Spices Sub Sector Strategy Tanzania - ITC Roadmap _final.pdf · Republic of Tanzania ... project...

TRADE IMPACTFOR GOOD

TANZANIA

SPICES SUB SECTOR STRATEGY

DECEMBER 2014

The designations employed and the presentation of material in this document do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

This document has not formally been edited by the International Trade Centre.

TANZANIA

SPICES SUB SECTOR STRATEGY

Prepared for International Trade Centre, Geneva

December, 2014

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This value chain roadmap was developed on the basis of technical assistance of the International Trade Centre ( ITC ). Views expressed herein are those of consultants and do not necessarily coincide with those of ITC, UN or WTO. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited my ITC.

The International Trade Centre ( ITC ) is the joint agency of the World Trade Organisation and the United Nations.

Digital images on cover : © shutterstock

Street address : ITC, 54-56, rue de Montbrillant, 1202 Geneva, SwitzerlandPostal address : ITC Palais des Nations 1211 Geneva, SwitzerlandTelephone : + 41- 22 730 0111Postal address : ITC, Palais des Nations, 1211 Geneva, SwitzerlandEmail : [email protected] : http :// www.intracen.org

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ACKNOWLEDGEMENT AND DISCLAIMER

The consultants thank very much ITC for awarding them the assignment of reviewing Production, value and market chains of spices in the URT. Spices enhance the enjoy-ment of our meals and drinks and aromatise pharmaceuticals and perfumes. A relatively huge number of farmers, traders, consumers and other stake holders enjoy enormous benefits derived from the sub-sector. Thus the economic and social importance of the sub sector industry needs no further emphasis. The Consultants acknowledge the sup-port received from SIDO and TanTrade, the contributions of DAICOs of Same, Muheza, Mkinga, Morogoro Rural, Singida Rural, Mvomero and other districts that are involved in spice crops production. Research Officers from the Uyole Agricultural Centre and the Maruku Agricultural Institute and a number of Agricultural Ward Extension Officers ( WEO ) were consulted online during the course of this work and hence the consultants are quiet indebted to them. The contents of this report are based on review of earlier reports as cited and the experience of the consultants as well as that of Dr. Elias R. Mgembe of the Horticulture Unit, Sokoine University of Agriculture.

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EXECUTIVE SUMMARY

( i ) Introduction and background

The International Trade Centre ( ITC ) through the Promoting Intra-regional Trade in Eastern Africa Project, funded by the Government of Finland, is working In the United Republic of Tanzania ( URT ), to promote participation of Small and Medium Enterprises ( SMEs ) in selected agri-food sectors in regional and global value chains. Under this project ITC is assisting local partner in reviewing existing value chain strategies of honey, spices and mango and their implementation. This report is a review of the Spices sector for which the main ITC partners in Tanzania is the Small-scale Industries Development Organisation ( SIDO ). The work was conducted through desk studies, field visits and a stakeholder workshop in November 2014. It consists of an inventory of the spice crops produced in the URT ; mapping of the production areas ; overview of the production systems, levels and seasonality ; postharvest and processing ; marketing and export trade. At each level issues and constraints influencing performance of the sector are presented, leading to description of a Road Map for development of the sector as validated at the aforementioned stakeholder workshop.

( ii ) Description of spices production

At the global level, production of spices is estimated to be 6,000,000 tons of which more than 2 / 3 is consumed at origin ( captive use ). Between 1995 and 1999, Tanzania ranked third by exporting 5 % of LDCs’ total spice exports. During that period, spice crops marketing and export was conducted by the General Agricultural Foods Exporting Company ( GAPEX ). Since 2000s, after the company wasdissolved, Tanzania’s share in the global spice trade was only 0.36 % and it is estimated to have dropped further.

A wide range of spice crops are cultivated in URT due to the existence of favourable climate and soil conditions. The most important spice crops produced for the local and export markets are clove, pepper, chillies, cinnamon, cardamom, ginger, corian-der, vanilla, garlic, lemongrass and red onions. In mainland Tanzania ; Clove, pepper, cardamom and cinnamon are mainly produced in the Tanga, Morogoro and Mbeya regions. Zanzibar and Pemba are the main areas for the production of clove. Ginger is grown in Kilimanjaro, Kigoma, Ruvuma, Morogoro, Kagera and Mbeya regions. Vanilla is produced mainly in Kagera and Kilimanjaro regions and to some extent in Morogoro region. Chillies including paprika are important in Iringa, Mbeya, Arusha, Tanga, Coast, Morogoro regions and Zanzibar. Coriander is almost entirely produced in Singida region in the semi-arid central Tanzania. The major spice growing areas are found in the chain of isolated mountains called the Eastern Arc. The mountains confer highlands and lowland areas which are characterized by distinct local microclimates of cool humid climate and existence of natural forests.

The spices are produced by smallholders. Cardamom is grown in forests as it requires a shady environment. Partial clearing of forest vegetation is conducted for planting and as management practice. Purposeful establishment of plantations is a recent phenomenon. In Pemba and Zanzibar clove is grown in well-established plantations but isolated trees are also found. Growing of the crop is developing at a small scale in the mainland. Cinnamon production in Tanga region and Zanzibar Islands is largely under mixed cropping systems. In Morogoro both mixed systems and medium scale plantations exist. Isolated plants which consist of big trees aged above six years are predominant and are the sources of the product traded in the form of large / thick chips. The recently established plantations are potential sources of standard quills. Pepper is relatively better grown in conventional production units but there are a lot of isolated plants trained on large trees. Vanilla is entirely produced under conventional planta-tions intercropped with banana and or coffee. Ginger is cultivated in monoculture under rain fed conditions preferably in wet and valley areas. In Same district, irrigation is practiced and production is throughout the year. Lemongrass and chillies are grown in a monoculture rain fed and irrigated conditions, mostly by the medium scale spice

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growers for the former. Coriander is grown in monoculture under rain fed, competing for land with chick pea ( Cicer arietinum ).

Most spice crops in the URT are grown without application of recommended agronomic practices. Both organic and industrial fertilizers are rarely used. Pesticides are not used either. This warrants a general suggestion that most spices in the URT are grown or-ganically by default. The few existing medium scale farms produce, process and export certified organic spices targeting the European and American markets.

( iii ) Production levels and harvesting seasonality

There are no reliable data on the quantities of spices produced in the URT. This is largely due to the absence of official authority for the coordination of the production and marketing of spice crops. Available data is a result of segmented information col-lected from different places at different levels. The production is characterized by low volumes, which are hardly sufficient to match local demand. Thus local prices often exceed export prices. The harvesting seasons is spread over the year with variations based on environmental conditions, as smallholders grow a wide variety of spice crops.

Production constraints include poor agronomic practices and deficient post-harvest treatment. Neither soil fertility improvement nor soil conservation or irrigation and drain-age practices are employed while no proper spacing is observed. Practices such as pruning and training, thinning and trashing are missing. The current trend is to prohibit cultivation in the natural forests as it is considered as threatening to the endemic spe-cies. The traditional production systems have not improved over time due to lack of specialized extension services.

( iv ) Harvesting and Value addition

Individual small scale farmers are responsible for organizing harvesting of their crops. A few farmers associations exist which are aimed at assisting members in establish-ing collecting, processing and selling centres. Medium scale farmers have their own collecting and processing centres. These do therefore undertake the harvesting and processing activities in more elaborately organized manner. For some spice crops harvesting is organized by middleman traders who buy crops in advance. Harvesting of Cinnamon is by cutting or chipping tree stems into chips of varying sizes depending on the size of the tree. Stripping and rolling barks into quills is not a familiar practice. Cardamom is harvested by stripping whole plant panicles, a practice that compromises produce quality. Drying by flue curing to produce green cardamom is not practiced.Small scale farmers often harvest pepper before maturity. Only black pepper is pro-duced. Harvesting and packaging of Clove in Zanzibar, under the Zanzibar State Trading Corporation ( ZSTC ) is better organized.

Drying is commonly done at the farm in the sun. Hardly any value adding in the form of grading, cleaning or packaging is done. Other important processes include grinding for the purpose of blending or production of masalas and curries. Drying is often conducted under unclean environments, such as spreading the spices on the bare ground, floor or mats. Since the process is conducted under the open sun in the homestead, contamina-tion due to dust and livestock is possible. Ordinary milling machines ( not stainless steel ) are used. Sometimes milling houses are also used as storage. Farmers / traders exporting to Europe and America have special dedicated equipment.

( v ) Value Chain Dynamics and Challenges

The majority of spices producers are small scale farmers in rural areas. They are con-sidered to be growing spices organically by default. The recent need for certification of organically produced products has led to the categorization between organic and conventional spice farmers. Small scale farmers certified to grow spices organically sell their produce to medium scale organic farmers or buyers who facilitated their certifica-tion. It is also common for them to sell to middleman buyers of conventional types since

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there is no premium price offered to organic produces. Spices production in the URT has primarily attracted traders from neighbouring countries ( East Africa ), there is some export within the region ( SADC and COMESA ) and the Middle East. Asia, Europe and America are hardy targeted for export today.

In the Value Chain of spice in the URT we therefore distinguish 4 categories :

a. Organic Certified Spices : a small segment ( < 5 % of spice output ), dominated by Middle scale producers and processors. Tracking & Tracing is certified ; the products are packed in retail packaging and sold to import houses in Europe. Farmers certified organic sell as well their produce to the conventional market as theydo not realize additional prices.

b. Non-certified Spices to the national market : the dominant segment, where dried spice are packed in small unbranded plastic bags and sold on markets locally.

c. Non-certified Spices to export : these are packed in big parcels and trucked to re-gional markets. Standards are lacking. This category includes exports to the Middle East countries and Asia. These do not pose strict standards requirements. However, extensive documentation is required.

d. Cloves from Zanzibar : the trade is monopolized by the ZSTC ; international standards are met, products are packed in 40 kg bags, export documents are in order.

( vi ) Road Map for the Development of the Spices Sub Sector in URT

a ) Improvement of growing, harvesting, collecting and processing

� Spices production can be improved within the production areas by improving cul-tural practices ( global GAP ) and also by expanding production to other new areas. A programme needs to be established to ensure that appropriate cultural skills are availed to small scale farmers and extension agents.

� Establishment of collecting centres at relevant places with cleaning facilities is impera-tive and required.

� Processing facilities and structure owned by some small scale processors require re-designing and upgrading so that they can meet standards for processed products.

� Harvesting plus quality control regulations need to be developed so as to ensure that high quality produces are harvested and that processed products are of good quality.

� Facilitating availability of update reliable market information to small scale farmers is crucial to strengthening their decision making on harvesting and processing.

b ) Actions and Priority setting for target markets

� Boost output to match local demand. This can be done within the present regime of small holder farming, whereby the farmer grows many different crops on a small plot and thereby have the advantages of a regular income and low operational costs.

� Introduce plantation systems that allow for a much higher yield per hectare. This will result in a surplus-over-local demand that can be exported.

� Improve post-harvest treatment, so that quality meets international standards. � Create the professional environment in terms of packaging, logistics, export docu-

mentation and export financing that smoothen the export. c ) Main strategy objectives for the target markets :

� Matching local market demand by small holders :Instruct farmers to train plants low at 2 meters height, this facilitates harvesting.

� Be clear about harvesting standards : do not harvest unripe fruits. � Practice proper cleaning and sorting of produces to exclude foreign and extraneous

matter.

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� Install local collecting centres which pay transparent prices at delivery. � Use of Tanzania’s mobile telephone systems to smoothen payments between farmers

and collectors. � Set standards for high quality products : When standards are set, farmers and col-

lectors know when and what to buy. Standards help to ensure : 1 ) harvesting-when-spice-is-mature ; 2 ) proper drying down to < 12 % moisture ; 3 ) proper storage to avoid deterioration and mould forming ; 4 ) selecting 1stand 2ndand 3rdgrades.

� Apply international rules for pre-shipment sampling ( ESA or ASTA or ISO ), so foreign buyers can rely on these, as collateral for their payment. It is for the authorities to enforce this sampling practice and to penalize malfunctioning in this respect.

� Write an export document instruction. ( vii ) Short term actions

It is recommended in the short term to focus on a few spices with the highest potential for the export market as follows :

a. Black Pepper, because standards are very clear, post-harvest treatment by small-holders is relatively simple and because the gap between world production and demand is increasing rapidly.

b. Cloves from mainland Tanzania, because also standards are very clear and post-harvest treatment by smallholders is relatively simple, while on Tanzania mainland planting is rapidly expanding. There is demand for the crop from Singapore, Indonesia and Southern Europe.

It is recommended for the medium term, export portfolio for the URT to be expanded to :

a. Ginger, whereby post-harvest treatment must be organised centrally ; it includes washing and slicing immediately after harvesting, then drying.

b. Green cardamom, but the demand for Tanzanian quality is for now unclear ; post-harvest treatment ( drying ) is simple, export prices are firm.

To achieve the above, it is proposed that implementation actions and priority be set for the EU export markets and the Asian processors who supply blends to the EU, by :

a. Introduce and enforce ESA Standards for Pepper, Clove, Ginger ;b. Enforcement of Representative pre-shipment sampling and c. Facilitation in preparation of and access to Export Documentation and logistics.

