CONFIDENTIAL Public Disclosure Authorized AF T30 MUM DEV71k)PMENT STUDY
BACKGROUND PAPER
SMALLHOLDER TOBACCO DEVELOPMENT IN TANZANIA:
A REVIEW OF URAMBO AND TUMBI SCHEMES Public Disclosure Authorized by
M. Agarwal
and
D. Linsenhmeyer
Public Disclosure Authorized Series Studies in Employment and Caral Development No. 12
Division : Vmploynent and Rural Development
Department: Development Fconomics
Development Policy Staff International Bank for Reconstruction and Development
The authors prepared this background paper in their capacity as consultants to the Bank. The views expressed represent those of the authors and not necessarily those of the Bank. This report may not be published nor may it be quoted as representing the views of the Bank and ist affiliated organizations. Public Disclosure Authorized
Washington, D.C., September 1974 SMLLOLDER TOBACCO DEV,rELOPMENT IN TANZANIA: A RE§ OF URAMBO AND TWMBI SCHMES
TABIZ OF CONTENTS
Page No. PREFACE i-il
SUM ARY 0 0 0 Q 0 0 0 0 0 0a 0 0 0 0 0 0 0(0 . 0. 0 0 0
I. INTRODUCTION a 0 0 0 0 0 b 0 0 0 0 a 0 0 0 0 0 0 0 a 1
II. HISTORY OF FLUE-CURED TOBACCO IN TANZANIA . . .. . 2
E*pansion of Flue-Cured Tobacco, 1939-71 ...... 2
III. DESCRIPTION OF THE TOBACCO INDUSTRY IN TANZANIA . .a .4
Timing of Events ...... 4 Husbendry Practices . . . . .5..... Marketing Procedures . . . .0 * .Q a a 6
IV. THE UR-ABO AND TMRBI SETTLEMENT SCHE4ES: DIFFERENCES IN TOBACCO OUTPUT, PRICE, AND QUALITY a . 7
Uranbo Settlement Scheme .0 . 0 0 0 0 7 Tumbi Settlement Scheme . 0 0 0 Q a 0 00 .a . .a . 10 Tobacco Price Differences at Urambo and Tubi 0 . . 0 . 23
V. DEVELOPMENT STRATEGIES IN TABORA REGION 0 . a 0 00 0 26
Administration 0a 0 0a ;0 0 0 26 Extension Services 0 0 0 0 0 0. 0 0 0 a 00 0 0 29 Choosing Tenants and Extending Credit ...... 32 Double Standard in Credit and Marketing at Urambo , . . 33
a * 0 0 Labor Supply . . . D 0 0 0 0 a .* a a 0a . 37 Effect on Production of Other Crops . . 0 . . 0 0 0 0 0 37
Conclusions . 0 *0 6 0 a * 0 0 a *0 * * 0 0 0 a a a o
VI. COSTS AND INCOMES AT URAMBO AND TUMBI ...... 41
VII. BENEFITS AND SECONDARY EFFECTS OF THE TWO SCHEMES ..
Rural Development Aspects .. 0 0 .... 147 Points for Consideration in Future Rural Development Projects 0 o o o a ao o a 147 Political Environment ...... 0 0 0 0 a a0 e0 0 48 -2
. VIII. WORLD BANK TOBACCO PROJECT .4.8.T .o .. . 1-3 APPENDIX . . . .Q Q. Q .a a V O G . .
O . . . . - iii BIBLIOGRAPHY o .o .Q .G O P Q . . .
List of Tables
Page No. Table No.
1 Tanzania Tobacco Production, 1939-72 ...... 3
2 Smal]holder Tobacco Production on the Urambo Settlement Scheme, 1956-70 ...... 8
3 Smallholder Tobacco Production on the Tumbi 16 Settlement Scheme, 1956-70 ......
4 Production and Prices of Tobacco by Grade at Urambo and Tumbi, 1963-6h ...... 25
5 Farmers Per Field Officer and Per Assistant Fieli Officer and Tobacco Yield Per Acre, 1965, 1968, 1970 30
6 Number of Holdings and Yield Per Acre for Different Types of Cultivation ...... G . • 30
7 Net Incame Per Hour of Work from Various Crops in Urambo ...... G G 31
8 Scale of Credit Assistance for Urambo Inputs, 1962-63 and 1972-73 - ...... a 36
9 Produce Marketed Through the Tpbora Regional Cooperative Union, 1965-70 (Thousand Lbs.) ...... 36
10 Registered Crop Production in Urambo, 1965, 1968-70 38
11 Increase in Acreage of Paddy and Maize in Urambo, 1966-69 G G - . . . . .a G G G . & .G G . 38
12 Seasonal Labor Use on a Farm Growing Virginia Tobacco (Man-days per Acre) . . " . . . • . 39
13 Cost of Productiob Inputs at Urambo and Tumbi, 1966 (Shs. per Acre) . . .e ...... 2 -3-
List of Tables (cont)
1i Economic Returns on Tobacco Holdings in Urambo and Tumbi (Shs. per farm) . - . . 2
15 Fxpenditures of the Organizations Carrying out the Urambo and Tumbi Proiects, 1 96a-6 . .
16 Yields of Virginia Tobacco Projects in Tanzania, 196b-65 . . .8 88.8 0 68. 0 0 0 *
17 Cost of Expansion for An Increase of Five Hundred Farmers Cultivating a Total of Six Hundred Acres .. 5
List of Figures
Figure No. Page No.
1 Volume and Value of Production of Cured Tobacco by Smallholders in the Urambo Settlement Scheme, 1956-70 . - 8 a 8 .8 0. 0 8 a 0 a 0 8 4 . . .8 .* 9
2 Average Gross Returns per Acre of Tobacco in the Urambo Settlement Scheme, 1956-70 - ...... 10
3 Average Price Received per Pound of Tobacco by Farmers in the Urambo Settlement Scheme, 1956-70 . . . 11
& Number of Small Firmers and Acres of Tobacco Planted in the Urambo Settlement Scheme, 1956-70 . . 12
5 Yieli per Acre of Cured Tobacco in the Urambo Settlement Scheme, 1956-70 . 8 8 8 8 13
6 Tobacco Acreage per Farmer in the Urambo Settlement Scheme, 1956-70. .814.8.8. .8. . 1
7 Number of Small Farmers and Acres of Tobacco Planted
in the Tumbi Settlement Scheme, 1956-70 o 8 a o 8. . 17
8 Volume and Value of Production of Cured Tobacco by Smallholders in the Tumbi Settlement Scheme, 1956-70 . 8 8. 0 a 0 0 a 8. 08 8a . . 8 8 8 . 8 18
9 Average Price Received per Pound of Tobacco by Farmers in the Tumbi Settlement Scheme, 1956-70 . . . . 8 8 8 . 19
10 Average Gross Returns per Acre of Tobacco in the
Tumbi Settlement Scheme, 1956-70 . . .8 . . . 20
11 Tobacco Acreage per Farmer in the Tumbi Settlement Scheme, 1956-70 ...... 8 8 8 8 8 8 . 8 8 . 8 21 hI
Iist of Figures (con't.)
Yield per Acre of Curol Tobacc in the Tumbi Settlement 12 22 Scheme, 1956-70 - . 0 a 0 a. . . a 0. . 0. . . .
Prices Received by Small Farmers 13 Average Tobacco 2) (<0.3 Acres Tobacco) at Urambo and Tumbi, 1956-70 AIV3 1h Soil Zones and Settlement Patterns
List of Maps
MapINo A-1 1 Flue-Cured Tobacco-Growing Areas . * 0 * *
2 Location of Tobacco Settlements (BAT Tanzania, Ltd.). . . A-2
...... I PREFACE
This report s prepared as a background paper for the Africa. Rural Development Study (ARDS) conducted by the Development Economics Department of the World Bank. The ARDS was prompted by the very substan- tial interest in the East and West Africa Regional Offices of the Bank in finding ways of designing rural development projects which, despite the limited financial and manpower resources available for rural development in Africa, will effectively "reach" large tumbers of low income rural people. Thirteen rural development projects and programs from sub-Saharan Africa, representing diversity in location, design and implementation, were selected for analysis (see attached list). The reviews raised a consistent set of questions regarding design, implementation and performance of these projects and programs to provide the basis for a comparative evaluation. The main report on the Africa Rural Development Study by Uma Lele summarizes the lessons that can be learned from these project reviews.
2. Each of the background papers is based on existing information, supplemented by field investigations. With rare exceptions, no additional quantitative data were collected. Because the availability of data varied widely between projects, there are substantial differences in the scope of the individual project reviews.
3. Since most of the data were collected by other agencies, the IBRD can not attest to the accuracy of the statistical information which appears in this report. The views expressed in this report are those of the author(s) and do not necessarily represent the views of the IBRD. -ii -
BACKGROUIND PAPFRS ON PROJECTS RIEVIEWED IN AFIRIC RURAL DEVELOPMENT STUDY
French Technical Assistance in Cameroon: A Review of the Zones d'Action Prioritaires Integrees (ZAPI) and the Societe du Developpement du Nkam (SODENKAM), by G. Belloncle and D. Gentil. Studies in Employment and Rural Development No. 2.
Rural Development Programs in Ethiopia: A Review of the Chilalo Agricultural Development Unit, The Wolamo Agricultural Development Unit ani The Minimum Package Program, by T. Tecle. Studies in Employment and Rural Development No. 3.
Range Development in Kenya: A Review of Commercial, Company, Individual and Group Ranches, by H. Ruthenberg, H. ThiMM9 and H. Jhanke. Studies in Employment and Rural Development No. 4.
Small Farmer Credit in Kenya: A Review of Major Credit Schemes, by J. D. von Pischke. Studies in Employment and Rural Development No. 5.
Smallholder Tea Project in Kenya: A Review of Kenya Tea Development Authority, by D. Sullivan. Studies in Employment and Rural Development No. 6.
Rural Development in Kenya: A Review of Special Rural Development Progran, by N. Bedi. Studies in Employment and Rural Development No. 7.
Land Settlement in Kenya: A Review of the Squatter.Problem, by P. mbithi and C. Barnes. Studies in Employment and Rural Development No. 8.
Rural Development in Malawi: A Review of the Lilongwe Land Development Program, by B. H. Kinsey. Studies in Employment and Rural Development No. 9.
French Technical Assistance in Mali: A Review of Groundnut Operation and Cotton Scheme, By G. Anderson. Studies in Employment and Rural Development No. 10.
Small Scale Rural Industries in Nigeria: A Review of Industrial Developm,7nt Centers, by D. Turner. Studies in Employment and Rural-Development No. 11.
Smallholder Tobacco Development in Tanzania: A Review of Urambo and Tumbi Schemes, by M. Agarwal and D. Linsenmeyer. Studies in Employment and Rural Development No. 12.
Cotton Development in Tanzania: A Review of Cotton Program in Sukumaland, by M. Collinson. Stuu- s in Employment and Rural Development No. 13.
Rural Development in Tanzania: A Review of Ujamaa, by P. Abraham and F. Robinson. Studies in Employment and Rural Development No. 14. - 111 -
SMALIOLDER TOBACCO DEVELOPNENT IN TANZANIA: A REIN OF URAMBO AND TMKBI SCHEMES
SUMM~ARY
1. This rev iew, which examines the tobacco schemes in the Urambo and Tabora regions in Tanzania, is part of the African Rural Development Study (ARDS), which examined thirteen agricultural development projects to derive lessons for the design and implementation of rural development projects.
2. Since 1964 there has been a very rapid increase in tobacco production, particularly of flue-cured tobacco, in Tanzania (Table 1). By 1972 flue-cured tobacco accounted for almat 80 percent of the country's tobacco production and even a larger percentage of its exports since most of the fire-cured tobacco was consumed domestically.
3. The T-mbi and Urambo settlement schemes are smallholder tobacco schemes, although at Urambo there are some large farms. The two settle- ment schemes, separated by only forty five miles, have very similar climatic and sociological condibions. But the development of the two schemes has been very different because of differences in their adminis- trative structurE and in their procedures of operation, particularly in the provision of extension, credit, and marketing services.
4. Our analysis brings out a number of poin's:
(a) Since these schemes were design-d to incrreasu the production only of tobacco, sufficient attention has not been paid to increasing the av,ilability of food or to providing other social and economic services, such as education and health. Neglect of these factors not only prevents the schemes from having a broader impact on the living conditions of the rural people, but also prevents maximization of the increase in tobacco production. A major constraintin increasing tobacco production by using intensive or extensive methods of cultivation has be-en the unavailqbility of labor during the busy season. During this season, labor is needed not only for tobacco production but also for maize production- Farmers have to produce their own food because of inadequate markets, so they give priority to maize production. Thus, only the time available after their maize requirements have been met is devoted to tobacco cultivation. Consequently, measures either to increase labor productivity in maize cultivation or to improve the marketing structure to allow for regional specialization are needed to make possible an increase in tobacco production.
