CARI Tanzania national workshop proceedings
Golden Tulip Hotel–Dar es Salaam, Tanzania
30th
September, 2016
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CONTENTS
ABBREVIATIONS ................................................................................................................................. 2
CHAPTER ONE ...................................................................................................................................... 3
1.0 Background ......................................................................................................................................... 3
1.1 CARI Tanzania ............................................................................................................................... 3
1.2 CARI national workshop ................................................................................................................ 4
CHAPTER TWO .................................................................................................................................... 5
2.0 Opening remarks and CARI achievements ....................................................................................... 5
2.1.1 CARI in nutshell ....................................................................................................................... 5
2.1.2 Achievements of CARI in Tanzania to date ........................................................................... 5
2.1.3 Partners’ achievements and experiences ................................................................................. 5
2.2.4 Question and answers .............................................................................................................. 7
2.2 Delegates remarks ........................................................................................................................... 8
2.2.1 GIZ Country Director Remarks .............................................................................................. 8
2.2.2 Permanent Secretary Remarks ................................................................................................. 9
CHAPTER THREE ............................................................................................................................... 10
3.0 Thematic presentation and discussions ............................................................................................ 10
3.1 Thematic presentations and discussions ...................................................................................... 10
3.1.1 Mechanization of Small Holder Rice Production in Tanzania ............................................ 10
3.1.2 Household dietary diversification .......................................................................................... 10
3.1.3 Rice markets and consumer preferences ............................................................................... 10
3.1.4 Rice processing: Rice milling efficiency and husks management ......................................... 11
3.1.5 CARI experience in agricultural finance ............................................................................... 11
3.1.6 Policy frameworks and challenges in the rice sub-sector ...................................................... 11
3.2 Thematic group discussions .......................................................................................................... 12
CHAPTER FOUR ................................................................................................................................. 13
4.0 Lessons learnt and closing remarks .................................................................................................. 13
4.1 Key lessons drawn ........................................................................................................................ 13
4.2 Closing remark .............................................................................................................................. 14
APPENDICES ........................................................................................................................................ 15
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ABBREVIATIONS
BMGF Bill and Melinda Gates Foundation
BMZ German Federal Ministry of Economic Cooperation and Development
CARI Competitive African Rice Initiative
FAO Food and Agriculture Organization of the United Nations
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
IFAD International Fund for Agricultural Development
JICA Japan International Cooperation Agency
KT Kilimo Trust
MALF Ministry of Livestock and Fisheries Development
MANR Ministry of Agriculture and Natural Resources of the Revolutionary Government of
Zanzibar
MGF Matching Grant Funds
MRC Mbarali Rice Consortium
NGO Non Governmental Organization
PBR-DR Promoting Bahi Rice – Dodoma Region
PPP Public Private Partnerships
RIMAH Rice Market Hub, Rufij
SCF Smallholders Crop Finance Kilombero
SHIRCO Southern Highland Rice Consortium
SHYRICE Shinyanga Rice for competitive market
SURIPRO Sustainable Rice Production in Singida
TCCIA Tanzania Chamber of Commerce, Industry and Agriculture
TFDA Tanzania Food and Drugs Authority
TFNC Tanzania Food and Nutrition Centre
ZANRICE Strengthen Rice Value Chain in Zanzibar
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CHAPTER ONE
1.0 Background
The Competitive African Rice Initiative (CARI) is project across sub-Saharan Africa; in Burkina Faso,
Ghana, Nigeria, and Tanzania; to improve local rice productivity, production, and marketing, in
order to improve the livelihoods of 120,000 smallholder rice farmers. The aim is to work with rice
processors and traders who are value chain anchors and provide the much needed market “pull” to
stimulate smallholder rice farmers to increase their productivity and production. Secondary
beneficiaries are rural service providers, such as input dealers, suppliers, and operators of agricultural
machinery.
The project is designed to foster cooperation with public and private sector partners to form effective
and innovative Public Private Partnerships (PPP) in the rice sub-sector, and seeks to strengthen
existing sector alliances and develop new ones at national and regional levels. CARI is a four-year
partnership-based development project funded by the Bill and Melinda Gates Foundation (BMGF)
and the German Federal Ministry of Economic Cooperation and Development (BMZ). The
implementing agency is Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). In-country,
GIZ is implementing the programme in Burkina Faso and Nigeria, Technoserve and John A Kufor
Foundation are implementing in Ghana and Kilimo Trust is implementing CARI in Tanzania.
1.1 CARI Tanzania
CARI-TZ is designed to foster cooperation with public and private sector partners to form effective
and innovative Public Private Partnerships (PPP) in the rice sub-sector, and seeks to strengthen
existing sector alliances and develop new ones at national and regional levels. CARI-TZ encourages
partners to form consortia of actors working in the rice value chains that are committed to implement
a business model that achieves increased profitability for all actors involved. The approach is to
provide Matching Grant Funds (MGF) to selected Partners as a development incentive and to ensure
high ownership and commitment. BMGF provides the seed funding for the MGF scheme. The
grants are a means of triggering additional private investments to upgrade less competitive business
models and to up-scale existing successful ones.
Kilimo Trust’s role is to mobilise and jointly allocate resources, provide technical assistance, create
alliances for implementing projects, and set up mechanisms for monitoring and evaluation. Kilimo
Trust will also encourage capacity building among local organisations to effectively advocate among
decision-makers for an enabling environment in which the local rice sector can flourish. The Trust is
providing expertise all along the rice value chain. Rice millers are seen as the key anchors linking
consumers with service providers and producers. Building relationships between rice farmers and
rice millers so they can meet for mutual benefit as equal agri-business partners form an important part
of this initiative. The project plan is to reach at least 30,000 smallholder farmers, including 9,000
female farmers, whose daily income is below US$2, and double the income of at least 75% of those
targeted.