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CONTENTS

ACKNOWLEDGEMENT AND DISCLAIMER iii

EXECUTIVE SUMMARY iv

ACRONYMS xii

2.1. BRIEF DESCRIPTION OF THE SPICE SECTOR FROM A GLOBAL PERSPECTIVE 14

2.2. THE SPICE SECTOR FROM A MESO PERSPECTIVE : AFRICA & THE MIDDLE EAST 17

2.3. THE SPICE SECTOR IN TANZANIA 17

2.3.1. The spice sector in URT, World spice trade and URT’s agro economy 17

2.3.2. Types of spices grown in Tanzania 17

2.3.3. Spices Production Areas in the URT 18

2.3.4. Production Systems of Spice Crops in the URT 20

2.3.5. Yield and production Levels 22

2.3.6. Harvesting seasonality for different spice crops 24

2.3.7. Constraints to Spice Production in URT 25

2.3.8. Harvesting and Processing : Practices and Issues 26

2.3.9. Processing and value addition 30

2.3.10. Export of Spices from URT 33Cloves from Zanzibar & Pemba 34Spice export from mainland Tanzania 35Organic spice export in retail packaging 36

3.1. THE GOVERNMENT 37

3.2. PRIVATE ASSOCIATIONS 38

3.3. DEVELOPMENT PARTNERS 38

4.1. TRENDS & CHALLENGES IN THE GLOBAL SPICE SUPPLY CHAIN 39

4.2. TRENDS & CHALLENGES IN THE SPICE SUPPLY CHAIN OF TANZANIA 40

4.2.1. Selling by the small holder 40

4.2.2. Price levels from farmer to collector and profitability Analysis 40

4.2.3. Supply Chain of spices in URT 42

4.3. ISSUES IN THE VALUE CHAIN AS IDENTIFIED IN THE STAKEHOLDERS’ WORKSHOP 44

5.1. IMPROVEMENT OF SPICES GROWING, HARVESTING, PROCESSING AND COLLECTING 46

5.2. ACTIONS AND PRIORITY SETTING FOR TARGET MARKETS 49

5.3. MAIN STRATEGY OBJECTIVES FOR THE TARGET MARKETS : 53

5.4. IMPLEMENTING FRAMEWORK 54

6.1. SPICES AND COUNTRIES TO FOCUS ON FOR EXPORT 57

6.1.1. For the short term, we recommend to focus on the following spices 57

6.1.2. For the medium term, export portfolio in Tanzania can be expanded to : 57

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TABLES

Table 1 : Tanzania’s Strength in World Spices Trade 2006 - 2011 17

Table 2 : Characteristics of major spice crops with potential for export 18

Table 3 : Estimated production volumes of 10 spices in URT 22

Table 4 : Spices harvesting seasonality 24

Table 5 : Constraints in Spices Production in the URT and Potential Solutions 25

Table 6 : Issues typical for Tanzania Spice Harvesting and Drying 29

Table 7 : Spice value addition processes and products formed 30

Table 8 : Issues Typical for Tanzania Spice Processing 31

Table 9 : Constraints in spices processing and value addition in the URT and potential solutions 33

Table 10 : Export of spices from Tanzania in 2011 and 2012 33

Table 11 : Output and export value of traditional cash crops and food crops in the URT 34

Table 12 : Other Certified Organic Spices Producing / Trading Companies in Tanzania 36

Table 13 : Quality players in origin, who supply ground spice at ESA and ASTA standards 39

Table 14 : Average prices ( in T. Shillings ) of spices in Morogoro district* 41

Table 15 : Ginger prices ( in T. Shillings ) by different buyers 41

Table 16 : Market Constraints and solutions in the URT 41

Table 17 : Examples of spices in high demand for the export market 46

Table 18 : Spice Sector Improvement Road map and Implementation Plan 55

6.2. ACTIONS AND PRIORITY SETTING FOR EU EXPORT MARKETS 57Introduction and enforcement of ESA Standards for Pepper, Clove, Ginger 57Improvement of grading, cleaning and drying post-harvest 58Enforcement of Representative pre-shipment sampling 58Facilitation in preparation of and access to Export Documentation and logistics 58

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FIGURES

Figure 1 : World demand for spices 14

Figure 2 : Chilli producing countries 15

Figure 3 : Global pepper production 15

Figure 4 : Pepper production by country 16

Figure 5 : The spice sector from a meso perspective 16

Figure 6 : Spice producing areas in the URT 19

Figure 7 : Eastern Arc Mountains in URT 20

Figure 8 : Tree species used in training of pepper in monoculture and for isolated plants 21

Figure 9 : Pepper and cinnamon drying at the Tandai market in Morogoro Rural 27

Figure 10 : Sun drying of spices on plastic covering or mats 27

Figure 11 : Cinnamon chips of different sizes 27

Figure 12 : Sun dried Cardamom 28

Figure 13 : Harvesting green pepper berries ready for drying 28

Figure 14 : Spices grinding ( a ) and storage in a milling house showing packaging in ( b ). 32

Figure 15 : Global Clove production and export destinations of clove exports from Zanzibar 34

Figure 16 : Mode of transportation and packaging for export trade of spices from Tanzania Mainland to Regional markets. 35

Figure 17 : Value Chain analysis of the Spice Subsector in the URT ( based on the ITC Template ) 42

Figure 18 : Spices in retail and in bulk 43

Figure 19 : Spices sector development challenges ( Numbers provide linkage between the challenges Development actions proposed in Table 20 ) 45

Figure 20 : Proposed actions to Spice Sector Development ( Numbers provide linkage between challenges ( Table 19 ) and the Development actions ) 48

Figure 21 : Actions to improve post-harvest treatment of spices in the URT 49

Figure 22 : Actions to improve spices yield in the URT 50

Figure 23 : Actions to improve quality of spices in the URT 51

Figure 24 : Actions to set and manage quality standards of spices in the URT 52

Figure 25 : Export logistics for spices in the URT 53

Figure 26 : Established cinnamon plantation ( a ), Plant nursery for provision of spices seedlings ( b ) and facility for mobile telephone payments 54

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APPENDICES

Appendix 1 : List of spice crops produced in the URT 60

Appendix 2 : Optimal climatic requirements for major spice crops grown in URT 61

Appendix 3 : Major Spices producing areas at district level in the URT 62

Appendix 4 : Spices production ( MT ) for Morogoro district council 62

Appendix 5 : Cardamom production in Mvomero District 63

Appendix 6 : Spices production data for Muheza District 63

Appendix 7 : Local ginger production in tons, 2006-2011 63

Appendix 8 : Clove production data in Zanzibar ( ton ) per year 63

Appendix 9 : Coriander production in Singida Rural district 64

Appendix 10 : Chilli production in Tanzania ( MT ) during 2006-2011 64

Appendix 11 : Vanilla production ( tons per year ) in Kagera region 64

Appendix 12 : Challenges to spices production and value addition and trade as mentioned by during the stakeholder workshop held on 6th November 2014 65

Appendix 13 : Solutions to challenges and suggestions for the development of the spices sub-sector made at the stakeholder workshop of November 6, 2014 65

Appendix 14 : Standards for Black Pepper 66

Appendix 15 : Team of experts identified at the stakeholder workshop to formulate product specifications for export quality and to design simple hand-out to guide farmers and collectors for the major spice crops 67

Appendix 16 : Team identified at the stakeholder workshop to write export document instructions 67

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ACRONYMS

The following abbreviations are used :

AMAGRO Association of Mango Growers

AMCOS Agricultural and Marketing Cooperative Society

ARI Agriculture Research Institute

ASTA American Spice Trade Association

BEST Business Environment Strengthening for Tanzania

BTC Belgium Technical Cooperation

COMESA Common Market for Eastern and Southern Africa

DAICO District Agricultural, Irrigation and Cooperative Officer

ESA European Spice Association

EU European Union

FAOSTAT FAO Statistics

GAP Good Agriculture Practices

HACCP Hazard Analysis and Critical Control Points

HODECT Horticulture Development Council of Tanzania

ISO International Standards Organisation

ITC International Trade Centre

JUWAKIHUMA Jumuiya ya Wakulima wa Kilimo Hai Usambara Mashariki

LDCs Least Developped Countries

LGA Local Government Authority

MAFC Ministry of Agriculture, Food Security and Cooperatives

MAYAWA Maendeleo ya Wakulima

MFI Micro Finance Institution

MIT Ministry of Industry and Trade

TanTrade Tanzania Trade Development Authority

SADC Southern Africa Development Conference

SMEs Small and Medium Enterprises

SIDO Small Industry Development Organization

SUA Sokoine University of Agriculture

TAHA Tanzania Horticultural Association

TBS Tanzania Bureau of Standards

TCCIA Tanzania Chamber of Commerce, Industry and Agriculture

TFA Tanzania Farmers Association

TFDA Tanzania Food and Drugs Authority

TOAM Tanzania Organic Agriculture Movement

TPSF Tanzania Private Sector Foundation

TRA Tanzania Revenue Authority

URT United Republic of Tanzania

USAID United States Agency for International Development

WEO Ward Extension Officers

ZSTC Zanzibar state Trading Corporation

1. INTRODUCTION 13

1. INTRODUCTION

The International Trade Centre ( ITC ) is a joint agency of the United Nations and the World Trade Organization. It focuses in particular on developing the export capabilities of small and medium-sized businesses in developing and transition economies.

In the United Republic of Tanzania ( URT ), the ITC through the Promoting Intra-regional Trade in Eastern Africa Project, funded by Finland, is working with local partners to promote participation of SMEs in selected agri-food sectors in regional and global value chains. More specifically, the project aims at assisting in reviewing existing value chain strategies of honey, spices and mango and the implementation thereof by establishing and strengthening regional business contacts, networks and exports in the sectors. The main ITC partners in Tanzania for the implementation of this project include ; The Small Industry Development Organisation ( SIDO ), Association of Mango Growers ( AMAGRO ), Tanzania Forestry Services Agency ( TFS ) and Zanzibar State Trading Corporation ( ZSTC ).

The current work is part of the overall programme of the project and it specifically addresses the Spices sector. The work was conducted through desk studies. Existing reports on spices production, the supply chain and products’ profitability were reviewed. The review was supplemented by consultations with a limited number of key stakehold-ers in some of the major spice production areas for the purpose of updating the existing information.

Thus this report in six main sections presents in the second part ( chapter ) an inventory of the spice crops produced in the URT. The inventory consists of a categorization of the crops in terms of their specificity of uses : as typical spices used in foods and drinks, those which are for other uses and those with both types of uses. The section maps the production areas and provides overview of the production systems, the estimated levels of production, the timing of crop harvests from the different production areas and highlights the major production constraints. Marketing of the spices and an analysis of their profitability to producers as well as trade limitations for the sector are presented in the fourth chapter. The section is followed by a description of the possible Road Map for the development of the sector. It consists of analyses of the current situation at the production and marketing levels and what should be done to alleviate setbacks to development. In the last section are outlined recommendations on spices to focus on in the short and medium term and actions that can be taken to enhance export to the EU markets.

The report was presented, discussed and validated at a workshop held in Dar es Salaam on 6th November 2014. The outputs of the workshop emanating from group discussions and a plenary session have been incorporated in this final report.

2. THE SPICE SECTOR SITUATION FROM GLOBAL TO REGIONAL14

2. THE SPICE SECTOR SITUATION FROM GLOBAL TO REGIONAL

2.1. BRIEF DESCRIPTION OF THE SPICE SECTOR FROM A GLOBAL PERSPECTIVE

World production of spices ( in dry form, 12 % moisture ) is estimated now at 6,000,000 tons. About 2 / 3 of the above quantity however, is being consumed in production ar-eas. World Trade in spices is estimated at 1,500,000 tons / year and export of spices to Western countries ( EU + North America + Japan ) is estimated at 700,000 tons. Traditionally large export countries like China and India are becoming net importers of spices like turmeric, ginger and black pepper, due to growth in the economy and increased eating of meat ( “march of the meat eaters” ).

Figure 1 : World demand for spices

World demand for spices is growing because :

AFRICAPupulation growth

EUROPE & NORTH AMERICAEthnic flavours

INDIA & CHINACaptive use

Source : FAO Statistics

2. THE SPICE SECTOR SITUATION FROM GLOBAL TO REGIONAL 15

Figure 2 : Chilli producing countries

Africa produces 18 %

World Chilli Production

Others10%

Bangladesh5%

Africa18%

Myanmar4%

Thailand4%

Pakistan4%

Peru5%

Mexico2%

India39%

China9%

Source : FAO Statistics

The world demand for the two most important spices traded worldwide ; chillies ( 3,200,000 ton / year ) and ( black ) pepper 1 ( 400,000 ton / year ), increases considerably yearly. Figures 3 and 4 below give a good indication of how demand for these spices is growing year by year.

Figure 3 : Global pepper production

Global Pepper Consumption

Asia Europa Africa Middle East North America Producing Countries

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1995

Tons

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

Source : European Spice Associatio 2014, Nedspice-NL

1.– Black Pepper ( Piper nigrum ) is also called “the king of spice”


Figure 4 : Pepper production by country

Production by country

20000

40000

60000

80000

100000

120000

140000

160000

0

Vietna

m

Indon

esia

Brazil

India

Malays

ia

China

Sri Lan

ka

Others

2011-12

2012-13

2013-14

2014-15

Source : European Spice Associatio 2014, Nedspice-NL

Figure 5 : The spice sector from a meso perspective


2.2. THE SPICE SECTOR FROM A MESO PERSPECTIVE : AFRICA & THE MIDDLE EAST

Export between African & Asian countries might reach a volume of 300,000 ton / year. It comprises of exports for example from Nigeria, Ethiopia, Tanzania and Ivory Coast to Uganda, Kenya, North Africa, Middle East and India markets ( Figure 5 ).

2.3. THE SPICE SECTOR IN TANZANIA

2.3.1. THE SPICE SECTOR IN URT, WORLD SPICE TRADE AND URT’S AGRO ECONOMY

Spices are important cash crops and play a major role in the economies of many coun-tries. Between 1995 and 1999, Tanzania ranked the third among the Least Developed Countries ( LDCs ) by exporting 5 % of LDCs’ total spice exports. Madagascar was the largest ( 72 % ) followed by Comoros ( 6 % ), but total LDC exports fulfilled only 5.5 % of global import demand. During that period, spice crops marketing and export was con-ducted country wide by the General Agricultural Foods Exporting Company ( GAPEX ). Since the 2000s, after the company wasdissolved, there was no effort on developing spices. Available comparative data show that between 2006 and 2011, Tanzania’s share in the global spice trade was only 0.36 % ( Table 1 ) and it is estimated to have dropped further to lower than 0.07 %.

Table 1 : Tanzania’s Strength in World Spices Trade 2006 - 2011

Quantity traded ( Ton ) Value ( US$ )

World Trade 1,500,000 4,000,000,000

Tanzania’s Share 5,500 38,200,000

% Share 0.36 0.96

Source : TanTrade

2.3.2. TYPES OF SPICES GROWN IN TANZANIA

Tanzania’s climate and soil conditions are very suitable for spice crops production. A wide range of crops is cultivated that constitute spices and aromatic plants. Spices are used in food and drinks for imparting agreeable flavour and aroma, colour and as preservatives. Aromatic plants are used for the production / extraction of essential oils. Some typical spice crops are also used in the production of essential oil and in the pharmaceutical and perfumery industries. The list presented in Appendix 1, is an inventory of the spices and aromatic crops in the three categories known to be grown in the URT at varying levels of importance. This list of spice crops is relatively long and the importance of each one is different. The importance of a spice crop in an area depends primarily on the adaptation to the ecology of the area and second to the advantages it has to the society. Based on the above, we have identified ten major spice crops produced for the local and export market. These are further described in the Table 2 below :


Table 2 : Characteristics of major spice crops with potential for export

Common name Life span Duration to first harvest Duration to peak yield Plant characteristic

1. Clove Perennial 5-7 years 15-20 years Tree

2. Pepper Perennial 2-3 years 5-7 years Vine and herb

3. Ginger Biennial grown as annual 8-10 month N / A Herb

4. Cardamom* Perennial 2-3 years 15 Herb

5. Cinnamon** Perennial 2-3 years 3-5 Tree / Shrub

6. Chillies Annual 3-4months N / A Herb

7. Coriander Annual 3 months N / A Herb

8. Lemon grass Perennial 6-8 months N / A Grass

9. Nutmeg Perennial 5-7 years 15-20 years Tree

10. Vanilla Perennial 2-3 years 5 years Vine and herb

* Tanzania grows the green Elettaria cardamomum Maton

** Tanzania grow the Cinnamon zeylanicum, which is superior to cassia

Pepper and vanilla belong to two different families, they are perennial and non-self-supporting. They therefore require establishment of appropriate supporting materials prior to planting. Ginger and cardamom belong to the same family, Zingiberaceae. However, cardamom differs markedly from the other in that cardamom is perennial and the useful part is the fruit while ginger is grown as an annual crop and the useful part is the rhizome. Clove, cinnamon and nutmeg are trees and therefore perennials. All of them differ in terms of the useful part of the plant, i.e., flower buds, bark and leaves and fruits, respectively. Chillies and coriander are annual herbaceous plants, while lemon grass is a perennial grass type of plant. These differences in characteristics account for their differences in duration to first harvest, peak harvesting period and adaptation to environmental conditions.

