Value Chains

Dairy Value Chain

Tanzania has significant dairy livestock resources, which have the potential to transform the lives and incomes of smallholder farmers along the value chain.However, the milk production of local cattle is typically low (1-3 litres/animal) and the
country’s dairy industry is small. The majority of milk is consumed at a local level without reaching the commercial market:
just 2-5% of milk produced comes from large-scale dairy farms. Tanzania’s dairy sector has the potential to significantly improve food security and nutrition in the country.

Demand for milk in Tanzania has grown over the past decade and is predicted to rise further driven by socio-economic changes in the country. By 2020, it is forecast that per capita consumption of milk in Tanzania will reach 100 litres per year, from a current level of 45 litres per year. In order to address these challenges and opportunities, SAGCOT is working with its partners to develop a dairy value chain strategic partnership. This initiative is based in Iringa, where 1,400 farmers are currently providing raw milk to ASAS’s dairy processing plant.

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Potato Value Chain

The potato (Solanum Tuberosum) is a crop that is well suited for production in the Southern Highlands of Tanzania and which
can make significant contributions to food and economic security. It has a higher financial return per unit area and time than
most common staple crops and is growing in national and international demand. Through its assessment of partner activities
in the corridor, the SAGCOT Centre recognised a critical mass of actors who were interested and active in establishing a
commercial potato value chain in the Southern Highlands of Tanzania.

The SAGCOT Centre convened a series of exploratory meetings as well as a farmer field day to discuss the business opportunities related to establishing a viable value chain in Tanzania’s potato growing region of Njombe in Ihemi Cluster. Based on the outcomes of these discussions, a coalition of partners came together to launch a project to introduce improved seed, mechanisation and good agricultural practices to farmers. Partners include representatives from local and national government, private input and production companies, financial institutions, and development partners.

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Soya Value Chain

There is significant potential to expand the production of soya for animal feed and oil in Tanzania. The majority of the demand for animal feed protein is currently being met by imports and dagaa fish. Despite the Government of Tanzania having identified soya production as a key priority for the country’s agricultural development, presently, domestic production of soybeans remains limited.

The Southern Highlands region is home to the majority of the country’s soya cultivation, with Ludewa Cluster (Songea) taking the lead and the Ihemi Cluster as a particular focus for smallholder production. Smallholder yields are often low, however, due to acidic soil, minimal use of fertilisers, limited availability of quality seeds and poor crop management. Building a strong value chain is critical to boosting production. The soya value chain can incorporate a wide range of actors, from smallholders to large-scale producers, brokers and agents, processors, retailers and consumers. SAGCOT is working with a range of partners, led by the Clinton Development Initiative and its Anchor Farm project to build an interlinked value chain in maize, soya and animal feed. The Soya Value Chain will develop linkages along the value chain and tackle some of the obstacles to the growth of the sector, such as seed availability, regulation and production methods.

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Tea Value Chain

The Southern Highlands of Tanzania are one of the country’s main tea-growing areas. Mufindi, Njombe and Rungwe are the most significant tea-producing areas in this region. Tea is one of Tanzania’s biggest export crops and a major crop for smallholder farmers: approximately a third of the country’s crop is produced by smallscale farmers. However, the country’s
average yields are 40% lower than neighbouring Kenya, largely due to the low productivity of these smallholders. The Tea Value Chain Partnership will focus on the production and processing of tea, and on investment across the tea supply chain. The Partnership will source from and provide support to smallholder tea farmers in Mufindi and Njombe. This is largely being driven by an investment from Unilever, the leading consumer goods company.

 

 

 

Tomato Value Chain

Tomatoes are the largest vegetable crop in Tanzania, grown across much of the country with significant production from
smallholder farmers. However, varieties grown in Tanzania often offer poor resistance to pests and diseases and produce low yields. Moreover, tomatoes can be fragile and thus easily damaged in the transportation process. For this reason, they also have a relatively short shelf life. To support the growth of a tomato value chain which will overcome these obstacles to tomato production and benefit smallholder farmers, SAGCOT initiated a new strategic partnership in May 2015: the Tomato Partnership, which will run in the Ihemi Cluster (Iringa and Njombe regions). Darsh Industries, a tomato processor based in Ihemi, will work with a coalition of SAGCOT partners to mobilise more than 10,000 smallholder farmers.

The Partnership will operate across the value chain: tomatoes will be processed into finished and semi-finished goods including tomato paste in cans and aseptic bags, tomato sauce and ketchup. A new tomato-processing centre in Iringa will begin production in Q4 2015 onward. The factory has the capacity to process 200 tons of tomatoes per day into tomato paste. Darsh Industries is already working with smallholders and village leaders in the surrounding area to identify tomato suppliers and build tomato collection centres. Collection centres are an important element of the partnership, helping to increase smallholder famers’ bargaining power, as they are no longer obliged to accept low prices offered by middlemen.