(b) Since strict control and timing is n.cessary for tobacco cultivation, a large extension service i required if tobacco is to be produced profitably, Presently, this preempts a large Part of the country's already limited manpower and inaneCial resources, so tobacco cultivati.on cannot. ) C ried out, on a large scale. Therefore, projects that are designed to reach a large proportion of the rural poor must concentrate on crops that are less intensive in their use of extension services, or new techniques must be devised for providing extension services on a large scale that are less demanding of manpower and financial resources.
(c) For the extension service to be effective, adequate super- visory control and sufficient incentives for the extension workers are necessary. The transfer of information and technology is expedited if the extension workers reside in the communities where they work rather than at headquarters. The extension workers at Tumbi stay in the village rather than at headquarters, as do those at Urambo, which partly explains the Tumbi workers' greater effectiveness.
(d) It might be necessary to provide credit for consumption purposes as well as for tobacco production if measures are no' taken to increase the farmers' production of foodgrains. Otherwise, production credit for tobacco is diverted to buy food crops, and less than the desired amount of fertilizers and pesticides are used, which results in lower productivity and incomes.
(e) Marketing tobacco has not been a problem since there is an assured market, but the high cost of operating the marketing cooperatives makes it doubtful whether they can be the appropriate marketing agents for a crop for which the margin between Vthe final price and the cost of production is small. Thus, once it has been decided to use cooperatives for marketing, those designing the project must concentrate on reducing the cost of operating the cooperatives by examining the way in which they are managed.
(f) The use of dualistic credit and marketing structures for large and small farmers makes it difficult to run a coopera- tive efficiently, as experience indicated at Urambo.
(g) The changeover from expatriate to Tanzanian management occurred gradually at Tumbi, but it was done abruptly at Urambo, so while the management at Tumbi was running the project successfully, the management at Urambo was having difficulties, and the productivity of tobacco production was declining. This shows the necessity for properly training successors by involving them in the decision- making process while the expatriates are still managing the project.
(h) The large incomes generated by rural development projects could be used to remove one of the basic constraints to development, the small size of the market, and thus engender a more broadly based development. It is essential to deter- mine on which goods the increased incomes are spent in order to decide whether these goods can be produced domestically; then measures can be introduced to encourage domestic pro- duction of these goods when feasible.
(i) The use of imported goods, such as fertilizers and crates, in the project points up the possibility of setting up industries domestically that can supply these intermediate goods.
(j) The increased incomes, if effectively taxed, lead to increased government revenues, which help to loosen the financial constraints that keep the government from increasing expenditures on rural development and for the provision of social services. These services can then become self-supporting, no longer a burden to the govern- ment budget.
5o Chapter II describes the general history of tobacco production in Tanzania, and Chapter III describes the operations necessary in tobacco production. The development of the settlement schemes at Urambo and Tumbi is discussed in Chapter IV by showing the main differences in the two schemes in terms of output, price, and quality, In Chapter V the main reasons for these differences in output and productivity are discussed in terms of administration and the provision of extension, credit, and marketing facilities. The effect the project operation has had on the production of other crops in the region is also discussed. Chapter VI analyzes the costs and incomes of the two schemes, hile Chapter VII disuesses the benefits and secondary effects. The schemes impact on present and future rural develop- ment is covered. In Chapter VIII the World Bank project on tobacco is described. This project concentrates on smallholder production and is also involved in strengthening the institutional setup. SALLHOLDER TOBACCO DELOPMENT IN TANZANIA: A REMIVIW OF UPAMBO AND TUMBI SCHMES
I. 'NTRODUCTION
1. This ieview is part of an effort to examine various agricultural projects to see what can be learned about increasing the living standards of the rural masses. It should help us to understand the dynamics of rural change, and it should aid interested p&rties in designing projects that meet the goals of rural development.
2. There has been a very rapid increase since 1964 in the production of tobacco, particularly flue-cured tobacco, in Tanzania (see Table 1). By 1972 flue-cured tobacco accounted for almost 80 percent of the country's tobacco production and even a larger percentage of its exports since most of the fire-cured tobacco was consumer domestically.
3. The scope of this review, however, is confined to the Tabora region, where much of the expansion in tobacco production has occurred. In particular, two tobacco settlement schemes--the Tumbi and the Urambo-- are examined. Both are smallholder tobacco schemes, although there are some large farms at Urambo that began operation in the mid-1950's. The two settlement schemes, separated by only forty five miles, share similar climatic and sociological conditions. But they have developed differently, because the -onditions prevailing in each are quite different. In the Urambo Settlement Scheme there is a somewhat larger acreage per farmer and a greater reliance on hired labor and machinery than in the Tumbi Settlement Scheme. It also has a different management structure, in particular the manner in which extension services are provided.
4. An analysis of tobacco cultivation by the smallholder is impor- tant, as tobacco is a crop whose prices vary substantially because of differences in the quality of the leaf. Maintenance of the quality requires careful cultivation; thus tobacco production requires close supervision, namely, a large extension service. An analysis of the Tumbi and Urambo schemes should provide insights into the problems of expanding smallholder production in crops that require close supervision.
5. Initially, in this review, the development of tobacco production in Tanzania is described. Then, by describing the technology of tobacco production the complexities involved in tobacco cultivation are revealed. The development of the Urambo and Tumbi schemes are traced, comparing and contrasting them, and an attempt is made to explain the differences in the development of the two schemes. Finally, from the experience of these two schemes, some conclusions on the design of projects that are meant to reach a large number of smallholders are drawn. -2-
6. The aralysis of the two schemes stresses the following aspects: who joined these (a) Pardicipation. oho were the farmers schemes, on -what basis did they join, and once they joined what was fh:ir role in the administration of the scheme?
(b) Organi.ational struture, How was the administration organized? Was it an integrated scheme that included of provision for meeting the subsistence requirements the farmer, construction of an infrastructure, and provision of social services, such as health and education? How were the inputs supplied and the outputs marketed, and was the marketing system tied to the credit system? How was knowledge transmitted to the farmers, namely, what kind of an extension system was operating? What were the incentives offered to the administrative a-d extension staff and to the smallholders?
(c) The implications of the project's design for its cost. The use of expatriate personnel for management and the need for close supervision would increase the costs of the project. This would limit the number of small- holders who could be brought under . zh schemes, and it would also limit the kind of crops for which such schemes could be introduced.
II. HISTORY OF FLUE-CURED TOBACCO IN TANZANIA
Expansion of Flue-cured Tobacco, 1939-71 Tanzania in the early 7. Flue-cured tobacco was introduced into 1900's. The entire, technically complicated system of production and curing was carried out by large-scal, producers, primarily a group of Greek farmers in the Iringa region. Table 1 shows the gradual expan- sion over time.
8. Until 1964 the production of flue-cured tobacco showed no systematic growth. There were large increases in output in some years-- 1950, 1954, 1959--because of special reasons, but then output stagnated, and in some cases even leclined. The expansion in the early 1950's was facilitated by the failure of the notorious Groundnut Scheme by the Overseas Food Corporation (OFC). Under the Groundnut Scheme vast stretches of land were cleared in the Urambo area and opened for large-scale farming by expatriates. With the failure of the scheme, it was found that tobacco, cultivated under similar climatic conditions in Rhodesia, could be grown in the area. Tobacco production, therefore, was adopted by the large-scale farmers in the Urambo area, who received technical assistance from the management staff of the Tanganyika Agricultural Corporation.
9. A second expansion in tobacco production occurred in the late 1950's when, under the master grower schemes, the whole complicated 기 4
process of produCiGion and curing wa,- introduced to the African smallholder. Then production remained relatively constant, until 1964, with only minor fluctuations du. to drought-o and ot1jer climatic conditions. From 1964 to the present, a sharp increase in f)roductuion has been taking place. We will examine the polssible causes later in an analysis of Urambo, and Tumbi.
III. DESGRIPTION OF THE TOBACCO INDUSTRY IN TANZANIA
10. A briof description of the present tobacco induo-try in Tanzania will help us understand the crucial points in the later analysis of the two settlement schem s.
Timing of Elren-' -,s
11. Below is the schedule of events followed in settling a new area until the farmer becomes established.l/
Timetable of Events
February - Surveying of new land and recruitment 04' new farmers must be near complction. Mal .-.h - Estimates of inputs needed by the cooperative must be submitted to the Tanzania Rural Development Bank so tenders can be sent out and inputs can be delivered by planbing time. May - New farmerB must have arrived on the land to clear it and build housing. 3eptember - Seedbeds must be planted. November - Six-inch,seedlings must be transplanted to the fields. January- - Harvesting of first primings begins. February - Harvesting and curing continue. March - Harvesting, curing, grading, and baling continue as the first harvest is sent to the Cooperative Society for marketing. April - Harvesting and processing continue, as well as marketing. May - Final curing and marketing continue. June - Firewood is first cut for the following year, but usually thd.,;,3 month marks the slack season.
12. The timing of surveying and clearing and the estimation of input are crucial to as-ure that the farmer will have the necessary fertilizer and 3eeds and that he will be able to begin planting in ,-')'eptember.
l/ Interview on Auaust 1, 1972, with G. Mandara, general manager, Tanzania Tobacco Authority., at Morogoro. Husbandry Practices
Thereh. are iany otLh-r husbandry pracLices which must be followed with exact timing in ordr to attain the high quality of leaf that is demanded on the world market. Th training of new farmers in these practices puts a veiy heavy and important responsibility on the local agricultural extension staff. In addition to the nececsary practices of proper seeding, transplanting, and cultivating, the farmer must be knowledgeable in, and convinced of the importance of, using fertilizers, crop rotations, insecticides, soil fumigants, ridging, and proper clearing. If the ni:rogen or humus content of the soil is too high, a dark tobacco leaf with high nicotine content, which commands a low price, results. In order to get the homogenous crop desired, uniform soil types, plant populations, and loose soil conditions are required. "Earthing-up" around the stems, as well as removal of all flower buds and side shoots, is necessary several times during the growing season.
14. After the plant is grown, the real value of the crop is yet. to be determined by proper harvesting and curing techniques. Thig emphasizes once again the importance of an adequately educated extension staff to transmit knowledge of these techniques to local farmers and to work with them repeatedly until they have mastered the art.
15. The leaves of a tobacco plant differ physiologically and chemically according to their position on the plant. The lower leaves of a plant ripen earlier than the higher ones, and therefore, as a rule, not one but several harvests are necessary, with two to three leaves being picked each time. The signs of ripeness are quite differen for leaves in different stalk positions.
16. The process which tobacco leaves undergo after harvest includes more than just drying. Good curing also includes treating the leaves in such a way that undesirable compounds are eliminated and compounds that improve quality are retained. The process takes about five days and is divided into three periods--yellowing, fixing the color, and drying.
During the first period, losing of moisture out of the leaves is avoided as much as possible. A building is used, which can be totally closed, so that the humidity of the air can be kept near a hundred percent. The harvested leaves should be hung in the building as fresh as possible. They are then still alive and the bio-chemical reactions of a ripening leaf go on, with this difference; that no transport from the stem of the plant to the leaves or in the opposite direction is possible. What one can see during this period is that the green colour of the leaf disappears and a yellow colour remains. Inside the tissue the starch is transformed into sugars, whereas the protein compounds, which would give a bitter taste to the tobacco, are broken down. After the green colour has disappeared, one starts to dry the leaf by raising the temperature and by restricted ventilation (the so called fixing of the colour). -6-
Later on more ventilation and higher temperatures are used, If the drying is not started soon enough or goes too slow, the yellow colour changes into brown and much of tbo sugar is lost, resulting in lower quality.l/
MarkEting Procedures
17. Marketing procedures have changed over time as different institutions have evolved and world demand, as well as the farmers' abilities, have changed. Before 1963-64, when the Urambo and Tumbi cooperatives were organized, the Tanganyika Agricultural Corporation transported the farmers' cured tobacco leaves to the nearest baling center where the leaves were graded, baled, and classified by the company's expatriate classifiers. The farmers were paid after the company deducted the cost of the inputs and services that the farmers had received from them. The British-American Tobacco Company of Tanzania (BAT Tanzania), the sole buyer, would then gather the bales and transport them to Kenya, Uganda, elsewhere in Tanzania, or to BAT in London.
18. After the Urambo and Tumbi cooperatives were formed in 1963-64, many operations remained the same except that the cooperatives provided the credit, transport, and baling services. The farmers learned to grade their own leaves under the supervision of the extension staff at the baling centers. The grades were recorded and the bale as a whole was classified when BAT took responsibility for the bale at the cooperative warehouse. The farmers' debts to the cooperative were recovered, including a tobacco cess to cover the operating cost of the cooperative itself, and the farmer received the 2emainder.
