Abstract: | Some indication of the potential of agricultural production in Tanzania to respond to more favourable incentives can be provided by an examination of various standard economic measurements. These include the net economic benefit (NEB), domestic resources costs (DRC), and the effective protection coefficient (EPC). The NEB, DRC and EPC were calculated for maize, paddy and wheat by region, based on international prices in 1988 and 2000 as projected by the World Bank. The analysis shows that Tanzania has an economic advantage in becoming self-sufficient in production of cereal crops and that increases in production could be economically achieved through improved farming methods. |