World Development Perspectives 18 (2020) 100201

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World Development Perspectives

journal homepage: www.elsevier.com/locate/wdp

Global horticultural value chains, labour and poverty in Tanzania

Fabio De Blasis
PhD in Global Studies, University of Bologna, Via Benvenuto Griziotti 29, 00166 Rome, Italy

ARTICLE INFO ABSTRACT

Keywords: This paper focuses on the effects of emerging global horticultural value chains on labour, rural poverty and
Global value chains inequality in Tanzania, framing the phenomenon in the wider process of socio-economic change after the in-
Rural wage employment troduction of neo-liberal reform and the latest agro-transformation policies. While the few empirical studies in
Development Sub Saharan Africa (SSA) have focused almost exclusively on formal labour in foreign companies, this article
Poverty
takes into consideration also informal wage labour. The article is based on 6-months of fieldwork in the northern
Africa
Tanzania
highlands, as part of a wider research project on contract farming and wage labour in the export-oriented
horticultural industry. With regards to labourers, a total of 96 in-depth interviews and 5 focus group discussions
were undertaken with formal and informal workers; 96 questionnaires were administered; and 13 semi-struc-
tured interviews were conducted with foreign companies, NGOs and local authorities. The paper highlights the
substantial use of informal workers by both foreign companies and Tanzanian contract farmers and emphasises
the fundamental importance of looking at the informal labour market in evaluating the impacts of emerging
value chains on rural poverty. It concludes that global horticultural value chains in Tanzania have little impact
on poverty reduction and reinforce the ongoing processes of social differentiation and labour exploitation.

1. Introduction However, there is considerable debate about the real capacity of

these new supply chains to include local farmers and in particular the
In recent years there has been a rising interest from foreign and poorest households; about the profitability and sustainability of the
private investors in African land (Cotula, 2013). The World Bank (WB, production of these crops within the global agribusiness system; about
2007; Deninger et al., 2011, 2013) claims that several countries on the the quality of the jobs generated; and about the impacts of the devel-
continent can seize the opportunities that are being created by changes opment of agro-industry on the wider processes of social and economic
in the global agro-food system to support the commercialisation of the transformation of rural areas in Africa (Gibbon and Ponte, 2005;
agricultural sector, the creation of jobs, technology transfer and the Bernstein, 2010; Oya, 2012, 2013; Borras, Franco, & Wang, 2013;
increase of 'non-traditional' exports (flowers, fruits, vegetables and Selwyn, 2014; Ponte, 2019). In fact, several scholars point out that even
energy crops). Many African governments are implementing policies to in the most agricultural-reliant countries of the continent, processes of
attract private and foreign investments by providing tax incentives and social differentiation are underway. Whilst a form of rural agrarian
granting agricultural land at advantageous conditions, by creating capitalism and small-holder commercial farming is emerging (Oya,
special economic zones and 'agricultural corridors' within which to 2010; Jayne et al., 2015), the poorest segment of the population – even
concentrate medium and large-scale productions and processing cen- when it continues to maintain access to small plots of land – seems to be
tres. Following this strategy, some countries have seen important de- undergoing an accelerated process of deagrarianisation, characterized by
velopments in horticultural exports to the European market, in parti- the search for (informal) sources of income in the extra-agricultural
cular; flowers, fruits and packaged vegetables (Fukase and Martin, economy (Bryceson, 2000, 2018). The inability of the poor to make a
2017). According to WB (2007, 2013), the development of the horti- living out of agriculture is “taking labour outside family farming and
cultural industry is an opportunity to diversify agricultural production creating a new class of wage labourers and migrants whose conditions
and reduce dependence on the exports of a few 'traditional' crops; to are the subject of debate in literature“ (Tsikata, 2015: 8). Some re-
link small farmers with new global markets through contract farming searchers have already shown that the use of wage labour in rural
schemes; and to create jobs for the poorest part of the population, given Africa is widespread across different form of production and the vast
the labour-intensive production and the additional demand for labour majority of wage labourers are causal or seasonal. Moreover, wage la-
in the pack houses. bour is becoming increasingly important for female-headed households

E-mail address: fabiodeblasis@gmail.com.

https://doi.org/10.1016/j.wdp.2020.100201
Received 4 November 2019; Received in revised form 29 February 2020; Accepted 16 April 2020
Available online 06 May 2020
2452-2929/ © 2020 Elsevier Ltd. All rights reserved.
F. De Blasis World Development Perspectives 18 (2020) 100201