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1.2 CARI national workshop
The CARI 2016 national workshop was a one day event to achieve the following objectives;
a) Share experience of CARI implementation with other rice stakeholders.
b) Address key challenges, lessons and way forward for further investment in rice Sub-sector in
Tanzania.
c) Invite other development partners to, upscale and replicate CARI achievements.
The Workshop had 3 sessions which are: Opening remarks and CARI achievements to date, studies
conducted and partner experiences and group discussion sessions
Session 1: Opening remarks and CARI achievements
This involved four presentations which are CARI project in a nutshell to provide participants with highlight of
the project in tem minutes and the second presentation was on CARI Tanzania achievements in 15minutes
and progress and the last two presentations were from Matching Grants Partners (SHIRCO and SHYRICE)
for 30 minutes. These were followed by GIZ country Director and Guest of Honour, the Permanent Secretary
of the Ministry of Agriculture, Livestock and Fisheries development (MALF)..
Session 2: Studies conducted and partner experiences
This involved seven presentations of thematic areas for sparkling group discussions. Such presentations
constituted of the following themes;
i) Rice smallholder farmers’ rice production and mechanization.
ii) Household dietary diversification
iii) Rice markets and consumer preferences
iv) Rice processing: rice milling efficiency and husks management
v) CARI experiences on agricultural finance
vi) Policy frameworks and challenges in the rice sub-sector
Session 3: Thematic group discussions
Participants were divided into six groups based on their interest and each group was given one thematic topic
for one hour discussion. After the discussion of each group each group presented using cards on pin boards.
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CHAPTER TWO
2.0 Opening remarks and CARI achievements
The workshop involved was attended by 55 participants from development partners, public and
private institutions (see Appendix 2).
2.1.1 CARI in nutshell
Welcoming remarks was given by CARI-Tanzania Component head, Mr. Juergen Koch who
provided the details of CARI in nutshell. Specifically, he presented progress of CARI in countries
(Tanzania, Nigeria, Ghana and Burkina Faso) where project is implemented.
2.1.2 Achievements of CARI in Tanzania to date
Dr. Mary Shetto, CARI Tanzania Team leader
presented CARI projects achievements to date in
Tanzania. The presentation covered CARI
Tanzania experience, success and achievement up
to June 2016. The presentation highlighted main
goal of CARI which is to double the income of
farmers through increasing productivity of 30,000
SHFs. It CARI has recruited 39, 616 SHFs
through eight rice value chain consortia (SHIRCO,
PBR-DR, SURIPRO, RIMAH, SHYRICE, MRC,
SCF and ZANRICE) of which 13,037 (43%) are
female. Farmers have been trained on GAP,
Contract farming and financial management and
Business Skills through FBS. Such interventions
have achieved to increase rice Smallholder Famers yield average from 1.8mt-3.9mt/ha; increase in
income of smallholder farmers as a result of increased gross margin of paddy procured under
contractual arrangement; Quality of rice in line with market requirement; increased access to finance
by lead firms and FBOs (about 6,538 SHFs) from financial institutions.
2.1.3 Partners’ achievements and experiences
i) Southern Highland Rice Consortium
This was presented by Rachel Ajambo (Senior Program Officer, Kilimo Trust) on behalf of SHIRCO
The consortium was formed in 2014 and inaugurated May, 2015. SHIRCO is made up of 6,357
Smallholder Farmers, Raphael Group Limited (Lead firm), Rogimwa-Agro Company, Agri-seeds
technologies and MATI-Uyole.
Through SHIRCO, RGL has signed contracts with 6,357 SHFs to supply 11,250 MT of paddy
cumulatively and sale contracts with National and Regional Companies; YARA Tanzania Limited has
supplied 356.5 Mt of NKP to RGL contracted SHFs; Agri-Seed technologies: Supplied 56MT of
certified seeds (SARO); SHFs: Accesses funds from Bank of Africa through the Ware Housing
Receipt System, accessed credit inputs of more than TZS 400 million for input access, selling their
paddy in kg instead of bag, paddy quality improved (Reduced contaminated 8% 2014 to 0.5 2016),
Guaranteed market and improved their knowledge on GAP and FBS. Among the challenges that
Dr. Mary Shetto, CARI Tanzania Team
leader
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SHIRCO faces includes erratic weather, export ban, electricity breakdown, high interest rates (17%)
charged by banks and high percentage of contribution to the MGF (60:40).
ii) Shinyanga Rice for Competitive Markets (SHYRICE) Consortium
This presentation was made by Stefan Mpangala, Project coordinator of SHYRICE. The consortium
comprises of Musoma Food Company (Lead firm), 5521 SHFs, RUDI (Service provider of extension
and business skills) and KIBO (Agro-inputs Company). Musoma Food Company as paddy off taker
in Shinyanga and the company sell rice in Tanzania and EAC countries (Uganda, Rwanda, South
Sudan and Burundi).
Through SHYRICE, MFC has improved quality of paddy procured from SHFs (This has been
achieved through contractual arrangements), accessing funds from banks (NMB) and accessing
regional markets for rice; RUDI has linked 5521 SHFs, introduced new production technologies to
rice SHFs and promoted collection of paddy from SHFs; SHFs have increased yield from 0.6mt-1.5
mt/ha under rain fed and 2.5mt-4mt/ha under irrigation systems and KIBO has increased business
networking. Among the major challenges facing SHYRICE includes export ban imposed by the
Government. In his conclusion Mr. Mpangala requested the Government to allow SHFs to export
their paddy through companies like MFL because rice has become a commercial crop in EAC
region.
