united Republic Of Tanzania - Mit.go.tz Roadmap for Pulses.pdf · Layout: Jesús Alés ... EPZA...

UNITED REPUBLIC OF TANZANIAVALUE CHAIN ROADMAP FOR PULSES2016-2020

UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES

2016-2020

UNITED REPUBLIC OF TANZANIA

VALUE CHAIN ROADMAP FOR PULSES


This value chain roadmap was developed on the basis of the process, methodology and technical assistance of the International Trade Centre (ITC) within the framework of its Trade Development Strategy programme.

ITC is the joint agency of the World Trade Organization and the United Nations. As part of the ITC mandate of fostering sustainable development through increased trade opportunities, the Trade Development Strategy programme offers a suite of trade-related strategy solutions to maximize the development payoffs from trade. ITC-facilitated trade development strategies and roadmaps are oriented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sectors, allowing policy makers to choose their preferred level of engagement.

The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC.

The International Trade Centre ( ITC )

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

Layout: Jesús Alés – www.sputnix.es

v

CONTENTS

Acknowledgements xiii

EXECUTIVE SUMMARY XIV

GLOBAL TRENDS IN THE PULSES MARKETS 19

WHAT HAS DRIVEN GLOBAL MARKET CHANGES AND PERFORMANCE? 23

TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET 25

CURRENT PERFORMANCE OF THE PULSES SECTOR IN THE UNITED REPUBLIC OF TANZANIA 25

CURRENT VALUE CHAIN OF THE PULSES SECTOR 29

THE ROLE OF INVESTMENT IN THE CURRENT PULSES VALUE CHAIN 35

STRATEGIC ISSUES AND COMPETITIVENESS CONSTRAINTS 38

Supply-side issues 38

Business environment issues 43

Market entry issues 45

THE WAY FORWARD 47

THE STRATEGIC OBJECTIVES 47

DEVELOPING THE FUTURE VALUE CHAIN OF THE SECTOR 50

Leveraging market development and investment objectives 50

Future value chain and investment objectives 54

Moving to action 57

THE PLAN OF ACTION 59

ANNEXES 69

APPENDIX 1 : LIST OF PARTICIPANTS AT CONSULTATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

APPENDIX 2 : GOVERNMENT POLICIES SUPPORTING THE PULSES SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

APPENDIX 3 :GROSS MARGIN PIGEON PEA ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

REFERENCES 77

vi

FIGURES

Figure 1: Tanzanian exports of pulses, 2005–2014 xv

Figure 2 : Strategic contraints of the roadmap xvii

Figure 3 : Strategic objectives and activity areas xvii

Figure 4 : Global pulse production and yield over the period 1988–2013 20

Figure 5 : Global pulse production by variety, 2013 20

Figure 6 : Indian demand for, and production and imports of, pulses, 2004–2005 to 2019–2020 22

Figure 7 : Changes in global imports of pulses, 1991–2000 and 2001–2011 23

Figure 8 : The top pulses exported globally, 2014 24

Figure 9 : Tanzanian pulses production by product type, 2001–2013 26

Figure 10 : Tanzanian pulses export by varieties, 2010–2014 26

Figure 11 : United Republic of Tanzania total exports of pulses, 2005–2014 27

Figure 12 : Probability of survival of export relationships, 2002–2014 28

Figure 13 : Current pulses value chain 30

Figure 14 : Average distance between farm and agro-dealer ( kilometres ) 39

Figure 15 : Sources of farmers’ seeds 40

Figure 16 : Source of finance for farmers requesting credit ( percentage of total ) 42

Figure 17 : Institutional framework for seeds 43

Figure 18 : Doing Business ranking for the United Republic of Tanzania in 2015 ( out of 189 countries ) 44

Figure 19 : Strategic objectives of the roadmap 47

Figure 20 : Future Value Chain 49

vii

TABLES

Table 1 : Largest world exporters of pulses, 2014 21

Table 2 : Largest world importers of pulses, 2014 22

Table 3 : the United Republic of Tanzania export destinations ( 2014 ) 28

Table 4 : TISIs supporting the pulses sector 32

Table 5 : The investment climate in the United Republic of Tanzania and possible competitors for pulse investment 36

Table 6 : Seed use for selected pulses in the United Republic of Tanzania 39

Table 7 : Market development and investment opportunities for Tanzanian pulses 50

Table 8 : Value chain segments needing FDI and likely sources 56

Table 9 : The priority actions to kick start implementation 57

BOXES

Box 1 : The importance of the Indian pulses market 22

Box 2 : Key performance issues of the pulse value chain 38

Box 3 : Growing market opportunities for exports of processed dhal 53

Box 4 : Investment in agribusiness inputs and services 56

viii

ACRONYMS

ACT Agricultural Council of TanzaniaAGRA Alliance for a Green Revolution in AfricaAMCOS Agricultural Marketing Cooperative

SocietiesANSAF Agricultural Non-State Actors ForumARI Agricultural Research InstituteASA Agricultural Seed AgencyBRITEN Building Rural Incomes Through EnterpriseCAADP Comprehensive Africa Agriculture

Development ProgrammeCAMARTEC Centre for Agricultural Mechanization

and Rural TechnologyCOPB Cereals and Other Produce BoardEAGC Eastern Africa Grain CouncilEPZA Export Processing Zones AuthorityEU European UnionFAO Food and Agriculture Organization

of the United NationsFDI Foreign Direct InvestmentGAP Good Agricultural PracticesICRISAT International Crops Research Institute

for the Semi-Arid TropicsIITA International Institute of Tropical AgricultureITC International Trade CentreLGA Local Government AuthorityMAFSC Ministry of Agriculture, Food Security

and CooperativesMATI Ministry of Agriculture Training InstituteMENA Middle East and North AfricaMIT Ministry of Industry and Trade MoU Memorandum of UnderstandingMRA Management Resource Associates LtdMVIWATA Mtandao wa Vikundi vya Wak ( National

Networks of Farmers’ Groups in Tanzania )NARS National Agricultural Research StationsNEEC National Economic Empowerment CouncilPHS Plant Health ServicesPMO Prime Minister’s OfficePMO-RALG Prime Minister’s Office–Regional

Administration and Local GovernmentPoA Plan of ActionPPP Public–Private PartnershipQDS Quality Declared SeedsRUDI Rural Urban Development InitiativesSACCOS Savings and Credit Cooperative SocietiesSAGCOT Southern Agricultural Growth Corridor

of Tanzania

SGS Société Generale de SurveillanceSIDO Small Industries Development OrganizationSITA Supporting Indian Trade and Investment

in AfricaSUA Sokoine University of AgricultureTADB Tanzania Agriculture Development BankTAEC Tanzania Atomic Energy CommissionTAFSIP Tanzania Agriculture and Food Security

Investment PlanTanTrade Tanzania Trade Development AuthorityTASO Tanzania Agricultural SocietyTASTA Tanzania Seed Trade AssociationTBS Tanzania Bureau of StandardsTCCIA Tanzania Chamber of Commerce,

Industry and AgricultureTCDC Tanzania Cooperatives Development

CommissionTDV Tanzania Development VisionTEA Tanzania Exporters AssociationTEMDO Tanzania Engineering and Mechanical

Design OrganisationTFC Tanzania Federation of CooperativesTFDA Tanzania Food and Drugs AuthorityTFRA Tanzania Fertilizer Regulatory AuthorityTGFA Tanzania Graduate Farmers AssociationTIC Tanzania Investment CentreTISI Trade and Investment Support InstitutionTOSCI Tanzania Official Seed Certification InstituteTPSF Tanzania Private Sector FoundationTIPRI Tanzania Pesticide Research InstituteTRA Tanzania Revenue AuthorityTWCC Tanzania Women Chamber of CommerceTWLB Tanzania Warehouse Licensing BoardTZA TanzaniaUAE United Arab EmiratesUN United NationsUNCTAD United Nations Conference on Trade and

DevelopmentUNIDO United Nations Industrial Development

OrganizationUSAID United States Agency for International

DevelopmentUSD United States DollarVAT Value Addition TaxWEF World Economic ForumZENOBA A private enterprises located in Manyara

region which produces pulses seeds

ix

FOREWORDS

HON. CHARLES J. MWIJAGE ( MP ), MINISTER FOR INDUSTRY, TRADE AND INVESTMENT

Pulses are high value crops which are on high demand in the world market. Most Pulses from Tanzania are exported to India, where are taken to be a major source of protein. Cognisant of the global market opportunities for Pulses and the potential that the country has to produce and process Pulses for export, the Government through key Ministry of Industry, Trade and Investment together with the Ministry of Agriculture, Livestock and Fisheries are currently taking steps towards enhancing production of Pulses as well as market access.

Pulses Value Chain Roadmap, has been prepared to guide sector develop-ment as the country moves towards industrialization. The development of the Roadmap, combined with the successful efforts in the mobilization of stakehold-ers, as well as in facilitating extensive discussions between public and private sectors, permitted a realistic evaluation of the challenges and opportunities of the sector in order to define the best way forward.

The Roadmap aims at increasing pulses production and productivity by adopting modern production techniques; strengthening coordination, institutional capacity and skills across the key actors in pulses with a view to improving quality of pulses produced in Tanzania in line with international standards. It also aims at stimulating pulses industry’s growth by implementing coherent and supportive policies in line with the national development objectives; providing timely and ap-propriate market entry support for effective market development; enhancing the effectiveness of the sector for forward planning and marketing as well as scaling up production and trade by strengthening PPPs for seed development, access to finance, technology transfer and farmers support services. The Roadmap also aims at promoting skills building along the value chain to professionalize the sector.

We anticipate that the implementation of the Roadmap will contribute to the national industrialization efforts and help to drive our economy forward.

We acknowledge and appreciate the support of the Government of the United Kingdom through the Supporting India’s Trade and Investment for Africa ( SITA ) Project in developing this Roadmap.

x

FOREWORDS

HON. MWIGULU LAMECK NCHEMBA MADELU ( MP )

MINISTER FOR AGRICULTURE, LIVESTOCK AND FISHERIES

Pulses are leguminous plants characterized by high nutrition content. They are an affordable source of protein and also a substitute for animal protein. Pulses varieties cultivated in Tanzania include common beans, cowpeas, pigeon peas, green gram and chickpeas, mung beans and bambura nuts.

Most of Pulses crops are characterized by high tolerance to draught, with short maturation periods and nitrogen fixation abilities. Their agro-ecological require-ments are also very well suited to the climate in Tanzania giving viability for commercial farming. Almost every region in Tanzania can produce one or several types of pulses, however these crops are mostly grown in Iringa, Njombe, Rukwa, Mbeya, Morogoro, Ruvuma, Kigoma, Katavi, Manyara, Arusha, Tannga Linidi Mtwara and Pwani regions.

Notwithstanding, there is inadequate investment on Pulses production both in terms of local and foreign investment. Majority of farmers grow pulses with little attention to Good Agricultural Practices ( GAP ), resulting in low yields of between 0.5 and 1.0 tons per hectare compared to the potential of producing up to 3 tons per hectare. The estimated production of pulses in Tanzania is currently at 1.6 million tons per annum, but there is potential to increase this significantly. Most Pulses from Tanzania are exported to India, where demand is rapidly growing.

This Value Chain Roadmap provides valuable direction that is expected to galvanize Tanzania be a leading global producer of Pulses. On behalf of the Government, I pledge support to the implementation of this roadmap and urge stakeholders to work together to actualize this vision.

xi

FOREWORDS

MR. GERALD MAKAU MASILA EXECUTIVE DIRECTOR,

EASTERN AFRICA GRAIN COUNCIL

The Eastern Africa Grain Council ( EAGC ) is proud of its role as the Implementing Partner for the pulses value chain sector in the Supporting Indian Trade and Investment for Africa ( SITA ) project in Tanzania. EAGC is a regional, not-for-profit, membership-based organisation for the grain sector in Eastern and Southern Africa. The Council objective is to facili-tate efficient, structured and profitable trade in grain commodities and products for optimal benefits for all stakeholders – from producers to consumers. In pursuit of our mandate, we provide a range of service and interventions aimed at developing and promot-ing structure trading in grain commodities – both ce-reals and pulses – including trade facilitation, market information, capacity building and policy advocacy.

As such, we are delighted by the SITA project which is driving the development of the pulses sector in East Africa. Indeed, we believe that the pulses sec-tor has significant potential to catalyse socioeco-nomic development in Tanzania, particularly in the context of Tanzania Development Vision 2025 and the new Sustainable Development Goals. The facts truly speak for themselves; global demand for pulses has been growing rapidly over the years and is fore-casted to remain strong for the foreseeable future, driven by growing populations, rising incomes and increased awareness of the nutritional value of pulses amongst consumers.

The South Asia region ( India, Pakistan, Bangladesh, Nepal, Bhutan and Sri Lanka ) is the most lucra-tive market for pulses in the world, with India alone accounting for more than 25 % of global imports. In addition, the European Union, the Middle East

and North Africa region and China also represent increasingly lucrative markets for pulses. Despite these opportunities, Tanzania accounts for just 1.4 % of global exports as recently as 2014, notwithstand-ing the increased domestic production. The limited availability of seeds, poor agricultural practices, and the presence of pests and diseases are just some of the stumbling blocks that will need to be addressed henceforth.

The Tanzania Value Chain Roadmap for Pulses has therefore been developed at an opportune moment given the need for clear strategic orientation for the pulses value chain in the country. This Roadmap has been developed through exhaustive consultations with public and private sector stakeholders, leading to exceptional levels of cooperation among sector operators. Stakeholders prioritized market-led strate-gic interventions, which form the basis of a detailed implementation plan. As such, this Roadmap can be leveraged to address constraints to trade, maximize value addition and eventually transform Tanzania into a major player in the global pulses market.

EAGC is honoured to have participated in the devel-opment of this Roadmap and reaffirms its full com-mitment to spearhead its implementation in close collaboration with the Government of the United Republic of Tanzania, ITC and other strategic part-ners. With the Roadmap in place, we urge all stake-holders to continue to support the development of the Pulses Sector in Tanzania.

Photo: Charlotte Nordahl (CC BY-SA 2.0), Bönor.

Photo: PhotoPhoto33 (CC BY 2.0), Phaseolus vulgaris, the common bean.

xiii

ACKNOWLEDGEMENTS

This value chain roadmap was elaborated as a component of the ITC Supporting Indian Trade and Investment in Africa ( SITA ) project, a south-south trade and investment initiative that aims to improve the competitiveness of select value chains through the provision of partnerships by institutions and businesses from India. SITA is funded by the United Kingdom Department for International Development ( DFID ).

The formulation of the value chain roadmap was led by the Ministry of Industry, Trade and Investment ( MITI ) with the technical assistance of ITC. This document represents the ambitions of the private and public sector stakeholders for the development of the sector. Stakeholders’ commitment and comprehensive collaboration have helped build consensus around a common vision that reflects the realities and limitations of the private sector, as well as of policymakers and trade-related institutions.

The document benefited particularly from the inputs and guidance provided by the members of the sector team.

Name Organization

Mr. Khasim Mbufu Ministry of Industry, Trade and Investment

Mr. Dharampal Singh Mand Dodoma Transport Agency Ltd

Mr. Emmanuel Mandike MVIWATA

Ms. Alya Riyami Tanzania Women Chamber of Commerce,

Mr. Augustino MbulumiCereal and Other Crops Board – Ministry of Agriculture, Livestock and Fisheries ( MALF )

Mr. Mathew Ngwahh Litenga Holdings

Mr. EMMANUEL MISELYA TanTrade

Ms. Pendo Gondwe The Tanzania Investment Centre ( TIC )

Mr. Terry Ikunda Eastern Africa Grain Council,

Technical support and guidance from ITC was rendered through Charles Roberge, Paul Baker, Dr. Bharat Kulkarni and Carlos Griffin. Angela Becaty provided valuable support as national SITA coordinator and Charles Ogutu contributed greatly with appreciated guidance and inputs as national consultant.

Photo: Matt Burris (CC BY-NC-SA 2.0), Green gram bean sprouts.

xiv

EXECUTIVE SUMMARY

Global market for pulses

Pulses represent a global industry worth over US $ 100 billion at the retail level, un-derpinned by 60 million tons of production which is exported to over 55 countries. Globally, pulses – including varieties such as dry beans, horse beans, chickpeas, cowpeas, lentils, lupins, dry peas and pigeon peas – are important crops grown for both human and animal consumption. The production of pulses is dominated by a few countries, including India ( 23.1 % ), Canada ( 16.7 % ), China ( 12.1 % ), Myanmar ( 7.6 % ) and Brazil ( 4.0 % ), which together account for half of the world’s output. The global trade in pulses represents only 15 % of global production, which suggests that around 85 % of production is consumed locally.1 Exports of pulses over the last 12 years have increased from US $ 2.4 billion in 2002 to US $ 7.7 billion in 2014. In the last five years, annual growth in exports reached 8 %. The pulse sector in the United Republic of Tanzania stands to benefit from the following conditions :

� A continued increase in demand for legume-based proteins is expected to result from demographic trends ;

� Flat yields in the production of pulses by major consumer countries offers an opportunity ;

� The United Republic of Tanzania enjoys established links to India in pulse exports, which can be extended with branding ;

� The huge South Asian diaspora in regional markets, as well as Middle Eastern and European markets, is an existing consumer base which remains untapped to a considerable degree by Tanzanian exporters ;

� The ban on the export of pulses from India presents new opportunities for the promotion of processing operations and the export of processed pulses from the United Republic of Tanzania.

United Republic of Tanzania’s performance

Tanzanian production and exports of pulses have both increased rapidly in the last decade. The production of pulses is focused on four main products : cowpeas, pigeon peas, chickpeas and dried beans, mainly exported to traditional markets. Pulse production almost doubled in the last five years alone. However, the country faces serious challenges in this sector. The lack of available seeds, poor agricultural practices, and the presence of pests and diseases all end up affecting yields and quality.

1.– Akibode, Sitou and Maredia, Mywish ( 2011 ) Global and Regional Trends in Production, Trade and Consumption of Food Legume Crops. E-book. Available from http : / / impact.cgiar.org / sites / default / files / images / Legumetrendsv2.pdf.

Photo: Matt Burris (CC BY-NC-SA 2.0), Green gram bean sprouts.

xv

[ EXECUTIVE SUMMARY ]

India is the main export market for the United Republic of Tanzania, whose exports of pulses to India have enjoyed continuous and sustained growth, even though the United Kingdom of Great Bri ta in and Nor thern Ireland, Italy and Canada are becoming major mar-kets for Tanzanian pulses.

T h e G ove r n m e n t o f the United Republic of Tanzania has implement-ed a series of plans and

policies with the objective, among others, of improving

access to inputs, seeds, ma-chinery and skills to increase

the production and irrigation of pulses, and develop posthar-

vest services and infrastructures. These plans include, inter alia, the

Tanzania Development Vision 2025, the Agriculture Sector Development Strategy,

and the Tanzania Agriculture and Food Security Investment Plan ( TAFSIP ).

Figure 1: Tanzanian exports of pulses, 2005–2014

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

US$ Millions Other beans, len=ls and broad beans

Kidney beans&white pea beans drid shelld

Beans dried, shelled,nes

Urd,mung,black/green gram beans drid shelld

Leguminous vegetables dried,shelled

Chickpeas, dried, shelled

Peas dried, shelled

xvi

Tanzania Development Vision 2025

National Strategy for Growth and the Reduction of Poverty ( MKUKUTA I ) 2006–

2010

MKUKUTA II 2010–2015

Five Year Development Plan 2012–2016

Agriculture Sector Development Strategy

Kilimo Kwanza ( Transforming Agriculture ) 2009

National Irrigation Development Plan

TAFSIP

National Agriculture Policy

The role of investment in the value chain

The sustainability and growth of the sector will depend on its capacity to attract investment. The United Republic of Tanzania provides incentives for attracting foreign direct investment ( FDI ) by exempting capital goods from tariffs and value added taxes, and allowing total foreign ownership in agriculture and 50 % in manufacturing. The major investors in pulses come from India and Pakistan. This roadmap highlights that the investment and business enabling environment, while ranking quite low against some of its peers, still performs better than a major exporter of pulses such as Myanmar. Recommendations are made to improve the targeting of investment for the sector and improve information on, and predictability of, domestic conditions in the sector.

Performance issues

A review of literature and extensive stakeholder consultations revealed a number of constraints in the pulses sector which affect its long-term performance. Figure 2 shows the key performance issues identified as challenges. In order to ensure the roadmap is efficient and specific, only the most critical bottlenecks are presented in further detail.

Strategic objectives of the roadmap

To achieve the development of the pulses sector in the United Republic of Tanzania, three strategic objectives have been identified to enhance its competitiveness and organization. The first strategic objective seeks to strengthen policy support institu-tions, promote pulses as a viable agricultural crop, improve quality standards and improve inter-institutional coordination. The second strategic objective tackles weak-nesses in supply conditions generally and production level inputs in particular. The third strategic objective will effectively build the skills of stakeholders throughout the different stages of the value chain, in order to ensure that productivity rises, losses fall and professionalism improves.

xvii

Figure 2 : Strategic contraints of the roadmap

Lack of commercially available improved pulse varieties and deficient seed multiplication system, including

for Quality Declared Seeds (QDS)

Limited availability of efficient storage and warehousing along the value chain

Low levels of quality assurance and disease control in the production of

pulses

Limited access to rural finance

Low productivity levels resulting from the limited availability of agricultural

inputs, training and services to improve production and reduce losses

Limited interest of farmers to use improved varieties due to the high

costs of seeds and other inputs

Lack of market information and intelligence, and lack of trade

promotion activities

Burdensome and costly administrative and export procedures and low performance of logistics sector

Limited use of contract management as a means to secure supply-side

conditions

Weak coordination among stak eholders, which leads to inefficient

sector development and implementation of policies

Lo w levels of investment attracted into the sector at the levels of research and

development, inputs, production tec hniques, postharvest handling and

storage, and distribution

Limited capacity of key trade and i nvestment support institutions to s upport sector development in the

areas of agribusiness services

SUPPLY SIDE BUSINESS ENVIRONMENT MARKET ENTRY

Figure 3 : Strategic objectives and activity areas

Develop QDS & high- yielding pulse seeds

Improve access to finance along the value

chain

Develop an efficient storage, warehousing and

logistics system as a trading platforms

Encourage the development of medium-

and large-scale agribusiness services

Develop an efficient input distribution network for higher-yielding varieties

Promote skills building along the value chain to professionalize the sector

Provide targeted training on Good Agricultural

Practices

Deliver improved specific training on reduction of pre- and post-harvest

losses

Enhance governance, management & marketing of farmer associations &

co-ops

Scale up production and trade by strengthening PPPs for seed development, access to finance,

technology transfer and farmer support services

Enhance the effectiveness of the sector for forward planning and market development.

Strengthen market development capacities

of the sector

Capacity-building of key institutions in the “pulses

network” to provide support services

Promote pulses as a viable and growing agricultural sector

Develop a network of institutions to improve

sector coordination

Improve the quality of products

Advocate for a sustainable pulses sector

Future enhanced value chain

The roadmap addresses transformations across the value chain in order to unlock the potential of the pulses sector in the United Republic of Tanzania. The future value chain of the sector is driven by its market development objectives, which can lead to value chain enhancements, and through investment focus areas. Improvements in value creation, value addition and value retention are fostered through targeted efforts detailed in the Plan of Action ( PoA ) of the roadmap that seek to overcome the critical constraints identified in the sector. The future value chain will be character-ized by improved input distribution, improved overall coordination and governance, enhanced forward planning and trading capacities, increased market development, and investment attraction.

xviii

THE VALUE CHAIN ROADMAP FOR THE NEXT FIVE YEARS

Photo: Forest and Kim Starr (CC BY 2.0), Cajanus cajan (Pigeon pea, dahl).

[ GLOBAL TRENDS IN THE PULSES MARKETS ]

19

GLOBAL TRENDS IN THE PULSES MARKETS

Rising income levels, along with population growth and an increase in middle-income classes in developing countries, have increased the consumption and demand for foodstuffs, including pulses. Growing demographics and income lev-els have raised the propensity to consume pulses so much that the demand for them has increased dramatically. Some econometric studies estimate the range of demand elastici-ties for pulses to be between 1.5 and 2.0.2 This indicates that an annual increase in per capita income of around 6 % would lead to an increased demand of more than 10 % for pulses.3 In addition, the growth of middle-income classes in non-traditional markets such as those in Africa and Asia, and the rise of a supermarket culture in developing countries, have led to an increase in demand for processed foods. Pigeon peas, chickpeas, and dry peas are some of the pulses ben-efiting from these changes in demand. These three types of pulses are also all grown in the United Republic of Tanzania.

On top of demographic and income effects, the last few years have seen a major change in dietary patterns. With greater awareness of coeliac disease and gluten sensitivity, the demand for alternative products is on the rise.4 While a variety of gluten-free grains, flours and starches can be substituted for wheat, rye and barley in product formula-tions, it has also been recognized that pulses such as yellow peas, lentils and chickpeas are some of the best available gluten-free options. Pulses are therefore now gaining ac-ceptance as the ‘new and improved’ centre of healthy eat-ing. Pulse flour can be used alone or mixed with traditional flour to make dishes that would normally be made solely from wheat or maize. The high quality protein in pea, lentil and chickpea flours makes for a perfect amino acid offer-ing, particularly when blended with other gluten-free grains such as rice flour. Therefore, pulses deliver quantity as well as quality nutritional levels, with dry pea, lentil and chick-pea flours containing 22 %–25 % protein5 and high amounts of lysine, and count as both a vegetable and a protein.

2.– Knight, R., ed. ( 2000 ). Linking Research and Market Opportunities for Pulses in the 21st Century : Proceedings of the Third International Food Legumes Research Conference. Springer Publishing.3.– Alagh, Y.K. ( 2011 ). The Future of Indian Agriculture. Indian Economic Journal, Volume 59, Number 1, April–June, pp. 40–55.4.– Gluten is comprised of proteins ( e.g. gliadin, glutenin ) predominantly found in cereal grains such as wheat, rye and barley.5.– USA Dry Pea and Lentil Council ( 2010 ). Website. Available from www.pea-lentil.com.

This would suggest that pulse flours can pack gluten-free foods with powerful nutrition and goodness.

Several structural changes have taken place in India – the largest consumer and importer of pulses – which have presented new opportunities for the United Republic of Tanzania. Traditionally, the large South Asian diaspora across the world imports processed dhal from India and neighbouring countries. However, since 2006 Indian exports of pulses, including processed pulses, have been banned by the Indian authorities as a food security measure. The Directorate General of Foreign Trade in India has continued to enforce the ban ever since and, as a result, exporters are looking at alternatives, including relocating their processing plants to other locations such as Dubai and Singapore. The ban is expected to stay in place for the foreseeable future, as the gap between production and demand in India con-tinues to rise.

Canada is the largest exporter of pulses to India, ac-counting for 40 % of India’s total imports, followed by Myanmar ( 27 % ), Australia ( 9 % ) and the United States of America ( 6 % ). Pigeon peas are in particularly high demand in the southern and eastern parts of India, while chickpeas are primarily consumed in the northern areas. India most-ly imports pigeon peas and black matpe from Myanmar, Ghana, and other African countries including Kenya, the United Republic of Tanzania and Mozambique. Indian buy-ers are increasingly looking at Africa because of logistical convenience. These countries are also attracting pulse pro-cessors due to the availability of the raw materials required, along with the low associated costs. With a big regional mar-ket for dhal and the benefit of agreements like the Economic Partnership Agreements with the European Union and the African Growth and Opportunity Act in the United States, the United Republic of Tanzania is well positioned to attract FDI in the sector.

In summary, the pulses sector in the United Republic of Tanzania stands to benefit from the following conditions :

� The increase in demand coupled with the flat yields in production by major consumer countries offers an op-portunity for the United Republic of Tanzania to export its pulses ;

� The established trade that the United Republic of Tanzania has enjoyed with India in pulses can be ex-tended with branding ;

� The huge South Asian diaspora in regional markets, as well as Middle Eastern and European markets, is an

20

[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]

existing consumer base which remains untapped to a considerable degree by Tanzanian exporters ;

� The ban on the export of pulses from India presents new opportunities for the promotion of processing opera-tions and the export of processed pulses from the United Republic of Tanzania.

Pulses represent a global industry worth over US $ 100 billion at the retail level, underpinned by 60 million tons of produc-tion which is exported to over 55 countries. The production of pulses is dominated by a few countries, including India ( 23.1 % ), Canada ( 16.7 % ), China ( 12.1 % ), Myanmar ( 7.6 % ) and Brazil ( 4.0 % ), which together account for half of the world’s output. However, African origin pulses have gained significant importance in recent years. Figure 4 illustrates how the global volume of pulses production has increased gradually in the last 25 years, from 56 million tons in 1988 to 73 million tons in 2013.

Figure 4 : Global pulse production and yield over the period 1988–2013

Source : Food and Agriculture Organization of the United Nations ( FAO ) ( 2015 ).

Statistics database, using the FAO classification of pulses, while excluding the products, ‘flour of pulses’ and ‘bran of pulses.’

Figure 5 : Global pulse production by variety, 2013

Source : FAO ( 2015 ). Statistics database.


