Rice commercialisation effects in Mngeta, Kilombero district, Tanzania: identifying the underlying factors
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Date
2021-08
Authors
Isinika, Aida
Mlay, Gilead
Mdoe, Ntengua
Boniface, Gideon
Magomba, Christopher
Kilave, Devotha
Journal Title
Journal ISSN
Volume Title
Publisher
Agricultural Policy Research in Africa
Abstract
Rice production is the most dominant farming system in Kilombero valley in Morogoro region, Tanzania, accounting for more than 80 per cent of cultivated land within the valley. This paper examines changes in rice commercialisation and livelihood outcomes for different categories of farmers in the Mngeta division, Kilombero District, Tanzania. Understanding the trajectory of agricultural commercialisation processes is an important step because it has a direct bearing on livelihood outcomes: income from commercialisation finances livelihood improving expenditures within households. Understanding the underlying factors of agricultural commercialisation therefore enables policy makers to ensure that policy interventions promote inclusive and equitable involvement of all farmers and other value chain actors, especially women and youths, who have been excluded from most development initiatives in the past.The paper is based on the premise that not everybody gains from agricultural commercialisation processes. Pathways of different farmer categories and other value chain actors differ due to variation in resource endowment and the choices they make in using available opportunity spaces. The paper uses data that was collected in two waves (2017 and 2019) from over 500 farmers in 10 villages within 30km of Kilombero Plantation Limited (KPL), a large-scale rice farm within Mngeta Division in Kilombero District. The study’s conceptual framework was set to test the assertion, promoted by the Southern Growth Corridor of Tanzania, that a large-scale investor, such as KPL would have positive technological spill over and market linkage effects to small-scale farmers (SSFs) and medium-scale farmers (MSFs) around them. Farmers’ commercialisation levels and corresponding livelihood outcomes were compared against the backdrop of village electrification as well as other public infrastructural investments (road, railway, communication infrastructure), which were found to have a positive influence on rice commercialisation. The rice commercialisation index (RCI) in turn, together with some household characteristics such as sex of the household head, age, educational level, household size and the area of the land holding among others influenced variation in farmers’ livelihood indicators including the multi-poverty index (MPI), food security and the minimum dietary diversity for women of child bearing age (MDD). During the first wave (2017), the analysis clearly showed that rice commercialisation was positively influenced by production intensification and area expansion (extensification). The same factors accounted for rice commercialisation variation among farmer categories during the second wave (2019). Although the interval between the two cross sections is too short to discern any trends in key variables, comparison between the two cross sections shows that rice commercialisation is not yet on a steady increasing trajectory. Across different farmer categories there is a general decline in the area under rice as well as in the use of some productivity increasing inputs, in particular purchased seed and organic fertiliser. There was also only a marginal increase in the use of some inputs and services (inorganic fertiliser, hired labour and tillage services and mobile money). However, there was a significant increase in the proportion of farmers using herbicides (+11.2 per cent) and a significant increase in the median volume of herbicides used per hectare (+22.4 per cent) as farmers substituted away from more expensive labour in rice production, especially for land clearing and weeding. There was also a significant increase (+5.6 per cent) in the proportion of farmers using tillage services, representing rice commercialisation by area expansion. All these changes were not gender or age neutral. While the mean proportion of farmers using various inputs remained lower for female-headed households (FHHs) relative to male-headed households (MHHs), the improvement made between the two waves was higher for FHHs compared to MHHs, an indication of the former catching up with the latter. This is encouraging, pointing to the need to continue pursuing polices that promote inclusive agricultural commercialisation for FHHs to accommodate the specific need of women and young farmers who tend to face more resource constraints. The combined effect of changes in the use of inputs and services resulted in a marginal decline in yield, volume of paddy harvested and RCI. The decline in RCI was particularly pronounced for sustainable rice intensification (SRI) members, which was attributed to termination of credit and advisory services from KPL since 2018, following closure of KPL’s farming activities in the study area. The decline in RCI is also reflected in the regression analysis where the coefficient for year of data collection is negative and very highly significant.Meanwhile, comparison of the MPI showed significant livelihood improvement across all farmer categories. The proportion of MPI poor households also declined significantly, especially among MHHs, MSFs and SRI members. Since there was a marginal decline in yield, paddy production and the volume of paddy sold, the improvement in livelihood indicators (MPI, food security and MDD) is explained by increased household income coming from the sale of other crops and non-income sources. Similar livelihood improvement was also observed in relation to food security and MDD. The decline in MPI has been associated with improvement in sanitation, improved quality of flooring in houses, reduced mortality among children under the age of five years and reduced deprivation in education for school age children.All these findings can be summed up into two key points. First, rice commercialisation in the study area has not yet reached a steady increasing trajectory. The RCI is still susceptible to productivity and production changes due to weather variations including those induced by climate change. For instance, excessive rain and drought have both been experienced in the region. Additional changes include changes in input use and market factors. Second, it is important that farmers have a diversified portfolio, such that income from rice production is complemented by income from other crops as well as livestock and non-farm sources such that household food security is assured while embracing environmental sustainability. In such a pursuit, inclusive commercialisation must remain central so that FHHs and younger farmers are facilitated to catch up as everybody faces an upward mobility trend in livelihood improvement. Women account for approximately 43 per cent of the world’s agricultural labour force. In Tanzania, women represent approximately 54 per cent of the agricultural labour force (Mmasa, n.d.), and a greater proportion of women than men (69.8 vs 64 per cent) work in agriculture (Idris, 2018). Moreover, studies have indicated that in agriculture women work up to 13 hours per week longer than men. Hence, if the world’s women farmers had the same access to resources as men, 150 million people could be lifted out of poverty (FAO, 2021). Different interventions are necessary to sustain rice commercialisation among FHHs and younger farmers. These include ensuring access to capital through various ways such as government loan guarantees and the Local Government Authority (LGA) revenue allocated to the Women and Youth Development Fund as well as other funding sources and services targeting women and youth.
Description
Working Paper
Keywords
Rice commercialisation, Mngeta, Kilombero