2.3.3. SPICES PRODUCTION AREAS IN THE URT

Production of the major spice crops in the URT is undertaken in different areas with favourable environmental conditions. Some spice crops are grown in the same areas because of their similarities in ecological requirements. This is true for spice crops such as Cardamom and Ginger which belong to the same family. These require high rainfall of over 1500 mm per annum, a temperature range of 20 - 35 OC and an altitude of between 300 and 1000 m above sea level ( asl ). Pepper, clove and nutmeg are favoured by high relatively humid conditions and cannot tolerate excessive heat or dryness. Cinnamon requires high sunshine. Vanilla requires high rainfall and partial shading like cardamom which naturally grows under trees. Coriander requires cool climate during growth stage and warm dry climate at maturity. Chillies and lemon grass require a warm climate. Low humidity and high temperature cause shedding of buds, flower and young fruits in chillies. The ideal condition for lemongrass is a warm and humid climate with sufficient sunshine ( Appendix 2 ).

Figure 6 shows the major spices producing areas in the URT. Clove, pepper, cardamom and cinnamon are mainly produced in the Tanga and Morogoro regions as well as in Zanzibar and Pemba. Zanzibar and Pemba are the main areas for the production of clove. Production of clove for commercial purposes in the mainland Tanzania in Tanga and Morogoro regions is a recent development. Cardamom and cinnamon are also found in Mbeya region. In Kilimanjaro region cardamom is also grown. Ginger is grown in Kilimanjaro, Kigoma, Ruvuma and Morogoro regions, in that order of importance. Some production is also done in the Kagera and Mbeya regions. Vanilla is produced mainly in Kagera and Kilimanjaro regions and to some extent in Morogoro region. Chillies including paprika are important spice crops produced in Iringa, Mbeya, Arusha, Tanga, Coast, Morogoro regions and Zanzibar. Coriander is almost entirely produced from Singida region in central Tanzania. Appendix 3 is a detailed list of districts where the different spice crops are produced.


Figure 6 : Spice producing areas in the URT

Spice Crops

Cloves, Pepper, Capsicum and CinnamonGingerCardamomVanillaChilliesCoriander

Kagera

Mwanza

Mara

Arusha Kilimanjaro

Manyara

Tanga

Pwani

Lindi

MtwaraRuduma

Morogoro

IringaMbeya

Rukwa

Tabora

Singida

Dodoma

KigomaShinyanga

Pemba

Unguja

Due to the ecological requirement of relatively high rainfall, high humidity and warm temperature most of the major spice crops such as clove, cardamom, cinnamon, pepper and ginger in mainland Tanzania are therefore grown in the areas within the Kilimanjaro, Tanga and Morogoro regions. These regions are found in the chain of isolated mountains called the Eastern Arc ( Figure 7 ). The mountains confer highlands and lowland areas which are characterized by distinct local microclimates, referred to as exceptional misti-ness and general wetness. The mountains are also in proximity of the Indian Ocean that provides a cooling effect, and temperatures lower than those in other parts of Tanzania at similar altitudes ( Reyes, 2009 ). The Arc Mountains on the other hand are rich in forests. The forests create a remarkably cool microclimate, and relative humidity that is high throughout the year ( Lovett and Wasser, 1993 ). These microclimates provide very favourable environmental conditions for the production of the major spice crops, in particular ; cardamom, pepper, cinnamon, clove and vanilla.


Figure 7 : Eastern Arc Mountains in URT

Source : The Bugwood Network, 2001 cited by Reyes ( 2008 ).

2.3.4. PRODUCTION SYSTEMS OF SPICE CROPS IN THE URT

Traditionally, cardamom is grown in forests as it requires a shady environment for its growth and development. Partial clearing of forest vegetation is usually conducted for planting and as management practice. Purposeful establishment of plantations is a recent phenomenon for commercial production but also due to imposed restrictions for environmental conservation. This has been a challenging requirement, as most farmers would not be able to have their own forests to grow cardamom ( Reyes et al., 2006 ). The trend is now that farmers grow cardamom in their farms in mixed cropping with tree crops, forest trees, fruit trees and other perennial spices. Occasionally, agro-forestry cropping systems can be observed.

In Pemba and Zanzibar clove is grown in well-established plantations but isolated trees are also found in farms with other crops and in home gardens. Similar cropping systems are slowly developing at a small scale in the mainland. Nutmeg production is less developed compared to clove. Trees are mainly found in mixed cropping systems and in home gardens.

Cinnamon production in Tanga region and Zanzibar Islands is largely under mixed cropping systems. In Morogoro both mixed systems and medium scale plantations now exist. A good example is in the Kibogwa ward. Isolated plants which consist of big trees aged above six years are predominant and are the sources of the product traded in the form of large and thick chips. The recently established plantations are potential sources of standard quills.

Pepper is relatively better grown in conventional production units in Muheza district ( Tanga region ) and some areas in Morogoro district. In these areas purposeful small plantations of 0.25 ha and above can be found. The pepper plants are grown in


monoculture from cuttings and are trained using Jatropha curcas and Gliricidia sepium trees as depicted in Figure 8 ( a ) below. However, there is still a lot of pepper production in the Morogoro Rural district taking place in the form of isolated plants trained on large trees especially fruit trees such as jackfruit and mango and other trees as shown in Figures 8 ( b ) and ( c ).

Figure 8 : Tree species used in training of pepper in monoculture and for isolated plants

Pepper grown on Jatropha Pepper trained on Jackfruit Pepper trained on Grevilea

Vanilla is entirely produced under conventional plantations intercropped with banana and or coffee which provide shade and trained on Jatrophacurcas. This cropping sys-tem is dominant in the Kagera, Kilimanjaro and Morogoro regions. Vanilla production developed more rapidly in Kagera than in other regions.

Ginger is a biennial plant. In commercial production it is grown as annual by planting rhizome cuttings called sets. It is cultivated in monoculture under rain fed conditions preferably in wet areas and valley bottoms. In Same district, irrigation is practiced. Irrigation enables the production of crop throughout the year although with existence of a peak production season corresponding to that under rain fed conditions ( DAICO Same, 2014 ).

Lemongrass is a perennial grass. It is commonly planted by using splits. It is planted in home gardens, in fields for control of soil erosion and for demarcation of boundaries. At medium and large scale it is grown in a monoculture system. The plants are harvested by cutting the leaves at 10 - 15 cm above the soil and by thinning the stools. The lat-ter practice involves uprooting some of the tillers with their rhizomes. This leads to availability of two products namely leaves and rhizomes. The rhizomes are mainly for extraction of essential oil. The first harvest is done after six to eight months from planting and subsequent harvesting is on three to four monthly bases.

Chillies including paprika are annual plants raised from seeds. They are grown in mono-culture in many cases under rain fed and irrigated conditions. In the early 2000s, chilli production was highly promoted by various non-governmental organizations leading to introduction of contract farming. However, this did not work well to the disappointment of small-scale farmers who had ventured into commercial production. Planting starts at the end of the long rains ( April / May ). The crop grows depending on residual moisture supplemented by irrigation.

Coriander is an annual herb mainly grown under rain fed condition in semi-arid areas of central Tanzania. It is grown in fields alternatively used for the production of chickpeas ( Cicer arietinum ). The two crops are currently competing for land. Apparently chickpea is tending to over compete coriander due to relatively higher demand and profitability.

Most spice crops in the URT are generally grown without the application of recom-mended agronomic practices. Both organic and industrial fertilizers are rarely used.


In the East Usambaras for example, Reyes et al. ( 2010 ) found that only 15 % of farmers actually used fertilizer on cardamom production. Pesticides are not used either. This warrants a general suggestion that most spices in the URT are grown organically by default. In the East Usambaras, most farmers have been trained and certified to manage their farms organically.

Kimango Farm Ltd, based in Morogoro, produces, processes and exports organic chillies and lemongrass. The produces are certified by the Swiss Institute of Market Ecology ( IMO ). Production of certified organic spices is increasing since other produc-ers / processors like Golden Food Products ( GFP ), based in Arusha and Mayawa Victoria Company ( MAVICO ), based in Kagera region are engaged in upscaling production. In some wards of Morogoro Rural district, especially in Mkuyuni division, processes have been initiated by the Tanzania Organic Agriculture Movement ( TOAM ) to train farmers to manage their farms organically 2.

2.3.5. YIELD AND PRODUCTION LEVELS

There are no reliable data on the quantities of spices produced in the URT. This is largely due to the absence of an official authority for the coordination of the production and marketing development of spice crops, unlike the case of traditional food and cash crops. Available data is an estimation ( Table 3 ) resulting from segmented information collected from different places at different levels ( districts, wards or villages ).

Production trend of spice crops in Morogoro Rural, Mvomero and Muheza districts are presented in the Appendices 4, 5 and 6 respectively. Data shows that there is more production of cardamom and clove in Muheza district compared to Mvomero and Morogoro rural districts. For pepper and cinnamon, production is highest in Morogoro Rural district.

Table 3 : Estimated production volumes of 10 spices in URT

Spice Cultivation / cropping Volumes 3 Perspective

CloveZanzibar ( Unguja ) and Pemba, well

established plantations. Export is controlled by ZSTC4.Stems are extracted in Pemba.

2013 : 5,500 Mt2014 : 2,800 Mt2015 : 3,500 Mt

New plantations in Tanga & Morogoro, where ZSTC does

not control

PepperIsolated plants trained on large trees. Small

plantations scarce2010 : 2,000 Mt2014 : 3,000 Mt

Plantation growing could increase volumes

GingerCultivated in mono culture, 80 % is used fresh

on the local market2005 : 6,000 Mt2014 : 7,000 Mt

Slicing before drying

White cardamom

Traditionally grown in forests,Recently also plantations

2010 : 500 Mt2014 : 1,000 Mt

Increased planting

Cinnamon ( zeylanicum )

Mixed cropping system. Today in Morogoro small plantations

2010 : 600 Mt2014 : 1,500 Mt

Strong increase in acreage thanks to plantations

ChiliesGrown in monoculture under rainfed

& irrigated conditions2010 : 7,000 Mt2014 : 9,000 Mt

Increasing acreage under organic production

CorianderGrown in monoculture under rain fed

condition in the semi-arid areas2010 : 1,000 Mt2014 : 800 Mt

Declining production due to competition for land with chick pea

Lemon GrassPerennial grass, planted by using splits.

Leaves & rhizomes are used2010 : 10 Mt2014 : 15 Mt

Monoculture system

Nutmeg Some isolated trees Very smallThere potential for production

on Mainland

VanillaConventionally intercropped with banana

or coffee2010 : 103 Mt2014 : 40 Mt

Increase in production is linked to World market price

2.– Pers.com. with Ward Extension Officer, Kinole, Morogoro Rural ( 12 October, 2014 ).


The annual cardamom yield ( green Elettaria cardamomum Maton ) in the East Usambaras in the current production systems is on average 80 kg / ha ( Masayanyika, 1995 ), but according to empirical evidence, under good land management and by adding manure it could easily reach about 1 kg per stump a year, or an average of 300 kg / ha.

In the mid-1970s, the East Usambaras were still producing about 760 tons of cardamom per annum ( equalling 20 % of total world production ), which made Tanzania the third largest producer after India and Guatemala. The current cardamom production of 756 tons ( 2012 ) and 165tons ( 2013 ) from East Usambara shows a stagnant and decline in production. It has been reported that in India, cardamom yields have declined due to forest exploitation and a longer dry season ( Reyes et al., 2006 ). This is apparently also happening in Tanzania. Thus the authors suggest that expansion of cultivation of the crop in the URT must go hand in hand with tree planting and climate change mitigation technologies.

Belgian Technical Cooperation ( BTC ) ( 2012 ) reported that Tanzanian production of ginger amounted to approximately 4.3 thousand tonnes in 2010 / 11, which is consider-ably more than production levels of the years before ( Appendix 7 ). Meanwhile, DAICO SAME ( 2014 ) reported that with a production of over 12,000 metric tons of raw ginger, Same district contributes 70 % of the total ginger produced in Tanzania. This shows that the data on quantities of ginger produced by each producing district do differ consider-ably. Data on quantities produced would be more accurate if there were effective known collecting centres in the villages and wards.

The volume of clove produced in mainland Tanzania is indicated in Appendices4and 6 for the Morogoro Rural and Muheza districts respectively. Production from Zanzibar is indicated in Appendix 8. Clove often experiences irregular or alternate bearing. A well-maintained full grown tree under favourable conditions may give 4 to 8 kg of dried buds under favourable conditions. The average annual yields after the 15th year may be taken to be 2 kg per tree.

Coriander is produced in Singida Rural District and to some extent in the nearby Babati District. Available data ( Appendix9 ) show that production was highest with more than 1,000 tons produced in 2011. As mentioned earlier, the overall trend over the years is a declining one. The trend is attributed as earlier mentioned to competition for production resources with other crops that are considered to be more profitable.

Tanzanian production of chillies ( Appendix 10 ) amounted to over 7 thousand tonnes in 2010 / 2011, indicating an upward growth of 30 % annually. Chilli can be produced in many parts of the country. Main production regions are Arusha, Tanga, Coast, Zanzibar and Morogoro. Thanks to MAYAWA and MAVICO, Kagera is also known to produce organic chilli.

Vanilla production has shown a considerable declining trend from 103 tons of pro-cessed beans in 2010 / 2011 to only 27 tons to date ( Appendix 11 ). According to Mayawa ( 2013 ), the decline in vanilla production has been due to the occurance of the Banana Xanthomonas wilt. The banana plants which used to provide shade have been infested by the disease and therefore uprooted. This has deprived the vanilla plants of the partial shade that is required for their proper growth and productivity. Other reasons include declining profitability of the crop due to falling local and world market prices.

Low Volume

The produced volume of spice in Tanzania is hardly sufficient to match local demand. Therefore local prices often exceed global export prices. The volume that is exported, goes to neighbouring

countries where standards for extraneous matter, foreign matter, microbiology etc., are not yet strictly applied.


2.3.6. HARVESTING SEASONALITY FOR DIFFERENT SPICE CROPS

Spices are grown in different places in the country. These places have ecological differ-ences due to altitude, temperature, humidity and rainfall. Other factors such as varieties may also have influence on harvesting season and duration. As a result, harvesting seasons for the same spice crop grown in different places will to a more or less extent vary. For example, in Muheza Cardamom is harvested during September to October while in Mvomero it is harvested during June to July. On the other hand, due to the environmental and biological differences, some spices in different production sites may come into harvesting during almost the same season of the year. A good example can be drawn from cardamom in Muheza and coriander in the Singida Rural District. Table 4 gives a summary of some spice crops and their harvesting seasons in different places in the URT.