Workshop participants following up presentations during the event
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2.2.4 Question and answers
After presentations from CARI-Tanzania partners, the moderator allowed the floor to respond to the
CARI presentations by asking and commenting. The following are questions raised by participants
with their respective answers;
i) Justus Ochieng (World Vegetable Center): CARI has shown good example of how to work with
small holder farmers through Consortia supported through Matching Grant Fund. How about
sustainability after exit of the project?
Answer (Juergen Koch and Dr. Mary Shetto): Consortium works through formalized business
relationship between value chain actors which makes an approach sustainable as each part see
benefits. CARI has also been reducing support slowly and build capacity of value chain actors to
work together even after exit of the project. Furthermore, CARI is welcoming partnership to
sustain, replicate and upscale operation of value chain consortia.
ii) Justus Ochieng (World Vegetable Center): How does CARI reports yield units, in Metric Ton
per Hectare or MT/Acre?
Answer (Dr. Mary Shetto): All yields are reported in Metric Tons per Hectare for easy
comparison.
iii) Alex Mangowi (DFID): Most of the projects do not target on quality especially uniformity of rice
varieties. Are consumers of rice from CARI partners buying a cocktail of rice varieties or specific
rice varieties?
Answer (Dr. Mary Shetto-KT): The issue of quality of rice/paddy is ambiguity and farmers are
advised to get seeds from seed companies so that they can identify varieties they grow. This has
made easier to control the quality because it is the same seed (say SARO 5). But when SHFs use
local varieties it has been a challenge because of varieties mix and the same variety can have
different names in different places which pauses high likelihood of SHFs to mix the variety. The
division of Research and Development of MALF has been working to improve local rice varieties
which will be helpful in identification of rice varieties at production, trading, processing, branding
and consumption level.
iv) Ikeda Hiroyuki (JICA): What mechanism did CARI partners like SHYRICE, SHIRCO
employed to get loans from Banks like NMB for SHFs?
Answer (Dr. Mary Shetto and Rachel Ajambo-KT): Before SHFs access to loan from banks, they
are trained on GAP, farm business skills, financial literacy and contract farming and then undergo
a screening process to identify SHFs who actual qualify for loans. On the other hand, farmers
must be in registered groups, FBOs or cooperatives and sign supply contract with off takers which
act as security for banks to offer loans to them. Furthermore, there are cases like SHIRCO where
Private Agricultural Sector Support (PASS) stood as guarantor where SHFs pay a charge of 1% of
the value of loan. It was suggested for JICA to meet with CARI team and partners for more
details on SHFs financing through consortium approach.
v) Winklmaier, Alexander Michael (AfricaRice-Dar Es Salaam): How contractual arrangement
between SHFs and off-takers is made? Are the supply contracts based on the fixed prices?
Answer (Rachel Ajambo-KT): In the supply contracts that SHFs sign with off takers, the price is
fixed and farmers store their paddy in off-taker warehouse equivalent value to the loan taken from
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the bank. The contractual price of rice is set at minimum at which off taker will buy rice if price
will go down otherwise SHFs may sell stored paddy at prevailing market price to any buyer.
vi) Mr. Suwedi Kassim (Mamboleo Farm LTD): Productivity of SHFs especially in Rufiji basin has
increased due the use of GAP promoted by CARI project. Following the export ban the
government has been imposing, where are these SHFs going to sell their paddy as this can
discourage SHFs to produce commercially?
Answer (Mr Kiranga-MALF): The question was responded by Mr Kiranga, Director of Food
Security from the Ministry of Agricultural, Livestock and Fisheries (MALF). The government
imposed the ban to assess the situation of food security in the country before allowing export. But
now, the preliminary finding of food security assessment is done and the findings show that, there
is a surplus of 3 million and 1.2 million tons of maize and rice respectively. He went ahead and
insisted that, in general the country is food secured with surplus of about 113% for cereals and
140% for non cereals. Therefore traders and Companies are allowed to export rice and maize
provided that they qualify by having export permits from the MALF and ministry of industry,
trade and investment. The director shared with participants one of the scenario that, they got
applications from 50 traders and out 50 only 13 traders had export licenses. This shows most of
traders do not have export licenses and yet want to export agricultural commodities. He called up
on all traders to follow procedures for export permit for them to be able to do cross border
trades.
vii) Abel Lyimo (RUDI/East Africa Grain Council): During the presentation from SHIRCO
consortium mentioned that SHFs access credit from Bank of Africa (BOA) through Warehousing
Receipt System. How is this working?
Answer (Rachel Ajambo): With regard to Warehouse Receipt System between BOA and SHFs,
the mechanism is SHFs bring their paddy for storage to RGL warehouses and pay the fees. Bank
of Africa provide SHFs loan of up to equal of the value of paddy stored which is collateral. Once
SHFs sell their paddy, BOA gets back their money and what remains is paid to SHFs by RGL.
2.2 Delegates remarks 2.2.1 GIZ Country Director Remarks
Dr. Regine Qualmann, GIZ Country Director welcomed the
participant and shared GIZ experience working in value chain
activities. As GIZ work in other countries of Africa, it is not a donor;
it’s a commissioning partner and provides services. GIZ once secures
a project, looks for local companies/NGOs to implement the project.
