| Business Opportunities in Tanzania Agriculture Sector
Growth The
agriculture sector grew by 5.0 percent in 2002 compared to 5.5 per cent in 2001.
The decline in growth rate was caused by the following factors: unpredictable
weather conditions (low and late rains); occurrences of destructive pests such
as army worms and queleaquelea, and continued decline of price for crops in both
regional and international markets. During 2002, the agriculture sector contributed
47.5 percent to Gross Domestic Product. The agriculture sub-sectors growth rates
in 2002 were as follows: fishing, 6.5 per cent; crops, 6.3 per cent; livestock,
3.5 percent; and forest and hunting, 3.0 per cent. FOOD
CROPS Food
crops production in 2002 including cereals
(maize, paddy, millet, finger millet and wheat) amounted to 5,608,000 tons
compared to 5,296,000 tons in 2001, equivalent to an increase of 6.0 per cent.
Production of non-cereal crops including beans, bananas, cassava, pepper, tomatoes,
potatoes and others amounted to 8,750,000 tons in 2002 compared to 8,279,000 tons
in 2001, equivalent to an increase of 6.0 per cent. The increase in food crops
production in 2002 was as follows: maize, 4.9 per cent; paddy, 7.0 per cent; wheat,
3.0 per cent; millet/sorghum, 10.0 per cent; cassava, 2.0 per cent, and pepper,
269.6 per cent. The production of food crops in 2002 exceeded requirements for
the period and hence & led to exports of the surplus, accordance with the
government policy of allowing producers to seek for favourable markets with better
prices Table 11.1 shows food crops production for 2001 and 2002.
FOOD
CROPS PRODUCTION IN 2001 – 2002 (Tons)
| Crop
(tons) | | Change % |
| 2001 | 2002 |
| Maize | 3,348,000 | 3,515,000 | 4.9 |
| Paddy | 1,010,
000 | 1,081,000 | 7.0 |
| Wheat | 65,000 | 67,000 | 3.0 |
| Millet
/ Sorghum | 688,000 | 757,000 | 10.0 |
| Cassava | 2,017,000 | 2,058,000 | 2.0 |
| Beans | 527,000 | 574,000 | 9.0 |
| Bananas | 2,007,000 | 2,067,000 | 3.0 |
| Sweet
potatoes | 958,000 | 1,025,000 | 7.0 |
| Other
types of starch | 88,000 | 90,000 | 2.3 |
| Ground
nuts | 324,000 | 340,000 | 5.0 |
| Pepper | 46,000 | 170,000 | 269.6 |
| Tomatoes | 277,000 | 300,000 | 8.3 |
| Irish
Potatoes | 490,000 | 504,000 | 2.9 |
| Fruits
| 634,000 | 685,000 | 8.0 |
| Barley
| 185,000 | 188,000 | 1.6 |
| Coconut | 275,000 | 283,000 | 3.0 |
| Pulses | 141,000 | 145,000 | 2.8 |
| Yams
| 15,000 | 15,000 | 0.0 |
| Peas
| 74,000 | 76,000 | 2.7 |
| Vegetables
| 63,000 | 65,000 | 3.0 |
| Sunflowers | 22,000 | 23,000 | 4.5 |
| Other
crops | 321,000 | 330,000 | 2.8 |
| Total | 13,575,000 | 14,358,000 | 5.6 |
Source:
National Bureau of Statistics CASH
CROPS In
2002, production of major cash crops, except for cashew nuts and pyrethrum, increased.
Coffee production increased from 43,000 tons in 2001 to 44,000 tons in
2002, equivalent to an increase of 2.3 percent. Cotton production increased from
171,000 bales in 2001 to 178,000 bales in 2002, equivalent to an increase of 4.9
percent. Sisal production increased
from 22,000 tons in 2001 to 23,000 tons in 2002, equivalent to an increase of
4.5 percent. Tea production increased from 78,000
tons in 2001 to 81,000 tons in 2002, equivalent to an increase of 3.8 percent,
and tobacco production increased from 48,000 tons in 2001 to 59,000 tons in 2002,
equivalent to an increase of 23 per cent. Cashewnuts production declined from
95,000 tons in 2001 to 78,000 tons in 2002, equivalent to a decrease of 18 percent.