and poor women with no male partner (single, separated, divorced): 2. Agricultural policy in tanzania: From SAPs to horti-business
despite low wages, women seem to be better-off working for wage ra-
ther than remaining in backwards and often male-dominated small- Tanzania is one of several African countries where most of the po-
holder agriculture (Cramer, Oya, Sender 2008; Sender 2002; Sender, pulation lives in rural areas (81%). Despite the rapid economic growth
Oya, Cramer 2006). of the last 15 years, levels of poverty and food insecurity remain sig-
With regards to global horticultural value chains, the few empirical nificantly high, especially in rural areas (URT, 2019). As in other sub-
studies available seem to show a trend towards progressively margin- Saharan contexts, although the majority of the population continues to
alising small-commercial farmers in favour of medium-large local pro- farm small plots of land, a process of deagrarianisation is underway
ducers and foreign farms. In Senegal, where French bean production (Bryceson, 2015). For example, between 2000 and 2018, the percentage
has grown in recent years to about 50% of the value of fruit and ve- of the population for which agriculture is the main source of income fell
getable exports, the incidence of small production in total export vo- from 62% to 52% (URT, 2002, 2019) and over 70% of the rural po-
lumes has fallen from 95% to 52% over ten years (Swinnen et al., pulation has an alternative or complementary source of income to
2013). Similar developments have taken place in Kenya: in the early agricultural production (URT, 2014, 2016c).
1990s, small farmers produced most of the fresh products exported to After roughly twenty years of policies inspired by African socialism
European markets, but their contribution to total production than de- (1967–1986) which led to significant improvements to access of social
creased despite strong export growth (Dolan, 2004; USAID, 2015). On services for the rural population – but did not succeed in the intention
the other hand, the development of the horticultural industry has of economic transformation and full reduction of poverty (Coulson,
generated a substantial amount of jobs in the areas affected by foreign 2013) – the International Financial Institutions (IFIs) imposed radical
investments (Maertens et al., 2012), leading, according to some re- economic reforms on the Tanzanian government, which entailed a
search, to significant poverty reduction. For example, in Kenya the drastic reduction of the role of the state in all sectors of the economy.
sector has generated more than 150,000 jobs in the large production of During the socialist period, the agricultural sector was subject to
flowers, avocado and French beans; the production of the latter directly marked state control and high taxation, absorbed a substantial share of
employs more than 60,000 people (of whom more than 70% are women public expenditure and employed the overwhelming majority of the
and many are migrants) in farms and pack houses (Ibid.). In Senegal, rural population. For these reasons, it was at the core of the Structural
Van den Broeck et al. (2017) believe that the employment generated by Adjustment Programs (SAPs), and within a few years, the Tanzanian
the large production of French beans has contributed to a significant government transformed one of the most state-controlled economies in
reduction in poverty particularly among women, who make up 90% of SSA into one of the most liberalised (Ponte, 2000:6). Between 1986 and
the workforce employed in the sector. The authors highlight that 1994, the government abolished the public monopoly on the purchase,
women have used their income also to invest in household’s farming processing and marketing of agricultural products; sold or dismissed
activities and improve food security. state enterprises; abolished the system of state-fixed price for the pur-
Yet, other studies cast doubts on the effects of horticultural exports chase of products to farmers; abolished subsidies for fertilizers, seeds
on poverty reduction, highlighting the labour exploitation and poor and insecticides; liberalised domestic food trade and allowed the pri-
wages paid by foreign companies to workers (Baumgartner, Von Braun, vate sector to import and sell input to farmers and to invest in pro-
Abebaw, & Müller, 2015; Ulrich, 2014; Staelens et al., 2016; Baglioni, duction and processing of products; drastically reduced subsidies to
2018). Moreover, the few studies available on labour in global value social services – health and education – and introduced cost recovery
chains often link poverty reduction with increased incomes for la- measures (Aminzade, 2013).
bourers employed under contract in foreign farms and pack houses. The The aim of the promoters of economic reforms was that the private
‘informal’ labour market, which involves the poorest part of the po- sector was to replace the public sector in several functions. The removal
pulation (Oya, 2013; Cramer, Johnston, Mueller, Oya, & Sender, 2017), of state control and the reduction of taxation on agricultural production
is rarely considered despite the abundant use of informal-non con- was to; facilitate the achievement of 'fair prices' for small-holder
tracted workers (whether ‘casual’, ‘seasonal’ or ‘permanent’) by both farmers (who accounted for more than 90% of the rural population),
foreign firms and local farmers, particularly in the harvesting of pro- stimulate agricultural export and the development of rural en-
ducts. In general, little research exists which frames the emerging trepreneurship (hindered by socialist policies), and contribute to the
global value chains in the broader processes of economic, political and reduction of poverty. However, the rapid and drastic implementation of
social transformation of African countries. these reforms led to a worsening of the already precarious conditions of
This article analyses the effects of the development of the export the majority of the rural population and to an increase in inequality due
horticultural industry on formal and informal labour, rural poverty and to the negative effect on the agricultural sector and farmers' incomes,
inequalities in 'post-socialist' Tanzania, where relevant studies are the lack of private investments and the sharp rise in the cost of living
lacking. The formal-informal dichotomy, while may not be useful when (WB, 1996; Ponte, 2002). The neo-liberal reforms also brought about
analysing the broader agricultural labour market in rural Africa, is profound changes in agricultural practices, in the mechanisms of access
useful to differentiate between those who are employed with a contract to local resources – land and labour – and in the strategies for survival
– and have been already targeted by previous research – and those and accumulation of rural populations. On the one hand, wealthy
employed without a contract within the emergent export-oriented farmers located in the most fertile areas and better linked with urban
horticultural industry. and regional markets have modified and intensified agricultural prac-
The study is based on a 6-months fieldwork as part of a wider 3-year tices by introducing more profitable cash crops, increasing the use of
research project focused on contract farming and wage labour in the hired labour and modern inputs, but on the other hand, the majority of
northern highlands. In-depth and semi-structured interviews were the population has encountered rising difficulties in accessing credit,
conducted with contract farmers (120) and wage labourers (96) and a markets and inputs to finance production and obtain a sufficient farm-
total of 216 household questionnaire were administered; 7 focus group income to meet families’ basic needs in a context of the rising cost of
discussions with contract farmers and 5 with wage labourers were living (Ponte, 2002). The poorest part of the population continued to be
conducted, and semi-structured interviews were also conducted with involved in subsistence farming, and reacted by trying to diversify
foreign farming companies (3), exporters (4), NGOs (2) and district sources of income in the informal non-agricultural economy, but
authorities (4). without being able to derive any significant benefit from it (Ibidem;
Ellis & Mdoe, 2003; WB, 1996; Bryceson, 2015).