She went ahead and insisted that, GIZ does that to encourage
sustainability of the project. GIZ also works in value chain for other
commodities like cashew nut and cocoa. Furthermore, apart from
agricultural sector in Tanzania, GIZ has been working in other area
like national natural resources management in Serengeti and
Ngorongoro. In her conclusion, he mentioned CARI project as pilot
for GIZ in supporting agricultural sector in Tanzania.
Dr. Regine Qualmann, GIZ Country
Director
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2.2.2 Permanent Secretary Remarks
The remarks of Guest of honour were given by
Mr. Kiranga, Director of Food Security on behalf
of Dr. Florens Turuka, the Permanent Secretary
of the Ministry of Agricultural, Livestock and
Fisheries (MALF). In his remarks (Appendix 3),
Dr. Turuka thanked GIZ and Kilimo trust for
innovative solution in rice value chain
development in Tanzania mentioning Value
Chain consortium approach supported by the
Matching Grants as an innovative solution which
need to be up scaled, adopted and replicated in
other crops and agricultural development
initiatives in the country. Dr. Turuka also said not
only that CARI improve farmers productivity and
quality of paddy, hence income increase through
these business relationships but also contribute in
improving food security and creating employment
opportunities for youths.
2.2.3 Vote of thanks
Dr. Mary Shetto, KT-Tanzania team leader thanked the guest of honour for the remarks and the
clarification given on the export ban issue. She also emphasized CARI-partners to make follow up of
permits and other documents required for them to export rice since rice export has been an incentive
for off-takers to offer good prices and SHFs to increasing production.
From Left to right Dr. Regine Qualmann, Dr. Mary
Shetto, Mr. Kiranga and Mr. Juergen Koch following up
presentations during the event
Participants following up remarks
Mr. Kiranga, Director of Food Security in the
Ministry of Agriculture, Livestock and Fisheries
giving remarks on behalf of Dr. Florence Turuka,
The Permanent Secretary of the Ministry
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CHAPTER THREE
3.0 Thematic presentation and discussions
This session involved presentation of studies and experiences CARI project and rice sub-sector in
Tanzania. The session was followed by thematic group discussions.
3.1 Thematic presentations and discussions This session involved presentation of studies carried under CARI project in Tanzania. These
thematic presented were agricultural mechanization of SHFs, Household dietary diversification, Rice
processing and Tanzania rice marketing and consumer preference. Other presentations were CARI
experience with smallholder farmers financing and Policy frameworks and challenges in the rice sub-
sector.
3.1.1 Mechanization of Small Holder Rice Production in Tanzania
Eng. Isarian Mwende: The presentation was based on challenges, lesson learnt and way forward
toward mechanization from the findings of the CARI study on Mechanization of Small Holder Rice
Production in Tanzania. It was reported that the use of power-tiller has become more popular
among SHFs, however SHFs groups are still weak to venture in mechanization and machinery
services provision can be a profitable business. However, about 62% of the land is under hand hoe
cultivation. Other challenges are limited participation of private sector in provision of mechanization
services, small land holding and poor infrastructure among others. It was recommended to promote
Public-Private Partnership in improving infrastructure in like bridges, roads and drainage to make
mechanization possible and financial institution particularly Tanzania Agricultural Development
Bank (TADB) to provide mechanization credits to SHFs.
3.1.2 Household dietary diversification
Justus Ochieng: This presentation was based on part of the findings of CARI study on diet among
rice SHFs in Bahi and Mbarali district. It was reported that about 5.5% of women who are in the
reproductive age are under weight. Female headed households had lower (1.6) Dietary Diversity Scores (DDS)
for children and women compared to male headed households (2.2). Generally, the diets in the districts under
the study lacked diversity and intake of animal sources is low. It was recommended to promote SHFs in areas
where CARI project implemented to plants vegetable so that they diversify their diet.
3.1.3 Rice markets and consumer preferences
Mr. Joseph Kangile: This presentation was based on part of on preliminary results of CARI study on
rice market and consumer preference with focus on challenges, lesson leant and way forward. It was
reported that the rice market is sensitive to aroma, price, grain quality and place of origin. Rice
customers test quality by eyes, touching, feeling and smelling and 70% of rice sold in the markets was
a mix of aromatic and non-aromatic varieties. These influences malpractice of traders to oil rice to
make grains shine, mixing rice particularly local and imported rice. It was also reported that about
70% of rice sold in the market was mix of aromatic and non-aromatic. It was recommended for
traders to put more emphasis and investment on rice quality, hygiene first, products traceability,
branding and integration of local varieties into the formal seed system.
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3.1.4 Rice processing: Rice milling efficiency and husks management
Olivier Van Buynder and Tobias Klaus: Presentation on this theme constituted of two presentations
one with more emphasis on milling efficiency and the other one on rice husks management. Both
presentations were based on preliminary findings of CARI studies on milling efficiency and rice husks
management. It was reported that most of processors have poor record keeping system (both
financial, and production); poor process management associated with poor hygiene (food safety,
personnel and storage); and poor control of moisture content and the presence of foreign matters. It
was recommended to introduce simple and effective system of recording correct data and make them
available to assist the manager in making informed decisions. It was also recommended to processors
to adopt Good Manufacturing Practices (GMPs) that will improve process management at the factory.
It was also reported presence of mountains of husk around the processing units with high opportunity
costs while processors face high electricity bills and frequent power cut. It was recommended to
processors to consider and adopt options available for management of husks from rice including
gasification, incineration, composting, construction material etc.
