Browsing by Author "Mgeni, Charles Peter"

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Comparative advantage of Tanzanian coffee sector under “Everything but Arms” export trading regime
(IISTE, 2022) Paul, Abel; Mgeni, Charles Peter; Mutabazi, Khamaldin; Kadigi, Reuben M.J.
This paper assesses the comparative advantage of the Tanzanian coffee sector in the European Union (EU) before and during the Everything but Arms (EBA) trading regime. Coffee’s comparative advantage at the EU level was compared to other commercial crops’ comparative advantage namely; sisal, tobacco, cashew nuts, tea and cotton. To get a clear effect of the regime, Balassa Revealed Comparative Advantage (RCA) index has been employed to analyze exports values from 1995 to 2000 before EBA and from 2001 to 2019 during EBA as two separate periods. Findings from this study indicate that before EBA, coffee was a third product to be exported but during EBA it become a less specialized product. Therefore, EBA has promoted less the export of coffee to the EU market than expected that it will increase as the regime released transaction costs which were restricting the trade. To benefit from EBA preferential agreements, policymakers and sectorial stakeholders have to revisit EBA terms and conditions especially that of “Rule of Origin” which is reported as a major obstacle for most countries to utilize trade preferences agreements merely when they bump into low production within the country of origin.
The determinants of farmers’ choice of markets for Staple food commodities in Dodoma and Morogoro, Tanzania
(MDPI, 2020) Kangile, Rajabu Joseph; Mgeni, Charles Peter; Mpenda, Zena Theopist; Sieber, Stefan
Institutional and policy-induced factors affect farmers’ decisions on the choice of the market to sell their staple foods. This results in low motivation to participate in the production and agricultural commodities’ commercialization. This study determines specific institutional and policy-induced factors affecting the farmers’ decisions regarding the staple food market choice in Tanzania. The study uses household survey data collected from 820 farmers raising staple food crops (maize, rice, sorghum, and millet) randomly selected from the Dodoma and Morogoro regions, Tanzania. The index method, descriptive statistics, and choice model (multinomial logit model) are used for data analysis. Qualitative policy analysis is used for analyzing policy-induced factors. Findings show a low level of integration of farmers into staple food markets, with female-headed households facing more hurdles in accessing markets than male-headed households. Age, formal training, the value of agricultural production, membership in organizations, access to credit, contractual arrangements, and distance to markets are significant factors driving farmers to choose a particular market to sell their produces. Restriction of selling and use of staple food commodities, instability of food policy administration, and procedural operation obstacles are found to be key policy-induced factors affecting the marketing of staple food commodities in Tanzania. The scale of production, as depicted by the value of production, and supply contract arrangement with buyers are important factors to ensure that farming households excel in lucrative markets through increased economies of scale and the ability to reach critical volumes for supplying to various markets. Supporting market linkage and infrastructure, as well as enforcing transparent and non-restrictive food marketing policies, would help many farmers enter into contractual arrangements that increase market access and improve market choices.
Dynamics of coffee certifications in producer countries: re-examining the Tanzanian status, challenges and impacts on livelihoods and environmental conservation
(MDPI, 2021-09) Kangile, Joseph, Rajabu; Kadigi, Reuben M. J.; Mgeni, Charles Peter; Munishi, Bernadetha Pantaleo; Kashaigili, Japhet; Munishi, Pantaleo K. T.
Certification is increasingly becoming necessary for accessing coffee export markets and practicing environmental conservation, especially at this time when many of the farmers in develop- ing countries strive to achieve agricultural transformation. Using data from 400 randomly selected coffee farmers in Tanzania, the study determined the status, constraints, key drivers, and impact of coffee certifications. Descriptive statistics and the endogenous switching regression (ESR) model were used for data analysis. Results indicated that the level of coffee certification is low, being constrained by unawareness and inaccessibility, the prevalence of coffee diseases, failure in realizing price advan- tages, and certification not being cost effective. Economies of scale, experience, and participation in collective actions are significant factors affecting coffee farmers’ decision to join certification schemes. Additionally, the study rejects the hypothesis of certification to improve household income. However, certification improved awareness and practices of environmental conservation among coffee farmers. It is thus important to embark on awareness creation and make certification services accessible and cost effective to coffee farmers for increased access to niche export markets. Easing transmission of price premiums to coffee farmers will also increase the supply of sustainably grown coffee, improve coffee farmers’ livelihood, and help in the attainment of environmental sustainability goals within the coffee supply chain.
