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) 

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) 

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)