3.1.5 CARI experience in agricultural finance
Rogart Mmole: This presentation on SHFs financing based on CARI experience in rice sub-sector. It
was reported that CARI project promote an approach where lead Firms act as a “gateway” for
financial institutions to serve SHFs. Formal relationship through contract farming provides a market
assurance to SHFs, and hence attracts financial institutions to lend SHFs. This engagement of SHFs
requires capacity building to make them attractive to not only donor funding, but also to financial
institutions. However there have been weakness in adopting Best Business Management Practices
(BMPs) such as record keeping, financial control & monitoring and governance; poor business skills;
poor relationship – “chicken and egg” story; Little knowledge of demand and supply / broken bridge.
It was recommended to support the Lead Firms to develop and implement proper operational
manuals, such as Finance & Accounting Manual, Risk Management Policy, Marketing Strategy,
Procurement Manuals, etc; Support SHFs to form an Apex Board/Business Organization to govern
their farming businesses; Support the Lead Firms, SHFs and other MSMEs to establish a trustworthy,
accountable and transparent business relationship; Build a “strong bridge” that connects financial
institutions and “ready cooked” business partnership of Lead Firms, SHFs and other MSMEs.
3.1.6 Policy frameworks and challenges in the rice sub-sector
L.N. Salakana: This presentation provided the overview of the policy frameworks and challenges in
rice sub-sector in Tanzania. It was learnt that there has been inadequate investment in agriculture
sector that includes the rice sub-sector; Inadequate regulatory framework for investment and trade in
food crops: multiple fees- produce cess (also not harmonized) and trade-service fees, licenses, permits
& certificates; Imposition of export ban increases the costs and uncertainty for investment across the
whole RVC; Inadequate data on production, productivity and marketing and Inconsistency in
implementation of EAC Market Protocol- Zero tariff agreement to member countries (TZ rice export
to Uganda charged 18% VAT & Rwanda import ban to TZ rice). All of these needs to be addressed
by the government to make rice sub-sector profitable to all value chain actors and attractive for further
investment.
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3.2 Thematic group discussions
This session involved group formation based on the thematic presentations. Guiding questions for
groups discussion were: Which additional interventions do you think are important? What are
associated activities? Who can do it? What can be contributed? Presentations of thematic group
discussions output were done using pin boards and output of such discussions are presented in
Appendix 4.
Thematic group discussions in action
Mechanization of Small Holder Rice Production Household dietary diversification
Rice markets and consumer preferences Rice processing
CARI experience in agricultural finance Policy frameworks and challenges in the rice
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CHAPTER FOUR
4.0 Lessons learnt and closing remarks
4.1 Key lessons drawn
1. Rice production and mechanization
It was learnt that rice mechanization for smallholder farmers is crucial for increasing their efficiency
and expanding rice productivity. However, the level of smallholders mechanization in rice is lower
due to lack of capital and limited access to mechanization services. Engaging mechanization service
providers in value chain consortia is a business opportunity which will fast track smallholder rice
production mechanization. This will also succeed through investment in infrastructure to facilitate use
of machines, water management and irrigation.
Good Agricultural Practices (GAP) trainings with emphasis on water management technology has
made CARI interventions climate smart for rice small holder farmers especially for rain fed systems.
Furthermore, promoting small scale irrigation technology in rice and rain water harvesting will help
farmers in rain fed areas to adopt new farming technologies like System of Rice Intensification (SRI)
which require little amount of water.
2. Household dietary diversification
Dietary diversity is important in improving nutritional status particularly for women and children.
Support of CARI on complementary crops need up scaling to make sure those smallholder farmers
can improve access to other nutrients and balanced diet among rural households. Investment in water
harvesting during rain-season is important for giving farmers an opportunity to grow horticulture crops
as diversified crops after harvesting paddy for more income.
3. Rice markets and consumer preferences
Tanzania rice consumers consider aroma and appearance as the most important features when they
buy rice. Most of aromatic rice are of local varieties which produce low and their seeds are supplied
through informal seed system. Local varieties seeds improvement programmes are therefore
important for satisfying rice consumers who are willing to pay higher premiums for aroma as well as
improving profitability of farmers.
Low quality of rice due malpractices such as rice mixing and oiling have not been addressed enough
in Tanzania. Investment in branding is crucial for increasing competitiveness of Tanzania rice and
traceability of rice to prevent malpractices. Furthermore, involvement of Tanzania Food and
Nutrition Centre (TFNC) and Tanzania Food and Drugs Authority (TFDA) in addressing nutritional
and other regulations related to food business is crucial is key.
4. Rice processing: Rice milling efficiency and husks management
There has been an expansion of processors engaged in CARI value chain consortia but with
inadequate process management capacity. Building the capacity of processors on Good
Manufacturing Practices (GMPs) is crucial for them to improve their process management to quality
of their products.
Rice processing by products such as husks and bran are potential business opportunity in rice value
chain. These by-products such as bran and husks are can be used in fertilization, gas and energy
production. Capacity building for processors on husks management and use is crucial in turning such
by products into money making business.
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5. CARI experience in agricultural finance
Formation of Value chain consortium provides an opportunity for Commercial banks to finance
smallholder farmers. Consortium model makes partners (Off-takers, input suppliers, Farmers and
Financial Institutes) work together and make profit from making business partnership. The contract
farming in the consortia provide better environment for financial institution to finance smallholders
and transforming them from subsistence to commercial farming as they are engaged in doing farming
business in assured markets.