Dynamics of coffee certifications in producer countries: re-examining the Tanzanian status, challenges and impacts on livelihoods and environmental conservation
(MDPI, 2021-09-20) Kangile, Joseph Rajabu; Kadigi, Reuben M. J.; Mgeni, Charles Peter; Munishi, Bernadetha Pantaleo; Kashaigili, Japhet; Munishi, Pantaleo K. T.
Certification is increasingly becoming necessary for accessing coffee export markets and practicing environmental conservation, especially at this time when many of the farmers in develop- ing countries strive to achieve agricultural transformation. Using data from 400 randomly selected coffee farmers in Tanzania, the study determined the status, constraints, key drivers, and impact of coffee certifications. Descriptive statistics and the endogenous switching regression (ESR) model were used for data analysis. Results indicated that the level of coffee certification is low, being constrained by unawareness and inaccessibility, the prevalence of coffee diseases, failure in realizing price advan- tages, and certification not being cost effective. Economies of scale, experience, and participation in collective actions are significant factors affecting coffee farmers’ decision to join certification schemes. Additionally, the study rejects the hypothesis of certification to improve household income. However, certification improved awareness and practices of environmental conservation among coffee farmers. It is thus important to embark on awareness creation and make certification services accessible and cost effective to coffee farmers for increased access to niche export markets. Easing transmission of price premiums to coffee farmers will also increase the supply of sustainably grown coffee, improve coffee farmers’ livelihood, and help in the attainment of environmental sustainability goals within the coffee supply chain.
Economic analysis of fresh fruit and vegetable export marketing channels by small-scale farmers in Tanzania: the case of Arumeru district
(Sokoine University of Agriculture, 2009) Mgeni, Charles Peter
The falling prices of traditional cash crops such as coffee and the growth of world markets for non traditional cash crops have led farmers to look for alternatives, hence the growth of exports of fresh fruit and vegetable. This study aimed at investigating the profitability and coordination of fresh fruit and vegetable export marketing channels by small-scale farmers in Tanzania. Specifically, the study had four objectives: (i) To describe Tanzania’s fresh fruit and vegetable export marketing channels; (ii) To carry out profitability analysis of the export of fresh fruit and vegetable by small-scale farmers; (iii) To determine factors governing small-scale farmers’ choice of an export marketing channel, and (iv) To identify challenges facing marketing agents within the fresh fruit and vegetable export market channels. A cross-sectional survey was conducted to collect primary data. Structured questionnaire was used to collect primary data; Secondary data were obtained from the Arumeru’s DALDO office. Descriptive and quantitative analytical techniques i.e. cluster analysis; Gross margin and logistic regression were employed. The findings suggest that four export marketing channels for fresh fruit and vegetable exist, that are vertically integrated. The enterprises profitability between farmers selling fresh fruit and vegetable to export and domestic markets was statistically different (P<0.05), meaning that export trade is more profitable than domestic trade, with a mean GM difference of Tsh. 543 642 per acre. Prices offered by buyers, the mode payment and rejection rate of the consignments were found to be the factors governing the choice of a particular export marketing channel. This study found that knowledge about Global good agricultural practices, record keeping, possession of storage facilities and contract farming were the major challenges facing FFV export market enterprises. This necessitates the formation of FFV farmers and traders association and provision of soft credit which may increase FFV export marketing efficiency.
