Tanzania - Agricultural and rural sector study (Vol. 2 of 3) : Annexes

Report No. 541a-TA FILE Cnmpy Tanzania Agricultural and Rural Development Sector Study (In Three Volumes) Volume II: Annexes December 10, 1974 General Agriculture Division East Africa Projects Department Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  US $1 = 7.14 Shillings (TSh) TSh 1 = US $o..14 1 millimeter (mm) = 0.039 inches 1 meter (m) = 39.37 inches 1 kilometer (kn) = 0.62 miles 1 hectare (ha) 2 2.471 acres 1 square kilometer (km ) = 0.386 square miles 1' ton (metric) = 2,205 lb (1,000 kg) 1 quintal (qq) = 100 kg 1 liter = 0.204 gallons ACA - Agricultural Credit Agency BRALUP - Bureau of Resource Assessment and Land Use Planning CATA - Cashewnut Puthority of Tanzania COMWORKS - Ministry of Communication and Labor CUT - Cooperative Union of Tanganyika DDC - District Development Council DDPC - District Development and Planning Committee DEC - District E&cecutive Committee SRB - Economic Research Bureau FFYP - First Five Year Plan GAPEX - General Agricultural Products Exports Corporation GEFCO - General Foods Company KILIMO - Ministry of Agriculture MCL - Mitchell Cotts Limited NAFCO - National Agricultural and Food Corporation NAPB - National Agricultural Products Board NBC - National Bank of Commerce NCCO - National Cold Chain Operption NDCA - National Development Credit Agercy NMC - National Milling Corporation NRHC - National Road Haulpge Corporation PMO - Prime Ministers Office RTC - Rural Training Center SFYP - Second Five Year Plan SIDA - Swedish International D3velopment Association STC - State Trading Corporation TAMTU - Tanzania Agriculture Machinery Testing Unit TANU - Tanganyika African National Union TASCO - Tanganyika Spinning Company TAT - Tobacco Authority of Tanzania TCA - Tanzania Cotton Authority TCB - Tanganyika Coffee Board TCCC - Tanganyika Coffee Curing Company TCGA - Tanganyika Coffee Growers Association TDB - Tanzania Dairy Board TECO - Tanganyika Extract Company TFA - Tanganyika Farmers Association TFC - Tanzania Fertilizer Company TFNC - Tanzania Food and Nutrition Center TLMC - Tanzania Livestock Marketing Company TPB - Tanganyika Pyrethrum Board TPC - Tanganyika Planting Company TPL - Tanganyika Packers Limited TRDB - Tanzania Rural Development Bank TSA - Tanzanie Sisal Authority TSC - Tanzania Sisal Corporetion TSDC - Tanzania Sugar Development Corporation TTA - Tanzania Tea Authority TTRW - Tanganyika Twine and Rope Works UCSC - Unified Cooperetive Service Commission UFI - Ubungo Farm Implement Manufacturing Company  TANZANIA AGRICULTURAL AND RURAL DEVELOPMENT SECTOR STUDY TABLE OF CONTENTS Page No. BACKrGROUND DATA SUMMARY ANTD CONCLUSIONS I. INTRODUCTION .................................. 1 II. DEVELOPNENT OBJECTIVFS .............2.......... 2 III. RURAL INCOME . .................................. 6 IV. PRODUCTION OPPORTUNITIES ......... .. ........... 13 A. Production Potential .... ................. 13 B. Demand Prospects ......................... 17 C. Production Priorities .... ................ 19 V. FARMERS' INCEN4TIVES ........... .. .............. 30 A. Price Policy ............................. 30 B. The Rural Structure (Ujamaa Village Approach)34 VI. PUBLIC SERVICES ......... ...................... 38 A. Research and Extension ......... .......... 39 B. Marketing ................................ 40 C. Input Distribution and Credit .. .......... 42 D. Transportation ............. .............. 45 E. Coordination of Implementation ........... 45 VII. MANPOWTER DEVELOPMENT ....... ................... 49 VIII. INVESTtIENT PROGRAM ....... ..................... 54 A. Punctional Distribution ......... ......... 54 B. Regional Distribution ......... ........... 55 C. Type of Projects ............ ............. 55 D. Crop Development ...nt..................... 56 E- Livestock Development . .60 F. Summary ... . ... 63  TABLF, OF CONTENTS (Cont'd) Page No. IX. PRODUCTION AND INCOME ESTIMATES ...... ......... 71 X. POSTSCRIPT .................................... 77 T7XT TABLFS 1. Agricultural Income: Some Case Studies .10 2. Crop Production .11 3. Per Capita Agricultural GDP, 1967-73 .12 4. Offtake from the National Cattle Herd, 1969-72 12 5. Soil and Rainfall Conditions by Region .23 6. Population Carrying Capacity by District .24 7. Returns to Land and Labor in Smallholder Production of Selected Commodities .25 8. Percentage Contribution by Region to Marketed Production.. .26 9. Domestic Food Commodity Requirements .27 10. Export Price Forecasts .28 11. Commodity Priorities .29 12. Prices and Marketing Margins for Some Selected Coniodities .37 13. Institutional Framework .46 14. Recovery of Fertilizer Subsidy; An Illustration 47 15. Marketed Ouantities of Agricultural Produce by Reg,ion and TMonth, 1972 .48 16. Agricultural and Veterinary Staff, June 1972 52 17. Estinatee Output from Agricultural Training Institution, 1972-80 .53 18. Functional Distribution of Development Expenditure ..65 19. Model Development Sequence .66 20. Regional Characteristics .67 21. Proposed Development ProRram, 1975-80 .68 22. Public Sector and Cooperative Investments in Agriculture, 1969/70 - 1974/75 .69 23. Additional Technical Assistance Requirements 70 24. Production Estimates, Export Commodities, 1975 and 1980 ......... ............................. 