19. Until 1966 the tobacco produced was consumed either domestically or in the other East African countries. But with the large increase in production, Tanzania began to sell on the world market. The number of grades of tobacco increased, and the extension staff conveyed the new grading system to the farmers. The Tanzania Tobacco Board (TTB), formed in 1965 to coordinate the production and marketing of tobacco, contracted Trans-Continental Leaf Corporation of Hamburg, Germany, as Tanzania's export agent until 1970, Trans-Continental employed its own leaf classifiers and rejected any bale that was not of uniform quality. The farmer would then have to open his bale and regrade it or accept the lower classification. Gradually the farmer's ability to grade his own leaves improved.
20. After the farmers' tobacco was purchased by the foreign buyers, 75 percent of the money was credited to the cooperatives on behalf of the farmer at the National Development Credit Agency (NDCA), or the Tanzania Rural Development Bank (TRDB), as it is presently called, and 25 percent was sent back to the cooperative to be disbursed to the farmers. After their entire loan was repaid all of the sales returns were sent to the cooperatives to be returned to the farmers.
1/ G. H. Hanrooy, "Tobacco Growing and Rural Welfare," Netherlands Journal of Agricultural Science, November 1959. -7-
21. With the 1971 crop, the TTB took over all the responsibilities of Trans 'ontinental and began training national classifiers. Now, after the TTB picks up the farmers' tobacco bales from the cooperative warehouse, they are taken to Morogoro where a factory for drying, shredding, and blending tobacco has been established. At present the foreign buyer comes to the Morogoro auction floor, picks out the quantity and quality desired, and the exact blend is determined. After blending and processing, and the tobacco is crated and sent by rail to the harbor at Dar-es-Salaam loaded on ships. At that time, the foreign buyer makes payment for the tobacco. After the sale, the JTB, now called The Tanzania Tobacco Authority (TTA),, informs the National Bank of Commerce (NBC) to debit the different cooperatives with their respective amounts. The NBC is authorized to send ?5 percent to the TRDB for loan repayment and 25 percent directly to the cooperatives' account for payment to the farmer.,/
IV. THE URAMBO AND TUMBI SETTLEMENT SCHEMES: DIFFERENCES IN TOBACCO OU'PUT, PRICE, AND QUALITY
Urambo Settlement Scheme
22. Although flue-cured tobacco has been produced in Urambo since 1951, we were only able to obtain data since 1956. In Urambo, small farms consist of 20 to 40 acres of cleared land, designed for a maximum farms of 4 acres of tobacco per year. But there are also medium-sized of 150 to 200 acres of land and 10 to 20 acres of tobacco, and large farms with over 400 acres of land and more than 20 acres of tobacco.2/ Table 2 shows the gradual growth of smallholder tobacco production in the Urambo Farmers Cooperative Society, as the Urambo Settlement Scheme was later called, from 1956 through 1970.
23. The increase in tobacco production over these fifteen years was broken down into three independent variables: (1) increase in number of farmers over time, (2) increase in acreage per farmer over time, and accounted (3) increase in yield per acre over time. These three factors for roughly 74.8 percent of the variation in production as shown by regression analysis. The analysis suggested further that approximately 10.9 percent of the mean annual changes in production was due to changes in acreage per farmer; approximately 83.2 percent of the mean annual changes in production was due to changes in number of farmers; and approximately 5.8 percent was due to changes in yield per acre. Thus a major part of the growth came from taking more farmers into the scheme.
1/ Interview on August 1, 1972, with L. G. Hayes, factory manager, Morogoro Tobacco Factory, at Morogoro.
2/ Tanganyika Agricultural Corporation, Annual Reports, 1960-70. Walter Scheffler, "Tobacco Schemes in the Central Region," in H. Ruthenberg, ed., Smallholder FarmingLand Smailiholder Develpet in Tanzania (Munich:- Weltforum Verlag, African Studies #24,196b)T Table 2 SMALLHOLDER TOBACCO PRODUCTION ON THE URAMBO SETTLEMENT SCHEME, 1956-70
Gross Tobacco Average Farmers Volume of Value of Acres of Average Price Icreage Yield Returns per Production Production Tobacco Staff Small Received per per Acre per Acre Staff Year (lbs.) (T Shs.) Planted FO AFO* Farmers (T Shs. per lb.) Farmer (lbs.) (T Shs.) FO AFO
19$6 24,590 110,6$$ 64 N.A. N.A. 64 4.50 0.99 383 1,721 N.A. N.A. 1957 67,751 224,933 192 N.A. N.A. 71 3.32 2.72 351 1,167 N.A. N.A. 1958 89,322 291,189 256 N.A. N.A. 73 3.26 3.L6 3$1 1,146 N.A. N.A. 1959 135,625 407,366 341 N.A. N.A. 98 3.02 3.48 397 1,195 N.A. N.A. 1960 165,180 $14,650 406 N.A. N.A. 100 3.12 4.06 407 1,268 N.A. N.A. 1961 385,298 1,144,997 632 N.A. N.A. 227 2.89 2.78 625 1,812 N.A. N.A. 1962 336,209 1,041,714 740 N.A. N.A. 330 3.10 2.24 1,408407 N.A. N.A. 1963 663,042 2,018,944 950 N.A. N.A. 428 3.05 2.22 698 2,125 N.A. N.A. 1964 1,118,003 3,901,830 2,077 N.A. N.A. 761 3.49 2.72 $38 N.A. N.A. N.A. 196$ 3,268,330 8,715,547 4,415 4 18 1,292 2.67 3.42 790 N.A. 323 72 1966 2,531,047 5,262,981 4,320 N.A. N.A. 1,302 2.08 3.32 $86 1,218 N.A. N.A. co 1967 2,862,752 5,843,156 5,128 N.A. N.A. 1,546 2.04 3.32 558 1,139 N.A. N.A. 1968 2,789,319 5,823,513 6,250 3 15 2,077 2.09 3.01 446 92 692 138 1969 3,256,864 8,267,036 6,947 N.A. N.A. 2,253 2.54 3.08 469 1,190 N.A. N.A4 1970 3,337,193 7,329,272 7,003 3 19 2,408 2.20 2.91 476 1,0b 802 126
FO - Field Officer AFO - Assistant Field Officer
Sources: 1956-57, 1964: Scheffler, "Tobacco Schemes in the Central Region"; 1958-63: Tanganyika Agricultural Corporation, "Urambo Annual Report of 1962-63"; 196$: Mpandachals,(assistant manager of the Tanganyika Agricultural Corporation), "Urambo Report," TAC, August 1965; 1966-70: United Republic of Tanzania, Ministry of Agriculture and Cooperatives, "Urambo Production Report" (Dar-es-Salaam), 1970.
Note: The years 1966-70 include production figures for three large farmers in the scheme. N.A. - Not available. -9-
Volume of Valu o Producion Production/-- ýnc..u.ion TSe. knillion lbs.)
VaLUC •of Produc L.ion
3 ] -6
2 >
Volune of •2 Production
1956 1960 1965 1970 Years
FIGURE 1. Volume and Value of Production of Cured Tobacco by Smallholders in the Urambo Settlement Scheme, 1956-70 - 10
Average Gross Returns per Acre (T Shs.)
2,500
2,000
1,000
500
1956 1960 1965 1970 Tear
FIGURE 2: Average Gross Returns per Acre of Tobacco in the Urambo Settlement Scheme, 1956-70 - 11 -
Average Price Received (T Shs. per Ib.)
4c00
3,00
1956 1960 1965 1970 Year
FIGURE 3. Average Price Received per Pound of Tobacco by Farmers in the Urambo Settlement Scheme, 1956-70 긔 Y1oIct por Acrø
800
700
5M
400
350
1960 1965 1970 Year
nGME Yield per Acre of Cured Tobacco in the Urambo Settlement Scheme, 1956-70 -14-
Tobacco Acreare . cIper Farmer
360
2oO
1956 1960 106 1970 Year
FIGURE 6. Tobacco Acreage per Farmer in the Urambo Settlement Scheme, 1956-70
...... - 15 -
time. 24. In Table we can sie various trends emerging over Production takes a rather shqrp increase from 1961 to 1965 and then remains relatively stable i'rom_ 1)0, to 1Q70 (Figures 1-3). During the same time period thl number of Carmers in the scheme increased steadily (Figure 4), but there was a gradual decline in the yield per acre (Figure 5) as well as in the acreage per farmer (Figure 6) in the later 1960's.
Tumbi Settlement Scheme
2$. BAT "'anzania operated a farm at Urambo from 1951 to 1953. In 1954 the company abandoned its farm in Urambo and purchased the Tumbi estate ten miles west of Tabora and made it its research headquarters for East Africa. Table 3 shows the growth of the Tabora Tobacco Growers Cooperative Society, as the Tumbi Settlement Scheme was later called, from 1956 through 1970.
26, In the 1950's, the East African Tobacco Company bought much of its tobacco from BAT Uganda, BAT Kenya, and the largeexpatriate farmers at Urambo. Consequently, during this period little interest was expressed in developing Tumbi as a production center.l/ As can be seen in Table 3 and Figure 7, the number of farmers at Tumbi increased slowly until 1961 and then expanded at a faster rate. About the time of independence in 1961 many of the largeexpatriate farmers, feeling their positions were threatened, began to leave their farms at Urambo; at the same time BAT's cigarette factory near Dar-es- Salaam was just coming into full production and needed a steady source of flue-cured tobacco. After independence, the import of tobacco from BAT Uganda and BAT Kenya was restricted, so BAT took greater interest in expanding production in the Tabora region.
27. Production expanded rapidly in Tumbi until 1965-66 (Figure 8). In 1965 more tobacco was produced than could be handled by BAT, so Tanzania entered the world market. It did so at the time when Rhodesia's Unilateral Declaration of Independence was bringing about a boycott of Rhodesian tobacco by many of its world market buyers. So in 1966 there was a drastic drop in price due to the change from selling exclusively in a protected domestic market to selling in the international market as well. There was only a slight increase in production in 1966 (Figures 9 and 10), but thereafter, production increased rapidly.
28. As can be seen in Table 3 and Figure 11, the acreage per farmer increased as the farmer gained experience, until in 1969 and 1970 it began to decrease, as at Urambo. The increase in tobacco production for the fifteen years between 1955 and 1970 was broken down into the same three independent variables as for Urambo: (1) increase in number of farmers over time, (2) increase in acreage per farmer over time, and (3) increase in yield per acre over time. These three factors accounted
1/ Interview on August 1, 1972, with G. Mandara, general manager, Tanzania Tobacco Aixthority, at Morogoro. Table 3: SMALLHOLDER TOBACCO PRODUCTION ON THE TUNBI SETTLEMENT SCHEME, 1956-70 Average Tobacco Gross Farmers Volume of Value of Acres of Average Price Acreage Yield Returns per Production Production Tobacco -SLta Small Received per per Acre per Acre Staff Year (lbs.) (T Shs.) Planted FO AFO d/ Farmers (T Shs. per lb.) Farmer (lbs.) (T Shs.) FO
N.A. 1956 25,000 16,066 a/ 103 N.A. N.A. 330 0.066 a/ 0.31 213 49 a/ N.A. 1957 35,448 19,142 i! 160 N.A. N.A. 241 o.o68 o.66 221 79 a/ N.A. 1958 39,000 34,705 / 177 N.A. N.A. 230 0.072 0.77 220 151 a/ N.A. 1959 76,000 59,197 a/ 220 N.A. N.A. 360 0.074 0.61 345 164 a/ 1960 78,000 58,831 Z/ 25 N.A. N.A. 379 0.075 0.67 307 155 a! N.A. 1961 149,975 365,502 294 N.A. N.A. 317 2.430 0.93 510 1,153 N.A. 1962 170,85o 405,92 8 410 N.A. N.A. 370 2.370 1.10 417 1,094 N.AV N.A. 1963 260,798 688,506 620 N.A. N.A. 500 2.640 1.24 421 1,377 N.A. 1964 626,942 1,968,597 1,397 N.A. N.A. 1,024 3.140 1.36 449 1,9 9 1965 1,555,475 4,790,863 2,994 14 b/ 40 1,630 3.08 1.84 520 2,939 116 166 1,661,979 3,190,999 3,038 N.A. N.A. 1,576 1.920 1.93 547 2,0,5 N.A. N.A. 1967 2,089,976 4,556,147 3,148 N.A. N.A. 1,593 2.180 1.98 664 2,860 1968 3,190,496 6,76,706 5,445 9 c/ 47 2,738 2.030 1.99 586 2,365 304 1969 4,403,635 9,115,524 6,791 N.A N.A. 3,835 2.070 1.77 648 2,377 N.A. 1970 4,997,577 11,066,929 8,000 8 c/ 58 4,600 2.210 1.71 625 2,45 575
3ources: 1956-60: Tabora Tobacco Growers Cooperative SocAety, "Annual Tobacco Prcduction and Sales Records," 1969; 1961: Walter Scheffler, Bauerliche Produktion, uiter Au'sicht am Beispiel des Tabakanbaus in Tanzania "Notes on Flue- (Munich: IFO Institute fur Kerlschaftsforschung, 1968); 1962-69: Bernard Massambaji, cured Tobacco Production in Tabora Area," October 18, 1969. a/ These values were computed on green prices received rather than -ured prices. b taff reported by Sch;ffler, Bauer'iche Produktion. c/ BAT staff taken from BAT Tanzania employee records. d/ FO - Field officer AFO - Assistant field olficer
Note: N.A. - Not available. - 17 -
Acres Planted 11-mber of Sl Farmrs 00 , *410,000
Number of I ,000 Small Farmers I
3P 6,000
2,000 4., 000
/ 2,000 1,000 /Acres Plantecl
1956 1960 1965 1970 Year
FIGURE 7. Number of Small Farmers and Acres of Tobacco Planted in the Tumbi Settlement Scheme, 1956-70. - 18 -
Volume of Produt,ion~ e- &2o roduction ( rllon b.) (iIllion T S*s.)