The effects of trade governance on sugar trade and its landscape of policy practices in Tanzania
(SAGE, 2022) Kangile, Joseph Rajabu; Mpenda, Zena Theopist; Kadigi, Reuben M. J.; Mgeni, Charles Peter
Trade governance is important for the efficient implementation of trade policies that support and controls most of the global value chains (GVCs) trade in African countries. Poor trade governance leads to misalignment of trade policies and affects the sustainability of the agricultural commodities supply chains. This study used cross-sectional survey data of 375 randomly selected sugar supply chain actors in Tanzania to evaluate the level of trade governance in Tanzania and ascertain its effects on the sugar trade. Exploratory (factor analysis) and confirmatory (weighted least square regression) models were used for data analysis. The major findings are that governance affects the sugar trade with the magnitude of its effects being felt differently between farmers and traders. It shows further that abrupt trade policy change significantly (p < .05) reduces sugar trade by almost half (47.7%) and lowers the overall level of efforts to invest within the sugar supply chain. Ensuring trade policies are stable and predictable will increase trade by allowing forward contracting and investments. It is also important to create awareness of institutions and organizations managing the sugar supply chain by encouraging transparency in trade policy administration and practices for improving trade governance.
The effects of trade governance on sugar trade and its landscape of policy practices in Tanzania
(SAGE, 2022) Kangile, Joseph Rajabu; Mpenda, Zena Theopist; Kadigi, Reuben M. J.; Mgeni, Charles Peter
Trade governance is important for the efficient implementation of trade policies that support and controls most of the global value chains (GVCs) trade in African countries. Poor trade governance leads to misalignment of trade policies and affects the sustainability of the agricultural commodities supply chains. This study used cross-sectional survey data of 375 randomly selected sugar supply chain actors in Tanzania to evaluate the level of trade governance in Tanzania and ascertain its effects on the sugar trade. Exploratory (factor analysis) and confirmatory (weighted least square regression) models were used for data analysis. The major findings are that governance affects the sugar trade with the magnitude of its effects being felt differently between farmers and traders. It shows further that abrupt trade policy change significantly (p < .05) reduces sugar trade by almost half (47.7%) and lowers the overall level of efforts to invest within the sugar supply chain. Ensuring trade policies are stable and predictable will increase trade by allowing forward contracting and investments. It is also important to create awareness of institutions and organizations managing the sugar supply chain by encouraging transparency in trade policy administration and practices for improving trade governance.
The farm income and food security implications of adopting fertilizer micro- Dosing and tied-ridge technologies under semi-arid environments in central Tanzania
(Elservier, 2019) Habtemariam, Lemlem Teklegiorgis; Mgeni, Charles Peter; Mutabazi, Khamaldin Daud; Sieber, Stefan
Adopting fertilizer input and rainwater harvesting techniques play a significant role in minimizing soil nutrient deficiency and moisture stress impact, both prime causes of low crop productivity in Sub-Saharan Africa. This study analyses the extent to which fertilizer micro-dosing (MD) and tied-ridge (TR) technologies can improve smallholder farmers’ food security and farm income. A household survey data along with on-farm trial data collected from semi-arid Tanzania is used for the analysis. The trade-off analysis for multi-dimensional impact assessment model (TOA-MD) is applied for the income and food security impact assessment. The on-farm trial shows a yield increase ranging from 10 to 300 percent for millet, and between 60 and 400 percent for sunflower. The TOA-MD analysis shows that between 52 and 79 percent of farms could be positively influenced to adopt the technologies. The increase in mean net return per farm ranges between 186 and 305 PPP USD. Adoption of the technologies would decrease the percentage of food insecure farmers between 1.8 and 7.1 percent. The study concludes that the technologies have the potential to improve yield and farm income for many farmers. However, these technologies alone would not bring significant change in terms of reducing poverty and food insecurity.