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F. De Blasis World Development Perspectives 18 (2020) 100201

From the mid-1990s onwards, the high social and economic costs of new Global Value Chains (URT, 2010:114). Through this agrarian
the reforms prompted donors and the Tanzanian government to re- policy, the Tanzanian government aims to translate the economic
evaluate the development strategy introduced with SAPs. In the second growth recorded in recent years, which has been accompanied by dis-
half of the 1990s, the IMF and the WB recognized that the neoliberal appointing results in terms of poverty reduction and job creation
'orthodox' economic reforms had not produced the expected results: the (UNDP, 2015), into a pro-poor growth.
free market and macroeconomic rigour had to be accompanied by an While such transformation of Tanzanian agriculture as a whole is
'efficient' state, able to exercise 'good governance', to guarantee an still at an embryonic stage, the horticultural industry has developed
economic climate suitable to entrepreneurship and private investments, particularly in the highlands of the regions of Arusha and Kilimanjaro,
to adopt 'inclusive policies' and to provide a 'safety net' for the most where a process of 'agro-industrialisation' and 'clustering' of the sector is
vulnerable part of the population (WB, 1997). In addition, the need for emerging (Cooksey, 2011; Mashindano et al., 2013).
greater state involvement in rural and agricultural development policies
through investment in infrastructure was (apparently) recognised. In 3. Horticulture and labour in northern highlands
this context, in the 2000s, the modernisation and commercialisation of
agriculture became (once again) a top priority for development and Horticulture is one of the sectors of the economy that has grown
poverty reduction policies in Tanzania (URT, 2001, 2006). As also most in the last fifteen years, at an average of 11%, whilst agriculture
suggested by the 'new development paradigm' proposed by the WB in its grew by 3% and GDP by 6–7% (TAHA, 2016). This growth was sup-
World Development Report 2008, the Tanzanian government stated ported both by the increase in the production of fruit and vegetables for
that it wanted to pursue (again) the objective of the 'green revolution', local markets by Tanzanian farmers and by the growth in the volume
through a partnership between the public and private sectors and be- and value of horticultural exports, which exceeded $500 million for the
tween large companies and small farmers (URT, 2009, 2010). On the first time in 2015 (Ibid.)
one side, the Kikwete government (2005–2015) has in fact (modestly) The production of fruit and vegetable crops for sale on the domestic
increased public spending in the agricultural sector by reintroducing market has been intensified in recent decades especially in the high-
subsidies for the production of certain 'traditional' food and export lands that extend from the city of Lushoto to that of Arusha, and par-
crops, by investing in the expansion of irrigation systems and in the ticularly in the districts of Moshi and Meru. These areas have been the
construction and rehabilitation of warehouses for product storage. On most integrated into the market economy since colonial times and are
the other side, the strategy launched with the Kilimo Kwanza (KK) now experiencing more accelerated processes of economic transfor-
programme is aimed at achieving greater involvement of the private mation and social differentiation than other regions and districts of the
sector in the production, processing and marketing of agricultural country. On the one hand, the increasing fragmentation of land caused
products and in the distribution of inputs and services to farmers (URT, by population growth in mountain villages and the negative effects of
2009). Through the granting of agricultural land on favourable terms, neoliberal policies in the 1980s and 1990s have accelerated the process
tax incentives, the establishment of special economic zones and the of deagrarianisation (Bryceson, 2000). On the other hand, these areas
creation of 'agricultural corridors' and 'agro-industrial clusters', this are not only home to the majority of the country's foreign farms, but
policy seeks to attract medium and large-scale foreign investments with also to the most market-oriented Tanzanian farmers. One of the small-
the aim of 'modernizing' the sector and creating jobs in rural areas. The holder farmers strategies to adapt to the agricultural crisis in the
new development strategy also places great emphasis on the need to transition from socialism to the free market has been the intensification
involve local farmers in modern regional and global supply chains, of the production of short-ripening vegetable crops – tomatoes, cab-
particularly through contract farming arrangements and outgrowing bage, onions, beans, and so on – for local market, to the detriment of
schemes. Contract farming is in fact considered as a form of inclusive 'traditional' long-ripening export crops, in particular, coffee. The in-
business that allows small local farmers to be included in new agro- tensification of the production of these crops, which ensure faster in-
industrial chains, ensuring them access to modern inputs and technol- comes and require a greater workforce in a much more concentrated
ogies (seeds, fertilizers, insecticides), facilitating the adoption of 'good period of time, has prompted many farmers to increase the use of hired
agricultural practices', the development of small rural entrepreneurship workers, leading to “the contractualisation of farm labour recruitment”
and ultimately the reduction of poverty (URT, 2013, 2015). at the expense of the traditional mechanisms based on social relations
The KK programme has resulted in the Southern Agricultural and labour exchange (Ponte, 2002: 123). In mountain areas above
Corridor of Tanzania project (SAGCOT) and the Horticultural Industry 1000 m, these crops are produced by small-holders on small plots of
Development Strategy 2012–2022. SAGCOT is a public–private part- land (0.1–0.5 ha) because of the high population density – which has
nership “intended to improve the incomes, employment opportunities led to a fragmentation of land properties – and high costs related to
and food security of smallholder farmers (…). This will be achieved by inputs. In the valleys and flat areas (800–1000 m) between the cities of
linking them to internationally competitive supply chains and accel- Moshi and Arusha, these crops are also produced by some African en-
erating commercial agricultural development, in particular by using trepreneurs on medium-large plots of land with access to mechanised
foreign direct investment attracted by the removal of policy and in- irrigation systems, who employ large numbers of hired labourers.
frastructural constraints to competitiveness and by facilitated access to Around the production of such crops (particularly tomatoes), African
land” (URT, 2013: i). By 2030 SAGCOT aims to bring 350,000 ha of capitalist production has emerged (again) in the last two decades
farmland into commercial production for regional and international (Mueller, 2011, 2015). The area that extends from the city of Lushoto to
markets, to create 450.000 jobs, to increase annual farming revenues by that of Arusha is now identified as the 'north-eastern horticultural
US$1.2 billion, and to lift more than 2 million people (roughly 450,000 corridor' and supplies the country's main urban markets.
farm households) out of poverty (Ibid.). Like SAGCOT, the Horticultural In this context, foreign investments have taken place and the export-
Industry Development Strategy has provided for the creation of ‘Hor- oriented horticultural industry has developed. In the districts of Meru
ticultural Corridors' and 'Horticultural Export Processing Zones' in and Moshi, economic liberalization, the crisis in the coffee industry and
several highlands of the country, with the aim of “increasing horti- the Tanzanian government's policy of attracting foreign investments
cultural production and exports by 10 times in 10 years (…). This can have stimulated the development of the first foreign production of
be achieved through the promotion of large-scale production as well as flowers for export since the mid-1990 s (Cooksey, 2011). Over the last
the organisation of small-scale producers into blocks of similar crops so fifteen years, new foreign investments in fruit and vegetable production
as to effectively utilise economies of scale and competitiveness in the have led to a rapid process of diversification of the industry towards
market”. The strategy is intended to create one million jobs, developing crops such as French beans, peas and avocado for export to the Eur-
rural entrepreneurship and including thousands of small farmers in the opean market. In addition, the investments have concerned not only the

