Returns to improved storage and potential impacts on household food security and income: evidence from Tanzania

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Abstract This study examines the economic feasibility of improved storages and the potential impacts of using them on household food security and income. Moreover, it tests whether storage losses can induce early sale of households maize produce. We used data from on-farm experiment, household survey, and secondary sources. We considered Purdue Improved Crop Storage (PICS) bags, metallic silos, and polypropylene bags (control). Results show that PICS bags are profitable when the grain is sold during the lean season. However, the economic feasibility of metallic silos depends on the size of the storages and location i.e. silos of 1.5t and 2t storage capacities are feasible in some districts while lower size silos are not feasible in all locations. Storing maize using PICS bags will enhance household food security, especially among net-buyer farm households enabling them to reduce their annual grain deficit period by three to four weeks. Moreover, market-oriented storage using the improved storage options can increase farmers income substantially. Our results do not justify that the sell low, buy high situation observed among smallholder farmers is caused by high grain losses due to storage insect pests. Keywords: Maize, PICS bags, metallic silos, price seasonality, potential impact, Tanzania Acknowledgement : The authors are grateful to USAID/FtF Initiative for its financial support.