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Since the 1990s, the Tanzanian government has striven to transform the country into a semi-industrialized economy supported by productive commercial agriculture. To accomplish this goal, policymakers pursued a policy of trade liberalization and reduced government intervention, including the agricultural sector. As a result, Tanzania has experienced a moderately high agricultural sector growth rate of 4.1 percent per year over the last two decades; this rate is comparable with neighboring countries including Kenya (4 percent growth per year) and Uganda (3.2 percent).

By 2050, FAO estimates that the global population will have reached 9.1 billion people. To feed this population, the world will need to produce significantly more food: 3 billion more tons of cereal and over 200 million more tons of meat products per year. At the same time, however, we face a lack of arable land upon which farmers can expand their production, as well as increasing competition for natural resources and decreasing soil fertility.

The fertilizer industry is characterized by high levels of concentration along the supply chain. According to the International Fertilizer Development Center, nine countries control more than 50 percent of nitrogen (ammonia, urea) and phosphate (DAP/MAP) production capacity, while only five countries control 79 percent of potash (MOP) production capacity. Developing regions such as Africa south of the Sahara are also highly dependent on imported fertilizer. In addition, the level of fertilizer use in Africa south of the Sahara remains far below other developing regions (around 10kg.

Food safety remains a significant concern in many developing countries, thanks to a prevalence of decentralized, informal food markets and low enforcement of food safety standards. Formal markets and branded food products are starting to become more common, however, allowing firms to establish themselves in consumers’ minds as providers of safe, high quality food – and potentially to charge higher prices for that food. A forthcoming article in Agricultural Economics examines this link between food safety and food prices in the context of maize flour in Kenya.

A successful agricultural sector depends on the interplay of a wide variety of agro-ecological, economic, and societal factors. Soil health makes up a very important piece of this puzzle; soil loss and infertility pose a significant threat to overall economic development in countries that depend largely on agriculture. This includes many countries in Africa south of the Sahara.