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"This report has two objectives. It assesses the nature and the extent of vulnerability among rural households in Tanzania with a particular focus on smallholder cash crop growers through exploring all risks, including the decline in commodity prices. It further explores the potential role for market based insurance schemes such as commodity price and weather based insurance to mitigate household vulnerability. The empirical analysis is based on two rounds of specifically designed representative surveys of farm households in Kilimanjaro and Ruvuma, two cash crop growing regions in the United Republic of Tanzania in 2003 and 2004. The contrasting experiences of a richer (Kilimanjaro) and a poorer (Ruvuma) region substantially enriches the policy guidance emerging from the report. "--Publisher's description.

Households --- Primary commodities --- Risk (Insurance) --- Rural poor --- Prices --- Tanzania --- Rural conditions.

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Agricultural insurance --- Cocoa --- Crop Insurance --- Prices --- Crop insurance

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Agriculture and state --- -Structural adjustment (Economic policy) --- -#ABIB:FAOdeposit --- 330.34 --- 330.34 Economische ontwikkeling. Regionale economische ontwikkeling --- Economische ontwikkeling. Regionale economische ontwikkeling --- Agrarian question --- Agricultural policy --- Agriculture --- State and agriculture --- Government policy --- Structural adjustment (Economic policy) --- #ABIB:FAOdeposit --- Third World: agricultural and food problems --- Developing countries: agricultural and food problems --- Agriculture and state - Developing countries --- Structural adjustment (Economic policy) - Developing countries

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Studies of risk and its consequences tend to focus on one risk factor, such as a drought or an economic crisis. Yet 2003 household surveys in rural Kilimanjaro and Ruvuma, two cash-crop-growing regions in Tanzania that experienced a precipitous coffee price decline around the turn of the millennium, identified health and drought shocks as well as commodity price declines as major risk factors, suggesting the need for a comprehensive approach to analyzing household vulnerability. In fact, most coffee growers, except the smaller ones in Kilimanjaro, weathered the coffee price declines rather well, at least to the point of not being worse off than non-coffee growers. Conversely, improving health conditions and reducing the effect of droughts emerge as critical to reduce vulnerability. One-third of the rural households in Kilimanjaro experienced a drought or health shocks, resulting in an estimated 8 percent welfare loss on average, after using savings and aid. Rainfall is more reliable in Ruvuma, and drought there did not affect welfare. Surprisingly, neither did health shocks, plausibly because of lower medical expenditures given limited health care provisions.

Agriculture --- Crime --- Crops and Crop Management Systems --- Economic Theory and Research --- Families --- Health Care --- Health Monitoring and Evaluation --- Health Services --- Health, Nutrition and Population --- Holistic Approach --- Hospitalization --- Macroeconomics and Economic Growth --- Mortality --- Poverty Reduction --- Quality of Life --- Risk Factors --- Rural Development --- Rural Poverty Reduction --- Unemployment

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Studies of risk and its consequences tend to focus on one risk factor, such as a drought or an economic crisis. Yet 2003 household surveys in rural Kilimanjaro and Ruvuma, two cash-crop-growing regions in Tanzania that experienced a precipitous coffee price decline around the turn of the millennium, identified health and drought shocks as well as commodity price declines as major risk factors, suggesting the need for a comprehensive approach to analyzing household vulnerability. In fact, most coffee growers, except the smaller ones in Kilimanjaro, weathered the coffee price declines rather well, at least to the point of not being worse off than non-coffee growers. Conversely, improving health conditions and reducing the effect of droughts emerge as critical to reduce vulnerability. One-third of the rural households in Kilimanjaro experienced a drought or health shocks, resulting in an estimated 8 percent welfare loss on average, after using savings and aid. Rainfall is more reliable in Ruvuma, and drought there did not affect welfare. Surprisingly, neither did health shocks, plausibly because of lower medical expenditures given limited health care provisions.

Agriculture --- Crime --- Crops and Crop Management Systems --- Economic Theory and Research --- Families --- Health Care --- Health Monitoring and Evaluation --- Health Services --- Health, Nutrition and Population --- Holistic Approach --- Hospitalization --- Macroeconomics and Economic Growth --- Mortality --- Poverty Reduction --- Quality of Life --- Risk Factors --- Rural Development --- Rural Poverty Reduction --- Unemployment