21

Globally, pulses – including varieties such as dry beans, horse beans, chickpeas, cow peas, lentils, lupins, dry peas and pigeon peas – are important crops grown for both hu-man and animal consumption. In developing countries, the nutritional value of pulses in terms of being a low-fat, high-fibre source of protein is very important, and as such they are an essential component of traditional diets and are in-cluded in almost all dietary guidelines. It is estimated that the contribution of pulses to the human daily protein intake is around 10 % in low income countries,6 and is of particular importance as a non-animal protein source. This is another factor that contributes to the popularity of pulses in largely vegetarian India. Additionally, pulses contain significant amounts of other essential nutrients such as calcium and iron. Figure 5 shows the share of pulse products ( by variety ) produced globally. Dry beans account for one-third of global production, followed by chickpeas and dry peas.

The global trade in pulses represents only 15 % of global production, which suggests that around 85 % of produc-tion is consumed locally.7 Exports of pulses over the last 12

6.– Sosulski, F. W. & Sosulski, K. ( 2005 ) Legume : Horticulture, Properties, and Processing. In Handbook of Food Science, Technology and Engineering, Volume 1, Y. H. Hui, ed. CRC Press. 7.– Akibode, Sitou and Maredia, Mywish ( 2011 ) Global and Regional Trends in Production, Trade and Consumption of Food Legume Crops. E-book. Available from : http : / / impact.cgiar.org / sites / default / files / images / Legumetrendsv2.pdf.

years have increased from US $ 2.4 billion in 2002 to US $ 7.7 billion in 2014. Although the amount of pulses traded has increased, the rate of growth has slowed slightly ( 8 % growth in 2010–2014 compared with 9 % in 2002–2006 ).

The pattern of pulse imports has evolved over the past dec-ade. There has been fast-growing demand from Asian coun-tries, particularly India and China, with a major increase in imports seen in South Asian countries, which have shown more than 250 % growth over the last decade. South Asian economies, led by India, are experiencing renewed steady economic development, which leads to both higher per capita income and higher consumption levels.

The increasing population, economic growth and urbani-zation have led to significant growth in the import of pulses by India, which has expanded from just US $ 0.6 billion in 2002 to US $ 2.7 billion in 2014. The share of India in the world market is close to 26 % currently, in spite of import substitution measures introduced since 2010. Despite these measures remaining in place, India will continue to dominate the global trade of pulses and provides significant opportu-nities for the United Republic of Tanzania ( see box 1 ).

The largest pulse producers are developing countries. However, the yield levels and yield growth rates are higher in developed coun-tries.1 Developed countries are some of the top exporters of pulses, mainly due to their higher use of production inputs such as fertilizers, and economies of scale achieved through larger cultivation areas,

as well as the fact that they have less domestic demand. Myanmar and China are the only two countries in the developing world among the top five exporters, accounting for 14 % and 10 % respectively of world exports in 2014. Over the last few years, new producers such as the United States, Ethiopia and Mexico have emerged.

Table 1 : Largest world exporters of pulses, 2014

Rank ExporterExport value ( US $ billions ) Annual growth rate ( % )

Market share held by main exporters ( % )

2014 2002–2006 2010–2014 2002 2014

World 7.7 9 8 100 100

1 Canada 1.6 16 10 15 20

2 Myanmar 1.0 N / A 4 0 14

3 United States 0.8 10 7 10 10

4 China 0.7 6 -2 13 10

5 Australia 0.4 13 2 5 5

6 Argentina 0.3 5 4 5 5

7 Ethiopia 0.3 10 31 1 3

8 Egypt 0.3 -100 38 0 3

9 Mexico 0.2 9 17 4 3

10 Russian Federation 0.2 1 50 1 3

Source : International Trade Centre ( ITC ) Trade Map. ( 2015 ). ( Harmonized System codes : 0713–10, 20, 31, 32, 33, 35, 39, 60 and 90.)

22


Table 2 : Largest world importers of pulses, 2014

Rank Importers

Trade indicators

Value imported in 2014 ( US $ billions )

Quantity imported in 2014 ( million

tons )

Annual growth in value between 2010

and 2014 ( % )

Annual growth in quantity between

2010 and 2014 ( % )

Share in world imports ( % )

2014

World 10.4 15.0 7 9 100

1 India 2.7 4.5 10 10 25.8

2 Egypt 0.4 1.3 7 38 4.2

3 China 0.4 0.9 15 8 4.1

4 United States 0.4 0.5 12 18 4.1

5 Turkey 0.4 0.5 7 9 3.7

6 Bangladesh 0.4 0.9 15 12 3.6

7 Pakistan 0.4 0.6 -4 -4 3.5

8 Italy 0.3 0.3 10 -1 3.2

9 Spain 0.3 0.3 4 -6 2.4

10United Arab Emirates ( UAE ) 0.2 0.4 4 14 2.4

11 Other countries 4.5 4.9 … … 43.2

Source : ITC calculations based on United Nations Comtrade statistics.

Box 1 : The importance of the Indian pulses market

India is the largest producer and consumer of pulses in the world. As such, it significantly influences the world market. The Indian market currently consumes approximately 20 million tons of pulses per year. Its annual production has not increased significantly over the last 10 years, such that imports have steadily increased to satisfy the grow-ing national demand, as well as to create stockpiling of reserves.

The Population Institute estimates that India’s population could reach 1.4 billion by 2030, from the present level of 1.2 billion. Accordingly, the projected pulse requirement for the year 2030 could reach 23 million tons if the propensity to consume pulses remains constant.

Figure 6 : Indian demand for, and production and imports of, pulses, 2004–2005 to 2019–2020

Source : ITC calculations based on United Nations Comtade statistics.


23

WHAT HAS DRIVEN GLOBAL MARKET CHANGES AND PERFORMANCE?

Global consumption of pulses can be categorized into two major markets. One concerns the demand driven by human consumption, and the second by the alternate use of pulses for animal feed. Traditionally, low quality, cheap pulses have been consumed as animal feed. In addition, there is some minor use of pulses in non-food sectors, including seeding and wastage. It can be safely assumed that there is limited variation in stocks from year to year, and that the non-food uses of pulses are a small percentage of total production. As a result, global consumption is more or less equal to global production.

In observing the geographical spread of consumption, it is noteworthy that the South Asian region ( India, Pakistan, Bangladesh, Nepal, Bhutan and Sri Lanka ) accounts for the largest proportion of global consumption. This region imports more than 4 million tons of pulses every year, with India leading the way. Europe was the leading importer for several years, although it has now slipped to second place with an average level of 2.2 million tons annually. In the South Asian market, India is the biggest trading partner for Tanzanian pigeon peas, with 27 % of their pigeon pea imports coming from the United Republic of Tanzania.

Five subsectors of pulses ( peas, kidney beans, chickpeas, lentils and gram beans ) account for four-fifths of the market share of all traded pulses. Figure 8 shows the main prod-ucts which are imported within the pulses sector. The most exported products are dried peas, which account for almost one-quarter of global pulse imports ( with India being the high-est importer at 33 % ). Developed countries such as Canada and the United States are the main exporters of dried peas thanks to increased productivity resulting from the adoption of advanced technologies and infrastructure investments.8

The trade in pulses is dominated by dried peas and lentils, each commanding 33 % and 17 % of market share respectively. Kidney peas come in third, accounting for 14 %. The import levels of these top three pulses products have re-mained fairly constant over the years, constituting between 59 % of market share in 2002 and 58.4 % in 2014. Countries such as Canada, Australia and Myanmar now produce puls-es as an export crop and, with the expanding allocation of land for cultivating pulses in Africa, overall global pulses production has increased.9

8.– Ibid.9.– Ibid.

Figure 7 : Changes in global imports of pulses, 1991–2000 and 2001–2011


24


Figure 8 : The top pulses exported globally, 2014

Peas dried, shelled, whether or not skinned

or split 33%

Lentils dried, shelled, whether or not skinned

or split 17%

Kidney beans&white pea beans drid shelld,whether o

not skinnd o split 13%

Chickpeas, dried, shelled, whether or not skinned or

split 11%

Urd,mung,black/green gram beans drid shelld,whether/not

skinnd/split 7%

Broad beans&horse beans dried,shelled,whether or not skinned or split

5%

Beans dried, shelled, whether or not skinnedor split, nes

7%

Leguminous vegetables dried,shelled,whether or not

skinnd or split, nes 4%

Beans,small red (Adzuki) 1%

Others peas and beans 1%

Dried, shelled Pigeon peas 1%

Dried, shelled cow peas 0%

Dried, shelled bambara beans 0%


Demand for pulses has been growing at a stable rate and is expected to continue to grow over the next few decades as a result of increasing populations and middle-income classes in countries which are high net importers of pulses. India is the world’s largest market for pulses and Indian diaspora markets will remain important sources of demand. While in the past Central and Eastern Europe were major markets for

both production and consumption of pulses, these markets have recently been far surpassed by South Asian markets. The export ban on Indian pulses has also presented oppor-tunities for African markets to supply overseas Indian com-munities. Moreover, projections imply a large shortfall in the supply of pulses to the Indian market over the next 15 years unless radical changes in production levels occur in India.

Photo: CIAT (CC BY-SA 2.0), climbing beans3.jpg

[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]

25

TANZANIAN PRODUCTION OF PULSES AND INTEGRATION

IN THE GLOBAL MARKET

The global context of the pulses sector and the chang-ing market trends observed over the last decade provide a perspective on the positioning of the United Republic of Tanzania within the global pulses market. In this section, we will review both the United Republic of Tanzania’s produc-tion trends and its positioning in world markets with a view to assessing its performance and potential for diversification in new markets and in value added production.

Agriculture is the mainstay of the Tanzanian economy, accounting for about 45 % of its gross domestic product. Maize is the main staple crop, along with other food prod-ucts including meat ( livestock and poultry ), rice, wheat, root crops, sorghum / millet, bananas and pulses. Agriculture oc-cupies a very important place in the lives of Tanzanians and

in the national economy. It provides full-time employment to over 70 % of the population and is an important source of food security for the population, a large proportion of which survive on subsistence farming.

In the United Republic of Tanzania, pulses occupy about 12 % of the land cultivated for annual crops.10 Pulses tender to be intercropped with other crops and are primarily used in subsistence farming. The level of production is quite low ow-ing to relatively low yields, as a result of the types of seeds used in production, the presence of pests and the low use of fertilizers.

10.– United Republic of Tanzania National Bureau of Statistics ( 2013 ). Tanzania in Figures 2012.

CURRENT PERFORMANCE OF THE PULSES SECTOR IN THE UNITED REPUBLIC OF TANZANIA

Production levels of pulses have increased from around 760 thousand tons in 2000 to close to 1.6 million tons in 2014. Among the numerous types of pulses grown in the United Republic of Tanzania, dry beans, cowpeas, chickpeas and pigeon peas are predominately cultivated by smallholder farmers. Pulses can bear harsh climatic conditions because they need little water and are usually rain-fed. Most of the cultivation of pulses includes intercropping with maize, with the exception of chickpeas.11 Four main zones, namely Lake, Central, Southern and Northern, are the leading pulse pro-ducing regions in the United Republic of Tanzania. Figure 9 shows how the production of the four types of pulses has increased over the years.

11.– Tata Africa Holdings ( Tanzania ) Ltd ( 2013 ). Production Focused Value Chain Study of Pigeon Pea, Green Gram and Chickpea in Tanzania.

Since dry beans and peas represent the pulses with the highest level of production in the United Republic of Tanzania, followed by pigeon peas and cow peas, Exports of pulses from the United Republic of Tanzania over the last five years have been mainly dominated by three varieties : pi-geon peas, chickpeas and dried beans. In 2013, these three top exports represented more than 96 % of all Tanzanian pulse exports.12 Since 2013, there has also been growth in exports of black mung beans. Kidney beans and mung beans have emerged in the last few years as important ex-ported products, though the levels remain relatively small in comparison to other types of pulses.

12.– It should be noted that in 2013 the reference category for pigeon peas changed from 071310 to 071360. This explains the emergence of a new category in the export data.

26


Figure 9 : Tanzanian pulses production by product type, 2001–2013

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tonnes

Beans, dry Chick peas Cow peas, dry Pigeon peas

Source : FAO ( 2015 ). Statistics database.

Figure 10 : Tanzanian pulses export by varieties, 2010–2014


27

Source : ITC calculations based on Comtrade.

Note : HS071310 was split into HS07310 & HS07360 ‘Dried, shelled pigeon peas’ from 2013.

We have kept them merged for comparison purposes.

Tanzanian exports of pulses have increased rapidly over the last decade, growing at an average annual rate of 22 % ( see figure 11 ). In the last five years, the growth in exports has been at 18 % annually, with dried peas representing the bulk of this growth. Dried peas represent two-thirds of all

exports of pulses. While exports of other types of pulses have grown faster, such as other leguminous beans ( 62 % p.a. ) and mung beans ( 77 % p.a. ), these still represent a small proportion of exports ( 10 % and 8 % of total pulses exports respectively ).

Figure 11 : United Republic of Tanzania total exports of pulses, 2005–2014

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

US$ Millions Other beans, len=ls and broad beans

Kidney beans&white pea beans drid shelld

Beans dried, shelled,nes

Urd,mung,black/green gram beans drid shelld

Leguminous vegetables dried,shelled

Chickpeas, dried, shelled

Peas dried, shelled

Source : ITC Trade Map.

28


The majority of the export growth in the pulses sector has been achieved through the intensification of exports to traditional markets. Table 3 confirms that Tanzanian pulse exports remain highly concentrated on the Indian market. Exports of Tanzanian pulses to India have continued to grow over the last five years at an average annual growth rate of 11 %. New emerging destinations such as the United Kingdom, Italy and Canada are showing impressive growth

rates much higher than the average 8 % for global imports. India is the United Republic of Tanzania’s main export mar-ket, in line with India’s significant share of the world market. There are relatively few exports to diaspora communities in the Middle East and Africa. Based on trade statistics, sup-ply consistency appears to be an issue and needs to be addressed in the value chain roadmap in order to improve export duration and volumes.

Table 3 : the United Republic of Tanzania export destinations ( 2014 )

Importers

Trade indicatorsTariff ( estimated )

faced by the United Republic of

Tanzania ( % )Exported value

2014 ( US $ thousands )

Share in the United Republic

of Tanzania’s exports ( % )

Exported quantity

2014 ( tons )Unit value

( US $ / unit )

Exported growth in value

between 2010 and 2014 ( %, p.a. )

Total import growth in value of partner countries between

2010 and 2014 ( %, p.a. )

Total 145 906 100 189 721 769 11 7

1 India 128 515 88.1 171 184 751 11 10 0*

2 Pakistan 4 635 3.2 6 273 739 -16 -4 1

3United Kingdom 2 978 2 2 947 1 011 22 1 0

4 Italy 1 471 1 869 1 693 64 10 0

5 Canada 1 342 0.9 1 052 1 276 53 7 0

Source : ITC calculations based on Comtrade.

* According to the Economic Times of India, the imports of pulses are now exempt from import tariffs. This measure has been put in place

due to the shortage of national production and is currently valid till March 2016.

Figure 12 : Probability of survival of export relationships, 2002–2014

Source : ITC Calculations based on Comtrade.

Photo: DARLA SCHOENROCK (CC BY-NC-SA 2.0) , Red Beans.

Photo: Clim

ate Change- Agriculture and Food Security (CC BY-NC-SA 2.0), drough-tolerant green grams.


29

The probability of export survival 13 for the United Republic of Tanzania is particularly low, and far lower than many of its competitors in the pulses sector ( see figure 12 ). According to trade data, the probability that an ex-port relationship survives more than two years is just under 25 %. After four years, the probabil-ity falls to just 10 %. This low rate of export survival indicates fluctuating export rela-tionships and confirms some of the chal-lenges identified below concerning the difficulty faced by the United Republic of Tanzania to supply consistently ad-equate volume or quality of pulses to global buyers.

CURRENT VALUE CHAIN OF THE PULSES SECTOR

The current value chain of the puls-es sector in the United Republic of Tanzania is presented in figure 13. The description of the value chain below ena-bles a better understanding of the specific processes required to produce pulses and bring them to market. Understanding the dy-namics of the value chain is essential to under-standing the issues affecting performance of the sector.

The key elements to consider in the Tanzanian puls-es value chain are that there are two different models of production – smallholder subsistence agriculture and commercial agriculture. Each of these models have their specificities. Smallholder agriculture is often less efficient since it relies on intercropping based on lower-yielding seed varieties, does not use irrigation, and faces volume con-sistency challenges. It also faces challenges in productiv-ity, postharvest losses, inadequate access to finance, and difficulties in commercialization. Nevertheless, it is an im-portant means of food security in numerous rural regions where almost half of the production is used for household consumption. On the other hand, medium-to-large-scale producers generate larger volume of pulses due to more efficient production techniques and easier access to inputs and finance. Large-scale producers focus on the export market. These two models are currently both essential and actually complementary for the development of the pulses sector in the United Republic of Tanzania.

13.– Survival of export is defined as the likelihood of exports with a bilateral partner being maintained for one extra year.

30


Figure 13 : Current pulses value chain

Min

. of I

ndus

try,

Tra

de, &

Mar

ketin

g

Tanz

ania

Tra

de D

evel

opm

ent A

utho

rity (

TAN

TRAD

E)N

atio

nal D

evel

opm

ent C

orpo

ratio

n (N

DC)

Tanz

ania

n Bu

reau

of S

tand

ards

(TBS

) Ce

ntre

for

Agr.

Mec

hani

satio

n an

d Ru

ral T

echn

. (CA

MAR

TEC)

Ex

port

Pro

cess

ing

Zone

Aut

horit

y (EP

ZA)

Smal

l Ind

ustr

ies D

evel

opm

ent O

rgan

isatio

n (S

IDO

)

Min

istr

y of

Agr

icul

ture

, Foo

d Se

curi

ty a

nd C

oope

rativ

es

Dep

artm

ent o

f Res

earc

h an

d D

evel

opm

ent (

DRD

)

Dist

rict A

gric

ultu

re a

nd L

ives

tock

Dev

elop

men

t Off

ice (D

ALD

O)

Agric

ultu

ral S

eed

Agen

cy (A

SA)

Tanz

ania

Fer

tiliz

er R

egul

ator

y Au

thor

ity (T

FRA)

Ta

nzan

ia O

ffici

al S

eed

Cert

ifica

tion

Inst

itute

Ag

ricul

tura

l Res

earc

h In

stitu

te (A

RI)

Inpu

t Se

eds

(own

or b

ough

t fro

m

othe

r far

mer

s )No

n- co

mm

ercia

l

Ferti

lizer

s

Farm

equ

ipm

ent

Lab

our

(80%

in a

/cHo

urly

min

wag

e-0.

25 U

SD)

Lan

d

Wat

er

Inn

ovat

ion

and

R&D

Lege

nd

Nat

iona

l com

pone

ntIn

tern

atio

nal c

ompo

nent

Pest

icide

and

In

sect

icid

e

Prod

uctio

nCo

llect

ion

Trad

ing

Who

lesa

le/

Reta

iling

Smal

lhol

der

farm

ers

95%

(≤ 4

acr

es)

No

mec

anis

atio

n

4%

Med

ium

sc

ale

farm

ers

7-20

0 Ac

(ren

t eq

uipm

ent)

Coop

Sto

rage

Villa

ge T

rade

rs

Agen

ts/

Mid

dle

man

(C

olle

ctio

n Ce

ntre

s)

Bean

s50

00 t

Expo

rter

s(s

ortin

g, sp

litin

g,

etc.

)

Rwan

da (5

8.3%

)

Net

herla

nds (

14%

)

Oth

ers (

16.7

%)

Uni

ted

King

dom

(11%

)

Indi

a (4

3%)

Uni

ted

Arab

Em

irate

(22%

)

Oth

ers (

24.7

%)

Qua

tar (

10,3

%)

Puls

es, n

es

Indi

a (6

5%)

Uni

ted

Arab

Em

irate

(21%

)

Oth

ers (

11%

)

Bang

lade

sh (3

%)

Chic

kpea

s27

,000

t

Indi

a (9

5%)

Uni

ted

Arab

Em

irate

(4%

)

Oth

ers (

1%)

Pige

on P

eas

75,0

00 T

Nat

iona

l mar

ket

Tanz

ania

Fer

tiliz

er C

ompa

ny (T

FC)

Seed

Re

tent

ion

Colle

ctio

n Ce

ntre

Urb

an t

rade

rs

Smal

l-sca

le

Proc

essi

ng

Acc

ess

to

finan

ce

Farm

er s

upp

ort

serv

ices

1% L

arge

sca

le

farm

ers

Ove

r 200

ac

(ow

n eq

uipm

ent)

Hold

ing

½-1

ton

Consumption

Farm storageFarm storage

Expo

rter

s

East

Afr

ica

Gra

in C

ounc

il (E

AGC)

Ce

real

and

oth

er cr

ops

boar

d Ta

nzan

ia A

tom

ic E

nerg

y Co

mm

issio

n (T

AEC)

Tanz

ania

Cha

mbe

r of C

omm

erce

, Ind

ustr

y an

d Ag

ricul

ture

(TCC

I) Ta

nzan

ian

Expo

rter

s Ass

ocia

tion

(TAN

EXA)

Ta

nzan

ia S

eed

Trad

ing

Ass

ocia

tion

(TAS

TA)

Cust

oms

Tanz

ania

Inve

stm

ent C

entr

e (T

IC)

Mta

ndao

wa

Viku

ndi v

ya W

ak

Tanz

ania

Foo

d an

d Dr

ug A

genc

y (TF

DA)

Agric

ultu

ral C

ounc

il of

Tan

zani

a (A

CT)

Priv

ate

Sect

or F

ound

atio

n (P

SF)

Tanz

ania

Fed

erat

ion

of C

oope

rativ

es (T

FC)

Tanz

ania

Agr

icul

tura

l Dev

elop

men

t Ban

k (T

ADB)

Ag

ribus

ines

s In

nova

tion

Cent

er (A

IC)

Sust

aina

ble

Agri

cultu

re T

anza

nia

(SAT

) Ec

onom

ic a

nd S

ocia

l Res

earc

h Fo

unda

tion

(ESR

F)


31

Inputs

The inputs into the value chain have a major bearing on the yields of crops and production levels. The principal inputs consist of seeds, fertilizers, pesticides, land, labour, irriga-tion, and research and development in agricultural practices and seed development. National research and development are supported and undertaken by the MAFSC. Fertilizers and pesticides, as well as high yielding seed varieties are imported. There are reported difficulties in terms of access-ing high yielding seeds, and complaints have been made by farmers regarding the price of seeds, fertilizers and pes-ticides. TOSCI is the sole agency to certify the quality of seeds before approval for release to farmers.

Production and on-farm storage

The vast majority ( 95 percent ) of pulse producers in Tanzania are small-scale farmers with less than four acres of farming land. The remaining 5 percent of producers are medium to large-scale farmers who own between 5 and 200 acres of land. It should be noted that while large produc-ers represent less than 1 % of farmer numbers, the level of production is up to 30 percent of Tanzania’s production of pulses14. This difference is explained by the different produc-tion objectives and technologies deployed between small and large-scale farmers. In Tanzania, the production sys-tem used by small scale farmers involves intercropping with maize and the vast majority of the produce being consumed as subsistence crops. On the other hand, large-scale farm-ers almost exclusively produce for the export market. In the case of small-scale production, it is estimated that between 37 percent and 45 percent of the pulses and beans pro-duced are maintained for home consumption15.

In the case of pigeon peas, although more than 60 % of farmers use reserved seed for planting, other farmers sell their seeds to retailers in the local markets who act as seed sellers. Farmers sell at an average price of TZS 400 to TZS 500 per kilogram postharvest. In most instances, and due to financial obligations, the farmers are price takers. Meanwhile, seed sellers receive an average price of TZS 800 to TZS 1,000 per kilogram of seeds during the planting season.16

While small scale farmers predominantly use hand hoes and oxen drawn ploughs for ploughing, the medium and large scale farmers use mechanized methods for ploughing and harrowing. In terms of harvesting, small scale farmers use human labour while the large scale and some of the medium scale farmers have mechanized harvesting.

14.– MAFC quoted in Chemonics ( 2010 ), Staple Foods Value Chain Analysis, Country Report – Tanzania, USAID, June15.– Chemonics ( 2010 ), Staple Foods Value Chain Analysis, Country Report – Tanzania, USAID, June16.– Information for paragraph sourced from Mponda, O., Kidunda, B., Bennett, B. & Orr, A. ( 2013 ). A value chain analysis for pigeon pea in the southern regions of Tanzania. Socioeconomics Discussion Paper Series, Series Paper No. 17. Nairobi : International Crops Research Institute for the Semi-Arid Tropics.

On-farm storage and collection

There are two key methods of on farm storage for pulses. In the case of smallholder farmers, the storage is normally done in basic conditions with the produce stored in a small room of the house. These storage conditions are not ad-equate for reducing the levels of humidity. It can also lead to contamination and losses caused by pests. There are some third party warehouse operators who rent storage ( including cleaning and fumigation services ) to the farmers or small traders to reduce risks of contamination or loss17.

Medium to large-scale farmers normally possess ad-equate storage facilities that ensure product quality and reduce post-harvest losses.

At this stage, the producers ( small-scale and large-scale producers ) sell their pulses to village collectors and through brokers / agents to large traders. In most cases, farmers and farmers’ associations do not have access to market infor-mation on pulse prices and transportation costs.18 There are Agricultural Marketing Cooperative Societies ( AMCOS ) which mobilize farmers and provide a negotiating instrument with the traders and exporters’ agents.19 Large-scale traders buy pulses either directly from large / medium-scale farmers or from village collectors and small-scale farmers.

Contract farming would also be an effective channel for farmers to receive financing at this stage, as would a down payment at the signature of the contract. However, contract farming is seen as being unenforceable and ineffective by many stakeholders, owing to the weak enforcement of con-tracts in the United Republic of Tanzania. The Savings and Credit Cooperative Societies ( SACCOS ), are credit societies solely dedicated to the promotion of savings among their members and the creation of a source of credit for them at competitive rates of interest through financial intermediation. SACCOS can also help in productive, income-generating investments such as farming, craft institutions and purchas-ing of milling machines. AMCOS and SACCOS operate un-der the Cooperative Society Act No. 20 ( 2003 ), the Savings and Credit Cooperative Society Regulation ( 2004 ), and the Cooperative Development Policy ( 2002 ).

Trading

The major exporting companies establish their buying points throughout villages and through primary societies such as AMCOS. A commodity exchange for pulses is not yet in existence, although this has been raised as an effective structure for trading in pulses. In the absence of commod-ity exchanges, transaction costs remain high at this stage of the value chain, as do the credit risks.

17.– USAID( 2010 ) Staple food

18.– SNV Tanzania Portfolio Team Lake Zone ( 2005 ). Chickpea Subsector Study for Export Market in Lake Zone : A Quick Scan, Draft 3.19.– Ibid.

32


Wholesale / expor t

This channel entails large-scale traders and processors such as the Export Trading Company, which are verti-cally integrated in the value chain. Such enterprises buy pulses from their own buying posts, or through a network of agents, before they buy, trade, process and export the pulses. These companies are price setters since they deal with a high volume of trade. Moreover, they own big storage houses which enable them to buy large quantities when the price is low and store the same until the price improves.20 In certain instances, they buy pulses in large quantities and sell the unsold stocks back to local farmers as seeds or hulled, and the farmers sell them on the domestic market.

The key institutions supporting the sector value chainThe efficiency of the pulses sector value chain is also deter-mined by the function and roles of the trade and investment support institutions ( TISIs ) involved in supporting sector development. These institutions can be divided into four

20.– United States Agency for International Development ( 2010 ). Staple Foods Value Chain Analysis, Country Report – Tanzania. USAID.

main categories : policy support, trade services, business services and civil society network. The institutions presented in table 4 are drivers for future pulses growth but certain is-sues of capacity and resources will need to be addressed to ensure their effective support of the sector.

According to the FAO, despite the progress the United Republic of Tanzania has made in adopting a more coordi-nated sectoral approach, agricultural policies continue to be implemented through a myriad of different projects and pro-grammes. The Tanzanian Government continues to enact various – and often contradictory – policies related to trade. Therefore, while liberalization has taken place to a large ex-tent, price controls rather than market prices continue to exist for several major commodities, with the Government making direct interventions via the National Food Reserve Agency. Commodity boards also play an important role in some sectors, particularly regarding export products. The agricultural sector remains subject to both export taxes and high local taxation, as well as various ad hoc measures such as tariff waivers or export bans. In addition, the lack of suf-ficient transport and storage infrastructure hinders market integration and makes processing plants largely obsolete.21

21.– Monitoring African Food and Agricultural Policies ( 2013 ). Review of Food and Agricultural Policies in the United Republic of Tanzania 2005–2011. MAFAP Country Report Series. Rome : FAO.

Table 4 : TISIs supporting the pulses sector

Policy support • MAFSC• Department of Research and Devel-

opment• District Agriculture and Livestock

Development Office

• TOSCI• ARI• MIT• TanTrade• National Development Corporation

• TBS• CAMARTEC• EPZA• SIDO• ASA• TFRA• ACT

Trade support • Cereal and Other Produce Board• TIC• TFDA• TCCIA

• Tanzanian Exporters Association• TASTA• MVIWATA

• EAGC• TPSF• TFC• TAEC• Customs

Business services • TADB• Agribusiness Innovation Center• Tanzania Fertilizer Company

Civil society • Sustainable Agriculture Tanzania• Economic and Social Research Foundation• ANSAF• MVIWATA• RUDI• BRITEN• TGFA• SUGECO


33

Policy support network

MAFSC is responsible for guiding policy, including the coordination and implementation of those policies, in the agricultural sector. It is also the institution responsible for monitoring and regulating crops. The Ministry collaborates with actors in the private sector, local governments and oth-ers to provide technical services in crop extension, irrigation, plant protection and promotion, along with land use, mecha-nization, agricultural inputs, information services, coopera-tive development, research and training. The Ministry also oversees the work of the following organizations.

