CONTENTS

Abstract………………………………………………………………………………………..…….i

Chapter one

1.0 Back ground of the problem……………………………………………………………………..1

2.0 Statement of the problem………………………………………………………………………...2

3.0 Objective of the study……………………………………………………………………………2

3.1 General objective………………………………………………………...………2

3.2 Specific objective……………………………………………………..………….2

3.4 Research questions…………………………………………………….…………2

4.0 Scope of the study…………………………………………………………………….………….3

5.0 Significant of the study……………………………………………………………….…………..3

6.0 Literature review………………………………………………………………….………………3

6.1 Empirical Evidences…………………………………………….………………..4

6.2 Empirical evidences……………………………………………….……………..4

Chapter two

7.0 Methodology of the study………………………………………………………….…………….5

7.1 Sample and Data…………………………………………………….…………...5

7.2 Data collection methods………………………………………………………….5

7.3 Data analysis……………………………………………………………………..5

Chapter three

8.0 Budget………………………………………………………………………………...................6

8.1 Table of budget…………………………………………………………………………..………6

8.2 Time frame……………………………………………………………………………….………7

References……………………………………………………………………………………………8

ABSTRACT

This study intend to examine the impact of agricultural sector on the economy of Tanzania, the study

will aim to identify possible factors and operational barriers contributing to poor agricultural sector

performance in rural areas and possible ways of improving the performance of this sector on

Tanzanian economy. Also will determine the constraints farmers encounter in improving agriculture

and to establish the relation ship between agricultural performance and economic growth.

Different tools and ways will be used to conduct the study in order to reveal the reality. Different

literature review have been done to see their findings considering this issue, after conducting this

study will help to find and solutions suggestions with recommendations on how to improve the

agricultural performance.

Chapter one

1.0 Back ground of the Problem

Before there was farming, hunting and gathering were the universal form of primary production.

These pre agricultural pursuits are now practiced by at most of few thousands of person’s worlds

wide, primarily in isolated and remote pockets within the low latitudes and among the sparse

population of very high latitudes (Getis Fellmann G 2003).

Agriculture is the growing of crops and tending of livestock whether for the subsistantence of the

producers or for sale or exchange has replaced hunting as economically the most significant of the

primary activities. Agriculture is widely spread, found in all world regions where environmental

circumstances permit. Crops alone cover some 15million square kms (5.8 million square mille)

world wide about 10% of the total land area (Getis Fellmann G).

United Nation estimated that more than one third of the world's land are (excluding Green Land and

Antarctica) is in Agricultural use, including permanent pasture land in many developing count tries

about two-thirds of the labor force is directly involved in farming and Harding. In some such Bhutan

in Asia or Bukinafaso and Burundi in Africa area highly reached 90%. Over all, however,

employment in Agriculture is steadily declining in developing economies.

In Africa the poor are typically concentrated in rural areas, and within that rural areas, relatively

better off persons typically get a higher share of income from non-farm sources (Reardon et al 1994).

If this also the case in Tanzania, then problems achieving poverty alleviation are linked to problems

in achieving higher agricultural performance.

The role of agriculture in overall economic growth in a country such as Tanzania at its present stage

of development. the evaluating the performance of agricultural sector in Tanzania since the midd-

1980S when the first economic reforms were implemented is not easy because of a number of

limitations and inconsistencies in Tanzanian agricultural data (Government of United Republic of

Tanzania 2000).

Tanzania agricultural sector consist of farming, fishing, livestock keeping and forestry. The main

agricultural products in Tanzania includes food and cash crops. Major food crops including maize,

potatoes paddy(rice)., sorghum, wheat, bananas, cassava, beans and sugar cane. The major cash

crops includes coffee, cotton, sisal, tea, cashew nuts, tobacco, pyrethrum and cloves.

Place of agriculture in Tanzania economy, according to the report issued by the minister of

agriculture and food security,, in Dar es salaam 14th October 2004. The sector contribute

approximately 50% to the GDP, Food crops contributing about 30% of the agricultural, Livestock

production account for 30% of the GDP. Agriculture produce raw materials for agro processing

which are the type of industries existing in Tanzania.

Agriculture provide employment opportunities to about 80% of Tanzanians. It has linkages to agro

processing, consumption and export, provides raw materials and market for manufactured goods

(National Website of Tanzania). Despite it great role, Agriculture facing the following problems:

Falling labor, land and input productivity due to application of poor technology dependence on

unreliable and irregular weather condition. In adequate agricultural research and extension services,

hence poor performance of the sector. Poor rural infrastructure; there are poor roads, poor storage

facilities, [poor marketing network and poor communications. In adequate Funding – farmers in rural

areas have little or no access to loans at all. Another problem including price fluctuation particularly

in the world market, disease and pests and luck of agricultural education among farmers.