Illegal wildlife trade: trade flows of wildlife Products and facilitation methods in the Ruaha Landscape, Tanzania
(Scientific Research Publishing, 2022) Mrosso, Hillary Thomas; Kicheleri, Rose Peter; Kashaigili, Japhet Joel; Munishi, Pantaleo; Kadigi, Reuben Mpuya Joseph; Mgeni, Charles Peter; Kimaro, Michael Honorati
Tanzania’s Ruaha landscape is prominent for its potential wildlife resources, which play a key role in sustaining the economy and livelihoods of the people. However, most of these resources are illegally obtained and traded in differ- ent places within and outside the Ruaha landscape. Due to its illegal nature, most of the important information regarding the trade is poorly documented. Therefore, the current study aimed first, to explore the origin and destina- tion of wildlife products; second, to assess the relationship between hunters and buyers or customers; third, to assess the means used to transport wildlife products; and lastly, to assess who influences people to engage in illegal hunt- ing and trade activities. In addition, we assess the materials used in the ex- change of wildlife products. Semi-structured questionnaires and face-to-face interviews were used to collect information from 123 respondents. Social network analysis was used to indicate the origin and destination of wildlife products. The findings show that 70% of wildlife products originate from the Ruaha National Park and MBOMIPA wildlife management areas, with the remaining 30% originating from villages. The majority of respondents (65%) reported transporting wildlife products by foot and bicycle as the primary modes of transportation. Suppliers of wildlife products are reported to have close and long-term relationships with their customers and traders, with most of whom being friends and relatives. We found most poachers to be influ- enced by their friends and relatives in terms making decision to engage in il- legal wildlife trade. In addition, crops like maize and rice were the most pop- ular products used to exchange with wildlife products in the Ruaha landscape. Therefore, in order to combat illegal trade in wildlife products at the local level, alternative income-generating activities need to be promoted accompa- nied by not only well-funded anti-poaching programmes but also more effec- tive surveillance plans. These should entail the use of advanced techniques and skills, such as wildlife forensics.
Illegal wildlife trade: trade flows of wildlife products and facilitation methods in the Ruaha Landscape, Tanzania
(Scientific Research Publishing, 2022) Mrosso, Hillary Thomas; Kicheleri, Rose Peter; Kashaigili, Japhet Joel; Munishi, Pantaleo; Kadigi, Reuben Mpuya Joseph; Mgeni, Charles Peter; Kimaro, Michael Honorati
Tanzania’s Ruaha landscape is prominent for its potential wildlife resources, which play a key role in sustaining the economy and livelihoods of the people. However, most of these resources are illegally obtained and traded in differ- ent places within and outside the Ruaha landscape. Due to its illegal nature, most of the important information regarding the trade is poorly documented. Therefore, the current study aimed first, to explore the origin and destina- tion of wildlife products; second, to assess the relationship between hunters and buyers or customers; third, to assess the means used to transport wildlife products; and lastly, to assess who influences people to engage in illegal hunt- ing and trade activities. In addition, we assess the materials used in the ex- change of wildlife products. Semi-structured questionnaires and face-to-face interviews were used to collect information from 123 respondents. Social network analysis was used to indicate the origin and destination of wildlife products. The findings show that 70% of wildlife products originate from the Ruaha National Park and MBOMIPA wildlife management areas, with the remaining 30% originating from villages. The majority of respondents (65%) reported transporting wildlife products by foot and bicycle as the primary modes of transportation. Suppliers of wildlife products are reported to have close and long-term relationships with their customers and traders, with most of whom being friends and relatives. We found most poachers to be influ- enced by their friends and relatives in terms making decision to engage in il- legal wildlife trade. In addition, crops like maize and rice were the most pop- ular products used to exchange with wildlife products in the Ruaha landscape. Therefore, in order to combat illegal trade in wildlife products at the local level, alternative income-generating activities need to be promoted accompa- nied by not only well-funded anti-poaching programmes but also more effec- tive surveillance plans. These should entail the use of advanced techniques and skills, such as wildlife forensics.
Revisiting the Solow-Swan model of income convergence in the context of coffee producing and re-exporting countries in the world
(Elsevier Ltd, 2022) Kadigi, Reuben M. J.; Robinson, Elizabeth; Szabo, Sylvia; Kangile, Joseph; Mgeni, Charles Peter; Marcello, De Maria; Tsusaka, Takuji; Nhau, Brighton
The purpose of this paper is to investigate the Solow-Swan’s proposition that poorer countries grow faster than richer countries causing declining income disparities across countries. The role of coffee trade in income convergence is also analyzed to enrich our understanding of whether traditional cash export crops, like coffee, contribute significantly to income convergence. We found that, GDP per capita was growing faster among coffee producers than coffee re-exporters, supporting the Solow-Swan’s model. However, coffee export values and shares decreased with convergence for green coffee producers while increasing among re-exporters, implying unequal distribution of benefits along the global coffee value chain.