� The Department of Research and Development within MAFSC specifically focuses on undertaking research and training related to horticulture and pest control.

� The District Agriculture and Livestock Development Office works closely with farmers to conduct on-farm agricultural research and provide assistance. That as-sistance includes facilitating the transfer of appropriate technologies in agriculture, information dissemination, and adding value to crops through efficient preservation, processing and marketing methods.

� ASA is a semi-autonomous body which functions under MAFSC and is responsible for ensuring the production of high quality seeds for farmers. ASA works to expand seed production and improve distribution networks so that the relevant seeds are accessible to all farmers, as well as to increase demand among farmers for certified seed. The agency also works to strengthen and support research capacities for producing seed varieties that ad-dress farmer demands, and to establish public–private partnerships ( PPPs ) and joint ventures as a way of pro-moting increased private sector participation in the de-velopment of the seed industry.

� TFRA is an information and control resource centre re-sponsible for controlling fertilizer quality and enforcing the laws, policies and regulations which govern the manufac-turing, importation, trade and use of fertilizers.

� TOSCI is tasked with inspecting, sampling, testing, evalu-ating and certifying seeds.

� ARI is represented in various regions and is responsible for evaluating land, land use planning, providing fertilizer recommendations and soil analysis, and defining suitable agroecological zones.

There is a key role for MAFSC and it is related to the de-velopment of the sector, namely in seed development and certification, strengthening access to inputs, and guiding the development of efficient extension services to train farmers in good agricultural practices ( GAP ).

MIT is responsible for guiding the development of industry, facilitating regional and international trade, and marketing industry and trade. As part of its mission, this Ministry is tasked with promoting the United Republic of Tanzania’s investment opportunities in industrial development and

other key sectors, facilitating and maintaining trade rela-tions with foreign countries, and formulating a relevant policy framework.

� Working under MIT, TanTrade provides trade information and consultancy services aimed at establishing global business partnerships. TanTrade organizes international and specialized trade fairs, solo exhibitions, and product and market research, and facilitates trade missions, buy-er–seller meetings and contact marketing programmes.

� Also functioning under the umbrella of MIT, the National Development Corporation is an economic development organization that initiates, develops and guides the imple-mentation of economically viable projects undertaken in partnership with the private sector.

� TBS is responsible for preparing and publicizing Tanzanian standards. Operating under MIT, TBS formulates stand-ards, quality control, testing, calibration and training.

� CAMARTEC is a research and assistance organization that works to develop and disseminate improved agri-cultural and rural development technologies in order to boost production, and improve quality of life and de-crease poverty in rural areas. CAMARTEC functions un-der MIT.

� EPZA and SIDO are also under MIT. EPZA is responsible for coordinating and facilitating the processing of prod-ucts intended for export, as well as promoting investment and creating links between local economies and the inter-national market. Attracting and encouraging the transfer of new technology and investment in export-led indus-trialization are the priorities of EPZA. SIDO specifically focuses on the development of the small industry sector, working on a wide range of tasks from policy formulation to establishing small and medium-sized enterprises in rural and urban areas.

Trade service network

EAGC is a membership-based organization offering detailed market information services to its members. The Council is charged with developing and promoting a structured grain trading system in East Africa. It also strives to improve the policy and trading environment in the region with respect to the grain trade, strengthening market connections and reducing constraints along the value chain.

COPB is a newly formed organization which has the man-date to organize the trade of specific crops such as wheat and maize but also includes products such as pulses.

TIC is responsible for facilitating foreign and local investment in the United Republic of Tanzania, and acts as an advocacy platform for investors with the Government. It is mandated to monitor the Tanzanian business environment and growth of FDI in the country. It also acts as a one-stop shop for in-vestors by assisting investors to obtain all permits, licences and visas ; grants land derivative rights to investors ; and

34


assists investors to navigate administrative and regulatory hurdles. It is attached to the Prime Minister’s Office ( PMO ).

TFDA is responsible for quality controls of food and drug products consumed in the United Republic of Tanzania, in-cluding pulses. It is a regulatory body responsible for con-trolling the quality, safety and effectiveness of food, drugs, herbal drugs, cosmetics and medical devices. It was estab-lished under the Tanzania Food, Drugs and Cosmetics Act No. 1 of 2003. The TFDA, a semi-autonomous body under the Ministry of Health and Social Welfare, became opera-tional on 1 July 2003.

TAEC has the mandate to provide regulatory and radiation protection services, and coordinate, monitor and promote peaceful use of nuclear technology in the country. In particu-lar, TAEC regularly monitors radioactivity in imported and ex-ported foodstuffs. TAEC, in collaboration with TRA, controls the import and export of foodstuffs across Tanzanian bor-ders. TAEC is the official Government body responsible for all atomic energy matters in the United Republic of Tanzania.

TRA incorporates the functions of Customs and excise, trade facilitation, and procedures for import and export at the bor-ders. As such it has a critical role in the ease of cross-border trade and influences the competitiveness of the pulses sec-tor not only in accessing inputs, fertilizers and technology from abroad but also in facilitating exports. TRA is in charge of administering tariffs, duties and taxes at the border.

TCCIA facilitates the development of the United Republic of Tanzania’s private sector, undertaking sector-specific ad-vocacy and lobbying while providing a forum for business dialogue. This is also the institution tasked with providing certifications of origin, business information, and sector-specific surveys, trainings and workshops.

The Tanzanian Exporters Association is responsible for lobbying and advocating on behalf of Tanzanian businesses looking to export products abroad, building the capacity of those businesses to do so, and providing relevant informa-tion to exporters and importers.

TASTA promotes the seed trade as a member of the African Seed Association. TASTA works to promote the use of im-proved quality seed, strengthen communication between African seed industries and with the wider world, establish national seed trade associations in Africa, and provide in-formation services to members.

MVIWATA is a not-for-profit farmers’ lobbying and advocacy association which facilitates communication between farm-ers by organizing them into groups and larger networks. The association works to act as the public voice of small farmers and provides a selling platform as well as coordinating train-ings and farm improvements.

ACT is a union of farmer, livestock keeper, supplier, proces-sor, transporter and researcher groups and associations providing information and assistance to its members. The Council’s aim is to push for improved economic and organi-zational environments within those sectors.

TPSF is responsible for facilitating the overall growth of the private sector. It undertakes policy impact programmes aimed at influencing national policies in favour of private sector businesses, as well as providing capacity-building and other member services, and seeking to improve enter-prise competitiveness.

TFC represents the interests of various cooperatives asso-ciations. Several of these cooperatives provide services to pulse producers and traders.

Business service network

TADB offers credit to the agricultural sector, along with capacity-building strategies and programmes designed to strengthen the value chain.

The Agribusiness Innovation Center links markets through the provision of market information, marketing skills and market linkages in the value chain, along with a range of financial and business services.

The Tanzania Fertilizer Company Limited is a Government-owned company that supplies quality fertilizers at competi-tive prices. It produces, imports and distributes fertilizers ( and other agricultural inputs ) in the United Republic of Tanzania and internationally. The company also participates in relevant research projects.

Civil society network

Sustainable Agriculture Tanzania works to help farmers in-crease yields in a sustainable and environmentally friendly way, with the goal of ultimately improving food security and decreasing poverty.

The Economic and Social Research Foundation is a re-search and networking organization which conducts policy research and analysis, strengthens capacity for such re-search and analysis, increases awareness among decision makers, and encourages and supports debate, discourse and networking on relevant policy issues.

Agricultural Non State Actors Forum ( ANSAF ) is a platform and forum for private sector and civil society to learn and channel advocacy issues that affects small holder farmers as well as addressing issues within specific value chains

Tanzania Graduate Farmers Association ( TGFA ) is a na-tional organisation which promotes agricultural value chain


35

development by encouraging young graduates to engage as actors along value chains including in pulses.

The Rural Urban Development Initiative ( RUDI ) is a na-tional civil society that works with small scale farmers across the country and supports production, storage and collective marketing including contributing to advocacy work. They also act as service providers and capacity builders for farm-ers and farmer groups.

Building Rural Incomes Through Enterprises ( BRITEN ) is a national civil society organisation specialized in work-ing with farmers and agro dealers to ensure access to agri-cultural inputs as well as developing agro dealer networks across the country.

Pulses sector TISIs to support value chain developmentMAFSC and MIT, and their related departments and affiliated institutions, have a key role to play in enabling the develop-ment of the Tanzanian pulses sector. These institutions have

only recently defined pulses as an emerging and vibrant sector, and as a result there are still limited resources al-located to support this specific value chain. There is a need for investment in research and development by these minis-tries, as well as improved access to inputs and information, and guidance in the development of training services along the value chain.

The institutions supporting trade operations – such as EACG, TIC, TFDA, TAEC and TCCIA – provide essential sup-port services for the sector. It appears that overall these in-stitutions are performing their functions adequately in terms of their role in trade and investment formalities and promo-tion. However, it has been noted that certain procedures, such as the costly radiation certificate, need to be revised to improve the performance of the sector. In terms of the role of these institutions in further developing the sector, certain key improvements are required to increase inter-institutional coordination and investment promotion. Overall, the TISI network of the Tanzanian pulses sector is nascent, just like the sector itself, which explains the need for certain improve-ments to be made in full support of the sector’s growth.

THE ROLE OF INVESTMENT IN THE CURRENT PULSES VALUE CHAIN

The development of the Tanzanian pulses sector is linked to the capacity of the sector to attract investment for its de-velopment. The following section reviews the current posi-tion of the United Republic of Tanzania in terms of attracting investment in the agriculture sector and, by extension, the pulses sector.

Table 5 presents several indicators of the attractiveness of the United Republic of Tanzania’s business environment, particularly as it compares to those of other likely destina-tions that attract FDI in the pulses sector. In terms of the ease of doing business and economic freedom, the United Republic of Tanzania is in the same range of ranking as India, Pakistan and Kenya. Myanmar, which is the source of 90 % of India’s pulse imports, lags significantly in both indicators, giving the United Republic of Tanzania a relative selling point among Indian and Pakistani investors.

Based on interviews with sector experts, it appears that Myanmar and Kenya are the United Republic of Tanzania’s closest competitors for Indian and Pakistani investment in pulses trading and basic processing. By the investment cli-mate measures shown in table 5, the United Republic of Tanzania consistently outranks Myanmar. With respect to Kenya, the United Republic of Tanzania ranks significantly better in terms of economic freedom and the perception of corruption but ranks lower in level of industrialization ( United Nations Industrial Development Organization, 2010 ) and the

‘set of institutions, policies, and factors that determine the level of productivity of a country’ ( World Economic Forum, 2014 ).

In terms of FDI policy specifically, the United Republic of Tanzania effectively gives national treatment to FDI, provid-ing the standard guarantees against expropriation and al-lowing unlimited repatriation of profits, although bureaucratic hurdles can lead to delays of days or even weeks when re-patriating funds. The United Republic of Tanzania is a mem-ber of the Multilateral Investment Guarantee Agency and the International Centre for Settlement of Investment Disputes, thereby offering investors the possibility of qualifying for in-vestment guarantees and a venue for investor – State dispute settlement. This standard suite of FDI policies mitigates the biggest political risks to foreign investment.

There is no specific law regulating FDI, but several Acts in recent years have restricted ownership in certain sectors, including tourism, mining and telecommunications. These acts do not touch on agribusiness but some investors have expressed concern that they reflect ‘suspicion of foreign investors’22 which could grow and create additional impedi-ments to FDI more generally.

22.– United States Department of State ( 2014 ) Tanzania Invetsment Climate Statement

36


Table 5 : The investment climate in the United Republic of Tanzania and possible competitors for pulse investment

International benchmark IndiaUnited

Republic of Tanzania

Pakistan Kenya Bangladesh Ethiopia Myanmar

Average of six major rankings 94 108 115 121 125 127 136

Ease of Doing Business ranking ( World Bank Group, 2015 ) 142 131 128 136 173 132 177

Competitive Industrial Performance ranking ( United Nations Industrial Development Organization, 2010 ) 43 106 74 102 78 130 Not ranked

Global Competitiveness Index ( World Economic Forum, 2014 ) 71 121 129 90 109 118 134

Inward FDI Performance Index ( United Nations Conference on Trade and Development, 2010 ) 97 59 110 129 114 120 52

Corruption Perception Index ( Transparency International, 2014 ) 85 119 126 145 ( tie ) 145 ( tie ) 110 156

Economic Freedom Index ( Heritage Foundation, 2015 ) 128 109 121 122 131 149 161

TIC is the country’s national investment promotion agency, and EPZA also seeks to attract investors to operate within its current and planned zones. TIC enjoys a relatively good reputation internationally, having been recognized by the United Nations Conference on Trade and Development and other institutions with awards for some aspects of in-vestment promotion. TIC and the Benjamin William Mkapa Special Economic Zone provide one-stop help obtaining permits, licences, visas and land access.

Standard incentives available to foreign agribusiness investors are as follows :

� No import duty on imported capital goods � No value added tax on imported capital goods � One hundred per cent capital allowance in agriculture � Fifty per cent capital allowance in manufacturing � Depreciation allowance of 37.5 % to 50 %, depending on

the asset class � Automatic qualification for up to five expatriate work visas,

depending on the project type � If in an export processing zone, additional exemptions

on : – Corporate taxes for 10 years – Duties and taxes on imported raw materials – Value added tax for utility services and on construction

materials – Withholding taxes on rent, dividends and interest.

Additional incentives are available to ‘strategic investors’ under Rule 49 of the Tanzania Investment Regulations, but as of July 2014 this status had been accorded to only 12 agribusiness investors ( and 29 total investors in all sectors ).

Sector specifics

As indicated above, all Tanzanian land belongs to the State. The Government has set aside plots of land for lease ( up to 99 years ) by foreigners. Subleasing from Tanzanians or entering into joint ventures with Tanzanian leaseholders are among the few other means for foreigners to access land.

The agricultural minimum wage is approximately US $ 59 per month, which is regionally competitive. The agricultur-al value added per worker ( in constant 2005 US $ ) in the United Republic of Tanzania ( 310 ) is higher than in Ethiopia ( 269 ), but lower than in Kenya ( 390 ).

Two per cent of agricultural land is irrigated, which ex-ceeds the percentages of Myanmar, Kenya and Ethiopia. However, the average application rate of fertilizer ( in kg / ha / year ) is far lower in the United Republic of Tanzania ( 5 ) than in Kenya ( 30 ) or Ethiopia ( 14 ).

As indicated above, to stimulate the development of agriculture, the Government has prioritized agribusiness development through its Kilimo Kwanza ( Transforming Agriculture ) strategy and the development of SAGCOT ; and agribusiness, together with textiles and electronics, is a target sector for investment promotion by EPZA. Such sec-tor development plans may or may not be successful but they, and the roles they envision for the private sector, are important to potential agribusiness investors as an indicator of supportive public policies and, hopefully, as a preview of the country’s future markets and business environment for pulses.


37

The structure and role of investment in current performanceEntrepreneurs are drawn to invest in quickly growing mar-kets, where profit margins exceed industry averages and where they can be competitive with existing players. Pigeon peas, chickpeas and dry peas are the pulses seeing the fastest global market growth today for consumption as dhal. Chickpeas and dry peas ( yellow ) are two of the three pulse varieties most used in the higher-margin, well-growing markets for pulse flours and the heart-healthy, vegetarian, and / or gluten-free packaged foods made from that flour.

The United Republic of Tanzania is a top source of these pulse varieties globally and the first in East Africa. Furthermore, it still has considerable room for growth in terms of suitable uncultivated land. These factors make the country a very promising destination for investors in the pulses sector, and certainly the most attractive in East Africa. This attractiveness has already been demonstrated on a small scale by foreign investments in a range of pulse-related activities, including contract farming, agricultural ser-vices, collateral management, trading and dhal processing.

The Agrica subsidiary Kilombero Plantations is based in the United Republic of Tanzania, where it is developing a farm of nearly 6,000 hectares that will produce 5,000 tons of pulses annually, as an intercrop for rice and / or maize. The first companies in an anticipated wave of Indian pulse processors have arrived with plans to vertically integrate by expanding into pulse trading in the United Republic of Tanzania and eventually moving their processing there as well. Quality Food Products employs contract farming ar-rangements and offers mechanization services to farmers that provide it with high quality seed pulses for process-ing and export to premium markets in Italy. Beyond pulses specifically, the Tanzanian agribusiness sector has begun

to attract input manufacturers, such as a Chinese fertilizer producer, and service providers like Société Generale de Surveillance ( SGS ) and ACE Global, who provide collat-eral management and other quality and risk management services.

In the short term, without any special Government inter-vention, it appears that several medium-sized pulse proces-sors ( 20–50 tons per day ) from India and Pakistan are intent on establishing trading, and eventually dhal processing, op-erations in the United Republic of Tanzania. As such, these investors present very immediate opportunities for invest-ment generation in the pulses sector and should be targeted for investment promotion as quickly as possible, before they choose to establish elsewhere.

Basic investor targeting and investor aftercare could enhance these inflows without much Government action to improve the country’s attractiveness to investors. However, investment projects elsewhere along the value chain or in supporting services, including those that are more funda-mental to the sector’s development ( e.g. contract farming, collateral management ) and those that promise higher value addition ( e.g. packaged food manufacturing ) will be linked to Government action to improve pulse quality and supply, as described in the strategic considerations section and the PoA sections of this roadmap. Top actions relate to the im-provement of inputs ( seeds, fertilizer and pesticides ), better organized pulse markets at the farm gate level, better ac-cess to financing for small farmers, and more widespread farm mechanization.

FDI would both follow these improvements and play a role in achieving them. For example, a few early successes in attracting contract farmers or foreign development of seeds for the United Republic of Tanzania would make it easier for other investors to follow. In this way, FDI is both a means and an objective of sector development.

Photo: Climate Change, Agriculture and Food Security (CC BY-NC-SA 2.0), Crop diversification

38


STRATEGIC ISSUES AND COMPETITIVENESS CONSTRAINTS

A review of literature and extensive stakeholder consulta-tions have revealed a number of constraints in the pulses sector which affects its long-term performance. Box 2 shows the key performance issues identified as challenges to the performance of the value chain. In order to ensure

the roadmap is efficient and specific, only the most critical bottlenecks are presented in further detail, followed by an explanation of how they will be addressed through the activi-ties of the roadmap.

Box 2 : Key performance issues of the pulse value chain

Supply-side issues :

1. Lack of commercially available improved pulse varieties and deficient seed multiplication system, including for Quality Declared Seeds ( QDS )

2. Limited interest from farmers in using improved varieties be-cause of the high cost of seeds and other inputs

3. Low productivity levels resulting from the limited availability of agricultural inputs, training and services to improve production and reduce losses

4. Limited access to rural finance for pulse production5. Low levels of quality assurance and disease control in the

production of pulses6. Limited availability of efficient storage and warehousing along

the value chain

Business environment issues :

1. Weak coordination among stakeholders, which leads to inef-ficient sector development and implementation of policies

2. Limited capacity of key TISIs to support sector development in the area of agribusiness services

3. Low levels of investment attracted into the sector at the levels of research and development, inputs, production techniques, postharvest handling and storage, and distribution

Market entry issues :

1. Lack of market information and trade promotion activities2. Limited use of contract management as a means to secure

supply-side conditions3. Often burdensome and costly administrative and export proce-

dures and low performance of the logistics sector

SUPPLY-SIDE ISSUES

Lack of commercially available improved pulse varieties and deficient seed multiplication system, including for QDS

According to table 6, less than 0.5 % of seeds used in pulse production are certified, and only between 3.8 % and 13 % of land is sowed with improved seeds.

The low usage rate of improved varieties of seeds by pulse farmers is caused by a variety of factors. Important reasons include the low availability of seeds, caused by a limited release of new varieties for multiplication ; limited seed certification capacities ; and limited coordination of production between public and private operators.23 These

23.– This information was also confirmed by various reports. See Association for Strengthening Agricultural Research in Eastern and Central Africa / KIT ( 2014 ). Tanzania Seed Sector Assessment : A Participatory National Seed Sector Assessment for the Development of an Integrated Seed Sector Development Programme in Tanzania, p. 13. Entebbe, Uganda.

issues have been ongoing since the launch of the 1989 National Seed Industry Development Programme that re-duced the monopoly of the public sector on the seed sector. The development of QDS has helped to partially increase the volumes of improved seeds available but challenges related to quality and traceability remain.

A key constraint limiting use of improved seeds also relates to farmers’ access to agro-dealers. According to Figure 14, a farmer in the United Republic of Tanzania needs to travel between 4 and 12 kilometres to access an agro-dealer.

As a result of limited access to improved seeds, which have different specificities such as high adaptability in dif-ferent climatic conditions and rapid maturity dates, farmers prefer to retain seeds from their production for replanting the following season.24 This reproduction of open pollinated varieties leads to decreasing annual yields and adulteration.

24.– Tata Africa Holdings ( Tanzania ) Ltd ( 2013 ). Production Focused Value Chain Study of Pigeon Pea, Green Gram and Chickpea in Tanzania.


39

The roadmap envisions targeting these issues by encourag-ing coordination between public research institutes, private seed breeders and processors / exporters ; encouraging the dissemination of research results ; building capacity for seed certification ; and contributing to organizing a pulse seeds distribution network in collaboration with ASA and TASTA.

These issues will be tackled through the roadmap by encouraging PPP investment within the sector, which will ensure that the seed varieties can meet market demands, and sustainable seed varieties would be developed through continual public research and dissemination to stakeholders. The following activities of the PoA focus on these issues : 1.3.13, 1.3.16, 2.1.2, 2.1.3, 2.2.1 and 2.2.2.

Limited interest from farmers in using improved varieties because of the high cost of seeds and other inputs

In addition to the abovementioned issues, improved and certified pulses are perceived as expensive and having a limited impact for improving yields compared with tradition-ally used open pollinated varieties. As indicated in figure 15, less than 5 % of seeds come from a recognized provider of improved varieties.

It is believed that a primary root cause for this perception by farmers is limited knowledge of the economic value of producing pulses from using improved varieties. This ex-plains the limited willingness to invest in improved seeds. However, based on appendix 1, there are indeed greater costs to producing improved varieties but there are also im-portant gains. The limited promotion of pulses production and the value of using certified varieties, inclusing QDS, are leading to misconceptions by farmers concerning the cost / benefits of improved varieties.

Table 6 : Seed use for selected pulses in the United Republic of Tanzania

Crop Area planted ( ha ) Seed rate ( kg / ha )Seed requirement

( tons )Certified seeds

sold ( tons )

Percentage of total seeds

certified

Percentage area with improved

seed

Beans 749 766 50 37 488 80 0.2 4.7

Pigeon peas 112 361 15 1 685 – 0.0 n / a

Cowpeas 89 949 20 1 799 – 0.0 3.8

Chickpeas 63 207 40 2 528 – 0.0 2.0

Mung beans 8 219 10 82 – 0.0 13.0

Source : 2007 / 2008 agricultural sample survey and the World Bank ( 2012 ) from :

Association for Strengthening Agricultural Research in Eastern and Central Africa / KIT ( 2014 ).

Figure 14 : Average distance between farm and agro-dealer ( kilometres )

Source : Alliance for a Green Revolution in Africa ( 2010 ).

40


Figure 15 : Sources of farmers’ seeds

Source : ASARECA/KIT, 2014. Tanzania Seed Sector Assessment.

In order to address this bottleneck, the roadmap encourages an increase in the promotion of pulses as a viable production crop. It is also envisaged to increase yield and information dissemination regarding the best practices for production, namely through demonstration plots. The following activities of the PoA focus on these challenges : 1.2.1 to 1.2.7, and 2.1.4 and 2.1.5.

Low productivity levels resulting from the limited availabil-ity of agricultural inputs, training and services to improve production and reduce losses.

According to certain studies, the United Republic of Tanzania is not expected to be able to satisfy growing de-mand due to its low use of fertilizers and consequent low yields.25 Farmers are not regularly informed and trained on the best techniques for pulse production, including GAP, which leads to pre- and post-harvest losses. Currently, farm-ers receive the majority of their information about produc-tion techniques, such as soil fertility management practices, through family / friends ( 40 % ), fellow farmers ( 39 % ) and extension workers ( 14 % ).26 A primary cause for this situa-tion is the limited capacity of extension services to support pulse producers. As indicated in table 7, there are limited resources and some organizational challenges within exten-

25.– Katungi. E., Farrow. A., Chianu. J., Sperling. L., and Beebe. S. ( 2009 ). Common Bean in Eastern and Southern Africa : a Situation and Outlook Analysis. International Centre for Tropical Agriculture.26.– Alliance for a Green Revolution in Africa ( 2010 ). Baseline Report for AGRA’s Interventions in Tanzania, p. 62. Lusaka, Zambia.

sion services. In addition, extension officers often lack the relevant knowledge on seed varieties for pulses.

As indicated above, it is also difficult for a farmer to ac-cess the adequate inputs for production. Even though some farmers can have access to such inputs at prices which may be out of reach for the small scale farmers ( machinery, ferti-liser, etc ). Moreover, according to a national workshop held in May 2015 on Post harvest technologies organised by the Tanzania Markets Policy Action Node, it was noted that the situation is worse when it comes to accessing post-harvest services such as threshers, temporary silos, hermetic co-coons etc. which are required to reduce post-harvest losses, mainly as a result of the prohibitive costs or the unavailability of technology locally.

In order to address these issues, the roadmap aims to se-cure access to support services for farmers by promoting the development of agribusiness services for pulses produc-tions. The following activities of the PoA focus on these chal-lenges : 2.3.1 to 2.3.3.

Limited access to rural finance for pulse production

According to survey evidence, there are very few small-scale farmers that have access to rural finance to expand their pro-duction.27 Furthermore, for those that request credit, the vast majority of funding comes from SACCOS ( see figure 16 ).

27.– Finscope ( 2013 ). Tanzania 2013. Available from http : / / www.fsdt.or.tz / finscope / sites / default / files / pdfs / FinScope-Brochure-2013.pdf.


41

The very low level of credit for agricultural development is part-ly explained by the limited provision of services in rural areas and a lack of viable collateral for farmers to use in requesting loans. This context leads farmers not to seek loans, relying primarily on their own resources for developing production. As indicated in appendix 1, in order to generate the bene-fits / margin of improved agricultural practices, it is essential for farmers to have access to finance. Secondly, a credit guaran-tee mechanism that can support farmer’s access to credit is missing. Finally, current limitations with the warehouse receipt credit system do not facilitate access to credit for farmers.

In order to address these issues, the roadmap aims to en-courage greater coordination between the pulses sector and SACCOS, the development of credit guarantees for farmers, and increased training of bank officials on the specificities of agricultural production. The following activities of the PoA focus on these challenges : 2.5.1 to 2.5.4.

Low levels of quality assurance and disease control in the production of pulses

Quality issues need to be addressed along the entire pulses value chain, from production to processing and exporting. The production of pulses can be spoiled by crop diseases

( e.g. Alectra vogelii, a semi-parasitic weed ) and pests. The promotion of GAP through public and private extension ser-vices is critical to reduce incidences of contamination. For certain pulses such as pigeon peas, there is a need to man-age percentage of humidity in the drying process to ensure maximum value. For this reason, the issue of adequate stor-age is addressed in the roadmap ( see below ).

The Asian market, mainly India, generally accepts fair average quality as the norm. Since this mechanism of qual-ity certification and standardization is not very common in the United Republic of Tanzania, it makes the buyer appre-hensive about the quality delivered, which frequently leads to disputes. Also, each destination country has a different quality expectation. This implies that suppliers need to un-derstand the various buyers’ requirements and should have the necessary structure to respond to various buyers’ needs.

Quality can be the major limiting factor for the export of Tanzanian pulses. At the moment, buyers in international markets prefer to buy from transnational companies ( rather than from exporters in Africa ) because they offer a better assurance of quality. A strong system of quality certification can help in developing confidence between buyers and sell-ers. The pulses associations on both sides of the transaction can play the role of arbitrator and make it easy to resolve quality disputes more swiftly.

Photo: [mementosis] (CC BY-NC-ND 2.0), Beans.

42


Figure 16 : Source of finance for farmers requesting credit ( percentage of total )

Source : Alliance for a Green Revolution in Africa ( 2010 ), p.89.

According to TBS, there are only two technical standards for the pulses sector in the United Republic of Tanzania ( TZS 1084 :2009( E ) Pigeon peas-specification ; and TZS 875 :2006( E ) Beans-specifications ). These standards are not well known to the various stakeholders in the pulses value chain. The development of new standards would be required for emerging pulses such as green gram, chick-peas ( yellow gram ), kidney beans, and processed dhal. TBS has a role to play in raising awareness of the standards and in enforcing them on the domestic market.