6. Policy frameworks and challenges in the rice sub-sector
Harmonization of the Sub-sector policy interventions is necessary to ensure that rice smallholder
farmers cover their costs of production and get profit from their efforts. Unpredictable policies
interventions such as export ban disrupt investment in the sector.
4.2 Closing remark Closing remarks was given by Dr. Mary Shetto, KT-Tanzania team leader by thanking all participants
for their time and contribution which made the workshop successful. She finally welcomed all
interested stakeholders to join in up scaling, replicating and sustaining CARI project.
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APPENDICES
Appendix 1 Workshop programme
Time Event Responsible person (s)
0800-0830 Arrival and registration All
0830-0900 Welcoming participants Juergen Koch/Mary Shetto
0900-0915 CARI in a nutshell Juergen Koch
0915-0930 Achievements of CARI Tanzania Dr. Mary Shetto
0930-0945 CARI Rice Value chain consortia: SHIRCO experience Lazaro Mwakipesile
0945-1000 CARI Rice Value chain consortia: SHYRICE expérience Stephano Mpangala
1000-1020 Discussion All
1020-1035 GIZ Country Director remarks Dr. Regine Qualmann
1035-1100 Guest of Honour remarks Permanent Secretary MALF
1100-1130 Tea break All
1130-1300 Thematic presentations Charles Ogutu
1130-1145 Mechanization of small holder rice production Isarian Mwende
1145-1200 Household dietary diversification Justus Ochieng
1200-1215 Tanzania rice marketing and consumer preference Joseph Kangile
1215-1230 Rice processing Olivier Van Buynder and
Tobias Klaus
1230-1245 CARI experience in rice smallholder farmers financing Rogart Mmole
1245-1300 Policy environment challenges within the rice sector Winnie Bashagi
1300-1345 Lunch break All
1345-1445 Thematic group discussions All
1445-1545 Groups presentations Groups representatives
1545-1600 Lessons learnt Charles Ogutu
1600-1615 Closing remarks
1615-1630 Evening tea All
1630 Departure All
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Appendix 2 List of participants
S/No Organization Names email address
1 Africa Rice Michael Winklmaier [email protected]
2 Aga Khan Foundation Tahira Nizari [email protected]
3 Aga Khan Foundation Bashiru Nanyanda [email protected]
4 AGRA Mary Mgonja [email protected]
5 AVRDC Justus Ochieng [email protected]
6 Brazilian Embassy Paula Musso [email protected]
7 Bytrade Tanzania Ltd Rajabu [email protected]
8 Bayer Life Science Andrew Wallace [email protected]
9 Biosustain Tanzania Ltd Hassan Jaha [email protected]
10 MRA Management Association Charles Ogutu
(Moderator)
11 CRDB Shaban Maregesi [email protected]
12 Dakawa Sophia Kashenge [email protected]
13 Dakawa Joseph Kangile [email protected]
14 DFID Alex Mangowi [email protected]
15 Dalberg Jackson Mahenge [email protected]
16 FAO Morine Lwakatare [email protected]
17 G2L Albert Lugome [email protected]
18 GIZ Dr. Regine Qualmann [email protected]
19 GIZ Mr. Juergen Koch [email protected]
20 GIZ Adellah Kimambo [email protected]
21 Independent Consultant Tobias Klaus [email protected]
22 Independent Consultant Olivier van Buynder [email protected]
23 Independent Consultant Isaria Mwende [email protected]
24 IFAD Dr. Mwatima Juma [email protected]
25 JICA Ikeda Hiroyuki [email protected]
26 Kimolo Super Rice Ltd Anna Jailos [email protected]
27 Kilimo Trust Dr. Mary Shetto [email protected]
28 Kilimo Trust Rachel Ajambo [email protected]
29 Kilimo Trust Rogart Mmole [email protected]
30 Kilimo Trust Owen Nelson [email protected]
31 Kilimo Trust Ayda Kagambo [email protected]
32 MALF Mr. Kiranga [email protected]
33 MANR, Zanzibar Mr. Sheha Hamdan
(DPPR) [email protected]
34 MANR, Zanzibar Ms. Maryam Juma
Abdulla [email protected]
35 Mamboleo Farm Ltd Suwedi Kassim [email protected]
36 Musoma Food Company Ltd Stephano Mpangala [email protected]
37 Musoma Food Company Ltd Annuciata Tegete [email protected]
38 Musoma Food Company Ltd Said Tangawizi [email protected]
39 MATI Uyole Eng. Godwin [email protected] ;
17
S/No Organization Names email address
Mwamkinga [email protected]
40 NAFAKA Tom Carr '[email protected]'
41 NMB John Machunda [email protected]
42 Raphael Group Ltd Lazaro Mwakipesile [email protected]
43 Raphael Group Ltd Ziana Suleiman [email protected]
44 RUDI / East Africa Grain
Council Abel Lyimo
45 Rice Council of Tanzania Leonsia Salakana [email protected]
46 Rice Council of Tanzania Julius Wambura [email protected]
47 SAGCOT Centre Geoffrey Kirenga [email protected]
48 Syngenta Samuel Muturi [email protected]'
49 TPSF Rehema Mbugi [email protected]
50 World Bank Neema Mwigu [email protected]
51 WFP Ananth Raj [email protected]
52 YARA William Ng'eno [email protected]
53 SHYRICE Annuciatha Makilagi [email protected]
54 YARA Alexanda Mowasho [email protected]
55 Bytrade Tanzania Ltd Harish Dhutia [email protected]
56 AGRIinsight Fredrick Kitchen [email protected]
18
Appendix 3 Guest of honour remarks
Opening Remarks by Dr. Florens Turuka,
The Permanent Secretary for Ministry of Agriculture Livestock and Fisheries on Competitive African
Rice Initiative (CARI) National Learning Event, 30th September 2016
GIZ country Director, Dr. Regine Qualmann
Representatives of Embassies,
Development partners,
Private and Public Institutions
CARI Tanzania Team Leader-Dr. Mary Shetto
CARI Tanzania Component Head - Mr. Juergen Koch
Dear participants
Ladies and Gentlemen; Let me start by thanking the organizers of today’s event, for giving me the
honour to open this national workshop of the Competitive African Rice Initiative (CARI) in Tanzania. I also thank GIZ for supporting CARI project in Tanzania and Kilimo Trust for leading
the implementation of CARI in Tanzania. I have followed up on the progress on the implementation
of CARI and I am pleased to say the approach and achievements made so far by CARI project in
Tanzania is encouraging especially the intervention on ensuring smallholder farmers access to market
and finance.
