POULTRY SECTOR COMMERCIALIZATION OF CHICKEN ...

RLDC

SLC Sector Development Strategy 1

POULTRY SECTOR

COMMERCIALIZATION OF CHICKEN PRODUCTION AND MARKETING IN THE CENTRAL CORRIDOR

Team Leader: Ibrahim Kisungwe

Advisor: Dr Ralph Engelmann

Team Members:Braison Salisali and Ajuaye Sigalla

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EXECUTIVE SUMMARY ..................................................................................................................................... 3

ABBREVIATIONS AND ACRONYMS.............................................................................................................. 4

1.0 INTRODUCTION .......................................................................................................................................... 5

2.0 PRODUCTION AND MARKET ANALYSIS ............................................................................................. 6

2.1 NATIONAL DEMAND AND SUPPLY ..................................................................................................................... 6 2.2 POULTRY VALUE CHAIN ................................................................................................................................... 8 2.3 MARKET SYSTEM ........................................................................................................................................... 10 2.4 SLC IN CENTRAL CORRIDOR .......................................................................................................................... 11

3.0 CONSTRAINTS AND OPPORTUNITIES .............................................................................................. 12

3.1 PRODUCTION AND MARKET CONSTRAINTS...................................................................................................... 12 3.1.1 Production Constraints .................................................................................................................... 13 3.1.2 Market Constraints ........................................................................................................................... 14

3.2 OPPORTUNITIES ............................................................................................................................................ 15

4.0 BARIADI MODEL OF CHICKEN REARING ........................................................................................ 16

4.1 DESCRIPTION OF THE ORIGINAL MODEL .................................................................................................. 16 4.2 LESSONS LEARNT FROM THE IMPLEMENTATION IN BARIADI ...................................................................... 17 4.3 IMPROVEMENTS TO THE BARIADI MODEL ................................................................................................ 19 4.4 EXPECTED OUTCOMES OF THE IMPROVED BARIADI MODEL ....................................................................... 21

5.0 PROPOSED STRATEGY FOR CHICKEN SECTOR DEVELOPMENT .............................................. 22

5.1 VISION FOR SECTOR DEVELOPMENT ............................................................................................................... 22 5.2 PROJECT OBJECTIVES .................................................................................................................................... 23

5.2.1 Productivity Improvement ............................................................................................................... 23 5.2.2 Market Development and Advocacy .............................................................................................. 24

5.3 PROPOSED INTERVENTIONS ........................................................................................................................... 24 5.3.1 Productivity Improvement ............................................................................................................... 24 5.3.2 Market Development and Advocacy .............................................................................................. 30

6.0 RISK ANALYSIS ........................................................................................................................................ 31

7.0 IMPLEMENTATION PARTNERS ..................................................................................................... 32

7.1 CO-FACILITATOR AND TRAINING PROVIDERS .......................................................................................... 32 7.2 DEVELOPMENT PARTNERS ...................................................................................................................... 32

8.0 BIBLIOGRAPHY ......................................................................................................................................... 34

9.0 ANNEXES ....................................................................................................................................................... 1

9.1 PROJECT BUDGET .................................................................................................................................... 1 9.2 IMPLEMENTATION SCHEDULE ................................................................................................................... 3 9.3 CAUSAL MODEL ....................................................................................................................................... 5

List of Tables Table 1: Comparison of meat prices…………………………………………………………………. 6

Table 2: Percentage and number of households raising chicken……………………………. 11 Table 3: Estimated chicken sale and consumption in 2008…………………………………… 11

Table 4: Regional focus of strategy…………………………………………………………………. 22

Table 5: Diseases and drugs availability…………………………………………………………… 26

List of Figures Figure I: Poultry Value Chain………………………………………………………………………... 7 Figure II: Poultry Market System………………………………………………………………….. 9

Figure III: Factors affecting Chicken Rearing………………………………………..…………. 13 Figure IV: Chicken Productivity and Sales Cycle……………………………………………….. 14

RLDC


Executive Summary In its first phase, RLDC supported a project on Improved Production and Marketing of Poultry Products in Bupandagila and Mbiti villages in Bariadi District. The project

served as a testing and demonstration by adapting the famous Bangladesh model

into Tanzanian settings. After successful adaptations the model has now been modified into the current Bariadi model. The sector strategy proposed here is to

some extent a replication strategy of the positive results of the Bariadi Model.

Based on lessons learnt from Bariadi model as well as further local poultry sector assessment, RLDC wants to now replicate the model into a wider area in the central

corridor. Through this project, RLDC is envisioning at both improving local poultry products consumption as well as commercializing of the local poultry industry in the next five years. While consumption levels are already higher in the rural areas than in urban centre, RLDC anticipates that urban consumption will increase by at least 10%

per annum if prices of local chicken will be closer to those of exotic breeds.

To achieve the above, the project at hand is planning to work into two different levels, the productivity improvement and market development and advocacy levels. Within the productivity improvement level, the following two replication interventions will be devised,

1. creation of awareness to improved commercial chicken rearing as well as raising the interest of traders and communities for replication and,

2. After awareness has been created there will be actual introduction of

improved commercial local chicken rearing with a view to attain high

sustainability by providing basic training on improved commercial local chicken rearing for communities.

In regard with the market development and advocacy, the project is intending to

carry out the following three interventions,

1. organizing workshops for traders from regional and urban traders associations 2. organizing topical workshops for traders of interested regional and urban

traders associations on technical issues like improved transport, slaughtering

and marketing of chickens 3. promoting establishment of a national chicken producers and traders

association The project is expected to reach a total of 8,100 households in about 135

villages in 9 districts of 6 regions in the central corridor and spend a total of

Tshs 346.8 millions in the next 18 months. Poultry keepers in all 135 villages will benefit from interventions during the project

period, however most of the outcomes will only be realised in 2011. Based on the

achievements of 2010 there might be an additional funding request for extension services and market linkage at the end of the project.

RLDC


Abbreviations and Acronyms BMO Business Member Organisation CRDB Cooperative and Rural Development Bank

CVL Central Veterinary Laboratory

DANIDA Danish International Development Agency DOC Day Old chick

EC Executive Committee

FAO Food and Agricultural Organisation FDG Focused Group Discussion GDP Gross Domestic Product

KIPOCOSO Kisutu Poultry Cooperative Society

LGA Local Government Authority LITI Livestock Training Institute MITM Ministry of Industry Trade and Marketing

MLD Ministry of Livestock Development MoU Memorandum Of Understanding

NMB National Microfinance Bank RFA Radio Free Africa

SACCOS Savings and Credit Cooperative Society SLC Scavenging Local Chicken

SUA Sokoine University of Agriculture TVA Tanzania Veterinary Association TOT Training of Trainers

VETA Vocational Education Training Authority

VIC Veterinary Investigation Centres VSL Village Saving and Lending

RLDC


1.0 Introduction It is estimated that Tanzania had about 36.2 million chickens by 2008, out of which almost 95% are local chickens and the rest are exotic breeds and most of these local

chickens are reared by rural households. In the central corridor it is estimated that

there is about 9.2 million chickens kept by 60% of the rural households (or about 1.17 million households) of which the vast majority (98%) is local breeds. Most of

these rural households keep local chicken for subsistence and income

generation. In particular, relatively poor rural households and women keep chicken as chicken rearing does not require much resources and investment and in fact the local scavenging chickens (SLC) almost take care of themselves and still provide food

and limited income for the family.

Because of its character as subsistence activity, keeping SLC faces a number of problems and challenges. In particular the high mortality of local chickens makes

chicken rearing a risky venture that most rural households mitigate by only maintaining a relatively small stock of chicken.

Based on the lessons learnt from a successful Bariadi model, which was tested in

Mbiti and Bupandagila villages in Bariadi district, this paper proposes to use the experience gained to solve the above problems and challenges and replicate the

strategy to the wider region of the central corridor. Bariadi model has proved to be a useful tool in modernising traditional way of keeping local chickens as well as increasing income levels of village households and hence potential for the reduction

of rampant poverty in the central corridor.

In this paper, RLDC takes a different view and looks at the production and marketing of local chicken (kuku wa kienyeji) from a business perspective. In the first part,

supply and demand of SLC is analysed as well as the current market system with its

constraints and opportunities. In the second part of this document, the experiences of RLDC in Bariadi are reflected with a view to use an improved version of the so called Bariadi model for replication to about 8,100 households in the Central Corridor.

The last part describes the project objectives and activities in detail. The annexes to this document include a detailed project budget and implementation schedule. The

draft causal model for monitoring forms the third annex.