To ensure improvement in the quality of Tanzanian pulses, the roadmap proposes increasing public and private dia-logue with TBS to agree on a model to ensure compliance with international standards, provide targeted trainings on GAP, establish a price differentiation mechanism based on grades, and develop a pulse-specific pest management plan. The following activities of the PoA focus on these chal-lenges : 1.3.8, 1.5.1, 1.5.2, 3.1.1 to 3.1.7, and 3.3.3.

Limited availability of efficient storage and warehousing along the value chain

The adequate storage of pulses is a success factor for the development of the sector in order to ensure quality, aggre-gate volume, and facilitate trading of large volumes. The cur-rent conditions of storage of pulses at the farm level lead to postharvest losses due to pest, mildew or even over-drying. The lack of silos at storage facilities exposes pulses to pest and rodent infections. There are few village-level storage fa-cilities available for pulse trading because the village stores

that were built by the Government and transferred to village councils are often in need of rehabilitation, or are misused or mismanaged.

The limited capacity to bulk store pulses at the regional level also affects the quality of postharvest management for pulses. According to information collected, the warehouse receipt system is mainly targeted at key crops ( sesame, cashew nut, sunflower, etc. ) and for large operations with a capacity to store a minimum of 5,000 tons. Additionally, there is currently no integrated stock management sys-tem at the national level to enable better management of volumes nationwide – from village storage to large export warehouses. This situation makes it more difficult for sector operators to aggregate the volumes required to respond to large orders from international buyers.

Improvement of storage and warehouse management will be addressed in the roadmap through the promotion of a PPP for the renovation of facilities, the revision of the warehouse receipt system policy, encouraging farmers’ associations to get accredited operators of the warehouse receipt system, and encouraging the integration of collateral managers in the management of stocks. The following activities of the PoA focus on these challenges : 2.4.1 to 2.4.5.


43

Figure 17 : Institutional framework for seeds

Source : Otunge, D. ( 2012 ), quoted in Association for Strengthening Agricultural Research in Eastern and Central Africa / KIT ( 2014 ).

BUSINESS ENVIRONMENT ISSUES

Weak coordination among stakeholders, which leads to in-efficient sector development and implementation of policies

A common complaint among stakeholders in the pulses sector relates to the lack of coordination among them and the fact that this leads to overlapping structures and a lack of clarity in the lines of responsibilities. An example of this occurs in the field of stakeholders for seeds, where recently a national task force was established to regroup the different actors in the sector in order to monitor implementation and advise on policy change. A national seed sector platform was established to raise awareness on seed issues and to promote awareness of the latest developments in this area. While the coordination mechanism has been established, the sector’s institutional framework remains relatively com-plex ( see figure 17 ).

Part of the difficulty relating to coordination is due to the fact that there is no coordination mechanism along the pulses value chain. EAGC is a membership organization whose members include farmers, traders and processers. However, it does not encompass all players in the sector. COPB, whose main function is to carry out commercial ac-tivities related to the development of the cereals and other produce industry, is currently focused on other cereal sec-tors and not pulses. Moreover, various associations in the sector remain quite weak in general. Tanzanian farmers are not organized in any form for collective marketing, which increases transaction costs for buyers. Farmers individually trade in the market and this increases their transaction costs

and weakens their bargaining positions. Some of these farmers’ organizations are not formally registered.

There is no formal public and private dialogue to guide the development of the sector, which is recommended in order to align policies, such as those relating to COPB or TADB, in order to ensure that the interests of the sector are taken into account.

This challenge will be addressed in the roadmap by estab-lishing a network of institutions to improve the sector’s co-ordination. In particular, the roadmap will build a centralized repository of the stakeholders in the sector, promote the use of a protocol for network stakeholders to work together, es-tablish a sector coordination unit and develop partnerships with organizations overseas. The following activities of the PoA focus on these challenges : 1.1.1 to 1.1.5.

Limited capacity of key TISIs to support sector develop-ment in the area of agribusiness services

As highlighted under the list of supply-side constraints, agribusiness services are lacking, as are other essential services to promote the development of the sector, includ-ing research and development, standards and certification services, and investment promotion, market information and commercialization services. There is currently no spe-cific provision of services from TanTrade, TIC, TBS, and as-sociations such as the Tanzania Horticulture Association, Cooperatives Commission, etc. for the pulses sector.

As mentioned earlier, agricultural extension services are absent or insufficiently up-to-date with the latest develop-ments in production techniques. Overall there are distinctly

44


limited levels of human, financial and technical resources dedicated to the pulses sector.

The roadmap will address these challenges by : � Improving dialogue between TanTrade and TIC and the

private sector � Developing promotional materials for TIC on pulses � Developing agribusiness focal points in TIC and building

PPP capacity for infrastructure investment � Building competence in TanTrade on pulses and market

intelligence on European Union ( EU ) and Indian markets � Facilitating TBS support to the private sector for compli-

ance with standards � Building institutions to provide market information � Mapping ARIs and developing the research capabilities

and communication strategies of ARIs � Promoting activities at TOSCI for seed dissemination � Improving the monitoring capacity of the Tanzania

Warehouse Licensing Board ( TWLB ) � Organizing staff in export processing zones to support the

agribusiness sector � Building the capacity of TISIs and private sector organiza-

tions on market information systems. � The following activities of the PoA focus on these chal-

lenges : 1.3.1 to 1.3.19.

Low levels of investment attracted into the sector at the levels of research and development, inputs, produc-tion techniques, postharvest handling and storage, and distribution.

The level of FDI has increased rapidly since the mid-2000s, although year-to-year rates have been erratic. The United

Republic of Tanzania had an inward FDI stock estimated at 38 % of gross domestic product in 2013, compared with 26.7 % in 2000.28 TIC and EPZA have a leading role to play in the promotion of investment in the agricultural sector. Activities linked to investment promotion have not yet been based on a detailed analysis of the priority areas for targeting investment. Such targeted investment efforts should include also promoting joint ventures or greenfield investments to facilitate technological transfer, capacity-building to strengthen market linkages, and the develop-ment of feasibility studies and sustainable agricultural risk management markets, through such companies as India’s Mohindra, United States-based AGCO and the United Kingdom’s Armajaro Trading Ltd. Moreover, the poor rank-ing of the United Republic of Tanzania in the World Bank’s Doing Business rankings has dampened investment interest in the country ( see figure 18 ).

The United Republic of Tanzania offers common fis-cal and investment incentives, as well as additional incen-tives to ‘strategic investors’ under Rule 49 of the Tanzania Investment Regulations. The additional incentives available and the criteria by which investors may qualify for them have been criticized as lacking transparency. A well-publicized criterion is the minimum capital requirement of US $ 50 mil-lion ( recently raised from $20 million ), which appears to be restrictive since, as of July 2014, only 12 agribusiness invest-ments had qualified. Clarifying the additional incentives and qualification criteria, and giving agribusiness investments priority status, could offer an effective investment promo-tion tool for large-scale investments, such as those in seed distribution and integrated crop logistics.

28.– United Nations Conference on Trade and Development ( various dates ). World Investment Report.

Figure 18 : Doing Business ranking for the United Republic of Tanzania in 2015 ( out of 189 countries )

Source : International Finance Corporation ( 2015 )


45

The roadmap will address the promotion of investment by preparing an investment profile for dhal processing targeted at various markets, and by encouraging the development of medium- and large-scale agribusiness services across the United Republic of Tanzania. This will be achieved by extend-ing special incentives to investors in agribusiness services under the ‘strategic investor’ status. The following activities of the PoA focus on these challenges : 1.4.5, 1.4.6 and 2.3.1.

MARKET ENTRY ISSUES

Lack of market information and trade promotion activities

Insufficient market information and market intelligence on potential markets of interest to pulse exporters has been highlighted as one of the many factors restricting the de-velopment and growth of the pulses sector. This lack of information is especially restrictive for those stakeholders located in upstream operations, whether they are small or large-scale producers. These producers tend to rely on Agricultural Marketing Co-operative Societies ( AMCOS ) as their main source of information, in addition to brokers and different agents. The number of channels information has to go through distorts both the reliability and the timeliness of information received by producers.

A commodity exchange would facilitate price and de-mand information disclosures. However, pulses are not currently traded on any exchange. Therefore the most re-liable source of market information would be through a public sector organization to reduce the risk of distortions. The role of TanTrade is significant in providing price sig-nals, trends in market demand and reports on market intel-ligence. TanTrade should also be more active in promoting business-to-business meetings and facilitating the participa-tion of stakeholders in trade fairs.

EAGC, through its base in the United Republic of Tanzania, plays a critical role in making market information available to producers and in promoting pulses in interna-tional markets, particularly targeting some key markets such as India, the United Kingdom and the Middle East. In addi-tion, information on market issues might be made available through EAGC’s Regional Agricultural Trade Intelligence Network. Further information can be made available by creating specialized web portals, e-mails, fairs, groups, or using the National Bureau of Statistics network. On this matter, grant programmes such as the ‘First Mile’, ‘Cash on the Bag’, and ‘Building Effective Commercial Rural Market Services in the United Republic of Tanzania’ are intended to use technology, mobile phones and Internet to facilitate the communication of market price information to specific

beneficiaries, creating a network of local informants to dis-seminate price data to farmers.29

In order to address this concern, the roadmap will strengthen market development capacities in the sector by carrying out market intelligence reports on key markets for pulses, includ-ing international organizations that have large procurement programmes which include pulses. The roadmap will also build the capacity of MVIWATA and TFC to provide improved market information on volume, quality and supply quantities’ consistency requirements through emailing their constitu-ents, website, the National Bureau of Statistics network, and other forums. TISIs and private sector organizations such as MIT, TFC, TanTrade, COPB, MVIWATA and the private sector will have their capacities built on market information systems ( with a specific focus on pulses ) using different systems in-cluding text messages, call centres, etc. Coherent distribu-tion and alignment of market information provision will be ensured. A final important area that will be tackled by the roadmap is providing training to farmers’ associations / co-ops on how to access global market information and use it for proactive planning. The following activities of the PoA focus on these challenges : 1.2.1, 1.2.5, 1.3.6, 1.3.7, 1.3.9, 1.3.16, and 1.4.1 to 1.4.7.

Limited use of contract management as a means to se-cure supply-side consistency for buyers

An important element in guaranteeing supply consistency is for buyers to engage in contract farming with farmers. The situation in the United Republic of Tanzania is such that contract farming is very limited. Contract farming relates to agreements between farmers and producers and marketing firms for the production and supply of agricultural products under a forward contract, usually at predetermined prices. The usage rates of contract farming are influenced by the organization of farmers’ groups, the financial assets at the disposal of farmers, and the services linked to the package of contract farming.30

International buyers find it easier to buy from transna-tional companies and avoid directly dealing with Tanzanian producers as a result of the absence of an effective contract farming culture. The laws governing contract enforcement need to be strengthened. The Tanzanian legal structure is not equipped to manage contract defaults and buyers’ risk management systems, which in turn makes it difficult for buyers to participate in such markets directly by using contracts. As a result, buyers prefer to buy from transna-tional companies as it is more manageable in terms of credit risks. In other cases, the buying company has to

29.– International Fund for Agricultural Development ( 2014 ). United Republic of Tanzania – Country Programme Evaluation ( final – unedited version ), p. 57.30.– Food and Agriculture Organization of the United Nations ( 2006 ). Contract Farming : Status and Prospects for Tanzania, Final Report.

Photo: CIAT (CC BY-SA 2.0), climbing beans.

46


send a representative to the sellers’ location to en-sure that the terms of the contract are well un-derstood and will be respected. This pushes up the cost of procurement. Stakeholders have expressed the desire to strength-en Tanzanian laws and enforcement mechanisms in order to reduce transaction costs.

The roadmap will address the constraints relating to contract farming by suppor ting the development of a contract farming model for pulses production and trading in the United Republic of Tanzania by working with the private sector. There will be a frame-work for producers to estab-lish forward contracts in order to secure a price for their crop prior to harvest, which elimi-nates both price and credit risk. The following activity of the PoA focuses on these challenges : 1.2.6

Often burdensome and costly ad-ministrative and export procedures and low performance of the logistics sector

Tanzanian pulse exporters face a number of chal-lenges linked to cross-border measures. The import licensing procedures, the number of documents needed to export, and the permissions and permits from different ministries which are required to export, create a significant burden on exporters and affect the sector’s competitive-ness. Beyond sanitary and phytosanitary measures ( i.e. technical regulations ) and quality assurance standards ( i.e. voluntary standards ), an example of burdensome proce-dures is the requirement for an exporter of pulses to obtain a radiation certificate. According to article 30 of the Atomic Energy Act of 2002 : ‘It shall be a requirement under this Act for any manufacturer, importer and exporter of food-stuffs specified in relevant regulations to obtain a radioac-tivity analysis certificate from the Commission before the said food is imported into the country or exported out of the country or distributed for human and animal consumption.’ This regulation is applied to exports of pulses even if it is not a requirement for importing countries. This additional cost to the exporter currently reduces competitiveness.

Beyond border measures, there are also a number of challenges within the borders. The major pulse produc-tion areas in the United Republic of Tanzania are Arusha and Babati, and the gateway to exports is the port in Dar es Salaam. The logistics for transporting goods between

Arusha / Babati and Dar es Salaam are a challenge, par-ticularly during the peak business ( harvest ) period, when transportation services are overwhelmed and availability of transportation services is limited. However, there appears to be no investment in expanding the network of trucks avail-able, owing to the fact that the excess demand is seasonal. These challenges make the cost of logistics higher than for competing nations such as Canada or Australia. Hence, logistical issues act as a competitiveness constraint for buyers. Such constraints not only make the cost of internal trade much higher but also effect the timeliness of deliveries. Timeliness is an important factor in buyers’ decisions be-cause the markets offer a very short window of opportunity.

The roadmap will address the constraints relating to trade facilitation and transportation measures by developing an efficient logistics system for exporting and by tackling do-mestic logistics measures as a means to improve internal trade conditions. The following activities of the PoA focus on these challenges : 2.4 and 1.4.

Photo: CIAT (CC BY-SA 2.0), climbing beans.

[ THE WAY FORWARD ]

47

THE WAY FORWARD

The previous section of this document delineates the sec-tor’s value chain and its operators, and it reviews its overall positioning within the global industry context in order to con-firm its current performance. The following sections discuss the strategic development and positioning of the sector to increase its performance. In doing so, the sections discuss two questions – ‘where do we want to go?’ and ‘how do we get there?’

Through the definition of a sector vision and specific stra-tegic objectives, the roadmap sets the goals to be achieved in the next five years. The description of the future value chain will highlight focus areas for structural improvements of sector operations, define specific market opportunities and identify target areas for investment. These steps are then further detailed in a structured and prioritized manner within the PoA.

The recent growth of the pulses sector in the United Republic of Tanzania responded to growing demand for pulses in the last 20 years, mainly from South-East Asia, and driven particularly by the emergence of Indian networks

for exporting and distributing pulses to India. This trend is expected to continue in the future because of the growing pressures of demographics in India, which will increase con-sumption of pulses.

In the next five years, the sector’s strategic orientations have been defined along two axes of sector development. Primarily, there is a need to position the Tanzanian puls-es sector as a reliable and consistent supplier of pulses. Secondly, there is a need to ensure the sector has the skills, capacities and structure to proactively plan sector produc-tion and development. In order to realize these goals, struc-tural deficiencies identified as competitive constraints will be addressed and opportunities will be leveraged. The sector ambitions are captured in the following sector vision devel-oped by sector stakeholders :

‘Tanzania’s pulses production systems satisfy consistently global demand”

THE STRATEGIC OBJECTIVES

The strategic objectives define the main thrusts that will guide the roadmap implementation in order to achieve the vision laid out by sector operators. To achieve the de-velopment of the pulses sector in the United Republic of

Tanzania, three strategic objectives have been identified as being the cornerstones to enhance its competitiveness and organization.

Figure 19 : Strategic objectives of the roadmap

Develop QDS & high- yielding pulse seeds

Improve access to finance along the value

chain

Develop an efficient storage, warehousing and

logistics system as a trading platforms

Encourage the development of medium-

and large-scale agribusiness services

Develop an efficient input distribution network for higher-yielding varieties

Promote skills building along the value chain to professionalize the sector

Provide targeted training on Good Agricultural

Practices

Deliver improved specific training on reduction of pre- and post-harvest

losses

Enhance governance, management & marketing of farmer associations &

co-ops

Scale up production and trade by strengthening PPPs for seed development, access to finance,

technology transfer and farmer support services

Enhance the effectiveness of the sector for forward planning and market development.

Strengthen market development capacities

of the sector

Capacity-building of key institutions in the “pulses

network” to provide support services

Promote pulses as a viable and growing agricultural sector

Develop a network of institutions to improve

sector coordination

Improve the quality of products

Advocate for a sustainable pulses sector

48


Strategic objective 1 : Enhance the effectiveness of the sector for forward planning and market development .

An analysis of the constraints faced by the sector in light of the institutional and policy framework governing pulses in the United Republic of Tanzania highlighted some of the critical bottlenecks for the sector, including the need to strengthen policy support institutions, promote pulses as a viable agricultural crop, improve quality standards and im-prove inter-institutional coordination. This strategic objective has six operational objectives, which are :

� Develop a network of institutions to improve sector co-ordination

� Promote pulses as a viable and growing agricultural sec-tor

� Build the capacity of key institutions of the ‘pulses net-work’ to provide targeted support services

� Strengthen the market development capacities of the sector

� Improve the quality of products � Advocate for a sustainable pulses sector.

The strategic objective will cut across all stages of the value chain, although it will be particularly focused on improve-ments in supply consistency and quality, as well as market-ing of pulses in international markets.

Strategic objective 2 : Scale up production and trade by strengthening PPPs for seed development, access to finance, technology transfer and farmer support services .

Production level constraints permeate throughout the val-ue chain and ultimately constrain the United Republic of Tanzania’s export potential and commercialization of pulses. This strategic objective tackles weaknesses in supply condi-tions generally and production level inputs in particular. The strategic objective is composed of six operational objec-tives, namely :

� Develop QDS and high-yielding pulse seeds � Develop an efficient input distribution network for higher-

yielding varieties � Encourage the development of medium- and large-

scale agribusiness services across the United Republic of Tanzania

� Develop an efficient storage, warehousing and logistics system as a trading platform for the pulses sector

� Improve access to finance along the value chain.

This strategic objective will improve the availability of in-puts into the production stages, such as improving agri-business support services to farmers, enhancing access to farm inputs and improved seed varieties, securing

access to finance for farmers, and developing an efficient storage, warehousing and logistics system of postharvest production.

Strategic objective 3 : Promote skills building along the value chain to professionalize the sector .

While the policy and institutional framework needs strength-ening and to be better targeted to the needs of the pulses sector ( strategic objective 1 ), and while production inputs, technology and postharvest storage and distribution will raise efficiency along the upstream activities of the pulses sector ( strategic objective 2 ), the skills of stakeholders need to be improved throughout the different stages of the value chain in order to ensure that productivity rises, losses fall and professionalism improves. This strategic objective has three operational objectives, which are :

� Provide targeted training on GAP � Deliver improved specific training on reduction of pre-

and post-harvest losses � Enhance good governance, management and market-

ing practices of farmers’ associations and cooperatives.

The activities falling under this strategic objective will im-prove the yields, productivity levels, value added and product quality, as a means to adopt more rigorous and internationally recognized business practices and quality assurance standards such as GAP, and professionalize as-sociations and cooperatives.

Photo: PNCG (CC BY-NC 2.0), Pigeon pea, Lazaro-maturing pods.

[ THE WAY FORWARD ]

49

Figure 20 : Future Value Chain

Inpu

ts d

istr

ibut

ion

netw

ork

Inp

ut

Seed

shi

gh yi

eldi

ng p

ulse

s se

eds

Ferti

lizer

s

Farm

equ

ipm

ent

Labo

ur

Land

Wat

er

Inno

vatio

n an

d R&

D

Lege

nd

Nat

iona

l com

pone

ntIn

tern

atio

nal c

ompo

nent

Pest

icid

e an

d In

sect

icid

e

Prod

uctio

nC

olle

ctio

nTr

adin

gW

hole

sale

/R

etai

ling

Smal

lhol

der

farm

ers

95%

(≤ 4

acr

es)

No

mec

anis

atio

n

4%

Med

ium

sca

le

farm

ers

7-20

0 Ac

(ren

t equ

ipm

ent)

Villa

ge T

rade

rs

Age

nts/

M

iddl

e m

an

(Col

lect

ion

Cen

tres

)

Expo

rters

(sor

ting,

spl

iting

, et

c.)

Ken

yaSu

gar b

eans

US

and

Can

ada

Proc

esse

d da

al, g

reen

mun

g, c

hick

pea

s

Mal

aysi

a, S

inga

pore

, In

done

sia,

Sri

Lan

ka, C

hina

- Gre

en g

ram

, - C

hick

pea

s (y

ello

w g

ram

),- P

roce

ssed

daa

l

UK

and

Net

herl

and

- Pig

eon

peas

, - C

hick

pea

s (y

ello

w g

ram

), - K

idne

y be

ans,

- Gre

en g

ram

(gre

n m

ung)

Rw

anda

Mixe

d be

ans

Indi

a - P

igeo

n pe

as,

- Chi

ck p

eas

(yel

low

gra

m),

- Kid

ney

bean

s,- G

reen

gra

m (g

reen

mun

g)

Uni

ted

Ara

b Em

irate

, Qat

ar- C

hick

pea

s (y

ello

w g

ram

), - G

reen

gra

m (g

reen

mun

g),

- Pig

eon

peas

Nat

iona

l mar

ket

Col

lect

ion

Cen

tre

Urb

an tr

ader

s

Puls

es P

roce

ssin

g

Acce

ss to

fina

nce

Farm

er su

ppor

t se

rvice

s

1% L

arge

sca

le

farm

ers

Ove

r 200

ac

(ow

n eq

uipm

ent)

Hol

ding

½-1

ton

Con

sum

ptio

n

Farm storage

Expo

rts

Esta

blis

h a

sim

ple

proc

edur

e to

ens

ure

Met

hyl b

rom

ine

fum

igat

ion

is

com

plet

ed e

ffici

ently

at

por

t

Enfo

rce

incr

ease

d qu

ality

con

trol

s on

gr

een

mun

g by

pla

nt

prot

ectio

n se

rvic

es

Org

anis

e bu

yer-

selle

r mee

ting

with

im

port

ers

Org

anis

e bu

yer-s

elle

r m

eetin

g w

ith

impo

rter

s/di

stri

buto

rs

Org

anis

e bu

yer-s

elle

r m

eetin

g w

ith

impo

rter

s/di

stri

buto

rs

Prep

are

an

inve

stem

ent p

rofil

e fo

r da

ll pr

oces

sing

Prep

are

an

inve

stem

ent p

rofil

e fo

r dal

l pro

cess

ing

Link

with

the

com

mod

ity e

xcha

nge

Larg

e sc

ale A

grib

usin

ess s

ervic

es

Effic

ient

stor

age,

w

aren

hous

ing

and

logi

stics

sy

stem

s on

regio

nal le

vel

Enha

nce

good

gove

rnan

ce, m

anag

emen

t and

mar

ketin

g pr

actic

es o

f far

mer

asso

ciatio

n an

d co

oper

ative

s

Coo

p St

orag

e

Farm storage

Min

. of I

ndus

try,

Tra

de, &

Mar

ketin

g

Tanz

ania

Tra

de D

evel

opm

ent A

utho

rity

(TAN

TRAD

E)N

atio

nal D

evel

opm

ent C

orpo

ratio

n (N

DC)

Tanz

ania

n Bu

reau

of S

tand

ards

(TBS

) C

entre

for A

gr. M

echa

nisa

tion

and

Rur

al T

echn

. (C

AMAR

TEC

)

Expo

rt P

roce

ssin

g Zo

ne A

utho

rity

(EP

ZA)

Smal

l Ind

ustri

es D

evel

opm

ent O

rgan

isat

ion

(SID

O)

Min

istry

of A

gric

ultu

re, F

ood

Sec

urity

and

Coo

pera

tives

Dep

artm

ent o

f Res

earc

h an

d D

evel

opm

ent (

DR

D)

Dis

trict

Agr

icul

ture

and

Liv

esto

ck D

evel

opm

ent O

ffice

(DAL

DO)

Agric

ultu

ral S

eed

Agen

cy (A

SA)

Tanz

ania

Fer

tiliz

er R

egul

ator

y Au

thor

ity (T

FRA)

Tanz

ania

Offi

cial S

eed

Certi

ficat

ion

Inst

itute

Ag

ricul

tura

l Res

earc

h In

stitu

te (A

RI)

Tanz

ania

Fer

tiliz

er C

ompa

ny (T

FC)

East

Afri

ca G

rain

Cou

ncil

(EA

GC

)

Cer

eal a

nd o

ther

cro

ps b

oard

Ta

nzan

ia A

tom

ic E

nerg

y C

omm

issio

n (T

AEC)

Tanz

ania

Cha

mbe

r of C

omm

erce

, Ind

ustry

and

Agr

icultu

re (T

CCI

)

Tanz

ania

n Ex

porte

rs A

ssoc

iatio

n (T

ANEX

A)

Tanz

ania

See

d Tr

adin

g A

ssoc

iatio

n (T

ASTA

) C

usto

ms

Tanz

ania

Inve

stm

ent C

entre

(TIC

) M

tand

ao w

a Vi

kund

i vya

Wak

Tanz

ania

Foo

d an

d D

rug

Agen

cy (T

FDA)

Agric

ultu

ral C

ounc

il of

Tan

zani

a (A

CT)

Pr

ivat

e Se

ctor

Fou

ndat

ion

(PS

F)

Tanz

ania

Fed

erat

ion

of C

oope

rativ

es (T

FC)

Tanz

ania

Agr

icultu

ral D

evel

opm

ent B

ank

(TAD

B)

Agrib

usin

ess

Inno

vatio

n C

ente

r (AI

C)Su

stai

nabl

e Ag

ricul

ture

Tan

zani

a (S

AT)

Ec

onom

ic a

nd S

ocia

l Res

earc

h Fo

unda

tion

(ES

RF)

AMCO

S

SACC

OS

Puls

es n

etw

ork

Forw

ard

cont

ract

pla

nnin

gD

evel

op p

roac

tive

sellin

g an

d pl

anni

ng fo

r sta

ble

mar

ket d

evel

opm

ent

Enha

nced

com

pone

nt o

f Val

ue C

hain

Inve

stm

ent e

nabl

ed co

mpo

nent

s of f

utur

e va

lue

chain

50


DEVELOPING THE FUTURE VALUE CHAIN OF THE SECTOR

Unlocking the potential of the Tanzanian pulses sector will require transformations throughout the value chain. These adjustments, as reflected in figure 20, will be the result of the targeted efforts detailed in the PoA of the roadmap that address the constraints identified in the strategic considera-tions section. The future value chain will be characterized by improved input distribution, improved overall coordination and governance, enhanced forward planning and trading capacities, and increased market development and invest-ment attraction.

The future value chain of the sector is driven by its mar-ket development objectives that effectively drive the value chain enhancements, and the investment focus areas.

LEVERAGING MARKET DEVELOPMENT AND INVESTMENT OBJECTIVESThere is a great opportunity for the United Republic of Tanzania to take advantage of the evolving global market trends for pulses. With an increase in global demand for pulses but with limited global growth in production, the United Republic of Tanzania is in a position to satisfy this growing demand. This section describes the market de-velopment and investment opportunities that the United Republic of Tanzania can use to strengthen its position in regional and global markets.

Table 7 : Market development and investment opportunities for Tanzanian pulses

Target market ProductDistribution channel

2014 Tanzanian exports to market ( US $ )

Average annual export growth in value ( % ) ( 2010–2014 )

Gross domestic product growth 2015-2020 forecast ( yearly % change )

India and Pakistan • Pigeon peas• Chickpeas

( yellow gram )• Kidney beans• Green gram

( green mung )• Processed dhal

• Wholesalers• Processors

• 70 000 000 • India +17 %• Pakistan -29 %

• India 7.5 %• Pakistan 5 %

China • Dry peas• Green gram ( green

mung )

• Wholesalers• Processors

• 0 • China 51 % • China 6.3 %

Europe ( including the United Kingdom )

• Dry beans, pro-cessed dahl, pigeon peas, chickpeas ( yellow gram ) kidney beans & green gram ( green mung )

• Processed dhal

• Wholesalers• Processors• Distributors

• 1 103 000 • United Kingdom 227 %

• Other n.a.

• UK 2.2 %

North Africa ( Algeria, Morocco, Egypt ) and Middle East and North Africa ( MENA ) region ( UAE, Qatar, Israel )

• Pigeon peas• Chickpeas

( yellow gram )• Green gram

( green mung )• Processed dhal

• Wholesalers• Distributors

• 9 822 000 • UAE 41 %• Other n.a.

• UAE 3.5 %

United States and Canada

• Processed dhal • Wholesalers• Distributors

• 953 000 • United States 81 %• Canada 85 %

• USA 2.5 %• Canada 2 %

Regional markets

• Mixed beans• Sugar beans• Processed dhal

• Wholesalers• Distributors • 1 824 000

• Kenya 32 %• Uganda 186 %

• Kenya 7 %• Uganda 6 %

Source : Authors ; ITC ; IMF

[ THE WAY FORWARD ]

51

India and Pakistan – raw and processed pulsesPigeon peas, chickpeas ( yellow gram ), kidney beans,

green gram ( green mung ), processed dhal

The largest area in the world consuming African pulses is the South Asian market. In India, African origin pulses were first introduced by State trading corporations in India in the 1970s. Subsequently, private players entered the market and started exporting to the whole of South Asia.

