy, institutions and processes .........................................................................45

LIVELIHOOD STRATEGIES ..................................................................47 3.5.1 3.5.2 3.5.3

3.6

Trends...............................................................................................................20 Shocks ..............................................................................................................24 Seasonality ........................................................................................................27

LIVELIHOOD ASSETS.........................................................................29 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.4.6 3.4.7

3.5

Framework for Livelihood analysis .........................................................................15 Framework for cassava chain analysis.....................................................................16

Livelihood activities............................................................................................47 Non-farm activities .............................................................................................49 Sustainability of livelihood strategies ....................................................................50

LIVELIHOOD OUTCOMES....................................................................50

3.6.1 State of autonomy and psychological wellbeing ......................................................50 3.6.2 Degree of access to services, markets, institutions and information ...........................51 3.6.3 Degree of empowerment (being heard) ..................................................................51 3.6.4 Improved food security........................................................................................51 3.6.5 Income security..................................................................................................52 3.6.6 Literacy and access to education...........................................................................53 3.6.7 Reduced vulnerability ..........................................................................................54 3.6.8 Physical wellness, health, access to respectful, health care.......................................55 3.6.9 Social integration, cultural acceptance ..................................................................55 4. CHAPTER FOUR: CASSAVA CHAIN ANALYSIS.......................................................................... 56

4.1 CASSAVA CHAIN LOGIC AND POWER RELATIONS MAPPING.........................56

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4.2.1 4.2.2

4.3

Chain logic ........................................................................................................56 Power relations...................................................................................................58

ENABLING ENVIRONMENT .................................................................60 4.3.1 4.3.2 4.3.3

Policy framework ................................................................................................60 Legal framework .................................................................................................62 Organizational framework.....................................................................................63

4.4 BUSINESS DEVELOPMENT SERVICES ........................................................65 4.4.1 4.4.2

4.5 4.6

Assessment of needs for business development services ...........................................65 Assessment of the supply of business development services ......................................68

BOTTLENECKS, BARRIERS AND LEVERAGES ..........................................69 PRODUCTION RELATED ISSUES...........................................................71

4.6.1 Cassava farming systems in Mkuranga District .........................................................71 4.6.2 Resource utilization ............................................................................................72 4.6.3 Productivity .......................................................................................................74 5. CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS......................................................... 77

5.1 5.2

CONCLUSIONS .................................................................................77 RECOMMENDATION...........................................................................78

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LIST OF ABBREVIATIONS

AIDS AP ATM CBO CDTF CP CRS DALDO DSM ENVIROCARE FAO FGD Ha HIV IFAD IITA kg M&E MAFC MAFS MARTI MIT MUVEK NGO OFFs PhD PO-RALG PTF REDET SDSP SIDP SMEDP SUA TADENA TARP TASAF TAWLAE TBS TFDA TFNP TOR UK

Acquired Immuno Deficiency Syndrome Agricultural Policy Access to Markets Community-Based Organizations Community Development Trust Fund Cooperatives Policy Christian Relief Services District Agricultural and Livestock Development Officer Dar es Salaam Environmental, Human Rights Care and Gender Organization Food and Agriculture Organisation Focused Group Discussion Hectare Human Immuno Virus International Fund for Agriculture Development International Institute for Tropical Agriculture Kilogram Monitoring and Evaluation Ministry of Agriculture and Cooperatives Ministry of Agriculture and Food Security Ministry of Agriculture Research and Training Institute Ministry of Industry and Trade Commercial Organization providing consultancy services in development and marketing Non-governmental Organization Organized Family Farmers Doctor of Philosophy President’s Office, Regional Administration and Local Government Presidential Trust Fund for Self Reliance Research for Education and Democracy Tanzania Smallholder Dairy Support Programme Sustainable Industrial Development Policy Small and Medium Scale Enterprises Development Policy Sokoine University of Agriculture Tanzania Development Navigation Tanzania Agriculture Research Project Tanzania Social Action Fund Tanzania Women Leaders in Agriculture and Environment Tanzania Bureau of Standards Tanzania Food and Drugs Authority Tanzania Food and Nutrition Programme Terms of Reference United Kingdom

5

UNIDO URT VE VECO WOYEGE

United Nations Industrial Development Organization United Republic of Tanzania VredesEilanden VredesEilanden Country Office Women and Youth Environment and Gender

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O. EXECUTIVE SUMMARY INTRODUCTION The purpose of this study was to produce/develop a ‘baseline’ as a more thorough description/analysis of the target group in relation to ‘livelihood’ and the cassava value chains. This baseline study is a combination of livelihood analysis and chain analysis: the livelihood analysis (LHA) focuses on the producers while the chain analysis (CA) focuses on the product and the relations between the chain actors. This baseline study concerned a diagnostic assessment of the actual target groups’ situation in relation to their livelihood and the market of in which they are involved i.e. cassava chain. STUDY METHODOLOGY Thus the study team interviewed 55 respondents from 7 farmer groups that were sampled. The consultant used a combination of various methods for data gathering and analysis. These included literature review, observation, questionnaire guided interviews, and focus group discussion with key beneficiaries and other stakeholders. The methods used are presented below. LIVELIHOODS ANALYSIS VECO’s programme in Mkuranga is in line with the national goals, policies and strategies as it focuses on access by small-scale farmers to improved technologies and new technical skills for cassava production, thereby increasing food security, diversifying crop production options and increasing income to enable farm families to invest in their smallholdings and afford other essential rural services. Trends The livelihood options that people of Mkuranga region have are the result of the contexts in which they find themselves. The contexts constitute the external environment including shocks, seasonality and trends of key factors such as rainfall, prices, policies-that determine how individuals and households use the existing assets at their disposal, as influenced by prevailing policies, institutions, and organizations. This in turn determines the livelihood strategies that individuals and households use to pursue and attain specific livelihood outcomes. It is on the basis of this framework that different livelihood options in Mkuranga District are assessed; specifically looking at how they have affected their livelihood outcomes. This analysis was based on interviews and discussions with a broad range of stakeholders to capture their perception regarding the contexts within which they operate and the degree of vulnerability. Shocks The study has revealed shocks related to the natural variables indicating that natural shocks. It was reported that drought rains occurred in 2004/5 and 2005/06 leading to crop failure and food shortage. Mkuranga District, like any other part of Tanzania, has been affected by the economic reforms implemented in the country. The involvement of the private sector in crop marketing and termination of subsidies meant that farmers had to sort out everything for themselves, a move has led to in efficient market arrangements

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resulting from market information asymmetries, product variability, inadequate farmers’ competence in relation to the requirements placed upon them. In many cases high level of transaction costs, mistrust, un-standardized weights and measures, unscrupulous acts, collusions and cheating are the features of agricultural markets. Some of these features, especially transaction costs, collusion among traders, weights and measures, were reported by the key informants and respondents interviewed for this study. In Mkuranga District the main causes of human health shocks are the prevalences of diseases. The most prevalent diseases include malaria, diarrhoea and HIV/AIDS. The economy of Mkuranga District depends largely on agricultural production. Economic shocks in Mkuaranga were therefore explored by looking at the changes in the quantity of cash crops produced in the district. The value of cash crops has been swinging up and down. It is important to note that apart from the traditional cash crops i.e. cashenuts, coconuts and fruits; farmers in Mkuranga District earn substantial income from cassava. Since cassava production dropped abruptly in 2001; this could have constituted a serious economic shock. Seasonality Seasonality of food production, food and health are generally linked. Many farmers consider July-September period as a period when food production start to decline. This period is characterised by dry spells which continues to around October when short rains start. During this period food security is considered moderate benefiting from harvests in the previous months. Seasonality of employment goes with seasonality of weather and farm activities. In view of these findings labour requirements for production activities goes with increased employment in farms. It was therefore found that during the short rainy season the study areas witnessed moderate employment supply while during the rainy season high employment supply could be observed. These periods coincides with short supply of labour. During these periods most of the people are also busy in their own plots, causing short supply of labour. The seasonality of prices is such that produce prices are low immediately after harvest, rising as the dry season progresses reaching their peak around OctoberDecember for cassava and January-March for paddy. Majority of farmers sell immediately after harvest due to pressing needs for cash and lack of storage. Farmers reported that, sometimes they are forced to sell at very low prices due to credit they would have taken from relatives. LIVELIHOOD ASSETS Mkuranga, like other areas in Tanzania is endowed with a number of human, social, financial, and physical resources (core assets) that can be utilised to combat the adverse effects of changes in marketing chains. However, the extent to which these resources can be helpful depends on their quantity and quality. Human resource is an important factor in poverty reduction. Human capital was assessed by looking at child malnutrition, number of active adults, their activities and education. Child malnutrition, food insecurity, inadequacies in education, poor health services were identified by this study as the major constraints to the development of human capital in Mkuranga District. Based on the results of the field work social capital for farmers is considered inadequate. It was reported that there were no strong farmers’ and traders’ associations that would help in facilitating networking. Land constitutes an important natural resource for farmers. Most of the respondents owned small plots of between 1 and 5 hectares of land, and a further analysis reveal that the

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sample had a mean of 4 hectares under cultivation. Livestock is one of the major assets in many areas in Tanzania. Livestock types, local chicken constitute the most popular livestock type kept in the district. It was found that most of the households had chicken and for Mkuranga livestock keeping may be equated to chicken production. The quality of housing across the sample was generally poor though this represents the majority of rural households experience in Tanzania. Social networks are system where individuals can benefit. Such networks include religious organisation, government, NGOs and individuals. Amongst the network support systems, relatives constituted the most important as they are the main source of remittances. Elsewhere in Africa remittances are a significant source of household income. The main sources of financial capital in Mkuranga include own savings, relatives and microfinance institutions. About 42% of the respondents were saving with savings and credit societies. It was found that only 5% saved with banks while 51% did not save with any financial institution at all. These findings suggest that the level of participation in formal financial markets is still very low in the district. The results from this study highlight the need for an intervention in developing financial institutions that can work to avail financial services in the study areas. This study has also assessed plicy, institutions and processes and revealed some deficiencies related to producer groups; gender representation in organizations; roles of famers; institutions. LIVELIHOOD STRATEGIES The people of Mkuranga District pursue several livelihood strategies, the most dominant being; (i) crop farming, (ii) trading, (iii) small businesses, (v) employment in the private sector, (vi) employment in the government. In view of the considerably high contribution of crop production to household income from productive activities, it is anticipated that improvement in farming practices and use of improved BDS, resulting from the VECO programme intervention, will result in increased productivity and output production emanating from increased use of improved crop management. The findings on livelihood strategies highlight two important issues; the need for diversification and the need for high levels of both production and productivity. These turn out to the important sources of sustainability of the livelihood sustainability. As part of the capacity building activities, VECO could include entrepreneurship skills development for the target groups to enable them pursue economic activities productively and implement balanced diversification. VECO should implement activities that will facilitate the provision to targeted and interested groups of producers, of services that will build their business skills and enable them engage with others in expand horizontally (diversify) and vertically (increase production and productivity). Particular emphasis should be placed on enabling the target groups access appropriate financial services, and undertake marketing and simple market analyses and plan production strategies and diversification that target the market. LIVELIHOOD OUTCOMES Generally the study has found that farmers in Mkuranga District are not satisfied with various livelihood conditions including the state of autonomy and psychological wellbeing; degree of access to services, markets, institutions and information; degree of empowerment

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(being heard); food security; income security; literacy and access to education; vulnerability; physical wellness, health, access to respectful, health care; social integration, cultural acceptance. In view of this situation, an effort is required to improve livelihood assets and promote balanced economic activities so as to enhance these outcomes. CASSAVA CHAIN ANALYSIS This section focuses on the interaction and linkages between institutions, cassava actors and value chains. A value chain analysis was conducted in March 2008. The main focus of the value cassava chain analysis was to identify a value chain to focus on by VECO based on the profitability of the value chain; potential for value addition; and the potential include farmers. Based on the results of the study dry cassava value chain was recommended. Concurrently, another study on farmer groups was carried out. The study identified groups that were formed in the past. The study found that the groups were generally weak and needed a lot of capacity building. Respectively, the value chain and farmer group studies had focused on the commodity flow and farmers’ organization. Little was touched on the institutional coordination and relationships among the key value chain players in Mkuranga District. The institutional mapping exercise in Mkuranga District was intended to outline descriptively the coordination and sphere of influence of the various chain actors in Mkuranga cassava chains. The study has found inadequate power sharing among the key players and more skewed against farmers. Efforts will be needed to assist farmers to participate in the management of the cassava chain. This should involve helping to in the following areas: • Information management: Farmers should be helped to keep records of the farm operations and traceability; and facilitate them with market information. Farmers should be trained on how to collect, interpret and utilize the information in price and demand forecasting and know when and how to produce and sell. • Quality management: Farmers should be assisted to identify planting materials for producing quality cassava, grading and quality control and certification. • Innovation management: Farmers should be enabled to acquire the necessary skills and technologies. • Facilitation of effective partnerships between them and the producers. The processors or/and wholesalers would be acting as the lead partners in the value chains, who would be responsible for identification of markets and through them the producers (business groups or associations) could indirectly access the markets at lower costs than individual small-scale producers would face. It is important to note that, the participation in value chains involves acceptance of terms defined by the lead agents or institutions, especially for those aiming to progress towards “higher” (technology, value-added) positions in the chain. The lead firms would play the role of upgrading, functional integration and co-ordination of activities of dispersed producers. The lead partners in collaboration with development facilitators (NGOs and the government) would facilitate the availability of technological information and learning-by-doing to producers. The assessment of business development services has revealed a mismatch between the supply of BDS and demand for the services. The study has also revealed deficiencies in the quality of services supplied. The analysis of production was intended to assess the farming system, resource utilization and productivity. The study has found that cassava farming system in the district is

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basically a traditional one. Although the district has adequate land, it is generally underutilized, and district is characterized by low productivity levels. CONCLUSIONS AND RECOMMENDATIONS This study strongly shows that most of the households in the study areas are generally poor in terms of vulnerability. Considering the vulnerability contexts and the status of the assets owned by farmers, most farmers have limited ability to absorb shocks. Indicators of low asset ownership include poor housing for nearly all the households interviewed, though this represents the majority of rural households experience in the developing world; inadequate ownership of crucial agriculturally productive tools; inadequate access by the households to the formal credit market; etc. The results of this study suggest that the interventions are required in many areas. These include building the necessary assets for farmers. Since VECO will focus on cassava chain interventions are recommended regarding savings mobilization and financial management promotion activities and supply of planting materials. In so doing VECO will make a contribution to the effectiveness of the improved crop production, development of institutions, adoption of improved technologies and the overall growth in the chain as a possible driver of economic growth and poverty reduction in rural areas of Mkuranga.

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1. CHAPTER ONE: INTRODUCTION 1.1

BACKGROUND TO THE STUDY

VECO Tanzania is a country office of Vredeseilanden (VE), an international Belgian pluralistic development organization, which is aware of the potential of Tanzanian farmers in agricultural development. VE wishes to support organized family farmers, male and female, in Tanzania to improve their livelihood through food security and increased income from sustainable agriculture chain development (SACD). In 2008, VE starts a new 6-year strategic plan with a focus on development of sustainable agricultural chains. In its economic objective, VECO Tanzania wishes to support and facilitate establishment of agricultural commodity market chains (value chains) that favour organized family farmers (OFFs) and empowers them to participate actively and profitably in the market transactions and relations they engage in. In Mkuranga, and through a participative process, VECO Tanzania has chosen to focus on cassava as one of the commodities with the potential of building up a value chain. A value chain analysis (VCA) has been done and cassava groups have been identified. Prior to the implementation of the programme, VECO Tanzania wished to conduct a base line study regarding livelihoods and cassava value chain in Mkuranga so as to identify benchmark indicators for the program monitoring and evaluation system.

1.2

OBJECTIVES OF THE STUDY

The purpose of this study was to produce/develop a ‘baseline’ as a more thorough description/analysis of the target group in relation to ‘livelihood’ and the cassava value chains. This baseline study is a combination of livelihood analysis and chain analysis: the livelihood analysis (LHA) focuses on the producers while the chain analysis (CA) focuses on the product and the relations between the chain actors. This baseline was guided by the following principles:  The importance of the cassava production and marketing chain in the livelihood;  This baseline study concerns a diagnostic of the actual situation of the target groups in relation to their livelihood and in relation to the market of the value chain on which they are involved i.e. cassava chain  Sustainability of cassava production in the longer term (risk, importance of the crop in the farming system)  Importance of the cassava chain to contribute to the VE vision, mission  When VE speaks about strategic, this means importance for the individual farmer (income and food security) and for the country/region (linked to VE vision).  In the analysis it should be ensured that there is a gender perspective in that sense that the profit of the chain is for both men and women. This baseline study concerned a diagnostic assessment of the actual target groups’ situation in relation to their livelihood and the market of in which they are involved i.e. cassava chain. For details regarding the scope of the baseline, reference was made to annex 1.

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1.3

STRUCTURE OF THE REPORT

The remaining part of the report is organized into four main chapters. Chapter 2 covers a Methodology for the study including study areas, methods and approaches. Chapters 3 and 4 present the findings of the study covering Livelihood analysis and Chain analysis, respectively. These are followed by Chapter 5, which covers the Conclusions and Recommendations emanating from the study.