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2.0 Production and Market Analysis

2.1 National Demand and Supply

According to the Economic Survey 20071, livestock contributes about 4.7% to the GDP, a contribution which is higher than the 3.5% from the mining and quarrying

sector. About 70% of the livestock GDP contribution originates from cattle and about 16% relates to poultry rearing, which corresponds to about 0.75% of the total GDP.

The national chicken population has been estimated to be about 36.2 million chickens in 20082, out of which almost 95% are local chicken and the rest are exotic breeds. Most of the local chickens are reared by rural households, although

local chicken are also kept by urban households.

Many households keep chicken mainly for subsistence and limited income generation. They slaughter the chicken for special occasions and consume most of

the eggs within the household. Only the surplus chicken and eggs are sold in the

market. Based on FGDs carried out by RLDC3, we estimate that a chicken rearing household consumes about 5 to 10 chickens per year. A recent study shows in respect of the Central Corridor that about 52% of total production is sold in an

informal way to neighbours and another 42% is sold in local stores or markets4. However in the same study it was revealed that only 40% of the

households that keep chicken actually sold them in the year 20085. Based on our findings we differentiate three market levels:

• Informal Markets6: chicken and eggs are sold to neighbours or local

markets within the same village or villages nearby. These sales are directly done by the households. Middlemen or traders from regional and urban markets often buy chickens on the local markets. There are numerous open

village markets in each region. For example, there are about 19 weekly

markets in Singida Rural District only

• Regional Markets: includes markets in district and regional centres. Chicken

and to a lesser degree also eggs are ferried to the district or regional centres and sold there. The sales are done by traders and/or middlemen. The market volume is relatively in regional markets. For example, RLDC information

indicates that the market volume in Singida is only about 90,000 chickens per

year7, out of which some of the chickens will be consumed locally whereas

1 Ministry of Finance and Economic Affairs, The Economic Survey, 2008, page 10

2 Estimated figure in 2008 based on FAO, Livestock Sector Brief, 2005

3 RLDC Report of Focus Group Discussions with poultry groups, 2009 4 Steadman Group : Crop & Livestock Management Central Corridor of Tanzania, Baseline survey Draft Report,

2009 5 Steadman Group, Crop & Livestock Management Central Corridor of Tanzania, Baseline survey Draft Report,

2009 6 Although there is some degree of formality in village markets, they can be called informal because sellers and

buyers are not formally registered 7 RLDC workshop report with traders associations, 2008

RLDC


others will be bought by urban traders. However, there are no reliable official data on the market volumes in the regions

• Urban Markets: includes big cities Dar es Salaam, Arusha, Mwanza, Mbeya,

and Morogoro. Chickens that reach the urban markets are mainly sold by traders who buy them from the regional markets and, in a few cases, from the informal open village markets. There are about five major chicken markets in

Dar es Salaam (Kisutu, Manzese, Kinondoni, Tandika, Buguruni and

Magomeni) that are operated by chicken traders associations. For example, KIPOCOSO (Kisutu Poultry Co-operative Society) has constructed facilities for slaughtering and dressing which is charged separately to customers. The

market volume in urban markets is difficult to establish as there are no reliable official records. From interviews of individual traders, the market volume in

Kisutu, the biggest market in Dar es Salaam, can be estimated to about 400,000 to 500,000 chickens only per year8.

According to FAO the average consumption of chicken is about 0.7 kg per capita

per year9 (and 13 eggs) in Tanzania which is relatively low in comparison to other African countries and the rest of the world which consumes about 6.8 kg per capita per year (and 108 eggs). Assuming an average weight of about 1.2 kg per chicken,

the total consumption was about 22 million chickens in 2008, whereby the per capita

consumption of chicken is relatively higher in the rural areas than in the urban centres, particularly in chicken rearing households where the research of RLDC

indicates an average per capita consumption of about 1.6 kg per year.

The latent demand for local chicken in urban centres is high as most people in Tanzania prefer the taste of local chicken over the taste of exotic breeds that are

perceived as rather tasteless due to their rearing method. However local chicken is

the most expensive meat available in urban centres. Although meat prices vary with location and seasons a comparison of prices per kg shows the following picture10: Table 1: Comparison of meat prices

Location Local chicken Per piece

Beef Per kg

Pork Per kg

Goats Per kg

Dar es Salaam 7,000 4,000 5,000 4,000

Mwanza 5,400 3,500 3,000 Not available

Arusha 6,700 4,000 4,000 3,500

Dodoma 6,800 3,600 4,000 3,500 Source: Assessment data compiled by RLDC

In summary, there is a mismatch between demand and supply in the formal markets in urban centres and other urban areas in respect of price and quantity but

also regarding reliability of delivery. One of the causes for the mismatch is the

relatively low production and formal market sales.

8 Tuguni, B. D.Mlay, Local chicken sub sector study in Singida and Dodoma regions, 2006)

9 FAO & AGAL,2005 ; see also higher figures reported in The Guardian of 24 January 2009, page 3

10 Based on various statistics (Newspapers, MITM, 2009)

RLDC


2.2 Poultry Value Chain

The current value chain of the poultry sector indicates that the exotic breeds of chicken are marketed through agents and shops to household consumers,

institutions, high profile and local hotels and restaurants. The exotic breeds are

mainly sold in the urban centres. On the other hand, the local chickens go through a long chain of village markets,

middlemen, ands regional markets until they reach the urban markets. Cost of transport, middlemen, and traders makes the local chicken relatively expensive in the

urban market as mentioned above. Figure I: Poultry Value Chain

Inputs

Production

Processing

Wholesale

Retailing

Commercial Producers

of exotic BreedsSLC Producers in villages

High Profile

Hotels

Local Hotels

and Restaurants

HH consumers

Institutions

Open Village Markets

Regional Market Traders

Urban Market Traders

Urban Shops

Agents

Middlemen

Local Transport

Transport

Consuming

Day Old Chicks Animal FeedsVeterinary

ServiceExtensionService

Source: RLDC

While Commercial Producers of exotic breeds use various inputs, the producers of

scavenging local chickens receive only very limited veterinary and extension services. The SLC producers do normally also not use hatching and animal feeds services like

their commercial counterparts.

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Commercial production of exotic breeds amounts to only about 5% of chicken population but to a much higher percentage of production and sales as exotic breeds are normally ready for sale after 7 to 10 weeks whereas SLC take up to one year

before being sold.

The common means of transport from the village markets to the regional or urban markets is pick ups or Lorries that either originate from within the regions or

are on transit when returning to Dar es Salaam, Arusha, or other urban centres.

Chicken are carried in local cages, known as “tengas” that have an average carrying capacity of 100 chickens per cage. Sometimes regional traders hire a seven tons truck to ferry chicken to urban centres but more often they collude with the drivers

of trucks that return empty to the centres. Generally, transporters have not recognized the transportation of chicken as a business11. Many chickens do not

survive the transport and it is estimated that about 5% of them die. Transport charges to regional or urban centres are quite high, ranging from Tshs 1,500 Tshs to 25,000 per tenga, depending on the distance to be covered Which partly explains

that local chicken are quite expensive in urban markets.

The consumer market of chicken can be segmented into:

• High Profile Hotels: normally prefer exotic breeds as their supply is more reliable and less costly, however some of their customers demand local chicken

• Local Hotels and Restaurants (including bars and pubs and “nyama ya kuchoma” places): buy exotic and local chicken depending on their clientele, however they lament about the supply reliability and high costs of local chicken

• Households and institutions: buy exotic and local breeds of chicken depending on their location. In the more rural areas, they prefer the local

chicken whereas in urban centres they buy both types of chicken. Exotic breeds are normally well-dressed and packaged and sold in urban super

markets. Local chicken are mainly bought in urban markets and not in

supermarkets.

11 Tuguni B, D.Mlay, Local chicken sub sector study in Singida and Dodoma regions, 2006

RLDC


2.3 Market System

The main actors in the market system are illustrated in figure II below

Figure II: Poultry Market System

Source: Adopted from Springfield doughnut

Important services of the poultry market system include:

• SUA and LITI are public institutions that provide research and training to

the poultry sector but hardly directly to the poultry keepers and rather indirectly through other organisations and extension workers

• The Central Veterinary Laboratory is the sole manufacturer and supplier of Newcastle Disease vaccination, commonly known as Temeke 1-2

Thermostable. The vaccine is widely available and distributed through wholesale shops like the Farmers Centre and the District Veterinary Investigation Centres

• There are Vetshops in almost every district. While the supply through

wholesale shops is sufficient to combat any poultry disease (see page 25), the local vetshops do not always stock adequate quantities due to low

demand by poultry keepers

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• There are several manufacturers and suppliers of varies equipments for the chicken sector, i.e. feed mixers, incubators, etc. RLDC maintains a list

of qualified producers

• The public extension services are provided to all livestock keepers in a given area through the public veterinary services. As most poultry diseases can be prevented by vaccinations and other preventive measures,

like proper housing and feeding, these services would be most effective for

the poultry sector if they would carry out vaccinations and train the poultry keepers in preventive measures. Unfortunately this is often not the case which renders the services as rather ineffective for the small poultry keeper in

the rural areas. The main contributing factor is here that the actual number of public extension workers still falls very short of the planned and required

number. Another possible reason for the limited service is the fact that poultry keeping is largely regarded as a subsistence activity.