The Government of India allows imports of pulses from time to time to neutralize prices. The major African origin pulses category imported in South Asia is Tanzanian pigeon peas, which are imported to the level of 27 % of total imports of pigeon peas into India.31 India also imports some pigeon peas from Malawi and Kenya, and has recently begun to import from Sudan. India also imports mung beans from the United Republic of Tanzania, Kenya and Mozambique. Finally, chickpeas and kidney beans are imported from Ethiopia. India will remain a major importer of pulses in the coming years, especially chickpeas, mung beans, black mapte and pigeon peas, imports of which have skyrocketed in the past decade.32

In April 2014 the government of India extended the ban on exports of pulses until further orders, but allowed outbound shipments of kabuli chana, organic pulses and lentils with some riders from

the Directorate General of Foreign Trade:

Prohibition on export of pulses has been extended till further orders. But, there are two exceptions

to this. One is export of Kabuli Chana. Second is export of organic pulses and lentils, but with

a ceiling of 10 million tons per annum and subject to certain conditions.

Export of pulses was initially prohibited for a period of six months in 2006 which was extended from

time to time.

The import dependency of India for pulses is expected to rise significantly in the near future. It has been estimated that India’s population will reach 1.68 billion by 2030 from the present level of 1.21 billion.33 Accordingly, the projected re-quirement for pulses in 2030 is 32 million tons, which would require India to increase its production by 80 %34 in order to

31.– Department of Commerce, Government of India.32.– National Council of Applied Economic Research, India ( 2014 ). India’s Pulses Scenario. New Delhi.33.– Industry estimates.34.– Ibid.

satisfy the additional demand. This is unlikely and as a result import dependency will remain high, offering a long-term opportunity for international suppliers.

Pakistan imports various types of pulses from Australia, Canada, Ethiopia and a few other countries. For chickpeas, the major exporter from Africa is Ethiopia. Although domes-tic supply increased in 2012 / 13 and reduced imports, the trend has reversed and imports soared again in 2013 / 14. The DAWN newspaper reports, in its pulses outlook dated February 2015, that while domestic output fluctuated from year to year, overall pulses’ imports fell from 672,000 tons in FY12 to 473,000 tons in FY13, owing to large domestic production of the major pulses crops black gram and chick-peas. But in FY14, imports rose again to 506,000 tons be-cause of a slump in production of all kinds of pulses.

The United Republic of Tanzania can expand exports to India since it is recognized in India as a supplier of pigeon peas and chickpeas, and Indian processors are well aware of Arusha and Babati origin pigeon peas. In the case of chickpeas, Indian importers prefer Tanzanian chickpeas due to their colour specificity.

In the medium term, the export of processed pulses in the form of dhal and flour ( from chickpeas ) to India offers promising opportunities. For this reason, pulses processing will be a key component of the future value chain and its market development capacities to South Asia and beyond.

The United Republic of Tanzania is the largest source of pigeon peas to South-East Asia and the third-largest source of all pulse varieties, behind Canada and Myanmar. Medium-sized pulse processors and distributors ( 20–50 tons per day ) in India and Pakistan, who had been importing pulses from East Africa, have begun exploring the possibility of setting up trading offices in the region.

The United Republic of Tanzania has attracted the most attention thanks to its high pulse volumes and established trading networks with India. These investors are under com-petitive pressure to cut out middlemen and directly source their inputs. They present very immediate opportunities for investment generation in the pulses sector and should be targeted for investment promotion. While some will come to the United Republic of Tanzania with little intervention from the Government, sector-strengthening initiatives would in-crease the United Republic of Tanzania’s competitiveness with alternatives like Myanmar and Kenya, assuring higher volumes of low value added FDI, attracting more FDI to criti-cal agribusiness services, and laying the groundwork for higher value added food processing in the longer term.

There is an industry trend from South Asian pulse pro-cessors seeking a competitive advantage by eliminating middlemen in their sourcing of raw pulses. By increasing processing, further cost advantage can be obtained by transporting only dhal as opposed to raw pulses, which in-cludes the parts of the pulses that will eventually become a waste by-product of processing. Therefore, most of the Indian and Pakistani processors currently venturing into the United Republic of Tanzania can be expected to pursue

52


processing at a later stage, once supply has been estab-lished and if they find the investment climate conducive.

The attraction of investment from South-East Asia for the procurement and processing of pulses will lead the fu-ture value chain to have more traders, leading to marginally better prices for producers, better understanding of quality grades, and competitive pressure on other traders to secure supply through contracts. The broadening of the pulses pro-cessing base in the United Republic of Tanzania is an im-portant step towards making the processing of higher value added food products feasible in the country.

In the future value chain, to further penetrate the Indian market with the export of raw pulses, it is essential to : im-prove seed quality and availability ; strengthen the input dis-tribution network, including finance ; develop agribusiness services and enhance storage, warehouses and logistics ; and strengthen technical capacities of TIC and EPZA in in-vestor targeting for the pulses sector.

China : raw and processed pulsesTypes of pulses – dry peas, green gram ( green mung )

With a population of 1.35 billion and growing, China con-tinues to play a unique and essential role in just about any global market imaginable, and pulses are no exception. It is the second major player in the Asian market. China has been a net exporter of pulses for years. However, with its growing middle class, increasing production costs and ex-panding taste for pulses, it is expected that demand will out-strip supply in the future. China is now importing some types of pulses, such as dry peas, as a result of shifting demands and a rapidly changing society. China was a major exporter of black beans in the world until the rising costs of produc-tion in Chinese agriculture posed a challenge. Also, the black bean producing area in southwest China was faced with some challenges in 2013 as a result of massive floods which significantly reduced production. Since then China has lost some market share and this loss looks irreversible.

The major type of pulse imported by China is dry peas. In recent years, China has commissioned upgrading of new factories for the production of starch and vermicelli. This has resulted in huge imports of dry peas by China. The carry-over stock in 2014 kept the imports low, to a level of 780,000 tons, but in the long term this is expected to rise. Also, Chinese dietary habits are changing and dry peas are being increasingly consumed for snacks and other food. This will also keep on increasing and, as a result, China is expected to emerge as a major importer. In addition to dry peas, imports of green gram are also increasing in China.

The United Republic of Tanzania has an opportunity to export to China, as it is an expanding market. It has already been exporting dry peas to China, although in very small quantities. In addition, the market for green gram ( green mung beans ) is also expanding. This is not a very well-es-tablished market for Tanzanian exporters. They often face challenges in dealing with administrative procedures on the

Chinese side, as well as face difficulties with respect to dis-tribution. A proper understanding of the procedural steps will allow exporters to export greater quantities.

Similarly to India, China, is increasingly demanding pulses and becoming a source of investment, as domestic Chinese producers face rising production costs and seek to offshore pulse purchasing, production, and processing. The expansion of the market has created opportunities for collaboration with China’s importers and processors. To expand this market, Tanzanian producers will need to un-derstand the details of the varieties and types of pulses de-manded and the procedural aspects of the trade.

Europe ( including the United Kingdom )Beans, processed dhal, pigeon peas, chickpeas ( yellow

gram ) kidney beans and green gram ( green mung )

Until 2004, Europe was a major importer of pulses, when it accounted for around 45 % of the world’s imports of pulses. Since then Europe’s share has declined and now stands at about 22 % of world imports. Spain, France and the United Kingdom account for the majority of the consumption of pulses in Europe. The ways in which pulses are consumed are very different across Europe, due to different regional food habits and traditions, and to differences in the supplies of grain legumes. Canned products dominate pulse sales as opposed to pulses sold in packets. Dry beans are the most consumed, but the preference between varieties varies ac-cording to country.

Despite the reduction in its share, the recent change in preferences for vegan and gluten-free diets can help restore growth in the demand for pulses in Europe. A major chal-lenge for exports to Europe concerns the quality standards that must be reached, both at a technical regulation level and private standards set by supermarkets and distributors.

While the United Republic of Tanzania has been ex-porting pulses like chickpeas and dry peas to Italy, the Netherlands and the United Kingdom, among others, quan-tities remain low. The increasing preference for gluten-free diets and the movement from animal protein to vegetable protein in recent years has opened up new opportunities for Tanzanian exports. The European market is gradually increasing demand for processed pulses. Also, the Asian diaspora in the United Kingdom has a high demand for processed dhal, which can be exported from the United Republic of Tanzania. However, challenges exist pertaining to standards compliance and quality requirements, particu-larly for processed dhal ( mainly for pigeon peas ).

[ THE WAY FORWARD ]

53

Box 3 : Growing market opportunities for exports of processed dhal

Exports of processed pulses to the South Asian diaspora in the Gulf States, North America, the EU, Malaysia, South Africa and Mauritius

Although considerably smaller markets than those of South Asia, these markets still comprise tens of millions of consumers, many offer higher margins, and leading brands may be less than a decade old, arising only after the 2006 ban on Indian pulse exports. Most processors have set up offshore processing facilities in Dubai and Singapore. However, this involves higher costs and exporters are looking for better destinations. The United Republic of Tanzania thus has an opportunity to offer itself as a processing destination.

The proximity to the market in the Gulf and the African subcontinent, and the cheaper availability of raw materials, labour and electricity make it a lucrative option. The markets of the United States and Europe have a premium in prices and are also more attractive due to the duty preferences offered to exports from least developed countries like the United Republic of Tanzania.

In addition to targeting investors from India and Pakistan, members of the diaspora in target markets are likely sources of equity financ-ing and possibly business networks, though probably not technical expertise.

North Africa and the Middle EastTypes of pulses – pigeon peas, chickpeas ( yellow gram )

green gram ( green mung ) ( including processed dhal )

The MENA markets are a high potential market for pulses. Algeria is one of the largest importers of lentils. Pulses such as chickpeas, lentils, peas and beans feature prominently in the cuisine of MENA countries. In addition to traditional uses for pulses like soups, tajines, curries and hummus, pulses can also be added to processed meats, frozen pre-pared meals and salads for a nutritional boost. They can also be used to enhance baked goods, snacks, beverages and dairy products. This region has high population growth rates, and many countries are seeing extraordinary growth in food services and retail sales. Its massive potential as a trading region is just beginning to be realized. Consumers in the MENA region are increasingly using supermarkets for food purchases, which has in turn led to an increase in demand for processed pulses such as canned pulses and pulse flours.

There is also a boom in the hospitality industry, and as a result new cuisines are being introduced. Countries like Morocco, Egypt, Israel and the city of Dubai ( UAE ) are showing extraordinary growth in the hotel industry. This is pushing the demand for pulses, as well as other food crops, to new levels. Algeria is already one of the largest consum-ers of lentils in the world. Hence, the demand for pulses is on the rise among both traditional consumers and new markets in this region. Further, with the large Asian diaspora population in the Middle East, the demand for processed dhal is also high.

The United Republic of Tanzania has been exporting pulses such as dry peas and chickpeas to countries like Oman, Qatar, the UAE and Yemen. Nevertheless, export levels remain small except for the case of the UAE. The ma-jority of exports to the UAE are destined for re-export and a certain level of processing. With the ban on exports of

processed pulses from India, exporters have moved their processing bases to the UAE and as a result it is becoming a processing hub. If the United Republic of Tanzania is to explore this market, there is a need to connect to buyers from the region.

Based on the objectives of the value chain roadmap and the proposals made for market diversification, a future value chain map is presented in figure 20 that tackles some of the most critical constraints in the different stages of production, which are restricting value addition and growth in the sector.

United States and CanadaProcessed dhal

The United States and Canada have large South Asian di-aspora populations. The demand for processed dhal is high in these regions. Since exports from India discontinued in 2006, major processors have been exporting from newly established plants in Dubai. However, with the preferential duty system, easy availability of pulses as a raw material and cheaper electricity and labour, the United Republic of Tanzania can be an exporter to this region.

Regional marketsMixed beans, processed dhal

Two of the five countries with the largest per capita pulse consumption in Africa share a border with the United Republic of Tanzania and are fellow East African Community members ( i.e. Rwanda and Burundi ). Relatively nearby Ethiopia is another top consumer, and Kenya is among only

54


four countries where 20 % or more of dietary protein comes from pulses.35

Pulses, and more specifically common beans, are a major source of protein in southern Africa. They have long been a part of staple diets in this region. One of the major importers of beans is Kenya. Beans are an important part of the diet of both rural and urban dwellers in Kenya. They are a relatively inexpensive alternative source of protein in many households compared with animal or fish products. The consumption of beans has continued to increase steadily at a compound growth rate. Consequently, it has become in-creasingly common for Kenya to import beans as domestic demand overwhelms production. This is a major market for beans. Further, the target consumers in this region would be local populations, although ethnic South Asian communities in Kenya also provide a niche. Adding regional marketing of processed pulses to the sector’s activities would provide the sector with reduced risk through diversification, greater economy of scale, and more options for efficient aggrega-tion and distribution within the region.

Orienting marketing efforts towards this larger region is a natural step for established producers, especially Ethiopia because it falls outside the East African Community and is therefore not subject to restrictions on economic process-ing zone-based production being sold to the ‘domestic’ East African Community market. As domestic and regional markets and infrastructure develop, the pulse processors targeted by TIC, and EPZA for investment may increasingly come from within the region.

FUTURE VALUE CHAIN AND INVESTMENT OBJECTIVESThe development of pulse export capacities will require in-vestment in key strategic areas of the value chain. As the global population grows, and concern over food security with it, the fact that 60 % of the world’s uncultivated arable land is in Africa is earning the continent considerable at-tention as a source of food commodities and agribusiness investment opportunities. The African population itself is projected to double between 2010 and 2050, and many of them will represent a new middle class, as six of the world’s 10 fastest-growing economies are in Africa. As a conse-quence of these trends, Africa’s food market is projected to grow from US $ 313 billion in 2010 to US $ 1 trillion in 2030, with a corresponding boom in investment.

A US $ 500 million investment announced by Syngenta across multiple African countries is an example of the sort of large-scale investment which is becoming possible and which the United Republic of Tanzania could be targeting.

35.– The four countries where pulses contribute the most to per capita total protein intake are Burundi ( 55 % ), Rwanda ( 38 % ), and, tied at 20 %, Kenya and Uganda. ( Akibode, Sitou and Maredia, Mywish ( 2011 ) Global and Regional Trends in Production, Trade and Consumption of Food Legume Crops. E-book. Available from http : / / impact.cgiar.org / sites / default / files / images / Legumetrendsv2.pdf. )

Syngenta plans to make the investment over 10 years in local production, logistics, distribution channel development, re-cruitment, and training for seed and crop-protection products.

The following segments of the value chain are foreseen as key areas of focus for achieving the future value chain.

1 . Improved seed quality and availability – investment focus area

The improved provision of quality seeds is considered a critical priority for a well-performing pulses value chain. To ensure the availability of seeds for increased production, there will be a need to stimulate PPPs and investment in higher-yielding seed development ; promote research and production of QDS ; develop a number of demonstration plots ; and ensure a more accessible knowledge base for pulse cultivation. Additionally, there is an opportunity to provide a concessional loan scheme for farmers to procure high quality inputs.

In terms of investment, DuPont, Syngenta, and Advanta are already in the United Republic of Tanzania developing seeds for other crops, and Monsanto and KWS are next door in Kenya doing the same. Pulses sector stakeholders, committing their support to the development of seed multi-plication and dissemination infrastructure and working with TIC and EPZA, could make a persuasive case for one or more of these companies to begin developing seed pulses suited to the United Republic of Tanzania.

2 . Improved input distribution network – linked with access to finance

An opportunity to improve production levels of pulses is to ensure that farmers and farmers’ associations have easy access to relevant inputs to maximize production. Increasing local distribution and production of seeds and agrochemicals will go a long way to reducing their cost and increasing their availability. In order to develop this segment of the value chain, there is a need to review, expand and adapt the local collaboration model between agro-dealers and private companies, such as those in Kilimo Markets–Karatu, Zenobia Seed Co.–Manyara, and Krishna Seed Co.–Manyara, and to link this supply model with public / pri-vate extension services. This improved distribution of inputs should be joined with the review of the ASA annual seed distribution system.

In terms of investment, there is an opportunity to build on the sectoral foundations laid in agrochemicals by the investment projects of Liming Research Institute of Chemical Industry, which manufactures agrochemicals, and Sumitomo Chemical, which recently established a sales of-fice that could grow, with time and stakeholder encourage-ment, into a manufacturing facility. This demonstrates that the business case exists to produce and market agrochemi-cals in the United Republic of Tanzania, giving the country’s investment promoters the opportunity to nurture the nascent

[ THE WAY FORWARD ]

55

sector through investor aftercare and put them in a stronger position from which to target competitors and suppliers of existing investors. Through discussions with these investors about the needs of the sector, public policies might also be designed to support its growth with the right workforce skills, infrastructure and regulations.

Farm mechanization and the use of high quality inputs depends on small farmers having better financial security and awareness of the returns on investment promised by their use. For this reason, it will be important to develop col-laborative agreements with SACCOS in pulse production zones, and TADB and other financial partners.

3 . Development of large-scale agribusiness and contract farming – investment focus area

Although the United Republic of Tanzania is already a global leader in pulse production, there remains significant room for expanded production, especially considering the suit-ability of pulses as an intercrop with several of the United Republic of Tanzania’s major food crops ( maize, millet, rice and sorghum ). At the same time, global demand is grow-ing for pulses as a heart-healthy food and may be boosted further by the United Nations designation of 2016 as the International Year of Pulses.

A key success factor for improved performance of the Tanzanian pulses sector is to enable and stimulate the de-velopment of agribusiness services to support smallholder farmers to increase their production area, volumes and qual-ity. This is a priority area for investment attraction in the puls-es value chain. This will need to be achieved by providing agribusiness services with the status of a strategic invest-ment area. The development of partnerships with agribusi-ness services in the pulses sector will be essential to ensure easier access to mobile units, mechanization, hermetic co-coons, silos and threshers. Examples such as Quality Food Products for farm mechanization services will contribute to growing the agricultural sector in sophistication.

In addition to structured agribusiness services to struc-ture the production of pulses, there is a need to formalize and expand production relationships. To that effect, traders and processors with experience in contract farming arrange-ments could have a large effect on total production and, importantly, on the organization of the Tanzanian market. By guaranteeing prices to farmers and committing them to predetermined volumes, such arrangements add visibility on market volumes and prices, which is sorely lacking for pulses in the United Republic of Tanzania today.

4 . Improved governance and business practices of associations and cooperatives

It is foreseen that specific support to sector associations, cooperatives and AMCOS will contribute to professional-izing the production level of the pulses value chain. This will be achieved by providing specific trainings to willing

associations and cooperatives on business management skills. Additional guidance to access the Maximum Liability Certificate to trade within the warehouse receipt system, as well as building ability for collective marketing, are con-sidered key focus areas towards this professionalization. These improvements shall be verified though on an an-nual assessment of associations that adhere to the pulses network.

5 . Development of storage, warehouses and logistics – investment focus area

A key success factor of the future value chain is to ensure adequate storage to handle the increasing production of pulses. These storage units of different sizes, most probably connected to structured trading platforms, will act as reserve stocks for supplying large orders or as collateral with the commodity exchange. The development of these storage units will be achieved by proposing the refurbishment of lo-cal and regional warehouses through the establishment of rehabilitate, operate and transfer ; or rehabilitate, own and operate PPPs.

This is a priority area of focus for investment since there is a need to import expertise in collateral management. Collateral management could allow small farmers access to much-sought financing by borrowing against their ware-house receipts, and it would provide them with greater price security by allowing them to store pulses and sell them at off-peak times when prices are higher. Collateral manage-ment would also contribute to the upgrading of quantity and quality in the Tanzanian pulses sector. Collateral manage-ment services by foreign investors are recently established in the United Republic of Tanzania ( e.g. SGS and ACE for farm management ).

More efficient aggregation and distribution will be achieved through a stronger warehouse receipt system ( that lowers the minimum storage capacity from 5,000 tons to 200 tons ) for improved quantity, quality and price transparency.

6 . An effective pulses network to plan the sector development

The success of an efficient future value chain will depend on its capacity to plan and coordinate sector development in line with market trends and requirements. This network will be achieved quickly by enabling the formalization of roles and responsibilities and by establishing a rotating coordi-nation unit. The primary objective of the network will be to develop partnerships with other key associations such as the Indian Pulses and Grain Association or Saskatchewan Pulse Growers. The network is also foreseen to act as an easy entry point for traders and investors interested in the pulses sector. As sector stakeholders organize to deliver better guidance, technical resources and financing to do-mestic entrepreneurs, it will be easier to pursue large-scale pulse farming and attract FDI.

56


Box 4 : Investment in agribusiness inputs and services

Perhaps the most attractive investments in the pulses sector are those that go beyond pulses specifically and have much larger markets in agribusiness generally, such as seeds, farm machinery and agro-chemicals. Table 9 presents the value chain segments where FDI is both needed and viable, along with leading sources of such FDI and

competing locations in the region where investors are active. Where a company is already present in the United Republic of Tanzania, it may not yet be active in the product lines of most benefit to the pulses sector ( e.g. seed pulses, pulse-specific herbicides, pulse cultivation machinery, pulse processing technology ).

Table 8 : Value chain segments needing FDI and likely sources

Value chain segments where FDI is needed and viable

Leading companies with regional affiliates

Source country Eastern and Southern African countries with an existing affiliate

Seeds, fertilizers, and pesticides – sales, distribution, manufacturing, and research and development

BASF Germany South AfricaBayer CropScience Germany Mozambique, South Africa, Sudan, Zambia, ZimbabweDow AgroSciences United States South AfricaDuPont (Pioneer) United States Ethiopia, Kenya, South Africa, United Republic of Tanzania, Zambia, ZimbabweKWS Saat (seeds) Germany Kenya, South Africa, SudanMonsanto United States Kenya, Malawi, South Africa, ZimbabweSyngenta Switzerland Ethiopia, Kenya, Mozambique, South Africa, Sudan, United Republic of Tanzania,

Zambia, ZimbabweFarm machinery and equipment – sales, distribution, manufacturing, operation, maintenance and repair

AGCO United States NoneCLAAS Germany NoneCNH Netherlands South AfricaJohn Deere United States South AfricaKubota Japan Kenya, Madagascar, Mozambique, South Africa, United Republic of Tanzania,

UgandaSAME Deutz-Fahr Italy None

Vertically integrated trading, including warehousing, transportation and agri-cultural consulting

Bunge United States Kenya, South AfricaCargill United States Kenya, Mozambique, South Africa, Zambia, ZimbabweLouis Dreyfus Commodities Netherlands Kenya, South Africa

Quality testing, certification and, where indicated by an asterisk, col-lateral management services

ACE UAE Ethiopia, Kenya, South Africa, Sudan, United Republic of Tanzania, Zambia, Zimbabwe

Cotecna* Switzerland South AfricaIntertek United Kingdom Djibouti, Kenya, Mozambique, South Africa, United Republic of Tanzania, UgandaNSF United States South AfricaSCS United States None (only Ghana in Africa)SGS* Switzerland Burundi, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mozambique,

South Africa, United Republic of Tanzania, Uganda, Zambia, Zimbabwe

Table 9 presents the group of companies which collectively control large majorities of the global markets in their given fields. These are not the only potential investors, and smaller regional companies may be better poised to move quickly into the United Republic of Tanzania, given their proximity and knowledge of the country. However, world-leading companies wanting to retain that leadership are likely to consider expansion into Africa more and more as the continent is given

increasing importance in global food strategies. Conversely, realizing full potential for agribusiness is more likely if the world’s leading players are involved in the scaling up of its production. Furthermore, most of the companies in table 9 already have presences in the region. Future investment projects in the United Republic of Tanzania might originate with headquarters or with these regional affiliates.

[ THE WAY FORWARD ]

57

MOVING TO ACTION

The development of the future value chain for the pulses sector is a five-year project defined through a consultative process between public and private sector stakeholders in the United Republic of Tanzania. Achieving the future value chain of the pulses sector in the United Republic of Tanzania depends heavily on the ability of sector stakeholders to implement the activities defined in the roadmap. For this reason, it is recommended that the following key areas of intervention be implemented with priority in order to facilitate the implementation of the pulses roadmap :

� Establish a network of institutions to guide development efforts to maintain public–private dialogue

� Build collaboration with national and international techni-cal and financial partners to support the implementation of the roadmap

� Strengthen the ability of key national institutions to attract national and international investment to the value chain.

These actions aim to enable the implementation of the roadmap PoA in a coordinated and transparent manner. Pulses being an emerging sector in the United Republic of Tanzania, a large share of value chain development will fall under the responsibility of the private sector as key drivers and beneficiaries. By enabling and supporting private sec-tor operators to develop the sector, the Government of the United Republic of Tanzania will be able to contribute to its overall national development goals. In order to guide the initial work of the public and private sector, a list of key pri-ority activities has been identified in order to kick-start the implementation of pulses Value Chain Roadmap.

Table 9 : The priority actions to kick start implementation

Activities TargetsLead implementer

1.1.2 Define roles and responsibilities of institutions and formalize their relationships in the pulses stakeholders’ network through a protocol ( Memorandums of Understanding ( MoUs ) ). The roles may be revised over time.

MoU is signed among pulses stakeholders

EAGC

1.3.10 Develop and / or strengthen the communications strategy of ARIs to ensure improved dissemination of the results of their research, through newsletters to the pulses network.

Increased knowledge and uptake of higher-yielding varieties

Selian ARI

2.1.3 Revise the Seed Act supporting seed development by research institutes to authorize partnerships with seed breeders on a contractual basis.

A revised Seed Act MAFSC

2.1.1 Stimulate investment ( public or PPP ) in higher-yielding seed development through building up researchers’ knowledge on pulse varieties, irrigation of research fields and multiplication centres.

Enhanced access and availability of improved seeds raised to 25 % by 2018

MAFSC

1.3.1 Facilitate improved dialogue between TIC and the private sector to ensure comprehensive and updated understanding of investment promotion activities for the development of the pulses sector.

Medium- and large-scale investment in the pulses value chain increased by 25 % at the end of the five-year period

TIC

2.1.4 Promote QDS ( system promoting farmers’ multiplication of seeds ) production of pulse seeds within farming areas through the identification of existing structured farmers’ associations.

Increase seed availability at ward levels by 25 %

TOSCI

2.1.5 Develop a number of demonstration plots for newly released seed varieties with communities within the regions of Sari, Ilonga, Ukuriguru, Naliendele and Uyole.

Increase of 30 %–50 % in technology uptake among farmers

MAFSC

1.3.6 Support TanTrade in providing specific institutional support to the pulses sector to access new markets by establishing a pulses desk, which will work in close coordination with the pulses network of members ( i.e. private sector ) to access new markets.

New markets for Tanzanian pulses reached by end of 2017

TanTrade

1.3.8 Facilitate improved dialogue between TBS and the private sector through the pulses network, to ensure compliance with international market standards.

Tanzanian pulses products comply to international market standards

TBS

3.1.1 Review and update a standard national training programme on GAP ( bringing in business skills aspects ) for all providers in the main pulse production regions.

National training programme for GAP on pulses updated

MAFSC

THE PLAN OF ACTION

The PoA contains a detailed list of activities organized by operational objectives and strategic objectives. The PoA serves as an exhaustive framework for the implementation of the roadmap.

Photo: (CC BY-SA 2.0) PNCG (CC BY-NC 2.0), Pigeon pea.

60


Stra

tegi

c ob

ject

ive

1 : E

nhan

ce th

e ef

fect

iven

ess

of th

e se

ctor

for f

orwa

rd p

lann

ing

and

mar

ket d

evel

opm

ent

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=Hi

gh2=

Med

3=Lo

w

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Pote

ntial

par

tner

pr

ogra

mm

es

2016

2017

2018

2019

2020

1.1

Deve

lop

a net-

work

of in

stitu

tions

to

impr

ove s

ecto

r coo

r-di

natio

n.

1.1.

1 Bu

ild a

cent

ralize

d rep

osito

ry of

stak

ehol

der i

nfor

mati

on, a

cces

sible

thro

ugh

an o

nline

plat

form

m

ade a

vaila

ble b

y EAG

C.1

XX

XX

XPu

lses s

takeh

olde

rs’ in

ven-

tory

deve

lope

d, ac

cess

ible

and

diss

emina

ted o

nline

an

nuall

y

EAGC

MIT,

MAF

SC, M

VI-

WAT

A, TC

CIA,

TRA,

Ta

nTrad

e, Lo

cal G

ov-

ernm

ent A

utho

rities

( L

GAs )

1.1.

2 De

fine r

oles

and

respo

nsib

ilitie

s of i

nstit

utio

ns an

d fo

rmali

ze th

eir re

latio

nship

s in

the p

ulse

s sta

keho

lder

s’ ne

twor

k thr

ough

a pr

otoc

ol ( M

emor

andu

ms o

f Und

ersta

nding

( MoU

s ) ).

The r

oles

may

be

revis

ed o

ver t

ime.

1X

MoU

is si

gned

amon

g pu

lses s

takeh

olde

rsEA

GCM

AFSC

, MIT,

COP

B

1.1.

