Tanzania and Kenya Tehwei Hu The Public Health Institute University of California Berkeley A presentation at the World Bank Group Global Tobacco Taxation Conference Washington DC April 1819 2018 ID: 655918
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Tobacco Farming, Tobacco Taxation and Alternative Crops: China, Tanzania, and Kenya
Teh-wei HuThe Public Health InstituteUniversity of California, BerkeleyA presentation at the World Bank GroupGlobal Tobacco Taxation ConferenceWashington D.C. April 18-19 2018
1Slide2
OVERVIEW Background: Tobacco Control and Tobacco FarmingTobacco Farming in China
, Tanzania, Kenya, Why consider alternative cropsBarriers of alternative cropsFeasibilities of alternative cropsConcluding remarks2Slide3
BackgroundFramework convention on tobacco control(FCTC) Articles 17 and 18: provide tobacco farmers with viable alternative cropsTobacco industry uses tobacco farming as an issue against tobacco taxation
Tobacco farming is a political, equity, economic development, and humanity issue3Slide4
YearChina
Tanzania
Kenya
Area harvested (hectares)
2012
1,480,000
156,000
23,000
Production (tonnes)
20123,200,000120,00015,000 20113,157,000130,00014,000Export quantity (in tonnes)2011224,00074,0226,225(as a percentage of country’s total tobacco leaf production) (7%)(57%)(45%)Export value (in US$1,000)2011652,000106,58521,783Rank of tobacco leaf export among agricultural product exports (by value)201114212
Comparison of Tobacco Leaf Production, Export Value, and Role in Agriculture Economy China, Tanzania and Kenya
Source: FAO Statistics 2011 and 2012
4Slide5
Tobacco Farming: Economic Statustobacco farming household survey(2015)
China (n=436)Tanzania (n=408)Kenya (n=419)Annual Income from tobacco farming(US$)2,240990299
Borrowed loan (US$)
448
500
200
Continuous indebtedness (%)
0
10
20
Source: Hu and Lee (2016)5Slide6
Tobacco Farming: Labor Inputs
China(n=436)Tanzania (n=408)Kenya(n=419)Woman50% (time spent)*84 days
61 days
Men
30% (time spent
)*
111 days
71 days
Women spent additional time in household chores (cooking, cleaning) and child bearing
Source: Hu and Lee (2016
)*women spend 8 hours a day, men spend 5 hours a day6Slide7
Tobacco Farming: Empowerment and Entitlement(women respondents)
China(n=436)Tanzania (n=408)Kenya(n=419)Decision to borrow money (%)4214
23
Sales of tobacco leaf to market(%)
76
22
33
Revenue collection (%)
55
31
38Land ownership (%)86101Source: Hu and Lee (2016)7Slide8
Tobacco Farming: Woman’s health knowledge and health status
China and Tanzania: 60-65% are not aware of the negative health effects of tobacco farmingTanzania and Kenya: 70% women work in tobacco farm when they are pregnant 60% women experienced vomiting while curing and back problems from carrying the water and firewood 8Slide9
Women working and watering in the fields (Kenya)
9Slide10
Spraying pesticides (China)
10Slide11
Harvesting leaves (China)
11Slide12
Taking tobacco leaf to the market (China)
12Slide13
A happy farmer with the illusion of profits (Kenya)
13Slide14
Firewood (Tanzania)
14Slide15
Why tobacco farming? Tobacco farming earns cash incomeTobacco farming is often more profitable than other crops
Government encourages tobacco farming as a major source of tax revenue and foreign exchangesTobacco industry needs a steady supply of tobacco leaf15Slide16
Relative returns from tobacco vs alternative cropsChina, Tanzania, and Kenya16Slide17
Comparison of returns for tobacco leaf and alternative crops (in US$) in China
(Hu et al. 2008)Revenue cost ratio (per acre)Tobacco
2.6
Grain
2.5
Beans
4.3
Vegetable oil
3.7
Fruit
3.7 (Li et al. 2012)Net profit per acreTobacco4,586Broccoli5,554Cauliflower5,550Grapes10,17517Slide18
Comparison of returns for tobacco leaf and alternative crops (in US$)in Tanzania
(Kidani et al., 2013)Net Profit per Acre
Tobacco
161
Maize
116
Ground nut
194
18Slide19
Comparison of returns for tobacco leaf and alternative crops (in US$)in Kenya
(Ochola and Kosura, 2007)Net Profit Per Acre/Per day
Tobacco
2.02
Passion Fruit
47.71
Pineapple
7.47
Soy beans
3.63
Watermelon43.9Pepper24.78 Yu (2010) Tobacco1.79Maize2.8419Slide20
Why consider alternative crops Tobacco control may eventually reduce the demand for tobacco leaf– reduce tobacco farmers’ income
Negative impact on health (exposure to chemicals)Negative impact on environment (deforestation)Tobacco farmers are vulnerable to tobacco industry in grading and pricing 20Slide21
Barriers of crop transfer Institutional barriers: government and tobacco industry
Financial barriers: financial sources and interest rateInformation/technology barriers: knowledge of alternative crops, irrigation, and marketing Hu, Lisulo, Brown (2016)21Slide22
Feasibility of crop switchingGovernment has a role (financial incentives, affordable loans, technical assistance, and marketing)International communities (Kenya and Ghana received assistant from FAO, IDRC, UNEP)
Hu, Lisulo, Brown (2016)22Slide23
Concluding remarks Short term: so far tobacco control has minimum and slow
impacts on tobacco leaf productions Long term: government may develop strategies to assist tobacco farmers to diversify or to switch to more profitable cropsA successful switch to alternative crops would improve the livelihood and health of tobacco farmersHu, Lisulo, Brown (2016)23Slide24
Acknowledgement National Institutes of Health, Fogarty International Center and the National Cancer Institutes, grant number: RO1-TW009295
Bill and Melinda Gates FoundationWorld Bank Global Tobacco Control Program24Slide25
References Hu, T., Lee, A. (2015). Tobacco control and tobacco farming in African countries. Journal of Public Health Policy
, 36 (1):41-51Hu, T., Lee, A. (2016). The role of women in tobacco farming. A report submitted to the Gates Foundation, the Public Health Institute, Oakland, CA.Hu, T., Lisulo, A. Brown, M. (2016). The supply side of tobacco consumption: what will it take for farmers to switch to other crops? Prepared for World Bank Global Tobacco Control ProgramHu, T., Mao, Z, Jiang, H., Tao, M., & Yurekli, A. (2007). The role of government in tobacco leaf production in China: national and local intervention. International Journal of Public Policy, Vol. 2, Nov. ¾, pp. 235-248. KLi, V., Wang Q., Xia, N., Tang, S., & Wang, C. (2012, Sept.). Tobacco crop substitution: pilot effect in China,
American Journal of Public Health
, 102(9): 1660-1663.
Kidene, A., Mduma, J., Naho A., Hu, T. (2016).
Economic returns and costs of tobacco, maize and ground nuts: The case of
Tabora
region, Tanzania. African Statistical Journal, Vol. 19, 2016 (forthcoming)
Ochola
, S. A and
Kosura W. Case Study on Tobacco Cultivation and Possible Alternative Crops-Kenya, a report presented at the meeting of the Ad Hoc Study Group on Alternative Crops, organized by WHO, February 2007.Yu, V. (2010). A financial comparison of farming maize versus tobacco, www.nuruinternational.org.25