Ladies and Gentlemen; As most of you know, Rice is one of the commodities and value chain
prioritized by the Government. One of the major challenges in agricultural sector development
programmes includes the question of how to support smallholder farmers to commercialize their
farming by linking them to services, inputs/output market and finance. On this issue, CARI has
introduced and implemented innovative solutions to rice value chain development in Tanzania.
CARI has facilitated coordination of rice value chain actors through formation of consortia supported
with matching grants. CARI is targeting about 40,000 smallholder farmers through its eight consortia,
namely: Shinyanga Rice for competitive market led by Musoma Food Company LTD; Sustainable
Rice Production in Singida led by Biosustain Company LTD; Promoting Bahi Rice – Dodoma
Region led by Kimolo Super Rice LTD; Southern Highland Rice Consortium led by Raphael Group
LTD; Mbarali Rice Consortium led by G2L Company LTD; Smallholders Crop Finance Kilombero
led by Kilombero Plantation LTD; Rice Market Hub, Rufiji led by Mamboleo Farm Limited and
ZANRICE led by the Ministry of Agriculture and Natural Resources of the Revolutionary
Government of Zanzibar. In its interventions they are training farmers and link them to services,
inputs/output markets and finance. Preliminary results show great achievements. Not only that CARI
improve farmers’ productivity and quality of paddy, hence income increase through these business
relationships but also contribute in improving food security and creating employment opportunities
for our youths.
Ladies and Gentlemen; The government is always working to support smallholder farmers to
improve their productivity and farm income. For example, in year 2015/2016 the government
19
provided input subsidies through voucher systems to 999,926 farmers to access fertilizer and quality
seeds for maize and rice. In the year 2016/17 budget, the plan is to ensure availability of 400,000 tons
of fertilizer, 40,000 tons of quality seeds of cereal crops including paddy. The government is also has
provided 64 combine harvesters, 36 paddy threshers and 16 reapers in 14 irrigation schemes in
Babati, Mbarali, Meru, Kilombero, Mwanga, Hai , Iringa rural, Mvomero, Korogwe and Bagamoyo.
Preliminary analysis shows that mechanization of rice harvesting and post-harvest handling increases
yield from 20 bags to 25 bags per Hector. Also, in 2015/16 the Agricultural Input Trust Fund
(AGITF) provided loans for 66 new tractors, 2 power tillers, 6 irrigation facilities, 1 combine
harvester and 1 processing machine. These are few among many efforts done by the government and
development partners but still the sector development needs more initiatives to take Tanzania to
industrialized economy through agriculture.
Ladies and Gentlemen; With all government supports for smallholder farmers, it is well known that
still most of our farmers do not have access to mechanization machines or services and the
government input subsidies and support is limited to few farmers due to budget constraint. In
addition, smallholder farmers have limited access to financial services due to the fact that smallholder
farmer is perceived to be risky which makes most of lenders shy away. I therefore appreciate the
effort of private sector initiative under CARI to link and make it possible for farmers to access finance
as guarantee market solutions to farmers which has always been a challenge.
Ladies and Gentlemen; The Government has recently launched Tanzania Agricultural Development
Bank (TADB) from which the opportunity for accessing finance for farmers and other value chain
actors has been expanded. An experience we draw from CARI value chain consortia approach
convince all stakeholders including agricultural banks that if business relationships are strengthened
smallholders farmers are creditworthy. It is now my call for CARI matching grant partners to take
opportunities from TADB to finance farmers inputs as well as accessing working capital for
expanding investments.
Ladies and Gentlemen; As you all might be aware that Tanzania is the largest producer and consumer
of rice in the EAC, and the regional market demand is also expanding. This is therefore an
opportunity for Tanzania SMEs and farmers to tap; and CARI has demonstrated good approach of
how to link our smallholder farmers through off-takers to EAC regional and nearby countries market
through consortium approach.
I want to assure you that the Government is always opening door for private sector investment in
agricultural sector and partnerships. More efforts will be towards improving irrigation infrastructures,
marketing and communication infrastructures, rural electrification and providing good policy
environment for investment in agriculture sector and supporting smallholder farmers.
Ladies and gentlemen; This CARI national workshop is also an opportunity to share experience and
learn from one another. Let me take this opportunity to ask all participants of this workshop to think
of how we can provide inputs for improving, replicating and sustaining CARI benefits to more
farmers and other actors in the rice value chain.
Ladies and gentlemen; with these few remarks, it is now my pleasure and honour to officially launch
this CARI national workshop and wish you fruitful discussion and deliberations.
THANKS FOR YOUR ATTENTION
ASANTENI SANA.