There was no change in the volume of pyrethrum produced. Following table shows cash crops
production in 2001 – 2002. CASH
CROPS PRODUCTION IN 2001 – 2002 (TONS)
| Crop
/ Tons | Year | Change |
| | 2001 | 2002 | |
| Coffee | 43,000 | 44,000 | 2.3 |
| Cotton
(bales) | 171,000 | 178,100 | 4.9 |
| Cashew
nuts | 95,000 | 78,000 | -18 |
| Tobacco
| 48,000 | 59,000 | 23 |
| Tea | 78,000 | 81,000 | 3.8 |
| Sisal | 22,000 | 23,000 | 4.5 |
| Pyrethrum | 1,000 | 1,000 | 0.0 |
LIVESTOCK Tanzania
is estimated to have 17.7 million cattle, 12.5 million goats, 3.5 million sheep,
47.0 million poultry and 880,000 pigs. During 2002, some of the measures
undertaken to improve livestock production in order for the products to be competitive
in both local and external markets included the following: production of 62,852
doses of improved cattle breed; insemination of 48,950 cattle; distributing 3010
heifers; establishment of production and processing groups; construction of 152
dams in 14 regions including 43 districts; construction of 20 livestock night
camps and 3 railway sidings; rehabilitation of 10 livestock railway wagons; and
promotion of increased consumption of livestock products nationally. During
2002, production of livestock products was as follows: meat, from 323,100 tons
during 2001 to 332,000 tons, equivalent to an increase of 2.7 per cent; milk from
814 million litres to 900.5 million litres, an increase of 10.6 per cent; and
eggs from 600 million to 650 million, equivalent to an increase of 8.3 percent.
Increased production and efficiency resulted from the availability of adequate
pasture, water and efficiency in collection, and processing, as well as an expanded
domestic market of livestock products. Table No. 11.3 shows production
of livestock and poultry products from 1999/00 – 2001/02. PRODUCTION
OF LIVESTOCK AND POULTRY PRODUCTS
(FROM
1999/00 TO 2001/02)
| Production/Season
| Measurement | 1999/00 | 2000/01 | 2001/02 | Change% |
| MEAT | | | | | |
| Beef | Tons | 175,000 | 181,000 | 182,000 | 0.6% |
| Mutton | Tons | 70,900 | 72,100 | 74,000 | 2.6% |
| Pork | Tons | 14,700 | 20,000 | 21,000 | 5.0% |
| Chiken | Tons | 45,400 | 50,000 | 55,000 | 10.0% |
|
Total - meat | Tons | 306,000 | 323,100 | 332,000 | 2.8% |
| MILK | | | | | |
| Traditional
Dairy Cattle | Litres (000) | 448,500 | 492,500 | 578,000 | 17.4% |
| Graded Dairy
Cattle | Litres
(000) | 252,000 | 321,500 | 322,500 | 0.3% |
| Total
– milk | | 700,500 | 814,000 | 900,000 | 10.6% |
| EGGS | | | | | |
| Poultry | Number
(000) | 450,000 | 600,000 | 650,000 | 8.3% |
| HIDES
AND SKINS | | | | | |
| Cattle | Number | 1,300,000 | 1,400,000 | 1,400,000 | 0.0% |
| Goats | Number | 715,165 | 750,000 | 700,000 | -6.7% |
| Sheep | Number | 409,000 | 400,000 | 350,000 | -12.5% |
| Total
- hides and skins | Number | 2,424,165 | 2,550,000 | 2,450,000 | -3.9% |
Source:
National Bureau of Statistics
EXTENSION
SERVICES AND TRAINING Between
2001 and 2002, a total of 65,000 farmers and livestock keepers were trained on
best practices in agriculture and livestock at training institutes, through the
support of the National Agricultural Extension Programme Phase II (NAEP). Likewise,
1,047 extension staff attended courses on participatory approach. Curricula for
agriculture and livestock training institutes were reviewed in order to incorporate
environment conservation and management, HIV/AIDS education, commercial agriculture
and livestock production in order to enable the graduates to be self-employed.
Various
approaches were developed and applied by extension officers to disseminate appropriate
messages to farmers including demonstrations, farm/field education and participatory
approach which proved to be successful in Dodoma,
Morogoro and Kagera regions. During
2002, a total of 50 trainers from the Training of Trainers program, completed
the course and were posted in 21 regions and training manuals were also prepared.