12 5"io ValucofC Production.
48
36
24
Volum
Production 2
¼ i
1956 1960 19651970 Year
FIG.URE 8. Volume and Value of Production of Cured Tobacco by Smallholders in the Tumbi Settlement Scheme, 1956-70. - 19 -
Average Price Received (T Shs. per lb.) Co.iuted on 400 "greon" prices received
--. Computed on credm p0*rices received
3.00
2.00
1 00
1956 1960 1965 1970 Year
FIGURE 9. Average Price Received per Pound of Tobacco by Farmers in the Tumbi Settle- ment Scheme, 1956-70. - 20 -
Average Gross Returns per Acre (T Shs.) , Copt oror.
3,000 receivedi ------cured es
' V
2,000
1956 1960 1965 1970 Year
FIGURE 10. Average Gross Return, per Acre of Tobacco in the Tumbi Settlement Scheme, 1956-70.
I - 21 -
Tobacco Acreage per Farmer
20
015
1956 1960 1965 1970 Year
FIGURE 11. Tobacco Acreage per Farmer in the Tumbi Settlement Scheme, 1956-70. - 22 -
Yiold per Acre (1bs)-
701A
6
400
300
250_
1056 1960 1965 1970 Year
f 4
FIGURE 12. Yield per Acre of Cured Tobacco in the Tumbi Settlement Scheme, 1956-70. - 23 -
for roughly 9,.29 percent of th, variation in production as shown by regression analysis. The anal s ug,ge.sted further that approximately 9.1 percent of thn moan annual changeo in product ion was due to changes 8 in acreage per farmer approxi i.0 purcent or thy mean annual changes in production was due -o c ges in number of farmers; and approximately 6.9 percent of the man annual changes in production was due to changes in yield per acre. Once again a major part of the annual increase was due to taking more farmers into the scheme.
Tobacco Price Differences at Urambo and Tumbi
29. From 1956 to 1960 most of the tobacco was marketed green; consequently the farmer received a low price of approximately seven cents per pound throughout the late 1950's. After being purchased from the green-leaf growers, the green leaves were dried by the East African Tobacco Company in the BAT curing barns at Tumbi. BAT encouraged the green-leaf farmers to grow tobacco by distributing free seedlings in a thirty-mile radius around Trbora (see Map No. 2 in appendix). But in 1958 BAT began introducing the Master Grower Schemes under which the farmer cured his owvn tobacco. After 1960 the small farmr r partially processed his own leaves before selling them to the East African Tobacco Company, so -the price he got was for cured and not green leaves.
30. Although one can technically convert pounds of green leaves to pounds of cured leaves depending on moisture content and physiological factors, the gron prece cannot be converted into the cured priee wilhout knowing the annual costs of curing and the quality of cure attained from year to year. These factors will vary with climatic conditions as well as with the cost of firewood, labor, and other inputs to the curing process. Unfortunately, these data are not available.
31. During an interview with G. Mvandara, general manager of the Tanzania Tobacco Authority, he said that the price for green leaves was ten cents and for cured leaves, Shs. 3450; this difference was a tremendous incentive for green-leaf growers to begin curing thE ir own tobacco leaves.
32. By exa, -, '.he trend in tobacco prices received by small farmers from the i:Q nd Urambo regions, one notices some wide price divergences in the early years and then a gradual convergence with only minor fluctuating differences (Figure 13). Before 1960 the price that the Urambo farmers received was almost three times greater than that of the Tumbi farmers. This was because the Urambo farmers sold cured leaves to the Eaist African Tobacco Company (even though until the late 19501' processing was done at the Tanganyika Agricultur,0. Corporation's; faci lities) whereas the Tumbi farmer sold green leaves, which were then cured in the East African Tobacco Company barns at the company's ex-pense. Thus the difference in the prices received by the Urambo and Tumbi farmers was due to the price differential between green and cured leaves. 24 -
Average Price Received (T Shs. per 1b.)
00 , -Uri
-Tunbi,urec- ++o-~-- Tumbi, Green
2400
2,400
1,00
1956 1960 1965 1970 Year
FIGURE 13 Average Tobacco Prices Received by Small Farmers (<0.3 Acres Tobacco) at Urambo and Tumbi, 1956-70. TJRAMBi3O AND TUMBI5 1963-64 Table 14 PRODUCTION AND PRIES OF TOBACCO BY GRADE AT
9b Production 1963 Production 1964 1963 Trambo Tumbi Prices Urambo Tumbi prices Tobacco phs.er lb.) lbs. lbs. Grades (Shs. per lb.) Ibb. lbs. 4.80 (248,000 9 (138,000 11 TB1 5.25 2,541) 755) TB2 5.00 56,950) 5.30 5,2h3) 3.55 T 3 4.00 5,850) ... ) ( 4.70 (192,000 7 87,000 7 BD1 4.95 . 274) BD2 4.70 25,132) 3.13 3,761) 4.63 BD3 3.00 13,353) 6,371) 21 28.26 (.50963,000 35 (2ø3,00u BB1 4.70 131,739) 20,458) BB2 4.20 387,997) 45,268) TP 3.70 28,699 2.33 1,98$ o.88 ... .. ( 62,000 5 TGl 3.60 23,367) e 6 1,318) 1.86 3.50 ( 82,0o1 3 TG2 2.50 38,991) 2 ,857) ( 82,o00 3 ( 38,000 3 BG1 3.20 13,513 4.48 2,444) 2.62 3.00 B2.14 41,645) 3,449) 523,000 19 287,000 Ž3 .270
Ni 2,00 156,772) 46,381) 1.30 (550,000u o (313,000 25 N2 1.50 151,70) 29.79 50,367) 51.60 N3 1.02 58 ,L) 19,132)
• - - ..- NG 1.00 43,751 3 .55 2,930 1.30 1.0o4.30 110,000 à 6,200 5 Scrap 0.80 51,253 4.16 9,668
ar average price o' Shs. 3.12 per lb., No+: In 1963, 1,231,663 lbs. of tobacco w-ere produced at Ura-mbo, commanding average price of 3hs. 2.65 per lb. In 1964, and 22 M,635 lbs. of tobacco were produced at Tumbi, commanding an prie of Shs. 3.314 per 1o., and tobacco oroductirn at Urambo had increased to 2,750,00" lbs. at an average an average price of 3hs. 3.07 er --. tobacco production at Tu-mbi had increased to 1,250,000 lbs. at Ulrambo 3. Al s, th~ xhnceer~ fr m hi red cur i n: to or! -curing at. wlas nott ref i ,1.d in i pric r-1vo rby the fa rior but. in the ntiet return- aves to thf farmers. And niut hugh T11Imbi. farmers began curing tlheir own 1 aft.er 1960, becauLe 4h0 art A curing a high qualLy leaf can be mast.ered early 16os. only graduaIly, pri can still. cemknod lower al Tumbi during tie an 34, The narrowing of the price differential was partly due to increase in the production of the lower-value grades of tobacco N and M at Urambo; tie parcentage climed from about 33 percent in 1963 to 43 percent in 1965, whereas at Turbi production of these lower grades decreased from $3 percent in 1963 1o 48 percent in. 1965 (Table )O Thus the average quality improved at Tumbi, but fell at Urambo. in 35. Tn the following analyai- we txry to explain the difference behavior of these two schemes through the differences in their administrative structure and in their methods of operation. Unfortunately the lack of sufficient data hinders us from being able to fully explain these differences.
V. DEVELO11'IENT STRATEGIES IN TABORA REGION
Administration
36. The Tangnyika Agricultural Corporation (TAG) was in charge of the management of the Urambo facilities from 1951 to 1962'. It originally received property rights to the government-owned lands used under the Groundnut Scheme and some forest reserves and then leased farms to tenants (see Chapter II) The tenant was responsible for clearing the land, raising buildings, digging wells, etc. Credit was provided in kind or in cash through the TAC's field staff for fertilizers, seedlings, pesticides, and hired seasonal labor. Records were kept for the farmer by the TAC staff, and all seasonal credits, rents, and service charges were then deducted from proceeds at the time of marketing. The TAC sold the tobacco to the BAT Tanzania, a subsidiary of EAT, which had a monoopoly on tobacco purchase in Tanzania until 196$. In the early years the smallholders produced only green leaves, and the entire curing process was carried out by the TAG or by nearby large farmers.
37. However, in the late 1990's the curing process was introduced to the smallholders, who later produced and cured thr-ir own tobacco. After independence was achieved in 1961, many of the expatriate farmers, feeling their positions were unsafe in the independent country, left, and their farms were often taken over by former laborers.
38. In 1963 the Village Settlement Commission (VSC), directly responsible to the prime minister, took over the assets of the TAG, retaining much of the TAC's staff. At the same time, the Urambo Farmers Cooperative Society was formed. Urambo farmers were given technical advice by the VSC staff, and they received credit for inputs through the Urambo cooperative by way of loans from the National Development Credit Agency (NDCA). The VSC, being a para-statal organization, had many of its - 27 -
decisions made :t Dar-es-SIlaam t confo.ryu with the political goals of the central governmw.it. So, although much of the TAC staff remained after the VSC took ve, th-v TA, managers, Short and Eggleston, were reduced to me e adminisrators of the political decisions.1/
39. In 1965 the VSC was di.,solved. and the Village Settlement Division (VSD) of the Ministry of Lands, S-ttlements, and Water Development took its place. Again mich of the staff were retained, and the expatriates Short and Eggleston remained in key management positions until 1968. Only gradually did trained Tanzanian nationals move to higher-level management poFitions.
400 In 1969 the responsibilities of the V3D were. divided within the Ministry of Agriculture and Cooperatives into advisory and produc- tion divisions.2/
4l. The Tumbi scheme was developed by BAT in 1954 and was directly responsible for Tanzania's growth and development through 1964. The financial backing for seasonal inputs, staff support, and housing came from BAT's internal funds. BAT Tanzania was producing tobacco for specific markets, namely, (1) to supply its cigarette factory in Dar-es-Salaam, (2) to export to BAT London, and (3) to fill gaps in the quotas needed for domestic consumption in the other East African countries, primarily Uganda and Kenya. The number of new licenses issued each year regulated the number of new farmers that could enter the production process, and the issue of these licenses was closely correlated with the oxpected changes in quantity demanded by the specific markets for which BAT was producing.3/
42. Not only had BAT made Tumbi the center of production and marketing activities, but it was also carrying on an active tobacco research program there. Experiments in adopting different seed varieties, husbandry practices, fertilizer rates, etc.9were important in the growth of tobacco for all of East Africa.
43. In 196 the Tabora Tobacco Growers Cooperative Society (TTGCS) was registered and took over the responsibilities of supplying farmers with needed inputs and of marketing their tobacco. The cooperative received financial backing from the NDCA (the present TRDB) at an interest rate of 8.5 percent for annual loans and 7.5 percent for longer-term loans. Today the TTGCS includes much of the thirty mile
1/ Interview on August 8, 1972, with Walter Scheffler in Essen, Germany, who undertook doctoral research in Tanzania on the Urambo Settlement 9chcme in 1961. 2/ Interview on July 27, 1972, with L. A. Mwamagasi, tobacco officer, Advisory Division, Ministry of Agriculture and Cooperatives, at Dar-es-Salaam.
3/ Interview on August 4, 1972, with Mr. Mandari (formerly in charge of BAT accounts at Tabora), chief accountant, BAT Tanzania, at Dar-es-Salaam. -28
radius aroun6i Taoor- originally devp eed under the Tumbi Settlement Scheme. It is now made up of 'the umbi and Mabama areas, Tabora Central, Tabora North, and Tabora So.utn.1/ between 44. In 1965 a two-year magent agreement was signed while BAT and TTGCS: BAT was to manage all the cooperative's affairs decisions. the TTGCS staff worked with them and took part in making all The purpose of the agreement was to train the TTGCS staff in the manage- ment responsioilities. BAT supported the full cost of its own staff during this tibq and also maintained its permanent extension staff. but 45. In 1.57 the agreement was renewed for another two years for the the BAT staff ias reduced and acted only in an advisory capacity TTGCS staff, who finally took complete responsibility for the cooperative function in 1969.