Table 4 : Spices harvesting seasonality

Spice crop DistrictHarvesting season ( Months )

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

CLOVE

Morogoro Rural

Muheza

Zanzibar

PEPPERMorogoro

Rural

Muheza

CINNAMONMorogoro

Rural

Muheza

CARDAMOMMuheza

Mvomero

VANILLABukoba

Hai & Moshi

GINGERSame

Songea

CORIANDER Singida Rural

LEMON GRASS Mvomero

Harvesting period of annual crops such as coriander that are normally harvested once can be extended by having fields that are planted at different dates. This is feasible for production sites with irrigation facilities that can allow early or late planting without relying on rainfall. A good example is ginger production in Same district where irrigation facility enables farmers to irrigate their crops. Consequently, harvesting may start from June to December with a peak during August / September.

There are two distinct vanilla seasons in East Africa and these include January and July. The 2005-2010 years have seen a rapid increase in the number of small farmers producing vanilla, as well as an improvement in quality and yields, but currently the trend is going down ( BTC, 2013 ).

No Value AdditionSmallholders grow a wide variety of spice crops, which are maintained, harvested and processed in a traditional way : mainly by family labour. Drying is commonly done at the farm gate in the sun and hardly any value adding in the form of grading, cleaning or packaging is done ( Figure 10 ).


2.3.7. CONSTRAINTS TO SPICE PRODUCTION IN URT

Production of spice crops is characterized by poor agronomic practices. Spices are produced in traditional smallholder agricultural practices. In traditional methods, im-proved soil management practices are lacking. Neither soil fertility improvement nor soil conservation or irrigation and drainage practices are employed. For all crops no proper spacing is observed. The most salient feature is sparse planting or low plant populations. Other important cultural practices such as pruning and training for clove, cinnamon and pepper are generally missing. Similarly, farmers do not practice thinning and trashing in cardamom. In Morogoro district, pepper is often planted trained on large trees such as jack fruit and kapok instead of the appropriate low statute plants such as Jatropha and Gliricidia, which would result in easier crop management and harvesting.

Cardamom cultivation is still mostly practiced in the forest after completely clearing the understory and middle layers, and selectively thinning the tree canopy. This practice is considered by conservationists as threatening to the endemic species within the forests ( Reyes et al., 2006 ).Thus the current trend is to prohibit cultivation in the natural forests, although these are the most favourable production environments for cardamom.

Overall, pest problems have been minimal on most spice crops. Nevertheless, some incidences such as insect damage on cinnamon leaves, dieback in clove, wilting and premature shedding of spikes in pepper have been observed in some areas. In Kagera region where vanilla is grown in intercropping with banana, of recent the banana crop has been decimated by the banana xanthomonas wilt disease. This has led to the degradation of the vanilla production environment.

As mentioned above, spice production is under traditional production system. This has not improved over a long period of time due to lack of specialized extension officers. Therefore extension services at village and ward levels does not facilitate improved spices production. Table 5 summarizes the existing production challenges and possible solutions.

Table 5 : Constraints in Spices Production in the URT and Potential Solutions

CROP CURRENT STATUS Solution

CLOVE

Agronomic practices :

� No soil fertility improvement programme

� No pruning

� Old plantations and die back in Zanzibar and Tanga

� Few plantations on the mainland

� Establish demonstration plots at each village to enable farmers to realize the yield and quality differences between well and poorly managed plots.

� Promote replanting and rehabilitation of plantations.

� Produce and distribute seedlings.

� Conduct agronomic inventory for appropriate cultural practices recommendations.

Poor harvesting method :

� Harvesting by striping whole panicles

� Train famers on the importance of selective harvesting at the proper maturity stage on yield and quality of produce.

PEPPER

Poor agronomic practices :

� No soil fertility improvement program

� No pruning / trashing / training

� Water logging around plant stems

� Pepper planted on large supporting trees

� Establish demonstration plots at each village and involve farmers to realize yield and quality differences between well and poorly managed plots.

� Make mounds at the plant stems to enhance drainage and avoid infestation due to Fusarium wilt disease.

� Emphasize use of Jatropha and or Gliricidia as support plants.

Poor harvesting :

� Harvesting berries before maturity

� Train farmers and traders / buyers on quality standards.

� Establish by laws.

Abiotic factors / Stress

� Premature shedding of spikes

� Conduct research to identify causes and provide solutions.


CROP CURRENT STATUS Solution

GINGER � Quality variability � Conduct variety evaluation on the basis of location and market demand.

� Train famers on appropriate stages of harvest.

CARDAMOM


� No soil fertility improvement program

� No thinning

� No trashing

� Poor planting practices

� Establish demonstration plots at each village and involve farmers to appreciate the yield and quality differences between well and poorly managed plots.

� Train and motivate farmers on proper purposeful planting.

Poor harvesting method :

� Harvesting by striping whole panicle

� Train famers on the importance of selective harvesting at the proper maturity stage on yield and quality of produce.

CINNAMON


� No soil fertility improvement programme

� No pruning / thinning

� Insect damage on leaves

� Establish demonstration plots at each village and involve farmers to show case improved cultural practices and to recognize the yield and quality differences between well and poorly managed plots.

Poor harvesting :

� Harvesting old trees of more than five years of age

� Train farmers to adopt coppicing method of harvesting.

� Link farmers to the market that demand good quality quills.

VANILLA

Agronomic practices :

� In adequate provision of support and shade

� Pest infestation

� Select and recommend appropriate support and shade plants.

� Identify and train farmers on appropriate pest manage-ment options.

Poor harvesting :

� Harvesting immature or over matured pods

� Train farmers and traders on appropriate harvesting stage.

2.3.8. HARVESTING AND PROCESSING : PRACTICES AND ISSUES

Individual small scale farmers are responsible for organizing harvesting of their crops depending on the market availability. Some farmers associations exist in Muheza ( JUWAKIHUMA ), Same ( AMCOS ) and Bukoba ( MAYAWA and MAVICO ) districts which are aimed at assisting members in establishing collecting, processing and selling centres. Multipurpose markets exist in Morogoro Rural district at Kinole ( Tandai ) and Tawa wards where buyers rent space for collecting, processing ( drying ) and storage of produces ( Figure 9 ). Advanced farmers such as Kimango Farm Limited and GFP have their own collecting and processing centres. These therefore undertake the harvesting and processing activities in a more elaborately organized manner. It also happens that for some spice crops harvesting is organized by middleman traders who buy crops before they are harvested. This is the case for cinnamon where middleman traders may buy trees and organize the harvesting themselves.

Harvesting of cinnamon is done by cutting or chipping tree stems into chips of varying sizes depending on the size of the tree. The local market prefers large / thick pieces of chips that are obtained from big trees. Thin strips of backs are extracted from small / young plants’ stems and the small branches of big trees. Stripping and rolling barks into quills is rarely practiced. Most farmers are not familiar with the practice although it is the standard and preferred one for high value cinnamon for export market. Cinnamon leaves are also harvested. Branches of trees are cut and leaves stripped off. After harvest, the barks and leaves are spread out on the floor, mats or rock to dry ( Figures 10 & 11 ).


Figure 9 : Pepper and cinnamon drying at the Tandai market in Morogoro Rural

Figure 10 : Sun drying of spices on plastic covering or mats

Sun drying cloves & pepper in 2 days Sun drying of cinnamon chips in 3 days

The dried products are filled into polyvinyl sacks for transportation and sale ( Figures 11 and 12 ).

Figure 11 : Cinnamon chips of different sizes

Dried large / thick chips packed into polyvinyl sack Dried thin chips and strips Dried thin strips


Cardamom is harvested by stripping the pods from the flower panicles. When hired labour is employed the tendency is that harvesting is by stripping whole panicles con-taining pods at different levels of maturity. The practice facilitates fast harvesting but compromises the final produce quality ( Figure 12 ). Like cinnamon, the harvested pods are dried in the open sun on various recipients including sometimes the bare ground. Drying by flue curing to produce green cardamom is not practiced. Packaging is also by use of polyvinyl sacks.

Figure 12 : Sun dried Cardamom

Figure 13 : Harvesting green pepper berries ready for drying


Table 6 : Issues typical for Tanzania Spice Harvesting and Drying

Pepper :

� Harvest when the berry is full green.

� Small berries with lower value due to early harvesting ( for cash flow! )

� Late harvested red berry will not sundry properly

� Extraneous matter that exceed 2 % results in 2nd Grade

Traditional farming results in :

� Low yield per ha.

� Laborious harvest of tall trees

� Difficult to select ripe / unripe

� Higher proportion of 2nd Grade

� Positive : Organic by default!

Cloves :

� Early Harvesting of green buds results in small cloves

� Stems & leaves that exceed 2 % results in 2nd Grade


Pepper should normally be harvested when the berries are mature for the production of black pepper or ripe when intended for white pepper production. Small-scale farm-ers normally harvest pepper even before maturity ( Figure 13 ). Only one product black pepper is produced. Factors that influence stage of harvesting include fear of theft and urge for early selling.

Clove harvesting is well organized in Zanzibar. As a new crop on mainland, farmers have to learn the recommended proper practices. They have also to avoid delayed harvesting which leads to poor quality produce that is dominated by open flower buds.

The typical issues characterising spices harvesting and drying practices, as summarized in Table 6, include poor harvesting marked by lack of adherence to proper time of harvesting, lack of produce sorting and grading. These are attributable to the traditional farming practices. The practices results into low crop yield and failure to meet proper produce quality standards, especially for the export market.

2.3.9. PROCESSING AND VALUE ADDITION

The type of processing varies depending on the spice crop and market requirements. In general, processing aims at prolonging shelf life and imparting additional quality or change the harvested produce into a form that is more desirable in utilization or further keeping. This is achieved through a number of interlinked activities that form the value chain.

In Table 7 value addition processes and products formed for the different spice crops are summarized. Drying is the basic process that is conducted after harvesting of almost all the spice crops. Only ginger may not be dried, if it is sold as a fresh produce in form of whole rhizome which are only washed or rubbed to remove adhering soil. Other im-portant processes include grinding the dried products into powder ( cinnamon, turmeric and chillies ). Other spices are also ground for the purpose of blending or production of masalas and curries.

Table 7 : Spice value addition processes and products formed

Common name Type of value addition Product( s ) formed Processor

1. Clove

Drying Clove Farmer / Trader

Sorting Different grades* ZSTC, Trader, Farmer

Distillation and fractionation Essential oil ( in Zanzibar ) ZSTC, CSOD

2. PepperDrying green berries Black pepper Farmer / Trader

Soaking ripe berries, decorticating, washing and drying

White pepper Trader ( GFP )

3. Fresh ginger rhizomes

Washing / rubbing off soil Fresh rhizomes Farmer

Washing, Chopping / slicing and drying

Chips Trader / Farmers Associations

Chopping / slicing, drying and grinding

Powder As above

4. Cardamom DryingYellow ( sundried )

cardamomFarmer / Trader

5.

Cinnamon ( barks )Pealing, drying and sorting

Chips Farmer / Trader

Strips Farmer / Trader

Drying and grinding Powder Trader

Cinnamon ( leaves and barks )

Drying and grinding Powder Trader

Cinnamon ( leaves & barks )

Distillation and fractionation Essential oil ( in Zanzibar ) ZSTC

6. Chillies and paprika Drying and Grinding Powder Farmer ( Kimango Farms Ltd )


Common name Type of value addition Product( s ) formed Processor

7. Coriander Drying Dried seeds Farmer

8.Lemon grass leaves Chopping and drying Pieces Farmer ( Kimango, GFP )

Lemon grass leaves & rhizomes / stems

Distillation and fractionation Essential oil ( in Zanzibar ) ZSTC

9. Turmeric rhizomesWashing, boiling and drying Dried rhizomes Farmer / Trader

Washing, boiling, drying & grinding Powder Trader

10.Vanilla Blanching, sweating & drying Processed beans Farmer / Associations

Processed beans Sorting, grading and bundling Different grades Farmer / Associations

* CG1 for Hand Picked Selected, CG2 for standard (FAQ), CG3 for distillation Grade

Table 8 : Issues Typical for Tanzania Spice Processing

Hygiene – drying :Sun drying on the ground

results in high risk of microbial contamination

Hygiene lacks in processing :

HACCP rules are not implemented

HACCP= Hazard Analysis and Critical Control Points

Small-scale farmers use traditional facilities to process their products. For example, in pepper, berries are detached from spikes by hand threshing. This is done after one or two days of drying under the open sun.

Drying is often conducted under unclean environments, such as spreading the spices on the bare ground, floor or rock. Since the process is conducted under the open sun in the homestead, contamination due to dust and livestock is possible as exemplified in Table 8.

In most cases, ordinary milling machines ( NOT stainless steel ) are used. The mills own-ers have specialised in processing spices. In some cases, milling houses are also used as storage facilities for spices ( Figure 14 ). Only farmers / traders exporting to Europe and the US ( GFP, Kimango Farms Ltd., ZSTC, AMCOS and CSOD ) have special dedicated equipment.


Figure 14 : Spices grinding ( a ) and storage in a milling house showing packaging in ( b ).

( a ) Milling machine ( b ) Piles of cinnamon barks and leaves in bags

Recent developments in Same district, Kilimanjaro region show that AMCOS with as-sistance from government and non-governmental partners have managed to build a facility for ginger processing. The plant has the capacity of processing ginger rhizomes into powder form of eight ( 8 ) tonnes per day.

Data on the processing capacity of GFP, TAZOP, ZANOP and Kimango Farms Ltd and other processors is not available. In Morogoro municipality, at Kwa Mnyonge, there exist processing mills that grind between 200 and 1000 kilograms of spices per day depending on the season.

The method and timing of harvest have influence on yield and the quality of the product, before and even after processing for value addition. Table 9 presents the prevailing constraints for the different major spices. The most important harvesting constraints are linked to non-adherence to time of harvest, non-selective harvesting based on level of maturity and type of harvestable material. Thus farmers harvest cardamom, pepper and vanilla before they attain the preferred level / stage of maturity. On the other hand clove can be harvested post maturity, when the buds are fully open. Immature pods / berries will have a small size, uncharacteristic shape and flavour / aroma and therefore, a poor quality. Harvesting at the right stage of maturity is ensured as well by practicing selective harvesting of individual fruits ( pods / beans / berries ) from the panicles, as the fruits on the panicle are of different age. Harvesting by stripping whole panicles results in having a mixture of over mature, mature and immature fruits. These will behave differently on drying and other processes. For cinnamon, farmers do not practice coppicing that facilitates the harvesting of young plants / shoots aged 2 - 3 years. This is the only practice that enables the production of quills which is the highest quality product. In the major production areas, farmers harvest trees aged more than 5 years. These are too big for obtaining barks that can be folded into quills. The only product possible is therefore in the form of chips of different sizes determined by the size / age of the tree.