3 Ini

tializ

e and

estab

lish

a sec

tor c

oord

inatio

n un

it res

pons

ible

for p

lannin

g an

d inf

orm

ation

dis-

sem

inatio

n th

roug

h th

e nom

inatio

n of

an E

AGC

offic

er to

serve

as co

ordi

nato

r of t

he n

etwor

k unt

il su

ch ti

me a

s the

activ

ities

of c

oord

inatio

n wi

ll be

susta

inabl

e. Du

ring

the f

irst y

ear p

repare

a su

stain-

abili

ty pl

an th

roug

h co

ntrib

utio

ns fr

om u

sers

of th

e netw

ork

1X

Coor

dina

tion

unit

of p

ulse

s ne

twor

k is o

perat

iona

l and

inf

orm

ation

is sh

ared

EAGC

EAGC

( Sup

porti

ng

Indian

Trad

e and

Inv

estm

ent i

n Af

ri-ca

( SITA

) )1.

1.4

Deve

lop

and

prom

ote p

artn

ersh

ips w

ith in

terna

tiona

l pul

ses a

ssoc

iatio

ns / n

etwor

ks su

ch as

Ind

ia Pu

lses A

nd G

rains

Ass

ociat

ion,

the C

onféd

érati

on In

terna

tiona

le du

Com

merc

e et d

es In

dustr

ies

de Lé

gum

es S

ecs,

Glob

al Pu

lse C

onfed

erati

on, e

tc.

2X

XPu

lses n

etwor

k thr

ough

EA

GC is

reco

gnize

d by

the

end

of 2

017

EAGC

MIT,

MAF

SC, M

VIW

A-TA

, TCC

IA, T

anTra

de,

COPB

, ACT

EAGC

( SITA

)

1.1.

5 St

rengt

hen

the a

bilit

y of T

IC, E

AGC

and

TanT

rade t

o res

pond

effec

tively

to d

irect

inquir

ies fr

om

inves

tors

and

buye

rs th

roug

h a c

entra

lized

appr

oach

, whic

h ca

n us

e the

info

rmati

on g

athere

d in

1.1.

1.2

XX

A sy

stem

to re

spon

d to

pu

lses i

nves

tors

is op

era-

tiona

l by t

he en

d of

201

7

MIT

TIC, E

ACG,

TanT

rade

SITA

1.2

Prom

ote p

ulse

s as

a viab

le an

d gr

owing

ag

ricul

tural

secto

r.

1.2.

1 Or

ganiz

e an

annu

al pu

lses e

vent

( i.e

: Pul

ses W

eek /

busin

ess-

to-b

usine

ss m

eetin

gs, e

tc. ),

to

serve

as a

platf

orm

for b

usine

ss m

atchm

aking

and

infor

mati

on sh

aring

and

prom

otio

n. F

reque

ntly,

and

at a r

otati

ng ve

nue,

hold

stak

ehol

der m

eetin

gs.

1X

XX

XX

Pulse

s Wee

k held

ever

y ye

ar, b

eginn

ing in

201

6EA

GCNa

tiona

l Agr

icultu

ral

Rese

arch

Syste

ms

( NAR

S ), S

okoi

ne U

ni-ve

rsity

of A

gricu

lture

( SUA

), M

IT, M

AFSC

, Ta

nzan

ia Fo

od an

d Nu

tritio

n Ce

ntre,

Tan-

Trade

, COP

B, TI

C, TB

S,

MVI

WAT

A, M

RA, T

PSF

Inter

natio

nal C

rops

Re

searc

h Ins

titut

e fo

r the

Sem

i-Arid

Tro

pics

( ICR

ISAT

), EA

GC m

embe

rs,

mini

stries

1.2.

2 De

velo

p an

annu

al ev

ent h

ighl

ight

ing em

erging

indu

stry a

nd co

nsum

er tr

ends

with

inpu

ts fro

m

the p

rivate

secto

r, inc

ludi

ng fo

reign

inve

stors.

1

XX

XX

XAn

nual

pulse

s eve

nt b

egin-

ning

2016

EAGC

NARS

, SUA

, MIT,

M

AFSC

, Tan

zania

Foo

d an

d Nu

tritio

n Ce

ntre,

Ta

nTrad

e, CO

PB, T

IC,

TBS,

MVI

WAT

A, M

RA,

TPSF

ICRI

SAT,

EAGC

m

embe

rs, m

in-ist

ries

1.2.

3 Lin

k with

exist

ing ra

dio /

TV p

rogr

amm

es an

d ag

ricul

ture

jour

nals

to p

rovid

e an

infor

mati

on se

-rie

s on

best

prac

tices

in p

ulse

s pro

ducti

on.

1X

XX

XX

Wee

kly el

ectro

nic m

edia

prog

ramm

es d

evelo

ped

by 2

018

Increa

sed

acce

ss to

mark

ets

MAF

SC ( f

arm-

er ed

ucati

on )

MIT,

MVI

WAT

A, N

ARS,

Al

lianc

e for

a Gr

een

Revo

lutio

n in

Afric

a ( A

GRA )

, ICR

ISAT

, ITC

, AS

A, E

AGC,

Agr

icul-

tural

Non

-Stat

e Acto

rs Fo

rum

( ANS

AF )

1.2.

4 Pr

oduc

e and

diss

emina

te inf

orm

ation

mate

rials

such

as le

aflets

, bro

chur

es, f

lyers,

jour

nals,

do

cum

entar

ies, e

tc. re

lating

to p

ulse

s, ba

sed

on d

ocum

entat

ion

from

stak

ehol

ders’

wor

k and

pro

file.

Type

of m

ateria

l will

vary

base

d on

targ

et au

dien

ce.

Orga

nize a

n inf

orm

ation

chan

nel (

e-m

ail an

d we

bsite

), an

d co

mm

unica

tion

frequ

ency

( per

iod )

and

mod

e am

ong

all re

levan

t Gov

ernm

ent a

nd p

rivate

secto

r ins

titut

ions

that

are d

irectl

y or i

ndire

ctly i

n-vo

lved

in th

e pul

ses v

alue c

hain,

inclu

ding

dur

ing ex

isting

agric

ultu

re sh

ows.

1X

XX

XX

Enha

nce c

omm

unica

tion

thro

ugh

infor

mati

on so

as

to in

crea

se p

rodu

ctivit

y and

m

arket

infor

mati

on

MAF

SC / E

AGC

MIT,

Inter

natio

nal

Instit

ute o

f Tro

pica

l Ag-

ricul

ture

( IITA

), M

VI-

WAT

A, N

ARS,

AGR

A,

ICRI

SAT,

ITC, A

SA

MAF

SC, M

IT

1.2.

5 Es

tablis

h a m

obile

info

rmati

on se

rvice

s for

the p

ulse

s sec

tor w

hich

prov

ides

regu

lar in

form

ation

on

loca

l wea

ther

forec

asts

and

mark

et pr

ices,

and

guid

ance

on

topi

cs su

ch as

pes

t con

trol,

susta

in-ab

le ag

ricul

ture

and

resou

rce m

anag

emen

t.

1X

Mob

ile in

form

ation

servi

ces

oper

ation

al EA

CGM

ITSI

TA

[ THE PLAN OF ACTION ]

61

Stra

tegi

c ob

ject

ive

1 : E

nhan

ce th

e ef

fect

iven

ess

of th

e se

ctor

for f

orwa

rd p

lann

ing

and

mar

ket d

evel

opm

ent

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=Hi

gh2=

Med

3=Lo

w

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Pote

ntial

par

tner

pr

ogra

mm

es

2016

2017

2018

2019

2020

1.2

Prom

ote p

ulse

s as

a viab

le an

d gr

owing

ag

ricul

tural

secto

r.

1.2.

6 Su

ppor

t key

acto

rs in

the p

ulse

s valu

e cha

in to

par

ticip

ate in

nati

onal

and

zona

l agr

icultu

ral

show

s ( Na

ne N

ane )

as w

ell as

inter

natio

nal t

rade f

airs i

n Da

r es S

alaam

( Sab

aSab

a ) an

d ab

road

.3

XX

XX

XPu

lses p

rodu

cts ex

pand

and

acto

rs ex

perie

nce r

egio

nal

trade

gro

wth

by at

tendi

ng

annu

al ev

ents

EAGC

TASO

, MVI

WAT

A, TI

C,

TanT

rade,

TCCI

A, M

IT,

MAF

SC

EAGC

mem

bers

1.2.

7 Su

ppor

t the

dev

elopm

ent o

f a co

ntrac

t farm

ing m

odel

for p

ulse

s pro

ducti

on an

d tra

ding

in th

e Un

ited

Repu

blic

of Ta

nzan

ia by

wor

king

with

the p

rivate

secto

r.Th

ere w

ill b

e a fr

amew

ork f

or p

rodu

cers

to es

tablis

h fo

rward

cont

racts

in or

der t

o se

cure

a pric

e for

th

eir cr

op p

rior t

o ha

rvest,

whic

h eli

mina

tes b

oth

price

and

cred

it ris

ks. O

nce t

he Ta

nzan

ia M

ercan

tile

Exch

ange

( TM

E ) b

ecom

es fu

nctio

nal,

study

if fr

amew

ork c

an b

e rep

laced

with

the T

ME.

1X

XX

XX

At le

ast 5

0 % o

f pul

ses a

re tra

ded

thro

ugh

forw

ard co

n-tra

cts b

y 201

9

MIT

MAF

SC, E

AGC,

TanT

ra-de

, COP

B, M

VIW

ATA,

TIC

, TCC

IA

MIT,

MAF

SC,

TADB

, EAG

C

1.2.

8 Or

ganiz

e an

annu

al m

embe

rs m

eetin

g th

roug

h th

e ANS

AF p

latfo

rm to

gen

erate

aware

ness

abou

t op

portu

nities

in th

e pul

ses s

ecto

r. 1

XX

XX

XNo

n-go

vern

men

tal o

rgan

i-za

tions

activ

ely p

rom

ote

pulse

s as a

n ad

ditio

nal

econ

omic

crop

ANSA

FEA

GCAN

SAF

1.3

Build

the c

apac

ity

of ke

y ins

titut

ions

of t

he

‘pul

ses n

etwor

k’ to

pro

-vid

e targ

eted

supp

ort

servi

ces.

1.3.

1 Fa

cilita

te im

prov

ed d

ialog

ue b

etwee

n TIC

and

the p

rivate

secto

r to

ensu

re co

mpr

ehen

sive a

nd

upda

ted u

nder

stand

ing o

f inv

estm

ent p

rom

otio

n ac

tiviti

es fo

r the

dev

elopm

ent o

f the

pul

ses s

ecto

r.1

XM

edium

- and

larg

e-sc

ale

inves

tmen

t in

the p

ulse

s va

lue c

hain

increa

sed

by

25 %

at th

e end

of t

he fi

ve-

year

perio

d

TICM

IT, M

AFSC

, EAG

C,

ASA,

Nati

onal

Eco-

nom

ic Em

powe

rmen

t Co

uncil

, EPZ

A, TP

SF,

SAGC

OT1.

3.2

Supp

ort T

IC to

dev

elop

prom

otio

nal m

ateria

l ( in

colla

borat

ion

with

EPZ

A ) fo

r inv

estm

ent o

p-po

rtunit

ies in

the p

ulse

s sec

tor (

agrib

usine

ss se

rvice

s, co

llater

al m

anag

emen

t, sto

rage,

wareh

ousin

g,

etc. ).

1X

XInv

estm

ent p

rom

otio

nal

mate

rials

deve

lope

d by

ea

rly 2

017

TICEP

ZA, M

IT, M

AFSC

, SA

GCOT

, TW

LBSI

TA &

TIC

1.3.

3 Bu

ild th

e cap

acity

of t

he TI

C PP

P De

partm

ent t

o m

ore a

ctive

ly so

licit

bids

and

nego

tiate

term

s on

infra

struc

ture

conc

essio

ns in

irrig

ation

and

drain

age,

rural

elec

tricit

y, tra

nspo

rtatio

n, an

d lo

gisti

cal

hubs

of i

mpo

rtanc

e to

agrib

usine

ss an

d lig

ht m

anuf

actu

ring.

3X

XTIC

PPP

staff

par

ticip

ate

in th

e inf

rastru

ctural

com

-m

ittee

s

TICIC

, MAF

SC, M

ME,

MoI

1.3.

4 As

sign

one e

xistin

g TIC

staff

mem

ber w

ithin

each

of t

hree

unit

s ( Fo

reign

Unit

of I

nves

tmen

t Pro

-m

otio

n De

partm

ent,

Proj

ect U

nit o

f Inv

estm

ent F

acili

tatio

n De

partm

ent,

and

the A

fterc

are U

nit ) t

o ac

t as

acco

unt m

anag

ers f

or th

e agr

ibus

iness

secto

r, es

pecia

lly o

utsid

e exp

ort p

roce

ssing

zone

s.

3X

XSt

aff fr

om th

e thr

ee u

nits

are as

signe

d as

acco

unt

man

ager

s

TICEA

GC, M

IT, P

MO

TIC

1.3.

5 Tra

in TIC

agrib

usine

ss sp

ecial

ists i

n inv

esto

r targ

eting

and

prov

ide t

echn

ical a

ssist

ance

in th

e ex

ecut

ion

of o

ne in

vesto

r targ

eting

cam

paig

n in

India

and

one i

n th

e UAE

. The

Indi

an ca

mpa

ign

woul

d tar

get m

edium

-size

d pu

lse p

roce

ssor

s ( 20

–50

tons

per

day

) see

king

to se

cure

their

own

supp

ly of

raw

mate

rial i

n Ea

st Af

rica.

The E

mira

ti ca

mpa

ign

woul

d tar

get p

ulse

pro

cess

ors s

et up

in th

e vac

uum

cr

eated

by t

he In

dian

ban

on

pulse

expo

rts, b

ut w

hich

are n

ot co

st-co

mpe

titive

in th

e lon

g ter

m.

2X

XAt

leas

t two

TIC

agrib

usi-

ness

staff

exec

ute i

nves

-to

r targ

eting

in In

dia a

nd

the U

AE

TICM

IT, E

AGC,

PM

OSI

TA

1.3.

6 Su

ppor

t Tan

Trade

in p

rovid

ing sp

ecifi

c ins

titut

iona

l sup

port

to th

e pul

ses s

ecto

r to

acce

ss n

ew

mark

ets b

y esta

blish

ing a

pulse

s des

k, wh

ich w

ill w

ork i

n clo

se co

ordi

natio

n wi

th th

e pul

ses n

etwor

k of

mem

bers

( i.e.

priva

te se

ctor )

to ac

cess

new

mark

ets.

1X

XNe

w m

arkets

for T

anza

nian

pulse

s rea

ched

by e

nd

of 2

017

TanT

rade

EAGC

, MFA

IC, M

IT,

MAF

SC, T

IC, T

CCIA

, AC

T

TanT

rade

1.3.

7 Bu

ild th

e cap

acity

of T

anTra

de st

aff ( t

hrou

gh tr

ain th

e trai

ner p

rogr

amm

es ) t

o pr

ovid

e trai

ning

to

expo

rters

on th

e opp

ortu

nities

offe

red u

nder

pref

erent

ial tr

ade a

gree

men

ts ( In

dia,

EU, U

nited

Stat

es )

and

the m

arket

acce

ss re

quire

men

ts fo

r the

se m

arkets

.

1X

XX

XX

Prefe

rentia

l trad

e agr

eem

ent

aware

ness

train

ing is

con-

ducte

d fo

r pul

ses e

xpor

ters

ever

y yea

r

TanT

rade

EAGC

, MIT,

MAF

SC,

W-K

SSI

TA, T

radeM

ark

East

Afric

a,Un

ited

Natio

ns

Wom

en1.

3.8

Facil

itate

impr

oved

dial

ogue

betw

een

TBS

and

the p

rivate

secto

r thr

ough

the p

ulse

s netw

ork,

to

ensu

re co

mpl

iance

with

inter

natio

nal m

arket

stand

ards.

1X

XX

Tanz

anian

pul

ses p

rodu

cts

com

ply t

o int

erna

tiona

l m

arket

stand

ards

TBS

MIT,

MAF

SC, A

SA,

TFDA

, EAG

C, K

ilim

o M

arkets

, Zen

obia

Seed

Co

., Pl

ant H

ealth

Ser-

vices

, MVI

WAT

A

62


Stra

tegi

c ob

ject

ive

1 : E

nhan

ce th

e ef

fect

iven

ess

of th

e se

ctor

for f

orwa

rd p

lann

ing

and

mar

ket d

evel

opm

ent

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=Hi

gh2=

Med

3=Lo

w

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Pote

ntial

par

tner

pr

ogra

mm

es

2016

2017

2018

2019

2020

1.3

Build

the c

apac

ity

of ke

y ins

titut

ions

of t

he

‘pul

ses n

etwor

k’ to

pro

-vid

e targ

eted

supp

ort

servi

ces.

1.3.

9 Bu

ild th

e cap

acity

of M

VIW

ATA

and

TFC

to p

rovid

e im

prov

ed m

arket

infor

mati

on o

n vo

lum

e, qu

ality

and

supp

ly qu

antit

ies’ c

onsis

tency

requ

irem

ents

thro

ugh

e-m

ails t

o th

eir co

nstit

uent

s, we

bsite

, Na

tiona

l Bur

eau

of S

tatist

ics n

etwor

k, an

d ot

her f

orum

s.

2X

Supp

ly vo

lum

es ar

e ava

il-ab

le at

all ti

mes

thro

ugh

an

onlin

e med

ium an

d m

arket

infor

mati

on sy

stem

s

MVI

WAT

A / T

FCTB

S, TF

DA, N

ARS,

M

IT, M

AFSC

, EAG

C an

d its

mem

bers,

TC

CIA

MVI

WAT

A

1.3.

10 D

evelo

p an

d / or

stren

gthe

n th

e com

mun

icatio

ns st

rateg

y of A

RIs t

o en

sure

impr

oved

diss

emi-

natio

n of

the r

esul

ts of

their

rese

arch,

thro

ugh

news

letter

s to

the p

ulse

s netw

ork.

1X

Increa

sed

know

ledge

and

uptak

e of h

ighe

r-yiel

ding

va

rietie

s

Selia

n AR

INa

liend

ele A

RI, I

long

a AR

I, Uy

ole A

RI, U

kurig

-ur

u AR

I, SU

A, IC

RISA

T, M

AFSC

Inter

natio

nal

Cent

re fo

r Tro

pica

l Ag

ricul

ture

1.3.

11 S

uppo

rt AR

Is to

und

ertak

e a m

appi

ng ex

ercise

for p

ulse

s res

earc

h ins

titut

ions

, bas

ed o

n th

e 17

agri-

ecol

ogica

l zon

es o

f the

Unit

ed R

epub

lic o

f Tan

zania

( so

as to

gen

erate

adeq

uate

infor

mati

on

on w

here

pilo

ts ca

n sta

rt ).

1X

Spec

ific m

atchin

g of

NAR

S lin

ked

to sp

ecifi

c leg

umes

MAF

SC ( r

e-se

arch )

Selia

n AR

I–Na

liend

ele

ARI,

Ilong

a ARI

, Uyo

le AR

I, Uk

urig

uru

ARI,

SUA,

ICRI

SAT,

MAF

SC

ICRI

SAT,

Inter-

natio

nal C

entre

fo

r Tro

pica

l Agr

i-cu

lture

1.3.

12 S

treng

then

the c

apac

ity o

f ARI

s to

bree

d an

d tes

t new

crop

varie

ties,

inclu

ding

resis

tance

to

dise

ase a

nd p

ests.

This

will

be ca

rried

out

usin

g a c

ollab

orati

ve w

orkp

lan w

ith th

e Ind

ian In

stitu

te of

Pu

lses R

esea

rch.

Und

er th

e col

labor

ative

agree

men

t the

know

ledge

on

impr

oved

varie

ties a

nd d

iseas

e an

d pe

st co

ntro

ls wi

ll be

share

d.

1X

XX

XCo

llabo

rative

agree

men

ts be

twee

n th

ree A

RIs a

nd

Indian

Insti

tute

of P

ulse

s Re

searc

h is

signe

d by

the

begi

nning

of 2

017

Ilong

a ARI

Nalie

ndele

ARI

, Seli

an

ARI,

Uyol

e ARI

, Uku

rig-

uru

ARI,

SUA,

ICRI

SAT,

MAF

SC, M

IT, A

SA

ICRI

SAT,

Inter

na-

tiona

l Cen

tre fo

r Tro

pica

l Agr

icul-

ture,

MAF

SC

1.3.

13 P

rom

ote i

mpr

oved

ope

ratio

ns at

TOSC

I to

ensu

re tim

eline

ss o

f the

seed

certi

ficati

on p

roce

ss

thro

ugh

capa

city-

build

ing in

terve

ntio

ns, t

hrou

gh a

review

of p

roce

dures

and

impl

emen

tatio

n of

mor

e eff

icien

t dec

ision

mak

ing sy

stem

s int

erna

lly.

1X

Impr

oved

seed

certi

ficati

on

and

acce

ss st

rengt

hene

d by

201

7

TOSC

INA

RS, L

GAs,

ASA,

Ki

limo

Mark

ets, Z

eno-

bia S

eed

Co.,

ICRI

SAT,

CIAT

AGRA

, Agr

icultu

re M

arkets

Dev

elop-

men

t Tru

st

1.3.

14 Im

prov

e the

mon

itorin

g ca

pacit

y of T

WLB

to en

sure

safet

y and

qua

lity o

f sto

rage a

nd w

are-

hous

ing p

rior t

o sa

le.

1X

Pulse

s qua

lity i

s main

taine

d pr

ior t

o se

lling

TW

LBM

IT, M

AFSC

, PM

O–Re

gion

al Ad

mini

stra-

tion

and

Loca

l Gov

ern-

men

t ( PM

O–RA

LG ),

EAGC

, MVI

WAT

A, R

u-ral

Urb

an D

evelo

pmen

t Ini

tiativ

es ( R

UDI )

1.3.

15 O

rgan

ize E

PZA’

s hea

dqua

rters-

base

d pr

omot

ion

staff

acco

rding

to se

ctor s

pecia

lizati

ons (

in-

cludi

ng at

leas

t two

staff

mem

bers

actin

g as

acco

unt m

anag

ers f

or th

e agr

ibus

iness

secto

r ) to

take

the

lead

on in

vesto

r afte

rcare

with

in ex

port

proc

essin

g zo

nes a

nd p

rovid

e TIC

with

site-

level

infor

mati

on

and

supp

ort w

ithin

the z

ones

.

2X

EPZA

assig

ns re

spon

sible

staff

by 2

017

EPZA

TIC, M

IT, P

MO,

EAG

CSI

TA

1.3.

16 B

uild

the c

apac

ity o

f TIS

Is an

d pr

ivate

secto

r org

aniza

tions

( suc

h as

MIT,

TFC,

TanT

rade,

COPB

, MVI

WAT

A, p

rivate

secto

r with

spec

ific f

ocus

on

pulse

s ) o

n m

arket

infor

mati

on sy

stem

s, us

ing

diffe

rent s

ystem

s inc

ludi

ng te

xt m

essa

ges,

call

cent

res, e

tc. E

nsur

e coh

erent

dist

ribut

ion

and

align

-m

ent o

f mark

et inf

orm

ation

pro

visio

n.

2X

Robu

st m

arket

infor

mati

on

on p

ulse

s is d

iversi

fied

TanT

rade

MAF

SC, M

VIW

ATA,

M

ITSI

TA

1.4

Stren

gthe

n th

e m

arket

deve

lopm

ent

capa

cities

of t

he se

ctor.

1.4.

1 En

hanc

e mark

et int

ellig

ence

on

the I

ndian

mark

et by

dev

elopi

ng an

Indi

an m

arket

prof

ile w

ith a

spec

ific f

ocus

on

pige

on p

eas,

chick

peas

( yell

ow g

ram ),

kidne

y bea

ns an

d gr

een

gram

( gree

n m

ung )

. To

geth

er w

ith th

e mark

et pr

ofile

, ens

ure t

he fo

llowi

ng ke

y acti

vities

of t

he p

resen

t roa

dmap

are i

mpl

e-m

ented

for :

• Sc

aling

up

farm

ers t

o res

pond

to in

crea

sing

dem

and

• Im

plem

entin

g th

e vill

age s

torag

e sys

tem w

ith co

llater

al m

anag

emen

t•

Impr

oving

logi

stics

flow

s to

ensu

re su

pply

and

volu

me c

onsis

tency

• Es

tablis

hing

a sim

ple p

roce

dure

to en

sure

meth

yl br

omid

e ( or

alum

inium

pho

spha

te ) f

umig

ation

is

com

plete

d eff

icien

tly at

por

t•

Appl

y spe

cific

storag

e req

uirem

ents

for g

reen

mun

g.

1X

• M

arket

prof

iles o

f pul

ses

are d

evelo

ped

and

share

d in

the n

etwor

k by

201

6•

Mark

et sh

are in

crea

sed

by 2

5 % b

y the

end

of

2018

EAGC

TIC, M

IT, M

AFSC

, Tan

-Tra

de, T

CCIA

, TPS

FTa

nzan

ia M

arkets

Po

licy A

ction

No

de, S

ITA


63

Stra

tegi

c ob

ject

ive

1 : E

nhan

ce th

e ef

fect

iven

ess

of th

e se

ctor

for f

orwa

rd p

lann

ing

and

mar

ket d

evel

opm

ent

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=Hi

gh2=

Med

3=Lo

w

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Pote

ntial

par

tner

pr

ogra

mm

es

2016

2017

2018

2019

2020

1.4

Stren

gthe

n th

e m

arket

deve

lopm

ent

capa

cities

of t

he se

ctor.

1.4.

2 En

hanc

e mark

et int

ellig

ence

on

the M

ENA

mark

ets, p

artic

ularl

y the

UAE

and

Qatar

, by

dev

elopi

ng m

arket

prof

iles w

ith a

spec

ific f

ocus

on

pige

on p

eas,

chick

peas

(yell

ow g

ram),

gr

een

gram

(gree

n m

ung)

.To

geth

er w

ith th

e mark

et pr

ofile

s, an

d in

addi

tion

to th

e acti

vities

for t

he In

dian

mark

et, en

sure

the f

ol-

lowi

ng ke

y acti

vities

of t

he ro

adm

ap ar

e im

plem

ented

:

• Or

ganiz

e buy

er–s

eller

mee

tings

with

impo

rters

from

MEN

A•

Enfo

rce i

ncrea

sed

quali

ty co

ntro

ls on

gree

n m

ung

by p

lant p

rotec

tion

servi

ces,

TFDA

and

TBS

(san

itary

and

phyto

sanit

ary q

ualit

y con

trols)

.

1X

• M

arket

prof

iles o

f pul

ses

are d

evelo

ped,

acce

ssed

an

d im

plem

ented

by

2016

• M

arket

share

incr

ease

d to

5%

of a

ll M

ENA

impo

rts

EAGC

TIC, M

IT, M

AFSC

, Tan

-Tra

de, T

CCIA

, TPS

FTa

nzan

ia M

arkets

Po

licy A

ction

No

de, S

ITA

1.4.

3 En

hanc

e mark

et int

ellig

ence

on

the U

nited

King

dom

mark

et by

dev

elopi

ng a

Unite

d Ki

ngdo

m

mark

et pr

ofile

with

a sp

ecifi

c foc

us o

n pi

geon

pea

s, ch

ickpe

as ( y

ellow

gram

), kid

ney b

eans

, gree

n gr

am ( g

reen

mun

g, an

d pr

oces

sed

dhal )

,and

orga

nizing

buy

er–s

eller

mee

tings

with

impo

rters

from

th

e Unit

ed K

ingdo

m.

1X

• M

arket

profile

s of p

ulses

are

deve

loped

, acc

esse

d an

d im

plem

ented

by 20

16•

Num

ber o

f buy

er–s

eller

m

eetin

gs o

rgan

ized

EAGC

TIC, M

IT, M

AFSC

, Tan

-Tra

de, T

CCIA

, TPS

F

1.4.

4 En

hanc

e mark

et int

ellig

ence

on

the K

enya

mark

et by

dev

elopi

ng a

Keny

a mark

et pr

ofile

with

a sp

ecifi

c foc

us o

n co

mm

on b

eans

and

orga

nizing

buy

er–s

eller

mee

tings

with

impo

rters

/ dist

ribut

ors

from

Ken

ya.

2X

• M

arket

profile

s of p

ulses

are

deve

loped

, acc

esse

d an

d im

plem

ented

by 20

16•

Num

ber o

f buy

er–s

eller

m

eetin

gs o

rgan

ized

EAGC

TIC, M

IT, M

AFSC

, Tan

-Tra

de, T

CCIA

, TPS

F

1.4.

5 En

hanc

e mark

et int

ellige

nce o

n Unit

ed S

tates

and C

anad

a mark

et ac

cess

by de

velop

ing pr

ofiles

with

a s

pecif

ic foc

us on

proc

esse

d dha

l, chic

kpea

s ( ye

llow

gram

), an

d gree

n gram

( gree

n mun

g ) an

d orga

nizing

bu

yer–

selle

r mee

tings

with

impo

rters,

in ad

dition

to pr

epari

ng an

inve

stmen

t prof

ile fo

r dha

l proc

essin

g.

2X

Mark

et pr

ofile

s of p

ulse

s are

dev

elope

d, ac

cess

ed

and

impl

emen

ted b

y 201

6

EAGC

TIC, M

IT, M

AFSC

, Tan

-Tra

de, T

CCIA

, TPS

F

1.4.