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2. CHAPTER TWO: STUDY METHODOLOGY 2.1

STUDY AREAS AND RESPONDENTS

The study was conducted in the VECO Cassava Development Programme areas in Mkuranga District. Mkuranga District is one of the six districts that form the Pwani Region. The district is bordered by Dar es Salaam City to the North, the Indian Ocean to the East, Rufiji District to the South and Kisarawe District to the West. It was established in 1995, when the eastern part and coastal area of the Kisarawe district was cut off to form the district of Mkuranga. It is a relatively small district, covering 2,432 square kilometers, which is about a quarter of the size of Bagamoyo and about the size of the Zanzibar Islands. The district has about 90 kilometers of coastline, extending from the Temeke to the Rufiji Districts. Like much of coastal Tanzania, the district is endowed with coral reefs, mangrove forests, and coastal fisheries. Remote unpopulated islands host rare species such as the red colobus monkey and attractive birds. The programme is planned to operate in six wards covering 10 villages of Mkuranga District. Table 1 presents the programme areas indicating the wards, villages, number of groups and membership size for each group. Foe this study rhe respondents were drawn from the villages covered by the programme. Initially the 10 villages in the 6 wards were sampled, from which at least one farmer group was to purposively sampled, though only 7 villages could be reached. In each group the typical farmer members were stratified, using the indicators developed during the focused group discussions, into “rich”, “medium’ and “poor” farmers. Each of these categories was further stratified into female and male headed households. This process was followed by a random sampling of at least 1 member farmer from each of the female and male headed household stratum in each group for questionnaire interviews. The exercise ended up in having a sample of 55 farmers. Table 1: VECO Cassava Development Programme areas Ward

Village

Kisiju Lukanga Mkamba

Sotele Njopeka Kerezange Lipondo Mwandimpera Mwanambaya Mwanadilatu Mipeko Dundani Kolagwa

Bupu Tambani

Mkuranga

Number of groups

TOTAL Source: Extracted from the TOR Annex 2.

4 3 3 4 3 3 3 1 2 1 27

Number of members Male Female Total 39 30 69 50 17 67 28 52 80 47 20 67 37 15 52 21 42 63 9 9 18 20 16 36 11 11 22 12 18 30 274 230 504

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1

Thus the study team interviewed 55 respondents from 7 farmer groups that were sampled. Table 2 shows the groups sampled and the number of respondents from each group by gender. The respondents for questionnaire interviews were drawn using stepwise sampling technique. Table 2: Farmer groups and respondents selected for interviews Name of group Mikwasu Kiwamamu Juhudi Umico Jikwamue Mtopunguza Sijuwi Total

Ward Lukanga Bupu Mkuranga Mtambani Kisiju Mkamba Mkuranga

Village Njopeka Mwandimpera Dundani Mwanambaya Sotele Rupondo Kolangwa

Number of respondents 10 9 9 8 8 7 4 55

Female

Male

3 5 5 3 8 1 1 26

7 4 4 5 0 6 3 29

The respondents were asked a number of questions regarding their characteristics, vulnerability contexts, assets, strategies and outcomes.

2.2

STUDY CONCEPTUAL FRAMEWORK

2.2.1 Framework for Livelihood analysis As recommended by VECO, the consultant used the Sustainable Livelihood Analysis (SLA) Framework. The approach helped organizing data and analysis on various livelihood indicators. The approach provided a coherent framework and structure for analysis, identification of gaps and ensures that links are made between different livelihood issues and activities. The main important issues that were addressed by the SLF include the following: • Vulnerability context: The external environment in which poor people lived their lives and which were responsible for many of their hardships (trends, shocks and seasonality). • Livelihood assets: The resources poor people possessed or had access to and used to gain a livelihood (Human, social, natural, physical and financial capital). • Policies, institutions and processes (sometimes called transforming structures and processes): The institutions, organizations, policies and legislation that determined access to assets and choice of livelihood strategies. • Livelihood strategies: The ways in which poor people deployed their assets and capabilities to improve their livelihoods (i.e., consumption, production, processing, exchange and income-generating activities). • Outcomes: The outcome of various strategies employed by people in terms of more income and more economically sustainable livelihoods, increased well-being, reduced vulnerability and more sustainable use of the natural resource base. 1

Although 10 groups were sampled only 7 could reached.

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These issues constituted the main indicators for the LHA. In particular the study looked at the status and important changes in the vulnerability contexts (trends, shocks and seasonality); assets (human, physical, social, natural and financial); policies, institutions and processes; livelihood strategies and outcomes. Appendix 1 summarizes the baseline information needed for LHA.

2.2.2 Framework for cassava chain analysis The CA focused on (1) chain logic and power relations mapping; (2) enabling environment; and (3) business development services (4) bottlenecks, barriers and leverages (5) production related issues. In the analysis: • Institutional mapping was used mainly to outline descriptively organization and sphere of influence of chain actors. • Assessment of the enabling environment described the existing rules, laws, regulations, norms and institutions v-s-v their role in supporting cassava value chains. • The assessment of business development services (BDS) helped identifying various service providers, the services they provided and determine their adequacy and relevancy to cassava value chain development. • The assessment of bottlenecks helped identifying strengths, weaknesses, opportunities and threats to cassava value chain development. • The analysis of production was intended to assess the farming system, resource utilization and productivity. These issues constituted the main indicators for the CA. In particular the study looked at the status and important roles of chain actors in enhancing competitive edge for the Mkuranga cassava chain. Appendix 2 outlines the information needed for CA.

2.3

STUDY METHODOLOGIES

The consultant used a combination of various methods. These included literature review, observation, questionnaire guided interviews, and focus group discussion with key beneficiaries and other stakeholders. The methods used are presented below.

2.3.1 Desk review The consultant consulted various relevant documents. These included the Strategic programme document, value chain analysis and marketing study report, farmer groups survey report and any other relevant documents.

2.3.2 Field work Focused group discussion The consultant held focused group discussions with cassava producers to define the typical cassava producer and determine the various groups of producers based on their wealth ranks. To determine the smallholder farmers’ wealth and livelihood status on livelihood indicators such as land, livestock, crop production, asset base, ability to pay for services

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and education were used. Based on these criteria, the farmers were categorized as “rich”, “medium” and “poor”. The focused group discussions also focused on describing the vulnerability contexts; assets; policy, institutions and processes; livelihood strategies; livelihood outcomes and chain elements. The results from focused group discussions helped in defining the sampling frame and shaped the sample survey. Questionnaire interviews The consultant interviewed 55 cassava producers (men and women) in 7 farmer groups. During the field visit, the consultant held face to face interviews. Both qualitative and quantitative data were collected depending on the type of variable indicators used. Structured questionnaires were used for these interviews.

2.3.3 Data analysis Data analysis was analyzed using descriptive statistics such means and percentages and the results were presented using charts, graphs and tables. In the analysis it was ensured that there was a gender perspective. To set contexts, the results from this study were compared 4 juni and 2009information from informants. with the existing information in literature

2.3.4 Work Plan The assignment was conducted in 3 weeks. The work plan for the base line survey is provided in Table 3 below. Table 3: Base line survey work plan Activity

Day 1-3

Day 4-15

Day 16-21

Day 22

Reviewing all relevant documents, and preparation of tools Carrying out interviews and focus groups discussions Consultation with key stakeholders Preparation of a draft report Submission of final report The baseline survey took place in December 2008.

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3. CHAPTER THREE: LIVELIHOODS ANALYSIS 3.1

TANZANIA LIVELIHOOD CONTEXT– THE BIG PICTURE

The Tanzania Development Vision 2025 (TDV 2025) and the National Strategy for Growth and Reduction of Poverty (NSGRP also known as MUKUKUTA in Kiswahili) currently guide Tanzania’s overall development initiative. The TDV 2025 defines the course of the country’s economic and social goals, which include; (i) high quality livelihood, (ii) peace, stability and unity (iii) good governance (iv) a well educated learning society and (v) a competitive economy capable of producing sustainable growth and shared benefits. The NSGRP, scheduled for implementation between 2005 and 2010, is the medium term national framework for poverty reduction and it therefore contributes to achieving the TDV and NSGRP goals. The intended outcomes of the NSGRP are; (i) high shared growth and reduction of poverty, (ii) improved quality of life and social wellbeing, and (iii) good governance and accountability. Tanzania is one of the poorest countries in the world, with more than 30% of the population living below the basic needs poverty line. According to the National Household Budget Survey of 2000/01 (NBS, 2002) the proportion of the population below the national food poverty line is 18.7% and that below the national basic needs poverty line is 35.7%. Poverty remains overwhelmingly high in rural areas where 87% of the poor population live, and is highest among households who depend on agriculture. As the population grows, the number of the poor raises concern. It was observed that basic needs poverty decreased from 38.6% to 35.7% and food poverty from 21.6% to 18.7% since 1998 (NBS, 2002). Sectorbased constraints precipitate income-poverty to the extent that they limit growth in the sector(s) and do also affect the provision of services that reduce non-income poverty. The challenge is how to make sectors, in their unique ways and in collaborative settings, contribute to poverty reduction (URT, 2005a). Agriculture is the leading income generating sector in the Tanzanian economy accounting for 45% of GDP and about 60% of export earnings in the past three years (URT 2005a). It is the source of food and raw materials for industries. It also provides livelihoods to 82% of the population. Recently, the sector has registered average annual growth rates of 4.8% compared to the average growth of 3.1% from 1998 to 2000. The constraints to rural growth are largely derived from those related to the agricultural sector. They include low productivity of land, underutilized labour and production inputs; underdeveloped irrigation potential; limited capital and access to financial services; inadequate agricultural technical support services; poor rural infrastructure (hindering effective rural-urban linkages); infestations and outbreaks of crop and animal pests and diseases; and erosion of natural resource base and environmental degradation. Efforts are required to impart organisational and entrepreneurial skills to rural communities to turn farming and non-farm activities into viable sources of livelihoods (URT 2005a). In order to achieve this, a number of sector policies and strategies have been developed to promote internal and external trade and markets. These include Agricultural and Livestock Policy and the Agricultural Development Strategy; Trade Policy; Land Policy; Education Policy and others. These policies seek to promote a diversified and competitive export sector, enhance efficient domestic production so as to achieve a long-term current account balance and consequently stimulate higher rates of growth and development. They provide

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opportunities for improving food availability and accessibility, access to markets, reducing income poverty of both men and women in the rural areas and increasing access to social and amenities such as clean water, education, health, good governance and rule of law. Specific actions taken to promote trade include lowering and removal of tariffs such as export tax on farm produce, facilitation of import licensing and registration, development and enforcement of quality standards through the Tanzania Bureau of Standards (TBS)), export promotion and export facilitation. In addition to the sector specific policies as outlined above there are a few cross cutting policies such as Gender Policy, HIV/AIDS Policy and Environment Policy, that are mainstreamed into the implementation strategies of all sectors. VECO’s programme in Mkuranga is in line with the national goals, policies and strategies as it focuses on access by small-scale farmers to improved technologies and new technical skills for cassava production, thereby increasing food security, diversifying crop production options and increasing income to enable farm families to invest in their smallholdings and afford other essential rural services. The programme has four important specific objectives as follows: • To empower organized family farmers (female and male) to participate actively and profitably in sustainable agricultural market chains for food and income security; • To facilitate conducive environment so that public and private policies related to trade barriers favour organized family farmers profitable participation in sustainable agricultural market chains; • To promote consumption of products from organized family farmers though sustainable agricultural market chains; • To promote VECO and boundary partners to learning organizations, working innovatively, responding appropriately to changes and therefore contributing positively to the internet impact of the country programme.

3.2

MKURANGA DISTRICT CONTEXTS: A SOCIO-ECONOMIC PROFILE

In 2002, the district had a total population of 187,428 of which 95,714 are females and 91,714 are males. There were 42,837 households with household average size of 4.4. A socioeconomic baseline conducted in 2005 as part of the Songo-Songo Gas Development and Power Generation Project that surveyed four villages in Mkuranga, found that the average income per household was about Tshs 600,000 (approximately US$ 600) per year. With an average household size of about 4.4 persons, this means less than US$ 150 per person per year. The people of Mkuranga primarily belong to four ethnic groups: the Zaramo, Ndengereko, Matumbi and Makonde, most of whom live in houses thatched with grass or coconut leaves, poles, and mud walls on earth floors. Firewood is the major source of energy for cooking. The district is divided into 2 main geographical zones; (i) the coast zone which include the whole of Shungubweni and Kisiju divisions and part of the Mkuranga Division; and (ii) the Upland Zone consisting of large part of Mkuranga Division and a small part of Kisiju Division. While the Coast Zone has sandy soils with low water holding capacity, low water table and moderate soil fertility, the upland zone has loamy sand soils, which are suitable for agriculture. Mkuranga District experiences a dual rainfall, the short rains (vuli) which start in September and goes on to December, and long rains (Masika) which start in March and goes on to June. Normally the long rains are more reliable and more evenly distributed

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than the short rains. The annual rainfall ranges from 800 to 1000 mm. The district is highly 0 humid and hot with an average temperature of 28 C throughout the year.

3.3

MKURANGA VULNERABILITY CONTEXTS

The livelihood options that people of Mkuranga region have are the result of the contexts in which they find themselves. The contexts constitute the external environment including shocks, seasonality and trends of key factors such as rainfall, prices, policies-that determine how individuals and households use the existing assets at their disposal, as influenced by prevailing policies, institutions, and organizations. This in turn determines the livelihood strategies that individuals and households use to pursue and attain specific livelihood outcomes. It is on the basis of this framework that different livelihood options in Mkuranga District are assessed; specifically looking at how they have affected their livelihood outcomes. This analysis was based on interviews and discussions with a broad range of stakeholders to capture their perception regarding the contexts within which they operate and the degree of vulnerability. The analysis sets the stage for understanding how the prevailing assets, organizations, institutions and policies provide a supporting or hindering their efforts to improved livelihoods. Below a brief assessment of the vulnerability factors (trends, shocks and seasonality) is presented.

3.3.1 Trends Population trends Human population trend is an important variable of the vulnerability contexts. While population growth is important for availing human resource, high population pressure can have negative economic and social effects on the society. According to the 2002 national census, Mkuranga district is supposed to have 230,150 human beings by now based on a population growth of 3.5% reported in 2002. Among these, 49% are males (112,719) and 51% are males (117,319). It is estimated that there are 50,000 households out of which 40,000 are engaged in farming activities. The average household size is estimated at 4.4 persons. Figure 1 shows the trend of population size in Mkuranga District. The statistics are based on the national census of 1988, 2002; and estimates by the Regional Commissioner’s Office for 2005 and the Consultant for 2008.

Figure 1: Mkuranga population trend

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Source: Extracted from NBS (2007). The figure shows that the population has generally been growing. In 1988 the district had 116,000 inhabitants, while in 2002 and 2005 the district was inhabited by 186,927 and 193,170 persons respectively. By 2008, the population is estimated at 229,781 persons. During the baseline survey focused group discussions were held to discuss among others the population trends. The participants in the group discussions reported that there has being a drastic increase in the population due to various reasons including influx of people searching for land, high birth rates, migrants searching for employment and business opportunities. According to the group discussions, the population growth is not perceived as a threat for the moment. Resource trends The respondents were requested to list the types of resources they had and their trends. The focused group discussions reported that Mkuranga District is endowed with various natural resources. These include land, water and forests. Mkuranga District has a total area 2 of 2432 km (243,200 ha) of which 447 km (44,700 ha) is covered by Indian Ocean and 2 2 1965 km (198,500 ha is mainland. The area that is covered by natural reserve is 51 km 2 (5,100 ha of the mainland area. Area that is suitable for cultivation is 1934 km (193,400 ha) while the area which is under cultivation is only 1662 km2 (166,230 ha) which is 86% of the arable land. Although only 0.254 km2 (254 ha) are irrigated, about 17,150 ha are suitable for irrigation scheme. The available statistics show that land utilization is generally increasing with the exception of 2004/5 when there were notable dry spells. Figure 2 shows that land under crops has been increasing due to either expansion of the existing farms or establishment of farms by migrants.

Figure 2: Land utilisation trend: land under crops in Mkuranga District Source: Extracted from NBS (2007) Resulting from land utilization, the value for land is increasing due to the increasing awareness among the people that land is valuable. According to the results of the focused

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group discussions, land availability is not a problem in the study areas. Most of the farmers perceive land as abundant. Conflicts over land are generally rare and were not reported by any of the farmer groups that were visited. Soil quality patterns in Mkuranga District are related to the geographical zones. The district is divided into 2 main geographical zones; (i) the coast zone which include the whole of Shungubweni and Kisiju divisions and part of the Mkuranga Division; and (ii) the Upland Zone which includes large part of Mkuranga Division and a small part of Kisiju Division. While the Coast Zone has sandy soils with low water holding capacity, low water table and moderate soil fertility, the upland zone has loamy sand soils, which are suitable for agriculture. Information generated from the FDGs reveals that the quality of soils is generally declining due poor farming methods. Trends in crop production Mkuranga economy is largely depending on agricultural production for its economic wellbeing. About 80% of the population depends on agriculture as their sole preoccupation. As pointed out above, it is estimated that about 40,000 households are engaged in agricultural activities. Other activities include fishing which is mainly practiced by coastal communities, harvesting forest resources, handcraft activities (carpentry, woodcarving, tailoring; and livestock keeping particularly local chicken. Figure 3 shows the production trends for various food and cash crops. The figure shows that the trends were erratic. These findings suggest that crop production is quite unreliable, and even cassava production (Figure 4) which is the main of source of food, it trend has never been steady.

