Economics of Indigenous Fruit Tree Crops in Zimbabwe

Economics of Indigenous Fruit Tree Crops in Zimbabwe Von dem Fachbereich Wirtschaftswissenschaften der Universität Hannover zur Erlangung des akademischen Grades Doktorin der Wirtschaftswissenschaften − Doctor rer. pol. − genehmigte Dissertation von: Dipl.-Ing. agr. Dagmar Mithöfer geboren am 10.03.1972 in Remscheid 2005 Erstgutachter: Prof. Dr. Hermann Waibel Lehrstuhl Entwicklungs- und Agrarökonomik Fachbereich Wirtschaftswissenschaften der Universität Hannover Zweitgutachter: Prof. Dr. Dr. Andreas Löffler Lehrstuhl Banken und Finanzierung Fachbereich Wirtschaftswissenschaften der Universität Hannover Tag der Promotion: 21.12.2004 iii Acknowledgements I would like to thank the many individuals who have contributed to this study. Most importantly, the farmers of Ward 16, Murehwa District and Takawira Resettlement Area, who took great interest in the study, shared their knowledge and patiently answered many questions. Their hospitality made me feel at home and made for a memorable time. Without them, this study would not have been possible. I would also like to extend my thanks to my field assistants Gamuchirai Mazana, Virginia Mandikisi, Portia Diza, Nikiwe Soka, Exevier Sambureni, Gaudencia Mangiroza, Munyaradzi Magwaza and Isaac Gurambwa for their dedication and interest in the work. I am grateful for the assistance of the AGRITEX staff members in Murehwa and Mvuma, who facilitated this survey. My appreciation also goes to Dumizani Siziba and Svenja Küntzel, who entered data. At ICRAF, I would like to thank Dr. Elias Ayuk and all the other staff members for providing scientific advice, knowledge of indigenous fruits and the Zimbabwean small-scale farming system, and technical support during the fieldwork. “Life is never easy” − but with their assistance, fieldwork continued even during the diesel shortages in the beginning of 2000. I am very grateful for the valuable comments of Dr. Festus Akinnifesi, Dr. Freddie Kwesiga, Irene Kadzere and Jarret Mhango on my research. At Hannover University, I am indebted to my colleagues for their constant support as well as their valuable advice and cheerful comments whenever required. Most importantly, I would like to thank my advisor, Prof. Dr. Hermann Waibel, who gave me the opportunity for this research and provided valuable comments and ideas throughout the project. I am very grateful for the opportunities to present parts of the research at several conferences, from which I benefited greatly. I highly appreciate Dr. Justus Wesseler’s (Wageningen University) interest in the study – thank you very much! I gratefully acknowledge financial support by ICRAF and the German Bundesministerium für Wirtschaftliche Zusammenarbeit (BMZ) as well as the University of Hannover. I am also thankful for the financial support from the WIMEK iv programme of Wageningen University for two research visits to the Environmental Economics and Natural Resources Group. A big thank you to my friends from Central Baptist Church in Harare, who gave me a home and shared their everyday life. I am indebted to my friend and colleague Tunu Ramadhani, who helped me to understand many cultural aspects of life there. Lastly, I would like to thank my husband Klaus, my family and friends for their moral support. They enriched my life during all phases of the dissertation with their patience, humour, advice and diversion. Dagmar Mithöfer Hannover, September 2004 v Abstract Poverty is a common problem in the rural areas of Sub-Saharan Africa. Rural households frequently rely on indigenous fruits (IF) and other wild food resources during times of food and income shortages in order to supplement their nutrition and income. However, the availability of indigenous fruit tree products is declining as a result of deforestation. In order to conserve biodiversity, the Domestication of Indigenous Fruit Trees Programme of the World Agroforestry Centre (ICRAF, formerly the International Centre for Research in Agroforestry) aims to increase farm household income through farmer-led indigenous fruit tree planting. Lack of quantitative data hampers the progress of the programme insofar as the role of indigenous fruit tree products in the rural household economy is not clear. This study is part of ICRAF’s ‘Domestication Programme’. Its objective is to fill in some of the knowledge gaps. Specifically, this study assesses the contribution of indigenous fruit trees towards rural incomes and reduction of (seasonal) vulnerability to poverty. It further assesses the degree to which indigenous fruit trees have to be improved or the natural resource base has to decline so that on-farm planting is rendered economically attractive. Data were collected by means of farm household surveys in two locations of Zimbabwe from August 1999 to