6 En

hanc

e mark

et int

ellig

ence

on

small

/ stab

le So

uth-

East

Asian

mark

ets ( M

alays

ia, S

ingap

ore,

Indon

esia,

Sri

Lank

a ) b

y dev

elopi

ng m

arket

prof

iles w

ith a

spec

ific f

ocus

on

proc

esse

d dh

al, ch

ick-

peas

( yell

ow g

ram ),

and

gree

n gr

am ( g

reen

mun

g ) an

d or

ganiz

ing b

uyer

–sell

er m

eetin

gs w

ith im

-po

rters

/ dist

ribut

ors,

in ad

ditio

n to

prep

aring

an in

vestm

ent p

rofil

e for

dha

l pro

cess

ing.

2X

• M

arket

profile

s of p

ulses

are

deve

loped

, acc

esse

d an

d im

plem

ented

by 20

16•

Num

ber o

f buy

er–se

ller

mee

tings

orga

nized

EAGC

TIC, M

IT, M

AFSC

, Tan

-Tra

de, T

CCIA

, TPS

F

1.4.

7 Fa

cilita

te di

alogu

e with

the W

orld

Foo

d Pr

ogram

me i

n th

e Unit

ed R

epub

lic o

f Tan

zania

, to

ex-

plor

e pos

sible

syne

rgies

with

the P

urch

ase f

or P

rogr

ess i

nitiat

ive o

f the

Wor

ld F

ood

Prog

ramm

e in

the

pulse

s sec

tor.

2X

• Di

versi

fied

and

expa

nded

m

arket

for p

ulse

s•

Num

ber o

f con

tracts

or

MoU

s sig

ned

EAGC

MIT,

MVI

WAT

A,

MAF

SCEA

GC, M

VIW

ATA

1.5

Impr

ove t

he q

ualit

y of

pro

ducts

.1.

5.1

Wor

k clo

sely

with

COP

B to

ensu

re th

e app

licati

on o

f a p

rice d

iffere

ntiat

ion

base

d on

qua

lity o

f pr

oduc

e rec

eived

by l

ocal

storag

e cen

tres /

wareh

ouse

s. Th

is is

to en

sure

that

pulse

s are

sold

bas

ed o

n gr

ades

righ

t fro

m th

e tim

e of r

eceiv

ing p

rodu

ce at

the l

ocal

storag

e fac

ility.

2X

• Cr

eate

incen

tives

fo

r qua

lity p

ulse

s th

roug

h hig

her p

rice

com

pens

ation

by 2

017

• Gr

ade 1

fetch

es at

leas

t 10

% h

ighe

r pric

es

MIT

COPB

, EAG

C, M

AFSC

, TB

S, W

MA

1.5.

2 De

velop

a pla

n for

an In

tegrat

ed pe

st m

anag

emen

t proc

ess f

or pu

lses t

hroug

h the

follo

wing

activ

ities :

• Su

rveill

ance

of c

omm

on p

ests

such

as H

elico

verp

a arm

igera

and

pod

fly•

Deve

lopi

ng b

io-fo

rmul

ation

pro

ducti

on u

nits f

or p

rodu

ction

of q

ualit

y HaN

PV in

inad

equa

te qu

antit

ies in

pot

entia

l pul

ses a

reas

• Pr

omot

ion

of H

aNPV

use

• De

mon

strati

on o

f effi

cacy

of i

nteg

rated

pes

t man

agem

ent m

odul

es o

n far

mer

s’ fie

lds t

hrou

gh

integ

rated

pes

t man

agem

ent d

emon

strati

ons i

nvol

ving

farm

ers’

orga

nizati

ons.

2X

Quali

ty of

pig

eon

peas

and

cost

man

agem

ent f

or tr

ad-

ers e

nhan

ced

MAF

SCTro

pica

l Pes

ticid

es

Rese

arch

Instit

ute

64


Stra

tegi

c ob

ject

ive

1 : E

nhan

ce th

e ef

fect

iven

ess

of th

e se

ctor

for f

orwa

rd p

lann

ing

and

mar

ket d

evel

opm

ent

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=Hi

gh2=

Med

3=Lo

w

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Pote

ntial

par

tner

pr

ogra

mm

es

2016

2017

2018

2019

2020

1.6

Advo

cate

for a

sus-

taina

ble p

ulse

s sec

tor.

1.6.

1 Un

derta

ke ev

iden

ce-b

ased

advo

cacy

for p

olicy

form

ulati

on, d

erive

d fro

m em

erging

them

es fo

r th

e sec

tor r

oadm

ap –

to b

e man

dated

to th

e pul

ses n

etwor

k ( a

task t

hat c

ould

later

be t

aken

up

by

COPB

).

2X

• Cl

ear p

olici

es th

at su

ppor

t the

secto

r•

Trans

paren

t poli

cies,

guide

lines

and

regula

tions

EAGC

MIT,

MVI

WAT

A, N

ARS,

M

AFSC

, TCC

IA

1.6.

2 Se

ek te

chnic

al as

sistan

ce fo

r the

dev

elopm

ent o

f pol

icy b

riefs

for t

he va

rious

type

s of p

ulse

s gr

own

in th

e cou

ntry

thro

ugh

com

parat

ive an

alysis

.2

XDe

velo

pmen

t of a

t lea

st tw

o po

licy b

riefs

EAGC

MVI

WAT

A

1.6.

3 Re

duce

pro

cedu

ral b

ottle

neck

s thr

ough

colla

borat

ion

betw

een

the p

ulse

s netw

ork a

nd M

IT an

d / or

MAF

SC to

shor

ten th

e tim

e nee

ded

for a

ccred

itatio

n an

d red

uce c

osts

of ra

diati

on ce

rtific

ates

and

othe

r exp

ort-r

elated

charg

es.

1X

Pulse

s acto

rs ex

perie

nce

lowe

r tran

sacti

on co

sts an

d inc

rease

d eff

icien

cies

EAGC

MIT,

TCCI

A, TR

A, Ta

n-za

nia P

orts

Auth

ority

, M

AFSC

, MVI

WAT

A

EAGC


65

Stra

tegi

c ob

ject

ive

2 : S

cale

up

prod

uctio

n an

d tra

de b

y st

reng

then

ing

PPPs

for s

eed

deve

lopm

ent,

acce

ss to

fina

nce,

tech

nolo

gy tr

ansf

er a

nd fa

rmer

sup

port

serv

ices

.Op

erat

iona

lob

jectiv

esAc

tivitie

sPr

iorit

y1=

High

2=M

ed3=

Low

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fund

ing

sour

ce

2016

2017

2018

2019

2020

2.1

Deve

lop

QDS

and

high-

yield

ing p

ulse

se

eds.

2.1.

1 En

cour

age /

stim

ulate

inve

stmen

t ( pu

blic

or P

PP ) i

n hig

her-y

ieldi

ng se

ed d

evelo

pmen

t thr

ough

bu

ilding

up

resea

rche

rs’ kn

owled

ge o

n pu

lse va

rietie

s, irr

igati

on o

f res

earc

h fie

lds a

nd m

ultip

lica-

tion

cent

res.

1X

XX

Enha

nced

acce

ss an

d av

ail-

abili

ty of

impr

oved

seed

s rai

sed

to 2

5 % b

y 201

8

MAF

SCNA

RS, I

CRIS

AT, I

ITA,

AGRA

, MVI

WAT

A, A

SA,

TOSC

I, Al

lianc

e for

Fi-

nanc

ial In

clusio

n

AGRA

2.1.

2 Br

ing to

geth

er o

n a y

early

bas

is th

ose c

omm

uniti

es as

socia

ted w

ith th

e pro

ducti

on o

f pul

ses,

inclu

ding

the a

cade

mic,

agric

ultu

ral an

d Go

vern

men

t sec

tors,

in o

rder

to :

• Pr

omot

e res

earc

h an

d inv

estm

ent i

n th

e main

pul

se se

eds f

or th

e Unit

ed R

epub

lic o

f Tan

zania

: Pig

eon

peas

, chic

kpea

s ( ye

llow

gram

), kid

ney b

eans

, gree

n gr

am ( m

ung )

, blac

k gram

, sug

ar be

ans a

s prio

rity v

arieti

es ;

• De

velo

p a s

trong

er an

d m

ore a

cces

sible

know

ledge

bas

e for

pul

se cu

ltiva

tion ;

• Pr

ovid

e the

agric

ultu

ral co

mm

unity

with

info

rmati

on an

d to

ols t

hat c

an h

elp im

prov

e its

prod

uctio

n of

pul

ses.

• Al

l the

abov

e to

be p

rivate

secto

r-led

.

1X

XX

XX

Increa

se ta

rgete

d se

ed p

uls-

es fr

om th

e Unit

ed R

epub

lic

of Ta

nzan

ia by

25 %

by 2

020

to ad

dres

s cur

rent m

arket

dem

ands

MAF

SCAS

A, IC

RISA

T, NA

RS,

AGRA

2.1.

3 Re

vise t

he S

eed

Act s

uppo

rting

seed

dev

elopm

ent b

y res

earc

h ins

titut

es to

auth

orize

par

tner-

ship

s with

seed

bree

ders

on a

cont

ractu

al ba

sis.

Build

link

ages

betw

een

seed

gro

wers,

seed

trad

ers a

nd re

searc

h ins

titut

es, f

armer

s, TO

SCI a

nd A

SA

to fa

cilita

te th

e pro

ducti

on an

d di

ssem

inatio

n of

seed

s.

1X

XA

revise

d Se

ed A

ct by

the

end

of th

e pro

ject

MAF

SCEA

GC, A

SA, M

VIW

ATA,

AC

T, Int

erna

tiona

l Fina

nce

Corp

orati

on, P

artic

ipa-

tory

Ecol

ogica

l Lan

d Us

e M

anag

emen

t Tan

zania

, AN

SAF

MVI

WAT

A,

ANSA

F, A

CT

2.1.

4 Pr

omot

e QDS

( sys

tem p

rom

oting

farm

ers’

mul

tiplic

ation

of s

eeds

) pro

ducti

on o

f pul

se se

eds

with

in far

ming

area

s thr

ough

the i

dent

ifica

tion

of ex

isting

stru

ctured

farm

ers’

asso

ciatio

ns.

1X

XX

XX

Increa

se se

ed av

ailab

ility

at wa

rd le

vels

by 2

5 % b

y the

en

d of

the p

rojec

t

TOSC

INA

RS, L

GA, A

SA, A

lli-

ance

for F

inanc

ial In

clu-

sion,

MVI

WAT

A, IC

RISA

T, IIT

A2.

1.5

Deve

lop

a num

ber o

f dem

onstr

ation

plo

ts fo

r new

ly rel

ease

d se

ed va

rietie

s with

com

mun

ities

wi

thin

the r

egio

ns o

f Sari

, Ilo

nga,

Ukur

igur

u, N

alien

dele

and

Uyol

e.1

XX

XX

Increa

se o

f 30 %

–50 %

in

techn

olog

y upt

ake a

mon

g far

mer

s

MAF

SCIC

RISA

T, IIT

A, A

GRA,

AS

A, LG

A, M

VIW

ATA

2.1.

6 NA

RS to

link

up

with

inter

natio

nal s

eed

resea

rche

rs to

org

anize

disc

ussio

n on

seed

dev

el-op

men

t, as

well

as to

exch

ange

bes

t prac

tices

( ICR

ISAT

, IITA

, NAR

S ). O

rgan

ize in

Sari

, Ilo

nga,

Ikilig

uru,

Nali

ende

le an

d Uy

ole.

1X

XX

XInc

rease

d kn

ow-h

ow am

ong

seed

rese

arche

rsM

AFSC

IITA,

ICRI

SAT,

AGRA

, Eu

rope

an U

nion

seed

res

earc

h ins

titut

es, T

ata

Hold

ings

2.1.

7 En

cour

age i

nves

tmen

t in

the f

orm

of a

PPP

to es

tablis

h lar

ge-s

cale

seed

mul

tiplic

ation

. En

gage

with

lead

ing se

ed co

mpa

nies a

lread

y dev

elopi

ng b

etter

seed

s for

the U

nited

Rep

ublic

of

Tanz

ania

in ric

e, m

aize a

nd o

ther

crop

s ( e.

g. P

anna

r ( Du

pont

), Po

p Vr

iend )

to u

nder

stand

wha

t the

Go

vern

men

t and

secto

r stak

ehol

ders

can

do to

enco

urag

e grea

ter p

rivate

par

ticip

ation

in p

ulse

seed

de

velo

pmen

t and

diss

emina

tion.

1X

XX

XInc

rease

of 2

5 % in

the v

ol-

ume o

f qua

lity p

ulse

seed

sTIC

MAF

SC, A

SA, T

OSCI

, M

IT, S

AGCO

T, NA

RS

2.2

Deve

lop

an ef

ficien

t inp

uts d

istrib

utio

n ne

t-wo

rk fo

r hig

her-y

ieldi

ng

varie

ties.

2.2.

1 Re

view

and

deve

lop

a wor

king

mod

el fo

r agr

o-de

alers

/ priv

ate co

mpa

nies t

o en

sure

timely

and

effec

tive d

istrib

utio

n of

inpu

ts, b

ased

on

the e

xam

ple o

f Kili

mo

Mark

ets–K

aratu

, Zen

obia

Seed

Co.

–M

anya

ra, K

rishn

a See

d Co

.– M

anya

ra. O

nce a

mod

el is

deve

lope

d, en

sure

that

it is

linke

d to

villa

ge

exten

sion

offic

ers a

nd st

ockis

ts.M

onito

r and

revie

w th

e im

pact

of th

e mod

el in

2018

.

1X

XFa

rmer

s’ ac

cess

to q

ualit

y se

eds e

nsur

ed b

y 201

8Bu

ilding

Ru-

ral In

com

es

Thro

ugh

Enter

-pr

ise ( B

RiTE

N )

( non

-gov

ernm

en-

tal o

rgan

izatio

n )

MVI

WAT

A, A

SA, N

ARS,

M

AFSC

, RUD

I, EA

GC

2.2.

2 St

rengt

hen

the c

apac

ity o

f ASA

in th

e dist

ribut

ion

of p

ulse

seed

s. Th

is wi

ll be

don

e by s

up-

porti

ng A

SA to

revie

w an

d im

prov

e an

annu

al se

ed d

istrib

utio

n sy

stem

that

is co

nsist

ent w

ith ag

ri-cu

ltural

zone

s.

1X

XX

Effic

iency

in se

ed d

istrib

u-tio

n inc

rease

d by

50 %

ASA

MAF

SC, N

ARS,

MVI

-W

ATA,

RUD

I, BR

iTEN

66


Stra

tegi

c ob

ject

ive

2 : S

cale

up

prod

uctio

n an

d tra

de b

y st

reng

then

ing

PPPs

for s

eed

deve

lopm

ent,

acce

ss to

fina

nce,

tech

nolo

gy tr

ansf

er a

nd fa

rmer

sup

port

serv

ices

.Op

erat

iona

lob

jectiv

esAc

tivitie

sPr

iorit

y1=

High

2=M

ed3=

Low

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fund

ing

sour

ce

2016

2017

2018

2019

2020

2.3

Enco

urag

e the

de

velo

pmen

t of m

e-di

um- a

nd la

rge-

scale

ag

ribus

iness

servi

ces

acro

ss th

e Unit

ed R

e-pu

blic

of Ta

nzan

ia.

2.3.

1 Ac

cord

inve

stors

in ag

ribus

iness

servi

ces w

ith st

rateg

ic inv

esto

r stat

us,3

there

by q

ualif

ying

them

for s

pecia

l inc

entiv

es an

d en

cour

aging

the d

evelo

pmen

t of a

grib

usine

ss se

rvice

s acr

oss t

he

Unite

d Re

publ

ic of

Tanz

ania.

1X

XX

XX

Increa

sed

num

ber o

f in-

vestm

ent i

n ag

ri-bu

sines

s by

25 %

TICEP

ZA, T

RA, S

AGCO

T, PM

O, M

AFSC

2.3.

2 Pr

ovid

e cap

acity

-buil

ding

on

harve

st an

d po

stharv

est m

anag

emen

t and

the u

se o

f app

ropr

iate

techn

olog

ies to

farm

ers,

with

a vie

w to

enco

urag

e agr

ibus

iness

es to

pro

vide s

uch

servi

ces l

onge

r ter

m, b

y pro

viding

train

the t

raine

r pro

gram

mes

to th

e agr

ibus

iness

pro

vider

s.

1X

XX

XX

Posth

arves

t los

ses r

educ

ed

by 2

5 % th

roug

h ad

optio

n of

ap

prop

riate

techn

olog

ies

EAGC

PMOR

ALG

( exte

nsio

n of

ficer

s )Ta

nzan

iaGr

adua

te Fa

rmer

s As-

socia

tion,

MAF

SC, R

UDI,

MVI

WAT

A, M

IT

EAGC

2.3.

3 Int

rodu

ce an

d pr

omot

e agr

ibus

iness

servi

ces’

prov

ision

of m

obile

unit

s, m

echa

nizati

on,

herm

etic c

ocoo

ns, s

ilos a

nd th

reshe

rs, th

roug

h m

eans

such

as re

nting

to sm

all an

d m

edium

-size

d far

ms.

The a

ctivit

y will

und

ertak

e the

nee

ds an

d de

man

d as

sess

men

ts an

d pr

ovid

e the

se to

the a

gri-

busin

ess s

ervic

e pro

vider

s.

2X

XX

XInc

rease

d qu

ality

of p

ulse

s sto

redTW

LBM

AFSC

, Nati

onal

Food

Re

serve

Age

ncy,

MVI

-W

ATA,

RUD

I, M

IT, E

AGC,

Co

oP2.

4 De

velo

p an

effic

ient

storag

e, wa

rehou

sing

and

logi

stics

syste

m as

a t

rading

plat

form

for

the p

ulse

s sec

tor.

2.4.

1 Ta

ke in

vent

ory o

f all

rural

stor

age u

nits a

nd w

areho

uses

. Dep

endi

ng o

n ga

ps in

exist

ing in

fra-

struc

ture,

enco

urag

e LGA

s and

the p

rivate

secto

r to

effec

tively

util

ize vi

llage

coun

cil st

orag

e fac

ili-

ties a

nd, i

f the

se ar

e ins

uffic

ient,

cons

truct

new,

larg

er fa

ciliti

es. S

imul

taneo

usly,

cond

uct a

deta

iled

asse

ssm

ent o

f exis

ting

tradi

ng p

latfo

rms i

n di

strict

s / vil

lages

to m

easu

re th

e vol

umes

of p

ulse

s tra

ded

by vi

llage

s for

futu

re / in

form

ed p

lannin

g fo

r pro

ducti

on an

d tra

ining

.

2X

XDa

tabas

e of a

ll wa

rehou

ses

avail

able

for n

etwor

k mem

-be

rs an

d ot

her s

takeh

olde

rs

Traini

ng C

entre

fo

r Dev

elop-

men

t Coo

perat

ion

( TCD

C ) / E

AGC

EAGC

, MVI

WAT

A, R

UDI,

MAF

SC, S

AGCO

T, M

IT,

TWLB

, LGA

, Am

sha I

n-sti

tute

of R

ural

Entre

pre-

neur

ship

MIT

2.4.

2 Pr

opos

e the

refu

rbish

men

t of s

torag

e cen

tres a

nd w

areho

uses

thro

ugh

the e

stabl

ishm

ent o

f reh

abili

tate,

oper

ate an

d tra

nsfer

; or r

ehab

ilitat

e, ow

n an

d op

erate

PPP

s. Po

ssib

ly lin

k to

colla

teral

man

agem

ent s

ystem

s.

XX

2.4.

3 In

colla

borat

ion

with

rural

stor

age c

entre

s and

ware

hous

es an

d ex

isting

servi

ce p

rovid

ers,

use

infor

mati

on an

d co

mm

unica

tions

tech

nolo

gy an

d m

obile

pho

nes t

o im

prov

e link

s betw

een

ware-

hous

es an

d vil

lage t

rader

s for

pric

e, lo

catio

n an

d su

pply /

dem

and

infor

mati

on.

2X

XIm

prov

ed p

rice i

nfor

mati

on

leads

to h

ighe

r vol

umes

be-

ing tr

aded

EAGC

MVI

WAT

A, M

IT, R

UDI,

LGA,

MAF

SC, T

IGA,

VO-

DAPH

ONE,

AIR

TEL

EAGC

2.4.

4 Un

derta

ke a

review

of t

he fe

asib

ility

for r

evisi

ng th

e 5,0

00 to

ns p

olicy

on

the w

areho

use r

e-ce

ipt s

ystem

, in

orde

r to

increa

se vo

lum

es.

2X

XX

XX

2.4.

5 Su

ppor

t fas

t trac

king

for t

he es

tablis

hmen

t and

com

miss

ionin

g of

a co

mm

odity

exch

ange

( C

OMEX

) thr

ough

tech

nical

assis

tance

– w

orkin

g wi

th th

e Cap

ital M

arkets

and

Secu

rities

Aut

horit

y an

d th

e exc

hang

e to

inclu

de p

ulse

s as a

trad

able

com

mod

ity.

3X

XX

XX

Pulse

s are

trade

d th

roug

h a c

omm

odity

exch

ange

by

202

0

MIT

TWLB

, COP

P, Ca

pital

M

arkets

and

Secu

rities

Au

thor

ity, M

AFSC

, Min

of F

inanc

e, PM

O, P

MO–

RALG

, EAG

C, TC

CIA,

AC

T, AN

SAF,

TPSF

2.5

Impr

ove a

cces

s to

finan

ce al

ong

the v

alue

chain

.

2.5.

1 Se

ek th

e crea

tion

of a

spec

ial c

redi

t lin

e fo

r pul

ses

in TA

DB to

focu

s on

pulse

s dev

elop-

men

t and

fina

ncial

acce

ss fo

r farm

ers a

nd o

ther

acto

rs wh

o are

enga

ged,

or w

ant t

o be

, with

in th

e pu

lses s

ecto

r. Po

ssib

ly no

mina

te a p

ulse

s spe

cialis

t fina

nce o

ffice

r at T

ADB

to an

alyse

loan

ap-

plica

tions

for p

ulse

s. On

ce th

e spe

cial c

redit

line a

t TAD

B is

crea

ted, i

dent

ify an

d en

ter in

to ag

ree-

men

ts / M

oUs w

ith fi

nanc

ial in

stitu

tions

and

othe

r tec

hnica

l pro

vider

s tha

t can

pro

mot

e the

pul

ses

secto

r by o

fferin

g pr

eferen

tial c

redits

sim

ilar t

o th

e one

s pro

vided

to co

tton

buye

rs / g

inner

s.

1X

Increa

sed

finan

cial a

cces

s fo

r pul

ses s

ecto

r acto

rsInc

rease

of 1

0 % fr

om cu

r-ren

t lev

els o

f sec

tor c

redit

EAGC

TPSF

, TAD

B, M

AFSC

, TID

B, A

CB, S

FDT,

Pri-

vate

Agric

ultu

ral S

ecto

r Su

ppor

tLim

ited,

SAC

COS

EAGC

2.5.

2 Ca

pacit

y-bu

ilding

to b

usine

ss to

prep

are b

usine

ss p

lans a

nd b

anka

ble p

rojec

ts in

orde

r to

secu

re lo

an ap

plica

tion

and

man

agem

ent.

XAc

cess

to cr

edit

impr

oves

by

10 %

2.5.

3 W

ork w

ith P

rivate

Agr

icultu

ral S

ecto

r Sup

port

Limite

d to

pro

vide a

cred

it gu

arant

ee fo

r pul

ses

valu

e cha

in ac

tors.

2X

XX

XX

Priva

te Ag

ricul

tural

Sec

tor

Supp

ort L

imite

d pr

ovid

es at

lea

st 25

% cr

edit

guara

ntee

to

pul

ses a

ctors

EAGC

MAF

SC, M

IT, S

ITA

2.5.

4 Inc

rease

know

ledge

by o

perat

ors t

o pr

epare

pro

jects

to ac

cess

SAC

COS

in or

der t

o fac

ilitat

e ac

cess

to ag

ricul

tural

fina

nce f

or p

ulse

pro

duce

rs.

2X

XX

SACC

OS


67

Stra

tegi

c ob

ject

ive

3 : P

rom

ote

skill

s bu

ildin

g al

ong

the

valu

e ch

ain

to p

rofe

ssio

naliz

e th

e se

ctor

.Op

erat

iona

l ob

jectiv

eAc

tivitie

sPr

iorit

y1=

High

2=M

ed3=

Low

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fund

ing

sour

ce

2016

2017

2018

2019

2020

3.1

Prov

ide t

argete

d tra

ining

on

GAP.

3.1.

1 Re

view

and

upda

te a s

tanda

rd n

ation

al tra

ining

pro

gram

me o

n GA

P ( b

ringi

ng in

bus

iness

skill

s as

pects

) for

all p

rovid

ers i

n th

e main

pul

se p

rodu

ction

regi

ons.

2X

Natio

nal t

rainin

g pr

ogram

me

for G

AP o

n pu

lses u

pdate

dM

AFSC

SUA,

Mini

stry o

f Ag

ricul

ture

Traini

ng

Instit

utes

SITA

3.1.

2 W

ork w

ith at

leas

t five

inve

stors

in th

e sec

tor t

o es

tablis

h an

exten

sion

syste

m w

hich

is dr

iven

by

the p

rivate

secto

r, es

pecia

lly in

regi

ons w

here

thes

e are

not c

urren

tly in

exist

ence

.2

XPr

ivate

exten

sion

servi

ces

wide

ly ad

opted

EAGC

MAF

SC, M

ITEA

GC

3.1.

3 Fo

r MAF

SC –

Ext

ensi

on S

ervi

ces :

• Un

derta

ke a

traini

ng n

eeds

asse

ssm

ent a

mon

g ex

tensio

n of

ficer

s, ba

sed

on ag

roec

olog

ical z

ones

;•

Deve

lop

mod

ules

that

focu

s on

legum

es / p

ulse

s, an

d wh

ich ar

e inf

orm

ed b

y the

gap

s ide

ntifi

ed b

y th

e trai

ning

need

s ass

essm

ent ;

• Ide

ntify

cham

pion

s am

ong

the e

xtens

ion

offic

ers w

ho w

ill p

rovid

e tec

hnica

l bac

ksto

pping

( trai

ning

of tr

ainer

s ) am

ong

othe

r exte

nsio

n of

ficer

s on

pulse

s

1X

Adeq

uate

num

bers

of sk

illed

an

d m

otiva

ted ex

tensio

n of-

ficer

s are

in pl

ace

MAF

SCM

inistr

y of A

gricu

l-tu

re Tra

ining

Insti

-tu

tes, S

UA

3.1.

4 Fo

r Far

mer

Fie

ld S

choo

ls :

• De

velo

p Fa

rmer

Fiel

d Sc

hool

mod

ules

( agr

onom

ical p

ractic

es, p

osth

arves

t man

agem

ent a

nd

techn

olog

ies ) ;

• Es

tablis

h pu

lse-s

pecif

ic Fa

rmer

Fiel

d Sc

hool

s in

all d

istric

ts th

at fo

rm p

art o

f the

hig

hest-

prod

ucing

are

as in

the c

ount

ry, st

artin

g wi

th M

anya

ra, S

imiyu

, Aru

sha,

Dodo

ma,

Katav

i and

Mtw

ara.

1X

XFa

rming

skill

s lea

ding

to

good

pro

ducti

on te

chniq

ues

adop

ted

MAF

SCLG

As, N

ARS,

M

VIW

ATA,

RUD

I, BR

iTEN

3.1.

5 Fo

r agr

ibus

ines

ses :

• Pr

epare

an ag

ribus

iness

mod

el ( in

cludi

ng g

ross

marg

in an

alysis

) for

pro

duce

rs an

d ot

her a

ctors

and

share

amon

g sta

keho

lder

s.

2X

XX

XPr

ofita

bilit

y of p

ulse

pro

duc-

tion

ackn

owled

ged

by fa

rm-

ers a

nd o

ther

acto

rs

EAGC

MIT,

CoP

P, M

AFSC

, PM

O–RA

LG, F

arm

Conc

ern

EAGC

3.1.

6 Ag

ricul

ture

trai

ning

inst

itute

s an

d ot

her s

ervi

ce p

rovi

ders

:

• M

obili

ze fa

rmer

s int

o gr

oups

for t

he p

urpo

se o

f con

ducti

ng tr

aining

.•

Supp

ort f

armer

gro

ups w

ith re

gistr

ation

s and

gro

up d

ynam

ic tra

ining

s ;•

Diss

emina

te tra

ining

mod

ules

to se

rvice

pro

vider

s – th

ese m

ust i

nclu

de cr

op ro

tatio

n, so

il qu

alitie

s, cli

mate

-sm

art a

gricu

lture

and

impo

rtanc

e for

yield

s – o

n pu

lses a

gron

omy ;

• De

velo

p an

d pr

ovid

e trai

ning

of tr

ainer

s ( le

ad fa

rmer

s ) fo

r pul

ses.

2X

Stren

gthe

ned

farm

er g

roup

s ac

hieve

hig

her p

rodu

ction

MAF

SCRU

DI, M

VIW

ATA,

M

inistr

y of A

gri-

cultu

re Tra

ining

Ins

titut

es, B

RiTE

N,

EAGC

3.1.