Table 9 : Constraints in spices processing and value addition in the URT and potential solutions

SPICE VALUE CHAIN CURRENT STATUS Solutions

Clove

� Harvest by striping whole panicles, sometimes including twigs

� Drying without measuring moisture content

� In Zanzibar grading into CG1, CG2, CG3

� In Zanzibar purchase and export is the monopoly of the ZSTC

� In Mainland, simple drying is followed by selling to traders

� Sale without grading / sorting

� Harvest according to the grades ( Handpicked Selected / special, standard, and distillation grade )

� Facilitate marketing strategies

Pepper

� Harvesting at different stages of maturity in most cases before appropriate maturity



� Rarely processed into white pepper

� Sale in undefined packaging

� Harvesting at right stage of maturity

� Use of appropriate drying facilities

� Production of both black and white pepper products

� Grading and sorting needed

Ginger

� Mostly sale fresh rhizomes

� Few process into chips and powder


� Sale without defined packages

� Facilitate processing and marketing strategies

Cardamom

� Harvesting by stripping whole panicles



� Sale in undefined packaging

� Selective harvesting of individual mature pods

� Use of appropriate drying facilities

� Production of both green ( flue cured ) and yellow ( sun dried ) products

� Grading and sorting needed

Cinnamon

� Mostly peel barks from trees aged more than five years into chips


� Sale under undefined packaging

� Harvest two to three years old plants

� Process into quills

Vanilla

� Some sell green pods

� Some process to get dried pods

� Sale by grades

� Facilitate appropriate processing to get attractive pods

� Facilitate to get reliable market

2.3.10. EXPORT OF SPICES FROM URT

In relation to Tanzania’s agro industry, spices play a minor role today, compared to other crops ; the traditional cash crops and the food crops, in terms of their volume and export values as data in Tables 10 and 11 show.

Table 10 : Export of spices from Tanzania in 2011 and 2012

Spices2011 2012

Quantity ( Ton ) Value ( US$ ) Quantity ( Ton ) Value ( US$ )

Clove 2,306.4 31,053,332.3 5,958.2 37,076,457.5

Pepper 45.0 126,796.4 138.8 706,410.8

Chili 32.2 75,393.1 4.6 12,549.1

Cardamom 10.0 776.7 – –

Cinnamon 50.5 2,812.8 6.2 30,586.3

Ginger 8.6 4,420.2 – –

Coriander 132.6 82,738.7 – –

Vanilla 15.4 – – –

Turmeric 0.3 1,284.2 0.1 1,323.7

Other Spices 134.9 140,945.3 258.3 37,317.1

Source : TanTrade


Table 11 : Output and export value of traditional cash crops and food crops in the URT

Crop2011 2012

Quantity ( Ton ) Value ( US$ ) Quantity ( Ton ) Value ( US$ )

Coffee 40,455 146,000,000.0 54,800 186,600,000.0

Cotton 43,042 61,600,000.0 132,000 164,900,000.0

Sisal 13,800 16,900,000.0 13,500 18,400,000.0

Tea 27,113 47,200,000.0 27,200 56,100,000.0

Tobacco 74,022 281,200,000.0 105,600 350,100,000.0

Cashew nuts 117,041 107,000,000.0 130,900 142,600,000.0

Source : National Bureau of Statistics ( 2013 )

Cloves from Zanzibar & PembaZanzibar / Pemba export of cloves ( 12 % VO 3 ) to major destinations ( Figure 15 ) is fully controlled by the ZSTC. The product is packed in 40 kg jute bags and stowed in 20 ft – 10 ton or in 40 ft – 25 ton containers. ZSTC sells FOB Djibouti, this year 2014 at US $ 11,500 / ton. EU, USA and Japan buyers pay CAD4, while Indian and Indonesia must pay in advance. There seems to be a fair bit of unreported selling, reason why the export figures reported by ZSTC ( 2013 – 5,500 ton ; 2014 – 2,800 ton ) are biased and export from Zanzibar cloves is probably much higher. ZSTC ships the stems ( 3 % VO ) to Pemba, where they are extracted / distilled. ZSTC has a professional export department, familiar with export documents and logistical dynamics.

Figure 15 : Global Clove production and export destinations of clove exports from Zanzibar

Global Cloves production 2012 : 113.000 tonsZanzibar ranks 6 % with 6.850 tons

Zanzibar cloves exports destinations ( in 2012 )

Destination Quantity (Ton)

Singapore 2,070

UAE 1,580

India 618

Indonesia 200

Total 4,468

Source : FAO statitsics Source : ZSTC

It has been argued that the Zanzibar export partly consists of cloves that were bought from Comoros and Madagascar, where the price at the farm gate is usually lower than in Zanzibar.

3.– VO = Volatile Oil4.– CAD = Cash Against Documents


Spice export from mainland TanzaniaTanzania-Mainland Spice exports are predominantly to neighbouring countries within the East Africa Community Unit ( EAC : Rwanda, Burundi, Tanzania, Kenya and Uganda ).Sales are also made to the COMESA block ( Zambia, Zimbabwe, Democratic Republic of Congo, South Africa and Tanzania ). Exports to Somalia have declined due to political unrest. Considerable large quantities are also sold to other African countries, including Nigeria and Eritrea.

Volumes are mainly shipped by truck ( Figure 16 ) and might take transfer times of 3-5 days. It concerns cinnamon, black pepper, cloves and cardamom. Packaging is basic and no quality standards or written specifications are being applied by customers. Statistics are not available.

Figure 16 : Mode of transportation and packaging for export trade of spices from Tanzania Mainland to Regional markets.

Road transport to EAC countries

Packaging to EAC countries


Organic spice export in retail packagingSome middle scale farmers produce, process and export products that are certified organic. Two companies ; Golden Food Products ( GFP ) and Kimango Farmers Limited are well-known. GFP is based in Arusha. It produces on its own farms and buys from small scale farmers and their associations, particularly from the Usambara Mountains, Tanga region. It packages and sells organic spices, including black and white pepper, cardamom, lemon grass, cloves, cinnamon and ginger. The company is ISO 22000 and HACCP certified and has received organic certification from the Institute for Market Ecology ( IMO ). GFP originally exported through Doens Food Ingredients from The Netherlands, but is now connected to Organic Food Ingredients Sagl ( OFI ) from Switzerland and to Diafood France ( DFF ) ( http : / / www.gfp.co.tz ).

Kimango Farm Enterprises Ltd. operates two farms, Mbuyuni Farm close to the town of Morogoro, and Wami River Farm on the Mkata Plains in Mvomero district about one hour from Morogoro. The farms are certified organic IMO. The farms’ main crops include chili, lemongrass, hibiscus and paprika. The farms produce and process about 25 ton of herbal teas and spices annually. Most of the produce is exported to Germany, Italy and Switzerland where they are sold in health food markets. The products are exported in 15-25 kg units by sea container. In 2004, the farms’ products were awarded the “excellent” status for overall quality ( colour, taste, residues etc. ) by the prestigious Oekotest Institut in Germany. A small quantity of processed lemongrass and hibiscus is sold locally and on the East African Market under the “African Infusions” label ( http : / / www.kimango.com ).

Other companies that are known to produce organic spices for export are listed in Table 12 below. These do not produce crops themselves. Instead, small scale farmers carry out the organic production under special arrangements with them.

Table 12 : Other Certified Organic Spices Producing / Trading Companies in Tanzania

Name of the Firm Organic Production area Products

Tanzania Organic Products Ltd ( TAZOP ) Zanzibar, Tanga, Kigoma Herbs and spices

Zanz-Germ Enterprises Ltd Zanzibar, Tanga, KigomaHerbs and spices ( Ginger, pepper,

turmeric, chili and lemongrass )

Clove Stem Oil Distillery ( CSOD ) PembaEssential oils : Lemon grass oil, cinnamon leaf oil, eucalyptus oil and sweet basil oil

Evasa T Arusha Exporter of Paprika to Spain

Tanzania Spices Ltd Iringa Exporter of Paprika

Zanz-Germ Zanzibar, Tanga, Mbeya & KigomaExporter of Chili, cardamom, cinnamon,

lemongrass, pepper

Source : EPOPA ( 2004 )

3. INSTITUTIONAL AND GOVERNMENTAL SUPPORT AVAILABLE FOR THE SECTOR 37

3. INSTITUTIONAL AND GOVERNMENTAL SUPPORT AVAILABLE FOR THE SECTOR

3.1. THE GOVERNMENTThe government of the United Republic of Tanzania has ministries that directly or indirectly support the agricultural sector. These ministries are termed the Agriculture Sector Lead Ministries ( ASLMs ). They include : Ministry of Agriculture, Food Security and Cooperatives ( MAFC ), Ministry of Livestock Development and Fisheries ( MLDF ), Ministry of Industries, Trade and Marketing ( MITM ), Ministry of Water and Irrigation ( MoWI ) and the Prime Minister’s Office, Regional Administration and Local Government ( PMO-RALG ). These Ministries are responsible for the overall supervision and coordination of implementation of the Agriculture Sector Development Programme ( ASDP ), which is the national scope formulated in 2003.

MAFC has a number research and training institutions that conduct research and offer training of technicians at certificate and diploma levels in the various fields of crops production. The HORTI Tengeru based in Arusha, offers specialized training in horticul-ture at diploma level and is currently the most relevant to spice crops production. The Agricultural Research Institutes ( ARIs ) are based in each of the seven agro-ecological zones on the mainland. MAFSC also runs Zonal irrigation offices to support the es-tablishment and management of irrigation schemes for agricultural production. Under the Ministry of Agriculture and Natural Resources ( MANR ) in Zanzibar, the Zanzibar Agricultural research Institute ( ZARI ) and the Kizimbani Agricultural Training institute ( KATI ) play a similar role in Zanzibar.

The PMO-RALG oversees ASDP implementation at Local Government level. In the current setting of the URT Government on the mainland, Local Government Authorities ( LGAs ) are charged with the formulation, coordination and supervision of the imple-mentation of all plans for economic, industrial and social development in their areas of jurisdiction, i.e., at district levels. In this respect, the LGAs manage the agriculture extension services. Thus the District Agricultural, Irrigation and Cooperative Officers ( DAICOs ) and the agricultural extension officers work under the LGAs.

The MITM leads the marketing, processing, value addition and quality control through agencies ; the Tanzania Trade Agency ( TanTrade ), the Small Industry Development Organization ( SIDO ), and the Tanzania Bureau of Standards ( TBS ). TanTrade facilitates trade / marketing, particularly the export businesses. Among other activities, each year it organizes an international trade fair in Dar es Salaam that takes place from 1st to 7th July. SIDO has a wide range of functions, from policy formulation to direct hands-on support in the establishment of small and medium processing enterprises ( SMEs ). The Tanzanian Food Processors Association ( TAFOPA ) is an example of an association that was created under the support of SIDO and other partners. TBS is the national agency for the development and management / control of products quality standards.

Other Government institutions include the Sokoine University of Agriculture ( SUA ), under the Ministry of Education and Vocational Training and the Tanzania Food and Drugs Agency ( TFDA ) under the Ministry of Health and Social Welfare and the Tanzania Chamber of Commerce, Industry and Agriculture ( TCCIA ). SUA has a nation-wide

3. INSTITUTIONAL AND GOVERNMENTAL SUPPORT AVAILABLE FOR THE SECTOR38

mandate for research and outreach in agriculture. It offers graduate and postgraduate training in the various fields of agriculture including crop production, processing, value addition and agri-business. The University conducts outreach activities in collaboration with LGAs and other stakeholders. TFDA is a regulatory body responsible for controlling the quality, safety and effectiveness of food, drugs, herbal drugs, cosmetics and medical devices. The agency evaluates and registers the products before they are approved for distribution and marketing in the country. TCCIA is a government agency with a mandate to promote business and industry, and to facilitate an interface between the private sector and public sector in the country.

Zanzibar State Trading Corporation ( ZSTC ) is a government organization that has the Government authority to buy from farmers’ agricultural products such as cloves, copra, sea–shells, sea weeds, chillies, essential oils from cloves, eucalyptus, cinnamon, lemongrass and sweet basil oil and selling it abroad. It also provides planting materials from plant nurseries for clove trees.

3.2. PRIVATE ASSOCIATIONSBoth business and farmers association / organizations exist that support agriculture and the spice subsector. Examples of these include ; the Tanzania Horticultural Association ( TAHA ), the Network of Farmers Association in Tanzania ( MVIWATA ). Subsector based farmers associations also do exist. A good example is JUWAKIHUMA ( Jumuiya ya Wakulima wa Kilimo Hai Usambara Mashariki ) an acronym for Association of Organic Farmers in the East Usambaras. Others include, the Agricultural and Marketing Cooperative Society ( AMCOS ) that deals with ginger processing and marketing in Same district and MAYAWA ( acronym for Farmers Development ) that deals with vanilla in Kagera region. These are able to bring together producers, processors and traders in the spice sub sector.

Other relevant partners include the Tanzania Organic Agriculture Movements ( TOAM ) and the Tanzania Organic Certification ( TanCert ). These are organizations promoting organic agriculture production. TOAM is the national umbrella organisation for organic agriculture linked to the International Federation of Organic Agriculture Movements ( IFOAM ). TOAM and TanCert coordinate and promote the development of the organic farming sector in Tanzania. They undertake : awareness creation, capacity building, in-creasing competences of trainers, extension staff and facilitators, Information, Lobbying and Advocacy, linkages and networking, setting standards, establishment and registra-tion of logos for Tanzanian organic products and certification for organic products. Moreover, registered and non-registered activities initiated by private businesses do exist that deal in spice production, processing and export trade. Some of these include ; the KIMANGO Farm Limited, Golden Food Product ( GFP ), ZANOP, TAZOP to mention a few.

3.3. DEVELOPMENT PARTNERSDevelopment Partners such as the United States Agency for International Development ( USAID ), BEST-Dialogue, the Royal Netherlands Embassy, Finnish Government and the ITC are largely involved in supporting stakeholders in the Horticulture subsector. While most of these partners and donors may support a wide range of activities in agriculture, some have placed particular attention to the spices sub sector development. USAID through TAPP ( Tanzania Agricultural Productivity Program ) is for example supporting TOAM and TanCert in promoting organic spice production, while the Finnish Government and ITC directly support spices production and trade promotion.

4. VALUE CHAIN DYNAMICS AND CHALLENGES 39

4. VALUE CHAIN DYNAMICS AND CHALLENGES

4.1. TRENDS & CHALLENGES IN THE GLOBAL SPICE SUPPLY CHAIN

With the upgrading of milling equipment in countries of origin and the stricter procedures followed by suppliers, clients in the USA, EU and Japan, have increased confidence to source ground Spice directly. For chillies and turmeric, origin grinding is already common for years. At the same time, these 2 crops have caused most of the food scandals with adulteration in the last 10 years. The relation between pricing of whole spice and ground spice becomes more transparent, helping clients to understand that one spoonful of pure spice is less costly than 2 spoons full of “filled” spice. Today, Spice companies in the destination markets dedicate themselves to developing blends for food industry ; or packing whole and ground spice in retail and food service containers. We have already seen grinding stopped in the UK ( 2006 ), in Scandinavia ( 2007 ), and being reduced in The Netherlands, France and Germany.