2. Statement of the problem

while the government is determine to increase its budget contribution to the agricultural sector,

specific initiatives towards higher productive need to be put to ensure better performance of this

sector. Despite its major role in economic development, little has been done to analyze the impacts of

dropping agricultural sector productivity on Tanzanian economy. Previous studies conducted in

Tanzanian between 2001 and 2004 by the World Bank and Ministry of Agriculture, show that the

contribution of agricultural sector on GDP had fallen by almost 3% due to slow growth of this sector.

Also according to the report published on Adoption of Maize Technology in Southern Tanzania,

done by (Katinila N, Mwangi W, &Mushi A J 0ctober 1998), showed a decline in maize production

which was greatly contributed by poor weather conditions, and higher inputs prices leading to poor

fertilizer utilization. If the issue of agricultural improvement in Tanzania is not taken with

seriousness it deserves, its poor performance will greatly reduce its contribution on the economy and

generally failing to reduce poverty in rural areas.

If agriculture is to have the desired effects in poverty reduction and economic growth, it must grow

at a greater rate is more than 10% per annum, than it is doing now.

3. Objective of the study

3.1 General objective

The purpose of the study is to identify possible factors and operational barriers contributing to poor

agricultural sector performance in rural areas and possible ways of improving the performance of this

sector on Tanzanian economy.

3.3 Specific objectives

1. To determine the constraints encounter farmers in improving agriculture.

2. To establish the relationship between agricultural performance and economic growth

3. To document suggestion and proposal for improving agricultural productivity.

3.4 Research questions

1. What are the constraints encounter farmers in improving agriculture?

2. What are the relationship between agricultural performance and economic growth?

3. What are the suggestions and which ways for improving agriculture?

4. Scope of the study

Due to the limited resources, the study will be conducted in Mbeya, Iringa and Rukwa Region.

Mbeya is the region at the southern part of Tanzania bouldering Zambia, Rukwa is a region

bordering Zambia and Democratic Republic of Congo. These three site represents a range of sites

where Agricultural activities are being conducted, According to the Ministry of Agriculture report,

these regions also contribute high agricultural sector production in the country.

5. Significance of the study

Improving Agricultural productivity is not an easy since it is much cost full; it hoped that findings

generated from this study will make several contributions to both knowledge and understanding of

the problems facing this sector in sub Saharan African countries such as Tanzania.

The qualitative and quantitative data collected in this study will be made available Agriculture

planners such as Ministry of Agriculture and is hoped that this will lead to better designed, better

directed intervention programs to deal with economic problems associated with poor agricultural

performance.

6. Literature Review

African's Environment help to explain many of the current problems. Nearly 80% of the people of

sub-Saharan Africa are farmers and herders who live close to the land (English P.W 1995).

Still African not yet developed much in agricultural development in term of location, market plan

variation in topography and or soil fertility, still the Africans are much behind on this. Farmers must

assess and predict prices, evaluate the physical nature of farm land, and factor in the possible weather

condition (Fellmann G G 2003).

Von Thunen Model on Agriculture;

The land use pattern of most African countries is still problem. As the economist Von Thunen r

model, Land rent for any farm commodity decreases with increasing distance from the central

market, and decline is determined by the transport gradient for that commodity. Crops that have the

highest market price and the highest transport cost will be grown nearest to the market (Getis

Fellman G, 2003)

Overall agricultural performance in the post reform period has been respectable but not outstanding.

We estimate that agricultural GDP grew 3.5% per year over 1985-1990 and 3.3% over the entire

period, without adjusting the livestock figures. Since 1990, food crop production growth has slowed

to approximately the rate of population growth, while exports crops posted an impressed 7.7% rate of

growth (Government United Republic of Tanzania).

Problems which affected the performance negatively the performance and general contribution on

the economy, including inputs devaluation and subsidy removal, poor roads and marketing are the

major factors, the report suggested the following short term issues 9to solve such problems; to

develop a transparent National Policy for Agriculture Washington DC, under the World Bank in

2000)., to increase usage of fertilizers and provision of credits to farmers (the report published by

international food policy, Research institute).

At national level, key policies affecting resource management and restoration of flows include:

The Vision 2025 provides a broad set of overall policy objectives for Tanzania. It sets out long-term

economic and social goals to be reached by year 2025, including quality of life, stability and unity,

good governance, a learning society, and a competitive economy.

The goals set out in Vision 2025 provided the starting point for the National Poverty Eradication

Strategy (NPES – 1998) and the Poverty Reduction Strategy Paper (PRSP – 2000). Poverty

Reduction is a theme running throughout many national policies, and it is these two policies that are

Providing a guiding framework to other policies. The Agriculture Policy (1997) and Agricultural

Sector Development Strategy (2001) aim to increase agricultural production and rural incomes. They

promote integrated and sustainable natural resource management, but both support irrigation as a

basis for agricultural development.

6.1 Empirical Evidence:

The above theories have been put I practice in Tanzania since 1986- 2000 when the report was

submitted. The application is vividly seen in the following areas.

