Import tariffs and costly import procedures may explain why consumers in the United Republic of Tanzania pay relatively high prices for wheat. Although wheat farmers benefit from higher prices, domestic production has not increased. Indeed, since 2000 domestic wheat production has been able to cover only about 20 per cent of the country’s consumption requirements.
Findings from a recent study conducted by the Monitoring African Food and Agricultural Policies (MAFAP) project suggest that:
Although the government supports cotton farmers by regulating prices, cotton producers in Mozambique receive prices that are lower than international reference prices. Findings from a recent study conducted by the Monitoring African Food and Agricultural Policies (MAFAP) project show that the following measures would improve prices for producers:
- fostering competition along the entire cotton value chain, especially among processing companies (ginners);
- making processing more efficient to increase both the quantity and quality of outputs;
- revising the domestic price fixing system to align producers’ prices with prices in international markets; and
- strengthening the market power of producers, relative to ginners, to improve transparency and equity in cotton market transactions.
Currently sugar cane farmers in the United Republic of Tanzania receive lower prices than they could, despite high domestic demand, because of high processing costs. Tariffs on imported sugar keeps prices high for consumers without boosting prices for farmers. A new policy approach based on liberalized trade and increased competitiveness of sugar processing could lead to higher prices for producers and lower prices for consumers.
Cattle farmers in Burkina Faso receive low prices and have few incentives to increase production and marketing. Cattle producers would receive higher prices if several specific measures, for example increasing export opportunities, were in place.