IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1748.html

Measuring distortions along Tanzanian agricultural value chains

Author

Listed:
  • Majeed, Fahd
  • Tokgoz, Simla
  • Allen, Summer L.
  • Paris, Bas

Abstract

Policies targeting agricultural value chains impact Tanzanian farmers, so it is important to understand how these policies affect producer incentives and price transmission along the value chain. This research focuses on maize and groundnut value chains, estimating Nominal Rates of Protection (NRPs) along the value chain and analyzing their implications for producers. The results for border NRPs and trade status imply an anti-trade bias in maize; imported maize faces an import tariff, while exported maize often faces taxes. Furthermore, maize NRPs at the farmgate are negative, suggesting trade policies are negatively affecting Tanzanian farmers. For the groundnut value chain, border NRPs are consistently negative for all years, regardless of whether Tanzania imports or exports groundnuts and groundnut oil. Farmgate NRPs for groundnuts are negative as well. Groundnut processing and marketing remain undeveloped in Tanzania, and inefficiencies in the groundnut value chain create disincentives for groundnut farmers. For both maize and groundnut value chains, farmgate prices and NRPs for each region show significant variation, indicating the impact of regional/state-level policy framework or other market inefficiencies. Further research on the value chain participants and processing channels is needed to identify opportunities for increasing efficiencies in processing and value addition across these two value chains.

Suggested Citation

  • Majeed, Fahd & Tokgoz, Simla & Allen, Summer L. & Paris, Bas, 2018. "Measuring distortions along Tanzanian agricultural value chains," IFPRI discussion papers 1748, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1748
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/145408
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Syud Amer Ahmed & Noah S. Diffenbaugh & Thomas W. Hertel & William J. Martin, 2012. "Agriculture and Trade Opportunities for Tanzania: Past Volatility and Future Climate Change," Review of Development Economics, Wiley Blackwell, vol. 16(3), pages 429-447, August.
    2. Ellis, Frank, 1982. "Agricultural price policy in Tanzania," World Development, Elsevier, vol. 10(4), pages 263-283, April.
    3. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," The World Bank Economic Review, World Bank, vol. 2(3), pages 255-271, September.
    4. Gilbert, Christopher L. & Christiaensen, Luc & Kaminski, Jonathan, 2017. "Food price seasonality in Africa: Measurement and extent," Food Policy, Elsevier, vol. 67(C), pages 119-132.
    5. Baha, Michael & Temu, Andrew & Philip, Damas, . "Sources of Technical Efficiency Among Smallholders Maize Farmers in Babati District, Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2).
    6. World Bank, 2009. "Eastern Africa - A study of the Regional Maize Market and Marketing Costs," World Bank Publications - Reports 3155, The World Bank Group.
    7. Amarender Reddy, A. & Bantilan, Ma Cynthia S., 2012. "Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India," Food Policy, Elsevier, vol. 37(3), pages 255-263.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Makombe, Wilfred & Kropp, Jaclyn D., "undated". "The Effects Of Tanzanian Maize Export Bans On Producers’ Welfare And Food Security," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235499, Agricultural and Applied Economics Association.
    2. Dorosh, Paul & Minot, Nicholas & Rashid, Shahidur, 2025. "Food price stabilization: theory and lessons from experience," Food Policy, Elsevier, vol. 137(C).
    3. Chen, Bowen & Villoria, Nelson B., "undated". "Food Price Variability and Import Dependence: A Country Panel Analysis," 2018 Annual Meeting, August 5-7, Washington, D.C. 274285, Agricultural and Applied Economics Association.
    4. Schiff, Maurice & Valdes, Alberto, 1998. "Agriculture and the macroeconomy," Policy Research Working Paper Series 1967, The World Bank.
    5. Catherine Araujo-Bonjean & Gérard Chambas, 2001. "Le paradoxe de la fiscalité agricole en Afrique subsaharienne," Revue Tiers Monde, Programme National Persée, vol. 42(168), pages 773-788.
    6. Coxhead, Ian A. & Jayasuriya, Sisira, 2003. "Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis," Staff Papers 12691, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    7. Cheng, Fuzhi & Orden, David, 2005. "Exchange rate misalignment and its effects on agricultural producer support estimates: empirical evidence from India and China," MTID discussion papers 81, International Food Policy Research Institute (IFPRI).
    8. Romeo M. Bautista & Sherman Robinson & Finn Tarp & Peter Wobst, 2001. "Policy Bias and Agriculture: Partial and General Equilibrium Measures," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 89-104, February.
    9. Kym Anderson, 2006. "Reducing Distortions to Agricultural Incentives: Progress, Pitfalls, and Prospects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1135-1146.
    10. Barrett, Christopher B., 1998. "Immiserized growth in liberalized agriculture," World Development, Elsevier, vol. 26(5), pages 743-753, May.
    11. Kalle Hirvonen & Bart Minten & Belay Mohammed & Seneshaw Tamru, 2021. "Food prices and marketing margins during the COVID‐19 pandemic: Evidence from vegetable value chains in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 407-421, May.
    12. Salih, Siddig A., "undated". "Food Security in Africa," WIDER Working Papers 295412, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    13. Joseph I. Uduji & Elda Nduka Okolo-Obasi & Simplice Anutechia Asongu, 2021. "Analysis of farmers’ food price volatility and Nigeria’s growth enhancement support scheme," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 13(4), pages 463-478, June.
    14. Henning Tarp Jensen & Sherman Robinson & Finn Tarp, 2010. "Measuring Agricultural Policy Bias: General Equilibrium Analysis of Fifteen Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1136-1148.
    15. Balie, Jean & Strutt, Anna & Nelgen, Signe & Narayanan, 2018. "Infrastructure investments for improved market access in subSaharan Africa: A CGE analysis," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.
    16. Roe, Terry L., 1992. "Political Economy of Structural Adjustment: A General Equilibirum- Interest Group Perspective," Bulletins 7467, University of Minnesota, Economic Development Center.
    17. Anderson, Kym & Valenzuela, Ernesto & van der Mensbrugghe, Dominique, 2009. "Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model," Agricultural Distortions Working Paper Series 52785, World Bank.
    18. Ölkers, Tim & Liu, Shuang & Mußhoff, Oliver, 2023. "A typology of Malian farmers and their credit repayment performance - An unsupervised machine learning approach," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334547, Agricultural Economics Society - AES.
    19. Molle, Francois & Berkoff, Jeremy, 2007. "Water pricing in irrigation: the lifetime of an idea," Book Chapters,, International Water Management Institute.
    20. Wiebelt, M, 1990. "The Incidence of Industrial Import Protection on Agricultural Exports: A Comparative Analysis with Special Reference to Zimbabwe," 1990 Symposium, Agricultural Restructuring in Southern Africa, July 24-27, 1990, Swakopmund, Namibia 183489, International Association of Agricultural Economists.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1748. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.