Table 13 : Quality players in origin, who supply ground spice at ESA and ASTA 5 standards

Olam, processing in India and Vietnam

Nedspice, processing in Vietnam and India

Laxmi processing in Mumbai – IndiaAVT McCormick

Processing in Cochin India

Indo harvest, processing in Indonesia

Table 13 presents a list of the well-known quality players in origin, who supply ground spice at based on the ESA and ASTA standards. For origins which are not yet well established such as Tanzania, customers prefer to buy whole, sliced or broken spice ; of which the identity can be controlled easily.

For Capsicums ( chilli peppers and paprika ), end-users require blends that are specific in colour and pungency ( “heat” ). Colour is measured in ASTA : 60 for brown, 120 for bright red. Another measure is IC ( International colour ) units ; whereby 100,000 IC = 100 ASTA.

5.– ASTA = American Spice Trade Association


Pungency is measured in SHU-Scoville Heat Units : 10,000 for mild, 120,000 for very hot. It requires proficient blending of different varieties and origins and which can only be done by specialized grinders. Most expertise can be found in Spain – Murcia, where paprika and chillies are imported in broken form from China, Peru, Hungary, Africa and then ground and blended into client-specific pungency and colour.

Scandals with illegal dyes in chillies and turmeric mainly from India, but also from China, have resulted in stricter controls at the EU border of these ground materials. This New EU ruling 669 / 2009 dictates that from January 2010 for high risk-products a control at the port of EU-entry is obligatory, subject to :

� Aflatoxin testing on 50 % of shipments with nutmeg-ginger-turmeric-capsicums from India � Sudan dye testing on 20 % of shipments with capsicum-turmeric-curry from all origins.

4.2. TRENDS & CHALLENGES IN THE SPICE SUPPLY CHAIN OF TANZANIA

4.2.1. SELLING BY THE SMALL HOLDER

The majority of spices producers are small-scale farmers located in rural areas. They neither apply any soil amendments nor pesticides. For some crops ( e.g. cardamom ), production is often managed under the natural forests. These farmers are considered to be growing spices organically by default. Nevertheless, the recent need for certification of organically produced products in spice producing countries has led to the categoriza-tion between organic and conventional spice farmers. Small scale farmers certified to grow spices organically are obliged to sell their produce to the agent who facilitated their certification. In most cases these are large scale organic farmers or buyers. However, for several socio-economic reasons, it has been somehow difficult to control them. Consequently, it is also common for the small scale organic farmers to sell their products to middleman who buy conventional types and will not pay a premium for organic.

Akyoo and Lazaro ( 2008 ) compared the benefits of conventional and organic production of pepper and chillies. They reported that there was no difference in benefits between the two different production systems as there was no premium price offered to organic produces.

Spice production in the URT has attracted potential traders from different parts of the country, neighbouring countries ( Kenya and Uganda ) as well as within the region ( SADC and COMESA ). It is also known for example, that most of the processed Vanilla beans ( 99.1 % ), is sold outside the country, mostly in America and Europe. Local consumption is very low.

4.2.2. PRICE LEVELS FROM FARMER TO COLLECTOR AND PROFITABILITY ANALYSIS

Table 14 and 15 present examples of the average prices of spices that trader offer to farmers and for retails on the local markets. There is no study that has analysed the production cost and the income of spice crops in Tanzania to enable analysis of profitability. Reyes et al. ( 2006 ), made a comparison between the income of cardamom growers and those growing other crops. The authors indicate that about 60 % of the highland farmers in the East Usambaras grow cardamom, and cardamom farms cover approximately half of the total land area allocated to cash crops. According to Mpanda et al. ( 2014 ), the contribution of cardamom to the average household income in the area is about 30 %, and it accounts for more than 50 % of total cash-crop income. Cardamom growers are considered to be better off than other semi-subsistence farmers, although their income is still far below the national per capita average.


On the overall and taking into consideration the case of the perennial spice crops ( car-damom, cinnamon, clove and pepper ), the type of cropping system described above and the fact that minimal production inputs are applied, production costs would be low compared to other crops ( cereals, vegetables and fruits ) grown in the same areas. Consequently, spice crop production is potentially more profitable than the traditional cash and food crops.

Table 14 : Average prices ( in T. Shillings ) of spices in Morogoro district*

Spice crop Farmer Price Middleman price

1. Pepper 7,000 10,000 – 15,000

2. Clove ( flower buds ) 9,000 – 16,000 12,000 – 19,000

3. Cardamom 10,000 – 15,000 30,000 – 40,000

4.Cinnamon ( bark ) 1,000 – 1,500 1,500 – 2,000

Cinnamon ( leaves ) 300 600

5. Ginger ( fresh ) 2,000 – 3,500 3,000 – 4,000

6. Chillies 1,000 – 2,000 3,000 – 5,000

17.Vanilla unprocessed

Processed beansGrades 1-3 : 8,500 / kg Grade 4 : TS. 1,000 / kg.

1 kg of processed / dried beans is 6 times the price of unprocessed beans.

*Exchange rate : 1700 T. Shillings = 1 US $ ( December 2014 )

Table 15 : Ginger prices ( in T. Shillings ) by different buyers

Processor Price range 2011 Form

TAZOP Sh. 5,000-6,000 / kg dried

GFP Sh. 1,500-2,000 / kg fresh

ZANOP Sh. 12,000 / kg dried chips

Source : BTC ( 2012 )

The spices market lacks quality control systems and therefore buyers need to do extra work to ensure that they get quality produces. While farmers loose extra income that would be obtained by grading and sorting their produces, the market accepts non-graded produces. There is poor linkage between farmers and buyers. In many places, farmers and buyers do not have direct access to each other, as they are blocked to meet by brokers and middleman traders. Therefore the market is controlled by middleman and brokers. This increases the price to buyer and also reduces the price at the farm gate. Few established collecting centres do not serve as market places as expected, since most of the crop is sold at the farm gate. It is also common to have produces sold even before being harvested. Table 16 summarises the current market challenges for spice in the URT.

Table 16 : Market Constraints and solutions in the URT

Market Items Current challenges / status Possible solution

Buyers and farmers do not have direct contactFacilitate and develop strong market linkage

between buyers and farmers

Selling / market places Sales done at home or in the field Establish bylaws ; Sale at authorized places only

Selling period / time Sometimes sale done before harvesting Establish bylaws ; Sale at authorized places only

Prices Low farm gate priceFacilitate market information

Reduce middleman traders involvement

Packaging Undefined packaging materialsBuyers to buy and pack produces in defined

packaging materials

Grades / Sorting No grades / sortingTrain farmers and market facilitators on produce

quality standards


4.2.3. SUPPLY CHAIN OF SPICES IN URT

The spices value chain in the URT is presented in Figure 17. In the Value Chain we can distinguish 4 groups or categories :

i. Organic Certified Spices : a small segment ( < 5 % of spice output ), dominated by Middle scale producers and processors. Tracking & Tracing is certified, the products are packed in retail packaging and sold to import houses in Europe. For example : OFI of Switzerland and DFI from France and health food markets in Germany.Although some farmers in the East Usambaras are certified organic they do not realize additional prices and therefore they also sell their produce to the conventional market ( Pers. com., Wards Extension Officers in the East Usambaras ).

ii. Non-certified to the national market : the dominant segment, where dried spice are packed in small unbranded plastic bags and sold on street markets to the Tanzanian people ( Figure 18 ). Often national market prices are higher than export prices because local demand is high and output is not adequate.

iii. Non-certified to export : these are packed in big parcels and trucked to regional markets ( East Africa, COMESA and countries nearby like Somalia ). Documents are not needed, standards are lacking. This category includes exports to the Middle East and Asia. These do not pose strict standards’ requirements. However, proper documentation is required.

iv. Cloves from Zanzibar : the trade is monopolized by ZSTC ; international standards are met, products are packed in 40 kg bags, export documents are in order.

Figure 17 : Value Chain analysis of the Spice Subsector in the URT ( based on the ITC Template )


Figure 18 : Spices in retail and in bulk

Sales on local food stalls

Preparing big parcels for export


4.3. ISSUES IN THE VALUE CHAIN AS IDENTIFIED IN THE STAKEHOLDERS’ WORKSHOP

Challenges in the spice subsector was already addressed in sections 2.3.7 – 2.3.10. During the stakeholders’ workshop, participants further identified the various develop-ment challenges as presented Appendix 12 and analysed in Figure 19 relative to the value chain. More explicitly the participants mentioned the following as major issues :

� Lack of standards, which if well implemented would avoid immature harvesting ( in the case of pepper, cardamom and vanilla ) ;

� Lack of knowledge and skills to dry properly and achieve good quality ; � Low prices offered at the farm gate ; � Lack of price differentiation based on quality ( e.g., whole vs sliced ginger, high Bulk

Density pepper vs unsorted ) or between organic and conventional produces ; � Existence of many middleman traders who do not allow farmers to meet market

partners ; � Low yield and low output, insufficient volume for local demand.

The value of spices is influenced by primary production factors as well as harvesting and post-harvest factors. Cultural practices can determine the value of the produce. On the basis of these there are two categories of produces namely ; organically produced spices and conventional products. Organic spices are considered to have a relatively higher price compared to conventional ones. For example, Reyes et al. ( 2006 ) explained that, in the East Usambaras, where smallholder farmers do not use mineral fertilizers or agricultural chemicals, the promotion of organic cardamom cultivation would additionally raise the value of the product on the market by up to 30-40 % as demand exceeds supply. Although some farmers in the East Usambaras are certified organic they do not realize additional prices and therefore they sell their produce to the conventional market ( Pers. com. Wards Extension Officers in the East Usambaras ).

Photo: © shutterstock


Figure 19 : Spices sector development challenges ( Numbers provide linkage between the challenges Development actions proposed in Table 20 )

Business, Trade and Extension Support Services

Development Challenges

ExportSIDO, TanTrade,

TRA, TCCIA, ZSTC

1f

Cost of compliance to inter-national standards and regula-tions

1g

Local prices are equal to or higher than in the export mar-kets

1h

Lack of knowledge in export pro-cedure and documenta-tion

1i

Lack of stand-ards and regula-tions for export markets

1j

Low availabil-ity of supply compared to current de-mand

Retailing

SIDO, TanTrade,

LGAs, TCCIA, ZSTC, TFDA, ZFDA, TBS

2c

Low / poor access to packag-ing in rural community

2dLack of quality in-spection

Wholesale

BulkSIDO, TBS, TFDA, ZFDA

3dLack of testing equipment

3eLack of quality in-spection

Storage, Pro-cessing and packaging

TBS, SIDO

TFDA, ZFDA, SUA

4c

Lack of trace-ability / food safety is-sues

4dLow / poor access to packaging

4eLack of test-ing equip-ment

4fLow quality and capacity of processing and storage facility

Trading and Transporta-tion

MITM, TCCIA, TanTrade, ZSTC

5e

Lack of organized market informa-tion sys-tems / ser-vices

5f

Existence of numer-ous mid-dlemen / collectors

Production, harvesting

drying and cleaning

LGAs, SUA, ZARI MAFC, MANR, TOAM, TanCert, TAHA, SIDO, KATI

6gLack of sec-tor coordi-nation

6h

Lack of agronomic and post-harvest knowledge

6i

Lack of ef-fective busi-ness model for farmer groups / col-lection cen-tres

6h

No ac-cess to market informa-tion

6i

Low farm gate price. Not linked to quality

6jLack of production records

Input Supply

MAFC, SUA,ZARI, KATI, Agro-dealers, Farm-ers

7bShortage of planting materials

7cLack of quality packaging ma-terials

5. ROADMAP FOR THE DEVELOPMENT OF THE SPICES SECTORIN THE URT46

5. ROADMAP FOR THE DEVELOPMENT OF THE SPICES SECTORIN THE URT

5.1. IMPROVEMENT OF SPICES GROWING, HARVESTING, PROCESSING AND COLLECTING

Development actions to the spice subsector proposed at the stakeholder were as presented in Appendices 13-15. The actions are summarised in Figure 20 in relation to the value chain.

Spices production can be improved within the production areas by improving cultural practices and also by expanding production to other new areas. Focus could be on the spices most in demand by target markets, for example : capsicums, pepper, ginger ( Table 17 ).

Table 17 : Examples of spices in high demand for the export market

For export focus on :

i. Capsicums : the fastest growing spice worldwide ;

ii. Black pepper : the gap increases between supply and demand ;

iii. Ginger : target markets like the African ginger for taste, VO content and pungency.

5. ROADMAP FOR THE DEVELOPMENT OF THE SPICES SECTORIN THE URT 47

Relevant research institutions need to be given the opportunity to find solutions to factors hindering the exploitation of spice crops performance potential. Appropriate measures need to be taken at the nurseries up to the field levels during production as well as at post-harvesting handling and market levels.

Harvesting is mainly conducted by farmers and occasionally organized by traders / buy-ers. This is followed by drying which constitutes the basic processing for almost all spices. Proper post-harvest treatment, particularly drying, will enhance both quality and harvest volume. Drying is largely performed by the farmers at their premises or by traders at markets or collecting centres. The process entails essentially spreading the produce on an appropriate recipient and exposing them to the open sun.

Processing after drying usually includes grinding, mixing, blending and packaging. These are done by traders and are destined for the local markets, simply because export markets are hesitant to purchase processed spices for fear of adulteration.

Establishment of collecting centres at relevant places with cleaning facilities is impera-tive and required. They must meet standards for processed products acceptable for human consumption. Facilitating availability of updated reliable market information to small-scale farmers is crucial to strengthening their decision making on harvesting and processing.

Source : FAOStat

World consumption of spices grows fast. Production in dry form ( <12 % moisture ), is estimated at 6,000,000 tons per annum. About 2 / 3 of this quantity is “captive use” in the countries of origin. The largest spice is chillies, today over 3 million tons are consumed annually. Next comes ginger, fresh and dried, with an annual world production of over 2 million tons.


Figure 20 : Proposed actions to Spice Sector Development ( Numbers provide linkage between challenges ( Table 19 ) and the Development actions )

Business, Trade and Extension Support Services

Proposed actions to Spice Sector Development

Export

SIDO, Tan-Trade,

TRA, TCCIA , ZSTC

1f

Create sub sector de-velopment Organiza-tion / Board

1g

Promote produc-tion / Develop new production areas

1h

Improve GMP / GAP practices and certifi-cation

1i

Cre-ate sub sector devel-opment Organi-zation / Board

1j

Improve production skills / De-velop new production areas

Retailing

SIDO, Tan-Trade, ZSTC, LGAs, TC-CIA, TBS, TFDA, ZFDA

2c

Strengthen SIDO to improve access to packaging

2dStrengthen TBS, TFDA, ZFDA to un-dertake quality inspection

Wholesale

BulkSIDO,TBS, TFDA, ZFDA

3d & eStrengthen SIDO,TBS, TFDA, ZFDA to improve access to testing equipment and undertaking quality inspection

Storage, Processing and pack-aging

TBS, SIDO

TFDA, ZFDA, SUA

4c

Train farm-ers & processors on quality and safety issues

4dOrganize group purchase of pack-aging materials

4e & f

Strengthen SIDO to im-prove access to machin-ery / packaging / testing equipment

Trading and Transporta-tion

MITM, TC-CIA,

TanTrade, ZSTC,

MoT

5eCreate sec-tor associa-tions

5fCreate sub sector development Or-ganization / Board

Production, harvesting, drying and cleaning

LGAs, SUA, ZARI MAFC, MANR, TOAM, TanCert, TAHA, SIDO, KATI, TBS

6gCreate sec-tor associa-tions

6h

Train farm-ers and Extension agents

6i

Establish re-search and demonstration plots. Facilitate exchange visits

6h

Create sub sector de-velopment Organiza-tion / Board

6i

Estab-lish quality stand-ards linked to price at all levels.