46. Thus the Urambo and Tumbi schemes have had very different stable and management experiences. Tumbi's management has been more has had a greater independence in policy making, which may have con- tributed to its greater success in the long run.
47. The primary duties of the management are listed below: are supervised (a) All operations involved in tobacco production and controlled by the scheme's staff. They provide the knowledge on cultivation of tobacco. Concentrating on tobacco permits the field staff to be trained at relatively low cost,
(b) Credit for the means of production, such as mineral fertilizer, seed, and pesticides, is supplied by the management.
(c) Marketing is organized through thr managem-nt, and the cost of the credits and services rendered by the scheme management to the participants is deducted fromn the proceeds.2/
URAMBO LANAGEfNT STRUCTURE
Settlement MLanager
Assistant Manager (in Coop Sedetary Buildings charge of production) Supervisor Coop Records Field 1Staff Farmers Accounts Stores actors
1/ Interview on July 24, 1972, with A. H. Seif, senior cooperative officer, Tanzania Tobacco Authority. 2/ Scheffler, "Tobacco Schemes in the Central Region." - 29 -
48. The main way of e xtendin knowledge to the [armer about production technique.snd of supcervising and controlling him is through the extension service. At Uranbol, under tho sfttlement manager, there is an assistant manager in ohqrge of production.1/ The assistant manager has direct control over some L2 t 30 f ield officer.- and assistant field officers spread ver the entire 0rAmbo area. His control is very loose, however, because of the time required to oversee the scattered staff and because of the other administrative demands placed on him.
49. In comparison to Urambo's administrative structure, Tumbi's is more efficient.
TTMBI MANAGEMENFT STRUCTURE 2/
District Leaf Manager
Leaf Center Superintendent (1 per 00 farmers)
Field Supervisor (1 per 50 rew farmers or 1 per 100 established farmers)
Under this structure each leaf center superintendent has only five to ten field staff members under his control. This allows for closer contact with and supervision of staff.
50. Apart from the differences in supervision of the field staff, there are differences in the incentives available to them. The field staff in Urambo enjoy greater job security and lesser pressure to punctually perform their extension duties than do the field staff in Tumbi, where BAT had a mint system of promotion and dismissal for its extension staff, which has been maintained.
Extension Services
5l. One of the factors which has been suggested to account for the difference in the productivity of tobacco between the L.wo schemres, in particular the decline in productivity at Urambo, is the larger and increasing number of farmers per extension worker in Urambo.
1/ Interview on July 22, 1972, with N. B. Kato, assistant manager at Urambo, from 1967-69, at Tabora.
2/ Interview on July 21, 1972, with G. A. Massambaji (formerly district leaf manager for BAT), leaf manager, Tanzania Tobacco Authority, at Tabora. - 30 -
' Thes;hor Lage of t: on tuff at Uramboii mak i d if fic ult . to properly vi -u;e t-he ncw andt1r to contn1110u nourag an help he older ;ormer. i.n mainaining imiprov-dd mhod of produ1ie0n, Thi ; problem al--o ha been a w:'t- d in recor1.e by offic e UrtInbo ",ince the farmera are wideIy "i ped, it ,till posef a big probltem for the officer- to attrnd to t.h farm:rs."1/ "All staff /agr e7 that it /is7 essential that more tbaff are nreded.t1'/
53. Table 5 gives two indices of the don:-ity of the extension services provided by the two schemes.
Table5: FARPERS PER FIELD, OFFICt AD PR Ai -31 TANT FIELD OFFICER AND TOBACCO YIELD PR. ACRE, 1965, 1968, 1970
Ur,mbo Tumbi Farmers/ Farmers/ Farmers/ Assistant Yield/ Farmers/ assistant Yield/ field field acre field field acre Year of tficer officer (lbs.) officer officer (lbs.)
1965 323 72 704 116 40 520 19(8 69? 138 446 304 58 586 1970 802 126 476 575 79 625
Table 6: NUMBER OF HOLDINGS AND YIELD PER ACRE FOR DIFFERENT TYPE3 OF CULTIVATION
No. of Yield per Cultivation holdings acre (lbs.)
Hoe First year 15 689 Established 41 584 Partly mechanized 8 713
Source: Scheffler, "Tobacco Schemes in the Central Region."
1/ Bernard Masambaji (agricultural olfficer, Tabora region), "Report on Field Trips to the Schemes in Tabora Region," December 1968.
2/ John Eggleston, "Report on Urambo Safari," May 1966, p. 2. -31I -
But a comparison of tho data for the two schemes suggests that though the density of exten.31. servi(es mLght be an explanation for the decline one. Depletion in productivity at Urarwoo, it .s not a fully satisfactory of the field staff has been G!currin7 at both places, but productivity at Further- Tumbi has been increasing vhile at Urambo it has been decreasing. by more, the dilution in Urambo between 1965 and 1968 was almost matched that in Tumbi between 1968 and 1970--an increase in farmers per field in officer from about 300 to 600, Whereas productivity per acre increased Tumbi from 586 pounds in 1968 to 625 pounds in 1970, it fell in Urambo from 704 in 1965 to 4h6 in 1968. First-year farmers have a lower productivity of rate as Table 6 6hows, and it is claimed that Urambo had a large influx new farmers in 1968. 1/ But while Uraibo had a large number of new farmers Urambo in absolute terns, thre were not relalirely more new farmers in the scheme in that period. The number of small farmers in Urambo increased from 1,292 in 1965 to 2,077 in 1968, whereas in Tambi it increased from was 2,738 in 1968 to 4,600 in 1970. if anything, the rate of expansion higher at Tumbi. supeivision, otherwise . TEn the olde.r :Aarmers require continued nor they do not use pesticides properly (particularly in the seed beds) do they pull tp the tobacco stalks in time after the harvest. In Urambo, data from twenty four holdings showed that for the fourteen holdings with more than ten visits a year, productivity was 800 pounds an acre, whereas on the others it was only 580 pounds per acre. Furthermore, in order to maintain the fertility of the soil and the yields, proper crop- of tobacco rotation procedures have to be followed. But since cultivation the farmers ts so much more profitable than of other crops (see Table 7), tend to over-cultivate and the soil is soon exhausted.
Table 7: NET INCOME PER HOUR OF WORK FROM VARIOUS CROPS IN URAMBO
Tobacco Virginia 64 Turkish 0.37 Maize 0.6 Groundnuts 0.58 Rice 0.4
Source- M. P. Collinson, "Farm Management Survey, 1963-64.11 The hourly wage for cultivation of Virginia tobacco was taken from Scheffler, "Tobacco 3chemes in the Central Region."
1/ The vast majority of farmers participating in the tobacco projects come from local areas. They were organized into thrse clusters and have remained very much in the same region. Thus clan ties remain relatively intact. Statistics for the region do not show an abnorral increase in been population over the years refuting the assumption that there have large influxes of people from outside the region. - 32 -
in Urambo $. Anot-htr ossible xi for lower productLvit.y could be that during ihe yea',u -l -70 the figures for Urambo included the output of the three large andaarm, if productivity on the larger farms were lower, this would UxlanUrambolo lag in productivziJ.y. But generally in the early sixtis du ivi'y on the larger ams, which used inechanized equipment, was hiiher (so Table r). This is prob> bly because tractors enable the farmers to time their operatiions better, and also these farmers are probably thc best entrepreneurs.
$6. It is not only the number of extension workers that is important, but also the quality of these workers and the methods they use. At Tumbi the strict control exercised and the incentives given might make the extension system better. There is also a difference between Tumbi and Urambo in the location of the field staff. in Urambo they live at head- quarters and make periodic trips to supervise and advise the farmers, whereas in Tumbi since 1960 the extension staff have lived in the areas where they work. This reduces their travel time and puts them in cioser contact with the farmeprs,9which seems to have some effect, as there hasi been a fairly steadyincrease in productivity per acre in Tumbi since 19bli.
Choosing Tenants and Extending Credit
$7. The two schemes have had slightly different ways of choosing tenants for their farms. BAT controlled the number of new growers through a licensing scheme, as mentioned earlier, and as the number of applicants was high because of the profitability of growing tobacco, BAT could pick and choose. The TTGCS continues to be selective in choosing new farmers.
$8. Initially at Urambo the management chose farmers who had participated in the Groundnut Scheme or who had previously worked in tobacco fields, either nearby or elsewhere in East Africa, so that they were more experienced. The selected farmers had to attend a tobacco school, but the school was eventually discontinued. Gradually it seems that the managemrnt at Urambo has become less careful in selecting new farmers.
$9. At Urambo, once the farmers are chosen they stay in the scheme, but at Tumbi, BAT used to sometimes weed out the inefficient producers. In 1965-66, 200 growers were terminated fro,,, the scheme by BAT in an effort to improve general standards. "The Tabora Cooperative intends to continue to be selective in this way, both for rejecting growers and selecting them for further expansion."1l/
60. At Tumbi the performance of the farmer is also taken into account when credit is extended to him. In the TTGCS areas village
1/ M. P. Collinson, "Proposed Application for Credit for Flue-Cur I Tobacco," National Development Credit Agency, January 1967. - 33 -
committees composed of farmr rpresentaives from the areas, village extension staff, and cooperative officers decide how much credit each farmer will get from the cocpratve the fo lowing year. Basically the credit determines hiow many a-:res each person will grow. "The committee system gives a basis o: per onal knowledg for evaluation of both the integrLy %nd canability o* Individual borrowrs."/ A majority of the committee memoers has dailly contact with the farmers and is abl- to form good judgments about their capabilities. Over time credit and production have ben concentrated with the better farm rs. Furthermore, the village--comi i-A3e systemi offers an incentive to all farmers to produce better and has often been credited for the low rate of default on TTGCS loan,
bl. At Urambo there was no screening system until 1970, when the village--committee system was initiated. The following year a noticeable decrease in defaults was reported.2/ But it is still too soon to tell whether this reduction in the default rate is permanent and to what extent it can be attributed to the introduction of the committee system. Also it is too early to tell whether this change in credit distribution will lead to an increase in the efficiency of production and productivity at Urambo.
62. Thus both the Urambo and the Tumbi schemes have differed in the way in which the new farmers are selected and in whether there is a check by the management on the quality of the farmers' activities.
Double Standard in Credit and Markoting at Urambo
63. In general, credit is funneled through the cooperative societies in both Urambo and Tumbi. One difference is that until 1970 at Urambo the decision on how much credit to extend to a particular farmer was made by management after some consultation with the extension officer, whereas at Tumbi credit has always been extended on the recommendation of the village committee, as discussed above. Another difference lies in the double standard practiced at Urambo.
64. At Tumbi there are only small farms, but at Urambo there are several medium- and large-sized farms. Farm size at Urambo has an effect both on the provision of credit and on the marketing procedure. The small farmer at Urambo gets his credit from the cooperative mainly in kind and is only given a small amount of cash for hiring labor and for some other incidental expenses, but the larger farmer gets cash loans directly from the commercial bank. He then buys his inputs from the cooperative or from elsewhere.
1/ M. P. Collinson, "The Organization of the Administration and Supervision of N.D.C.A. Loans to Marketing Cooperatives," p. 2.
2/ Interview on July 21, 1972, with Mr. G. A. Massanbi, leaf manager, Tanzania Tobacco Authority, at Tabora. -34
65. The double standardi in providing credit at Urambo affects the smallholder's yields. Sincf th rupall farmer gets his loan in kind and very little in cash, when ht is ,bort of cash he sells part of his supply of fertilizers and fumLgants to the larger farmer. Thus, the smallholder ends up with an inferior crop au. a 7o.wer yield per acre. This situation has arisen partly because the cooperative does not supply maize, the sub- sistence crop, or enough money to buy maize, and new farmers in particular have to concentrate on tobacco production for the first few years and are not able to grow maize for their own consumption needs.
66. The marketing channel at Tumbi works as described previously in Chapter IIIq but at Urambo a double standard exists in marketing as well as in credit provision. The small farner has to sell through the cooperative and pay a cess for each pound marketed to cover the coopera- tive's general operating expenses. However, the large farmer sells his crop directly -'o BAT or the TTB.
67. When the successful smallholders increase their income and productivity to the point that they can move to medium-sized farms, the double standard in credit and marketing means that the cooperative is deprived of the leadership of these most progressive farmers.l/ Also because of this double standard, small farmers in need of cash often sell part of their crop to the larger farmers and are then not able to repay their debts.
68. As a result of these and other factors, the Urambo cooperative has become a very inefficient marketing channel. Its annual bad-debt allowance is considerably larger than that of the Tabora Tobacco Growers Cooperative 3Society. In examining the Urambo cooperative's annual reports in an attempt to calculate the cooperative's cost of operation, we found records that were not accurate. For example, although the cooperative only showed a deficit in 1969, in many years a sizable portion of incomt recorded came from an entry labelled "Bad Debts Allowance Not Required." On checking this, we discovered that a varying sum called "Bad Debts Allowance" was set aside each year. Any amount not used of this sum was then claimed as income, If this sum had not been considered as income, the cooperative would have had considerably larger deficits for several years in the late 196 0's.