Figure 3: Trends in various crop production in Mkuranga District Source: Extracted from NBS (2007)

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Figure 4: Trends in cassava production in Mkuranga District Source: Extracted from NBS (2007) Figure 4 shows that cassava production had been fluctuating between 1999 and 2005, a situation which has reportedly continued even after 2005. The district produced approximately 220,000 tons of cassava in 1999 increasing steadily to 230,000 tons in 2000. The production level, however, dropped in 2001 and 2002 to 171,000 tons and 164,000 tons, respectively. The production went up again in 2002 and 2003. The available statistics further show that cassava productivity levels were generally low estimated at around 5 tons per hectare (MDC, 2008). The persistent fluctuations in crop production could be associated with unreliable rain patterns in the study areas. National and international economic trends The global economy is growing increasingly more integrated. The dawn of the 21st century was marked with cutting edge technologies creating the platform for greater connectivity and competition among global markets. The evolving economic paradigm is re-defining the way products are moving across markets, regions and continents. The combined effect of technological advances, global political economy and seasonal weather variability has called for dynamism in the way businesses are run. The potential benefit of this development is that it could culminate into increased productivity through the involvement of more people in economic activities across the globe, and the development of new efficiencies and new technologies to better manage our environment and create the right economic blocs. This overview of the Global Economic Prospects 2007 (GEP 2007) contains also the first chapter covering the general economic situation, and the regional appendices. The GEP 2007 explores the next wave of globalization using a set of growth scenarios covering 2006 to 2030. While the medium-term outlook for the world economy remains bright, demographic trends will be a major driver of future events and the benefits of globalization are likely to be uneven across regions and countries. The next wave of globalization will feature: the growing economic weight of developing countries, the potential for increased productivity by global production chains, and the accelerated diffusion of technology. Possible consequences of this globalization include: growing inequality, pressures in labor markets, and threats to the global commons. All of these developments, along with

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deepening economic interdependence, place a burden on the collective actions of the international community: to manage globalization or risk being run over by it. Technological trends In Tanzania, the major limitation on the size of land holdings and utilization is the heavy reliance on the hand hoe as the main cultivating tool (Tulahi and Hingi, 2006). Inadequate availability and access to modern technology is a major obstacle to expansion of land under crop cultivation with 70% of farmers still using a hand hoe for tilling the land, 20% use animal draught ploughs and only 10% use tractors. In the study areas, hand hoe was identified as the main farm equipment used in cassava production for ages in the district. The assessment made shows that 100% of the respondents reported to have hand hoes as the main farm tool for cassava production. Trends in the government Like other districts in Tanzania, Mkuranga District is implementing Local Governments Reforms geared to enabling the Local governments to perform their roles more effectively and efficiently. The main objective of the reforms was to improve governance at the local levels. Being closer to the local communities, the Local Governments and Regional Administration are capable of influencing the rate and magnitude of socio economic development among the communities. For faster development of cassava sector, local governments have to adopt policies, practices and guidelines which are in line with various national policies governing agricultural marketing. The Mkuranga local authorities are charged with the responsibility to maintain a conducive environment for the growth of economic activities including the establishment and development of agricultural marketing systems. The participants in the focused group discussions view the local government as a key player in their development. The challenges to Mkuranga local authorities are to make themselves realize that it is their responsibility to develop cassava marketing systems in their areas.

3.3.2 Shocks Natural shocks Mkuranga District is one of the coastal areas of the country. The mean annual rainfall ranges from 800 mm to 1000 mm. Most of the rainfall falls between October and May with seasonal peaks in December and March – April. Apart from fishermen, majority of the people in Mkuranga are agrarian, which means they are prone to contextual shocks that affect agricultural activities and the natural resource base. Natural shocks such as drought and excessive rains have the potential to influence peoples’ livelihoods in Mkuranga. Discussions with farmers and the key informants in Mkuranga District indicated that during the last 10 years drought occurred in 2004/5 and 2005/06. Drought is associated with crop failure and food shortage, which is particularly acute when the short rains completely fail as it happened in the 2004/5 and 2005/2006 crop season. In Mkuranga, the short rains account for about 40% of the grains production. During periods of drought even the better off categories of society became vulnerable. During droughts opportunities for hired labour were significantly reduced, putting at risk majority of the low income members of society, for whom casual wage labour is an important means to earn

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cash income for food and other livelihood amenities such as medical expenses, school fees, clothes and many others. In the last 20 years there have been fewer years when there was excessive rain. In 2006/07, 1997/98 excessive rain namely El nino rains were experienced all over the country including Mkuranga District. Years of excessive rains are good for rice production. Farmers expand the area planted but the crop also performs better due to conducive water conditions. However excessive rains had negative effects as well including soil erosion and destruction of infrastructures. The main lesson learnt from the experience with excessive rains was that people in Mkuranga District were highly vulnerable. Due to heavy rains in 1997/98 infrastructure were disrupted, especially roads and property, which added to the cost of goods and services, and more resources needed to be allocated for maintenance. During this year, many cases of collapsed houses were reported in Mkuranga, especially those made of mud walls and thatch roof. Roads were disrupted and access to markets was affected. Policy Shocks Mkuranga District, like any other part of Tanzania, has been affected by the economic reforms implemented in the country. According to the stakeholders consulted during this study (mostly farmers), market liberalization has had mixed outcomes. Some have been positive while others are negative. Following the economic reforms, which have been implemented by the government since 1980s, agricultural markets have been liberalized in which case control of product movement and prices have been removed, and the private sector allowed to play an active role in the agricultural markets. Notwithstanding the benefits of market liberalization, the change in policy came as a surprise to farmers who were used to subsidies and state intervention in pricing and buying. The involvement of the private sector in crop marketing and termination of subsidies meant that farmers had to sort out everything for themselves. Unfortunately due to high level of market asymmetries, product variability, inadequate farmers’ competence in relation to the requirements placed upon them, crop markets are generally inefficient in Mkuranga. In many cases high level of transaction costs, mistrust, un-standardized weights and measures, unscrupulous acts, collusions and cheating are the features of agricultural markets. Some of these features, especially transaction costs, collusion among traders, weights and measures, were reported by the key informants and respondents interviewed for this study. Human health shocks In Mkuranga District the main causes of human health shocks are the prevalence of diseases. The most prevalent diseases include malaria, diarrhoea and HIV/AIDS. Table 4 indicates the number of deaths for 1998 and 2005.

Table 4: Number of deaths for 1998 and 2005 in Mkuranga District Type of disease Malaria Diarrhoea ARI HIV/AIDS

Deaths in 1998 Deaths in 2005 28,352 245 11,312 NA

724 103 NA 228

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Table 4 shows that malaria was the leading killer in the district followed by ARI diarrhea. However by 2005 the deaths from these diseases had substantially been reduced. Recently, HIV/AIDS is increasingly becoming one of the killer diseases in the district. The problem has been reportedly increasing since 2000. Figure 5 shows the trend of HIV/AIDs prevalence.

Figure 5: Trend of HIV/AIDs prevalence Source: Coast Region Commissioner’s Office 2006 Figure 5 shows that the HIV/AIDS problem to grow in 2000 since when the problem has increasingly growing at an increasing rate. Economic shocks The economy of Mkuranga District depends largely on agricultural production. Economic shocks in Mkuaranga were therefore explored by looking at the changes in the quantity of cash crops produced in the district. Figure 6 shows how the value of cash crops has been changing over time.

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Figure 6: Value of cash crops in Tshs based on 2005 prices. Figure 6 shows that based on the value of cash crops produced in the district, no serious shocks were recorded between 1998 and 2005. Some moderate shocks were recorded in 1999/2000 when the value of cash crops jumped from Tshs 6,883 million in 1998/999 to 7,964 in 1999/2000. The value of cash crops dropped in following year and started to grow again in 2003 onwards. It is important to note that apart from the traditional cash crops i.e. cashenuts, coconuts and fruits; farmers in Mkuranga District earn substantial income from cassava. Since cassava production dropped abruptly in 2001 (Figure 4); this could have constituted a serious economic shock.

3.3.3 Seasonality Seasonality of production, food security and health Seasonality of food production, food and health are generally linked. During the focused group discussions the participants were requested to describe the seasonality of production, food and health. Table 5 summarizes the results of this exercise. The table shows that food production declines in the period between October and March when actually farmers are busy with farming activities including land preparation planting and weeding. This could be one of the reasons of the notable labour productivity, and this is also found in other areas of Tanzania. Crop production increases in April June and correspondingly food security improves. During this period many crops are harvested including maize, paddy, sorghum and fruits. Many farmers consider July-September period as a period when food production start to decline. This period is characterised by dry spells which continues to around October when short rains start. During this period food security is considered moderate benefiting from harvests in the previous months.

Table 5: Seasonality of production, food security and health Type of seasonality Seasonality of production Seasonality of food security Seasonality of human health

OctoberDecember Decreasing Insufficient Poor

JanuaryMarch

April-June

JulySeptember

Decreasing Insufficient

Increasing Sufficient Poor

Decreasing Moderate Good

Good

Unlike food production and food seasonality, health status in October-December and April – June is perceived as being poor while in the January – March and July – September period, health was perceived as good. Most of the notorious health problems relate to malaria and diarrhoea which occur usually during the rainy seasons. The results from group discussions show that October-December and April – June are rainy periods in any particular year. While food availability and health status are related as food improves health, weather seems to have greater influence on human health. This is so because malaria and diarrhoea which are the main causes of poor health in the study areas. These diseases are more prevalent during the rainy seasons.

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Seasonality of employment During the FGDs it was reported that employment in agricultural farm was an important source of income a big fraction of the population in the study areas. Seasonality of employment goes with seasonality of weather and farm activities. During the focused group discussions the participants were requested to describe the seasonality of weather, production activities and employment. Table 6 summarizes the results of this exercise. The table shows that between October and December the study areas experience short rains, between January and March it is usually dry while between March and June the areas enjoy from rainy season. July to September is also dry. Accordingly the study areas witness increased agricultural production activities during the wet seasons i.e. short rains and heavy rains; during which labor requirement becomes.

Table 6: Seasonality of production, food security and health Type of seasonality Seasonality of weather Seasonality of activities

Seasonality of employment

OctoberDecember Short rains Short rains production activities

January-MidMarch

Mid March-June

July- September

Dry season Offseason

Dry season Off season

Moderate supply

Short supply

Rainy season Land preparation Planting Weeding Harvesting High supply

Short supply

In view of these findings labour requirements for production activities goes with increased employment in farms. It was therefore found that during the short rainy season the study areas witnessed moderate employment supply while during the rainy season high employment supply could be observed. These periods coincides with short supply of labour. During these periods most of the people are also busy in their own plots, causing short supply of labour Seasonality of prices Figure 7 shows that seasonality of prices for paddy and cassava. The figure shows that prices for the two crops vary with season. The seasonality of prices is such that produce prices are low immediately after harvest, rising as the dry season progresses reaching their peak around October-December for cassava and January-March for paddy.

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Figure 8: Perceptions of a focused group discussion participants on child malnutrition at Rupondo village The figure indicates that most of the farmers in that village perceived child malnutrition as acute followed by those who view it as being severe. These findings compare very well with the official statistics for Mkuranga District. The available information show that a total of 6,151 children were underweight in 2004 out of which 131 (2%) were severely underweight; twice as much as the figure for Coast Region of 1%. Food security Household food security is a situation whereby a household is able to meet at least a minimum level of food requirements. Food security however should not be confused with food self sufficiency as food can be secured by purchasing through the market. Indicators used to examine food security include food production levels and nutritional status. Maize, cassava and rice were reported as the main staple foods for the households in the study area. Table 7 indicates the perceptions of farmers on the proportion of food obtained from own production. The table shows that most (71%) of the farmers get only a quarter of their food from their own production.

Table 7: Perceptions of farmers on the proportion of food sourced from own farms Sources of food Counts % Produce all the food consumed Produce ¾ of the food consumed Produce ½ of the food consumed Produce ¼ of the food consumed Entirely purchase from market Total

14 8 1 57 0 80

18 10 1 71 0 100

These results suggest that substantial proportions of the population depend on the market for their food supply. It was found that 71%, 1% and 10% produce ¼, ½ and ¾ of the food

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consumed in their households, respectively. Only 18% of the population was perceived as getting food entirely from the own production. An attempt was made to assess the nutritional status of the farmers. Table 8 shows that majority of the households taking two meals per day implying that most households in the study areas were not food secure. However the proportion of the population taking one meal was as small as 9% while 27% were taking three meals.

Table 8: percentage of households taking 1-3 meals per day in the study areas Number of meals Number of % respondents One meal 5 9 Two meals 35 64 Three meals 15 27 Total 55 100 Important to note, the number of meals is not a sufficient measure of nutritional status. The quality and quantity taken is also important. An attempt was made to evaluate the quality of meals taken by farmers in the study areas. Quality was based on whether the meals were balanced or not. Opinions of the respondents during the FGDs were that 80% of the population in the areas takes unbalanced meals. Primary school net enrolment and completion rate Total and standard one primary school enrolment by sex in Mkuranga District for 1998, 2002 and 20052 are shown in Figure 9. The table shows that enrolment has been increasing overtime.

Figure 9: Primary school enrolments and completion in Mkuranga district

2

Recent figures were not available

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The figure shows that although the primary school enrolment has been improving the number of pupils who complete primary education has been disappointing. For instance, while the number of pupils enrolled for primary schools in Mkuranga were 9,266 boys and 9,005 girls; only 992 boys (11%) and 999 girls (11%) set and got certificates for the standard seven examinations in 2002. The increasing primary school enrolment rates could be associated with the government efforts to promote primary education. In recent years the government has put much effort in facilitating access to primary education by all. The reorganisation of the education sector in recent years has mainly been kick-started by the 2001 Education Sector Development Programme (ESDP) which recognized the central role of the education sector in achieving the overall development goal of improving the quality of life of Tanzanians. The concept of “child-friendly school” was given particular attention in the programme (Maliti et al,. 2005). The Primary Education Development Plan (PEDP) was developed within the context of ESDP, under which the overriding objective of the government was to increase school enrolment. Access to and quality of primary schools Mkuranga District has 95 primary schools. The district has also a teachers training college at Vikindu which offers certificate grade IIIA. The analysis of access and quality of primary school was done by assessing the status of primary school facilities and teachers. The status of primary school facilities is shown in Table 9. The table shows that the district has been persistently suffering from shortage of school facilities.

Table 9: Status of primary school facilities Facility 1998 2002 Required Available Required Available Number of 101 78 104 89 schools Number class 737 288 rooms Number of 8,684 4,149 desks Number of 1,026 345 toilets Teachers’ 750 69 houses Teachers’ 215 86 offices Source: NBE (2007)

2005 Required Available 105 90 1,028

422

12,470

6,348

1,690

542

1,117

83

244

125

The status of primary school teachers in Mkuranga District is presented in Table 10 which shows that Mkuranga District has no enough teachers. Though not necessarily, the inadequate school facilities and lack of enough teachers could be responsible for poor performance of the education sector in the district.

Table 10: Status of teachers in Mkuranga District Grade 1998

2002

2005

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A B C Others

Required

Available

-

-

Required

Available

Required

885 40 0 68

349 31 0 58

1,060 52 0 87

Availabl e 561 18 0 87

These findings demonstrate that access and quality of primary schools are generally inadequate and this could be associated with the reported high rates of dropouts and poor academic performance. An attempt was made to assess the level of literacy in the study areas. Statistics on literacy were not available, though according to the respondents the literacy rate has been on an increasing side. Access to labour 3

The number of economically productive adults (EAAs) constitutes a good measure of the availability of labour in a given household. During the baseline survey, the respondents were requested to list all the household members indicating their age, occupation and sex. From this information the number of economically productive adults was extracted. Table 11 outlines the number of EAAs for the study sample.

Table 11: Average number of economically active members by sex Sex Number % Female 76 Male 72 Total 148

51 49 100

The table shows that the sample had 148 economically active members (an average of 2.7 per household). The table further shows that out of the EAAs, 51% were female and 49 were male members. These findings compare very well with other similar studies elsewhere in Tanzania an example being a socio-economic baseline study in Babati by Mnenwa (2007). Mnenwa (2007) found that farm households in Babati district had approximately an average number of EAAs of 2.6 persons. Activities carried out by EAAs are also one of the indicators of the human capital quality. During the base line survey, respondents were requested to outline the activities that were carried out by the economically active members of their households. Table 12 shows the results from this exercise. The table shows that crop farming is the major activity for all the household EAAs. Only 2% of the total EAAs was also employed by the government, 13% of them worked in the private sector and 37% were self-employed in petty businesses on top of farming.

Table 12: Activities carried out by EAAs: number and percentage of EAAs carrying out the activities 3

All male and female adults between the ages of 15 to 65 years old, exclusive of those individuals in full-time education.

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Activities Farming Self employment Employed in the private sector Employed in government

Number of counts Male Female 78 70 22 33 12 7 3 9

Total 148 55 19 3

The findings also highlight an important issue relating to the diversification in the EAAs’ activities. Although almost all of the EAA are working in one business line, i.e. farming, some of them were involved also in self employment, employment in the private sector and government. The activities planned for VECO programme in Mkuranga are meant to make cassava farming a paying business by improving entrepreneurship skills among the target groups to enable them pursue economic activities productively and search for their product markets. In view of this, the level of participation of the EAAs in productive activities will be an indicator of the effectiveness of the VECO interventions. Access to and quality of health services Preference ranking exercises were conducted in the study areas to evaluate access and quality of health services (diagnosis, treatment and medicine) in the study areas. Table 13 shows the results of the preference ranking exercises carried out.

Table 13: Preference ranking results on access and quality of health services Adequacy of services Counts % counts Inadequate 30 50 Moderately adequate 15 25 Adequate 9 15 Very adequate 6 10 Total 60 100 The results shows that access and quality of health services were perceived as inadequate at the tune of 50% compared to 25%, 15% and 10% accorded to perceptions that the services were moderately adequate, adequate and very adequate, respectively. These findings suggest that Mkuranga district faces problems in the health sector in terms of access and quality of the services. These findings are also supported by official statistics which show that Mkuranga District has 29 health delivery centres which include one district hospital, 2 health centres and 26 dispensaries out of which 14 are owned by the government, and the rest by the private sector. Reports show that the district has inadequate supply of complementary health services. For instance the district has only 202 village health workers (VHW) and 101 village health centres (VHC). Further analysis of the available information reveals that the district has only 88 beds in various health centres and 9 doctors. With the population of 230,150; one doctor serves 25,572 persons.

3.4.2 Social capital Based on the results of the field work social capital for farmers is considered inadequate. Table 14 summarizes the results of an assessment made by the farmers during the field work.