The role of coffee production and trade on gender equity and livelihood improvement in Tanzania
(MDPI, 2021-09-13) Kangile, Joseph Rajabu; Kadigi, Reuben M. J.; Mgeni, Charles Peter; Munishi, Bernadetha Pantaleo; Kashaigili, Japhet; Munishi, Pantaleo K. T.
Achieving the sustainable development goals in developing countries will require the realization of benefits from the global supply and value chains, such as coffee, for inclusive economic development and poverty reduction. This study uses the data of 400 men and women randomly sampled coffee farmers from a developing country, Tanzania, to evaluate coffee income distribution, and how general coffee production and trade contribute to gender equity and livelihood improvement. Oaxaca–Blinder decomposition and Gini coefficient models are used for data analysis. We find a gender imbalance from the ownership and control of resources to the participation of men and women in the coffee supply chain. However, investing in supporting the coffee supply chain has an impact on livelihood improvement, due to coffee income inequality reducing effects. There is a gender gap in the income earned from coffee production and trading, which is 44% of the women’s structural disadvantages. Empowerment for equal access to land and credit, and offering trade facilitation services will bridge the existing gender gap. Additionally, developing and disseminating new coffee production technologies that will reduce discrimination, by offering new opportunities and making coffee an inclusive supply chain, remains imperative.
Sunflower Value Chain Enhancements for the Rural Economy in Tanzania: A Village Computable General Equilibrium-CGE Approach
(MDPI, 2018) Mgeni, Charles Peter; Müller, Klaus; Sieber, Stefan
Poverty is prevalent and widespread in rural Tanzania, where agriculture is the main activity. The government is making significant public investments intended to speed the growth of agriculture as a means to accelerate inclusive economic growth. In line with public investments, the government is promoting public–private partnerships by encouraging the use of improved agricultural innovations and linking farmers to markets, seeking to increase their yields and income. However, there is a paucity of empirical evidence using multipliers analysis about the extent of how gains in agricultural productivity and market linkages for farmers in rural areas help improve the economy at the household level. This paper assesses the welfare effects of the sunflower value chain for a rural economy in Tanzania using a computable general equilibrium (CGE) model for the selected village, which has a high potential for sunflower. Findings highlight the use of the CGE model, first, for analyzing and understanding the economic sectors at a village level. Second, the effects of various upgrading strategies promoted for improving rural farming communities by the government and non-governmental development partners at the micro-scale are analyzed and potential agricultural commodity value chains identified. The multiplier analysis provided insights regarding the potential of sunflower crops for the village economy.
Tariff impact on industrialization in Tanzania: evidence from Edible oil sub-sector
(Journal of Economics and Sustainable Development, 2019) Mgeni, Charles Peter; Müller, Klaus; Sieber, Stefan
Developing countries implement protectionist policies like imposing tariffs, with the aim of promoting domestic production. This study assesses the impact of the imposed tariffs on edible oil on Tanzania’s economy using a recursive dynamic computable general equilibrium model (CGE). Findings from this study show that implementing the tariff intervention on the dibble oil sub-sector has two principle outcomes; first, it triggers domestic producers to supply more due to the rise in demand and prices for the commodities, thus increases domestic production to meet demand; second, it reduces imports, consequently, decreasing citizens’ welfare by limiting the availability and access options from imported commodities. Protectionist policies, when solely used as a solution to increase domestic production in a sector that is inefficient in terms of productivity, creates a supply deficit in the market, thus reducing consumers’ welfare. Therefore, to improve sustainability and increase industrial competitiveness, it is imperative to promote policies and interventions that target increasing productivity. Interventions, like the use of improved seed and other modern technologies, that reduce costs of production are critical as commodities will be sold at a slightly competitive premium or the same prices as imported commodities.