69. In the 1969-70 annual auditors' report, which was completed two years after the actual fiscal year, we found such statements as:
The books of accounts were not up to date. They were partly written by the society's staff and partly by Cooperative Development staff but a lot of accountancy work had to be completed during the audit. . . . I, however, discovered that
1/ Village Settlement Division, "The Rural Sociological Study of Urambo, Kaliwa, and Ussoke Tobacco Settlement Schemes," Ministry of Lands, Settlements, and Water Development, October 1968. a cash receipt book had been mislaid. Out of this book only 2 receipts were enterei in t-ho cash book. The Police h.ve not been abl -to trace h book. A total of Shn. 47,581.02 was paid to mombers who h-v been discovered to be non- exit U;nt... The pzoduce realization account roveals a loss of 45,772 kgs. of paddy arnid mixed produce valued at Shs.33,552.50. Again the Po.lice are working on this.1/
In the preceding year's auditorn' report for the Urambo society, the following transactions were mentioned: (1) In the fiscal year 19b7-68 the society had sustained a cash loss of Shs. 1,7',2,908, while in 1968-69 a further cash shortage of Shs. 806,433 was being investigated. (2) A further shortage of paddy was recorded in 1967-68 and 1968-69. for (3) In 1969 the members were not charged any interest on advances inputs, so in essence they got the advances interest free, while the cooperative was paying the NDCA 8.5 percent interest on such seasonal loans. The same year the members were never charged for any baling services.2/
70. These reports point out that the cooperative at Urambo does not have the skill and the control necessary to manage the resources passing under its jurisdiction. The abrupt changeover in 1963 in the handling of all accounts from the TAC to the cooperative staff (in contrast to the BAT-Tabora cooperative's gradual changeover); the different markrting procedures for large and small farmrs; and the lack of adequate supervisory control over the cooperative staff may account for the gradual decrease in yield per acre for the small farmers in the Urambo area and for the Ministry of Agriculture directly stepping in and managing the cooperative in 1971 with ministry staff.
71. The scale of credit assistance at Urambo remained constant between 1962-63 and 1972-73, but there were some changes in the com- position (see Table 8). Since 1967 the farmers have received no cash assistance for foods, which might have encouraged them to sell part of their fertilizer and other inputs, thus reducing their yield; but they have received credit for maize seed and fertilizer. While it was impossible to get data on the amount of credit being consumed for these uses, Table 9 shows the increase in maize and paddy sales for cash through the Tabora Regional Cooperative Union, which was responsible for marketing farm produce from cooperatives in Tabora region (except Nzega District). Although the amount of credit for fertilizer remained
1/ Joseph P. Mtui (Zonal audit and supcrvision accountanl, Tabora Zone), "Accounts for the Year Ended December 31, 1970," Ministry of Agriculture and Cooperatives, 1971.
2/ United Republic of Tanzania, Ministry of Agriculture and Cooperatives, Audit and Supervision Section, Registrar of Cooperative Societies, "Accounts for the Year Ended June 30, 1969," p. 1. -36 -
Table 8: 3CALE3OF CFEDIT ASSISTANCE FOR URAMBO INPUTS, 19K -4 3 and 19TI-TI
1962-63 Items 9s./acre 1972-73 Items Shs./acre
Fertilizer 210.00 Fertili.er Baling, tobacco Transport for crop haulage 100.00 Labor for transplant 50 Transport of Labor for weeding 50 firewood 94-50 Labor for harvest and Insecticide, seed, curing 5 rent 50.00 Grading and baling Cash for food 100.00 Seedbed pack Wages for harvest Firewood haulage [3 labor 145.00 Transport of fertilizer 10 Total 699.75T Tobacco-packing material. 4 Twine 50 Other _U Total
Source: 1962-63 figures: letter of April 9, 1963, from the secretary of the Urambo Farmers Cooperative Society to the Cooperative Bank of Tanzania; 1972-73 figures: interview on July 27, 1972, with Mr. Mdee of the Tanzania Rural Development Bank (TRDB).
Note: The figures are given for an established farmer with more than two years of experience. In 1972 new farmers joining Ujamaa villages got an additional "Settlers Cash Assistance" of Shs. 240 the first season (see Chapter VIII)o
Table 9: PRODUCE MARKETED THROUGH THE TABORA REGIONAL COOPERATIVE UNION, 1965-70 (THOUSAND LBS.)
Crops 1965 1966 1967 1968 1969 1970
Maize 105 185 242 225 339 K16
Paddy 1,225 2,475 1,875 I,610 11,525 17,d45
Source: Purchasing records of Tabora Regional Cooperative Union, Tabora office. 37 -
constant, the rctual cost por pound do,,reased bcause oV the construetion of a fortilizer plant with'in Tanania, so th, amount. bought increased. The amount allociabed for tran:portation of firewood docreased slightly even though the cost of haulini firewood at, TTrambo renained constant, at bs. 154 per acre.i/
Labor Supply
72. The major constraint in either expanding tobacco acreage under production o. int2nsifying production on a plot is the labor supply. The Tanzanian fa-rer has to grow his own subsistence crop, which vakes up some of the available labor.2/ The provision of extension services that would increase productivity in maize production or the establishment of marketing channels that would supply the farmer with external subsistence inputs could lead to a substantial increase in tobacco production. At Tumbi the plots are smaller and worked with family labor only, but at Urambo substantial use had been made of hired labor. Small farmers have at least two laborers, and large farmers have as many as thirty. The need for hired labor at Urambo, unlike at Tumbi, has risen because of the larger size of the plots.3/ Because the farmers have failed to pay wages, however, immigrant laborers have stopped coming in. The consequent labor shortage has led to a reduction of the area cultivated and to less careful modes of husbandry, resulting in a lower tobacco yield.
Effect on Production of Other Crops
73. In comparison to the trends shown in Table 9 on "Produce Marketed through the Tabora Regional Cooperative Union," we can show only sporadic data. on crop production in Urambo (see Table 10). We cannot give an accurate record of the use of improved maize seed or the use of ammonium-sulfate fertilizers in corn production over time. Accurate data on maize and paddy yields are not available, as much of the domestic produce is consumed by the farm families and no accurate records are kept.
1/ United Republic of Tanzania, Ministry of Agriculture and Cooperatives, "Production Division File," Dar-es-Salaam, February 1971.
2/ M. P. Collinson, "A Report on the Comparative Economics of Virginia and Aromatic Tobaccos on Family Farms in Tabora District," Tabora: Western Research Center, Ministry of Agriculture, June 1965.
3/ Village Settlement Division, "Rural Sociological Study." - 38 -
bl~10:R GI"T7RFED CROP PRODUCTIOI IN TRAIMBO, 1965, 1968-70
Crops 1965 19o8 19(9 1970
Paddy 1,113,581 61 80 9,9,31 5,2 4, 015 ;unflower 11,7.. 33) Groundnuts 8,113 1,320 6,011 Other 1,768 2751 ... 4,430
Total 1,135,527 b2r,874 954,5315252,795
Source: Urambo Farmers Cooperative Society, "Annual Crop Realization Accounts."
74. In 1967 the Tabora Tobacco Growers Cooperative Society allowed -hs. 15 per farmer for maize seed in their loan allotments. In the same year, the Urambo cooperative allowed Shs. 64 per acre of maize for ammonium- 3ulfate fertilizers. Urambo cooperative records also reveal an increase in acreages grown of other crops over time as shown in Table 11.
Table 11: INCREASE IN ACREAGE OF PADDY AND MAIZE IN URAMBO, 1966-69
Crops 1966-67 1967-68 1969
Paddy 327 500 a/ 2,212
Maize 2,299 2,000 a/ 2,614 a/ Estimates.
75. The increase in paddy acreages can be attributed partially to the very favorable prices for paddy established by governmpntal decisions.
76. In the late 1950's, labor was available to Urambo farmers from sources in the Immediate area, and additional labor came from the Uganda, Kigoma, and Lake Tanganyika areas. After independence in 1961 the labor flow across national borders was restricted, and labor became scarce for the small farmer.
Casual labor used to be attracted to the Urambo area where the larger farmers offered steady employment through the season with payment in cash. Most of these large farmers - 39 -
Table 1. "FASONAL LABOR USE ON A FARM GROWING VIRGINIA TOBACCO kMan-days- Per Acre)
Operation Senpt. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Total
Seedbed 10.0 6.0 ...... o . ... 100 Watering 5.1 6.8 1.7 ...... o..... 13.6 Barn building 6.7 7.6 7.6 7.6 6.7 ...... 36.2 Grass cutting 1.5 1.5 ...... 3.0 o. 12.6 Firewood 1.4 2.8 2.8 2.8 2.8 ...... Cult/plant out ... 7.9 21.4 21.4 7.9 .. .. . 6.6 Weeding ...... 1.7 6.5 6.5 1.7 .. ... 1.4 ...... 3.0 4.7 0.7 8.4 Top/sucker ... 37.8 Picking ...... 6.3 12.6 12.6 6.3 ... Curing ...... 3.2 13.5 13.5 13.5 3.2 46.9 3.3 Grading ...... 0 ...... 9.9 13.2 13.2 39.6 Baling ...... 1.8 6.8 1.8 10.4
Total tobacco-crop requirements 24.7 33.6 35.2 38.3 36.4 42.4 41.8 39.8 8.3 309.5
Total food-crop 6.0 requirements ...... 7.0 26.0 26.0 13.0 10.0 12.0
GRAND TOTAL 24.7 33.6 42.2 64.3 62.4 55.4 51.8 51.8 14.3
Source: Collinson, "Report on the Comparative Economics of Virginia and Aromatic Tobaccos," p. 9.
Note: Assuming a family ts labor resources amount to fifty man-days per month, the family will need hired labor even on 1.50 acres of tobacco with a relatively low yield lev4.of 500 pounds per acre. The need for hired labor will extend from the end of November to the end of March when picking ends. Each additional acre of tobacco is likely to require an extra man over most of this period. havu now lift and employrrent. prospects are less attractive, the period of work, is shorter, rates less certain than formerly. 1/
77. As th7 searcity became nore scvere, severafl. developments took place. Farmers from Urambo would go in person to Dodoma, Kigoma, or other nearby regions to nevotiate seasonal contracts with potential laborers. Also they made more use of extended family laborers; they employed a young nephew, brother, or cousin on the agreement that after three harvests they would make sure that the boy had adequate funds for a marriage price.2/
78. Part of this labor shortage was because the farmers did not pay well; in fact, in poor years they paid nothing to their laborers. With his shortage of cash, the farmer simply could not pay minimum wages. By 1966 it was reported that "the labor available to Urambo has become very scarce of late forcing farmers to reduce their acreage."3/ This scarcity will probably increase in the future under the new minimum wage order effective July 1, 1972, which almost doubles wages of daily paid workers .h/
Conclusions
7. Even though the lack of sufficient good data does not allow us to come to firm conclusions, our analysis of the two projects does enable us to point out some aspects that are important, determinants of the behavior of the projects.
8o. We have seen that the nature of the extension scheme--the extent of control exercised over the field staff, the incentives available to the staff, and the number of staff available--seems to make a substantial difference in the productivity on the farm and thus in the profitability of the scheme.
8l. Our analysis has also uncovered the need to establish proper credit facilities (credit was sometimes used as an instrument of control) and often the need to provide credit to meet subsistence requirements and
1/ Collinson, "Proposed Application for Credit for Flue-Cured Tobacco."
2/ E. 0. Kayombo,et al., "A Collection of Essays on Ujamaa Villages; Tobacco ProducTiTfin Tabora Region," Political 3cience Department, University of Dar-es-Salaam, March 1971, p. 10.
3/ Regional Settlement Office, "The Role of the V.S.D. in Tabora Region," Urambo, December 1963, p. 4.
4/ J. Gregor "Flue-Cured Tobacco Project, Full Supervision Report," IBRD and IDA, July 25, 1972. to hire labor. Furthermore, the existenct of dual credit, and marketing conflict, in channels for large and . tmal,rmers can cause considerable a coopernt,i ve.
6.2 I0Ph thc el1, we h;e b n able to collect, we are very skeptical about mrAing a staer:<-nt. on the economic viability of cooperatives a. mcrketing channels fo. other cropz. It is only in operated in an the past several year that taese cooperatives have orderly manner. Rec,ords are very poorly kept by the cooperatives, and we doubt their ability to raarket crops as efficiently as a private entrepreneur.
VI. COSTS AND INO0 ATMBURAN O AND TUMBI
83. We were able to attain very little information on marketing there costs of the 1,wo societies over time, although we did discover over- was a difference in charges levied on the farmers for cooperative head costs in 1968-69- 5O cents per kilo of tobacco at TTGCS, compared to 35 cents per kilo of tobacco at UFC3.