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% n=148 100 37 13 2

Table 14: An assessment of social capita situation in Mkuranga District Type of social capital Status Remarks Networking or cooperation Weak Weak associations or farmer groups; among farmers Weak primary cooperatives Inadequate remittances from relatives Relationship of farmers with Weak No contractual arrangements buyers Inadequate market information sharing Relationship of farmers with Weak No contractual arrangements input suppliers Inadequate market information sharing The relationships between farmers and other market players such as buyers and input suppliers were described as being weak with inadequate information flows among the members of the supply chain. Measurement cheating was sighted as an indication of lack of partnership in the chain management which is a function social capital. The farmers indicated limited networking among themselves. It was reported that there were no strong farmers’ and traders’ associations that would help in facilitating networking. The farmers attributed lack of networking to lack of knowledge and/or awareness on the advantages of networking, lack of commitment and cooperation among farmers and traders, lack of mobilization to form associations low organisational capacity, poor managerial skills of leaders, lack of capital and poor markets for agricultural and livestock products. Other reasons that were mentioned include small farm plots which did not justify formation of strong associations, limited recognition and support from the government, nepotism and fear that associations could restrict individuals to engage in free trade.

3.4.3 Natural Capital Access to and control of land Land constitutes an important natural resource for farmers. Land provides farming space, grazing areas and other resources such as firewood, fruits and roots. Thus availability and accessibility to land for farmers is crucial for their livelihoods. The respondents were asked to indicate the sizes and use of their land holdings. Table 15 shows the prevailing land ownership situation in the study area for the survey respondents.

Table 15: Distribution of land, Mkuranga district Area owned (hectares)

1.0 – 5.0 6.00 – 10.0 11.0 and above Total

Percentage of respondents (n= 55) 58 22 20 100

The table shows that most of the respondents owned between 1 and 5 hectares of land, and a further analysis reveal that the sample had a mean of 4 hectares under cultivation. These

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figures are slightly higher compared to the national statistics which show that smallholders in Tanzania cultivate between 0.2 and 2.0 hectares (Tulahi and Hingi, 2006). The major limitation on the size of land holdings and utilization is the heavy reliance on the hand hoe as the main cultivating tool (Tulahi and Hingi, 2006). As highlighted above, VECO aim to improve farm productivity through utilization of improved planting materials and use of appropriate farming methods, so as to have an effective utilization of the small land holdings owned by the farmers. For improved farming especially cassava production a certain level of investment will have to be done in land management. One of the premises of the VECO’s programme is that, for effective use of small land holdings owned by farmers in the programme areas, increased access to improved business development services (BDS) and skills on crop husbandry will be crucial. Livestock Livestock is one of the major assets in many areas in Tanzania. In many places, livestock contributes to food supply, converts rangelands resources into products suitable for human consumption and is a source of cash and store of value. Official statistics show that Mkuranga District, a variety of livestock species are kept. Table 16 shows the number of the main livestock animals by type.

Table 16: Number of livestock in Mkuranga District by type Type Number % Local chicken 396,420 Indigenous goats 7,752 Indigenous Cattle 2,808 Sheep 702 Dairy cattle 564 Dairy goats 372 Total 408,618 Source: NBS (2007)

97.0 1.9 0.7 0.2 0.1 0.1 100.0

These findings suggest that amongst the livestock types, local chicken constitute the most popular livestock type kept in the district. These statistics were confirmed during the baseline study. It was found Mkuranga keeping large animals was negligible in many areas visited. The respondents did not have large animals such as cattle, goats and sheep. The only animals they had are chicken. It was found that most of the households had chicken and for Mkuranga livestock keeping may be equated to chicken production. Table 17 summarizes the results from this study regarding the number of chicken owned by the respondents. The table shows that households in Mkuranga district owned between 2 and 50 chickens with a mean of 14.

Table 17: Average number of chicken, Mkuranga District Parameter Mean Minimum Maximum Standard deviation

Number 14 2 50 11

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Observations (n)

55

For Mkuranga District and considering a lucrative market for local chicken in Dar es Salaam it implies that chicken production could play a role in the livelihoods of people in the study area. It was, however found that local chicken production is constrained by inadequate livestock production skills and disease outbreaks especially chicken flu and Newcastle. Amount of land under trees 2

In Mkuranga District forest cover 51 km (51,000 ha) including national forest reserves (8,000 ha) and general land forests. During the baseline survey respondents were asked to list the uses of land they owned. Table 18 indicates the land reserved for forests compared to other uses.

Table 18: Land under trees in the study areas Land use Land under cassava Land under other crops Land under trees

N 55 46 23

Minimum 1 0 0

Maximum 7 13 8

Mean 2.45 2.80 2.61

Std. Deviation 1.430 2.491 2.190

The table indicates that 23 of the respondents (42%) owned land with trees. These households owned on average up to 8 acres. On average the households owned approximately 2.6 acres of land. These forests are used for timber, charcoal and firewood. Diversification of production Most of the people in the study areas are engaged in production of food and cash crop on a small scale basis. The respondents reported that they grow cassava, potatoes, maize, cashew, pigeon peas, pineapples, mangoes and paddy. It was found that the importance of crops varied in terms of their contribution to food availability or to the economy of the farmers. Cassava is the most more important crop in Mkuranga compared to the others, not only due to its contribution to food security but also due to its contribution to cash income. According to the information generated during the focused group discussions, paddy was the second most important cereal crop after cassava. These views are in congruent with the official statistics. These findings are supported by official statistics and indicated in Section 3.3.1 on trends of food production. Varieties used for cassava Reports show that Mkuranga District cassava farmers plant various species of cassava. Two types of cassava were reported as important in the district namely sweet and bitter varieties. Table 19 summarizes the types of cassava and their characteristics. Sweet varieties are suitable for production of cassava fried chips, roasted cassava, boiled cassava, and fresh cassava. Bitter varieties on the other hand are suitable for production of cassava flour and starch.

Table 19: Types of cassava and their characteristics

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Type of cassava Sweet varieties: 1. Kiroba 2. Cheupe 3. Kibaha 4. Kikombe 5. Namikonga 6. Cheusi 7. Kibangameno 8. Magimbi Bitter varieties: 9. Kalolo 10. Dihanga 11. Mshelisheli 12. Bora kupata 13. Mwarabu

Description

High yielding, early maturing (6 months), and resistant to diseases Late maturing (9-12 months), easily rotting Early maturing Early maturing and tolerant to Cassava Brown Streak Late maturing (up to 1.5 years) High starch content Late maturing (1 year) Very sweet and starchy High yielding

Tolerant to diseases, late maturing, low yield

Bitter varieties are highly preferred by many farmers in view of their high yield and starch content. Farmers in Mkuranga usually process them into their traditional products such as makopa. These are dried cassava pieces, which are usually pounded to make traditional cassava flour, used for producing a traditional meal called ugali wa muhogo.

3.4.4 Physical capital Physical capital is one of the important livelihood assets for Mkuranga farmers. Four types of physical capital items were assessed to highlight on the asset situation in the district. These include housing, productive assets, energy and transport. Housing Housing is an important element in human development. While houses can provide shelter to people, they can also contribute to income generation in case they are used as premises for businesses or/and rented out. Houses can also be used as collaterals to secure loans for productive purposes that can have a positive effect on people’s welfare (IFAD, 2001; Moser, 1998). An assessment of the housing situation in the study area was conducted during the baseline survey. According to the results of the baseline survey, the quality of housing across the sample was generally poor though this represents the majority of rural households experience in Tanzania. The construction material for housing is often useful as an indicator of both quality of housing and wealth. Table 20 summarizes the status of housing in the study areas as reported by the respondents.

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Table 20: Housing status in Mkuranga District; number and percentage of respondents reporting on the status Item Percentage of households (n=55) Walls: 100 Bricks 13 Soil 47 Roof: 100 Corrugated 43 Thatch 57 Floor: 100 Cement 28 Soil 72 The table shows that the walls of houses for only 13% of the respondents were constructed from bricks, while the proportion of respondent households whose roofing materials were corrugated iron sheets (43%) was slightly lower than those with thatch roofing materials (57%). Only 28% of the households reported cement floor houses while the majority (72%) reported houses with soil floors. Further analysis shows that households owned houses the 4 number of rooms ranging from 1 to 6 rooms with an average of 3 rooms . Productive tools Assessment of the ownership of productive tools was considered important in view of their role in crop production. To assess the ownership of tools that can be used for productive activities the respondents were asked to list the main productive tools and other household assets indicating the number and value of the assets. Table 21 outlines the ownership of important productive tools as reported by the respondents. The table shows that hand hoe, panga and axes were the most popular productive tools in the study areas followed by bicycles, spades and mobile phones. It was found that the productive tools were used for a variety of economic activities. Panga, axes, hand hoe and spades were important tools for land clearing and cultivation for crop production, while sprayers were used for crop protection, bicycles for transportation of products and mobile phones for communication purposes.

Table 21: Productive tools: Number and percentage of households reporting ownership of the productive tools Type of productive tools No. of respondents Percentage of respondents (n=55) Hand hoes 55 100

4

Panga

54

98

Axes

34

62

Bicycles

28

51

The average size of a room was estimated at 8 feet by 6 feet.

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Spades

28

51

Mobile phones

22

40

Sprayer

4

7

Rakes

4

7

Generally the status of productive tools ownership by households in the study area is fairly moderate, with about 51% of the respondent households owning a bicycle, and 51% of the households having spades and 40% owning mobile phones. However the survey results reveal inadequate accessibility to some crucial farm assets such as watering cans, sprayers, oxcarts and rakes. These assets especially oxcart and ploughs are considered crucial for the households because one of the key components of the VECO programme was promotion of cassava production for which these assets are important. None of the household respondents had these assets and evidence of accessing tractor services was not reported. The value of productive tools is one of the indications of the quality of the productive assets base. Based on the valuation made by the respondents, Table 22 presents the value of assets owned by the respondents. Hand hoes, panga, axes, bicycles, spades, mobile phones, sprayers and rakes were the main assets that were included in the analysis. The respondents were also requested to provide the corresponding current prices for the tool and based on that information an average price was computed for each of the equipment and the figure for that tool applied across the sample.

Table 22: Mean value of productive tools owned by respondent households, Mkuranga Productive tools

Value of tools (Tshs) (n = 55)

Maximum Minimum Mean Standard deviation

828,800 3,000 95,326 136,864

The table shows that the mean value of productive assets was 95,326 which is equivalent to nearly one bicycle. It is important to note that improvement of productive tools will be a necessary condition for the success of the VECO programme. Increased utilization of the improved BDS and adoption of improved production technologies will depend on the ability of the target groups to access the productive tools. The interventions in the financial sector by the programme will facilitate accessibility to productive assets that would improve returns to land, labour and other scarce inputs. Since ownership of productive tools is also an indicator of livelihood status, this suggests that the VECO’s impact monitoring and evaluation system could also focus on the changes in ownership and value of productive tools among the households in the target group areas. Agricultural irrigation Mkuranga District has the potential for irrigation. Irrigation is possible for paddy, vegetables, fruits and maize. The district has 164,500 ha potential for irrigation, while only 254 ha are currently under irrigation.

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Energy, water, transport and communication In Mkuranga District, firewood, charcoal and kerosene are widely used sources of energy for cooking and lighting in the district. Electricity supply seems to be limited to areas along the highway from Dar es Salaam to Mkuranga town only. The findings of the baseline survey show that 89% of the respondents relied on firewood and local kerosene lamp (kibatali) for cooking and lighting, respectiveluy. Only a few (11%) were using charcoal and lamps which are the next advanced sources of energy and lighting. It could be surprising to find that very few are using charcoal because the study areas are known for charcoal production. This is so because most of the charcoal produced is transported to Dar es Salaam where high demand and lucrative prices for charcoal are found. Information collected from the government sources show that water sources available in Mkuranga District are limited to shallow wells, bore holes, piped water supply, and rain water harvesting. The district has about 306 shallow wells, 40 bore holes, 32 rain water harvesting units, and piped water supply. The results from this study (Table 23) show that about 95% of the respondents source water for drinking from shallow wells while 5% source water from ponds and rivers.

Table 23: Energy, drinking water and transport status in Mkuranga District; number and percentage of respondents reporting on the status Item Energy for cooking: Firewood Charcoal Energy for lighting: Kibatali Kerosene lamp Source of drinking water: Shallow well Ponds River Means of transport Foot Bicycle Public transport Hired transport

Percentage of households (n=55) 100 89 11 100 89 11 100 95 3 2 100 71 16 7 6

Mkuranga District has a comparative advantage in infrastructure. The district has a good road network, well developed telecommunication and electricity supply. The district has a total of 556 km of roads, classified as earth (400 km), gravel (46 km) and tarmac (110 km). Even though, poor roads were indicated by many stakeholders, during the field work and workshops, as one of the stumbling blocks to efficient trade and markets, especially in remote rural areas. As indicated in Table 19, about 71% of the respondents reported they

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were transporting their crops on foot. About 16%, 7% and 6% used bicycle, public transport and hired transport, respectively. Secondary information from the government shows that Mkuranga is well connected to communication facilities. The district is connected to mobile telephone facilities owned by Vodacom, Zain and Tigo companies. Settlements along the main roads are the best served especially those along the highway. Access to the Internet and ownership of radios and television are also important communication and information. Observations made during the field survey internet services in the district were basically not available. Regarding ownership it was found that only 1% of the respondents had a television while 87% had a radio.

3.4.5 Social capital Social networks are system where individuals can benefit. Such networks include religious organisation, government, NGOs and individuals. During the group discussions the participants reported that they were getting support from various NGOs and public institutions. These included TAWLAE, TADENA, SUA and their relatives. Amongst the network support systems, relatives constituted the most important. The other institutional support systems were basically indirect through projects. Respondents were requested to comment on the importance of remittances to their household income. Remittances are financial transfers from relatives away from home. Elsewhere in Africa remittances are a significant source of household income. For instance in Ethiopia, Gemtessa et al (2005) reports that remittance is a source of income for the Borana community medium, poor, and destitute households, contributing about 10%, 13%, and 20%, respectively. Table 24 summarises their responses of the respondents of this study who were requested to report on the incomes from remittances in the study areas.

Table 24: Importance of remittances to household income Response Not important Very important Important Moderately important Total

Number 35 10 4 6 55

% 63.6 18.2 7.3 10.9 100.0

Table 24 demonstrates that some households benefit from remittances. The table shows that 18%, 7% and 11% of the respondents perceived remittances as very important, important and moderately important, respectively. It was reported that households use remittance incomes purchasing food and other goods for immediate consumption.

3.4.6 Financial capital Financial capital facilitates development as it is needed for procurement of commodities and access to others resources such as information, manpower, innovations, etc. The main

42

sources of financial capital in Mkuranga include own savings, relatives and microfinance institutions. To assess the participation of households in the financial markets, the respondents were asked to indicate whether they were saving money with financial institutions. Table 25 outlines the results of this assessment. About 42% of the respondents were saving with savings and credit societies. It was found that only 5% saved with banks while 51% did not save with any financial institution at all.

Table 25: Forms of savings Mkuranga District farmers Source of capital Bank Saccos Upatu None

Percentage of respondents (n=55) 5 42 2 51

These findings suggest that the level of participation in formal financial markets is still very low in the district. It is important to note that the inadequate participation of the respondents could be linked to the farmers’ ability to save. Table 26 shows that savings among the respondents were generally low. The wide gap between the minimum and maximum savings and the high standard deviation (see Table 26) explain the inadequate savings among many farmers, which could be one of the reasons for inadequate participation of the farmers in formal financial markets.

Table 26: Mean value of savings by respondent households, Mkuranga District Parameter

Maximum Minimum Mean Standard deviation

Value of savings per annum (Tshs) (n = 23) 4,000,000 5,000 290,391 908,823

Respondents were also asked whether they had ever borrowed from money lenders. Very few respondents indicated to have had borrowed. It was found that 5 of the respondents borrowed from SACCOS, 2 from relatives and 1 from finance institution. However, these findings were not surprising. Since the sample was purposely drawn from poor farmers, it is a fact that majority of the respondent households would not be accessing the formal credit market. It is widely held in literature that poor people are often discriminated against in 5 the credit market . According to a study commissioned by the Bank of Tanzania (BOT) in 5

This is usually attributed to lack of sufficient information among lenders about the borrowers; lack of sufficient information among the borrowers on the availability of credits; lack of collateral; the high transaction costs that finance institutions incur when dealing with small borrowers in remote rural areas; and the high risk of default due to the occurrence of shocks or moral hazard. The literature also explains the workings of of the credit market and how in recent years initiatives have been developed to addresses the failures listed above (Ellis, 1992; Matin et al., 2002; Moseley et al., 1998).

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1997 the unmet demand for rural financial services by formal financial institutions was significantly high, thus forcing rural households to rely on informal financial services by 82%. A follow up survey in 2002 reveled that only between 6% and 8% of the total rural credit demand was met by the existing financial institutions (IFAD, 2002; URT, 2002). These results suggest that there are serious constraints that are limiting households from accessing financial resources from the financial institutions in the study area. Many researchers (e.g. Ellis, 1992; Matin et al., 2002; Moseley et al., 1998) report that, coupled with price fluctuations and unreliable weather, poor people cannot meet the conditions set by the formal lending institutions such as collaterals, experience in business etc. Lack of adequate knowledge on credit processing and management could be one of the sources of fear among many poor people on loan acquisition. Inadequate savings mobilization in many places in the project area further enhanced the problem. It was found that saving and credit systems were weak and even the traditional savings and credit system (such as 6 Upatu ), though could be an entry point for promoting savings and credit systems in the project area, were not commonly used as none of the respondent indicated receiving financial resources from them. The results from this study highlight the need for an intervention in developing financial institutions that can work to avail financial services in the study areas. VECO could plan to conduct training for farmers on financial management, capital development, the development of group savings schemes and eventually the start up of SACCOSs, with a view to generating investment capability to be able to participate in input stocking and supply in rural areas. All farmer groups would be trained in financial management to improve their ability to run the fund and group income generating activities. While training is crucial for the development of financial access, it is also important to note that the problem is not only skills and knowledge, but also it should be a mindset and change of attitudes towards lending and borrowing. Cash flow is an indicator of how a household performs financially. A household is financially healthy if inflow exceeds outflows. Table 27 presents the average financial inflows and outflows for the households interviewed during the baseline survey.