The usage rate of fertilizers by the Government to farmers, for example in Rukwa region, Mbeya and

Iringa region. Financial Institute have started offering credits to farmers, for example National

Microfinance Bank has started offering credits to farmers hence enabling them to access fertilizers

and other farms inputs.

Also according to the research conducted by Peter Worbst and Donovan in 1996 pointed out some

problems that were behind , poor agricultural performance, the report fall in four areas which

included ; price, Export crops, marketing and removing monopoly exports.

6.2 Empirical Evidence

Liberalizing of price have been applied, farmers are free to sell their crops to corporate or private

traders, normal producer price for food and export crops has been increased.

Liberalizing export crops marketing was adopted and shows some success. There are private

companies which are now exporting Agricultural crops, for example Mohammed Enterprise.

Chapter two

7.0 Methodology of the Study

This study will be cross-sectional analytical study where both qualitative and quantitative methods of

data collection will be used. The members of farmers are to be interviewed In national wide survey

determined by the importance of agriculture in a given zone. Two districts are to chosen based on

importance of their agricultural production at the district level.

Local Authority will provide a list of all farmers. The respondents will be chosen from list by the

systematic random techniques.

To increase data validity and variability farmers are to be interviewed by researcher using structured

questioners. The interviews are to be conducted April and December 2008.

7.1 Sample and Data

Convenient sampling method will be used to select the respondents. The study will be carried in

Mbeya and Rukwa regions. In Mbeya Kyele District will be chosen because is the one among the

district where agricultural production is doing well. In Rukwa region Nkasi District will be studied

because it has high productivity but it has serious. Infrastructure problems. A total of 200 farmers

will be studied. In each district 100 farmers will be interviewed, while at village level 50 farmers will

be studied per village.

In additional, selected village/community leaders from within the area will participate in the study to

complement objectives. Inclusion criteria for interview: Farmers Adults (By Tanzania definition-

18years and above) been doing agricultural for more than 5 years.

7.2 Data collection Methods

Various methods will be used for this study. These will include; Semi structured Interview (for both

leaders and farmers). This will gather information about knowledge, attitude and perception on

Agriculture.

Focus group discussion, with community leaders and farmers separately to explore knowledge, belief

and attitude on agriculture.

Questionnaire will be sent to respondents to explore their knowledge on the importance of higher

agricultural productivity.

7.3 Data Analysis

Data coding, checking will be done before entry to the computer statistical program. Each data

collected from each study will be coded. Data collected from interviews will be categorized and

summarized into matrices, figures and tables based on the kind of tool used. Quantitative data will be

analyzed using computer software analysis.

Chapter Three

8.0 Budget

It is expected that a total Tsh 21,405,000 will be spent in this stud, how ever the budget may be

increase or decrease due to the externalities and other factors which are flexible and un predictable

such as increasing of properties prices, climatic changes and other factors. A summary of the

expenditure is tabulated as follows;

8.1 The budget.

CATEGORY Activity Unit Rate(Tsh) No of

Persons

No of days TOTAL

Researchers Collecting

data

Day 5000/- 10 150 7,500,000

Secretary Typing data

&secretarial

duties

Day 3500/- 2 15 105,000

Communication Email, fax &

phone

1000 10 150 1,500,000

Transport Hiring a

vehicle &

day to day

transportation

cost

1,600.000

Stationary A4 size

papers,

writing pads,

pens,

phocopying

cost

350,000

Report writing Day 4000/- 10 15 600,000

Accommodation Day 3000/- 10 150 4,500,000

Meals and

refreshments

3500/- 10 150 5,250,000

TOTAL 21, 405000

Other category are left without specific rate and unit, this will depend on uses.

8.2 Time Frame

TIME FRAME ACTIVITY

April 15th

- April 30th

2008 Proposal writing

May 1st – May 15

th 2008 Preparation of instruments

May 2oth – August 31st 2008 Data collection

Sept 1st – Sept 30

th 2008 Data analysis

October 1st – October 15

th Report writing

November 2008 Submission of final report

References

English Paul W, (1995), Geography people and places in a changing World, 2nd

ed. national Text

book company, Texas.

Getis Fellmann G (2003), Human Geography, 7th ed. National Text book Company; Texas.

Government of Republic of Tanzania (2000), Agriculture in Tanzania since 1986; International

Food Research Institute, the World Bank Washington D C.

Nathaniel Katimila, Wilfred Mwangi and others (1998), Report on Adoption of maize technology in

Southern Tanzania.

International Food Policy Research Institute (2000), Washington DC, New York.

Peter Worbst and Donovan (1990), Problems behind Poor Agricultural Performance.

Ragnar Oygard, Axel Burch revink, Anna Tenw and others (10th

December 2002), Noragric

Agricultural Repot, University of Norway.

Tanzania National Website.

URT, (2006) Agriculture Policy (1997) and Agricultural Sector Development Strategy (2001).