The participatory approach and on-the-field training was adopted for training
purposes. During 2002, the participatory approach training courses were attended
by 405 extension officers, 880 farmers and 575 livestock keepers. RESEARCH In
2002, research activities focused on producing high yielding, drought and disease
resistant seed varieties. In conducting the research, a participatory approach
was adopted, focusing on stakeholders demand
in zones or special areas which contributed in financing specific research. Published
research findings during the year included the availability of new seeds for maize,
beans, millet, cotton and wheat, improved cattle and diary goat breeds, and improved
poultry. Efforts were also directed towards the eradication of tsetse flies and
the establishment of an early warning system in ensuring the availability of pasture.
Cash crops research institutions continued to restructure their operational system
in order to strengthen themselves. INPUTS
FUND In
2002, the Agricultural Input Trust Fund extended credit worth shs. 1.2
billion, out of the budgeted shs. 1.5 billion, while the Private Agriculture Sector
Support Fund provided shs. 2.2 billion, out of which shs. 1.8 billion and shs.
0.4 billion were for procurement and distribution of inputs and investment capital purposes,
respectively. During
2002, there was a four tier co-operatives structure, consisting of 4,778 primary
societies with total of 644,796 members, 48 co-operative unions, 4 apex co-operatives,
and one federation of co-operative unions. During the same period, there were
123 Savings and Credit Co-operative Societies (SACCOS) with shares and deposits
valued at shs. 7.6 billion and shs. 11.4 billion respectively. Comparatively during 2001, there
were 4,743 primary societies with 616,824 members and 927 SACCOS with 133,100
members and shares worth shs. 6.6 billion and deposits valued at shs. 8.6 billion.
Improvements during 2002 resulted from government efforts in promoting the development
of co-operatives among communities and the general public in the areas of
production, distribution, marketing, storage, packaging and processing,
in order to improve production regional and international markets, as well contribute
in the alleviation of unemployment and poverty reduction. AVAILABILITY
OF CREDITS FOR CROPS PURCHASES AND INPUTS PROCUREMENT The
Kilimanjaro Cooperative Bank and Kagera Farmers Cooperative Bank extended credit
of low interest rate to cooperative unions and private sector for crops purchases
and input procurement. The Bank offered
credit amounting to shs. 5.00 billion to co-operative unions and shs. 7.97
billion. to private sector in 2001 compared to shs. 8.81 billion extended to the
private sector in 2002. The Kagera Farmers Co-operative
Bank channelled credit to the private sector amounting to sh. 11.0 billion in
2002. Other alternatives used to secure credit for exporters were through Export
Credit Guarantee Scheme which availed shs. 11.66 billion channelled through CRDB
(1996) to the following co-operative unions Nyanza Cooperative Union, Shinyanga
Cooperative Union, Karagwe Cooperative Union, Biharamulo Cooperative Union, Arusha
Cooperative Union, Kilimanjaro Native Cooperative Union, ISAYULA co-operative
Union
and Mbozi Cooperative Union. Contract farming between farmers and companies extending
credits for agricultural inputs, capital and ensuring the availability of markets
was used in sugarcane production and wheat farming in Manyara region.
CROPS MARKETING In
2002, efforts were directed towards the preparation of the Marketing Development
Policy for agricultural and livestock products and establishment of the Marketing
Development Centre which will advise on prices, packaging, quality control and
standards and availability of markets. Participation in various fairs including
Nane Nane in 2002 provided an avenue for farmers, livestock keepers and traders
to observe and learn on crops available, produced and types of inputs used in
the country. Price trends for some crops were as follows: beans decreased from
shs. 34,700 in 2001 to shs. 31,500 for 100 kilograms in 2002; rice decreased from
shs. 29,576 to shs. 27,439 in 2002 for 100 kilograms; and maize increased from
shs. 8,120 in 2001 to shs. 9,653 in 2002 for 100 kilograms. For cash crops, prices
were generally favourable in 2002 compared to 2001. Prices of a one kilogram of
tobacco increased to shs. 567 in 2002 compared to shs. 526.8 in 2001; a kilogram
of cotton was shs. 200 in 2002 from shs. 180 in 2001; and a kilogram of cashewnuts
was shs. 360 in 2002 compared to shs. 350 in 2001. Price for coffee declined Price
for coffee declined from shs. 600 per kilogram in 2001 to shs. 450 in 2002.
Source : Economic Survey 2002,Tanzania |