6j

Develop record keeping system at all levels

Input Sup-ply

MAFC, ZARI, SUA,KATI, Agro-deal-ers, Farmers

7b ( i )Train farm-ers / nurs-ery men

7b ( ii )

Facilitate introduction and evaluation of new varieties

7cOrganize group pur-chase of packaging materials


5.2. ACTIONS AND PRIORITY SETTING FOR TARGET MARKETS

Growing export can only result if output reaches a surplus over local demand :

The first priority is to improve post-harvest treatment ( Figure 21 ). This can be done within the present regime of smallholder farming, whereby the farmer grows many different crops on a small plot and thereby has the advantages of a regular income ( every period there is some crop to sell ) and low operational costs : the ecological equilibrium in itself discourages pests and diseases.

Figure 21 : Actions to improve post-harvest treatment of spices in the URT


Second priority is to select high yielding varieties and introduce plantation systems to allow for a higher output per hectare and plant larger acreages ( Figure 22 ). Those steps will result in a surplus-over-local demand that can be exported.

Figure 22 : Actions to improve spices yield in the URT


Third priority is to distinguish between 1st and 2nd grade produce and introduce value adding steps that result in quality of dry spice which meets international standards ( Figure 23 ).

Figure 23 : Actions to improve quality of spices in the URT


Fourth priority is to set standards for export spices, enforce compliance and give penal-ties to exporters who do not comply ( Figure 24 ) and to employ professional quality control agencies6.

Figure 24 : Actions to set and manage quality standards of spices in the URT

6.– SGS Tanzania Superintendence Co., Limited Nelson Mandela Road, Kurasini Near TPA Gate No. 5, P.O. Box 2249, Dar Es Salaam, 2249 Tanzania. t : +255 22 213 21 31 / 211 65 82 / 211 39 82 / 211 26 27

f : +255 22 211 35 16. website :- http : / / www.sgs.co.tz / en / Office-Directory.aspx


The fifth is to create the professional environment in terms of packaging, logistics, export documentation ( Figure 25 ) and export financing that smoothen the export.

Figure 25 : Export logistics for spices in the URT

5.3. MAIN STRATEGY OBJECTIVES FOR THE TARGET MARKETS :

Matching local market demand by small holders :

� Instruct farmers to train plants low at 2 meters height, this facilitates harvesting � Instruct farmers to practice coppicing to improve cinnamon produce quality � Be clear about harvesting standards : do not harvest unripe fruits � Practice proper cleaning and sorting of produces to exclude extraneous matter � Introduce a plantation system to increase acreage and yield( Figure 26 ( a ) ) � Establish plant nurseries to supply quality planting materials ( Figure 26 ( b ) ) � Install local collecting centres which pay transparent prices at delivery � Use of Tanzania’s mobile telephone ( Airtel, Tigo, Vodacom and Zantel ) systems to

smoothen payments between farmers and collectors ( Figure 26 ( c ) ).


Figure 26 : Established cinnamon plantation ( a ), Plant nursery for provision of spices seedlings ( b ) and facility for mobile telephone payments

( a ) Cinnamon Plantation ( b ) Nursery ( c ) Mobile phone Payment

5.4. IMPLEMENTING FRAMEWORKThe Stakeholder Workshop held on the 6 th of November 2014 proposed actions for the development of the sector presented Appendix 13 and summarized in Figure 30. Based on these proposed actions, a Road Map or Implementation framework is proposed as shown in Table 18. The framework has three prioritized main objectives and a total of five specific objectives which provides several activities to be undertaken.

The main strategic objectives are geared at :-

1. Increasing production of spices in the URT in terms of volume and quality of spices to be produced by improvement of production and postharvest practices in order to meet local demand and demand in the export market ;

2. Improvement of storage, processing and packaging practices of spices for local and export markets in order to ensure quality and safety of the produce ;

3. To enhance export marketing of spices, through better organization of the sector. This will promote higher access of the Tanzanian spice produce to regional and international markets ;

R&D to establish better performing varieties ( higher yielding, early maturing / reach peak yield faster ).


Table 18 : Spice Sector Improvement Road map and Implementation Plan

Strategic objective number 1 : Increase quantity ( volume ) of spices produced to meet local and export market demands

Specific objectives Type of activityDirect re-cipients

Potential Imple-menting partners

Progress measures ( In-dicators )

External sup-port required

Priority Proposed activities

a. Impart on farmers skills in spice crops’ improved cultural practices

b. Introduce and evaluate new better performing varieties

c. Produce for sale to farmers high quality planting materials

d. Develop new production areas

e. Promote the establishment of plantations

f. Facilitate the establishment of irrigation facilities and construction of greenhouses

Production Farmers

LGAs ( DAICOs ), MAFC,MANR, SUA, ZARI, SUA, TAHA,KATI TOAM, TanCert

• Number of demonstration plots established

• Number of farmers, Extension staff, Nurserymen trained

• Number of nurseries established

• Available data• Number of new

varieties • Improved cultural

practices adopted• Increase in crop

yield• Increase in acreage• Number of new

production sites.• Number of certified

farms / businesses

Financ-ing through matching grants, ADF, ITC, BTC and other donors ITC, UNDP, FAO, IFAD, ADF,

Very high

1. Establish research and demonstration plots ;

2. Train farmers, Extension staff and nurserymen

3. Establish spice crops propagation nurseries

4. Introduce and select high yielding varieties

5. Develop record keeping system at all levels

6. Prepare “geo-maps” to promote investment opportunities

7. Strengthen SUA, HORTI-Tengeru, KATI and ARIs training and research activities on spices

8. Support production infrastructure development

9. Facilitate certification ( GMP / GAP, Organic )

Strategic objective number 2 : Improve quality of spices through improved post-harvest treatments

Specific objectives Type of activityDirect recipi-

ents

Potential Im-plementing

partners

Progress measures ( Indicators )

External support required


a. Improve harvesting practices

b. Improve drying techniques

c. Improve cleaning and sorting of produces to remove extraneous matter

d. Introduce produce grading

e. Introduce and evaluate new varieties

Harvesting, cleaning, drying and storage

Farmers,

Traders and Processors

SIDO, LGAs, ITC, BTC, SUA

• Number of farmers, traders and processors trained.

• Better drying and cleaning techniques and facilities in place

• Number of hand-outs produced and distributed

• Quality ranking of produces at markets

• Testing equipment and tools in use by farmers

Financing through match-ing grants, ADF, ITC, BTC and other do-nors ITC, UNDP, FAO, IFAD, ADF

Very high

1. Train farmers on appropriate harvesting stages and practices

2. Train farmers, traders and processors on appropriate drying, cleaning techniques and safety issues

3. Introduce raised platform drying techniques

4. Facilitate access to simple testing equipment and tools

5. Design simple hand-outs to guide farmers and collectors / traders

6. Establish produce quality grades


Strategic objective number 3 : Introduce value addition

Specific objectivesType of activity

Direct recip-ients


partners


External support re-quired


a. Re-design and upgrade processing facilities

b. Implement HCCP rules at all levels from drying to processing

c. Strengthen SIDO to improve access to appropriate processing facilities

d. Establish produce quality standards and training on awareness of standards

e. Strengthen TBS, TFDA, ZFDA to undertake quality inspection and enforce compliance

Value addi-tion

Farmers, middlemen and Proces-sors

SIDO, LGAs

TBS, TFDA, ZFDA

• Testing equipment and tools in use by farmers

• Number, capacity and quality of processing facilities put in place and in use

• Available Produce inspection procedures and reports

• Produce safety and quality reputations

• Export market acceptance

Financ-ing through matching grants, ADF, ITC, BTC and other donors ITC, UNDP, FAO, IFAD, ADF

High

1. Train farmers and processors on quality and safety standards and e of testing equipment and tools

2. Strengthen SIDO to improve access to machinery

3. Identify and formulate produce quality specifications

4. Design simple hand-outs to guide farmers and collectors for major spice crops

Strategic objective number 4 : Improve produce storage and packaging


Direct re-cipients


partners


External support required


a. Strengthen SIDO to improve access to appropriate packaging materials and facilities

b. Strengthen SIDO to improve access to appropriate processing storage facilities

Storage and Pack-aging

Farmers, Farmers as-sociations, Middlemen / Traders, Processors

SIDO, Farm-ers Asso-ciations, ITC, BTC,

• Quantity and quality of packaging material in use

• Capacity of storage facilities in place

• Number and type of sector associations formed

• Services provided by the associations

• Number of members to associations

Financing through match-ing grants, ADF, ITC, BTC and other do-nors

High

1. Train Farmers and Processors on quality and safety issues

2. Train Farmers, Middlemen, Collectors and Processors on appropriate packaging, storage and processing facilities

3. Organize group purchase of packaging materials

4. Create sector associations

Strategic objective number 5 : Improve Spices export trade facilitation


Direct re-cipients


partners

Progress measures ( In-dicators )

External support re-

quiredPriority Proposed activities

a. Create sub sector development Organization or Board to oversee the development of the sector

b. Establish quality standards linked to price at all levels

c. Link farmers / middlemen to potential reliable buyers

d. Ensure access to timely market information dissemination

e. Establish export finance support

f. Strengthen TanTrade to facilitate access to export logistics

Trade facilita-tion

Small scale farmers, Farmers as-sociations, Medium scale farm-ers,

Traders and Policy Mak-ers

MAFC,

TanTrade, ZSTC, LGAs, TCCIA, TBS, SUA, MITM, TRA,

ITC, BTC,

Financial Institutions

• Existence of Spice subsector board

• Facilitated Export trade of spices

• Spices sold by grades

• Number of Farmers traders and processors selling spices abroad

• Percentage increase in spice export trade

Financ-ing through matching grants, ADF, ITC, BTC and other donors

Very high

1. Develop record keeping system at all levels in production

2. Train farmers and processors on quality and safety issues

3. Train farmers / farmers association / Middlemen on trading, documentation and transportation logistics

4. Establish collecting centres5. Appoint professional

quality control agencies6. Facilitate participation to

international trade fairs and missions Write export documentation instructions

6. EXPORT RECOMMENDATIONS & SHORT TERM ACTIONS 57

6. EXPORT RECOMMENDATIONS & SHORT TERM ACTIONS

6.1. SPICES AND COUNTRIES TO FOCUS ON FOR EXPORT

6.1.1. FOR THE SHORT TERM, WE RECOMMEND TO FOCUS ON THE FOLLOWING SPICES

i. Black Pepper, because standards are very clear ; post-harvest treatment by small-holders ( i.e. drying down to < 12 % moisture ) is relatively simple, the gap between world production and world demand is increasing rapidly, export prices are firmand demand is there from EU, USA, India / Asia.

ii. Cloves from mainland Tanzania, because standards are very clear ; post-harvest treatment by smallholders ( i.e. drying down to < 12 % moisture ) is relatively simple, Tanzania mainland is planting many clove trees in a plantation setting, there is no restriction by a state monopoly like in Zanzibar ( ZSTC ), export prices are firm ; demand is there from Singapore & Indonesia and also from Southern Europe.

6.1.2. FOR THE MEDIUM TERM, EXPORT PORTFOLIO IN TANZANIA CAN BE EXPANDED TO :

a. Ginger, whereby post-harvest treatment must be organised centrally ; it includes washing and slicing immediately after harvesting, then drying.

b. Cardamom, although the demand for Tanzanian quality is for now unclear, post-harvest treatment ( drying ) is simple and export prices are firm.

There is for the moment a limited export market potential for :

i. Chillies : selection and drying post-harvest must be very strict and competition is high ;

ii. Cinnamon : Tanzania can for now only supply chips, no quills ;iii. Coriander seeds : competition is high and iv. Vanilla : supply is limited in Tanzania and processing post-harvest is delicate.

6.2. ACTIONS AND PRIORITY SETTING FOR EU EXPORT MARKETS

For the short term, export to EU countries or to Asian processors who supply blends to the EU, can be developed and increased, through the following actions :

Introduction and enforcement of ESA Standards for Pepper, Clove, GingerThe ESA specifications for Pepper and Clove are presented in Appendices 14 and 15 respectively, as examples. The team of expert proposed during the stakeholder meeting ( Appendix 17 ) will need to familiarize with these and design a simple hand-out to guide farmers and collectors. It is important that all players in the supply chain are aware of

6. EXPORT RECOMMENDATIONS & SHORT TERM ACTIONS58

these and comply with them. It is for the Tanzanian authorities to enforce compliance and penalize abuse.

Improvement of grading, cleaning and drying post-harvestGood post-harvest selection ( grading ), cleaning, drying on raised beds to avoid con-tamination and avoidance of dirty storage are key to reach export quality, including satisfying phytosanitary requirements.

Enforcement of Representative pre-shipment samplingThis is defined in EU regulation no 401 / 2006, Annex I sub E2 and reads as follows :

i. for each lot of 25 ton, 100 samples must be taken of 100 g each ;ii. The aggregate weight of 10 kg must be homogenised, so that sub samples of 200

g ; will be fully representative for the 25 ton lot. Alternatively, for a shipment of 25 kg ; bags, e.g. a 20 ft container with 15 ton of black pepper containing 600 bags ;

iii. The number of samples equals the square root of the number of bags + 1 iv. SQRT 600 = 24 + 1 = 25 stitches of 200 g each ;v. The aggregate sample of 25 x 200 g = 5 kg must be homogenised, so that subsam-

ples of 200 g will be fully representative for the 15 ton lot.

Facilitation in preparation of and access to Export Documentation and logisticsThe team of expert that was formed during the stakeholder workshop ( Appendix 18 ) should be facilitated to prepare sets of Export Documents and instructions for export to the EU and Asia. A set of the documents will generally consist of Packing List, Original Bill of Lading, Certificate of Origin, Health Certificate, Phytosanitary Certificate and Certificate of Fumigation.

7. REFERENCES 59

7. REFERENCES

Akyoo, A. and Lazaro, E. ( 2008 ). The Spice Industry in Tanzania : General Profile, Supply Chain Structure, and Food Standards Compliance Issues. DIIS Working Paper no 2007 / 8. DIIS. Denmark.