In respect of rules and regulations that constitute the business environment of the

poultry sector, there is a notable lack of support by public and private organisations.

• There is no specific policy or strategy for the development of the poultry sector. Neither MLD nor MITM seems to regard the poultry sector as very

important for rural development • Although there are regional traders associations in every region and

urban traders associations in all urban centres, they do not cooperate but

rather perceive themselves as advocacy groups for local government or municipalities in their location. There is no umbrella organisation for the entire

sector that focuses on the development of the sector

• The Tanzania Veterinary Association is a member organisation of all vets in the country. For the time being little has been done by this association for

the SLC producers

2.4 SLC in Central Corridor

According to a recent study by the Steadman Group about 60% of the rural

households (or about 1.17 million households) in the Central Corridor keep chicken of which the vast majority (98%) is local breeds12. It has been estimated

that there are about 9.2 million chickens in the Central Corridor13

Comparatively many households in Morogoro and Shinyanga keep chicken whereas only fewer households in Dodoma and Singida14. Based on the average stock of 7.9

chickens per household the chicken population per region is given in table 2 below15.

12

Steadman Group: Crop and Livestock Management in the Central Corridor, 2009 13

NBS: Livestock Summary 2004 14 Steadman Group, 2009, as above

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Table 2: Percentage and number of households raising chicken

Region DOM MOR SHY SIN TAB MAN Total

Chicken 37% 81% 70% 46% 63% 59% 60%

Households 140,000 312,000 312,000 100,000 184,000 118,000 1,166,000

Chicken no. 1,104,600 2,461,680 2,461,680 789,000 1,451,740 931,300 9,200,000 Source: RLDC extrapolation from Steadman group report and NBS data If one takes these figures as a kind of opening stock of the chicken population in a

year, hatched chicks will increase the chicken population on the average to about 50 to 6016. However it has been conservatively estimated that about 60% of the

chickens die, so that the households have effectively about 12 to 16 chickens for consumption and sales if the closing stock of the year corresponds to the opening stock, i.e. no annual growth in chicken population. Furthermore RLDC also found out

in the same FGDs that households consume about 5 to 8 chickens per year, or about

1.2 kg to 2.0 kg per capita which is far much higher than the national average consumption of about 0.7 kg. This practically leaves only about 4 to 11 chickens for

sale or about 7 chickens on average.

Most of the chickens are directly sold by the households to neighbours17 and on the local markets from where chickens are bought by local consumers or are taken to the

regional and urban markets. Table 3 below indicates that indeed the formal SLC

market is relatively small. Based on information from urban traders associations in Dar es Salaam, Arusha, Mwanza, Morogoro and Mbeya we estimate that the formal market of SLC does currently not exceed 3.5 million chickens

Table 3: Estimated chicken sales and consumption in 2008

Region DOM MOR SHY SIN TAB MAN Total

Households sold chicken

25% 63% 44% 25% 41% 33% 40%

Chicken consumed in households

840,000 1,872,000 1,872,000 600,000 1,104,000 708,000 6,996,000

Chicken sold 245,000 1,375,000 961,000 175,000 528,000 272,500 3,556,500

Chicken sold to neighbours

60% 68% 45% 21% 44% 54% 52%

Chicken sold on local markets

40% 30% 45% 79% 44% 31% 42%

Source: RLDC extrapolation from Steadman group report and NBS data

3.0 Constraints and Opportunities

3.1 Production and Market Constraints

15

See also OXFAM, Local chicken for local Market, where Shinyanga was even quoted as the region with the

highest chicken population in Tanzania. However we prefer to base our analysis on the more recent research of

the Steadman Group 16

Refer to RLDC report on Focus Group Discussions with chicken producers, 2009 17 Steadman Group, 2009, as before

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3.1.1 Production Constraints

Traditional chicken rearing faces several production constraints

i. The single most important constraint of local chicken rearing is their high

mortality as result of poor health control, poor housing, and

inadequate feeding. Most chicken diseases can be controlled by vaccination

(e.g. Newcastle disease) or timely administration of drugs. While vaccines and drugs are sufficiently available in the country (see below), the bottleneck is their distribution to the rural areas and professional administration in good

time. Especially the survival rate of chicks is rather low, only 10% to 20%,

however also 20% to 30% of the mature chickens do not survive and sometimes the entire flock is wiped out when disease strikes. Poor housing

makes chicken and more so the small chicks vulnerable to predators on the

ground and from the air. Traditionally SLC roam freely to find their own food; studies have shown that this practice results in many cases in poorly nourished chickens, slow weight increase, and may even cause death,

Particularly mineral deficiencies, the third highest rated cause of death, is the

result of poor feeding

ii. Although local breeds are well adapted to the harsh living conditions of SLC, in

many villages not the most optimal chicken breed is being used. Having better suited breeds the survival rate, the weight gains, the number of eggs,

and the fertility of the chicken stock can be improved.

iii. Because of the high risks associated with chicken rearing, most rural people

do not regard chicken rearing as a serious business. Consequently

chicken keepers do not invest in better chicken housing, improved breeds, vaccinations or drugs, and chicken feeds. This vicious cycle can be illustrated in the causal loop diagram below

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Figure III: Factors affecting chicken rearing

Chicken

Population+ +

Sales of Eggs

Eggs for Sale

and ReproductionChicken for Sale

Average Period of

chicken rearing

Growth

Death

Animal Health

Eggs laid

Chicken Housing

Feeding

Sales of Chicken

Consumption of Chicken

Chicken Breed

Consumption of Eggs

Eggs hatched

- +

Investment

Perception of Business

Opportunity

Explanations of causal loop diagram The causal loop diagram summarizes how factors of chicken rearing influence each other in a systemic

manner. The chicken population per household is in the centre of the causal loop diagram; the average rural

households have a chicken population of about 6 to 10 chickens. Depending on the chicken breed, each hen lays about 15 to 25 eggs per month; most of the eggs are sold within the village and hens are allowed to hatch only about 3 to 4 times which produces about 25

chicks per year and hen; the additional chicken population is therefore in total about 200 chicks; the sales from eggs amount to about Tshs 20,000. The rest is assumed to be consumed by the household.

Chick mortality is quite high and various diseases affect the chicken population so that only about 10% to 20% reach maturity age when they can be sold or consumed; with normally now little

additional chicken feeding it can take more than 12 months until chicken have reached that stage.

About 5 to 8 chickens are consumed by the household, leaving in many cases only about 6 to 10 chickens for sale; based on an average sales price of Tshs 5,000 total sales amount to Tshs 30,000 to

Tshs 50,000. The sales from eggs and chickens is less than Tshs 60,000 and does therefore not perceive chicken rearing as a profitable business for rural households and thus results in relatively low

investment in chicken rearing (better breeds, chicken housing, vaccination and treatment).

3.1.2 Market Constraints

On the market side the main constraints are

i. There is a mismatch between supply and demand which results in relatively high prices as mentioned above. The rising demand in urban centres has not been met by increasing production which has resulted in a rising price

trend over the past six years18. In addition, supply is sometimes not reliable

that is a specific concern for hotels and institutions whose plans are based on regular supply.

ii. There is a lack of concern for health and animal welfare. The chicken transport from the rural areas to urban centres does often lack concern for the

health of the chicken and about 5% of the chicken die while on transport.

18 Refer to SLC prices data from MITM, 2009

RLDC


iii. While there are adequate slaughtering and dressing facilities in some

urban markets, similar facilities are lacking in regional markets which results in

poor hygiene and sanitation.

iv. The SLC are basically marketed as a commodity: packaging is poor, there

is no branding and product diversification (i.e. selling SLC chicken wings or

legs), and there is hardly any market segmentation.

v. The traders associations do not cooperate with each other to optimize

the supply and bring down transaction costs, there is not even information

sharing on supply opportunities. The lack of cooperation results in unreliable supply to urban markets.

vi. There is no umbrella organisation that oversees the development of the

sector, supports cooperation between different market actors and provides

relevant information to various actors

In summary the current sets of production and market constraints are reinforcing each other which is illustrated in the causal loop diagram below

Figure IV: Chicken Productivity and Sales Cycle

Productivity

ProductionVolume

Sales Volume inFormal Markets

Sales Volume inInformal Markets

Sales Price

Sales

Profit in Productionand Trading

Investment

Demand inFormal Markets

The low productivity causes low production volumes which, once the local rural demand in informal markets is satisfied, leave only small sales volumes for the formal

markets. The low sales volumes and the high demand result in relatively high prices but only moderate sales which in turn cause low profits and investments.

