Tanzanian Tantrum No.3443: Tanzania changes tune on food exports to East Africa

[SIZE=6]Tanzania changes tune on food exports to East Africa[/SIZE]

[SIZE=6]Saturday, September 17 2016[/SIZE]
http://www.theeastafrican.co.ke/image/view/-/3384930/medRes/1438702/-/maxw/600/-/medhjn/-/cereals.jpg
Tanzania is set to introduce new rules on food exports after it lifted a ban that had seen Uganda become the main source of grains in the region.

By Asterius Banzi and Apolinari Tairo

Posted Saturday, September 17 2016 at 14:26
IN SUMMARY

[ul]
[li]The government said the lifting of the ban was prompted by forecast of surpluses. However, exporters will still require permits for rice and maize, and quotas will also be introduced to limit the export quantities.[/li][li]The measures also appear to be aimed at reining in middlemen who capitalise on the harvest season and cash needs of farmers to buy produce at low prices, denying the growers high prices later, and entrenching poverty.[/li][li]Though EAC is a Customs Union, trade in food is one of the sensitive areas that are left to national interests especially with regard to the terms of importing food during deficits and exporting in times of surpluses. However, there are Custom external tariffs for importing maize, wheat and sugar from which countries can seek exemptions in a bid to make the goods affordable by citizens. [/li][/ul]

Tanzania is set to introduce new rules on food exports after it lifted a ban that had seen Uganda become the main source of grains in the region.

The government said the lifting of the ban was prompted by forecast of surpluses. However, exporters will still require permits for rice and maize, and quotas will also be introduced to limit the export quantities.

The Minister for Agriculture, Livestock and Fisheries, Charles Tizeba, said the new rules were meant to curb practices that jeopardise food security such as pre-harvest sale of produce.

“As of now, a company could be permitted to export even 350,000 tonnes of a food crop at a go. This volume is about two times the capacity of the governments’ food reserves,” Mr Tizeba said.

The measures also appear to be aimed at reining in middlemen who capitalise on the harvest season and cash needs of farmers to buy produce at low prices, denying the growers high prices later, and entrenching poverty.

Tanzania’s food projected production for this year is 16.2 million tonnes while the food requirement for next year is 13.2 million tonnes, yielding a surplus of three million tonnes. The harvest of cereals is estimated at 9.5 million tonnes against a domestic consumption of 8.4 million tonnes.

The National Food Reserve Agency has a storage capacity of 246,000 tonnes. Data captured this month shows currently it has a reserve of 67,506 tonnes only of maize, rice and sorghum. Mr Tizeba said the government has disbursed Tsh27.8 billion ($12.7 million) to its zonal offices to enable them buy crops to fill the gap.

Though EAC is a Customs Union, trade in food is one of the sensitive areas that are left to national interests especially with regard to the terms of importing food during deficits and exporting in times of surpluses. However, there are Custom external tariffs for importing maize, wheat and sugar from which countries can seek exemptions in a bid to make the goods affordable by citizens.

Mr Tizeba said traders were now free to export maize, sorghum, millet, rice, wheat, beans, cassava, potatoes and bananas potentially providing a respite for Rwandans who have over the past two months borne high food prices following a ban of exports there by Burundi.

Tanzania’s Minister for Home Affairs Mwigulu Nchemba had told parliament in July that the country expected a surplus of 2.5 million tonnes of cereals and other crops.

“Based on a reliable rainfall pattern, we expect to harvest a bumper crop in many parts of the country in the September harvest. This will see us continue selling the surplus to neighbouring countries within the EAC,” Mr Nchemba said.

A study on the impact of maize export bans on agricultural growth and household welfare in Tanzania found that the country was hurting itself and its farmers, more than it was improving food security.

The study, which was carried out by Xinshen Diao of the International Food Policy Research Institute, found that banning cross-border maize exports had very little effect on the national food price index, and that the benefits from lower maize prices were captured primarily by urban households, while maize producer prices decreased significantly.

“The export ban further decreases the wage rate for low-skilled labour and the returns to land, while returns to non-agricultural capital and wage rates for skilled labour increase, further hurting poor rural households and thus increasing poverty for the country as a whole,” concluded the study, published by USAid in January 2016.
hen the ban was in force, Uganda emerged as the main exporter of maize to the rest of the region.

Background

Tanzania’s on and off food export bans has often been frustrated by smuggling across porous borders and at times complicity by Customs officials.

Data from the East Africa Grain Handlers’ Regional Agricultural Trade Intelligence Network shows that while the ban was in force Kenya imported 13,103 tonnes of maize from Tanzania valued at $3.9 million in the first six months of this year.

The maize entered through the Namanga and Isebania border posts.