Table 27: Average household income flows, Mkuranga district Income flows Seasonal income received between January -April Seasonal income received between May -July Seasonal income received between August -December Total income being received yearly Seasonal income used between January -April Seasonal income used between May -July Seasonal income used between August -December

Average amount in Tshs 169,185.2 153,277.8 270,981.5 593,444.4 157,518.5 138,185.2 180,056.6

6

Upatu sometimes known as “mchezo� is a Swahili word for an informal saving and credit in which members would periodically contribute money and give the money to one of the members. For instance a group of people say 10 may agree to contribute each week Tsh 10,000. For the first week they would collect Tsh 100,000. This amount would be given to the first person. The second week they would collect the same amount and give it to the second member. This process would then continue until all the members have been able to receive Tsh 100,000. If so wish they can continue with a second round and so forth. This system is usually practiced by women though men can also participate.

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Total income being used yearly

475,760.3

Table 27 shows that income flows vary with season. Between August and December income flows are highest followed by income flow in January to April. Bethween May and July the income flows are the lowest.

3.4.7 Policy, institutions and processes Producer groups vs other social groups There are several institutions playing varying roles in policy development including public and private institutions. In the private sector CBOs and farmer groups are the main players in shaping policy. In the public sector the government is the main player in policy process. Like other districts in Tanzania, Mkuranga District has Local Government departments. Being closer to the local communities, the Local Governments and Regional Administration are capable of influencing the rate and magnitude of socio economic development among the communities. In so doing local governments have to adopt policies, practices and guidelines which are in line with various national policies governing agricultural marketing. As indicated elsewhere in this document, the Mkuranga local authorities are charged with the responsibility to maintain a conducive environment for the growth of economic activities including the establishment and development of agricultural marketing systems. Status of chain producer groups Farmers’ organizations are vital in improving the position of farmers in the value chain. The organizations would facilitate the process to involve farmers in the value chain management (production organization, information, innovation and marketing organization). The analysis of farmer groups conducted by MVIWATA in 2008 showed that most of the farmer groups in Mkuranga District were formed with the assistance of TAWLAE, TADENA and SUA on the premise that they would be supported financially. The groups seem to be lacking self reliance spirit as they are bogged down by dependency syndrome. The VECO’s vision on group/association formation and strengthening seems to be different as it focuses on developing viable cassava chains such that farmer groups are looked at as vehicles of furthering farmers’ viable businesses. The role of the farmers groups/associations in this respect would be to provide BDS to producers including involvement in multistakeholder processes, lobbying with the government for policy changes and services that are supportive to cassava producers. MVIWATA reported that the existing farmer groups are facing problems related to business education, entrepreneurship acumen, lobbying and advocacy skills, negotiation skill and savings and credit skills. If VECO wishes to work with the existing capacity building will be needed to reform the groups and enhance their capacity to operate them as BDS providers and business facilitators as opposed to the current tendency of thinking that their role is to solicit grants and funds from donors. Gender representation in organizations Gender balance is important for farmer groups’ development as it creates equal opportunities to both men and women. With gender balance, women can access information and resource needed for their development and policy development. Having been formed by the people (men and women), they tend to be more homogeneous, cohesive and both men

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and women have the same aim. Table 2 in Section 2.1 shows that 47% of the respondents interviewed during this study were women. MVIWATA (2007) found that 46% of the farmer group members were female. The involvement of women has led to an improvement in their social position and thus increases their participation and inclusion in development activities, especially in positions of leadership. The sharing of knowledge and capacity building brings into focus the notion of people’s participation in development activities – helping rural people put into practice the knowledge that they possess in a way of encouraging them to improve upon this knowledge in the way they deem fit. At a broader level, village level governance was said to have improved as a result of processes of decentralisation: Communities are more involved in identifying their problems and finding solutions to these problems and these processes are supported by government programmes and NGOs involved in development. According to farmers and development workers, a great deal of success has been registered as development plans are now made and agreed upon by the people themselves with the understanding that since the project belongs to them, they must contribute some inputs. Roles of famers (men and women in chain development) Participation of farmers in the management of the value chains is crucial for improving their position in the value chains and also for the sustainability of the cassava production. The efforts made under TADENA and other stakeholders were intended to promote farmers through their groups to become strong players in the value chain. The groups were facilitated with training on cassava processing technologies, Savings and Credit Cooperative Societies (SACCOS), planting materials development, and marketing. These efforts however could not result into farmers becoming strong value chain leaders, perhaps because the key principles for empowering farmers were not fully observed. Successful intervention in a chain involves promoting sustainable business models. This means the various actors in the chain must all be able to make sufficient profit. What this means is that before attempting to undertake any business, a feasibility study and development of a business plan are required. Most of the groups and their business were established without feasibility studies and no business plans were developed. Consequently, the business was implemented inefficiently and ended up being unprofitable due to unanticipated problems such as inadequate raw materials supply, managerial problems and inadequate markets. Moreover, during the introduction of the processing of cassava activities in Mkuranga District there was inadequate consultation among the players that took place around the shared interests. Dialogues between VECO, TADENA and other key stakeholders with processors focusing on trust building, exchange of information and creating shared vision were previously held, but these were not fruitful because they did not result in joint action plans to improve the chain for the benefit of all. During the dialogues, the players were supposed to identify their ambitions and problems they needed to jointly deal with. It was reported that the dialogues ended up in players taking their own independent courses. Local producers, chain actors’ interests in policy Cassava production is a politically strategic product in view of its role in food security and poverty reduction. In Mkuranga cassava production there are some interests from various groups of players. These include farmers, government authorities, NGOs, religious organizations and politicians. Value chain development approaches to cassava production is likely to influence the power relations between these groups. In the implementation of various value chain development strategies, the existing (multiple) force fields and related

46

organizing practices, such as division of labour at household level and hierarchies within the local government organisations, would affect the outcomes of these efforts and how the control over resources is exercised. In addition, the contents of formal institutions of control would have to be negotiated and interpreted by the actors within the local government, communities as well as by donors. Thus, the dynamic relations of power between the actors intervene in and affect the functioning of the value chain control mechanism and institutions. For instance, diverse development goals and approaches (food security, income poverty reduction, commercialization, value chain development, SACCOS development, etc) are put into practice in the existing power configurations. The challenges for value chain development arise both from “local realities”, including political and social relations within the district and lack of social and material resources, as well as weaknesses of producer organisations and institutions. In some cases, the initiatives made in the name of value chain development may help shift or maintain the powers over resources to the hands of local elite or benefit mainly some politicians, who may cause tensions and even overt resistance. Institutions (rules, norms and values that shape behavior) Institutions can be defined as the ‘rules of the game’ that structure social (market) life. Literature divides institutions into two groups namely (i) the laws and regulations; and (ii) the organizations implementing them. Thus organisations are institutions but not all institutions are organisations. Institutions are further divided into two groups: (i) formal institutions which include government laws and policies; government agencies; contracts between businesses; public and private standards; enforcement mechanisms (courts, police); and (ii) informal institutions which include consumer likes and dislikes; informal market relations; corruption; and trust. It is believed that informal institutions can strengthen or undermine formal institutions. Tanzania has a number of laws and regulations, which govern different activities, which aim at promoting the activities and protecting users of the products. In the food and processing sub-sectors, for instance these include regulations with regard to registration of processing and business premises, regulations related to licenses and permits of performing business activities and regulations pertaining to composition of food. In addition there are various organizations responsible for various roles in agricultural production and marketing. These institutions are also applicable for Mkuranga District. The assessment made during the baseline survey reveals that Mkuranga District is characterized by inadequate implementation of various institutions. The district faces inadequate contracting and contract inforcement, and basically most of the agricultural activities are informally operated.

3.5

LIVELIHOOD STRATEGIES

3.5.1 Livelihood activities The people of Mkuranga District pursue several livelihood strategies, the most dominant being; (i) crop farming, (ii) trading, (iii) small businesses, (v) employment in the private sector, (vi) employment in the government. Table 23 outlines the major activities for the respondent households in Mkuranga District. The table shows that the household heads

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interviewed participated in crop production, livestock production and nonfarm activities (self employment and employment in the private and public sectors). The participation of households in economic activities for the various households was analyzed based on their activities that were the main source of income (cash and non cash). Table 28 shows high level of participation for respondent households in many economic activities in the study areas and it appears that crop production activities are activities for all the households included in the study.

Table 28: Respondents participation in economic activities in Mkuranga district

Activities of respondents Farming (crops and livestock) 7 Self employment Employment in the private sector Employment in the public sector

Male Number 29 14 4 1

%

Female Number %

Total Number %

100 48 14 3

26 17 3 0

55 33 9 1

100 65 12 0

100 60 16 2

These activities are basically the traditional activities for farmers in the study areas, though now nonfarm activities are coming up as important activities. It was found that the importance of crops vary in terms of their contribution to income. Table 29 shows the relative importance of various crops. According to the table cassava is more important compared to the others, followed by potatoes, maize and cashew nuts.

Table 29: Relative importance of various crop products to income from crop production Income from crops Cassava Potatoes Maize Cashew Pigeon peas Pineapples Chicken Mangoes Total

Percentage of income from crops 38 20 17 11 4 3 3 1 100

In an attempt to encourage active participation in economic activities in the programme areas VECO should facilitating access by local communities to improved BDS and improved production and management skills. In view of the considerably high contribution of crop production to household income from productive activities, it is anticipated that improvement in farming practices and use of improved BDS, resulting from the VECO

7

Shops, restaurants, trading, brick making, carpentry, civil works

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programme intervention, will result in increased productivity and output production emanating from increased use of improved crop management. The VECO interventions will not be directed to all the crops, but would bring some changes in the structural contribution of the various products to household incomes through spillover effects from the training and facilitation of savings mobilization and financial education and management, while the business skills developed through training could also be applied in other crops. The resources that will be generated from improved cassava production could also be invested in crops as diversification strategies. Thus changes in crop sectors should be monitored carefully with a particular emphasis on the interdependence and possible spillover effects from the programme to determine what impact the interventions made by VECO through its programme will have on the agricultural sector and its structural development.

3.5.2 Non-farm activities Nonfarm activities are enterprises that are important source of livelihoods in the study areas. During the study a number of nonfarm activities were identified including wage employment and self-employment activities. Table 30 summarizes the relative contribution of self and wage employment activities to household income from these across the sample. The table shows that much of the non farm income came from employment in the private sector and self employment activities.

Table 30: Contribution of various nonfarm activities to income from them Nonfarm income sources Nonfarm wage employment Businesses and trading Farm wages Total

Percentage of income from nonfarm activities 44.0 40.0 16.0 100.0

These results suggest that employment in the local economy such as teaching; sales assistants and civil work contribute a substantial proportion to the household income from nonfarm activities. Harnessing natural resources could be an important source of income. Although the respondents did not report this, charcoal production is one of the income sources in the district. For instance, NBS (2007) reports that charcoal was the second income earner in the Coast Region. The VECO’s interventions are expected to benefit self employment enterprises in many ways. The skills gained from the training activities, though not directly targeting nonfarm activities could also be applied in the activities. In this way, the entrepreneurial skills gained from the progrmme will be used not only in agricultural production and marketing, but also in nonfarm self employment businesses. Moreover the financial resources that would be generated from improved farm production could be invested in self employment activities as one of the diversification activities. This observation, thus, leads to a necessary suggestion that the changes in non-farm activities such as shops, brick making, cap[entry, civil work, be part of the programme impact M & E.

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3.5.3 Sustainability of livelihood strategies The findings on livelihood strategies highlight two important issues; the need for diversification and the need for high levels of both production and productivity. These turn out to the important sources of sustainability of the livelihood sustainability. As part of the capacity building activities, VECO could include entrepreneurship skills development for the target groups to enable them pursue economic activities productively and implement balanced diversification. VECO should implement activities that will facilitate the provision to targeted and interested groups of producers, of services that will build their business skills and enable them engage with others in expand horizontally (diversify) and vertically (increase production and productivity). Particular emphasis should be placed on enabling the target groups access appropriate financial services, and undertake marketing and simple market analyses and plan production strategies and diversification that target the market.

3.6

LIVELIHOOD OUTCOMES

3.6.1 State of autonomy and psychological wellbeing Human motivation theory as propounded by Maslow (1943) identifies three categories of needs for a human being namely psychological needs; safety needs; love needs; and esteem and self actualization. Maslow (1943) argues that undoubtedly these physiological needs are the most pre-potent of all needs. What this means specifically is that in the human being who is missing everything in life in an extreme fashion, it is most likely that the major motivation would be the physiological needs rather than any others (Maslow, 1943). During the baseline survey respondents were requested to comment on their state of autonomy and psychological wellbeing. Table 31 summarizes the preference ranking exercises that were carried out by the respondents regarding this issue.

Table 31: State of autonomy and psychological wellbeing Response Very adequate Adequate Moderate Inadequate Total

Counts 2 10 20 28 60

% counts 3 17 33 47 100

Table 31 shows that most of the farmers were not satisfied with their state of autonomy and psychological wellbeing. These results can be linked well to the findings regarding the vulnerability contexts, assets and policy institutions. Results from the analysis of contexts, assets and policy institutions show unfavorable vulnerability contexts, assets status and policy processes.

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3.6.2 Degree of access to services, markets, institutions and information Services, markets, institutions and information are crucial for the overall development of cassava chain in Mkuranga District. Access to low cost and high quality services such as transport, distribution, communication, finance, markets and information are major determinants of farmers’ competitiveness in the market. While significant improvements in the services, markets, institution and information have been realized, access to these services by farmers continues to be a major challenge. Information collected from the famers who were visited during this study shows that poor farmers are still excluded due to high costs of accessing the services. We have seen in Section 4.4.3 that farmers face inadequate access to transport and communication services, while in Section 3.4.5 we have learnt that farmers are facing challenges in accessing financial services. Furthermore, in Section 3.4.6 we have seen that farmers are suffering from inadequate institutional support.

3.6.3 Degree of empowerment (being heard) Central to policy implementation to-day and to the achievement of the empowerment outcomes detailed in Tanzania’s empowerment policy referred to earlier, are participatory processes. These processes are expected to focus on the inclusion of individuals and groups previously excluded from development initiatives. Empowerment in the context of development interventions is defined as, “an intentional, ongoing process centred in the local community, involving mutual respect, critical reflection, caring and group participation, through which people lacking an equal share of valued resources gain greater access to and control over those resources. These local processes of collective action are one aspect of the participatory paradigm relevant to the achievement of community empowerment. The other relates directly to the behaviour and performance of organisations, including local government and village institutions that provide services to local communities and are frequently ultimately responsible for project and programme implementation. During the FGDs all the respondents highlighted inadequate participation of farmers in policy dialogue as the major challenges facing farmers.

3.6.4 Improved food security Access to food is a human right. Food security has been defined by the World Bank as; “having access by all people at all times to enough food for an active healthy live. The FAO defined food security as; ensuring all people have at all times access to basic food they need. A food secure household is one which has enough food available to ensure minimum necessary intake by all members within the family. As stated earlier, food availability is a function of production and functioning markets. While accessing food from markets is assuming an increasing and important proportion of food consumed even in rural areas, own production remains the main source of food available for household consumption in rural areas and is often considered to be the most secure source of food. In Mkuranga District, it was surprising to find that, many households get a big proportion of their household food from the market (See Table 5). During the focused group discussions, respondents highlighted on their perceptions on food security situation in the District. Table 32 summarizes the results of the FGDs.

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Table 32: Perceptions of farmers on the proportion of food sourced from own farms Sources of food Counts % Very adequate Adequate Moderately Inadequate Total

14 8 1 57 80

16 8 3 69 100

The table shows that most of the farmers were not satisfied by the status of food security in their households. As already indicated above, most of the respondents were taking only two meals per day. The analysis of vulnerability contexts in Section 3.3.1 has shown that crop production trends are erratic. The various factors that reduce the ability of households to produce food even for consumption and therefore increase their vulnerability to food insecurity were highlighted as being: • Crop failure due to unreliable rains • Low productivity due to poor crop husbandry, • Inadequate investment in improved technologies (improved varieties, farm implements) • Inadequate incomes to buy food. These factors signify unfavorable vulnerability contexts, inadequate assets and inadequate institutions as discussed above. For instance, the devastating effect of rainfall variability has particularly increased the degree of crop failure and consequently of vulnerability of the middle and low wealth groups among crop farmers. In order to address the problem of rainfall variability, stakeholders proposed the development of irrigation, which, if defined in a broad context includes the management of rainwater

3.6.5 Income security Income poverty reduction has been the main focus of the government efforts since independence. The government efforts have mainly been geared towards increasing household incomes from increased agricultural production. In the past the government tried to even subsidize agricultural production in form of free inputs supply in order to raise income level for farmers. One important study hypothesis is that the interventions by VECO will have an impact on the incomes of the people in the project areas; and thus the level, sources and structure of the incomes could form part of the important impact indicators for the VECO programme. In view of this the analysis of income portfolio was considered important. In the analysis of income portfolio we combine both income from productive activities and non productive sources particularly remittances. Table 33 shows the various income sources for households in the study areas including both productive (crop production, non-farm income activities) and non productive sources (remittances).