3.2 Opportunities

The causal loop diagram in figure III can be also used to highlight the opportunities of the sector. The main opportunities are:

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i. Consumers prefer SLC because they “taste better” and are free from hormones. The toughness can be addressed by a longer preparation period. Moreover, reduced time to reach slaughter weight results in younger and less

tough SLC.

ii. Chicken rearing requires relatively low investment in comparison to other

livestock. Developing the chicken sector therefore benefits relatively poor

households in the rural areas.

iii. There is relatively high number of women engaged in chicken

production and to a lesser degree in chicken trading. It can therefore be

expected that the development of the chicken sector will benefit and empower a large number of women.

iv. The chicken feed is locally available in abundance and at low cost. Even if

chicken keepers provide feed in addition to what the SLC find by themselves

the costs are still quite low.

v. In comparison to other livestock, chicken can be raised in a relatively

short period which allows the households to better plan production.

vi. If productivity could be increased, it would create a win-win situation for chicken keepers and traders because the higher sales volumes will

increase the total sales of traders even if the price would be lower than the

current price. At the same time the higher production volume will increase the income for chicken keepers even if the traders will pay a lower price than the current price (see figure III).

vii. General availability of drugs and vaccines is an opportunity to reduce substantially the mortality rate of chicken if drugs and vaccines distribution and administration can be improved

4.0 Bariadi Model of Chicken Rearing

4.1 Description of the original model

In its first phase, RLDC supported a project on Improved Production and Marketing of Poultry Products. Although the project was conceived as a market linkage project it already had features of the broader sector market development approach of the

second phase. In particular, the project served as a testing and demonstration case in the context of the here proposed SLC Sector Market Development Strategy. The

sector strategy proposed here is to some extent a replication strategy of the positive results of the Bariadi Model. The project was implemented in Bupandagila and Mbiti

in Bariadi district in Shinyanga region.

RLDC


The so-called Bariadi Model goes back to a community based model of poultry rearing that DANIDA introduced in Bangladesh. DANIDA realised that in poultry keeping ‘everyone does everything’ which resulted in relatively low productivity.

As the challenges and opportunities of chicken rearing are very similar in Tanzania

compared with Bangladesh in this respect, RLDC introduced the Bangladesh approach and adapted it to the local situation. In terms of organisational set up, RLDC intended to establish in the two villages a large village group and as well

economic subgroups whereby the members of each subgroup had their specific roles

to play in the context of the larger group: i. Breeders: have a special parent breeding stock of the most suitable local

breed. They sell fertilized eggs.

ii. Hatchers: organise the hatching of fertilized eggs and they sell the day-old-chicks (DOCs). They may use an incubator or traditional hatching methods.

iii. Chick Rearer: keep the DOCs until the chicks are about eight weeks old, provide safe housing, and get the chicks vaccinated.

iv. Poultry Workers: are trained to do vaccinations and give advice in case of

diseases

v. Feed Mixers: grind and mix the chicken feed from locally available feed materials. They invest in a simple grinder and mixer.

vi. Key (Chicken) Rearer: keep chicken from eight weeks until the chickens are

sold after 8 to 10 months. They house the chicken and provide supplement

feeding to the chicken. Chicken Rearers sell the chicken either directly to traders from town or in the local or regional markets.

4.2 Lessons learnt from the implementation in Bariadi

The Bariadi model combined working in a village group with the input of subgroups that specialise on certain tasks of chicken rearing. However the originally

intended subgroups were only partly established. The proposed first three groups were combined in one subgroup in which group members did breeding, hatching, and rearing of chicks as hatching with incubators was not used and it was found that

traditional methods of breeding, hatching and rearing chicks are quite effective if

better housing and animal health care are also considered. The other subgroups were implemented as originally planned, however it was also realised that other subgroups for marketing and financial services might have been very useful. Through

the subgroups a higher degree of skills and investment was achieved from which the

entire group benefited in terms of higher productivity and higher income. The most important aspect of the Bariadi model was therefore the introduction of division of

labour within the community.

The Bariadi model increases substantially income levels of village households (see below) and has therefore a huge potential for poverty reduction. As about

60% of the group members in both villages were women the Bariadi model has also

the potential to create income opportunities for women. The impact on the overall market could not yet be seen as the application in Bariadi was insignificant for the entire market of local chicken.

RLDC


Within the short period of one year, both groups in Bupandagila and Mbiti were able to record remarkable production improvements.

i. Group Formation and Training

Two community groups of 71 member households each had been formed in the two

villages. In addition to the general training of the entire community group, subgroups had been trained for breeding / hatching, chick keeping, administering vaccinations and drugs (poultry workers), and feed mixing. Membership was relatively stable but

decreased to about 50 members in each group.

ii. Growth of Chicken Stock

All group members increased their chicken stock tremendously. Some members increased from 40 to 300 birds, while others have increased from their stock from 3

to 150 birds. On the average, the groups increased their stock from about 600 to

about 2,700 chickens which is an average increase of about 460%

iii. Chicken Mortality

Due to disease control and improved housing the mortality rate of mature chicken is

now only 13.1% which is far much lower than previously experienced when the

entire flock had been wiped out (almost 100%). Until the end of the project, only 79 mature chickens died in both villages. The mortality rate of chicks was 45% in

Bupandagila and about 40% in Mbiti, which is still high, but sufficient for the large

increase of chicken population. The mortality of chicks resulted from Ecto- and Endoparasites that were not diagnosed by veterinary services in good time

iv. Disease Control

Vaccinations were done by Poultry Workers against Newcastle Disease and Fowl Pox.

After advice by the veterinary officers also other diseases (i.e. ecto-parasites, collibacilosis) could be controlled with appropriate measures although not in good time.

v. Chicken Housing

Most chicken rearers have considerably improved the housing and the compound protection of their chicken. The necessary investment has not been supported by the previous RLDC project but was totally made by the chicken keepers after the basic

training course and the construction of a demonstration unit.

vi. Hatching

The original plan of using incubators failed as the electricity supply in both villages did not allow proper operation of incubators and kerosene operated incubators were

not available in good time. Breeders therefore used traditional methods which had

been introduced in the basic training. It was also found that incubators would increase production so much that other factors would become limiting, i.e. housing.

RLDC


Incubators should be therefore only used in a second stage of developing productivity whereby the available energy is a restraining factor.

vii. Chicken Feeding

After the training, the two feed mixer subgroups produced chicken feed from locally

available material by using feed mixers. Unfortunately they could not access grinders as the owners of existing grain mills did not want to use it for the production of chicken feed. Manual grinders are currently not available in Tanzania.

viii. Market Linkage

Although some linkage between traders and the groups were established, no business had been concluded before the end of the project at the end of 2008. The co-facilitator was however optimistic that most chickens would be sold in the open air

village market. The now proposed project will follow up this matter and establish a

better approach of linking producers to traders.

ix. Household Income

As mentioned before, there were only relatively few sales (about 100 chickens)

before December 2008 so only little income has been realised. However the much

higher chicken stock in both villages has the income potential of about Tshs 12.15 million for each village (at a price of Tshs 4,50019) which is about 243,000 per

member on the average. The sale of eggs per member is estimated to be about Tshs

20,000 per year. However some of the members will be able to realise up Tshs 1 million income from the sales of chickens.

x. Gender

Relatively many women are involved in chicken rearing. This is can be attributed to

the fact that chicken rearing is considered a household matter and that chicken rearing can be done with only a relatively low investment in comparison to other livestock. In the case of the Bariadi project, about 60% of the group members were

women.

Finally, another lesson learnt related to the performance of the co-facilitator who did not satisfactorily perform in several aspects. While RLDC will still use at least one

co-facilitator for this project, precise TOR and work plans will be introduced to monitor the performance of the co-facilitator.