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F. De Blasis World Development Perspectives 18 (2020) 100201

production, but also the packaging of products on site: some companies spread to nearby villages (…) and the next day people in need of money
export these products already packaged from northern Tanzania (or show up en masse at my land”. In case of need, the second channel of
Kenya), using 'pack houses' within the special economic zones and recruitment used by the largest entrepreneurs in the period of max-
buying from their suppliers through contract farming arrangements, at imum productivity, is that of the road: “every morning, at the focal
prices set in advance, taking care of the collection and transport of points along the road that connects the city of Moshi with that of
products and often providing inputs on credit. Overall, in the area be- Arusha, hundreds of people meet [both residents in neighbouring vil-
tween the cities of Moshi and Arusha there are now about 30 horti- lages or in mountain villages], with hoe in tow, waiting for some en-
cultural companies between farms and exporters (TAHA, 2016; MMA, trepreneur [or his delegate] to offer them a job”.
2017). Since the second half of the 2000 s, some Tanzanian en- Small farmers located in mountain villages (above 1200 m), unlike
trepreneurs have also introduced French beans – replacing tomato foreign companies and entrepreneurs, grow peas and French beans only
production – through informal contract farming. According to data for some months during the year (May/June to September/October),
provided by exporters, they contribute 70–80% of the production pur- using small plots of land (0.5–1 acre) but associating in groups of
chased outside the foreign farms. Finally, with the support of interna- 20–100 members for each village, so as to ensure a minimum and
tional donors in recent years, some small-holder mountain horti- constant supply to exporters. Therefore, in a given village, there can be
culturists – already strongly market-oriented – have also been involved several hectares under production. Small mountain farmers use two
in contract farming; in 2016 there were 3000–5000 Tanzanian farmers types of labour force: family labour, which is mainly employed in soil
engaged in the production of French beans, peas, (and to a smaller preparation, sowing and the application of insecticides and fertilizers;
extent) avocado and passion fruit for export. and hired labour, which is employed on an informal basis in the har-
Due to the introduction of labour-intensive, highly perishable pro- vesting of products. Even in mountain villages, with the introduction of
ducts, subject to stringent quality and quantity criteria and tight new export crops, particularly in the period from June to October, the
deadlines and delivery methods to exporters, the demand for labour has demand for labour has increased considerably, so much so as to push
increased significantly both in foreign farms and among Tanzanian many farmers (46% of the 120 farmers interviewed) to employ workers
farmers. Overall, it is estimated that more than 10,000 workers are from neighbouring villages, when previously only workers from the
employed in the horticultural industry, mainly in the harvesting and same village were employed. On average, these farmers hire labour for
packaging of flowers, French beans and peas (TAHA, 2016). Particu- 11.5 days a month, employing up to 16 workers a day.
larly in bean and pea production, many of the agricultural workers are The following part of the article focuses on the conditions of wage
employed on an informal/daily basis. labourers employed by foreign companies and Tanzanian contract
Foreign farms and Tanzanian entrepreneurs, located in the flat areas farmers in the Meru and Moshi districts. In total, 6 months were spent
at the foot of the Kilimanjaro and Meru Mountains along the road from in Tanzania in 2016/2017 as part of a broader research on contract
Arusha to Moshi use their land to ensure a constant supply to exporters: farming and wage labour in the horticultural industry. With regards to
while in one part of the land the beans or peas are ready to be har- wage labour, five focus group discussions were conducted; 96 agri-
vested, in another part they are growing and in another part they have cultural workers were interviewed and as many questionnaires were
just been sown. Under this system, foreign companies and Tanzanian administered and processed using Excel. Workers included in the
entrepreneurs harvest and deliver these products to exporters three to sample were randomly selected: when firms/farmers agreed to co-
five times a week almost continuously throughout the year. Foreign operate in research, interviews took place on farms; alternatively, in-
farms use land ranging from 5 ha (those that only produce flowers in terviews were carried out in the surrounding areas – outside farm gates
greenhouses) to 50 ha (those that also produce green beans and peas in – at the end of the working day; finally, some interviews took place at
open land) and employ between 150 and 300 contracted workers. The the meeting points along the A23 road linking the city of Arusha with
latter are paid a monthly wage and are employed for sowing, soil that of Moshi, where many casual/seasonal workers meet every
preparation, fertiliser and insecticide application, harvesting of flowers morning waiting for any employers to transport them to their land and
(in greenhouses), and French beans and peas (in open fields). In addi- use them on a daily basis. On average, face to face interviews lasted 45
tion, for the harvesting of the beans and peas, foreign farms informally mins, while focus group discussions lasted 2,5 h. All the interviews were
employ between 50 and 200 additional workers per day, four to five conducted in Swahili (with a local interpreter), recorded, transcribed
days a week, with a higher intensity during the high season (when and translated into English. All the workers interviewed are employed
productivity increases due to optimal climatic conditions). Informal in French bean, pea or flower value chains and live in the area between
foreign-farm workers who are employed in the harvesting of beans and the cities of Moshi and Arusha, both in the mountain villages and in the
peas are recruited by word of mouth; “Contracted workers spread the 'intermediate' ones located along the A23 road that connects the two
word in their villages of residence and the next morning a large number cities.
of relatives and friends show up”. The influx of aspiring workers “is so
high that every morning dozens of people we cannot employ remain 4. Who are the wage labourers?
outside the gates (…). Since the introduction of French beans in the
company, although the demand for workers has increased ex- As mentioned above, paid agricultural workers can be divided be-
ponentially, we have had no difficulty finding workers,” says one of the tween those who participate in the labour market having signed a
managers of a Dutch firm. written contract – henceforth 'formal workers' – and those who parti-
Like foreign farms, Tanzanian entrepreneurs also grow French beans cipate in it without having signed a contract – henceforth 'informal
and employ a large number of wage workers throughout the year, albeit workers'. The former are the wage labourers contracted by foreign
to varying degrees depending on the low or high season. The en- farms, while the latter are the wage labourers employed on an occa-
trepreneurs surveyed (8) use an average of 6 ha of (rented) land for the sional basis, daily or continuously but without a contract, both by
production of beans in monoculture and employ an average of 47 foreign farms and by Tanzanian farmers. Overall, 32% of the workers
workers per day, 16 days a month, in the harvest alone. In addition, surveyed are employed on a contract basis by the companies Hortanzia,
each of these farmers employ an average of 4 workers on a 'continuous' Kili Flair and Dekker Bruins, while 62% are employed without a con-
basis (paid with a monthly salary, but without a contract) for sowing, tract by the same companies or by Tanzanian farmers.
soil preparation, application of fertilizers and insecticides, and for the The agricultural workers interviewed have an average age of 35,2
supervision of the labourers hired during the days of harvest. years (with a minimum of 18 and a maximum of 77), with significant
Entrepreneurs recruit the workforce through two channels: the first is differences between contract workers (younger) and informal workers
'word of mouth' and 'announcements', through which “the word is (older). The families of these workers are composed on average by 4,4

