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TANZANIA

SMALJOLDER WTOBACCO CURING EFFICIENCY PROJECT

NAY 1989

ABBREVIATIONS AND ACRONYMS

ACCS Assistant Commissioner for Crop ServicesCRDB Cooperatives and Rural Development BankCSS Crop Services SectionDADO District Agricultural Development OfficerDEO District Extension OfficerMALD Ministry of Agricultural and Livestock DevelopmentMEM Ministry of Energy and MineralsMFEA Ministry of Finance and Economic AffairsMNRT Ministry of Natural Resources and TourismNALERP National Agriculture and Livestock Extension

Rehabilitation ProjectPPMB Project Planning and Monitoring BureauRCSO Regional Crop Services OfficerSHTCA Southern Highlands Tobacco Growers AssociationSMS Subject Matter SpecialistTARECU Tabora Regional Cooperative UnionTAT Tobacco Authority of TanzaniaTCS Tobacco Curing SpecialistT & V System Training and Visit System of Agricultural ExtensionTTPMB Tanzania Tobacco Processing and Marketing BoardVEW Village Extension Worker

CURRENCY EQUIVALENTS

Currency Equivalents are Tanzanian Shillings (TSh)Rate as of June 1988TSh 90.0 = 1 US$1 TSh = US$O.O11

TANZANIAN FISCAL YEAR

July 1 - June 30

TABLE OF CONTENTS

Page

EXECUTIVE SUMMARY ............. i

I. THE PRODUCTION OF FLUE-CURED TOBACCO IN TANZANIA......... 1

Extension Services for Tobacco...s...........e.o........ 3Supply of Inputs ....... 4Marketing Arrangementsa ng............em e n ts... o.. .e. . 5Credit Arrangementsa n8oo.....oe m enot so....... o.... ee.... 6Existing Tobacco Curing Barns and Furnaces************** 6Fuelwood and Tobacco Curing u rooi ng...oo....o..o.o.o.... 9

II. PROPOSED MEASURES TO IMPROVE THE EFFICIENCY OFTOBACCO CURING .......... .... 12Introductiono .. ooooo....... ,ooooooooos 12Measures for Fuelwood Conservation.servati.... on.... o.. 13Barn Modifications. ... o...................o. ...... 13Barn V e n t i l a t i o n 14Furnace Retrofit.. oooootooooooe*t** 15Flue-Pipe and Chimney Systemo...o...s t em.............. 15

Improving Management of the Curing Processc*.e sso*...... 19Assessment of Impact of Proposed Measures..o............ 21

III. STRATEGY FOR PROPOSED DISSEMINATION PROJECTo.oo..oo....... 24Overview.........o.o...o..o......o............o...... 24Objetb js.oec t i v es.,o*.Oo..0*.000*o 25The Dissemination Strategyor a t e gy. .... ..... .... .... o 25Proposed Project Componentsm p o.. n e nt.s .. o ...... .o.. 29

Technical Assistance to Crop Services Sectionof MAALD....o .... ooo..o....o.o........ oo.... .... 29Training for Tobacco Extension Staff. a ff*..o........ 29Procurement and Distribution of Special Inputs...... 30Credit for Upgrading Bar n s 30

Project Implementationo........ ooo. oo... oo...o....... 31Role of MAADLD.. ... oo...o.oo..... ...... o.o.....o.. 31Role of TTPMB.oM....B... 31Credit Administrationo..oo.. .o.........o....... . 32Annual Implementation Planoo.**o...o.....o...,o.o..o 32Project Monitoring and Evaluation...................e 32

Schedule for Project Implementationo........o.e.e....... 33Project Cost Estimatesoo i m a t es. .. o o.o.. o. ooooo....... 34

IV. PROJECT BENEFITS, JUSTIFICATION, AND RISKS...........K.S.. 36Project Benefits....n e f i ts...... . .... o.....ooo........ 36

Fuelwood Savings...a v i n gsoo..o..oo.......o.e......e.. 36Increased Tobacco Leaf Output t p uto*9e*9eeo9o9...oo..o 36Total Savnso. v i n gso*ooo****oooooo 37

Project Justification .... . .............. . . . .*....... .... 39Financial Perspective. * * o .. . . . . . . . . . *. * * * * * * *.e 39Financial Rate of Return............................. 40Economic Perspective. . ** *.. . . . . . . . . .. . . . . .. .. .. 41Economic Rate of Return ...... .......... ...... ........ 42Sensitivity Analysis................................. 43