20
Appendix 4 Thematic discussions output
Thematic
group
Intervention Activities proposed Who can contribute How to participate
(Contribution)
Mechanization
of Small
Holder Rice
Production in
Tanzania
Mentality
transition away
from subsistence
farming
Training on Business skills FAO
Kilimo Trust
Government
Lead farmers as example
of success
Private companies
NGOs
Attracting more funds
Recruitment of Agric.
mechanization experts
Fostering
adoption of
mechanization
Promotion of products
Market research
Financing mechanization
Provision of Machine hiring services
Machines manufacturers
and distributers
Financial Institutions
Local
businessmen/women
Agric mechanization trade
shows,
SHFs trainings through demo
Provision of loans
Collective purchase and hiring
Improving level of
mechanization
Off takers export Contract farming
Maintenance service
Training SHFs groups on adopting
depreciation cost concept
Improving farm infrastructures e.i. farm leveling, drainage and roads
RCT
Government
Manufacturers
VETA
Local mechanics
Lobbying:- lifting export bans
and minimizing government
interventions,
Mechanization workshops,
Financial management training
Household
dietary
diversification
Rice-vegetable
integration
Creation of awareness on nutrition
issues
Up scaling CARI
Kilimo Trust and GIZ
Africa Rice
World Vegetable Centre
Research Institutions
Collaboration in attracting funds,
Public Private Partnership (PPP)
Behavioral change
communication
Training on importance of nutrition
Promoting home vegetable gardening
Further study in dietary diversity
World Vegetable Centre
CARI/Kilimo Trust
21
Thematic
group
Intervention Activities proposed Who can contribute How to participate
(Contribution)
Rice markets
and consumer
preferences
Stopping rice
oiling and
ensuring quality
rice is traded
Creating awareness to millers and
traders
Study on health related effects the
practice
TFDA
TFNC
Millers
Traders
Support training millers and
traders on rice quality control
and standards
Rice branding Investment of packaging and quality
control
Millers
Traders
Packages manufactures
Development partners
Building capacity of processors
to brand their rice
Quality
traceability
Investing on packaging
Branding to ensure good quality rice
branded
Millers
Traders
Government
Development partners
Ensuring rice traded in the
market can be traced back its
origin
Rice value
addition
Market research (target and
segmentation)
Capacity building
Investment analysis
Millers
Farmers
Development partners
Research Institutions
Collaboration of actors through
Public Private Partnership
Contract farming Capacity building Off takers
Extension agents
Development partners
Support ToTs for SHFs
contract farming
Improving scheme/FBOs
management
Extension agents
Farmers
Support building capacity of rice
SHFs FBOs management
Rice
processing:
Rice milling
efficiency and
husks
management
Quality control At farm level;
Rice moisture control (use of moisture
meter)
Training SHFs on drying management
Farmers
Extension staffs
Off takers
Supporting training SHFs
At processing level;
Train on quality control and
improving hygiene
TFDA
RCT
Processors
Improving hygiene and quality
control at processing level
22
Thematic
group
Intervention Activities proposed Who can contribute How to participate
(Contribution)
Improving
processing
management
Training on record keeping
Improving data management
Train to structure and access data on
costs, quality, maintenance and
investment
Processors
Business development
service providers
Provision of support and
training on plant management
and data collection
CARI
experience in
agricultural
finance
Capacity building
on financial
literacy at SHFs
level
Attract Business Development Service
providers specialized in SHFs
financial literacy
CARI
FIs
Support ToTs in financial SHFs
literacy
Capacity building
of on financial
literacy at
Financial
Institutions level
Building capacity and competence of
FIs to deal with agricultures sectors
CARI
FIs
Business Development
Service providers
Training FIs on agricultural
financing
Strengthening
Farmers Business
Organizations
(FBOs)
Forming well organized FBOs
Incubating FBOs to grow
CARI implementing
partners
District Councils
Support preparation of Business
Plans and MEMARTs for FBOs
Provision of incentive/grants
Identifying
potential financial
solution for entire
value chain (value
chain financing)
Reviewing crosscutting value chain
price structure
CARI implementing
partners
FIs
Review and recommend ways of
improving value chain financing
products
Identifying
suitable means of
risks mitigation
strategies
Identify and classify risks
Identifying pilot Agricultural
Insurance products
Matching insurance products with
SHFs needs
CARI implementing
partners
Insurance companies
Review and convince the entry
of Insurance companies
23
Thematic
group
Intervention Activities proposed Who can contribute How to participate
(Contribution)
Policy
frameworks
and challenges
in the rice sub-
sector
Creating enabling
business
environment
Improving rice production and
marketing efficiency
Government Improving rice production and
marketing infrastructures i.e.
roads, railways, irrigation
systems, electricity etc.
Strategic decision
to export ban
Getting real time data so as to make
evidence-based decisions
Top-down and Down-top
communication flow
Government
RCT
Traders
Farmers
Government make decision
based on farmers situation
Food crops export
requirements
(license, permits,
certification etc) in
“one stop shop”
for TFDA, TBS,
TCCIA, MALF
etc.
Establishment of one stop shops Government and
agencies concerned
Support establishment one stop
shops for all services in strategic
areas
Investment in
Research and
Development
Improving understanding of rice
production and market
Research Institutions Conducting more market
research
24
Contacts
Kilimo Trust Tanzania
Plot 455, Avocado Street, Kawe
P.O.BOX 106217
Dar-es-Salaam, Tanzania
Tel: +255 22 278 1299
Website: www.kilimotrust.org
Email: [email protected]