BTC ( 2013 ). An Assessment of Market potential for Vanilla Products in East Africa ( Tanzania, Kenya and Uganda )

BTC ( 2012 ).Organic spices in Tanzania : Opportunities for producers of organic ginger, chilli and vanilla

DAICO SAME ( 2014 ).A brief note of ginger production &processing in Same district

EPOPA ( 2004 ).Basic Data on Certified Organic Production and Export in Tanzania 2003. EPOPA, AB Bennekom, The Netherlands.

Hilal, Z. A. ( 2013 ) The Implication 0f Prevailing Marketing System In Production and Export : The Case of Cloves Production in Zanzibar. MA thesis. Institute of Social Studies, The Hague, The Netherlands. 56 p. Lovett, J.C. & S.K. Wasser, eds. 1993. Biogeography and Ecology of the Rain Forests of Eastern Africa. Cambridge University Press, Cambridge.

Masayanyika, S.W.S. ( 1995 ). Linking conservation with livelihood security. The case of East Usambara Mountains, Amani Division, Tanga region, Tanzania. M.Sc. thesis. International Institute for Aerospace Survey and Earth Sciences. Enschede. 109 p.

Mpanda, M., Munjuga, M., Reyes, T., Sad, A., Rutatina, F., Kimaro, A. and van Noordwijk, M. ( 2014 ). Allanblackia, butterflies and cardamom : sustaining livelihoods alongside biodiversity conservation on the forest–agroforestry interface in the East Usambara Mountains, Tanzania, Forests, Trees and Livelihoods, 23 :1-2, 127-142, DOI : 10.1080 / 14728028.2014.8952152014 Taylor & Francis. http : / / www.worldagroforestry.org / sea / Publications / files / journal / JA0586-14.PDF

Mayawa ( 2013 ). http : / / www.mayawa.org / opportunities.html

Muheza District Council Investment profile ( 2014. www.tanga.go.tz / index.php?option=com.

National Bureau of Statistics ( 2013 ). Statistical Abstracts 2012. Ministry of Finance. Dar es Salaam.

Purseglove, J.W., Brown, E.G., Green, C.L. and Robbins, S.R.J. ( 1981 ). Spices. Longman Group Limited, New York, p 719.

Reyes, T., Quiroz, R., Luukkanen, O. and de Mendiburu, F. ( 2009 ). Spice crops agro-forestry systems in the East Usambara Mountains, Tanzania : growth analysis. Springer Science+Business Media B.V.

Reyes, T., Luukkanen, O. and Quiroz, R. ( 2006 ). Small Cardamom—Precious for People, Harmful for Mountain Forests : Possibilities for Sustainable Cultivation in the East Usambaras, Tanzania. Mountain Research and Development. 26 : 131–137.

Reyes, T., Luukkanen, O. and Quiroz, R. ( 2010 ). Conservation and cardamom cultivation in nature reserve buffer zones in the East Usambara Mountains, Tanzania. J Sustain Forestry. 29 :696–715.

http://www.tanga.go.tz/index.php?option=com

APPENDICES60

APPENDICES

APPENDIX 1 : LIST OF SPICE CROPS PRODUCED IN THE URT

Common name Scientific name Family name Main part( s ) used

Spice plants

1. Pepper Piper nigrum L. Piperaceae Berries ( fruits )

2. Ginger Zingiber officinale L. Zingiberaceae Rhizomes

3. Cardamom Elettaria cardamomum Maton Zingiberaceae Capsules ( pods / fruits )

4. Onion Allium cepa Alliaceae bulb

5. Garlic Allium sativum L. Alliaceae cloves

6. Shallot Allium Alliaceae bulb

7. Leeks Allium porum Alliaceae Leaves

8. Other Alliums Allium spp Alliaceae leaves / bulb

9. Chillies and paprika Capsicum species Solanaceae Fruits

10. Nutmeg Myristica fragrans Houtt. Myristicaceae Nut and Mace

11. Vanilla Vanilla planifolia Andr. Orchidaceae Pods

12. Turmeric Curcuma longa L. Zingiberaceae Rhizomes

13. Celery Apium graviolens Apiaceae Leaves

14. Funnel Foeniculum vulgare Apiaceae Leaves

15. Mints Mentha spp Lamiaceae Leaves

16. Lemon verbena Aloysia spp Verbenaceae Leaves

17. Saffron Crocus sativus Iridaceae Flower stigma

18. Sage Salvia officinalis Lamiaceae Leaves

Spices and essential oil sources

19. Clove Syzygium aromaticum L. Myrtaceae Flower buds and stems

20. Cinnamon Cinnamomum zeylanicum Nees. Lauraceae Barks and leaves

21. Coriander Coriandrum sativum L. Apiaceae Seeds and leaves

22. Lemon grass Cymbopogon spp. Poaceae Leaves

23. Parsley Petrocelinum crispum Apiaceae Leaves

24. Dill Anethum graviolens Apiaceae Seed and leaves

25. Rosemary Rosemarinus officinalis Lamiaceae Leaves

26. Basil Ocimum basilicum Lamiaceae Leaves

Plants for extraction of essential oils

27. Citrus Citrus spp Rutaceae fruit

28. Ylang ylang Cananga odorata Annonaceae Flowers

29. Jasmine Jasminum spp. Oleaceae Flowers

30. Eucalyptus Eucalyptus spp. Myrtaceae Leaves and barks

31. Geranium Geranium spp. Geraniaceae Leaves and flowers

APPENDICES 61

APPENDIX 2 : OPTIMAL CLIMATIC REQUIREMENTS FOR MAJOR SPICE CROPS GROWN IN URT

Spice cropRainfall

( mm / year )Climate

Temperature ( 0C )

Altitude ( m asl )

Clove 1750- 2500 humid tropical 20-30 up to 1000

Pepper 2000-3000 Does not tolerate excessive heat or dryness 23 -32 0 to 1500

Ginger Over 1500 Tropical, subtropical and humid climate 25-30 300-900

Cardamom over 1500 Warm, humid, tropical forest 20-35 600-1000

Cinnamon Over 1750 High sunshine is needed 25-32 600-1500

Chillies 600-1250It requires a warm climate. Low humidity and high temperature cause shedding

20 -25 up to 1600

Coriander Over 650Requires cool climate during growth stage

and warm dry climate at maturity 16-21 500-2200

Lemon grass Over 1750ideal conditions are warm and humid

climate with sufficient sunshine20-30 up to 900

Nutmeg 1500-2600 High relative humidity 24-31 Up 300

Vanilla 2000-2500 Requires some shade 21-32 up to 1000

Source : Compiled from Purseglove et al. ( 1981 ).

APPENDICES62

APPENDIX 3 : MAJOR SPICES PRODUCING AREAS AT DISTRICT LEVEL IN THE URT

SN Region District Spice crops

1 ManyaraBabati Garlic

Mbulu Garlic

2 KageraBukoba Vanilla, Ginger

Muleba Vanilla, Ginger

3 Mbeya

Ileje Cardamom, Garlic

Mbozi Ginger, Garlic

Mbeya Rural Turmeric, Garlic

Isangati Turmeric

Rungwe Cardamom, Cinnamon

Mbarali Chillies

4 Kigoma Kasulu Ginger

5 Morogoro

Morogoro RuralCardamom, Cinnamon, Pepper, Chillies, Clove, Ginger, Turmeric,

Vanilla

Mvomero Cardamom, Chillies, Lemon grass,

Kilosa Ginger

6 Tanga

Lushoto Cardamom, Cinnamon, Clove,

Muheza Ginger, Lemon grass, Pepper, Cardamom, Cinnamon, Clove, Chilli

Mkinga Pepper, Cardamom, Clove

7 Singida Singida Rural Coriander

8 Kilimanjaro

Hai Vanilla

Moshi Rural Vanilla

Siha Vanilla

Same Ginger, Cardamom

9 Ruvuma Songea Rural Ginger

10 Arusha Arumeru Chilli

11 CoastMkuranga Chilli

Kisarawe Chilli

12 Iringa Kilolo Chillies, ginger

13 Unguja and Pemba IslandsClove, Nutmeg, Chillies, Cardamom, Ginger, Pepper, Turmeric,

Cinnamon, Vanilla, Cumin, Coriander

APPENDIX 4 : SPICES PRODUCTION ( MT ) FOR MOROGORO DISTRICT COUNCIL

Spice crop 2010 2011 2012 2013

Black pepper 2013.8 2113.5 3026.3 885

Cinnamon 436.8 430 2479.2 1200

Clove 124.8 93.9 796 83.6

Cardamom 60 – 4.2 –

Ginger 966 1823 1192

Vanilla – 2.5 11.5 1

Source : Crop production data for Morogoro Rural district 2014

APPENDICES 63

APPENDIX 5 : CARDAMOM PRODUCTION IN MVOMERO DISTRICT

Spice cropProduction in metric tons per year

2012 2013 2014

Cardamom 66.2 63.2 79.9

Source : Crop production data Mvomero district council, 2014

APPENDIX 6 : SPICES PRODUCTION DATA FOR MUHEZA DISTRICT

Spice crop

Production in metric tons

2010 2011 2012 2013

Ha Tons Ha Tons Ha Tons Ha Tons

Black pepper 359 178 359 143.6 465 229 1771 1032.2

Cinnamon 201 77 201 88.4 219 106 437 198.5

Clove 146 71 149 59.6 161 77 871 380

Cardamom 1913 718 1913 578 1913 756 396 165

Ginger Minor – no data

Source : Muheza District Council ( 2014 )

APPENDIX 7 : LOCAL GINGER PRODUCTION IN TONS, 2006-2011

Year 2006 / 07 2007 / 08 2008 / 09 2009 / 10 2010 / 11

Tons 2,694 2,700 1,485 2,876 4,267

Source : BTC ( 2012 ).

APPENDIX 8 : CLOVE PRODUCTION DATA IN ZANZIBAR ( TON ) PER YEAR

2006 2007 2008 2009 2010

3095 1487 4096 2737 2166

Source : Zanzibar State Trading Corporation ( 2013 ), cited in Hilal ( 2013 ).

APPENDICES64

APPENDIX 9 : CORIANDER PRODUCTION IN SINGIDA RURAL DISTRICT

Year Ha Tons

2013 403 606

2012 575 288

2011 790 1027

2010 991 679

2009 1667 865

Source : Singida District Council ( 2014 ).

APPENDIX 10 : CHILLI PRODUCTION IN TANZANIA ( MT ) DURING 2006-2011

2006 / 07 2007 / 08 2008 / 09 2009 / 10 2010 / 11

2,495 2,700 4,063 5,631 7,199

Source : BTC ( 2012 ).

APPENDIX 11 : VANILLA PRODUCTION ( TONS PER YEAR ) IN KAGERA REGION

Year 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014

Tons 102 70 39.9 27.4

APPENDICES 65

APPENDIX 12 : CHALLENGES TO SPICES PRODUCTION AND VALUE ADDITION AND TRADE AS MENTIONED BY DURING THE STAKEHOLDER WORKSHOP HELD ON 6th NOVEMBER 2014

APPENDIX 13 : SOLUTIONS TO CHALLENGES AND SUGGESTIONS FOR THE DEVELOPMENT OF THE SPICES SUB-SECTOR MADE AT THE STAKEHOLDER WORKSHOP OF NOVEMBER 6, 2014

APPENDICES66

APPENDIX 14 : STANDARDS FOR BLACK PEPPER

Black Pepper WholeDate : March 2015 | Created by : WvNoort | Revision : 4

Raw Material : Dried mature berries of Piper nigrum L. Origin : East AfricaProduct Code : BP-whole | EU Taric Code : 0904.11

Cropping & ProcessingHarvesting : depends on region, either Jan-Feb or Jul-Aug, Time between harvesting

and drying : 2-3 days, QC sampling according to ISO 948

Packaging InstructionsDouble layer 25 kg bags : PP outer bag with PE inner lining

20 ft container, 15 tons, carton covering on sides

Chemical Characteristics Quality Minima ( ESA )1 Typical Values

REMARKS

Moisture 12.0 % max Grade II<13 %, G III<14 %

Total ash Nil

Non volatile ether extract 7,0 % min Grade II>6 %, G III<6 %

Volatile Oil ( VO ) 2,0 % min Grade II<2 %, G III<1,8 %

Piperine content 3,5 % min Grade II<3,5 %, G III<3 %

Physical Characteristics Grade I Grade II = FAQ Fair Average Quality

Foreign matter Absent

Extraneous matter 1,0 % max Grade II<1,5 %, G III<2 %

Light berries 2,0 % max Grade II<5 %, G III<10 %

Pinheads 3,0 % max Grade II<5 %, G III<7 %

Bulk density Min 500 g / l GradeII>500, GIII>450 g / l

Mouldy or insect defiled berries Nil Grade II<1 %, G III<3 %

Organoleptic taste Hot, biting, pungent

colour Brown-black, black

smell Mouldy, rancid

Shape / diameter 2,5-7,0 mm

Other 1 ppb = 1 µ / kg

Aflatoxin total < 10 ppb ( B1+B2+G1+G2 )

Aflatoxin B1 < 5 ppb

Ochratoxin A total < 30 ppb

Pesticides Absent

The product adheres to EU-legislation for pesticides and heavy metalsThe product is non-irradiated, non-ETO treated and non-GMO

The product is free of allergenic materials

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.21food.com/products/cousine-red-brown-black-pepper-essential-oil-758539.html&ei=kW7bVPyfEoPDPMvogagM&bvm=bv.85761416,d.ZWU&psig=AFQjCNFnGdwwIhdWyQ6Y9PRF4TFBMjZKeA&ust=1423753145419958

APPENDICES 67

APPENDIX 15 : TEAM OF EXPERTS IDENTIFIED AT THE STAKEHOLDER WORKSHOP TO FORMULATE PRODUCT SPECIFICATIONS FOR EXPORT QUALITY AND TO DESIGN SIMPLE HAND-OUT TO GUIDE FARMERS AND COLLECTORS FOR THE MAJOR SPICE CROPS

Spice Local Expert email GSM

Cloves SalumKibe, ZSTC [email protected] +255 24 223 0271 / 2577

W Cardamom Esteria Mwatango [email protected] +255 769147855

Ginger John Kirigiti [email protected] + 255 787 075875

Piper Nigrum A.P. Maerere [email protected] +255 754863202

Cinnamon Sara Kessy, Arusha

APPENDIX 16 : TEAM IDENTIFIED AT THE STAKEHOLDER WORKSHOP TO WRITE EXPORT DOCUMENT INSTRUCTIONS

Local Expert Organization Email Address

Twilumba Mlelwa Tantrade [email protected]

Mr Peter Lanya Tanzania Exporters Association [email protected]

Salum Kibe ZSTC [email protected]

mailto:[email protected]

tel:%2B255 24 223 0271







68

Prepared by : Amon P. Maerere Sokoine University of Agriculture Morogoro, Tanzania

and Wilhelmus C.J. van Noort Kagan Natural Ingredients The Netherlands

Sponsored by:

Street address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland

Postal address: ITC, Palais des Nations, 1211 Geneva 10, Switzerland

Telephone: +41-22 730 0111 Fax: +41-22 733 4439E-mail: [email protected]: www.intracen.org

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