73 25. Self-sufficiency Requirements, 1980 .... ....... 74 26. Smallholder Gross Agricultural Income, 1972 and 1980 ...................................... 75 27. Agricultural Imports and Exports, 1972 and 1980 76  Volume II - ANNEXFS 1. Domestic Demand for Agricultural Cowmodities 2. Commodity Analysis 3. Agricultural Services 4. Farm Mechanization 5. Agricultural Marketing 6. Input Supply and Credit 7. Ujamaa - A Tanzanian Approach to Rural Transformation 8. Roads and Road Transport 9. Regional Planning 10. Manpower Planning 11. Rural Small Scale Industry 12. Agricultural Pricing Volume III - STATISTICAL A_4EX_ BIB LIOGRAPHY_ MAPS AND CHARTS STATISTICAL ANNEX TABLES 1. Population, Rural Labor Force and Wage Employment, 1963-1973 2. Population by Region, 1964-1974 3. Regional Area and Population Distribution, Population Density and Growth Rates 4. Gross Domestic Product at Factor Cost by Industrial Origin, 1964 and 1968-1973 5. Gross Domestic Product per Capita by Region, Selected Years 6. Regional Shares of Gross Domestic Product at Current Factor Cost, 1967 7. Social Service Indicators by Region, 1971 8. Development of Rural Wlater Supplies, 1963-1972 9. Distribution of Medical Facilities by Region, 1972 10. Number of Public Primary Schools by Region, 1965 and 1969-1972 11. Primarv School Enrollment,p 1965 and 1969-1972 12. Ujamaa Population and Number of U amaa Villages by Region, 1970-1974 13. Roads of Different Categories by Region, 1967 and 1972 14. Type of Road by Region 1967 and 1972 15. Industrial Establishments in Rural Areas, 1970 16. Volume of Imports, Exports and Net Trade of Selected Agricultural Commodities, 1969-1973 17. Agricultural Imports, Exports and Net Trade, 1969-1972 18. Food Balance Sheet, 1972 19. Assumptions Underlyinm the Food Balance Sheet 20. Domestic per Capita Food Demand 1972 Estimated, 1975 and 1980 Projected 21. Projected Nutrient Consumption, Recommended Consumption and Nutrient Deficit 1972, 1975 and 1980  - iv - 22. Dorestic Food Cormodity Utilization, 1972 Estimated, 1975 and 1980 Projected 23. Land Use by Region 24. Estimated Area UJnder Irrigation, by Region 25. Mean tfaxinum and Miniium MIonthly Temperatures, Main Meteorological Stations 26. Marketed Production of Main Cash Crops, 1962-1973 27. Marketed Production of Main Food Crops, 1964-1972 28. liarvested Production of Food Crops by Region, 1972 29. Use of Fertilizers, by Crop, 1972/73 30. Research Institutes and Crop Research Program 31. Livestock Population 32. Cattle Population by Region, 1972 33. Production and Import of Day-old Chickens 34. Producers' Purchase of Day-old Chickens by Region, 1972 35. Offtake from the National Herd, 1968-1972 36. Agricultural Marketing Parastatals 37. Parastatal Organizations Related to the Agriculture Sector 3R. Producer Prices of Selected Agricultural Commodities, 1968-1974 39. Export Prices of Selected Cormodities, 1960 and 1966-1973 40. Index of Retail Prices and Cost of Living, Dar-es-Salaam, 1964-1972 41. Estimated Vehicle Operating Costs and Rates for Road Transport, Selected Routes, 1969 42. Estimated Vehicle Operating Costs for Different Road Surfaces and terrain, 1971 and 1973 43. Growth in Government establishment, 1963-1972 44. EmDloyment in Cooperative Unions, 1972 45. Localization of Senior Positions in Parastatal Organizations in the Agriculture Sector, 1972 46. Non Citizens Employed by Parastatal Organizations in the Agricultural Sector by Occupation, 1972 47. Planned Enrollment and Outputs from Agricultural and Veterinary Degree, Diploma and Certificate Courses, by Institution 1972-1980 48. Ministerial and Regional Development and Recurrent Budget 1972/73 - 1973/1974 49. Regional Development and Recurrent Expenditure on Agriculture, Education, Health and W4ater, 1972-1973 50. Regional Development and Recurrent Expenditure on Agriculture, Education, Health and Water, 1973-1974 51. Regional Development Expenditure on Agriculture, Health and Water 1974-1975 52. Number of Holdings and Farm. Size Distribution by Region 53. Crop Cultivation by Region  BIBIUOGRAPT Y MAPS IBRD 10794 Relief and Physical Features TBRD 2802R2 Reoions and Districts IBRD 2803R fean Annual Rainfall IBRD 2804R Potential Land Use IBRD 2915R1 Main Livestock and Cropping Regions IBRD 10799 