In a mission report, to the Institute d R,tcherchs Agronomiques marketing expcnses TropicaLs in 1969, R. Vonbercie estimated the tobacco (ncluding those for conditioning, transport to Dar-es-Salaam, storing, losses, and selling) at Shs. 1.44 per pound.
The costs of production and the incomes of the farmers at Tumbi used to be quite different (see Table 13). Although the co9ts were higher at Urambo, particularly because of the use of hired labor, the higher yields and the higher average price there meant that the net return per acre was higher. This higher net return coupled with the larger farm size meant that f-mily incomes at Urambo were higher than at Tumbi. Earlier in his study, we noted that Walter Scheffler made these same conclusions. He also found that the incomes of the established farmers were much higher than those of the new farmers, and at Urambo the incomes of farmers using mechanized means of production were even larger (see Table 14),
86. Unfortunately we do not. have enough data to compare costs of production and net incomes on the two schemes today. But over time-- as the yields at Tumbi increased and those at Urambo decreased, and as the difference in the average price received by the farmers at the two schemes diminished--the differences in the incomes of these farmers probably diminished. Costs of production remained relatively constant, at Urambo during the sixties, so that in the later sixties incomes must have droppEd there. Also we do not know if the incomes of the farmers on the two schemes are larger than those of farmers growing other orops, which would create a large demand to get into the schemes. - 2 -
Table 13: COT OF PRODUCTION INPUTS AT URAMBO AND TUMBI, 1966 (Shs. per Acre)
Production Input Urambo Tumbi
Fertilizer 154 129 Plot/insecticides 7 33 Transport a/ 32 Twine, hes'iian, paper )77. Ploughing and ridging 9 .** Tools 7 11 Hired labor 358 130 Machinery 7 *** Interest 17 20 Depreciation 28 42 Rent to TSA 15 Baling 67
Total cost 701 429
Source: Visit of Messrs. Saory and Landell-Mills to Urambo 'ettlement Scheme for discussion with Walter Scheffler, 1966.
Note: At Urambo: average farm size, 5.1 acres; average yield per acre, h70 lbs. Shu. 1.70 per lb. = Shs. 1,139; average net return per acre, Shs. 438; average not income per family, Shs. 2,223.80. At Tumbi: average farm size, 3 acres; average yield per acre, 450 lbs. : Shs. 1.50 per lb. = Shs. 675; average net return per acre, Shs. 246; average net income per family, Shs. 738. a/ At Urambo the transport cost was mainly for transport of firewood to the curing barns, whereas at Tumbi it was mainly for transport of tobacco leaves to the baling shed.
Table 14* ECONOMIC RETURNS ON TOBACCO HOLDINGS IN URAMBO AND TUMBI (Shs. per farm)
Urambo Tumbi Category 1st year Established Mechanized let year Established Gross return 3,460 7,610 20,600 1,500 2,330 Real input 1,300 2,400 7,080 615 84o Farm income 2,160 5,210 11,520 885 1,490 ,Wages 712 1,880 4,040 275 280 Family income 1,448 3,330 9,480 610 1,210 Subsistence food consumption 289 389 547 297 280 Cash income 1,159 2,941 8,933 323 930
Source: Walter Schefflerp Bauerliche Produktion. Tab - k PT.lTNTpITURFOF THE ORÄGANI CAO CARRYING OL" THz UOAMBC AN UMBI PROJi10, 196h-65
11 Pa Annua 1,apita L Annual r1 t intlinv,est- ntl n a/ montr e/ ments a/ mgnts e housanwtd h.) thosand Ihs•
Land survey, •7 b .4 Pcäds. äridg' 1, 1tVt 6 6.3 Wa-er -ptrJj i, 23'3' -9 Fower 5uly19. - 3 3 "k 30. .~~ aren-, nF 41
a:" housing 5 5317h Othe r 539 -. 1. Under construction ' S. ____ Tetal, buildings and installations 13,751.51 5- 171' AunmabilU , 13. ý-b/ V- vehicles 591 ~b/ 3 3.9/-3. s3.9 AgricuilturaI ._._ .•- Baling pre s 29.4 b/ 7.0 Total, venilLes, mawchin-ry and equipment 75, b/ 177 'ota' capitaJ costs l4,50h.0 1,O.5 1,473 7 171.6
B. urrernt tont, 196h-6
Repairs to huildings and
Repnire tt machinery and fuel ... - -7 Othpr t ofV capit,al goods .. Persornnei Admini;tratin .. . 1 -3 7, Othwr 136.8
Total current costs 665• ,,
Grand total, A + B . 2,03h0 7
Transport receipts ... 7 ... Ad ju,(-.d expr ndiýture · , 5
Source: Scheffler, Bauerliche Produktion, pp. 134-35.
a/ These figure are the "Fixed Assets at Net Book Value" as of March 31, 1953. The highest asset valups in the balane sh6et at, this date are given. Any depreciation before March 3i, 1954, and any investments made between then and 1965 can no longer be reliably established on the basis of the accounting vouchers. Thery should, however, be substantial. In particular, the tied investments for the Urambo Settlement 3chemp cannot be isolated. Most of the Investmpnts listed here were made at the time of the Groundnut Scheme. It is true that these assets were partially used in the Urambo Settlement Wehemw,but nearly all of thr-m are overs.izfed.
In view of the stage of experience and the price level during 196h-65, the investments required for the Uranbo Master Grower Schemw were Shm. ?,450,000 for builings and 1nsta1lation:, and Ahs. 3,.49,500 for a total capital invesment,
b/ E-Umated acc-rding to 1964-65 standard. Actual itrn,s in Pnd s,urveyr are probably highor.
e/ Interest M%. No depreciation on land surveys, roads, and bridges. Depreciation for water, and power supplies over 12 years; for Urambo automobiles, 5 years; for Tumbi automobiles, it years; for agricul~ tural machinery, 5 years; for all other Investmnts, 20 ypars. L4
of estab- 87. The mos' complete 3et o- data comparing the costs lishing these two schem!s wis found in Walter Scheffler's 1968 study, Bauerlicho Produkin (see Tablrs 15 and 16) We used the 1965 exchange rate of i DM = Shs. 1.75 in converting the figures.
Tabl-e 16 YIEoLDS OF VIRGINIA TO'BACCO PROJECT3 IN TANZANIA, 196h-65
Yields UrambU____ o T uml.i ___
Number of tobacco fIarms 1,278 1),669 Acres under tobacco 4,399 2,998 Tobacco produc.tion (thousand lbs.) 3,306.9 a/ 15552.0 Tobacco production (thousand Shs.) 105893.8 b/ 4,940.3 Capital investment per tobacco farm (thousand Shs.) 11.270 2.502 Capital investment per tobacco area (thousand Shs.) 3.273 0.728 1:6.8 Fxponditure-incomc. ratio 1:5.9 Capital investment- income ratio 1:0.8 1:3.4
"ource: Schf fler, Bauerliche Produktion, pp. 134-35.
= 1,27 1Vs a/ Sal,s figures up to May 28; estimated salus a ter thlw date the establish-d b/ At Shs. 3.29 por lb. based on the prices ob'ained on farms surveyed in Urambo, including the 20-percenl reductions for the Tobacco Board.
88. As seen in Table 16, the returns per shilling of capital invest- Schefflar ment per expenditure are higher for Tumbi than for Urambo, but has included the large-scale operations in his table, so it doesn't accurately show the comparison of smallholder farmers in both schemes. increase of 89. One study has estimated the cost of expansion for an 500 farmers at Urambo. See Table 17. Table 17. CO1T OF EKPANSION FOR AN INCREADE OF FIVE HUNDRED FAB1RS JULTVATING A TOTAL OF 3IX HUNDRED ACRES a/
Ite Coc'. (Shs.)
Tobacco stores l00,00u Staff houses 35, 000 Tractors 100,000 Trailers 40 000 Baling presses 2,500 Baling boxes 1,000 Baling clamps 60 Spring balances 500 Tents 10,000 Tobacco fertilizer 129,000 Seedbed packs 18,000 Fertilizer cups 500 Barn thermometers 3,500 Sheet metal 70,000 Injector guns 16,000 Jembes 6,000 Axes 5,000 Pangas 2,000 Watering cans 15,000 Tobacco seed 2,000 Sulphate of ammonia 30,000 Maize seed 7,500 DDT 7,392 Jute twist 6,500 Paper and hessian 13,000 Drums 1 ,000 Miscellaneous chemicals 450
Tota 63 7,642
Source: "Estimate of Expenditures for Expansion at Urambo, June 30, 1967." a/ Assuming no stocks held by cooperative.
VII. BENEFITS AND SECONDARY EFFECTS OF THE TWO SCHEMES
90. In considering the purely economic benefits of the tobacco schemes to the farmers, Walter Scheffler showed in a 1965 study that "the average cash income of subsistence farms in the Tabora region may be estimated at -46 -
barely 17 to 350 hillng . Howevr, licnenwd growers receive 1,080 hilling; on an average and b 1abli-h o d tenants 2,930 Thilling-. "1/ This explain why at Urambo, a- woll as at Tumbi, there were consistently more farmer de:irig to ent er 1he schemes than were allowed to join.
91. We tried to gpt an idea of hot these increases in income are spernt by the farmers. Although no quantifiable data i, available, F. Kazaura, regional development director of Tabora regionqreported that the additiona' incom. has been spent on the following: (1) permanent corrugated roofing for housfn; (2) better wooden door.-, door frampe, wLndows, and furniture; (3) concrete floors in homes instead of dirt floors; (4) cotton mattresse. brought into the area from Sukumaland; () clothes (7-ndicated by an increase in the number of village tailors); (6) bicycles and radios.2/
92. Not only have the individual farmers benefited from the tobacco, but so have the community and the nation as a whole. Up to December 1969, through self-help projects in Tabora region, 2,500 kilometers of connecting road had been built; the Regional Development Fund had supplied Shs. 72,000 for road improvement; and five dispensaries valued at Shs. 3,000 each-and two schools had been built.3/ The local government has benefited because in 1964 the Tabora Council increased the levy on tobacco to five cents per pound.4/ Since 1965 the national government has had a value-added tax of 5 peroent on tobacco production and has received revenue from it.5/
9 . Further secondary effects ol the tobacco industry are widespread. In 1970 the agricuitural sector contributed h0 pcrcent o he country's GNP, and agricultural exports repreented about 80 percent of total exports. The approximate commodity concentration oC exports can be broken down as follows: _isal, 10 percent; cotton, 14 percent; coffee, 18 percent; cashew nuts, 7 percent; tobacco, 2 percent.6/
1/ Scheffler, "Tobacco Schemes in the Central Region, 1 p. 292.
2/ Interview on July 21, 1972, at Tabora.
3/ Tabora Tobacco Growers Cooperative Society, "Coop Statistics for 1968/69 Season," December 1969.
/ Minutes of the Tanzania Tobacco Board meeting at the Tabora Hotel, December 21, 1964.
5/ Interview on August 1, 1972, with G. Mandora, general manager, Tanzania Tobacco Authority, at Morogoro.
6/ IBRD, Eastern Africa Departmpnt, "The Economic Development and Prospects of Tanzania", Vol. 1, Report no. AE-26, Washington, D.C.. IBRD and IDA, 1972. plant, a plastic 911. Thp prodration of ooacco oupports a fertilimr of tobacco to factory, a cigarette factory, and o!hers. In the shipping foreign firms, appri imately 30),000 wooden crates holdLng 200 kilograms of tobacco each are used annually at the Morogoro factory. Current ly, from Tanz anian wood approximately l p1rcenT of those are purcha-,ed from Kenya. Plans are products, whil some 90 percent are im ported produce all of being coordinated with the Department of Forestry to these at Tanzania forest, reserves.l/
Rural Development Apects
welfare has not or can- 9$. Much of the real investment in rural and so forth that not be quantified. The roads, schools, dispensaries, but the were built at the beginning of the schemes can be quantified, awakening that may investment in farmers' abilities and the political not quantifiable. The yield the real improvement in rural welfare are national and farmers can now produce anJ grade a product that is of use of fertilizer international importance. They have been educated in the management and in crop-husbandry technology, as well as in the corporative of their marketing organization. The establishment of credit, marketing, sector of and technical extension systems, which can and do reach the an important society that in thp past was unreached, has had and will have role to play in improving rural welfare.
Points for Consideration in Future Rural Development Projects is to reach a 96. Replicability. In the light of our goal, which of time, there are large number of people in a relatively short period of this several conditions that force us to question the replicability type of project that involves such close supervision of schemes.