4.3 Improvements to the Bariadi model

Building on the lessons learnt and the positive outcomes of the Bariadi model, RLDC envisages to further improve the model particularly in group organisation. Based on

the approach of the award winning model of Commercial Village in Kenya, RLDC

would like to structure the community group and the subgroups as follows:

19 Please note that this is a much lower than the current price of Tshs 6,000.

RLDC


i. The community group is constituted by chicken keepers in a village. Each member must rear chicken from the age of one month until they are ready to be sold. Traders, chicken feed producers, para vets, and any other person are

not allowed to become members of the community group unless they also

keep chicken. In this respect the community group is a producer group.

ii. Each member of the community group must be also a member in any of

the six subgroups which means that each member has at least two roles to

perform in the group. The subgroups focus on the following tasks: ► Breeding and hatching ► Rearing day-old-chicks (DOCs)

► Animal health workers ► Chicken feed producers

► Marketing and promotion ► Saving and lending

The first two subgroups might also be combined into one group depending on

the situation in the village. This will be discussed in the initial training on

group formation. iii. The breeding and hatching subgroup maintains the parent stock of a

suitable local breed and they are also responsible for any cross breeding if

required. Members of this subgroup apply traditional hatching techniques, however if at a later stage market demand requires a higher growth pf

chicken population, the group may decide to invest into incubators. RLDC

continues to collect information on locally available incubators and will make this information available to these subgroups on request.

iv. The rearing of DOCs from one day to the age of about 5 weeks is done by

members of the second subgroup20. During the first five weeks of their lives, DOCs are normally vaccinated against common chicken diseases. The members of the subgroup invest into DOCs vaccination and health care

and special chicken houses that protect the delicate DOCs from predators, weather, and disease. After five weeks, some of the DOCs are then given to

any other member of the community group who will raise the chicken until

they are ready for sale. During that time chicken keepers require the services of two other subgroups, the animal health workers and the chicken feed producers

v. The animal health workers have been trained to administer vaccinations and other drugs. They work in close collaboration with the local veterinary

services and the vet shops. The members of this subgroup invest into drugs

and cooling equipment (for certain drugs)

vi. The chicken feed producers process locally available feed stuffs by ways of

grinding and mixing them. The complementary feeding of chicken reduces the

time until they have reached the target weight for sale. The members of this subgroup invest into manual grinding and mixing machines

20 See explanations above

RLDC


vii. The marketing and promotion subgroup links the entire community group

to traders and organizes local chicken markets in the village. While each

member will be making his or her own sales of chicken and eggs, the

members of this subgroup have a coordinating function only. They mainly invest by meeting expenses for travelling and local markets

viii. The saving and lending subgroup takes the lead in organising and

administering saving and lending in the entire community group. RLDC intends here to adopt the tested VSL model of Care International and introduce it by ways of training. RLDC will not lend on any money to the saving and

lending subgroup. It will be proposed to apply compulsory saving from every external sale of eggs and chicken but it is up to each community group to

agree with the proposal and set the rate of compulsory saving. On proposal of the S&L subgroup, detailed regulations for lending will be worked out and approved by the entire community group. The members of the S&L subgroup

will then be charged with administering the saving and lending regulations.

ix. Each subgroup will elect a chairperson and a deputy chairperson from

among its members. The entire community group will elect as well a

chairperson and a deputy chairperson who should not hold office in any of the

subgroups at the same time. All chairpersons and deputy chairpersons form the Executive Committee (EC) that meets regularly, whenever required.

The EC receives reports and proposals from the subgroups and has overall

decision making power in the community group. In particular, based on proposals by the subgroups, the EC will decide on all transport prices within the community group, such as

► the price of day old chicks

► the price of five week old chicks ► the price for drugs and vaccinations ► the price for chicken feeds

► the fees for participating in joint marketing and promotion ► the regulations and interest rates for loans

The decision on the pricing should be mainly based on costs (including

amortization of investments) and the subgroups therefore should attach cost details with their price proposal

Members of the entire community group and each subgroup will be trained for their

various membership roles in respect of technical and management skills. There will also be written reference material available for the various roles.

4.4 Expected outcomes of the improved Bariadi model

RLDC expects that the introduction of the improved Bariadi model will enable rural households to shift from traditional subsistence chicken rearing to a more business like approach that produces higher income for the producers.

RLDC


Based on the pilot test in Bariadi, RLDC expects that a community group of about 60 households will be able to achieve at least the following results: i. Increase of chicken stock to about 3,600 chicken (from about 60021

chicken) mainly as a result of reducing mortality and using improved breeds

ii Increase annual sales of chicken to about 3,000 chicken (from about 600 chickens) corresponding to a total sales turnover of about Tshs 13,500,000 at a price of Tshs 4,50022 per chicken. This is about Tshs 225,000 per household

on the average. In addition there will be income from the sales of eggs of

about Tshs 20,000, so that total income will be about Tshs 245,000 per household on the average which is about four times more than the previous average income per household

Another important expected outcome of the Bariadi model is the creation of income

opportunities for women. While the traditional chicken rearing offers only limited income opportunities, the Bariadi model offers particularly income opportunities for women, because of

i the relatively low investment required in chicken rearing in general and in any

subgroup in particular ii the establishment of S&L operations from which women are expected to

benefit considerably as they normally have a smaller asset and investment

base than their male colleagues.

We therefore expect that at least 60% of all group members are women. We shall specifically promote the participation of women who are the heads of

households.

5.0 Proposed Strategy for Chicken Sector Development

5.1 Vision for Sector Development

Our vision for the SLC sector has two main aspects:

i. Although most Tanzanian like to eat local chicken, the actual consumption is

only about 0.7 kg poultry meat per capita and therefore very low compared to the world average consumption of 6.8 kg of poultry meat23. Similarly the consumption of 13 eggs per capita is much lower than the world average of

108 eggs. However it has been demonstrated in this paper that the

consumption of chickens and eggs in the rural areas is already much higher. Based on the country actual consumption of 0.7kg of poultry meat per capita per annum, the current urban consumption in Tanzania is estimated at 3.4

million chickens per annum24. Our vision foresees that the urban

21

Figures based on the Bariadi experience 22 Price based on the Bariadi experience 23

FAO & AGAL, 2005 24

According to UNDP 2008, Tanzania urban population is 24.2% of the country total population (40 mill), and

according to Kitalyi and Mayer 1998, the average disposable weight for local chicken is 2kg.

RLDC


consumption will increase by at least 10% per annum if the prices of local chicken will be closer to the prices of exotic broiler chicken (currently at about Tshs 4,000 retail price).

ii. Production of local chicken is currently to a large extent quasi-commercial and our vision is that the sector will become much more commercialised in the next five years. In particular, we anticipate that producers of local chicken

regard chicken keeping much more as a substantial business and not

so much as side-business or even subsistence activity. This will result in much higher productivity which will enable the chicken keepers to sell their chicken at a lower price per unit and still make a much higher income from chicken

rearing.

We believe that the two aspects of our vision are reconcilable, in fact, even complementary. However we also want to point out that some producers who will not commercialise will find it probably difficult to compete in future and may even go

out of market.

5.2 Project Objectives

The project will work at two different levels, the level of productivity improvement and the level of market development and advocacy which will

support each other as described in figure 3:

5.2.1 Productivity Improvement

Within the Central Corridor, RLDC aims at an outreach of 8,100 households in

about 135 villages in 9 districts of 6 regions. The proposed distribution of

households will be as follows

Table 4: Regional focus of strategy Region District Villages HH

Singida • Singida Rural • Manyoni

15 15

900 900

Tabora • Nzega • Igunga

15 15

900 900

Shinyanga25 • Shinyanga Rural • Bariadi

15 15

900 900

Dodoma • Chamwino 15 900

25

As OXFAM also wants to introduce a SLC project in Shinyanga, RLDC will coordinate the selection of

villages with OXFAM in order to avoid having two projects in the same village

RLDC


Morogoro • Mvomero 15 900

Manyara • Babati 15

900

Total 9 135 8,100

The final distribution of households will depend on the response on the

promotion.

As described above in table 4, we anticipate that the 8,100 households will be able to improve their productivity of chicken rearing and increase their chicken

stock to about 50 chickens per household and increase their sales volume (quantity sold in informal and formal markets) to 40 chickens per

household on the average. RLDC will also aim at an overall percentage of at least 60% women

participation in the project. It is also expected that this proportion is also

reflected in the management of groups and subgroups.

5.2.2 Market Development and Advocacy

The current market volume of the formal market is relatively small. RLDC therefore aims at increasing the market volume by at least 360,000 chickens. This will be achieved through establishment of active national chicken

producers and traders association, awareness creation to traders, especially on

the issues related to transport, slaughtering, packaging, and marketing of chickens, as well as forging a strong relationship and cooperation between RLDC, producers and traders association and other development partners who works in

the subsector.

Furthermore RDLC intend to improve cooperation between trader associations and producer groups and between regional and urban trader associations which is expected to result in more reliable supply of SLC.

Lastly RLDC aims at establishing, in cooperation with other partners, a national

chicken producers and traders association with a view to oversee development in the sector and act as an umbrella organisation for advocacy.

