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
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.
[ GLOBAL TRENDS IN THE PULSES MARKETS ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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.
[ GLOBAL TRENDS IN THE PULSES MARKETS ]
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
Source : ITC calculations based on United Nations Comtrade statistics.
24
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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%
Source : ITC calculations based on United Nations Comtrade statistics.
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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.
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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)
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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.
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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.
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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.
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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.
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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 )
[ TANZANIAN PRODUCTION OF PULSES AND INTEGRATION IN THE GLOBAL MARKET ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ THE PLAN OF ACTION ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ THE PLAN OF ACTION ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ THE PLAN OF ACTION ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
Kibaigwa Market Board Kusekwa Dalali, Manager
International Business and Trade Tanzania Initiative ( IBUTTI ) Deogratius Mbona, Executive
Selian Agriculture Research Institute ( SARI ) Philemon Mushi
MVIWATA Manyara Donald Laizer
Kibaigwa Market Board Kusekwa Dalali, Manager
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
[ UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES ]
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
UNITED REPUBLIC OF TANZANIA VALUE CHAIN ROADMAP FOR PULSES
2016-2020