Project Risks.... 44

TABLES

1.1 Tanzania Flue-Cured Tobacco Production ........... , ............ 21.2 Barn Inventory of Top Tobacco Producing Districts#............. 71.3 1986/87 Production of Flue-Cured Tobacco and

Fuelwood Requireients. 444444404440444404444444444 4444444o444444 112.1 Estimates of Benefitso..........................................o 233.1 Breakdown of Project Target Group. ........ .......... .oo..o..o. 263.2 Tentative Schedule for Barn Modification by Districtooo.. o....4 343.3 Project Cost Estimates ........................................0 354.1 Project Benefit Analysis: With and Without Scenarioss.o e.....oo 374.2 Estimates of Annual Benefits from Projecto .................. 384.3 Fuelwood Savings Versus Production Costs....................... 394.4 Financial Cost of Fuelwoodo ......................o.............. 404.5 Farmers' Payback Schedule Per Barn.............................. . 414.6 Economic Value of Fuelwoods ............................. *....ooo o 414.7 Economic Values for Tobacco.................................... 424.8 Sensitivity Analysis of Project Economic Rate of Return..o..4.. 44

FIGURES

1 Traditional Medium Sized Growers' Barn a rn.o.oooooooooooo*.o 82 Grower's Medium Sized Barn. o.ooo.o.........o..o. o...oo..o.... 173 Low-Profile Barn (24 4)l6' x 1 6'x 13.o..............)..00 184 Wet- and Dry-Bulb Hygrr o m et..o.............o.. ooooo44444044. 205 A Guide for Successful Curing.................................o 28

ANNEXES

1 Terms of Reference for Tobacco Curing Specialistoo,.......... 462 Project Costs Estimates and Analysesoooool y se.o.o.ooo.oo.oo.s. 483 Barn Census and Inventory.4.....o4.4.4...o.. .o..ooooo.ooo.. .. 554 The Tobacco Curing Trials. ro.i aol....... o 444s44444 67

MAPS

IBRD 20998 Dissemination Project: Tabora RegionIBRD 20999 Dissemination Project: Iringa and ChunyaIBRD 20794 Tobacco Producing Areas of Tanzania

EXECUTIVE SUMKARY

About This Activity

Purpose

1. The purpose of this preinvestment study is to formulate atechnically and economically viable project to assist smallholder farmersin Tanzania to upgrade tobacco curing efficiency, thereby reducing postharvest losses (i.e., damages to tobacco during curing) and minimizingthe impact on the worsening fuelwood supply/demand imbalances in tobaccoproducing areas. The study has been conducted by the WorldBank/UNDP/Bilateral Aid Energy Management Assistance Program (ESMAP) incooperation with a Steering Committee on ESMAP activities which wasestablished by the Government of Tanzania and comprises representativesof the Ministries of Finance and Economic Affairs (MFEA), of Agricultureand Livestock Development (MALD), of Energy and Minerals (MEM), and ofNatural Resources and Tourism (MNRT). 1/

Background

2. In 1984, the joint UNDP/World Bank Energy Assessment Report onTanzania estimated that, in several regions of the country, there was agrowing gap between the level of fuelwood consumption and the sustainablesupply from the natural woodlands. 2/ The report noted that thefuelwood supply/demand imbalances were particularly acute in areassurrounding the main urban centers, and in the tobacco producingdistricts. A consensus developed between the Government of Tanzania andinterested multilateral and bilateral organizations that the increasingrate at which the country's natural woodland resources were beingdepleted for charcoal production and tobacco curing was among the mostpressing energy sector issues; hence, there was a need to formulate andimplement comprehensive strategies for both woodfuel supply developmentand demand management aspects.

3. In 1986, the Government's Steering Committee and ESMAP agreedon a program of technical assistance which would address three separate

1/ The ESMAP team comprised Mr. Amarquaye Armar (Energy Planner) asteam leader, Mr. Mohammed A. Wahid (Consultant-Tobacco CuringSpecialist), Ms. Deborah Hines (Consultant-Economist), and Messrs.A.S. Nawab, H. Megeri, A. Rajack (Field Assistants-Tobacco CuringTechnicians). The report was authored by Mr. Armar with secretarialsupport from Ms. Morrissa Young. The report was discussed with theGovernment in March 1989.

2/ "Tanzania: Issues and Options in the Energy Sector," Report No.4649-TA, November 1984.