97. Let us assume that through international loans and grants, 875 Tanzania could make the estimated caoital investment of Shs. or even Shs. 2,500 per farm, as has been the case in Tumbi and Urambo, for sixty to one hundred thousand farmers. Although respectively, it is thi3 investment in itself could be a difficult problem, assuming feasible;how could a country like Tanzania get an educated, supervised extension and supporting staff without relying on a large importation of expensive expatriate personnel? In our analysis, we have proposed that Urambo, with one assistant field officer to 126 farmers, has pos- this sibly spread its extension staff too thin. If we were to replicate program on a large scale, we would need institutions and financial backing to train a large number of extension staff, who would have to spend time in the field to get practical experience before taking up their positions.
1/ Interview on Aituust 1, 1972, with L. G. Hayes, factory manager, Morogoro Tob,cro Factory, at Morogoro. remarkable bacokgroIund of grow ib the pa t decado, h.-i boon very selective in choo'sing farm,-r- and (xtbenzion staff to Join and remain with the schomo. If we want. to replicatf the Tumbi scheme on a larger scale and open it up to many more farmers, we. can not work only with the most progressive farmers and extension staff, and as a result our returns may not be as impressive as that of Tumbi's.
99. Political Environment. After the lessons at Urambo and Tumbi, we need to explicitly consider the economic and political advantages and disadvantages of alternative forms of supervision and expansion. There are certain costs and benefits to be considered in incorporating the current political goal of Ujamaanization into a rural development scheme. The higher costs in building permanent curing barns and water systems, for example, have been brought out in Bank supervision reports. But in our past study we have seen several benefits of collective operations in tobacco production; (1) Seedbed planting, performed fumigation, and care could lend itself well to larger units of production, (2) Ujamaa develop- ment may allow the lowering of costs for administration of accounts. A single entry could be made for the group insotead of onr entry for each grower. Therefore, a scarce skill could be used more economically, (3) In discussions with factory sales personnel at Morogoro, it, was mentioncd that one problem in selling Tanzanian tobacco to foreign buyers is that many of the bales are not of uniform size, weight, or quality throughout. A single farmer may not have enough tobacco of one quality to fill a 200-kilogram bale. In collective production, there would be a large volume of tobacco of a uniform quality to allow for quicker aggregation of more uniform bales for quicker sales.
100. In the curing process itself, collective production has advantages in that daily picking of leaves at their prime conditions could take place with enough uniform leaves to fill a curing barn. Currently, since the complete curing and storage process takes eight to ten days, because a farmer may have only one to two barns me mu-t wait four or five days between pickings. Consequently, some leaves are not quite ripe and some are over ripe at the time of picking, which results in a lower quality.
101. We feel that although some specific lessono can be learned from these projects, we would be very reluctant to transfer them to a different country with different political, social, and economic conditions unless they were reduced to broad generalizations.
VIII. WORLD BANK TOBACCO PROJECT
102. After preliminary studies, the Flue-Cured Tobacco Project, Credit #217-TA, was signed into effect on October 9, 1970. The project's main objective was to increase production of flue-cured tobacco in Tanzania by about 20 million pounds by 1978. IDA credit of US $9 million was to cover about 60 percent of the estimated total project cost, which was set at US $14.7 million. - 49
103 The projectis objectiv' w'ia to be aompli hed along the following Iins: (i1) In-ree t.h number of' small farmers growing tobacco from 1,00 to 30,000 Th-,1 farmers were to be o,ntab_Lishd in 10 different complexes, Pach conlaining 150 villages of 100 farmers per village. These complexe. wero to bring an addili onal .0,000 acres into tobacco production. Each complex was to have collecUve baling and processing facilities. (2) Provide seasonal or medium-term credit facilities for farm inputs and for construction of curing and grading barns on each farm. (3) Construct a system of access roads and a reliable water supply for domestic and farm use. (4) Preride for the establishment of project organization and an adequate extension service. ($) Introduce a system of tobacco auctions, constructing auction floors and additional storage and processing facilities for the tobacco.
104. The project's development was to be based on the Ujamaa village policy of the TANU Party. This policy was interpreted in World Bank proposals as including an individual farm for each farmer in addition to the various intermediate forms of Ujamaa villages, such as common processing and grading facilities. Each farm was to *canos1 of a tot,aL of 50 acres broken down as follows: 30 acres of woodland; 10 acrps oi nonarable land; and 10 acres of arable land, of which - acres were t.o be used annually for tobacco production--the amount which could be handied without hired labor. Each farmer was to construct. his own hou-se and curing barn on his plot. These were to be built from indigenous materia) to reduce the amount of medium- to long-term credit required from IIRD.
10$. By 1971 the number of farmers had gradually increased. In September 1971 much of the decision making for the Ujamaa policy was decentralized and placed in the hands of the local regional development committees. These local committees, anxious to implement the Ujamas ideology and the TANU policy, interpreted them as encompassing a strictly advanced state of complete collectivization of production. Soon after this change in interpretation took place, recruitment of farmers to participate in the project became a problem: There was a loss of about 25 percent of the tobacco growers between september and December 1971. In late December 1971 only 160 acres of tobacco had been planted, far below the original target of 1,800 acres and the later revised target of 360 acres.
106. Complete collectivization of production caused several problems not foreseen at the time of appraisal. The management's responsibility would be considerably greater if each village were operated as one 200- acre tobacco farm. There would be higher risks of losses in large col- lective curing barns than in the individual barns. The cost of building material for the large barns would greatly increase, as they would have to be built of semipermanent materials rather than from local materials as first planned. A much more sophisticated water system than originally planned would have to be installed, thus raising the investment costs even more.
107. In March 1972 the president and the prime minister visited the Tabora region and emphasized that complete collectivi7ation was a long-term 5 0 -
goal not to be implemvented i,medm ca.r and pronounced that the farmers would be able to retain individual ownership of the tobacco crops. As a result, there was an infLux of 8541 new farmers into the project in the next three months. So thc project had just faced its first hurdle. But the project's difficulties, incIuding slow recruitment, cannot be attributed to inadequate planning or appraisal. The project as appraised was similar to previous tobacco schemes, and as such it should not have experienced such problems, but after it was iniLiated the rapid change to a strict interpretation of the Ujamaa policy in tobacco development, immediate complete collectivization, occurred.
108. In examining the Ujamaa policy and th- collec11.ive aspects, we can see some of the problems it involves, such as higher managerial requirements, greater organizational skills, and some increased costs, but there are also some positive aspects of Ujamaa in relation to tobacco production. Currently individual farmers grade their own tobacco, whereas in Ujamaa villages it could be collectively graded. This would lead to a more uniform quality of tobacco per bale and also a more uniform weight per bale, thus bringing a higher price. According to the factory manager, Mr. Hays, at Morogoro, buyers are currently com- plaining of loose, airy bales of non-uniform weight. An Ujamaa village would also allow more rapid aggregation of bales, resulting in quicker sales and a faster reimbursement in money to the farmers; and Ujamaaniza- tion may bring significant benefits by lowering the cost of administration of accounts. There would be a single entry for the entire group replacing the numerous entries for individual growers. Ujamaa settlement will no doubt be more expensive in several respects, but once the objectives become clear to the farmers, the program is expected to be less difficult and therefore less expensive. APPENDIX A Page I
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MAP 2.LocatiOn of Tobacco Settlements(ATazn,Lt. APPENDIX A Page 3
400 A%
-A = Rock outeropping B = Surveyed road to be cleared by farmers. O = Zone of light grey soils suitable for tobacco pultivation D = Mbuga or wet soils ---Boundary for soil horizons ...Boundary of 25-acre plot
FIGURE 14:. Soil Zones and Settlement Patterns TITRT, QQ APH{Y
Government Document,.;
Published United Republic of Tanzania. The Etonomic 'urvey 1971/72. Dar-es-Salaam: Government Printer, 1972.
United Republic of Tanzania, Ministry of Agriculture. Annual Report of the Agriculture Division. Dar-es-Salaam: Government Printer, 1947-60.
Unpublished
Mtui, Joseph P. (zonal audit and supervision accountant, Tabora Zone). "Accounts for th( Year Ended December 31, 1970." Dar-en-3alaam: Ministry of Agriculture and Cooperatives, 1971.
Mwamagasi, L. A. (agricultural officer, Tabora Region). "Report on Field Tr.ps to the )chomes in Tabora Region," Dar-es-alaam: Ministry of Agriculture, December 1968.
Regional Settlement Office. "The Role of the V. S. D. in Tabora Region," Urambo, December 1963.
Tanzania Tobacco Board. Minutes of board meeting at Tabora Hotel, Tabora, December 21, 1964.
United Republic of Tanzania, Ministry of Agriculture and Cooperatives. "Production Division File." Dar-es-Salaam, February 1971.
"Urambo Production Reports," Dar-es-'alaam, 1970.
_ Ministry of Agriculture and Cooperatives, Audit and Supervision Section, Registrary of Cooperative 3ocieties, "Accounts for the Year Ended June 30, 1969."
Unpublished Sources
Collinson, M. P. "The Organization of the Administration and Supervision of N. D, C. A. Loans to Marketing Cooperatives."
_ "Farm Management Survey, 1963-1964
"Proposed Application for Credit for Flue-Cured Tobacco," Dar-es-Salaam: National Development Credit Agency, January 1967. Collinson, M. P-"A Report. on thc- Comparative Economics of Virginia and Western Aromatic Tobaccos on Family Farws in Tabora District." Tabora Research Center, Ministry of Agriculture, June 1965. delivered at, Dunbar, D. S. (general manager, BAT Tanzania). Speech Tabora, October 23, 1969.
Eggleston, John (Tobacco advisor for Village Set.t-lexonL Division, Min.i-Iry 5 r of Lands, Celinns, and Water DevolopmtinL). "Repor. on Urambo IBRD, from p. 76, May 19N0. and Gregor, J. "Flue-cured Tobacco Project, Full Supervision Report," IBRD IDA, July 25, 1972.
International Bank for Reconstruction and Development, East African Depart- ment, "The Economic Development and Prospects of Tanzania," Vol. 1, Report no. AE-26. Washington, D.C.: IBRD and IDA, 1972.
t Kayombo, E. 0., et al., "A Collec ion of Essays on Ujamaa Villages," Politi-,il Science Department, University of Dar-es-Salaam, March 1971.
Masambaji, Bernard, "Notes on Flue-cured Tobacco ProducLion in Tabora Area," October 18, 1969.
"Report on Field Trips to 1he Schemes in Tabora Region," December 1968.
Mpandahals (issis tant manager of TAC) . "Urambo Report." Tangnyli: A,riKi1turil Corporrahlin, Anguob 1965.
Seabrook, A. T. P. (general manager of TAC). "Monthly Report." February 1964.
Tabora Tobacco Growers Cooperative Society. "Annual Tobacco ProditLion and 'ales Records." 1969.
"Coop ,Satistics for 193/9 3eason." December 1969.
Tanganyika Agricultural Corporation. "Urambo Annual Report of l90b-o." 1963.
Village Settlement Divi-ion. "The Rural lociologica 3Ludy of Urmb , Kaliwa, and U3soke Tobacco J)ettlement Schomes," Mini3try of Latid-, Settlements, and Water Development, Ocbober 19.8.
Zegge, B. K. "Marketing Tobacco in Tanzania." Dar-os-43alaam: Ministry of Agriculture, Food, and Cooperatives, 19o9. - iii -
13ook ch!T i, ,U -i r. Haue rM er Pr i inLon un Ler Aii r eh,1 1i amn e dos Tabaknbau n1 T 1.aonM i: IiO nsti LuLv rur Kvr1scha t - ."Tlobaco Sche¤e in the Centra I Heglon, 1" in iallholder Farming and Sia.llho.Ldr Dev.iopmien tin Tanzania, ed. H. Ruthenberg. Munich: W4eltforum Verlag, African Studisi h, 1968. Periodicals Hanrooy, G. E-. "Tobacco Growing and Rural Welfare, " Netherlands Journal of Agricultural Science, Department o' the ?oyal Tropical Institute, November 1959. Interviews Hayes, L. G., factory manager, Morogoro Tobacco FacKry, on August 1, 1972, at Morogoro, Tanzania. KaLo, N. B., a:istani anager at Urambo from 1%Tv, on July 197;, at Tabora, Panzaniia. Kazaura, F., regional dJoerelopmenl director, Tbrn Reg Ln., on July , 1972, at Tabora, Tanzania. Mandara, G., general manager, Tanzania Tobacco Authority, on August 1, 1972 at Morogoro. Mandari, chief accountant, British-American Tobacco ComparV of Tanzania, en August h, 1972, at Dar-es-Salaam, Tanzania. Massambaji, G. A., leaf manager, Tanzania Tobacco Authority, on July 21, 1972, at Tabora, Tanzania. Mdee, Tanzania Rural Development Bank, on July 27, 1972. Mwamagasi, L. A., tobacco officer, Adivsory Division, Ministry of Agricullture and Cooperatives, on July 27, 1972, at Dar-es-aliim, Tanzania. Scheffler, Walter, doctoral researcher at Urambo in 1965, on August 8, 1972, at Essen, Germany. Seif, A. H., senior cooperative officer, Tanzania Tobacco Authority, on July 24, 1972.