Table 33: Contribution of various wage employment activities to annual household income from them

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Income sources Income from crop and livestock Income from private employment Income from businesses and trading Income from remittances Income from farm wages Total

Average income (n=55) 186,882 144,364 131,091 88,909 55,273 606,519

% 31 24 22 15 9 100

Amongst the productive activities crop and livestock production activities contribute a larger proportion (31%) of the overall household income followed by employment in the private sector (24%) and off farm employment activities (22%). Remittances from relatives are the fourth most important source of income. This source makes about 15% of the overall household income. Poverty monitoring will also be crucial for VECO programme’s impact M & E. According to Little (2006), poverty can be defined in many ways. The most widely used poverty measures rely on flow-based measures of well-being, typically using income as a proxy variable (Little, 2006). An assessment was made to establish the poverty levels of the people in the study areas using income as an indicator. Based on the results of this study average per capita income for the households was approximately Tshs 140,000 (USD 100) for the sample which is slightly lower than the national per capita income figure of USD 350 per annum (World Bank, 2008). The emerging picture from this analysis is that the households interviewed are indisputably poor. These findings compare very well with those from a socioeconomic baseline conducted in 2005 which found that the average income per household was about Tshs 600,000 per year (a per capita income of approximately Tshs 135,000).

3.6.6 Literacy and access to education Illiteracy was pronounced as one of the national enemies since independence, others being poverty and diseases. Statistics for literacy rates in Mkuranga District were not readily available. During the base line survey, respondents were asked to indicate the number of years spent in schooling as a measure school attainment. Number of years in schools is one of the indicators of educational attainment. Table 34 summaries the mean educational attainment in terms of education years for an economically active adult member in a household for the sample households.

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http://wbln0018.worldbank.org/institutional/manuals/opmanual.nsf/ea15e1c83a2111698525699e00 5e12b5/caa5270b348a23608525672c007d08de?

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Table 34: Mean years in schools for economically active adults, Mkuranga District Years in school Parameter Maximum Minimum Mean Std deviation

Male 16.0 0.0 6.5 3.2

Female 16.0 0.0 3.4 3.4

Overall 16 0 5 3.3

Table 34 shows that the mean educational attainment is 5.0, suggesting that most of the EAAs had not been able to complete primary schools though when EAAs who never attended school are excluded from the analysis the average number of years spent in schools exceeds 7 years which is the number of years for primary school. Some differences were noted between female and male EAAs. The level of educational attainment was lower for female members 4.2 years) than male members (5.6 years). Nevertheless, at least for those who attended schools should have acquired basic skills in arithmetic, reading and writing.

3.6.7 Reduced vulnerability Vulnerability can be defined as the capacity to absorb impacts. Being vulnerable implies weak adaptive capacity and strong adaptive capacity means reduced vulnerability. Vulnerability can be described as a state and as a set of factors that constitute that state and dispose certain individuals and groups as “vulnerable” (see Adger and Kelly, 1999). Vulnerability also has a dynamic side to it – a change towards a more or less vulnerable state (Leichenko and O’Brien, 2002). Vulnerability and adaptive capacity are manifested in and influenced by a number of factors, including (adapted from IPCC, 2001: 895-897): • Human capital, aspects of which include longevity, health, nutritional status, literacy, education, skills and information. • Availability of and access to technological alternatives such as transport and telecommunication networks, public utilities and agricultural inputs. • Levels and sources of income. • Income and other forms of inequality. • Aspects of social capital such as trust, transparency, accountability, security of entitlements, and the quality of informal and formal institutions. The findings of this study have shown that Mkuranga district is facing major weaknesses in all these spheres. The district is characterized by inadequate human capital status, inadequate use of technologies, inadequate incomes, inadequate access to services such as information, inadequate social capital, etc. In view of this situation, people in Mkuranga District are higly vulnerable. The main objectives of VECOs interventions will be to reduce vulnerability in the district. VECO should address vulnerability problems through capacity building for resource management and facilitation of service delivery to cassava production productivity. This is in recognition of the fact that cassava is one of the most important

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product that farmers rely on. Thus focussing on improving the productivity of cassava production is a valid option.

3.6.8 Physical wellness, health, access to respectful, health care Once people recognize an illness and decide to initiate treatment, access to health services becomes a critical issue. Five dimensions of access influence the course of the healthseeking process: Availability, Accessibility, Affordability, Adequacy, and Acceptability. What degree of access is reached along the five dimensions depends on the interplay between (a) the health care services and the broader policies, institutions, organizations, and processes that govern the services, and (b) the livelihood assets people can mobilize in particular vulnerability contexts. However, improved access and health care utilization have to be combined with high quality of care to reach positive outcomes. The outcomes can be measured in terms of health status (as evaluated by patients or by experts), patient satisfaction, and equity. Findings from this study have shown major weaknesses in view of health status. As indicated above access and quality of health services were perceived as inadequate implying problems in the health sector in terms of access and quality of the services. Moreover official statistics inadequate supply of complementary health services, hospital beds and doctors.

3.6.9 Social integration, cultural acceptance Regarding social integration, the study has found that there were inadequate collective action, information sharing, lobbying, gender relations and good governance. It was reported that communities are less informed of market opportunities, technologies and prices. Inadequate participation of farmers in agricultural marketing chains management is one of the factors for poor performance and low competitiveness in terms of marketing costs and margins for farmers. Very often farmers do not control the terms of payment, the definition of grades and standards, targeting of buyers and the management of innovation. This situation reduces the degree of marketing chain integration thereby increasing both marketing and transaction costs. The following observations were made regarding social integration and cultural acceptance: o Inadequate social capital (networks and relationships) among trade and market actors and between them and farmers has been the major source of cheating and inadequate quality control and trust to the extent of influencing marketing costs and margins. o Inadequate governance can contribute to high marketing costs and margins. o When the people themselves identify problems and dramatize them, thereby controlling the information channel, the outcomes tend to be more effective than when controlled by outsiders. o In regards to the constraints faced by women in access to information, the best ways to improve their access to information is through various self-help groups formed by the people themselves. These groups tend to be more homogeneous, cohesive and have the same aim. They are more independent of development workers in terms of decision making, and are likely to perform better than those formed by development workers who see the groups as belonging to them (development workers).

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4. CHAPTER FOUR: CASSAVA CHAIN ANALYSIS 4.1 CASSAVA CHAIN LOGIC AND POWER RELATIONS MAPPING This section focuses on the interaction and linkages between institutions, cassava actors and value chains. A value chain analysis was conducted in March 2008. The main focus of the value cassava chain analysis was to identify a value chain to focus on by VECO based on the profitability of the value chain; potential for value addition; and the potential include farmers. Based on the results of the study dry cassava value chain was recommended. Concurrently, another study on farmer groups was carried out. The study identified groups that were formed in the past. The study found that the groups were generally weak and needed a lot of capacity building. Respectively, the value chain and farmer group studies had focused on the commodity flow and farmers’ organization. Little was touched on the institutional coordination and relationships among the key value chain players in Mkuranga District. The institutional mapping exercise in Mkuranga District was intended to outline descriptively the coordination and sphere of influence of the various chain actors in Mkuranga cassava chains.

4.2.1 Chain logic Chain logic is a description of the logical sequence of activities in a chain. Based on the available information, views of the key informants and famers the recommended cassava value chain logic for Mkuranga District can be represented as shown in Figure 11. Figure 10: Mkuranga cassava value chain logic and chain actors

PROCESSI Chain logic PRODUCTI ON

COLLECTI ON

WHOLESA LE

RETAILI NG

CONSUMPTIO N

Chain actors FARME R GROUP

PROCESSO R

RETAI LER

PRODUCE R

CONSUMER

WHOLESAL ER TRADER

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As indicated in Figure 9, cassava marketing system was found to be characterized by an enormous variety of actors, playing slightly different but often overlapping roles, which are distinguished by scale of operation, and buyer/seller clients they serve. They exhibit different degrees of vertical integration, with some serving the same functions that two or more other intermediaries may be simultaneously performing. Figure 9 shows that the actors in Mkuranga cassava value chain include farmers, farmer groups, processors, wholesalers, retailers and consumers. Traders are the main players in the fresh cassava sub-sector, while processors, wholesalers and retailers are important in the dry cassava sub-sector. For the moment dry cassava subsector is underdeveloped in the district, but the subsector will be the main focus of VECO progrmme due to its potential in terms of profitability, value addition and inclusion of farmers. Moreover development of this sub-sector will play a role in the industrialization of the cassava industry. The main types of cassava market actors found in the cassava marketing system are briefly described below. Cassava farmers Two types of farmers were identified during the study. The first type was the farmers who are organized in groups. Farmer groups were formed in response to some facilitation from some NGOs, which were promoting cassava production and processing. These farmers have been organized in groups and assisted to integrate production and processing. The farmers were given training in processing and some groups were provided with processing machinery. The second group of farmers consisted of individual cassava farmers. It was surprising to find that these groups had no significant difference from the other type in terms of production practices, implying that the farmer groups so far established have not yet yielded substantial benefits. The difference only lies in the fact that these farmers did not belong to any producer group. Most of the cassava farmers in Mkuranga District are smallholder farmers who cultivate, on average 1-hactare cassava intercropped with other crops. The cassava farmers are critically constrained by low productivity of their activities; poor resources including human resource; and inadequate organization capacity, especially for the producer groups. Traders/wholesale/ bulk collectors Small traders play an important role in collecting cassava and delivering it to either retail outlets or ultimate consumers. These buy cassava in small quantities from farmers and sell it to retailers in Dar es Salaam. The traders use bicycles as the means of transport. In Mkuranga, most small traders collect cassava from farmers and deliver the cassava to household urban consumers and retail outlets such as street vendors and restaurants in Dar es Salaam. Wholesale or bulk collectors buy cassava in bulk quantities from farmers and sell it to retailers in Dar es Salaam. The traders use motor vehicles as the means of transport. They therefore play the role of bulkers in the marketing system. Two types of traders/transporters/bulk collectors were found in the Mkuranga cassava value chain. The first type consists of wholesalers who trade in dry cassava especially flour. One trader at Mbagala reported that he was buying cassava flour from Mkuranga District producer groups and sold the products to other retailers and household consumers. He also received cassava

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flour from other places including as far as Kigoma. The trader reported that unreliable supply of cassava flour, in terms of quantities and quality consistency, was the main problem in his cassava flour business. The second type of cassava wholesalers consisted of traders who dealt in fresh cassava. These traders were found in the main markets of Dar es Salaam such as Mbagala, Buguruni and Tandale markets. The traders have spaces in these markets for marketing their cassava products. They collect fresh cassava from farmers using motor vehicles and deliver the cassava to retailers and household consumers who come to buy cassava from the main markets. Cassava processors These constitute an important group in the cassava marketing system. They collect cassava from the farmers and process it into various products. Most of these processors buy semiprocessed cassava especially dry cassava chips from farmers and do the finishing. The Study Team had a discussion with one of the cassava processors in Dar es Salaam. The processor indicated that she receives cassava from Sululu-Bungu in Rufiji District. She reported that cassava supply from Mkuranga farmers was not reliable. She indicated willingness to participate in a program meant to facilitate cassava production and processing. Retailers Retailers present cassava and cassava products to the consumers in the smallest desirable quantities and in a convenient form and location. The major routes of cassava and cassava products retailed in Dar es Salaam include restaurants, supermarkets, shops, markets, chips “dume� traders, etc. They sell cassava to household consumers and consumers away from home. Shops and supermarkets are the common processed cassava outlets in Dar es Salaam. Retailing of cassava products in Mkuranga was found to be uncommon. Consumers These are the final users of cassava and cassava products. They are the main target in the marketing system, and all the other players work hard to satisfy the consumer. Three types of cassava consumers were identified. The first type constituted household consumers. Household consumers mainly buy cassava flour from shops and supermarkets for various home uses. The second type of consumers was the consumers away from home. The consumers normally consume various cassava products including cassava ugali (ugali wa muhogo); fried cassava chips; roast cassava; and raw fresh cassava. Most of these consumers are found in urban Dar es Salaam. The third type of consumers consists of users of the cassava products such as cassava flour and starch in producing other products such as gum, confectionaries, pharmaceuticals and animal feeds. These consumers are mainly found in Dar es Salaam.

4.2.2 Power relations Chain cooperation among the actors is important for sustainable chain development. Chain cooperation is a system where various institutions can benefit from each others’ operations. Effective chain cooperation depends on power relations among the chain actors. Some elements of power relations include chain vision on the need to cooperate; trust; joint

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actions and negotiation. Information management, quality management and innovation management are some of the important factors for equitable power relations. In cases where information asymmetries, quality and innovation problems are a rule, equitable power relations are difficult to find. Power relations in the Mkuranga cassava chain was evaluated based on who has the control over information, quality and innovations. Based on the assessment made during the study, chain cooperation between farmers and other market players was considerably inadequate. The players did not have common vision, trust, joint actions and negotiation. It was found that information sharing among the actors was generally lacking and farmers were the hardest hit of all. Farmers were standards and price takers as they were not ill informed of the prices and quality requirements in various markets. Moreover, value chains were found demand-driven or supply-driven. The key players in the value chain who control the chain were the traders (small traders and wholesalers) in Dar es Salaam main markets. The traders have information about the required type and quality of cassava needed by consumers through cassava retailers. The traders are responsible for the quality control of cassava before it is sold to the retailers, though evidence of a traceability system that traces products from the retailers to the field were not noted. Quality control is done by the buyers through sorting and grading during harvesting in the field. The products which do not meet their quality requirements are left with the farmers in the field. The lack of equitable power sharing was also enhanced by lack of commitment of the value chain partners to quality and consistence. The quality and consistence of the product seems to be crucial for fresh cassava marketing. The consumers have specific requirements regarding the quality of fresh cassava. These attributes include variety, size, maturity and shape. Our assessment shows that along the value chain, while the traders depicted high level of commitment to quality and consistence of product; little commitment was noted at the farmers’ level thereby jeopardizing their position in the chain. Due to lack of information farmers appear to operate on a guess work basis. Efforts will be needed to assist farmers to participate in the management of the cassava chain. This should involve helping to in the following areas: •

Information management: Farmers should be helped to keep records of the farm operations and traceability; and facilitate them with market information. Farmers should be trained on how to collect, interpret and utilize the information in price and demand forecasting and know when and how to produce and sell.

Quality management: Farmers should be assisted to identify planting materials for producing quality cassava, grading and quality control and certification.

Innovation management: Farmers should be enabled to acquire the necessary skills and technologies.

Facilitation of effective partnerships between them and the producers. The processors or/and wholesalers would be acting as the lead partners in the value chains, who would be responsible for identification of markets and through them the producers (business groups or associations) could indirectly access the markets at lower costs than individual small-scale producers would face. It is important to note that, the participation in value chains involves acceptance of terms defined by

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the lead agents or institutions, especially for those aiming to progress towards “higher� (technology, value-added) positions in the chain. The lead firms would play the role of upgrading, functional integration and co-ordination of activities of dispersed producers. The lead partners in collaboration with development facilitators (NGOs and the government) would facilitate the availability of technological information and learning-by-doing to producers.

4.3

ENABLING ENVIRONMENT

Assessment of the enabling environment described the existing policies rules, laws, regulations, norms and institutions v-s-v their role in supporting cassava value chains.

4.3.1 Policy framework Most of the policies related to production and processing of agricultural produce are documented in the Agricultural Policy (AP); the Cooperatives Policy (CP); the Sustainable Industrial Development Policy (SIDP), Small and Medium Enterprise Development Policy (SMEDP), Tanzania Food and Nutrition Policy (TFNP), and the National Trade Policy (NTP). In 1983, the government formulated its first agricultural policy, which among others, puts emphasis on production of food crops. To achieve this, the policy encouraged increased production through adoption of improved husbandry practices and use of improved varieties. It directed the undertaking of research on best varieties for improved yields and pest and disease control as well as the need for better transport facilities to assist in marketing and improved market outlets. In 1997, the government revised the agricultural policy. Regarding food production the policy placed emphasis on (i) enhanced production of high yielding and disease resistant varieties of crops, giving high priority to strengthening research, extension and small-scale irrigation; (ii) government assistance to the private sector to organize domestic as well as export markets for crops, while the government takes responsibilities in quality control, advocating for private sector to acquire capital for storage, packing and transport facilities and provide market information; and (iii) government in partnership with the private sector to support breeding programmes for crops. The second main policy is the Cooperative Development Policy. The policy seeks to develop co-operatives autonomous and member-controlled private organizations. The policy provides the framework for the restructured co-operatives to operate on an independent, voluntary and economically viable basis and to develop into centres for providing and disseminating agricultural inputs, implements, technologies and information. The Government of Tanzania launched Sustainable Industrial Development Policy (SIDP) in the mid-1990s, which articulates the framework for the country’s industrial development process within short, medium, and long-term perspective (URT, 1996). The SIDP systematically itemizes the motive of the government to utilize local resource endowment in order to: (i) encourage investment in industries utilizing local raw materials and inputs through incentive package within the Investment Promotion Act; (ii) establish public procurement mechanism at central, regional and district levels which will give preference to bids based on utilization of local resources and (iii) establish an effective inter-sectoral mechanism for procurement of locally produced raw materials by domestic industries. SIDP