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Avocado Value Chain

Avocado (Persea americana) is a tree, long thought to have originated in South Central Mexico. The fruit of the plant, also called an avocado
(or avocado pear or alligator pear), is botanically a large berry containing a single large seed known as a “pit” or a “stone”. Avocados like most nutritious fruits are commercially valuable and are cultivated in tropical and Mediterranean climates throughout the world. The optimum soil pH for avocado is between 6.2 and 6.5 lime. The International Trade Centre, Tanzania has seen exports grow at a compound annual growth rate (CAGR) of 35%, from 2013 to 2017, to approximately 4.4 thousand metric tons in 2017 from 1.4 thousand metric tons in 2013.

In Tanzania, Avocado production is increasingly gaining popularity with new farms opening up in many parts of the country. Regions such as Njombe, Iringa, Geita and even Kagera have recorded increases in planted areas with the high yielding; export market-oriented variety – Hass and Fuerte. Other regions where Avocado is grown are Arusha, Morogoro, Kilimanjaro, Mbeya, Songwe and Ruvuma. There is huge demand of Avocado in the World market making the product a potential significant contributor to foreign exchange earnings and government revenue if harnessed well. Apart from increased export volume, there is also an appetite of investment in the value addition for Avocado. The Ihemi Cluster already has two avocado processing
factories – Zalacado in Iringa and Olivado in Njombe.

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Poultry Value Chain

Tanzania’s poultry sub-sector is comprised of traditional and commercial production systems. Traditional poultry kept are mainly chicken (90%) with the remaining small proportion being ducks, ostriches, pigeons and geese. According to the Tanzania Poultry Breeders Association (TPBA), traditional chicken shows a high potential to improve food security, household income of rural people, particularly disadvantaged groups such as women and children.

Commercial poultry production in Tanzania is still on a low scale due to lack of skills and technical knowhow, lack of capital for investment, unorganized market for poultry and poultry products, unreliable supply of day-old chicks, lack of reliable supply of quality poultry feeds, high veterinary medicine costs, poultry feed costs and lack of poultry processing industries. Tanzania’s per capita consumption of poultry meat is estimated at 15 kg per annum (FAO 2015). Through the Poultry Strategic Partnership, SAGCOT is working with its partners to address challenges and opportunities in the sub-sector

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Rice Value Chain

Rice (Oryza sativa) is the second most important food crop in Tanzania after maize. Official data indicates that an estimated 2.2 million MT of rice is produced annually, making Tanzania the biggest rice producing country in the region with an average yield of 2.2 tonnes per hectare (NRDS-II, 2019). More than 70 percent of rice production in the country originates from six leading regions of Shinyanga, Tabora, Mwanza, Mbeya, Rukwa and Morogoro. Other regions include Songwe, Katavi, Arusha, Kilimanjaro, Kigoma, Manyara, Iringa, Mara and Tanga. It is estimated that 20 per cent of all farmers in Tanzania are involved in rice production (FAO, 2015).

Smallholder farmers under rain-fed conditions grow most Paddy (rice) in the low lands. Some small farmers grow and irrigate their farms under schemes using traditional or semi improved schemes.

Larger farms have larger areas under irrigated cultivation but large-scale commercial rice farming is not common and limited tofew private firms in Mbeya, Morogoro and the Coast regions where they use schemes which have been privatized (FAO, 2015).

The most common varieties of rice produced in the country include Kilombero, Supa, Zambia, Kyela Ndefu and Saro 5. Saro 5 (TXD 306) is the only improved seed commonly produced in Tanzania.

 

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Sunflower Value Chain

The sunflower (Helianthus annuus) is one of the prioritized value chains in the Mbarali cluster in SAGCOT Corridor. The sunflower value chain has a potential to make a significant contribution in increasing smallholder farmers incomes and in creation of employment opportunities for youth and contribution to overall economic growth of Tanzania. Considering a huge demand for sunflower oil in the local and export markets, the SAGCOT Centre in collaboration with the government and other stakeholders has taken various initiative to support growth of sunflower value chain which is one of the prioritized value chains in the Agriculture Sector

Development Programme phase two (ASDP II). Some of the initiatives that have been undertaken to develop sunflower include tax incentives, and introduction of improved seed varieties to improve productivity.

SAGCOT initiative is in line with government policies and initiative like ASDP. Thus, sunflower has been prioritized as one of the strategic value chains under the SAGCOT initiative. SAGCOT Centre Limited (SCL) has convened a series of meetings with the Sunflower Strategic Partnership to resolve key policy and non-policy issues to boost growth of the sunflower value chain. SCL has been participating in various policy platform in order to champion policy reforms and a conducive environment for development of the sunflower value chain.

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