The proposed interventions aim at commercialization of chicken production

and marketing in the Central Corridor. The higher productivity and improved standards of chicken rearing will result in a more reliable supply of high quality local chicken to the various markets.

5.3 Proposed Interventions

5.3.1 Productivity Improvement

The aspect of productivity improvement has the characteristics of a replication

project of the Bariadi model to other villages and communities.

RLDC


The replication is planned to be accomplished in two phases which are described below:

5.3.1.1 First Phase The first phase of replicating the (improved) Bariadi model aims at creating

awareness of improved commercial chicken rearing and raising the interest

of traders and communities for replication. Main activities of this phase include i. Identification of a qualified co-facilitator who can also maintain a (at least

part time) presence in all six regions. The role of the co-facilitator will be to plan and coordinate the information campaign and later oversee training and

support interventions and also monitor the progress in each participating village. The co-facilitator shall hold at least one meeting each month with RLDC for updates and planning.

ii. Experience capitalisation and additional testing of the model in Bariadi. At the end of the initial project in Bariadi, documentation of our experiences needs to be updated and completed to establish a sufficient information basis

for replication. This includes an updated project report for publication but also

training and operational manuals and a video. The recent preparation of a case study of the Bariadi project has been a first step in this direction. In

addition, RLDC would like the views of Bariadi chicken keepers on the

improvements of the Bariadi model.

iii. Preparation of two publications (in English and Swahili) on the improved

commercial local chicken rearing based on the lessons learnt of the

Bariadi model. The publications should also contain good photographs and graphics. The publications will be short versions of a manual for the different tasks of chicken rearing.

iv. Preparation of promotion material that can be used in a promotion

campaign for communities, including presentations, information leaflets, video,

etc.

v. Planning of a district-by-district promotion campaign that explains the

improved commercial local chicken rearing and the support offered

by RLDC to communities and traders. In each district, RLDC through the co-facilitator shall plan for a one-day workshop with the support of relevant

district officers (Livestock Officer, Veterinary Officer) for selected village

representatives, owners of vet shops, representatives of traders groups and associations, and extension workers. It is planned to start the campaign for only one region at first and plan the campaign for the other five regions for

about four months later.

vi. Implementation of the district-by-district promotion campaign that aims

at creating awareness and raising interest of various parties. The campaign

RLDC


shall be organised in such a way that the radio program of RFA shall support the campaign by also focusing at least one radio program on improved commercial local chicken rearing and reporting in subsequent programs where

the campaign has reached. As mentioned above under v. the information

campaign will be carried out in one region at first and in the other four regions four months later.

vii. Follow up of the promotion campaign with a view to identify the villages

and communities where RLDC support measures are likely to be introduced. The identification will be based on the clear expression of interest by the communities to participate in the replication, the expressed willingness to

contribute in kind and in cash to the required investments and expenses that are not covered by RLDC. Another important selection criterion will be the

proposed participation of women in the community groups and subgroups. 5.3.1.2 Second Phase

The second phase of this replication project focuses on the intervention on the actual introduction of improved commercial local chicken rearing with a view to attain high sustainability in respect of key aspects.

The second phase begins with organising the basic training on improved commercial local chicken rearing for communities. Due to the high number of

communities, the cost effective organisation of the training will be done in three

steps:

i. Identification of at least one suitable training provider in each of the six

regions. They are expected to have some knowledge in livestock or chicken

rearing and some experience in working with village groups. The training providers should ideally come from the private sector

ii. A qualified training organisation (SUA, LITI) will train the training providers in a five days TOT course. The TOT will cover formation of economic groups,

aspects of improved commercial local chicken rearing (assuming that the

participants have already basic knowledge) and development of trainer skills (i.e. appropriate methods and techniques). A training manual and other support material will be given to each trained training provider for facilitation

of later application

A specialized training provider shall train the trainers in the establishment and operation of Saving and Lending within the

community group which will be based on the successfully tested model of Care

Tanzania.

iii. Training providers train the selected communities on site of the village in

a basic course of three days. The training content shall address

¬ Formation of community group

¬ Role and formation of subgroups (except S&L subgroup) ¬ Basic introduction of chicken rearing

RLDC


¬ Improved chicken husbandry methods incl. housing ¬ Selection of appropriate chicken breed

¬ Breeding and hatching

¬ Disease control and vaccination

¬ Chicken feeding

The basic community course will at first be carried out in one region only. After about four months basic courses will be conducted in the remaining

four regions simultaneously. The training will also be attended by extension workers who are expected to later carry out regular follow up and supervision visits to the

communities. Information material will be made available to the villagers by

RLDC through the co-facilitator and the training providers

iv. In addition training providers train members of subgroups in specialized

technical areas in short courses of one day each. These training courses may

be on site but also combine subgroups of different community groups for higher training efficiency. These training courses will be conducted within a period of about three weeks after the basic community course. The training

content shall include

¬ Traditional hatching methods

¬ Construction of chicken houses

¬ Administration of vaccines

¬ Symptoms of various chicken diseases

¬ Preparation of chicken feed ¬ Marketing of chicken

¬ Saving and lending operations 5.3.1.3 Specialized Interventions

In addition to the training, specialized interventions will focus on:

i. Reducing chicken mortality through vaccination and better vet

services

The high chicken mortality as result of uncontrolled diseases is the biggest constraint

to commercial production and therefore RLDC puts highest priority on improved disease control. Diseases of chicken can be largely controlled though vaccination and treatment with the following drugs:

Table 5: Table 5: Diseases and drugs availability Disease Drug Suppliers Channel Availability Resources

Newcastle

disease

Temeke 1-2

thermostable

CVL

VICs

Vet shops available Extension

Officers and Vet

shop technicians

Endoparasites Piperaxine

Albendazol

Farmers Centre Vet shops available Extension

Officers and Vet

shop technicians

Ectoparasites Akheri powder

Sevin dust


Officers and Vet

RLDC


shop technicians

Mineral

deficiency

Vitalyte

Neoxyvital

Vitastress

OTC plus

Stress Vita


Officers and Vet

shop technicians

Fowl Typhoid Trisumycine Farmers Centre Vet shops available Extension

Officers and Vet

shop technicians

Fowl Cholera

Bursa disease

Endofloxacin

Ampiclox

OTC plus

Gumbole

vaccine


Officers and Vet

shop technicians

Cocdiosis Amprolium

Tyrophoprium


Officers and Vet

shop technicians

Salmonellosis Doxycol

Oxytetracycline


Officers and Vet

shop technicians

Fowl Pox Fowl Pox

vaccine


Officers and Vet

shop technicians Source: RLDC assessment collection from vet shops

The access to required drugs must be accompanied by increased capacity for drug application. Following the successful approach of the Bariadi Model, RLDC intends to

address capacity building on two levels:

► As part of the above-described TOT, emphasis will be on disease

control and vaccination and the members of the subgroup ‘Health

Workers’ will be trained to identify various chicken diseases and administer

the relevant drugs or vaccinations. They will also be instructed to immediately seek the advice of vets in case of unknown health problems

► At least one selected vet shop owner in each district will be sensitised on the importance of stocking more drugs specific for chicken

diseases and the importance of providing advisory services to chicken

keepers on the best application of the drugs. The training will ideally be conducted in cooperation with drug suppliers and the Tanzania Veterinary

Association. The Training should also be attended by Veterinary Officers

who want to upgrade their knowledge

ii. Improving market linkage between village groups and traders

RLDC through the co-facilitator shall facilitate market development with the following activities:

► Organize workshops / meetings between the regional and city trader associations (Dar es Salaam, Mwanza, Arusha, Mbeya, etc.) and

representatives of the chicken producer community groups with a view to discuss market linkage cooperation between them. The different

cooperation options may range from direct contract to participation in local

RLDC


markets. In any case, it is important to achieve a better information flow between the community groups and the trader associations. While the importance of transport is recognized, we do not anticipate that the

project could have any influence on the transport costs. However in the

workshops / meetings the safer transport of chickens shall be discussed. ► Collect and provide information on chicken production and sales to

the media. Most of the information will be regularly collected by the co-

facilitator as part of monitoring. In particular, it is hoped that RFA will regularly broadcast these information. However the information will also be made available to other media if they make good use of the information.