Aoricultural Research and Training Institutions IBRD 10793 Agricultural Project Locations IBRD 10855 First and Second Livestock Development Project CHARTS 8182 (R) Rainfall at Selected Sites 8524 Regional and District Administration 8525 The Planning Process 8522 Ministry of Agriculture 8523 Prime Minister's Office   ANNEX 1 Page 1 TANZANIA AGRICULTURAL AND RURAL DEVELOPMENT SECTOR STUDY Domestic Demand for Agricultural Commodities A. Domestic Food Demand Public Efforts to Improve Human Nutrition 1. Several Government Ministries are engaged in work on various aspects of human nutrition in Tanzania, but coordination of such efforts is weak. The Ministry of Health operates a central Human Nutrition Unit and a School of Human Nutrition and is the main governmental body concerned with human nutrition. Research and planning activities - particularly concerning food supply - are carried out on a small scale in the Nutrition Section of the Ministry of Agriculture. The overriding importance of improving nutrition standards in Tanzania has been fully recognized and, as a first step, the Government (with SIDA assistance) is considering setting up the Tanzania Food and Nutrition center (TFNC). The main task of TFNC would be to provide sup- port for the work of all Ministries and non-governmental organizations in- volved in aspects of nutritional improvement. 2. Even though the Human Nutrition Unit of the Ministry of Health has been in operation since 1965, the amount of information gathered to date is inadequate for comprehensive planning in the nutrition sector. This work has, however, contributed to an understanding of the degree of existing malnutri- tion and has confirmed the fact that its incidence is very unevenly distributed throughout the country. Surveys in five regions show that combined protein calorie deficiency (PCD) is the most common form of malnutrition. Affliction with PDC syndromes, as found in the surveys up to 1969, is shown in Table 1.1. Table 1.1: PROPORTION OF TANZANIAN POPULATION AFFECTED BY PCD Region and Pre-School All Survey Year Children Ages ------------------percent-------------- Coast (1965) 7 31 Dodoma (1965) 4 22 Tabora (1967) 1 8 West Lake (1967) 3 12 Kilimanjaro (1968) 5 26 Source: M. Mzingi, Nutrition Activities in Tanzania as Carried Out by the Ministry of Health, Seminar Report, Morogoro, 1973.  ANNEX 1 Page 2 3. Regional differences in nutrition are largely due to differences in local availability and quality of food stuffs resulting from varying climatic conditions throughout the country. Seasonal availability of foods also in- fluences the dietary pattern. The Tanzanian diet is made up mostly of carbo- hydrates, and the staple foods are cereals such as maize, rice and to a lesser extent, millet, sorghum and wheat. Other starchy staples consumed are cassava (in the savannah zone) and plantain, bananas or potatoes (in the highlands). Livestock products are an important source of protein in areas where livestock are raised. Legumes and edible oil seeds also supply valuable protein, parti- cularly in areas where livestock production is less well-developed and fish are not available. 4. Public efforts to improve nutrition in rural areas have in the past mainly consisted of measures to stimulate subsistence production and dietary education. Expansion of commercial food production has been slow and insuf- ficient to adequately feed the small but growing non-rural population. In- creasing attention has focused on possibilities for improving nutrition through improvements in the food distribution system. Thought has also been given to supplementing and fortifying rural diets by means of centrally organ- ized food programs, but no concrete proposals have as yet materialized. The Food Balance Sheet 5. The composition of the food supply can be conveniently summarized in a national food balance sheet, even though such a balance sheet is not parti- cularly relevant for nutrition planning since it does not show regional or age group variations in nutrient intake. Food balance sheets are also useful for projecting aggregate requirements of food which can be translated into implications for agricultural production. Food balance sheets for Tanzania have been compiled by various sources for past years, but these are not re- liable because of the very poor data base. 6. In order to provide a framework for assessing domestic demand pro- spects for food and their ramifications for human nutrition for the Plan period 1975-1980, a food balance sheet was prepared by the mission for 1972. This balance sheet reflects the latest available information on domestic pro- duction and external trade, but its accuracy and completeness are also limited by data deficiencies. Technical coefficients are generally based on FAO estimates, with a number of revisions suggested by mission members. 