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F. De Blasis World Development Perspectives 18 (2020) 100201

members; 14% of the workers surveyed have no school education, established in empirical research in SSA; the verification of the presence
while about 71% have completed primary school and 14% have com- of some consumer goods and the condition of the homes of the inter-
pleted secondary school. As other research in Tanzania (FAO, 2012) viewees. In total, 15 indicators were taken into account, which include
and elsewhere (Cramer et al., 2017; Van den Broeck et al., 2017; Dolan, the ownership of: a mobile phone; a modern roof (metal or better); a
2004) has also shown, the development of the horticultural industry has radio; a mosquito net; a concrete floor; concrete walls; a sofa; access to
generated the feminisation of agricultural labour: women are preferred electricity; access to drinking water; a bank account; a bathroom with
by employers over men, especially in the collection, sorting and drainage; a TV; the use of gas or electricity for cooking; the consump-
packaging of products, as they are considered “more suitable for tion of three meals a day and a car. Some of these indicators are used for
handling beans, peas and flowers quickly and gently”. Among the the drafting of government censuses (Household Budget Survey) and
agricultural workers interviewed, 86.3% were women and 13.6% were thus allow a comparison on a district, regional and national basis. On
men. Moreover, compared to the national figure, a lower percentage of average, labourers sampled have significantly less access to consumer
married (56%) and a significantly higher percentage of widows (16%) goods and have worse housing conditions than not only contract
and separated (16%) were found among agricultural workers, with farmers sampled (employers), who can be regarded as a rural elite, but
significant differences between formal and informal workers (see also the district, regional and national population. Tanzanian contract
Table 1below). In particular, the presence of widows among informal farmers – particularly entrepreneurs – have access to consumer goods
that are scarcely available to the population as a whole, and earn in-
Table 1 comes that are up to 30 times higher than the poverty line and nearly
Age, household size and family status of agricultural workers sampled. ten times higher than the per-capita GDP. Comparing the prevalence of
Age Household Size Married Single Separated Widows consumer goods and housing conditions between farmers and workers
sampled, a high degree of inequality emerges (see Table 2).
Formal Workers 27 3,7 70% 17% 13% 0% Even compared to the regional and district population, as can be
Informal 38 4,7 50% 8% 19% 23%
seen from Table 3 below, labourers have less access to the consumer
Workers
Total 35,2 4,4 56% 11% 16% 16%
goods considered and have worse housing conditions. For example, a
radio, a mobile phone and a television are owned by 31.9%, 48.4% and
Source: author’s elaboration 2.6% of the wage labourers surveyed, while in the district of Meru, they
are owned by 76%, 79% and 11% of the district population and in the
district of Moshi by 79%, 80% and 19% (URT, 2016c; 2016d; 2016e).
workers (23%) was almost 4 times higher than the national average Moreover, confirming the accelerated process of deagrarianisation that
(6% of the female population). Finally, a high number of migrants was is affecting a part of the Tanzanian rural population, only 40.6% of
found among agricultural workers: about 35% came from other regions, them have plots of land, compared to a district average of 81% (Moshi)
which coincide with the poorest in the north of the country: Singida, and 76% (Meru), with no significant difference between formal and
Tabora and Shinyanga. Unlike what happened in the colonial period, informal workers. Almost all labourers (96%) belong to households that
when the manpower employed in European farms consisted mainly of earn their income solely from agricultural labour and other informal
seasonal/circular labour force, today these migrants have settled per- non-agricultural activities: even when they have plots of land, they
manently in the flat areas along the road that connects the city of Ar- produce food crops exclusively for domestic consumption. Moreover,
usha with that of Moshi. the size of the land owned by agricultural workers is significantly
In general, as found by other research SSA (Cramer et al., 2017), smaller than the average in respective districts (0.75 acres compared to
Tanzania agricultural workers belong to the poorest part of the popu- about 2 acres in Meru and Moshi districts).
lation (Mueller 2011; 2015). In order to understand the socio-economic A significant difference in socio-economic status can also be found
status of the interviewees, a methodology was employed which is now between formal and informal workers sampled: the latter can be