7 In

tern

atio

nal p

artn

ers

with

the

GAP

prog

ram

me

for p

ulse

s

• Inv

ite in

terna

tiona

l par

tner

s to

parti

cipate

in G

AP tr

aining

s as w

ell as

to sh

are kn

own

techn

olog

ies•

Prep

are jo

int to

ols f

or ad

optio

n of

tech

nolo

gies

and

techn

ique

s•

Supp

ort t

he p

ulse

s netw

ork t

o de

velo

p m

onito

ring

and

evalu

ation

indi

cato

rs.

2X

XX

Natio

nal p

ulse

train

ings a

re co

nsist

ent w

ith in

terna

tiona

l be

st pr

actic

es

MAF

SCIC

RISA

T, IIT

A, A

GRA,

NA

RS, E

AGC,

Tan-

Trade

, Int

erna

tiona

l Bu

sines

s & Tr

ade

Tanz

ania

Initia

tive

3.2

Impr

ove s

pecif

ic tra

ining

on

reduc

tion

of p

re- an

d po

st-ha

rvest

loss

es.

3.2.

1 Co

nduc

t an

asse

ssm

ent / m

appi

ng / b

aseli

ne su

rvey o

f pre-

harve

st, h

arves

t and

pos

tharv

est l

osse

s in

the p

ulse

s sec

tor o

f the

Unit

ed R

epub

lic o

f Tan

zania

( con

strain

ts ) an

d tec

hnol

ogy o

ptio

ns.

1X

Posth

arves

t los

ses f

or p

ulse

s id

entif

iedSU

AM

AFSC

, NAR

S, M

IT,

EAGC

, MVI

WAT

A

68


Stra

tegi

c ob

ject

ive

3 : P

rom

ote

skill

s bu

ildin

g al

ong

the

valu

e ch

ain

to p

rofe

ssio

naliz

e th

e se

ctor

.Op

erat

iona

l ob

jectiv

eAc

tivitie

sPr

iorit

y1=

High

2=M

ed3=

Low

Impl

emen

tatio

n pe

riod

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fund

ing

sour

ce

2016

2017

2018

2019

2020

3.2

Impr

ove s

pecif

ic tra

ining

on

reduc

tion

of p

re- an

d po

st-ha

rvest

loss

es.

3.2.

2 Ba

sed

on th

e out

com

e of 3

.2.1

, sup

port

the d

evelo

pmen

t of t

rainin

g m

odul

es th

at co

ver :

• Ha

rvesti

ng•

Slas

hing

time

• Hu

mid

ity co

nten

t•

Stor

age

• Tra

nspo

rtatio

n fro

m th

e fiel

d•

Thres

hing

techn

ique

s and

tech

nolo

gies

• Dr

ying

techn

ique

s and

tech

nolo

gies

• At

pac

king,

acce

ss to

and

use o

f ade

quate

pac

king

mate

rials.

Targ

eted

at :

• Ex

tensio

n of

ficer

s, lea

d far

mer

s•

Farm

ers’

orga

nizati

ons a

nd co

-op

leade

rs•

Traini

ng o

f trai

ners

– fo

r farm

ers a

nd ex

tensio

n of

ficer

s•

Agric

ultu

ral S

eed

Agen

cy

• Pr

ivate

secto

r ser

vice p

rovid

ers :

Farm

er F

ield

Scho

ols,

Natio

nal A

gricu

ltural

Res

earc

h St

ation

s, co

-op

leade

rs, A

gricu

ltural

See

d Ag

ency

( ASA

).

1X

XPo

stharv

est l

osse

s are

reduc

ed b

y 25 %

thro

ugh

adop

tion

of ap

prop

riate

tech-

nolo

gies

by y

ear 2

018

SUA

EAGC

, MAF

SC,

MIT,

CAR

MAT

EC,

Tanz

ania

Indus

trial

Rese

arch

and

Deve

lopm

ent

Orga

nizati

on, T

an-

zania

Engi

neer

ing an

d M

anuf

actu

ring

De-

sign

Orga

nizati

on

3.3

Enha

nce g

ood

gove

rnan

ce, m

an-

agem

ent a

nd m

ar-ke

ting

prac

tices

of

farm

ers’

asso

ciatio

ns

and

coop

erati

ves.

3.3.

1 Un

derta

ke a

map

ping

and

prof

iling

exerc

ise fo

r farm

ers’

orga

nizati

ons i

n pu

lse p

rodu

cing

areas

. Th

is wi

ll he

lp to

dete

rmine

whe

re eff

orts

need

to b

e plac

ed fo

r inc

reasin

g pr

oduc

tion

and

orga

nizati

onal

supp

ort.

1X

XX

Exist

ing fa

rmer

org

aniza

tions

in

prod

ucing

area

s ide

ntifi

edM

RAEA

GC, M

VIW

ATA,

RU

DI, B

RiTE

N,

TCDC

, Kili

mo

Mark

ets, F

riend

s in

Deve

lopm

ent

3.3.

2 En

cour

age a

ssoc

iatio

ns / c

o-op

s / AM

COS

to p

rofes

siona

lize b

y ens

uring

adhe

rence

to g

ood

gov-

erna

nce a

nd m

anag

emen

t prac

tices

as a

key r

equir

emen

t to

acce

ss m

arkets

and

finan

ce. P

rovid

e trai

n-ing

to w

illing

asso

ciatio

ns / c

o-op

s on

busin

ess m

anag

emen

t skil

ls ( a

ccou

nting

, fina

ncial

plan

ning,

m

arketi

ng, c

omm

unica

tions

, trad

e fair

par

ticip

ation

, etc.

). M

ake p

artic

ipati

on in

the t

rainin

g an

entry

po

int to

acce

ss m

arket

oppo

rtunit

ies th

roug

h th

e pul

ses n

etwor

k and

to ac

cess

fina

ncial

servi

ces.

Such

tra

ining

shou

ld b

e carr

ied o

ut b

y nati

onal

servi

ce p

rovid

ers.

1X

XX

• Nu

mbe

r of t

rainin

gs

cond

ucted

• Nu

mbe

r of m

arket

oppo

rtunit

ies av

ailab

le to

as

socia

tions

/ co-

ops

MVI

WAT

ATC

DC, T

FC, R

UDI,

BRiTE

N, M

AFSC

3.3.

3 Pr

ovid

e targ

eted

supp

ort a

nd tr

aining

to fa

rmer

s’ as

socia

tions

/ co-

ops o

n ac

cess

to fi

nanc

ial

servi

ces,

nam

ely o

n th

e pro

cedu

res to

acce

ss th

e Max

imum

Liab

ility

Certi

ficate

. Pro

vide t

rainin

g in

build

ing b

usine

ss p

ropo

sals

for b

anks

to ac

cess

the c

redit

avail

able.

2X

XX

XX

Num

ber o

f co-

ops a

nd as

-so

ciatio

ns re

ceivi

ng a

Max

i-m

um Li

abili

ty Ce

rtific

ate

TCDC

MVI

WAT

A, R

UDI,

MAF

SC, T

FC, E

AGC,

M

IT, B

RiTE

N, A

CT3.

3.4

Stren

gthe

n far

mer

s’ as

socia

tions

’ / co-

ops’

know

ledge

of a

nd ab

ility

to o

rgan

ize co

llecti

ve m

ar-ke

ting

thro

ugh

enha

nced

qua

lity m

anag

emen

t, sto

rage a

nd b

ulkin

g ca

pacit

ies.

2X

XX

XNu

mbe

r of a

ssoc

iatio

ns / c

o-op

s prac

tising

colle

ctive

m

arketi

ng fo

r pul

ses

TWLB

ACT,

EAGC

, RUD

I, M

VIW

ATA,

MRA

3.3.

5 Pr

ovid

e trai

ning

to fa

rmer

s’ as

socia

tion /

co-o

p lea

ders

and

trade

rs on

how

to ac

cess

glo

bal m

ar-ke

t inf

orm

ation

and

use i

t for

pro

activ

e plan

ning.

2

XX

XX

Num

ber o

f trai

nings

con-

ducte

d to

lead

ers

MIT

TIC, E

AGC,

MVI

-W

ATA,

TanT

rade

3.3.

6 De

velo

p cr

iteria

for a

sses

sing

best-

man

aged

com

panie

s, an

d far

mer

s’ gr

oups

, ass

ociat

ions

or

co-o

ps. T

his in

clude

s med

ium-s

ized

and

large

farm

s. M

aintai

n a l

ist o

f farm

ers’

asso

ciatio

ns / c

o-op

s th

at ad

here

to g

ood

gove

rnan

ce an

d bu

sines

s prac

tices

at th

e pul

ses n

etwor

k in

orde

r to

link t

o bu

yers.

2X

XX

XLis

t of a

ssoc

iatio

ns / c

o-op

s wi

th b

est p

ractic

es m

ain-

taine

d

TCDC

EAGC

, MVI

WAT

A,

RUDI

, BRi

TEN,

MIT,

M

AFSC

TCDC

ANNEXES

Photo: John Poulakis (CC BY-NC-SA 2.0), Broad Beans.

70


APPENDIX 1 : LIST OF PARTICIPANTS AT CONSULTATIONS

1st consultation

Name of Institution Contact Person

Ministry of Agriculture, Food Security, and Cooperatives – Extension Perpatua Hingi

Ministry of Industry and Trade Ellie Pallangyo

Tanzania Trade Development Authority Emmanuel Miselya

The Tanzania Investment Centre ( TIC ) Pendo Gondwe

Tanzania Private Sector Foundation Rehema

Tanzania Official Seed Certification Institute T.Z. Maingu

SACGOT Mr. Geoffrey Israel Kirenga

SGS Twalib Mohamed, Manager Laboratory

Agriculture Council of Tanzania Janet Bitegeko

East Africa Grain Council Terry Ikunda

Cereal and other produce Board ( CoPB ) Augustino Mbulumi

Tanzania Cooperative Development ( TCDC ) Benjamin P. Mwangwala, Principal

Export Trading Group

Mohamed Enterprises

Tandale Market Grain Sellers Association ( TAMAGRASAI ) Mr. Dikwe,Chairman

Ruaha Millers Atanasi Paulo Kipeto

Mapanda Enterprises C. S. Sangale, Managing

Frabho enterprises Julius Wambura, CEO

Agro-Kibiti Company Nathaniel Kombe

Dodoma Transport Agency Ltd Dharampal Singh Mand

Rift Valley Cooperative Union ( RIVACU ) William Mbogoro

SWISS SINGAPORE OVERSEAS ENTERPRISES PTE. LTD. Jitendra Kothari

Quality Food Products ( QFP ) Ekko Oosterhuis, Director

MVIWATA HQ Stephen Ruvuga, Executive

Rural Urban Development Initiative ( RUDI ) Abel Lyimo, Director

Kibaigwa Market Board Kusekwa Dalali, Manager

Tanzania Graduate Farmers Association ( TGFA ) Nguvu Giovanni

International Business and Trade Tanzania Initiative ( IBUTTI ) Deogratius Mbona, Executive

MKATA AMCOS Sabini Handini

Selian Agriculture Research Institute ( SARI ) Mr. Phillemon Mushi

[ ANNEXES ]

71

2nd consultation

Name of Institution Contact Person

Ministry of Agriculture, Food Security, & Cooperatives – Policy & Planning Perpetua Hingi

Ministry of Industry and Trade Kassim Mbufu

Tanzania Trade Development Authority EMMANUEL MISELYA

Tanzania Private Sector Foundation Neema Temba

SGS Robert Mokola

East Africa Grain Council Terry Ikunda

Cereal and other produce Board ( CoPB ) Augustino Mbulumi

Tanzania Cooperative Development ( TCDC ) Benjamin P. Mwangwala, Principal

Quality Pulses Exporters Sabrina Meharali

Tandale Market Grain Sellers Association ( TAMAGRASAI ) Juma Shabani Dikwe

Ruaha Millers Atanasi Paulo Kipeto

Frabho enterprises Julius Wambura,CEO

Agro-Kibiti Company Nathaniel Kombe

Dodoma Transport Agency Ltd Dharampal Singh Mand

Rift Valley Cooperative Union ( RIVACU ) William Mbogoro

MVIWATA HQ Emmanuel Mandike

Rural Urban Development Initiative ( RUDI ) Sesilia Jeremiah


International Business and Trade Tanzania Initiative ( IBUTTI ) Deogratius Mbona, Executive

Selian Agriculture Research Institute ( SARI ) Philemon Mushi

MVIWATA Manyara Donald Laizer


TCRS Nguno Bahebe Chugga

Litegnga Holdings Mathew Ngwahh

Export Processing Zones Authority Nakadongo Ngomuo

Ministry of Industry and Trade Ellie Pallangyo

Ministry of Industry and Trade Gevaronge Muyombe

Ministry of Industry and Trade Genoveva Kilabuko

East Africa Grain Council Juma Bruno Ngomuo

Bajwa and Farmers Traders Mohamed Bajwa

Lower Moshi Irrigation Association Mohamed Mshana

TCCIA Manyara Jonus Massamu

AgriLink Tanzania Isack Paul Ndamanhyilu

MVIWATA Kilimanjaro Mr. Alex Urio

Farm Concern International Daudi Mwakalinga

VECO East Africa Paul Mbuthua

Input supplier – pigeonpea and farmer Geofray Mlay

Tanzania Graduate Farmers Association Stephano Kingazi

Farmer Julius Buuyo

Kilimo Markets Daniel Charles

TCCIA Manyara Carol Chirimi

DED Babati Tarimo Leonard

VECO East Africa Mark Blackett

72


APPENDIX 2 : GOVERNMENT POLICIES SUPPORTING THE PULSES SECTOR

The following section provides an overview of national plans, policies and initiatives directly or indirectly supporting the pulses sector’s development. A number of plans and measures include the mainstreaming of pulses and products in Government budgets and incentives plans, improving access to inputs, reducing dependence on climatic conditions, and developing key marketing and postharvest infrastructure as well as sector and rural development policies. An overview of the overarching visions, plans and strategies is presented below.

United Republic of Tanzania Development Vision 2025

National Strategy for Growth and the Reduction of Poverty

( MKUKUTA I ) 2006–2010

MKUKUTA II

2010–2015

Five Year Development Plan

2012–2016

Agriculture Sector Development Strategy

Kilimo Kwanza ( Transforming Agriculture ) 2009

National Irrigation Development Plan

TAFSIP

National Agriculture Policy

Source : Adapted by ITC, based on the policy framework for agriculture and food security in the United Republic of Tanzania,

in Monitoring African Food and Agricultural Policies ( 2013 ), p. 52.

National plans

Five Year Development Plan – Launched in 2011 by the Office of the President, the current Five Year Development Plan’s aim is to achieve the ambition of the United Republic of Tanzania becoming a middle-income country by 2025. The plan focuses on five sectors, of which agriculture is one. It targets a real growth rate of 8 % by 2016 and 10 % from 2016 to 2025. Within the agriculture sector, the plan focuses on transforming agriculture for food security, self-sufficiency and agricultural exports ; developing and implementing efficient and modern irrigation systems ; and increas-ing the production of high-value crops including horticulture, floriculture, spices and vineyards.

National Irrigation Development Plan – Rainfall levels in the United Republic of Tanzania’s tropical climate are low and unreliable, with average rainfall ranging be-tween 600 and 800 mm annually. In order to support the Government’s emphasis on agricultural export diversification, the Government of the United Republic of Tanzania is undertaking enhanced large-scale irrigation projects aimed at combating the ef-fects of drought in the country’s key food production areas. The National Irrigation Development Plan is aimed at updating traditional irrigation systems and streamlin-ing them under a unified irrigation policy.

TAFSIP – Initiated in 2010, TAFSIP is a Government initiative bringing together stake-holders from across the country ( including Zanzibar ) to work towards a common agenda of comprehensively transforming the agricultural sector to create wealth, reduce poverty and achieve food and nutrition security. The plan includes improving

[ ANNEXES ]

73

trade policy and international market linkages and was drafted with the help of a Comprehensive Africa Agriculture Development Programme ( CAADP ) Task Force.

National Agriculture Policy – The National Agriculture Policy aims to transform the agricultural sector into a modern, commercial and competitive sector of the economy that will ensure food security through better equipment, seeds and practices ; and to alleviate poverty and achieve economic growth through the increased production of competitive cash crops. Its main policy objectives include :

� Strengthening agricultural support and technical services, such as research, mechanization, irrigation, extension and training

� Increasing production, productivity and profitability through better use of land, labour and capital

� Enhancing national food and nutrition security and increasing surplus production of such crops for export

� Improving agricultural processing both to add value to produce and to create jobs � Enhancing production of quality products to improve competitiveness in domes-

tic, regional and international markets � Increasing foreign exchange earnings derived from exports of agricultural

products � Creating an environment that will better attract private sector investment � Strengthening coordination between actors within the sector and increasing ef-

ficiency and effectiveness � Protecting and promoting integrated and sustainable use of agricultural lands.

National and regional development mechanisms

National Agriculture Input Voucher System – This is a ‘market smart’ input sub-sidy programme primarily designed to increase rice and maize production and help preserve food security within the United Republic of Tanzania.36 It was put in place following sharp global grain and fertilizer price increases in 2007 and 2008. Other agricultural products, pulses included, may benefit from this system.

CAADP – CAADP is an African-led and African-owned initiative and framework to develop African agriculture for economic growth and poverty reduction. CAADP made an agreement to work with the Government of the United Republic of Tanzania in 2010 and is part of TAFSIP. The primary functions of CAADP are to aid individual country governments in relevant agribusiness-friendly agricultural policymaking and policy coordination with other regional actors ; provide financing for development within the agricultural sector ; win the support of international donors ; and engage with civil society.

Southern Agricultural Growth Corridor of Tanzania ( SAGCOT ) – Initiated at the World Economic Forum Africa Summit in 2010, SAGCOT is a multi-stakeholder partnership between farmers, agribusiness, the Tanzanian Government and private companies to rapidly develop the region’s agricultural sector. It is the first large-scale risk-sharing model of a PPP approach to development in the history of the United Republic of Tanzania. SAGCOT commitments ( to be achieved by 2030 ) include bringing 350,000 hectares of land into profitable production, transitioning 100,000 smallholder farmers into commercial farming, creating 420,000 new agricultural employment opportunities, generating US $ 1.2 billion in annual farming revenue, and lifting 2 million people out of poverty.

36.– Baltzer, K. and Hansen. H. ( 2011 ). Agricultural Input Subsidies in Sub-Saharan Africa : Evaluation Study 2011 / 2, DANIDA.

74


Key national regulations

Plant Protection Act, 1997

The Plant Protection Act of 1997 was introduced primarily to prevent the introduction of new plant pests. The Act, implemented under MAFSC, works to :

� Prevent the introduction and spread of harmful organisms � Ensure sustainable plant and environmental protection � Control the importation and use of plant protection substances � Regulate the export and import of plants and plant products � Ensure the fulfilment of international commitments by entrusting all plant

protection regulatory functions to the Government of the United Republic of Tanzania.

Agricultural Products ( Control of Movement ) Act, 1996

The Agricultural Products ( Control of Movement ) Act of 1996 seeks to control the movement of agricultural and livestock products ( with the exception of meat, hides / skins, bones or horns ) in certain areas. If there are any conditions suggesting that a shortage of any agricultural product exists or is likely to exist in a certain area of the country, then the prohibition, restriction or regulation of such products from the area can be enforced for any period of time.

Food Security Act, 1991 and the Cereals and Other Produce Act, 2009

The Food Security Act of 1991, amended by the Cereals and Other Produce Act of 2009, is enforced by the Directorate of Food Security at MAFSC. It includes a mechanism for coordinating production and the provision of information regarding food security and specific procedures to deal with food shortages. The Act also foresees the establishment of a cereals and other produce regulatory authority, which would be in charge of regulating the international trade of food products.

The Cereals and Other Produce Act of 2009 created a new Board, which has the power to intervene in the rice and maize markets. The Board is empowered to :

� Facilitate research on cereals � Facilitate the offer of extension services to growers and dealers � Facilitate the development of agricultural input services � Disseminate information, including market information � Promote production, processing and storage � Promote appropriate technologies � Assist with the formation of farmers organizations.

The Board is also entrusted to undertake commercial operations ; buying and selling cereals ; importing and exporting cereals ; processing them ; providing warehous-ing services, cleaning, drying, weighing, grading and packaging of cereals ; and performing other commercial functions that assist in the development of the trade in cereals. In addition, the Board may build or purchase equipment and buildings, as well as establish market centres and / or provide training. The Act further creates a set of zone councils which are to act as a liaison with local farmer groups, develop local market information services, and act as a consultative forum in which local farmers and traders can discuss and resolve their differences.

[ ANNEXES ]

75

Land Act, 2001

The Tanzanian Land Act came into force in 2001, and consists of both the Land Act No. 4 of 1999 and the Village Land Act No. 5 of 1999. These acts set out three land categories. Firstly, reserved land, which includes conservation areas such as game and forest reserves, and national parks, which covers around 40 % of the total land area in the United Republic of Tanzania. Secondly, village land, which recognizes the rights of villages to hold land collectively through village residents under customary law. This includes both communal land and individual land. Villages have rights to the land traditionally used by residents and which is considered within the ambit of village land under customary principles, including grazing, fallow and unoccu-pied land. Villages can demarcate land, register their rights and obtain certificates evidencing their rights. As of 2009, 10,397 villages were registered and 753 had obtained certificates ( Deininger and Byerlee, 2011 ). Thirdly and finally, general land consists of all other land, which is owned by the President of the United Republic of Tanzania, as Trustee of the People.

Seeds Act, 2003

This Act regulates the production and trade of all varieties of agricultural seeds and includes the necessary provisions for quality assurance. The law is implemented by the Crop Development Department at MAFSC and TOSCI. It sets out the procedures for dealing with seeds and includes a register of authorized producers and dealers.

Plant Breeders Act, 2012

The Plant Breeders Act regulates the protection of new varieties of plants in order to promote plant breeding activities that will stimulate, facilitate and improve agricultural research in the country through grants and the regulation of plant breeders’ rights and the establishment of a plant breeders’ rights office, and by entrusting the office to grant plant breeders’ rights. It is hoped this will boost the domestic production of hybrid seed, of which 90 % is currently imported.

Fer tilizer Act, 2009

This Act regulates and controls the quality of fertilizers, both imported and do-mestically produced. It established TFRA, which is responsible for coordinating the manufacture, trade, distribution, sale and use of fertilizers. Any agent involved in the fertilizer business must be registered with TFRA and dealers must obtain a licence from this authority. Additional supporting legislation followed in 2010 with the Public–Private Partnership Act.

The Atomic Energy Act, 2002

This Act was signed into force in 2003 and established TAEC and its related func-tions : to control the use of ionizing and non-ionizing radiation sources ; promote safe and peaceful uses of atomic energy and nuclear technology ; and to repeal the 1983 Protection from Radiation Act. Alongside TFDA, TAEC is empowered to establish a system designed to control radioactivity in foodstuffs. This system ensures that imports and exports of foodstuffs are screened or analysed for radioactive contami-nation, with an accompanying certificate issued by TAEC.

76


APPENDIX 3 :GROSS MARGIN PIGEON PEA ANALYSIS

Source : Mponda, O., Kidunda, B., Bennett, B. & Orr, A. ( 2013 ) A value chain analysis for pigeon pea in the southern regions

of Tanzania. Socioeconomics Discussion Paper Series, Series Paper No. 17. Nairobi : International Crops Research Institute

for the Semi-Arid Tropics.

[ REFERENCES ]

77

REFERENCES

Agricultural Extension and Advisory Services Worldwide ( 2011 ). Extension and advisory services in Tanzania. Available from http : / / www.worldwide-extension.org / africa / tanzania / s-tanzania.

Akibode, Sitou and Maredia, Mywish ( 2011 ) Global and Regional Trends in Production, Trade and Consumption of Food Legume Crops. E-book. Available from http : / / impact.cgiar.org / sites / default / files / images / Legumetrendsv2.pdf.

Alagh, Y.K. ( 2011 ). The Future of Indian Agriculture. Indian Economic Journal, Volume 59, Number 1, April–June, pp. 40–55.

Alliance for a Green Revolution in Africa ( 2010 ). Baseline Report for AGRA’s Interventions in Tanzania. Lusaka, Zambia.

Association for Strengthening Agricultural Research in Eastern and Central Africa / KIT ( 2014 ). Tanzania Seed Sector Assessment : A Participatory National Seed Sector Assessment for the Development of an Integrated Seed Sector Development Programme in Tanzania. Entebbe, Uganda.

Baltzer, K. and Hansen. H. ( 2011 ). Agricultural Input Subsidies in Sub-Saharan Africa : Evaluation Study 2011 / 2, DANIDA.

Deininger, K. and Byerlee, D. ( 2011 ). Rising Global Interest in Farmland : Can It Yield Sustainable and Equitable Benefits? Washington D.C. : World Bank.

Finscope ( 2013 ). Tanzania 2013. Available from http : / / www.fsdt.or.tz / finscope / sites / default / files / pdfs / FinScope-Brochure-2013.pdf.

Food and Agriculture Organization of the United Nations ( 2015 ). Statistics database. Available from http : / / www.fao.org / statistics / en / . Accessed 7 June 2015.

Food and Agriculture Organization of the United Nations ( 2006 ). Contract Farming : Status and Prospects for Tanzania, Final Report.

Gowda, C.L.L., Parthasarathy Rao, B. and Bhagavatula, S. ( 2009 ). Global trends in production and trade of major grain legumes. Paper presented at the International Conference on Grain Legumes : Quality Improvement, Value Addition and Trade, 14–16 February. Available from http : / / core.ac.uk / download / pdf / 12107152.pdf.

International Fund for Agricultural Development ( 2014 ). United Republic of Tanzania – Country Programme Evaluation ( final – unedited version ).

Katungi, E., Farrow. A., Chianu. J., Sperling. L., and Beebe. S. ( 2009 ). Common Bean in Eastern and Southern Africa : a Situation and Outlook Analysis. International Centre for Tropical Agriculture.

Knight, R., ed. ( 2000 ). Linking Research and Market Opportunities for Pulses in the 21st Century : Proceedings of the Third International Food Legumes Research Conference. Springer Publishing.

78


Monitoring African Food and Agricultural Policies ( 2013 ). Review of Food and Agricultural Policies in the United Republic of Tanzania 2005–2011. MAFAP Country Report Series. Rome : FAO.

Mponda, O., Kidunda, B., Bennett, B. & Orr, A. ( 2013 ) A value chain analysis for pigeon pea in the southern regions of Tanzania. Socioeconomics Discussion Paper Series, Series Paper No. 17. Nairobi : International Crops Research Institute for the Semi-Arid Tropics.

Murphy, S., Burch, D. and Clapp, J. ( 2012 ). Cereal secrets : The world’s largest grain traders and global agriculture. Oxfam Research Reports, August.

National Council of Applied Economic Research, India ( 2014 ). India’s Pulses Scenario. New Delhi.

Noealt Corporate Services ( 2013 ). Annual Strategy Dossier – 2013 – World’s 6 Leading Agriculture Equipment Manufacturers – Key Strategies, Plans, SWOT, Trends & Strategic Outlook.

Otunge, D. ( 2012 ). Seed trade environment in Tanzania. Presentation made at B4FA’s Media Fellowship Programme, Nigeria, 24–27 September.

Peter Best and Ken Jennison ( 2012 ). Special report : top feed companies 2011–2012, 31 August. WattAgNet.com. Available from http : / / www.wattagnet.com / articles / 13420-special-report-top-feed-companies-2011-2012.

Shand, Hope ( 2012 ). The big six : a profile of corporate power in seeds, agrochemi-cals, & biotech. The Heritage Farm Companion ( Summer ), pp. 10–15.

Sosulski, F. W. & Sosulski, K. ( 2005 ). Legume : Horticulture, Properties, and Processing. In Handbook of Food Science, Technology and Engineering, Volume 1, Y. H. Hui, ed. CRC Press.

SNV Tanzania Portfolio Team Lake Zone ( 2005 ). Chickpea Subsector Study for Export Market in Lake Zone : A Quick Scan, Draft 3.

Tata Africa Holdings ( Tanzania ) Ltd ( 2013 ). Production Focused Value Chain Study of Pigeon Pea, Green Gram and Chickpea in Tanzania.

United Nations Conference on Trade and Development ( various dates ). World Investment Report.

United Republic of Tanzania National Bureau of Statistics ( 2013 ). Tanzania in Figures 2012.

United States Agency for International Development ( 2010 ). Staple Foods Value Chain Analysis, Country Report – Tanzania. USAID.

United States Department of State ( 2014 ). Tanzania Invetsment Climate Statement

USA Dry Pea and Lentil Council ( 2010 ). Website. Available from http : / / www.pea-lentil. com.

World Economic Forum ( 2014 ). Global Competitiveness Report 2014-2015.

FSC is an independent, non-governmental, not for profit organization established to promote the responsible management of the world´s forests.

Printed by ITC Digital Printing Service on FSC paper, which is environmentally-friendly paper (without chlorine) using vegetable-based inks. The printed matter is recyclable.

Sponsored by :

In partnership with :

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


2016-2020

Date post:	21-Apr-2018
Category:	Documents
Upload:	lamtu
View:	221 times
Download:	4 times

united Republic Of Tanzania - Mit.go.tz Roadmap for Pulses.pdf · Layout: Jesús Alés ... EPZA...

Documents