The information will also be made available to MITM

► Training the chicken keepers in costing and pricing (Bulk selling) with a view to make them aware that a small price reduction per chicken may still result in a higher income per chicken keeper

iii. Reducing losses of chicken through better housing and protection Chicken losses are also due to predators on the ground and from the air. Better

chicken housing and protection in fenced compounds with wire mesh protection from

air attacks reduce such losses greatly, particularly losses of small chicken. The importance of better housing and protection will be addressed in the basic training

course of each community group. In addition, RLDC through the co-facilitator will

facilitate the communities in

► Setting up demonstration chicken house and compound protection

in each village. The construction of the chicken house shall be overseen by

the extension worker. RLDC shall facilitate only parts of the building materials while chicken keeper(s) contribute the rest, including labour

iv. Improving weight of chicken through supplementary feeding

If chicken are only freely scavenging, they gain weight at a rather low pace. In order

to be able to sell the local chicken after about 8 to 10 months, it is therefore necessary that chicken keepers provide supplement feed. This is also an opportunity to provide the chicken with additional minerals and other supplements if required.

The training on feeding has already been part of the basic training. Additional

activities related to this intervention include ► Additional advice on optimal feed mix, provided by co-facilitator

► Providing contact information on suppliers of chicken feed

► Providing contact information on manufacturers / suppliers of feed grinding machines (manual and motor driven) and of feed mixers

In case, local manufacturers do not make suitable grinding and mixing machines,

RLDC may organise a training course for the local manufacturers with a view to

introduce appropriate machines.

RLDC


v. Increasing productivity through the use of incubators Traditional hatching techniques are quite adequate during the introduction of

improved commercial local chicken rearing, however if demand justifies it might be

necessary to introduce the use of incubators that can hatch 400 to 1,500 eggs in 21 days. Incubators are available in Tanzania from various suppliers using different forms of energy (electricity, kerosene, solar). The activities related to this

intervention are

► Providing contact information of suppliers of incubators vi. Improving quality of chicken by introducing more preferred local

breeds

There are several breeds of local chicken that have different characteristics and attributes. Important factors in selecting the best local breed are the pace of gaining weight, the number of eggs produced, and the vulnerability to diseases and other

conditions. During the basic training, communities will be briefed on the different

breeds and they will then make a decision on what breed they prefer. In case, some communities later want to change to another breed, RLDC through the co-facilitator will facilitate an initial parent stock.

5.3.2 Market Development and Advocacy

In respect of market development, RLDC intends to carry out the following interventions:

i. As mentioned above already, RLDC shall organise workshops for traders

from regional and urban trader associations, where options for better cooperation between them will be introduced and discussed. The options may range from contracting to sharing of information

ii. Organising topical workshops for traders of interested regional and urban traders associations on technical issues like

¬ Improvement of transport facilities and arrangements

¬ Slaughtering, dressing, and packaging of chickens ¬ Marketing of chickens

iii. Promoting the establishment of a national chicken producers and traders

association that will oversee the promotion of local chicken production and marketing in Tanzania. Among other tasks the association is expected to: ► Become the main advocacy group that addresses for example issues of

drugs distribution, slaughter facilities, veterinary services, etc.

► Link chicken producers and traders by giving relevant market information on prices, quantities, and quality

► Establish an information centre for chicken rearers, traders, consumers,

and other interested parties. The centre is envisaged as a lean organisation

RLDC


that coordinates the collection of relevant information and makes it available to information seekers for free or for a small fee

► Providing market statistics that enable market actors and government

to better plan for taking future market opportunities and developing the

market The establishment of a national chicken producers and traders association will be

done in cooperation with other development partners (i.e. OXFAM, FIDE, SNV)

who have already expressed interest in collaboration with RLDC in respect of the development of the chicken sector. In addition to their activities in Shinyanga, OXFAM have showed interest in collaborating in establishing an information centre

for chicken rearers, traders, consumers and other interested parties. They also intend to carry out a study on marketing (including transportation) of chicken. FIDE will be

involved in both establishment of national chicken producers and traders association and information sharing as they have been doing the same thing RLDC is doing in Manyara region. SNV will be involved in sharing information such as lessons leant

from Bariadi model and study reports as well as discussing the possibilities of

partnering in other interventions like establishment of information centre and national chicken producers and traders association.

The collaboration will also include:

• Organize a workshop with development partners with a view to start

sharing information and agree on a general development strategy for the sector including required support

• Sharing of information, such as lessons learnt and study reports among development partners which is expected to contribute to a better general

understanding and effectiveness as well as efficiency of the various programs of the development partners

It is anticipated that RLDC will enter into MOU’s with development partners that will also address the cost-sharing of joint activities, such as the establishment of the

national association.

6.0 Risk Analysis

There are several risks that might jeopardize the achievements of the project

objectives:

• The replication of the Bariadi model bears the risk of scale as relatively many communities or relatively few communities may respond positively to the

information campaign. In both cases the implementation strategy has to be adapted to the situation. In case of high response additional selection criteria

have to be introduced and in case of low response additional promotion measures may have to be considered

RLDC


• The replication to a large number of communities bears the risk that some communities might fail (i.e. outbreak of uncontrolled disease) affecting the

confidence of the other communities. This risk of decreasing confidence

may be mitigated through close monitoring and control of the implementation in the villages so that potential failures can be detected early and corrective

measures can be taken in time

• The increase of market volumes bears the risk that some regional or urban

markets do not have the facilities to cope with the larger volumes. RLDC shall monitor the situation in the markets and identify additional measures to mitigate against this risk of volumes. A similar risk might develop in respect

of transport facilities.

• The project is expected to be implemented within 18 months that is a relatively short period considering that it involves a change of attitude of

producers and traders. This risk of speed shall be mitigated by close

monitoring and corrective measures if necessary.

7.0 Implementation Partners In implementing the project RLDC intends to work with several implementing

partners:

7.1 Co-facilitator and Training Providers

RLDC will tender out the position of one or two qualified co-facilitators. In any case the co-facilitator is supposed to maintain a presence in the respective regions

In collaboration with the co-facilitator(s) RLDC shall seek regional training providers through open tender or on invitation tender. Ideally RDLC wants to have

at least one training provider per region.

For the positions of co-facilitator and training provider detailed TOR will be worked out. Training will be conducted on the basis of manuals produced in the initial TOT

course conducted by SUA / LITI and a specialised training provider for the

introduction of saving and lending.

7.2 Development Partners

As mentioned above, RLDC has indications that FIDE is interested in replicating the Bariadi model. In further discussions we shall establish the exact modus of

replication.

RLDC


OXFAM seems to favour an individual model of poultry keeping and does not intend to use a group approach26. They argue that there are some bad experiences in

Shinyanga with group projects. To our knowledge these projects did not use at all

best practice of group projects and we strongly believe that the improved Bariadi model that combines best international practice is a more powerful model to uplift local chicken rearing to a business like level.

SNV has been working on the livestock sector in the central corridor for some time now. They have shown interest in bringing different actors in the sector to work together. We are optimistic that the information centre idea will also be of interest to

them. RLDC is planning to invite SNV in the partners’ forum.

26 However they also acknowledge the need for creating a selling power by grouping poultry keepers

RLDC


8.0 Bibliography

Buza J.J and Mwamuhehe H.A, (2001) Country Report Tanzania, Characteristics and

features of different breeds of chicken in Tanzania

FAO & AGAL (2005) Livestock Sector Brief: United Republic of Tanzania, FAO, Rome. Kitalyi J.A and Mayer. A (1998) Village chicken production systems in rural Africa

household food security and gender issues, FAO Animal Production and Health Paper 142.

Minga U.M, Mtambo M.M, Katule A.M, Mutayoba S.K, Mwalusanya N.A, Lawrence P,

Ndegele R.H and Olsen J.E, (1989) Improving the health and Productivity of the Rural Chicken in Africa, Research and Development Efforts in Tanzania.

MITM (2009), Livestock products prices for 2002-2009, Marketing Department, MITM, Dar es Salaam.

NBS (2004), Livestock summary 2003/04, NBS, Dar es Salaam. NBS (2008), The Economic Survey 2007, The Ministry of Finance and Economic Affairs, Dar es salaam, Tanzania 2008

Oxfam (2008), Local Chicken for Local Market Subsector and Value Chain Analysis Final Report, Shinyanga, Tanzania

Pedersen.G, Permin.A, and Minga.U.M (2000) Possibilities for Smallholder Poultry Projects In Eastern and Southern Africa, Workshop Proceedings, Morogoro Tanzania

RLDC (2009), Focus Group Discussion (FGDs) Report: FGDs carried out by the RLDC livestock sector team in Chamwino and Bahi, Dodoma Tanzania, March 2009.

RLDC (2008), Workshop report with local chicken traders, Rural Livelihood Development Company, Dodoma October2008

Steadman Group (2009) Crop & Livestock Management Central Corridor of Tanzania, Baseline Survey Draft Report, March 2009.