7. Table 18 of the Statistical Annex shows the supply and disposition of foodstuffs, as well as per capita availability for 1972; the underlying technical assumptions are shown in Table 19 of the Statistical Annex. The average daily intake per person as derived from that Table was 2,009 calories, 52.0 grams of protein and 33.2 grams of fat. Cereals accounted for 42% of total calorie intake, with maize contributing the biggest share (28%). Starchy root crops and bananas accounted for 29% of total calories. Cereals also pro- vided 43% of total protein supply, followed by pulse, nuts and seeds with 16%. Minimum requirements of nutrient intake are not known, but recommendations by experts are around 2,300 calories and 61 grams of protein per person per day. Nutritional levels in 1972 were thus 10-15% below the recommended standards.  ANNEX 1 Page 3 The Prospective Demand for Food 8. Within the context of this sector study, the pr-imary concern is to evaluate prospective demand for foods rather than to develop a nutrition plan for the country. The analysis is therefore not aimed at determining what the population ought to be consuming in the future to satisfy given nutritional standards, but at estimating what the likely consumption will be given certain established tastes and expected increases in purchasing power and keeping in mind the need for improvement. 9. It is estimated that in 1972 about 54% of the gross agricultural sector product was accounted for by subsistence production. If the major export crops are deducted from total sector product, subsistence production amounted to nearly 72% of the remaining portion. On-farm consumption of food varies among crops. Studies have shown that the marketed production in sub- sistence agriculture is to a large extent determined by the size of the crop, the cash requirements of producers, the size of the cash income derived from various sources, and the demand/price situation in the commercial sector. Consequently, farmers' home consumption may fluctuate considerably. 10. As it was not possible in this analysis to differentiate between subsistence and other consumers because of the scarcity of available data, global food consumption projections were made. These were based on prospec- tive economic demand generated by the growth of the economy as a whole. While this approach yields a reasonable overall forecast - since the relation- ship between subsistence agriculture and the rest of the economy is not going to change significantly over the next few years - it nevertheless conceals important aspects of differential demand growth between rural and urban areas. The marketing implications of the more rapidly rising urban requirements, for example, do not become immediately apparent. 11. The prospective domestic demand levels for 1975 and 1980 have thus been estimated by projecting the 1972 food balance sheet to reflect popula- tion growth and income motivated consumption changes. The results are shown in Table 20 of the Statistical Annex. Two of the crucial assumptions under- lying these projections are that relative prices will remain as in 1972 and that there will not be a change in consumption habits due to exogenous non- economic factors. The growth parameters used in the projections include: Population 1970 13.28 million 1972 14.00 million 1975 15.18 million 1980 17.50 million  ANNEX 1 Page 4 Annual growth rates per capita in 1970 constant terms: GDP Private Consumption Expenditures (PCE) 1970-1975 1.9% 1.4% 1975-1980 2.3% 1.6% 1970-1980 2.1% 1.5% The income elasticities of demand used in the analysis are hardly more than guesses, as there are no comprehensive studies on the subject. The Tanzania household budget survey has not yielded any usable results on elasticities, and FAO assumptions 1/ were used as a guide for estimating elasticity values. 12. Based on these assumptions, it has been calculated that there would be a total increase in per capita consumption of 6.6 percent for calories, 9.2 percent for protein, and 8.4 percent for fat between 1972 and 1980. The animal portion of total intake would rise from 9.9 to 10.6 percent for calories and from 27.3 to 28.9 percent for protein. 13. An evaluation of the nutritional sufficiency of the projected demand levels is presented in Table 21 of the Statistical Annex. The main feature of this evaluation is that the aggregate food supply in 1980 would still be inadequate from a nutrition standpoint, although it would be relatively better than in 1972. The caloric deficit would decline from 889 billion calories in 1972 to 673 billion in 1980, or from 8.0% of requirements to 4.7%. The shortfall in protein would decrease from 50,589 tons in 1972 to 48,089 tons, or from 16% of requirements to 11.7%. The relative decline in nutrient defi- cits is smaller for the 1972-75 period than for 1975-80 because of the higher assumed income growth for the latter period. 