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also recognizes the role of the private sector as the principal motor vehicle in carrying out direct investments in the industry. The Small and Medium Enterprise Development Policy (SMEDP) places specific emphasis on promotion of Small and Medium Enterprises (SMEs) through the following measures: supporting existing and new promotion institutions, simplification of taxation, licensing and registration of SMEs as well as improving access to financial services. The overall objective of SMEs Development Policy, therefore, is to foster job creation and income generation by promoting the creation of new SMEs and improving the performance and competitiveness of the existing ones, to increase their participation and contribution to the Tanzanian economy (URT, 2003a). The Tanzania Food and Nutrition Policy (TFNP) is also another important policy relating to food production and processing industry. The policy states that processed food can meet the nutritional requirements of the target group, if the following efforts will be put in place (URT, 1992): (i) adherence to appropriate procedures pertaining to food crop harvesting and storage before processing, (ii) the processed food should be well stored for the recommended period after processing, (iii) processing plants should be constructed near to or in the areas where the relevant crops are abundant to avoid destruction and loss of their nutritional quality due to transportation constraints and (iv) food quality and standards must be controlled. The issue of marketing of locally processed products is also given special consideration in the National Trade Policy (NTP) of 2003 (URT, 2003b; 2003c). Interestingly, NTP responds to and builds upon the internal economic reforms that have been under implementation since the mid 1980s, and the unfolding events on the international economic scene. The vision of the Tanzania’s trade policy is to transform the economy from a supply-constrained one into a competitive export-led entity responsive to enhanced domestic integration and opening up of wider participation in the global economy through national trade liberalization. NTP’s specific objective is to stimulate a process of trade development as the means of triggering higher performance and capacity to withstand intensifying competition within the domestic market. In designing the policies, institutions and laws, the Tanzania’s development agenda is focused on poverty reduction, high quality livelihood, peace, stability and unity, good governance, a well educated learning society and a competitive economy capable of producing sustainable growth and shared benefits (URT, 2025). There are several important national policy and development initiatives aimed at improving the livelihoods in Tanzania. The policy environment is influenced and guided by the Tanzania’s Development Vision (NDV) and the National Strategy for Growth and Reduction of Poverty (NSGRP). In line with the NDV and NSGRP the government aims at transforming the economy from an inefficient supply-constrained entity into a competitive market-led economy responsive to integration and supportive of meaningful participation in the global economy through strategic trade liberalization. In order to achieve this, sector policies and strategies have been developed to promote internal and external trade and markets. These include Agricultural and Livestock Policy and the Agricultural Development Strategy; Trade Policy; Land Policy; Education Policy and others; seek to promote a diversified and competitive agricultural sector, enhance efficient domestic production so as to achieve a long-term growth and development. They provide opportunities for improving food availability and accessibility, access to markets, reducing

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income poverty of both men and women in the rural areas and increasing access to social amenities such as clean water, education, health, good governance and the rule of law. One of the initial challenges in value chains development is how to translate the macroeconomic and sectoral policies into practical solutions at local level to ensure effective agricultural development in Tanzania. The registered macro-economic performance in recent years that has not resulted in poverty reduction is a demonstration of a miss-link between the macro, meso and local policy. Sectoral policies such as the Agriculture and Livestock Policy of 1997 and Cooperative Development Policy of 1997 need to be supported with a well functioning regulatory and administrative system at local levels to link the sectoral and the operational functions in agricultural production systems in Tanzania. Like other districts in Tanzania, Mkuranga District is implementing Local Governments Reforms geared to enabling the Local governments to perform their roles more effectively and efficiently. Being closer to the local communities, the Local Governments and Regional Administration are capable of influencing the rate and magnitude of socio economic development among the communities. For faster development of cassava sector, local governments have to adopt policies, practices and guidelines which are in line with various national policies governing agricultural marketing. The Mkuranga local authorities are charged with the responsibility to maintain a conducive environment for the growth of economic activities including the establishment and development of agricultural marketing systems. The challenges to Mkuranga local authorities are to make themselves realize that it is their responsibility to develop cassava marketing systems in their areas.

4.3.2 Legal framework The Tanzania government established laws, which govern different activities carried out within the food production and processing sub-sector, which aimed at protecting users of the products. These, among others, include regulations with regard to registration of processing and business premises, regulations related to licenses and permits of performing business activities and regulations pertaining to composition of food and food processing. The government has done wonderful job that provided several important pieces of legislation which are useful for cassava value chain development. The key legislations governing quality and food safety include the Plant Protection Act No.13 of 1997, the Tropical Pesticides Research Institute Act No. 18 of 1979, the Cooperative Act No. 15 of 1991, the Food Control of Quality Act No. 10 of 1978, the Seeds Act, 1973; the Tanzania Bureau of Standards Act No.1 of 1979; the Land Act No. 4 of 1999; and the Weight and measures Act; 1982. The main objective of the government legislation is to ensure quality and safety of food products destined for human consumption. Tanzania Bureau of Standards (TBS) has so far developed standards for edible cassava chips and edible cassava flour, which give specifications for condition of cassava roots for the production of cassava chips and flour, drying, taste and color, quality and contents. Standards for other products such as cassava for animal feeds and fresh raw cassava have not yet been developed.

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4.3.3 Organizational framework It should be borne in mind that the successful implementation of the afore-discussed policies and legal laws depends on well established coordination and collaboration mechanisms of various organizations at national and local levels. The major organizations which are vital actors in food processing at national level include government ministries such as Ministry of Industry and Trade (MIT); Ministry of Agriculture and Food Security (MAFS); Ministry of livestock and Fisheries, Ministry of Health; President’s Office, Regional Administration and Local Government (PO-RALG); and Ministry of Finance. Other institutions include Tanzania Bureau of Standards (TBS), Tanzania Food and Drugs Authority (TFDA), Non-Governmental Organizations (NGOs), Community-Based Organizations (CBOs), International Organizations such as United Nations Industrial Development Organization (UNIDO) and the private sector. TBS and TFDA are the most vital agencies that have direct impact on promoting the food processing sub-sector in the country, partly due to their responsibilities of enforcing food legislations and product quality control. Other important institutions are consumer protection agencies. Apart from the state owned agencies for consumer protection, some private initiatives could be identified including the establishment of Tanzania Consumer Advocacy Society (TCAS) in July 2007. TCAS is a non-governmental, independent consumers’ association which had been established with interest to promote, protect, disseminate, and advocate for consumers’ rights in Tanzania. It is an independent consumers’ voice whose intention is to forge strong Consumers-Private-Public-Partnership with all sectoral regulatory authorities existing in Tanzania, local and international non-governmental organisations to supplement government efforts on promotion and protection of consumers’ rights in Tanzania. The issue of consumer protection in Tanzania has become acute especially since the liberalisation of the Tanzania economy in the late 1980s. At the local level, various organizations are involved in rural development. There are various institutions that are involved in the facilitation of development in study areas. These include government institutions and non-governmental organizations. These institutions have overtime gathered experiences and information that can be useful for collective marketing development. Below is a brief description of the organizations. Regional and Local Governments: The Local Governments and Regional Administrations are charged with the responsibility to work towards the socio-economic development of the people through supporting the cassava industry development in their areas of jurisdiction (Table 14). Regional and Local Governments have vital roles in providing extension services and advisory services to farmers. In line with the recent government decentralization process, the Local Government Authorities are the major public service providers to the community and agricultural development. Mkuranga District implements agricultural development activities under the District Agricultural Development Plans. In the DADPs, Mkuranga District intends to boost cassava productivity and introduce modern processing of cassava. Non Governmental Organizations (NGOs): Both local and international NGOs are found in the district. International NGOs include VECO Tanzania, World Vision, CARITAS (Table 35). The specific roles of international NGOs in the livestock and agriculture industries are as follows: a) To supplement public and private sectors efforts in the development of agricultural sector;

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b) To support the disadvantaged groups in the agriculture industries to be able to participate in the food production, trade and markets and empowerment; c) To assist and be a catalyst through advocacy in the introduction of new technologies and new methods of organizing agricultural production and trade; to enabling the environment; and d) To contribute to the national efforts in the overall agricultural development.

Table 35: Types of partners and their roles in community development in Mkuranga District Type

Examples

Roles played

Areas for cooperation

Local government

District council

International NGOs

World Vision CARITAS VECO

Expertise on agriculture, livestock production, facilitation, monitoring and evaluation, supervision, community development, SACCOS, etc Expertise on agriculture and relief management

National NGOs

TAWLAE;

Research institutions

IITA SUA

Government programmes

TASAF

Training; Facilitation and awareness creation; Supervision; Monitoring and evaluation; Implementation of National Policies Facilitation development processes; Training; Extension; Inputs provision; Relief services; Water and health services; Help to orphans. Human rights; Environmental protection; Help to orphans and widows; Provision of credits; Training; marketing; HIV/AIDS relief services; Provision of business information. Training; Extension; Inputs provision; technology development. Financing; Training; Facilitation

Financial institutions

CRDB, NMB, Pride

Financing SACCOS

Services related to community mobilization, resource mobilization and management; coordination; identification and preparation of target groups; training; monitoring and evaluation, etc. Expertise on agriculture and marketing Expertise on financial management; project identification; implementation; monitoring evaluation Expertise on financial issues and SACCOS establishment and promotion

Local NGOs: Currently there are a number of local NGOs in Mkuranga District (Table 14). Some of these deal with gender, human rights, environment, advocacy, participatory development etc. The NGOs have proved useful in delivering services, assisting self-help groups, conducting adaptive research programmes and baseline and benchmark studies, and delivering inputs and development skills. In Mkuranga, NGOs have been particularly useful

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in the establishment of self-sustaining participatory institutions capable of promoting the required interaction between technologies and beneficiaries, an example being TAWLAE. In the implementation of cassava value chain development, VECO will have to collaborate with some of these institutions. VECO Tanzania has already identified 5 types of partners for cooperation during the implementation of the envisioned value chain development in Mkuranga District. The VECO Tanzania’s partner mix in Mkuranga is envisaged to be: (1) MVIWATA National (as there is not yet a MVIWATA Coast Branch) for farmer group capacity building and networking of commodity groups (2) TAWLAE for strengthening business farmer organizations, facilitation of agricultural chain development including multi-stakeholder processes (with backstopping from VECO Tanzania) (3) Agricultural department of the Mkuranga District Council for extension services and quality assurance, from sustainable agriculture perspective (4) CRDB Bank Coast Branch for providing funds to commodity groups and building capacity of commodity groups on financial education, credit management, saving and credit, constitution of SACCOs (5) SME, e.g. a Small- and medium-scale cassava processing plant at Kisarawe/Mkuranga/ Kibaha producing high quality cassava flour and other produce for the market, for contracting commodity farmers in a kind of out grower scheme and ensuring them with a market and sustainable income and maybe support on inputs such as quality seeds, and financial/credit facilities.

4.4 BUSINESS DEVELOPMENT SERVICES The assessment of business development services was split into three parts: an assessment of needs, an assessment of the demand and an assessment of the supply of BDS. In this connection, it is worthwhile to mention that the need for a particular service cannot be set equal to the demand for this service. For the chain actors to carry out their activities they need services.

4.4.1 Assessment of needs for business development services During the focused group discussions the following services were reported as being important to farmers: • Technical advice and extension • Technology search, transfer and adoption • Technical training • Business training • Business and entrepreneur advisory services • Marketing services • Legal services • Policy advocacy • Commercial credit services • Money transfer services • Savings & Credit Scheme support On top of these BDS, it was reported that farmers also need services related to business organization and institutional development, leadership training, gender, participatory

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approaches in community-based organisations and associations. The demand for these services is discussed below. Cassava technical and extension services These services are highly needed by farmers. Technical advice on cassva plating materials, processing, storage and extension were reported by farmers as the most important service they needed. Farmers need these services to adopt improved technologies (improved varieties, proper processing and storage practices) and propers cassava crop husbandry. Sustainable chains should continually be improving in terms of processes, products and functions. Production process upgrading is vital if farmers were to increase their income and participate in wider markets than at present. The farmers should be able to produce enough cassava quality output at the right time to interest buyers. To acquire a bigger share of the market, however, the farmers should also employ some aspects of product upgrading, functional upgrading and chain upgrading. Production process upgrading will only succeed if technical advice and extension services meet the demand. Technology search, transfer and adoption As part of the VECO programme, efforts will be made to upgrade the cassava value chains in Mkuranga. Cassava processing is seen as an engine for the development of cassava value chain. The main challenge in promoting cassava processing is how to create an effective processing industry. Processing technologies will have to be searched, transferred and adopted at farm and processors levels. At farm level technologies for initial processing activities (sorting, grading and processing of chips and starch) will be needed coupled with capacity building for farmers in terms of technical knowhow, supply of initial appropriate processing equipment, appropriate organization of their groups, and effective follow up by the key buyers in collaboration with the extension staff. Technology search, transfer and adoption services will also be needed by other actors especially processors. Another area of technology search, transfer and adoption relates to crop varieties. For improved production of cassava the use of existing and new cultivars will need to be made popular through an extended or expanded cassava multiplication programme. Generating more varieties while not extending those already available to farmers is not good enough. Interventions will involve facilitation of the use of appropriate cropping patterns to enhance fertility levels of the soil on which the crop is grown. Farmers need to be assisted to specify dominant cropping systems in each area and to identify the most probable package of agronomy operations that will best suit the growing of each particular set of crops in a mixture of species. Technical and business training These services were identified as needs for all the actors, except the consumers, which underlines the importance of this type of services. The demand for these services will be stimulated by the needs of the organised groups, business organization of cassava producers, which will run cassava collection and processing centres, and from processors. Cassava farmers and traders would benefit from business advice and training as well.

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Marketing and business services/business organization Improved markets and marketing would be beneficial for all the actors, and that explains the importance of marketing services. Again the question of who is prepared to transform the need into a demand? Cassava processors and retailers need marketing and therefore may require respective services, for which they would be prepared to pay. Simple, but innovative marketing strategies for producers and traders could ease the effects from seasonal fluctuations in production and supply of cassava. But will they come up with formulated demands and would such demands meet with a respective offer? A key element of marketing support is market information aimed to improving decision making among entrepreneurs. Farmers use information when developing production plans, making long-term investments, and deciding on when, where and how to market the products. Cassava market agents also use market information for good decision-making regarding pricing policy and distribution strategies. Information availability would help streamline the cassava trade, avoid any unfair distribution of returns and stimulate productivity. As pointed out above, farmers through their groups/organizations should be trained on how to collect, interpret and utilize the information in price and demand forecasting and know when and how to produce and sell. Lobbying Policy advocacy to change the policy environment in which the cassava sub-sector operates could affect cassava chain in a positive way. Actors at a district level, however would hardly engage themselves on such issues. They would not be prepared to demand for lobbying services on their own. However, the persistent outcry, from farmers, for improved financial and facilitation services are an indication of the need for lobbying services. During the FGDs farmers complained of unfavourable conditions from financial institutions. Facilitators such as VECO, TAWLAE and MVIWATA are the better placed organisations to get involved into the policy dialogue at the higher level. Actors will still benefit from this lobbying work, as long as they are organised at district and/or village level. Financial services Financial services in Mkuranga District were described as inadequate by farmers. It was reported that farmers need financial services to acquire capital for investment in improved technologies. The fact that VECO wishes to promote cassava chain, financial services are likely to be demanded by, not only farmers but also other actors including traders and processors. The chain actors are likely to start transforming their needs for financial into concrete demands and they may seek the direct link with commercial banks and microfinance institutions. The more important question here is if the conditions set by the banks and MFI will be conducive enough for the potential clients, so that they are in a position to transform the widely expressed needs for credit into concrete demands? As pointed out above, during the FGDs farmers were complaining of the stringent conditions set by SACCOs and banks for accessing their services. Human and institutional development One of the most interesting and promising areas of identified service needs relates to the field described as human and institutional development (HID). But as interesting and promising HID can be, most actors have yet to see the potential of HID and its benefit. It is

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therefore another field, where actors will only slowly come up with demands derived from identified needs. For instance farmers’ organizations are vital in improving the position of farmers in the value chain. Most of the farmer organizations were established as a gesture to access grants from TADENA, TAWLAE and others. If VECO wishes to succeed, these organizations need to either be abandoned or transformed, a demand which is unlikely to come from farmers.

4.4.2 Assessment of the supply of business development services Overall, a rather positive picture can be drawn about the supply side for BDS. There are good numbers of service providers in different fields, guaranteeing a satisfactory supply. A brief characterisation and appraisal of these providers is given hereunder. Government departments The government plays the main role when it comes to extension. Although the system has inbuilt structural weaknesses, and extension staff faces difficulties to operate as a result of limited resources, the influence and outreach of the governmental extension system should not be underestimated. No agriculture and livestock related fieldwork in Mkuranga District can be started and implemented without the coordination with the District Agriculture and Livestock Development Officer (DALDO). Therefore, especially in the interaction with cassava producers, the government’s involvement will be vital. In addition, the Local Government Reform Programme strengthened decentralised structures and gave more power to District Councils, which have increased their role as service providers. Training and research institutes Mkuranga District benefits from various training and research institutes. The International Institute for Tropical Agriculture (IITA) is one of the important instate which has been providing services to Mkuranga District. IITA provides training, extension, inputs and technology development services. Similar to IITA the Sokoine University of Agriculture has been providing training and research services to Mkuranga District. The university is currently running a project with the support of IDRC. The research is focusing on unlocking cassava value chain constraints. Other sources of expertise may include VETA. VETA is operating Integrated Training Entrepreneurship Promotion (INTEP) programme. VECO can explore the possibilities of linking the cassava chain actors to this opportunity. Projects and international NGOs The Study Team came occasionally across a few international and local organisations involved in cassava production. It was found that VECO was the most important international organisation that will be operating in Mkuranga to promote cassava. The other one of course is the IITA which as pointed out focuses on research. Local NGOs that were identified include TAWLAE and MVIWATA. TAWLAE has been operating in Mkuranga for sometimes and has gained experiences that will be useful for the VECO programme. MVIWATA being a nationwide organisation has experience in organising farmers. Both the TAWLAE and MVIWATA have been identified by VECO as important partners to work with.