Table 2
Access to consumer goods and housing conditions; a comparison between contract farmers and wage labourers sampled.
100
90
80
70
60
50
40
30
20
10
0

Contract Farmers Wage Labourers

Source: author's elaboration

5
F. De Blasis World Development Perspectives 18 (2020) 100201

Table 3 Table 5
Access to consumer goods and housing conditions; a comparison between re- Possession score of agricultural workers sampled.
gions, districts and labourers sampled. 6

Assets/housing Arusha Kilimanjaro Meru Moshi Labourers 5

condition region region district district
4

Modern roof 80,5 98,6 95,4 95,4 80,1 3

Mobile phone 75,2 79,6 78,6 79,6 48,4
Concrete walls 54,7 64,2 55,3 45,6 43,6 2
Concrete floor 51,1 64,2 55,2 62,3 44,1 1
Access to 32,9 44,9 17,1 27,1 15,7
electricity 0
Television 22,9 21,2 11,3 19,2 2,6 Formal Workers Informal Wokers Total
Radio 64,1 76,1 76,7 79,7 31,9
Source: author’s elaboration.
Access to land 60,3 75,4 76,5 81,3 40,6

Source: author's elaboration for wage labourers; URT, 2019 for ‘modern roof, working conditions vary greatly depending on the type of workers;
walls and floor’ at regional level. Other data refers to URT, 2016d, 2016e. formal workers employed by foreign farms enjoy relatively better
working conditions than workers employed informally by the same
considered as the poorest among the poor. As can be seen from Table 4 farms or by Tanzanian farmers.
below, the former have greater access to consumer goods and better
housing conditions than the latter. Even when considering the posses-
sion score (see Senders and Smith, 1990), out of 15 indicators con- 5.1. The conditions of formal workers
sidered, formal workers have access on average to 5,6 assets, while
informal workers have access to 3,6 assets (Table 5). In part, this in- The formal workers interviewed are employed by foreign farms with
equality is the result of different working conditions for the two types of a contract that specifies the working conditions, the duration of the
workers. contract (all of them are employed on a temporary basis), the number of
working days per week, the working hours and the monthly pay.
Formal working conditions are regulated by the Labour Institution Act
5. Working conditions in global horticultural value chains of 2004, as amended in 2007, 2010 and 2013. The 2004 Act set a
maximum limit of 12 h of work per day and a minimum of 24 h of
According to an FAO study in 2012, despite the fact that the hor- weekly rest. In addition, it established an obligation for the employer to
ticultural industry “has been criticized globally for its negative con- pay an increased hourly wage – overtime – after the 45 h of work per
sequences on agricultural workers (…) in Tanzania the sector is at the week. Employees are entitled to paid sickness, pension contributions,
forefront in terms of adoption of good practices and compliance with holidays and severance pay at the end of the contract. Women are also
labour laws (…) [and] has also benefited from the actions of the entitled to 84 days of paid maternity leave paid 100% by the National
Tanzania Plantation and Agricultural Workers' Union (TPAWU)”, the Social Security Fund. The last amendment of 2013 – in force at the time
largest trade union organisation for agricultural workers. The study also of the research (2016) – raised the minimum wage in various sectors of
stated that “the majority of the workforce in the fruit and vegetable the economy; the minimum wage in agriculture was set at 100,000 TZS
sector in the Arusha region has been contracted” (80%) and is also part per month (about $ 43).
of a trade union association (FAO, 2012:8). However, according to this As already mentioned, formal workers are younger than informal
research, working conditions in the industry, although offering an op- workers (27 years as opposed to 38 years). As reported by a manager,
portunity to increase incomes for some workers, are critical at best. A foreign farms prefer to hire “healthy young women who are able to
large proportion of the workforce is employed on an informal basis and harvest beans and flowers quickly and gently”. All formal workers

Table 4
Access to consumer goods and housing conditions; a comparison between formal and informal labourers sampled.
100
90
80
70
60
50
%

40
30
20
10
0

Formal labourers Informal labourers

Source: author's elaboration.

