cover 12-3 research report:Layout 1 3/14/13 10:46 AM Page 1 Y R E SE LI C AR O C H P Supporting Tanzania’s Cocoa Farmers F T O R E N DE V EL O P M REPOA P.O. Box 33223, Dar es Salaam, Tanzania By A. Nyomora, Z. Kanyeka and A. Ndunguru 157 Mgombani Street, Regent Estate Tel: +255(0) (22) 270 00 83 / 277 25 56 Fax: +255(0) (22) 277 57 38 Email: [email protected] C Y R ES EA LI R C O H P Website: www.repoa.or.tz F T O R E N DE V EL O P M ISBN: 978 - 9987 - 615 -69 - 8 REPOA, is an independent, non-profit organization concerned with poverty and related policy issues in Tanzania. REPOA undertakes and facilitates research, enables monitoring, and promotes capacity building, dialogue and knowledge sharing. REPOA’s research agenda is concerned with poverty and its alleviation. Our objectives are to: • develop the research capacity in Tanzania; • enhance stakeholders’ knowledge of poverty issues and empower them to act; • contribute to policy dialogue; • support the monitoring of the implementation of poverty related policy; • strengthen national and international poverty research networks, and forge linkages between research(ers) and users. It is our conviction that research provides the means for the acquisition of knowledge necessary for improving the quality of welfare in Tanzanian society. REPOA’s Research Reports contain the result of research financed by REPOA. Our Special Papers contain the findings of commissioned studies conducted under our programmers of research, training and capacity building. The authors of these research reports and special papers are entitled to use their material in other publications; with acknowledgement to REPOA. REPOA has published the results from this research as part of our mandate to disseminate information. Any views expressed are those of the authors alone and Research Report should not be attributed to REPOA. 12/3 Supporting Tanzania’s Cocoa Farmers By A. Nyomora, Z. Kanyeka and A. Ndunguru Research Reports 12/3 Published for: Research on Poverty Alleviation (REPOA) P.O. Box 33223, Dar es Salaam, Tanzania 157 Mgombani Street, Regent Estate Tel: +255(0) (22) 2700083 / 2772556 Fax: +255(0) (22) 2775738 Email: [email protected] Website: www.repoa.or.tz Design: TI Ltd. Suggested Citation: A. Nyomora, Z. Kanyeka and A. Ndunguru ‘Supporting Tanzania’s Cocoa Farmers ’ Research Report 12/3, Dar es Salaam, REPOA Suggested Keywords: Cocoa, household income, food security, cocoa production, livelihoods and poverty reduction © REPOA, 2012 ISBN 978 9987 615 69 8 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without the written permission of the copyright holder or the publisher. Table of Contents List of Tables ........................................................................................... iv List of Figures .......................................................................................... v Abbreviations ........................................................................................... vi Acknowledgements ...............................…………………………………… vii Executive Summary ................................................................................. viii 1. Introduction & Background to the Study ........................................... 1 2. Research Objectives and Methodology ............................................. 4 3. Study Findings and Analysis .…………………………………………… 7 3.1 Profiles of Cocoa Farmers – Demographical information .............. 7 3.2 Land and Plant Ownership according to Age of Farmers ............. 8 3.3 Current Status of Cocoa Production ............................................ 9 3.4 Cocoa Prices and Marketing ........................................................ 13 3.5 Contribution of Cocoa to District Council’s Revenues .................. and Farmers’ Incomes ................................................................. 16 3.6 Contribution of Cocoa to Household Food Security ..................... 20 3.7 Constraints to Cocoa Production ................................................ 22 4. Conclusions and Recommendations ……………………………………… 25 References............................................................................. ................. 30 Annexes 1: Conceptual Models of Poverty .......................................................... 32 2: World Cocoa Production: Facts and Figures ..................................... 33 3: Cocoa Trading Companies in Kyela District ...................................... 34 4: Survey Questionnaire for the Kyela Cocoa Farmers .......................... 36 Publications by REPOA ....................................................................... 38 iii List of tables Table 1 Surveyed divisions, Wards and Villages within Kyela District ........................... 