September 2000. Data collection consisted of monthly household monitoring of income, expenditure and labour data of 39 households and a random sample of 303 households to determine factors that are related to indigenous fruit use. Additionally, farmer workshops were conducted to gather general information and biophysical data of the indigenous fruit tree species. Surveys targeted the three most popular indigenous fruit tree species as previously determined by ICRAF. Results indicate that the majority of rural households benefit from consumption and sale of IF, although the extent varies amongst households. Within the household, children are the main consumers of the fruits. Marketing of IF is carried out by women, who use the receipts to purchase household goods. While Uapaca kirkiana fruits are more important in generating cash income than others, fruits of Parinari vi curatellifolia are more important for home consumption during food shortages. The gross margins from collection of IF are lower than from livestock and crop production. However, returns to labour from collection and use of IFT products are considerably greater than from other activities including gardening and livestock- rearing, indicating that collection of IF is an efficient labour allocation strategy. Vulnerability to poverty is assessed by means of a stochastic simulation model of monthly household income in the course of the year. Results show that vulnerability to income poverty is very high amongst rural households and is subject to seasonal fluctuations. Vulnerability is highest during the critical period of the year, i. e. between August and January, when IF are available. The income surplus that is carried over from the previous cropping season and also the degree to which indigenous fruits are used/are available for income smoothing determine vulnerability to poverty. As expected, the higher the availability of IF, the lower the vulnerability to income poverty. During August to January, the critical period of the year, indigenous fruits can reduce the probability of falling below the income threshold by up to 30%, depending on their availability. Although indigenous fruits contribute to reduction of vulnerability, other sources of income show higher influence on the household income. The highest influence stems from production of agricultural crops, which contribute a major share towards rural incomes. Overall, collection of IF constitutes an income source that can easily be accessed in times of need in order to bridge income and food shortages. Planting of domesticated indigenous fruit trees (IFT) is characterised by uncertainty, irreversibility and flexibility. Thus, timing of investment is crucial for maximising household net income. The critical value of an investment in planting IFT is derived using the real options approach to investment analysis. The risk-adjusted rate of return is endogenously determined via the Capital Asset Pricing Model. Its estimation is based on the portfolio of the different sources of farm household income. Results show that currently, collecting fruits and other products of IFT from the commons is more profitable than planting the trees. A combination of technical change and decreasing resource abundance provides scope for farmer-led planting of domesticated IFT and thus biodiversity conservation. However, breeding progress vii must be significant for investment in farmer-led tree planting to be economically attractive and thus contribute to on-farm preservation of the IFT. The key conclusions for policy advice and further research are to assess whether tree improvements that are necessary to initiate investment are technically feasible. Furthermore, the alternative to on-farm planting, indigenous fruit tree conservation in their natural habitat, needs to be economically assessed. Finally, further research that takes into account spatial aspects of indigenous fruit tree abundance should be conducted. Based on this information, most promising areas for farmer-led tree planting could be identified. This especially refers to other countries of the region, e.g. Malawi, where deforestation is more pronounced. Keywords: indigenous fruits, rural incomes, poverty, investment, uncertainty, Zimbabwe viii Zusammenfassung In Simbabwe wie auch in zahlreichen weiteren Ländern in Afrika südlich der Sahara sind Armut und die unsichere Versorgung mit Nahrungsmitteln zentrale Entwicklungsprobleme. Die ländliche Bevölkerung ist von dieser Situation besonders betroffen. Um dieses Problem zu mindern, greifen ländliche Haushalte vielmals auf heimische Wildfrüchte und andere eßbare natürliche Ressourcen zurück. Diese Früchte stellen ein Allmendegut dar und werden für den Eigenverzehr und den Verkauf genutzt. Zur Minderung

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