14. From a policy point of view, it must be noted that the indicated improvement in aggregate nutrient consumption would be significant. Further improvement would, however, require Government action, largely in the form of supplementing consumers' purchasing power. In the absence of surplus pro- duction at existing prices, it should be borne in mind that the general lower- ing of food prices would not appear to be a feasible solution, as a higher effective demand might then be confronted with shortages in production. 2/ Importation of food must be considered against the general background of Government's goal of self-sufficiency and within the context of comparative costs of specific items. Measures aimed at income redistribution, particu- larly in the regional context, would likely lead to a net increase in food consumption due to higher prevailing income elasticities of demand for food among poorer consumers. 1/ FAO, Agricultural Commodity Projections, 1970 - 1980, Volumes I and II, Rome, 1971. 2/ If an average price elasticity of demand for calories of -0.6 is assumed, average food prices would have to decline by 7.8 percent to raise caloric demand to sufficiency level. Similarly, assuming an elasticity of -0.8 for protein, food prices would have to drop by 14.6% to create an effec- tive sufficiency demand.  ANNEX 1 Page 5 15. In summary, nutritional deficiencies cannot be entirely eliminated during the Third Plan period merely by increasing output at current cost of production. Unless there is an increase in consumers' purchasing power, the population will simply not demand the necessary quantities or diet composi- tion to bring their level of nutrition up to desirable standards. Rural consumers are particularly vulnerable as rising cash needs generated by in- creasing purchases of non-food consumer items are often met by curtailing consumption of home grown foods so as to be able to sell a larger portion of their crop. It is essential, therefore, to raise productivity in the subsis- tence sector if the overall standard of living of the rural population is to be raised. Domestic Food Demand and Prospective Supply 16. The projected food budgets can be translated into aggregate commodity requirements. If requirements for food and seed as well as wastage are added to prospective food uses, an estimate of domestic utilization can be obtained. Such estimates are presented in Table 22 of the Statistical Annex. It should be noted that an item-by-item projection has been made, and the results thus reflect the historic food budget composition. For planning purposes, this exercise is only useful as a starting point. The projections (the validity of which depends on the underlying assumptions) indicate that aggregate domestic demand in 1980 will exceed the 1972 demand by 31% for cereals; 25% for starchy foods; 36% for pulses, nuts and seeds, and for vegetables; 31% for fruits, 48% for meats and 37% for dairy products. 17. These projections differ from some of the existing forecasts in Tanzania in that most of the latter are based on recent trends. Some of these trends are in sharp contrast to the above assumptions and defy explanation with the available information. In a strictly controlled economy, statistical data may not accurately reflect the real demand situation as backlogs of effective demand may build up and distort historical consumption trends. The basic pro- jections presented here need to be adjusted, therefore, as additional informa- tion becomes available. To illustrate this point, the projected demand for sugar seems understated in light of recent surges in demand. As soon as it becomes apparent whether there has been a real shift in demand or whether cer- tain factors have only temporarily inflated domestic requirements, the pro- jections in this report will have to be revised upward or the trend forecasts adjusted downward. Generally, the Mission's economic demand projections fall below recent trends. 18. Aside from "fine-tuning", it is necessary to verify the technical feasibility of supplying the projected quantitities. If these quantities are unlikely to be forthcoming, alternatives for providing the projected nutrient levels must be identified. Furthermore, an attempt should be made to increase the supply above projected levels within the existing financial budget con- straint. In practical terms, if the commodity composition can be changed in such a way as to keep the farm value and the retail cost constant but to raise  ANNEX 1 Page 6 the nutritional value, a true economic benefit can be gained. The former con- dition is necessary to guarantee production, and the latter to maintain effective demand. The projected levels of demand merely show the historically most likely alternative (from a consumer point of view) to satisfy future requirements. 