6
F. De Blasis World Development Perspectives 18 (2020) 100201

surveyed who have a contract with foreign farms are employed six days 5.2. The condition of informal workers and the pieceworkisation of
a week for eight hours a day and receive a monthly salary ranging from agricultural work
100,000 TZS – the minimum required by law – to 120,000 TZS (about $
43–52). On average, formal workers surveyed get 1,340,347 TZS per Informal workers, as noted above, are those employed on a daily,
year from agricultural work, with a minimum of 1,200,000 and a weekly, seasonal or even continuous basis but without a contract.
maximum of 1,440,000 TZS (about $ 520–620). The individual incomes Unlike formal workers, they have no insurance cover in the event of an
of formal workers are higher than the individual poverty line indicated accident, no leave, no sickness and no severance pay, and cannot take
by the Tanzanian government (1,340,347 TZS per year against legal action in case of problems with employers. On average, these
591,840). However, considering the average household size of 3,7 workers are 38 years old (with a minimum of 18 and a maximum of 77)
members, such income alone cannot sustain a family as only one extra and have been participating in the agricultural labour market for
household member could be supported. 11.5 years. As already mentioned, among informal workers there was a
The vast majority of contract workers sampled got the job thanks to high prevalence of widows (23% against 0% among formal workers).
social networks: when floricultural companies started to diversify their With regard to daily-work, the latest amendment (2013) to the
production form flowers towards French beans, labourers were asked to Labour Regulation Act of 2004 established a minimum wage of 5,000
recommend new workers. From the moment they started working in TZS (about 2 US$) per day for 8 h of work: however, this is just on
agricultural companies (on average from 4.5 years), most of the formal paper. The amount and manner of remuneration for informal workers
workers interviewed (87%) believe that their income has increased, varies according to the type of employment relation with the employer
since they had previously been employed in the informal labour market (whether 'continuous' or 'daily') and the type of job for which they were
– they used to find a job for fewer days and earn less money. Before the hired. The activities of sowing, soil preparation and application of
development of the export-oriented horticultural production, agri- fertilizers and insecticides on the land of Tanzanian farmers involve
cultural labour market was highly depended on Tanzanian farmers’ mainly men. They are either hired on a 'continuous' basis and paid with
seasonal horticultural production for local market (tomato, onion, a monthly salary between 50,000 and 80,000 TZS or employed on daily
cabbage). Those casual and seasonal labourers who managed to get a basis for 3,000–5,000 TZS per day. On the contrary, the harvesting of
job at foreign companies have therefore upgraded their position: a French beans and peas – in which the great majority of informal
woman point out that “…before, I used to work fewer days in a year and workers are employed by both foreign farms and Tanzanian producers –
mostly during the high season(…) Nowadays I work all-year round and is paid on a per-piece rate and mainly employs women. The develop-
earn more money”. ment of the horticultural industry has led not only to an increase in the
The feminisation of labour in the industry, combined with the lack demand for labour, but also to profound changes in the mechanisms of
of family land and the absence of alternative employment opportunity access to work and in the way informal agricultural workers are paid.
in the rural economy, has also led many families to have women’s paid While during the 1990 s the intensification of the production of fruit
work as their sole or (more frequently) main source of income. For and vegetables for local markets led to an increase in the use of hired
these women, formal employment offers the possibility “to have our labour and the contractualisation of farm labour recruitment (Ponte,
own wages for the first time and to feel independent from the family, to 2002), in recent years the spread of new export crops grown through
buy goods that we could not afford before, to send our children to a contract farming has led to a new process: the pieceworkisation of the
decent school and to be proud of what we do”. informal labour market. Knowing the exact selling prices in advance
With regard to working conditions, 100% of the workers inter- (which are established by oral agreements or written contracts with
viewed reported to have access to a toilet with drainage, 66% have exporters) and having to deliver the products in accordance with the
access to drinking water, 32% receive a meal from the company, and quality standards and tight deadlines indicated to them by the buyers,
17% receive training on the use of fertilizers and insecticides and on both foreign companies and Tanzanian farmers began to pay their
precautionary behaviour to be adopted after their application in the workers on the basis of the kilos of beans or peas harvested.
land. No workers receive a transport service to/from the workplace, Foreign companies and Tanzanian entrepreneurs, who sell French
and no workers are members of a trade union association, despite the beans to exporters at a price of 1,600–2,000 TZS per kilo, pay their
rights guaranteed by law and the existence of the TPAWU. One female workers about 100–150 TZS (between 0,4 and 0,6 US$) for every kilo
worker has specified that the “membership of trade unions has been harvested. In the flat areas between 900 and 1,200 m – where
advised against by the company and we have followed the advice, be- Tanzanian farms and entrepreneurs are located – the cost of labour is
cause there are many job seekers (…), competition is extremely high, lower due to the wide availability of agricultural workers: in fact, mi-
and it is not difficult to replace us”. grant workers from neighbouring regions have settled in these areas,
The majority (71.5%) of workers employed under contract by for- increasing the availability of labour. Labour costs are higher in moun-
eign agricultural enterprises reported to have experienced some sort of tain villages far from the road connecting Arusha to Moshi, although
problem with their work. They were asked to indicate, in order of farmers have no difficulty in finding people willing to work for a wage.
priority, up to 3 problems encountered in working at farms. The most The bean growers in these villages pay their workers between 150 and
frequently reported problem (80%) relates to late payment of wages. 200 TZS (between 0,6 and 0,8 US$) for every kilo harvested, although
Although contracts stipulate that wages should be paid on the first day the selling price to exporters (between 750 and 1,200 TZS) is lower
of the month following the month of work, companies often delay than that of foreign companies and Tanzanian entrepreneurs.
payments up to two weeks. The other problems mentioned by formal While the wages of formal workers employed in foreign farms have
workers are related to the conditions in the workplace; about 57% of increased in recent years (due to the statutory increase in the minimum
them indicated excessive workload as one of their main problems, wage and the transition from informal to formal work), the wages of the
about 35% said they faced respiratory problems and about 31% said majority of informal workers – even when they have shifted from ‘local’
they suffered the lack of easy access to drinking water. During a group tomato/cabbage/onion harvesting to ‘export oriented’ French beans
discussion one male worker pointed out that “since I apply insecticides and pea harvesting – have not increased much and in some cases have
and fertilizers I have started to have breathing problems”, while an- decreased, also due to the increasing availability of agricultural workers
other female worker said that “the water taps are located near the of- in the local labour market.
fices of the company … but it happens to collect beans in plot of land On average, the informal workers interviewed earn about 650,000
distant several minutes of walk, so I remain many hours without TZS a year (282 US$), roughly half of the income earned by formal
drinking … when it is very hot I have dizziness … but I must continue to workers. Compared to the individual national poverty line, the average
work, I cannot take too many breaks”. incomes of informal workers are slightly higher (650,000 TZS per year