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Private industrial sector The Study Team has not really seen the private sector companies large scale enterprises (LSEs) and small and medium enterprises (SMEs) as service providers. Services by this type of providers are anyway not very visible and not put into the forefront, as they come more as a by-product to the commercial (sales) activities. In the spirit of the VECO interventions the farmers will have to cooperate with the industrial sector. The two actors will have to work together so that farmers can be assured of the market while the industrial sector benefits from reliable supply of raw materials. When this stage is reached the industrial sector could be offering services to the farmers in terms of inputs distribution, technical advisory services, market information, financial/credit services, quality control and certification. BDS Companies (associations or private) Mkurang District has no BDS companies due to low demand for services from such providers. However, with support from VECO there is a surprisingly large number of BDS companies from Dar es Salaam which close to Mkuranga. The majority of these BDS providers work on commercial basis, which is one of the reasons why farmers do not benefit from them. MUVEK is one of these companies. MUVEK worked in Mkuranga in the past through the Tanzania Development Navigation (TADENA), a programme that was financed by DANIDA to support cassava production. Therefore, whatever services have been provided so far by these service providers, they were to a large extent (co-) financed by projects and NGOs. This fact should be kept in mind when devising strategies to involve these providers. Micro-finance institutions The findings of this study show that Mkuranga district is not well served by microfinance institutions. Records show that the only type of microfinance institutions in Mkuranga Distirct is consisted of SACCOSs which are facing lack of adequate deposits and capital. Records show that there are about 44 SACCOSs in the district. Efforts are needed to strengthen these societies so that they cans play their role as source of finances for farmers. Commercial Banks The study Team did not find a commercial bank branch in Mkuranga District. Currently NBC is establishing a branch which is expected to open this year. Since there has been a positive trend commercial banks to increasingly address micro-finance and develop microfinance products, various market actors will benefit from the services of this bank. The banks have become very open towards ‘small’ customers. Though they favour formal (licensed) businesses in their support to SME, the bank has all the potential to become partners for cassava chain actors in Mkuranga. Ways could be forged to link farmers with the bank through their buyers as small farmers are largely excluded from the activities of the banks.

4.5

BOTTLENECKS, BARRIERS AND LEVERAGES

The assessment of bottlenecks will help identifying strengths, weaknesses, opportunities and threats to cassava value chain development. The VECO Tanzania’s vision on Mkuranga

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cassava production is to achieve effective chain development. Traditionally, cassava is produced on small-scale family farms. The roots are processed and prepared as a subsistence crop for home consumption and for sale in village markets and shipment to urban centres. In recent years, smallholder farmers in Mkuranga are progressively shifting from the production for food consumption to production of cassava as a cash crop, primarily for urban markets. Cassava chain development faces some bottlenecks and barriers. During the field study a number of bottlenecks and barriers were identified. These bottlenecks and barriers include: • Inadequate access to cassava markets compounded by weak processing sector • Inefficient marketing systems, unfair competition, unreliable prices, unreliable market demand • Frequent policy changes and politics • Cassava disease outbreaks • Inadequate or weak producer organizations and poor coordination • Inadequate use of appropriate technologies for value addition especially processing technologies • Inadequate use of financial services. It was found that there are some leverages which could be utilized by the cassava chain actors to ease the bottlenecks and barriers. These leverages include the existing opportunities and strengths of the actors. These include: • The potential to develop value chain partnerships between farmers and other players; • Availability of huge potential demand in Mkuranga District and nearby markets. • Improved infrastructure; roads and communication technologies; the potential for establishing effective information systems and capacity building for market development • The potential for lobbying with religious leaders, communities, politicians and the government authorities. • Existence of research institutions such as SUA and IITA; availability of extension services. • Existence of National and International NGOS for facilitation of organization development for farmers • Availability of service providers (inputs, technologies, etc) and existence of research institutions such as SUA and IITA • Availability of financial institutions such as banks and microfinance, and the potential to promote community based financial institutions. These findings suggest that efforts are needed to help the cassva chain actors in overcoming the bottlenecks and barriers that actors are facing. The bottlenecks and barriers itemized above constitute the main dilemma for cassava value chain development in Mkuranga District. These are the internal constraints that limit access and utilization of assets available to the society; and impoverishing factors which push people into poverty. For effective chain development in Mkuranga District these will have to be addressed. It is important that VECO Tanzania capitalizes on the available leverages when implementing its cassava transformation activities in Mkuranga District.

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4.6

PRODUCTION RELATED ISSUES

The analysis of production was intended to assess the farming system, resource utilization and productivity.

4.6.1 Cassava farming systems in Mkuranga District Like in other places in the country, cassava production practices in Mkuranga District include land preparation, cultivation, planting, weeding, harvesting, transportation, storage and processing. Land preparation and cultivation is normally done by using bush knives to clear bushes and hand hoes to uproot the tree roots and shrubs and to till the land ready for planting. Although it is known for destructing biomass, which would otherwise become a source of soil fertility, and despite discouraging the practice of burning debris; it still takes place especially in newly established fields. The majority (99%) of the cassava farmers apply minimum land clearance and tillage of their fields. While this is one of the cost reduction strategies, minimum land clearance and tillage usually lead to low productivity and inadequate product quality. Minimally cleared and tilled land is always characterized by hard soils, shrubs and tree roots, low drainage and inadequate water filtration all of which are constraints to producing quality cassava. The respondent farmers were asked to describe their cassava planting practices. The respondents reported that most of the cassava farmers apply their traditional planting 9 systems. Most (99%) of them do not use the recommended spacing and planting 10 techniques . It was noted that most (99%) of the cassava farmers in Mkuranga find it costly, time consuming, irrelevant and tedious to implement the recommended planting systems. Reports on other related issues, especially spacing, show that many (99%) farmers practice intercropping cassava with other crops. What this implies is that with intercropping, it is somehow difficult to observe the recommended rates especially when more than one crop is intercropped with cassava. Weeding is one of the crucial activities for cassava production. Weeding is usually carried out using hand hoes and is done twice between planting and harvesting time. Sometimes weeding is done 3 to 4 times depending on the condition of weeds and time taken before harvesting. The effectiveness of weeding depends on the quality of land preparation, spacing, plants layout. The fact that most of the Mkuranga farmers apply minimum land clearance and tillage, traditional spacing and plants layout, achieving an effective weeding is normally difficult. Harvesting is another important farm operation. Hand uprooting is the mainly used harvesting method. This method involves pulling upwards the cassava shoots that come up with the cassava roots. In some cases some of the roots are left in the soil due to some difficulties in uprooting the cassava; thereby requiring a follow up dig out of the cassava roots using a hand hoe. It was learnt that about 25% of the cassava is always left in the soil, in which case the farmers have to dig them out using a hand hoe, if they required to 9

The recommended spacing is 1mx1m for early maturing cassava varieties; 1.5mx1m for late maturing cassava varieties. 10 The cuttings are supposed to be 30cm, with its base cut at 600 and planted at 450 in straight lines.

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harvest it all. Left over cassava in the soil can be a serious problem when hired labor is used and no follow-up is made to note the cassava left in the soil. A peak harvest season was reported to be between September and November when cassava is five to six months old. Regarding transportation of cassava from the field it was noted that cassava is normally transported using bicycles and motor vehicles, especially if the cassava is sold. For home consumption, most farmers transport cassava on foot using their heads and shoulders. Development of an effective cassava-processing and storage sector is important for sustainable development of the cassava industry. Cassava processing and storage in Mkuranga is considerably low. Traditionally, cassava has always been processed by farmers into “makopa” mainly for home consumption, with limited sales to local markets in Mkuranga. To improve the situation, some efforts were made to enable the farmers to integrate production with processing activities. These efforts include those of SUA TARP II Project, which provided training at Njopeka and Dunami Villages, on cassava processing. Other efforts were made by TADENA, which provided training to Mwanambaya villagers. TAWLAE also provided some support to the local communities by installing a processing plant at Sotele. The study has found that the cassava processing industry in Mkuranga has failed to take off due to lack of serious investors, inadequate managerial skills among the farmers, inappropriate corporate structures and lack of working capital. Cassava processing could be an ideal solution for utilization of cassava. The establishment of an effective processing industry is, however, limited by high initial investment costs, low level of cassava production and supply; and high cost of fuel. In addition, unavailability and high costs of packaging materials constitute potential bottlenecks to cassava processing in Mkuranga.

4.6.2 Resource utilization Respondents were requested to list all the resources they use in cassava production. The most important resources used in cassava production include: • Land • Labour both hired and family labour • Farm equipment such as hand hoe, panga, • Planting materials Land under cassava production The determination of land under cassava production was complicated by a number of factors the main one being the type of farming system practiced. Cassava production is usually intercropped with other crops. Secondly, what the farmers call an acre is questionable and varies from one producer to another as they use footsteps to determine land sizes, let alone the fact that some refer an acre to 70 by 70 footsteps, while other say an acre is equivalent to 65 by 70 footsteps. Respondents were asked to mention the size of their cassava plots. Table 36 shows the size of land under various uses. The table shows that the size of land plots allocated for cassava production ranged from 1 to 7 acres with a mean of 2.5.

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Table 36: Land under various uses Land uses

N

Land under cassava Land under other crops Land under trees

55 46 23

Minimum

Maximum 1 0 0

7 13 8

Mean

Std. Deviation

2.45 2.80 2.61

1.430 2.491 2.190

The table 36 also shows that for other crops households allocated on average 2.8 acres. The fact that most of the farmers practice intercropping, the same land reported for cassava could also be used for other crops. These findings confirm the results in Section 3.4.2. In this section Table 8 above shows that a larger proportion of the respondents (58%) owned between 1 and 5 acres while 22% and 20% owned between 6 and 10 acres and above 11 acres, respectively. From these findings it was suggested that to effectively utilize the small land holdings owned by the farmers, improved farm productivity through utilization of improved planting materials and use of appropriate farming methods will have to be advocated. It should be emphasized that for improved farming especially cassava production a certain level of investment will have to be done in land management. Labour use in cassava production Labour is needed for various production activities. As indicated in Table 5 households have an amount of economically active adults ranging from 0 to 6 persons with a mean of 3. Most of these EAAs are working in farming activities. None of the respondents indicated usage of hired labour. Although family labour is usually not paid for, the respondents were asked to estimate the amount of money that could be spent on hired labor so as to enable the valuation of labour used in cassava production. Based on these estimates the cost of labour used in cassava production was made. Table 37 presents the labour cost for cassava production cost, revenues and profit margins for farmers selling fresh cassava. Cassava farmers normally incur costs to cover production activities. Table 37 shows that the main activities in which labour was used include land preparation, cultivation, planting, weeding and harvesting. The cost estimates were based on the information provided by farmers.

Table 37: Labor cost for cassava production Item

Amount (Tshs) for one acre

Land preparation

16,708

Planting Weeding Harvesting Total

6,000 15,792 7,667 46,167

%

36 13 34 17 100

Table 37 shows that amongst the production activities, land preparation takes a lion’s share in the total labour cost followed by weeding and harvesting. In principle weeding should be done three times before harvesting. To reduce the cost of this activity most of the cassava

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producers weed once or twice. It is also important to note that, if cassava is sold to traders the cost of harvesting is usually born by the traders themselves. Farm equipment Hand hoe and panga were identified as the main farm equipment used in cassava production in the district. The assessment made in Section 3.4.3 Table 11 shows that 100% and 98% of the respondents reported to have hand hoes and panga, respectively. Based on the reports from the respondents on prices for productive tools Table 38 presents the average value of hoes and panga owned by the respondents.

Table 38: Average value of hand hoes and panga owned by respondents (Tshs) Parameter Maximum Minimum Mean Std deviation

Hand hoes

Panga

30000 2500 10836 6353

15000 0 4001 2437

Table 33 shows that the average value of hoes was Tshs 10,836 while the value of panga owned was Tshs 4000. Further analysis of the data shows that the respondents owned an average number of 3 hoes and 2 panga. Agricultural inputs In Mkuranga District, cassava production is a low inputs low output system. The farmers do not use fertilizers and pesticides. Important inputs include planting materials, communication and transportation. Farmers incur around Tshs 6,500 per acre for planting materials and Tshs 6,000 for communication.

4.6.3 Productivity Crop yield This is because the determination of productivity under smallholder farming systems faces some complications arising from the type of farming systems and the units used to measure acreage. Firstly, the majority of the cassava farmers practice intercropping of up to 4 crops in one field. This practice is likely to affect plant population in a given farmed area. Indeed, this study has found that the majority of the farmers had approximately between 700 and 1200 cassava plants in an acre. During the FGDs farmers reported that from one acre farmers could get 20 bags of 120kg each of cassava, which is equivalent to 2.4 tons per acre. These figures are lower than the official statistics. The available information shows that farmers in Mkuranga produce 4 tons of cassava from 1 hactare of land (MDC, 2007). With an average land under cassava of 2.4 acres (nearly 1 ha), the average household cassava production stood at 4000 kg. All in all, cassava productivity in Mkuranga District is considerably low calling for efforts to boost it.

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Profitability Table 39 presents the profit margins for farmers selling fresh cassava. Cassava farmers normally incur costs to cover production activities. Generally, the profit results suggest that cassava production is capable of yielding substantial income to many farmers in the study area.

Table 39: Profit margins for farmers (fresh cassava) on one acre Item

Amount (Tshs) for one acre

Production costs

46,167

11

6,000 6,417 58,584

Marketing costs Planting materials Total production and marketing costs Production (yields in kgs) Total revenues Profit margin Profit margin per kg Profit margins as % of unit costs * This is equivalent to 20 bags of 120 kgs.

2,400 100,800 42,216 18 72

The profit margin for farmers (Tshs 42,216) is equivalent to a per capita income of Tshs 9,595/= per acre which is approximately 4% of the Pwani Region’s per capita income (Tshs 245,49612). Generally, the recorded profit margins and costs suggest that for each 1 Tshs invested a return of Tshs 0.72 is realized implying that the returns to working capital for farmers are adequate to allow them to accumulate and re-invest limitations being the scale of operation and market accessibility. Table 40 presents costs, revenues and profit margins for farmers who were producing and 13 selling cassava chips . The table shows that for each 100 kgs of fresh cassava farmers could be able to produce 25 kgs of cassava chips which could give them a profit of Tshs 2,400, 14 which is slightly higher than Tshs 2000 in case farmers sell fresh cassava.

Table 40: Costs, revenues and profit margins for farmers (Cassava chips) Item

Amount (Tshs) per bag of fresh cassava

Amount (Tshs) per acre

11

Communication and transport According to NBS figures of 2005 13 Currently processing of cassava chips has stopped. Thus the information presented here are based on the experiences gained from the previous activities. 12

14

2000 Tshs = the profit indicated in table 16 as 33,416 Tsh divided by 20 (20 bags per acre)

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Cassava production

15

2,300 46,000

Processing

1,000 20,000

Packaging

300 6,000

Transportation

500 10,000

Labour for pealing, washing and drying

1,000 20,000

Total production and marketing costs

5,100 102,000

16

Production (kgs)

25 500

Total revenues

7,500

Profit margin

2,400

150,000

Profit per kg of fresh cassava Profit margins as % of unit costs

24 47

48,000 24 47

These results highlight the role played by value addition activities. By selling cassava chips instead of fresh raw cassava, the farmers would be able to increase their income from 1 kg of fresh cassava by approximately 41%. Though this is not to say that farmers should adopt full integration of cassava production with processing activities, they should be empowered to implement some initial processing activities, not only for earning income but also for improving the quality of products they supply and also extend the shelf life, reduce bulkiness and facilitate storage of the products before they are sold.

15 2,300 Tshs = the total production and marketing costs indicated in table 16 as 50,584 Tshs divided by 20 (as the yield is 20 bags per acre or 2,000 kgs per acre)

16

Assumed that 4 kgs of fresh cassava produce 1 kg of cassava chips; 5 kgs of fresh cassava produce 1 kg of flour

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5. CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS 5.1

CONCLUSIONS

We have given a detailed description of the various livelihoods, activities and outcomes in the study areas. The following are conclusions of the study: 1) This study strongly shows that most of the households in the study areas are generally poor in terms of vulnerability. Considering the vulnerability contexts and the status of the assets owned by farmers, most farmers have limited ability to absorb shocks. Indicators of low asset ownership include poor housing for nearly all the households interviewed, though this represents the majority of rural households experience in the developing world; inadequate ownership of crucial agriculturally productive tools; inadequate access by the households to the formal credit market; etc. 2) Although agriculture remains to be an important economic activity, diversification is taking place. The findings on livelihood strategies highlight two important issues; the need for diversification and the need for high levels of both production and productivity. These turn out to the important sources of sustainability of the livelihood sustainability. As part of the capacity building activities, VECO could include entrepreneurship skills development for the target groups to enable them pursue economic activities productively and implement balanced diversification. VECO should implement activities that would facilitate the provision to targeted and interested groups of producers, of services that will build their business skills and enable them engage with others in expand horizontally (diversify) and vertically (increase production and productivity). Particular emphasis should be placed on enabling the target groups access appropriate financial services, and undertake marketing and simple market analyses and plan production strategies and diversification that target the market. 3) Farmers are unsatisfied with their living standards. They feel unhappy with the state of autonomy and psychological wellbeing; degree of access to services, markets, institutions and information; degree of empowerment (being heard); food security; income security; literacy and access to education; vulnerability; physical wellness, health, access to respectful, health care; social integration, cultural acceptance. In view of this situation, an effort is required to improve livelihood assets and promote balanced economic activities so as to enhance these outcomes. 4) Cassava marketing system was found to be characterized by an enormous variety of actors, playing slightly different but often overlapping roles, which are distinguished by scale of operation, and buyer/seller clients they serve. Based on the assessment made during the study, chain cooperation between farmers and other market players was considerably inadequate. 5) Demand BDSs in Mkuranga District outsmarts the supply of the services and the quality of the few services that were available was also questioned. 6) Cassava production is characterized by inadequate farming practices, inefficient resource utilization and low productivity.

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5.2

RECOMMENDATION

The results of this study suggest that the interventions are required in many areas. The following are recommended: 7) Since farmers are generally poor in terms of vulnerability efforts to improve their livelihood should include measures to enhance their resilience. These measures include capacity building; facilitate access to financial services; facilitate access to extension services; access to inputs; access to information; linkages to markets, etc. 8) Promote diversification production and productivity through building activities, promotion of of producer groups and services that will build their business skills and enable them engage with others in expanding horizontally (diversify) and vertically (increase production and productivity). 9) Facilitate networking and partnership among farmers and other market players so as to enhance power sharing among them. 10) Promote and facilitate access to BDS by farmers as the demand BDSs in Mkuranga District outsmarts the supply of the services and also the quality of the few services that were available was questioned. 11) Promote proper cassava production husbandry, utilization of resources such as land, improved inputs, and planning for both production and productivity.

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Cassava chain in Mkuranga district, Tanzania: sustainable livelihood analysis and chain analysis