6 Table 2 Characteristics of Cocoa Growers by Division .................................................. 7 Table 3 Age Disaggregated Ownership of Cocoa Plants .............................................. 8 Table 4 A comparison between Cocoa Yields and Yields from other Crops ................................................................................................ 9 Table 5 Overview of Cultivated Areas and Cropping Systems ..................................... 10 Table 6 Reasons Given for Not Processing Cocoa Beans ............................................. 14 Table 7 Buying, Selling and Transporting Cocoa Beans in Kyela ................................. 15 Table 8 Sources Used by Farmers to Obtain Cocoa Prices in Kyela District ................ 16 Table 9 Kyela District Revenues Earned from Cocoa Sales ......................................... 17 Table 10 Gross and Net Incomes Accrued by Growers from Cocoa .............................. 19 Table 11 Building Materials used in Different Cocoa Producing Areas ........................... 20 Table 12 A comparison of self-sufficient, non-self sufficient and surplus-producing Households ......................................................................... 21 Table 13 Food consumption patterns between divisions and Cocoa producing areas (%) .............................................................................. 21 Table 14 Contribution of Cocoa on Grower’s Ability to Purchase Goods and Services .. 22 Table 15 Key Constraints to Cocoa Production as identified by farmers in Kyela District 23 Table 16 Key interventions to improve Cocoa production as suggested by Kyela Farmers ............................................................................................... 24 iv List of figures Figure 1 Age of Cocoa Trees found in Kyela District ......................................... 11 Figure 2 Cocoa Harvesting – Annual Trends ..................................................... 12 Figure 3 Trends in Cocoa Bean Production, 2003 – 20008 ............................... 12 Figure 4a A Comparison of Wet and Dry Cocoa Prices in Unyakusa between 2003 & 2008 ......................................................................... 13 Figure 4b A Comparison of Wet and Dry Cocoa Prices in Ntebela between 2003 & 2008 .......................................................................... 14 Figure 5 Trend of Cocoa Income by Household from 2003/04 – 2007/08 ................................................................................ 17 Figure 6a Contribution of Various Crops to total Household Income, Unyakyusa, 2007/08 ............................................................................. 18 Figure 6b Contribution of Various Crops to total Household Income, Nteleba, 2007/08 .................................................................................. 18 Figure 7 Household Uses of Income from Cocoa .............................................. 19 v Abbreviations DALDO - District Agricultural and Livestock Development Office DED - District Executive Officer EPOPA - Export Promotion of Organic Products from Africa GDP - Gross Domestic Product HH - Household IFOAM - International Federation for Organic Agriculture Movement KYECU - Kyela Co-operative Union IMR - Infant mortality rate MMR - Maternal Mortality Ratio MAFSC - Ministry of Agriculture, Food Security and Cooperatives NARS - National Agricultural Research Systems NHP - Net Household Product REPOA - Research on Poverty Alleviation TOAM - Tanzania Organic Agriculture Movement TANCOCERT - Tanzania Organic Certification Association vi Acknowledgements The authors are grateful to REPOA for the financial support to undertake this study, and to the District Agricultural Office in Kyela for their cooperation during the survey. We are also indebted to the cocoa growers and ward agricultural extension staff who agreed to be interviewed. Thanks also to Professor Mwakabumbe, the District Executive Director, the General Manager of KYECU, and the managers of Biolands, OLAM, HAI and Mohamed Enterprises Ltd. vii Executive Summary Background to the study: Agriculture is the leading sector of the Tanzanian economy, and the most critical for inclusive pro-poor growth. Agriculture provides employment for more than three quarters of the population, accounts for 75% of the country’s exports, and contributes almost 50% to Gross Domestic Product (GDP). Cocoa was introduced into Tanzania in the 1950s, and was being grown commercially within a decade. Although it tends to be considered a relatively minor non-traditional cash crop, it is currently supports an estimated 25,000 farmers and their families (or around 100,000 people). At the moment, around 80% of the
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