7
F. De Blasis World Development Perspectives 18 (2020) 100201

compared to 591,840 TZS). However, given that such income, because Table 7
of the lack of other economic opportunities in the rural economy, is the Problems identified by informal workers.
100
main source of households’ income for the 87% of the sample, the fa-
90
milies of these workers earn incomes well below the poverty line, as it is
80
just enough to sustain one member out of 4,7 (average household size).
70
Moreover, unlike contracted workers, there is a significant variation in 60
income levels, with a minimum of 168,000 TZS and a maximum of 50

%
about 1,400,000 per year (73 – 609 US$), which depends on the fre- 40
quency of employment and on the number of kilos that each worker 30
manages to collect. 20
On the one hand, the pieceworkisation of informal labour has 10
brought some economic benefits for few younger and healthier women: 0
a young worker said that her daily income with piecework-pay grew by Payment delay Non-payment Working condition at the
workplace*
“a few hundred shillings a day” and that “I manage to find a job for
Source: author's work. * Includes lack of bathing and drinking water in the
more days compared to few years ago, when there was no french bean
workplace, excessive working hours, excessive workload, and lack of protection
production and I was employed in the harvesting of tomatoes, therefore
when applying fertilizers and insecticides.
I earn more money”. Informal workers who have seen some (modest)
economic benefit from the development of export-oriented horticulture
With regards to the problems encountered by informal workers, it is
are thus those young women -and smaller households – who are able to
interesting to note that issues related to working conditions in the
get a job more frequently and manage to collect more kg of beans or
workplace are less of a priority than among formal workers, despite the
peas each day. For instance, non-married woman – who account only
fact that the working conditions of the former are worse than those of
for 8% of informal workers – have an average age of 21,7 years, find a
the latter. In none of the lands of Tanzanian farmers is a bath or
job for 276 days, earn on average 1,200,000 TZS per year (the highest
drinking water present; not one of the workers is provided with pro-
income among informal labourers, above the individual poverty line)
tection for the application of fertilizers and insecticides; and, finally,
and show the highest Possession Score (5,7 out of 15). However, the
the workload has increased with the process of pieceworkisation.
new piecework-pay system has also led to an increase in workload: the
However, when asked to prioritize their problems (see Table 7), the
same woman describes how she “fainted in the field of a farm after so
lack of bathing and drinking water in the workplace, long working
many hours in a row spent picking beans (…) a few days ago I felt weak
hours, excessive workload, lack of protection when applying fertilisers
and tired, but I needed the money and I had to collect as many kilos as
and insecticides have been reported overall by only about 23% of in-
possible”.
formal workers. The priorities reported by the informal workers mainly
On the other hand, piecework-pay has been particularly penalizing
concern income; most of them (84%) also indicated late payments as
for older and less healthy women, who find employment less frequently
one of the main problems of wage-earning agricultural work. Although
and receive lower daily pay because they manage to collect a smaller
oral agreements with employers often provide for payment at the end of
amount of product. For these women, both the annual income and
the working day, delays in paying the wages of these workers can last
number of working days seem to have decreased with the expansion of
up to several weeks or months, particularly when the employers are
horticultural export. For example, a 77-year old widow explained how
Tanzanian farmers. The reason for the late payment of informal workers
“foreign farms don't want elderly people (….…) the only ones who
is in turn the late payment by exporting companies to producers; a
make me work are the Tanzanian farmers, but with the piecework-pay I
female worker even attempted to go to the office of an exporting
started to earn less and less than when I was paid per day in the harvest
company herself to solicit payment to the farmer, who “continued not
of tomatoes or onions…. [also] I manage to collect a few kilos a day and
to pay me for the work done by telling me that he was waiting the
there is strong competition for access to work (...) farmers prefer
payment for the beans delivered a month ago (…), I had to wait more
younger women, so I find work few days a week and stay without
than a month before receiving 15,000 TZS”.
working several weeks, especially during the low season”. In fact,
The second most-reported problem by informal workers concerns
comparing the income from agricultural work with family status and
the non-payment of the work performed; around 48% of them indicated
age, among informal workers, the older ones – in particular widows and
that they had not been paid for their work at least once in the last
separated, which account alone for about 40% of the informal workers
12 months.
sampled- are those with the lowest incomes: while informal workers
The non-payment of the work performed is also mainly due to the
earn on average about 650,000 TZS, widows earn 469,000 TZS and find
high rate of rejection of products delivered by Tanzanian producers to
a job only 122 days per year; separated woman earn 557,333 TZS and
exporting companies. During a group discussion, a worker stated that
find a job for 119 days per year (see Table 6). Such income levels are
“the employer did not pay me by claiming that the exporter had de-
below the individual poverty line and are insufficient to sustain their
ceived him (…) [The exporter] paid only a small part of the kilos de-
households (the largest among informal workers, composed of 5,3 and
livered, so Jonathan [the farmer] did not have the money to pay us in
4,7 members).
full”. Another worker said she spent “three months asking for the
money I deserved” and was later compensated with corn. In other
words, some farmers – particularly 'small horticulturists' – cannot pay
Table 6 their workers because they might get a minimum or no income from
Informal Workers: family status and average age, income, working days, PS and selling beans or peas, especially during the high season, when pro-
household size.
duction in Tanzania reaches its peak due to the good weather condi-
Status Age Income Working Days/ Possession Household Size tions but, at the same time, European demand is at its lowest. European
Year Score supermarkets and large retailers de facto impose their conditions
throughout the supply chain and the risks of production are passed on
Single 22,7 1.200.000 276 5,7 2
Married 28 687.217 167 3,5 4,9 by exporters to (Tanzanian) producers, by specifying the timing and
Separated 31,3 557.333 119 3,8 4,7 methods of farming and, above all, selecting only a portion of the
Widows 49,1 469.454 122 2,8 5,3 produce delivered (the best-looking beans and peas) without paying the
scrap to farmers, even when it would be in compliance with Global Gap
Source: author’s elaboration.

8
F. De Blasis World Development Perspectives 18 (2020) 100201

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