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but complementary aspects of the woodfuels strategy. One activityfocused on a two-phased approach to examining Lte issues and options withrespect to woodfuel supply to the major urban centers of Dar es Salaam,Arusha, and Mwanza. The activity has led to the preparation by ESMAP ofa US$37.6 million project proposal which incorporates the development ofsustainable woodfuel supply schemes based on: (a) improving themanagement of the natural woodlands; and (b) intensifying village woodlotschemes in catchment areas serving the above urban centers and tobaccoproducing areas in the Tabora region. A second activity, the output ofwhich is this report, addresses preinvestment requirements leading to aproject to upgrade tobacco curing efficiency by smallholder farmers. Athird activity, which is ongoing, aims at applying remote sensing methodsto upgrade and update the information about biomass supply potential inthe critically affected woodlands. The end product will be SPOTsatellite image maps and overlays depicting the different types ofvegetation and biomass densities, and providing estimates of the relativelevels of biomass stocks in the natural woodlands surrounding the majorurban areas and the tobacco producing zones. It is envisaged that theoutputs would be used to design a more comprehensive biomass inventory inthe context of the proposed woodfuel supply development project. 3/

Scope of Study

4. This preinvestment study has been executed in two phases.During the first phase, which extended from September through November1987, an ESMAP Identification Mission visited Tanzania to review previousefforts by the erstwhile Tobacco Authority of Tanzania (TAT) to assistfarmers on tobacco curing efficiency aspects under the unsuccessful"Smallholders Tobacco Improvement Project. 4/ The ESMAP mission alsoexplored the option of substituting fuelwood with coal which is producedat the Ilima Colliery in a remote part of southern Tanzania. Thepreliminary investigations made it apparent that coal was not a practicalfuel option for the majority of smallholder farmers in the country. Themain potential beneficiaries of a coal substitution effort are likely tobe the 20 or more members of the Southern Highlands Tobacco Growers Asso-ciation (SHTGA), who own and cultivate relatively larger farms (about 100ha each). However, the SHTGA are already benefitting from a line of

3/ The UNDP/World Bank ESMAP Activity Completion Report No. 068/88,"Tanzania: Woodfuel/Forestry Supply Development Project," datedApril 4, 1988, incorporates measures and investments to augmentfuelwood supply for charcoal production and tobacco curing in theTabora region.

4/ The TAT's Smallholder Tobacco Improvement Project was entirelylocally funded. It was designed in part to implement measures toimprove curing practices, based on the report "Technical Package ofPractices to Improve the Efficiency of Fuelwood Use in the TobaccoIndustry of Tanzania," by M.A. Wahid (Tobacco Specialist), for theTobacco Authority of Tanzania, dated 1985 (updated in 1986).

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credit to rehabilitate their operations (i.e., part of an IDA financedTanzania Agricultural Export Crop Rehabilitation Project). Given thelimited ESMAP resources for this activity, it was more appropriate toconcentrate on the requirements of smallholder farmers.

5. Objectives. The findings of the identification mission led tothe conclusion that the primary focus of the activity would be onsmallholders, and also that a pilot demonstration project was a necessarystep to comprehensively address the following specific objectives of thepreinvestment study:

(a) identifying the key elements of a "technical package" toupgrade the efficiency of fuelwood use for tobacco curing bysmallholder farmers;

(b) preparing an inventory of existing barns by size/dimensions,type of furnace, configuration of the flue-pipe and chimneysystem etc., in the principal flue-cured tobacco producingvillages;

(c) obtaining quantitative assessments of the relative andincremental impacts of the application of the "technicalpackage" i.e., in terms of fuelwood savings and reduction incuring losses, etc.;

(d) defining the scope and requirements of an extension effort tosupport the dissemination of the "technical package" to farmersin the principal producing villages;

(e) demonstrating and explaining the different components of the"technical package," including the use of innovative aids suchas curing charts, newsletters, etc., and obtaining feedbackfrom smallholder farmers and extension agents;

(f) designing and field testing low-cost measures to structurallyupgrade existing barns, improve the combustion efficiency offurnaces, and improve the heat transfer efficiency of flue-pipes and chimneys; and

(g) combining the above elements of tobacco curing efficiencystrategy into a financially and economically viable dissemi-nation project which would be targeted at the more productivesegments of the flue-cured tobacco sector in Tanzania.