ALSO READ: Kenya pays $6.6m for maize from Tanzania

Lately, however, Kenya has increased maize imports from Uganda bringing in 11,002 tonnes valued at $3.3 million in the last three weeks. This was presumably after border controls were tightened given that the Uganda maize, at $299 per tonne, was two dollars per tonne more expensive.

The making of a pariah state…

A load of bullcrap, they put exports ban in place along their border with Kenya expecting that Kenya would go begging for food. This has negatively affected the farmers who are stuck with products such as maize, rice and sunflower seeds whose prices have plummeted to record low prices. The worst affected crops are those that are not consumed locally such as Njahi, cowpeas, lentils where for example the price of a bag 100kgs of pigeon peas was going for kshs 15000 at th farm gate is now going for 4000.
As WSR aptly told Magufooli - mwiba wa kujidunga hauambiwi pole

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So they banned themselves from exporting foodstuffs to the region, and when Uganda became the top food exporter, they got jealous and “unbanned” themselves.

https://sebaspace.files.wordpress.com/2014/01/museveni-00.jpg?w=474

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magufuli is financially illiterate.

[SIZE=6]Megafool Hoiyee.[/SIZE]

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Wach mkuu achape kazi. Makelele na vuvuzela tuachie south africa

Nope. Kenyan thieves were raiding TZ farms , paying pittance and leaving with lorries full of maize ,onions ,fruits etc.

HE President Magufuli wants to protect his citizens from exploitation and to protect his countries food reserves.

Useless Kenya cannot compete with neighbours in food production.

Galana Kulalu project is a white elephant money siphoning flop.

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Hehehe ujinga ni utanzania kweli… Meanwhile, naskia mahindi imeiva Kitale wacha nitafte pesa nikimbie huko

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Wezi balaa Kama wewe

anti Tanzania mini? a child from a poor household in
Kenya is more likely to succeed than a child
from a wealthy household from Tanzania or
Uganda. Tanzania exhibits the worst
performance among the three East African
countries. Kenya also ranks on top in terms
of enrollment of students in higher
education, followed by Uganda and then
Tanzania. In 2012, Kenya enacted the
Universities Act, which is aimed at
improving the quality of education at all
levels by promoting separation of
governance of universities and other
tertiary institutions and strengthening its
technical sector by separating it from the
university sector. The Global
Competitiveness Index (GCI) 2013-2014
ranks Kenya 44th in quality of education
out of 148 countries. By comparison,
Rwanda ranks 51st, Uganda 82nd, Tanzania
100th, and Burundi 143rd.

these Tanzanians are very ignorant

magufuli is one huge fool and dictator

Are they getting more for their produce, now that Kenyan thieves no longer go there?

classic case of a courtyard bully. juu tumefungwa sana natoa boli pumzi game isiendelee…

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Yes. And Kenyan brokers who were looting TZ food are complaining they aint making money as before.

wewe ni muongo…

@gashwin Taita-Taveta County cereal dealers complain they are not allowed to conduct business in the neighbouring country freely. “Tanzania authorities at Holili along the Kenya-Tanzania border recently ordered me to return several bags of maize I had bought from farmers in the country. I incurred heavy losses as I had to obey the order,” Charles Wachira, one of the maize dealers, protested.

“For the time being, I have stopped buying maize from Tanzania due to many trade barriers,” he said. Speaking to The Standard yesterday, Mr Wachira said traders from Tanzania were now transporting cereals to Taveta border for the local traders to buy stuff using the Kenyan currency to make huge profits. “We used to buy maize cheaply using Tanzania currency but authorities no longer allow us to trade in the neighbouring country.

Our counterparts in Tanzania instead bring maize to Taveta for lucrative business,” he said. “We do not get profit if we buy maize locally. A number of local traders have resorted to buying maize in Uganda to avoid exploitation.” Taveta Deputy County Commissioner Henry Wafula confirmed several Kenyan businessmen had complained to his office about harassment by Tanzania authorities. “It is true that local traders have complained that they are not being allowed to buy maize in Tanzania,” said the commissioner. Mr Wafula said he would liaise with his Tanzanian counterpart Reuben Kipuyo (Rombo DC) to address the matter. “Tanzania traders are not releasing maize to Kenyans. The standoff has occasioned maize shortages in the area,” he said. READ MORE Tea output to increase by 13pc despite strikes In a recent stakeholders’ meeting, Governor John Mruttu noted traders among them maize and gemstone dealers complained they were always being subjected to arbitrary arrest and theft of their goods while conducting business in Tanzania.
Read more at: http://www.standardmedia.co.ke/business/article/2000212299/taita-taveta-traders-accuse-tanzania-border-officials-of-harassment

Lakini Tanzania always will be on our shadow. It pains them alot btw, considering they are a very proud people

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In Tanzania, the word “thief” describes people who get arbitrarily arrested and forcefully dispossessed .