19. The rapidly rising food requirements have in the past been met to a certain extent through increased imports. However, recent developments in the world market for staple foods point toward increasing volatility in that market and, hence, greater risks for importing countries. This does not mean that there are no more advantages to be gained from international trade, how- ever, and import substitution policies must be carefully studied and constantly reviewed. 20. Two partly interrelated aspects of major importance in nutrition planning and food marketing have not been covered. These are the general skewness of the distribution of individuals' nutrient intake around the average depicted in the food balance sheets, and regional problems arising from the geographical non-conformity of production and demand for individual food items. Even with adequate total supplies, Tanzania would still have a serious nutri- tion problem today because of bad eating habits and the poor marketing system. An improvement in the latter is a prerequisite for raising efficiency in agri- cultural production as well as nutritional standards of the Tanzanian popula- tion. B. 'Domestic Demand for Non-Food ARricultural Commodities 21. Only relatively small portions of these commodities are at present consumed domestically and, except for cotton, this situation is not expected to change drastically. Even though domestic consumption has been rising at a rapid rate, exports still account for the major part of production. In the case of raw materials for manufacturing use, domestic consumption will depend on Government's industrialization policy. 22. Projected domestic demand for coffee, tea, tobacco and cotton is shown in Table 1.2. No projection has been made for sisal because most of the sisal processed in Tanzanian manufacturing plants will be exported as ropes and other products rather than used domestically. The entire pyrethrum crop will also continue to be exported as pyrethrum extract.  ANNEX 1 Page 7 Table 1.2: DOMESTIC CONSUMPTION OF SELECTED NON-FOOD COMMODITIES, 1970 AND 1972 ACTUAL, AND 1980 FORECAST Domestic Consumption Actual Domestic as a Percentage of 1980 Consumption Consumption Marketed Production Forecast 1970 1972 1970 1972 Mission Tanzania Sources ----- tons --- ----- percent ------ ----- tons ----- Coffee 785 1,281 1.6 2.5 2,300 3,000 Tea 1,900 2,230 22.3 17.6 3,600 4,500 - 5,000 Tobacco 2,438 3,458 22.2 24.4 5,400 6,200 - 7,400 Cotton Lint 6,300 8,500 8.2 10.7 27,700 27,700 Source: Mission estimates and Market Development Bureau. 23. Very high rates of growth of domestic consumption are expected by Tanzanian authorities for coffee, tea and tobacco. The Mission expects a slower growth and has produced a more moderate forecast. As these are non- essential commodities from a nutritional point of view, it would be in the country's interest to restrain domestic consumption and maximize exports. In the case of cotton lint, Government's own estimate of requirements for domestic textile mills has been accepted as realistic.   ANNEX 2 Page 1 TANZANIA AGRICULTURAL AND RIJRAL DEVELOPMENT SECTOR STUDY Commodity Analysis A. Export Crops Coffee 1. Tanzania grows both arabica and robusta coffees. Mild arabica accounts for about 75 percent of total production, robusta 20 percent and hard arabica 5 percent. The main producing areas are Arusha, Kilimanjaro and Mbeya Regions for mild coffees, and West Lake Region for robusta; the total area planted with coffee trees is estimated at 86,000 ha. Yields~ vary between 600 and 1,250 kg/ha of clean coffee for arabica and 500 - 1,500 kg/ha for robusta, depending on growing conditions and management. Robusta coffee is almost exclusively grown on small holdings by peasant farmers, while approximately one-third of mild coffee is produced on large coffee estates. Production and sales of coffee are shown in Table 2.1. 2. The stagnant production over the past several years is attributable to various factors. Tanzania's last effective quota under the presently defunct International Coffee Agreement was 42,000 tons and excess production had to be sold to non-quota markets at lower prices. Diversification efforts were underway to promote production of other crops and livestock in coffee growing areas and to curtail the growth of coffee production. Recently1, coffee berry disease (CBD) has adversely affected production in the Arusha and Kilimanjaro Regions. Table 2.1: COFFEE PRODUCTION AND SALES, 1966-1972 Coffee Board Sales Production Mild Hard Export Mild Hard Total Volume Price Volume Price Volume Value Percent