The Guardian (2009) The Tanzanian Daily News paper

Tibamanya Y.E.K (1994), The alternative approach to improve the productivity of indigenous chicken, Proceedings of the refresher course on appropriate Technology on small livestock husbandry

Tuguni B and Mlay D (2006) Local Chicken subsector Study in Singida and Dodoma

regions, Dodoma, Tanzania.

RLDC


UNDP (2008), Human Development Report 2007/2008: Population, Urban (% of total population): Accessed on 18/06/2009 from www.hdrstats.undp.org/en/indicators/42.html.

RLDC


9.0 Annexes

9.1 Project Budget

Amounts in 1,000 Tshs July to December 2009 January to December 2010 Total

Activity Price Unit Qty Qty Costs RLDC Partner Qty Costs RLDC Partner RLDC Partner

Co-facilitator

Fees 200 mandays 400 180 36,000 36,000 220 44,000 44,000 80,000 0

Per Diem 50 mandays 400 180 9,000 9,000 220 11,000 11,000 20,000 0

Other costs, i.e. transport 2 km 21,000 12,000 24,000 24,000 9,000 18,000 18,000 42,000 0

Subtotal 0 69,000 69,000 0 73,000 73,000 0 142,000 0

I. Creating awareness and raising interest

Capitalization of Bariadi Model 20 publications 1,000 800 16,000 16,000 200 4,000 4,000 20,000 0

Preparation of Promotion Materials 0.4 leaflets 12,000 10,000 4,000 4,000 2,000 800 800 4,800 0

Planning of information Campaign 1,000 lumpsum 1 1 1,000 1,000 2000 2000 2,000 3,000 0

Implementation of Information Campaign 2500 districts 9 1 2,500 2,500 8 20,000 20,000 22,500 0

Identification of the villages/communities ready to work

with 200 districts 9 1 200 200 8 1,600 1,600 1,800 0

Subtotal 23,700 23,700 28,400 28,400 52,100 0

II. Productivity improvement

TOT course for training providers 10,000 course 1 1 10,000 10,000 10,000 0

Basic Community courses for communities 1000 course 135 1 1000 500 500 134 134,000 67,000 67,000 67,500 67,500

Continuous Extension Service 20 mandays 1,500 300 6,000 4,000 2,000 1,200 24,000 14,000 10,000 18,000 12,000

Training of Vet Shop owners 5,000 course 1 1 5,000 2,000 3,000 2,000 3,000

Technical Training of Subgroups 200 course 68 1 200 100 100 67 13,400 8,100 5,300 8,200 5,400

Workshops with Traders 1,500 workshops 10 5 7,500 7,500 5 7,500 7,500 15,000 0

Demonstration chicken houses / compounds 200 houses 135 1 200 100 100 134 26,800 13,400 13,400 13500 13,500

Feeding and incubator support (information measures) 1,000 lumpsum 1 1 1,000 1,000 1,000 0

Subtotal 24,900 22,200 2,700 211,700 113,000 98,700 135,200 101,400

III. Market development and advocacy

Topical workshop for interested traders 3,000 lumpsum 1 3,000 3,000 1,500 1,500 1,500 1,500

Establishment of national producers and traders associations 30,000 lumpsum 1 1 30,000 10,000 20,000 10,000 20,000

Operations of association 15,000 lumpsum 1 1 15,000 5,000 10,000 5,000 10,000

RLDC


Development partners workshop 2,000 lumpsum 1 1 2,000 1,000 1,000 1,000 1,000

Subtotal 32,000 11,000 21,000 18,000 6,500 11,500 17,500 32,500

Grand Total 149,600 125,900 23,700 331,100 220,900 110,200 346,800 133,900

RLDC


9.2 Implementation Schedule

Project Activities 2009 2010

7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Tender and contract of core facilitator

I. Creating awareness, raising interest for replication

Documentation and publication of the Bariadi model

Preparation of the publications

Preparation of promotional materials

Planning district by district information campaign

Implementation of the information campaign

Identifying villages and communities ready to work with

II. Productivity Improvement

Identification of suitable training providers

TOT for training providers

Basic training course for communities

Technical trainings for poultry sub groups

Training vet shop owners

Workshops with traders

Demonstration chicken houses and compounds

Feeding and incubator support (information)

III. Market Development and advocacy

Topical workshop for interested traders

Establishment of national producers and traders associations

Operations of Association

Development partners workshop

Monitoring

IV. Evaluations

Evaluation after facilitation in pilot region

Evaluation after facilitation to all regions

RLDC


NB: The whole exercise will be rolled out in one region as a pilot then the following regions will

follow

RLDC


9.3 Causal Model

Activities Outputs MARKET SYSTEM OUTCOMES Impact

Intermediate

outcomes

Enterprises outcome Sector outcome

⇒ Tendering and contracting of co-facilitator

⇒ Identification of the training providers

⇒ Creating awareness and raising interest for replication.

• Documentation and publication of the Bariadi Model.

• Preparation and publication of promotional materials.

• Planning information campaign.

• Implementation of

information campaign.

• Identification of villages and communities to work with.

• One co-facilitator contracted by October 09

• At least six training

providers identified by July 09

• Bariadi model document and 2 publication of the model (Swahili and English),by Oct,09

• Promotional materials (12,000 leaflets,1 presentation document)

by Oct.09

• Information campaign plan by Oct.09 and Feb 10.

• Information campaign conducted in 1 district by Sept, 09. and 8 district by May 10

• 15 villages identified in 1 district by Sept 09 and 120 villages by June 10

Number farmers

(men/women) interested in adopting Bariadi model in districts/village in the 6

regions.

• Meeting and events

report.

• Co- Facilitator report

Increased usage of veterinary service by farmers in the villages

Reduced age for chicken slaughter from 12months to 8months.

Number of farmer groups formed in villages to

participate in improved chicken rearing.

Number farmers

Increased availability of vet drugs to farmers. Increase business volume to vet shop owners. More producers and traders engaged in formal marketing and sells

Increased chicken population to average 50

chickens per HH.

Increased sales of SLC

Increased sales of eggs

Increases sales of drugs and vaccines

Increase value of savings

at VSLs

Number of loans and

Number of sub groups

functioning according to their technical roles

Decreased SLC prices in

Urban centres.

Increase sales of SLC in

urban centres.

Increased SLC consumption in urban centre by 10% per annum.

Traders and farmers

association formed.

Increased sales of SLC in local markets

Increased level of chicken consumption among rural HH

Increase level of eggs

Increased income

for rural farmers from poultry activities.

Improve HH welfare in 150 villages through poultry activities

RLDC


⇒ Productivity improvement.

• Sourcing of training service providers.

• Conduct TOT for training service providers.

• Conduct basic training course for communities.

• Conduct technical

training for poultry subgroups.

• Conduct training to vet shop owners in district.

• Conduct 10 workshops with traders.

• Constructing chicken houses and compounds in each village.

• Provide information on feed material and incubator to

community groups.

⇒ Market Development Advocacy

• Conduct topical workshop for interested traders.

• Establish a national chicken producers and

• One (1) TOT conducted

by Oct 09 and 5 by April

10.

• 15 basic trainings to

communities by Dec 09

and 120 by Nov 10

• 7 technical trainings to

poultry sub groups by

Jan 10 and 60 July, 10.

• One (1) vet shop owners

training by April, 10.

• 5 traders workshops by

Dec. 09 and 5 by Oct 10

• 15 demonstration chicken

houses in villages by Jan,

10 and 120 by Nov 10

• Number of farmers

showing interest to use

improved feed materials

and incubators.

• Information on feed

material and incubator

disseminated to

community groups by

Dec. 10.

• One topical trader’s

workshop by Jan.10. and

one by Oct 10

(men/women) adopting

improved commercial chicken rearing in villages in six regions.

Number of improved chicken house and compounds in villages.

Interests shown by traders

association to form linkages with producer groups.

Number farmers using improved feed materials and incubator in the villages.

Number of Linkages formed by traders and farmers

Information on production,

markets available and used

Decreased transport cost

Decreased chicken mortality during transport

Increased number of chicken raised in better

hygienic conditions

value of loans at VSLs

Increased number of birds per HH

consumption among

rural HH

Increased sales of improved local breeds

Number of functioning/sustainable

community groups

Increased number of HH selling SLC

Increased sales of SLC in a groceries, markets,

restaurants, hostels, e.t.c

RLDC


traders association

• Conduct one workshop with development partners

• Establishment of Information centre

• One partners workshop

by Dec 09

• Trader and producer

groups association by

Dec 10

• Information centre

formed by Dec 10

Increased number of chicken raised in housing

Decreased mortality among chicks and mature chicken

Increased number of chicken transported under

agreement with transporters

Increase use of high quality food

Number of community groups formed and the number of people participating

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