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6. The Pilot Demonstration Project. 5/ Accordingly, the mainassignment for the second phase involved curing trials at the village ofUfuluma in the Tabora district during the 1987/88 curing season i.e.,December 1987 through the end of May 1988, and other survey and fielddemonstration activities as follows: 6/

(a) Curing Trials. The aim was to establish, under fieldconditions in Tabora, the specific fuelwood consumption levelsin existing smallholder barns, and also to investigate therelative and incremental benefits (i.e., savings in fuelwoodand reduction in curing losses) that would be realized with theapplication of the main components of the "technicalpackage." The curing trials would therefore establish a betterquantitative basis for assessing the relative costs andbenefits associated with the proposed strategy;

(b) Barn Census. The aim was to conduct a survey of smallholderbarns in the top producing villages of the Tabora, Urambo,Iringa, and Chunya districts respectively, to establish an up-to-date inventory (i.e., by size of barn, type of furnace,configuration of flue-pipe and chimney systems) whichsubsequently has been used by ESMAP to estimate the size of theprospective target groups, and establish some guidelines forfuture monitoring and evaluation requirements; and

(c) Demonstrations and Workshops for Farmers. The aim was to begincreating greater awareness about the proposed measures forimproving the efficiency of tobacco curing, and to obtainfeedback from the farmers about specific aspects of theproposed "technical package". During the pilot project, twoworkshops were organized to demonstrate the construction andoperation of an improved slot-type furnace (i.e., the"Malakisi" furnace). Also, an exhibition was organized forover a thousand farmers during "Farmers' Day" (April 15, 1988)to demonstrate the use of the "Malakisi' furnace, to explainthe use of wet- and dry-bulb hygrometers to monitor the curingprocess, and to publicize the results of the curing trials. Anewsletter in Swahili language, "Habari Za Tumbaku", whichexplained the proposed measures, was also inaugurated onFarmers' Day.

5/ The ESMAP Field Director for the pilot demonstration project was Mr.Mohammed A. Wahid. His principal counterpart was Mr. C.O.Mwambanga, a District Subject Matter Specialist with the RegionalAgriculture Office in Tabora. The barns used in the curing trialsbelong to Mr. J. Mongono, a farmer in Ufuluma Village, TaboraDistrict.

6/ Refer to Annexes for details on and results of the curing trials,and barn census/inventory, respectively.

Structure of Report

7. The main text of this report is structured as follows. ChapterI reviews the origins and present structure of the flue-cured tobaccosector in Tanzania, and presents an assessment of the fuelwood supply anddemand situation in the four main tobacco producing districts. ChapterII reviews some shortcomings of existing tobacco barns and outlinesmeasures that need to be introduced as a "technical package" to improvethe efficiency of fuelwood use in tobacco curing by smallholders inTanzania. The chapter ends with an assessment of the potential benefitsof the proposed measures, based on the results achieved during the curingtrials. Chapter III defines the principal objectives and strategy fordisseminating the proposed "technical package" to the more productivetobacco farmers, and identifies the scope and components of a project totranslate the strategy into action over a six-year period, beginning in1989. The estimates of project costs are also presented in ChapterIII. The project justification in financial and eionomic terms ispresented in Chapter IV. Other details pertaining to the curing trials,the census of barns, guidelines for effective curing of tobacco, etc.,are presented in several annexes and a technical supplement to thereport.

Proposed Measures to Improve Tobacco Curing Efficiency

8. The inefficiency of tobacco curing by farmers in Tanzania canbe attributed to four factors:

(a) poor management and control of the curing process, particularlythe uneven loading of barns and the inadequate regulation ofhumidity levels inside the barns;

(b) the lack of proper furnaces or major deficiencies in the open-hearth furnaces that are used by some farmers, resulting ininefficient combustion;

(c) major deficiencies in the design and installation of flue-pipeand chimney systems that are vital for the effective exchangeof heat within the barn; and

(d) poor construction and maintenance of barns, including lack ofproper insulation and ventilation mechanisms on walls, therebyincreasing heat losses.

9. The "technical package" incorporates measures that have beensuccessfully tested during the ESMAP curing trials. The measures aredesigned to address the above deficiencies at least-cost, given thatincomes earned by smallholder tobacco farmers in Tanzania are stilllow. Because of scarcity of foreign currency in Tanzania, the "technical

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package" is also designed so that a minimum of imported materials andequipment is required for implementation. The "technical package"comprises the following two main components.

10. Upgrading Traditional Barns. This component covers barnmodification and improvement, and also includes retrofitting of existingopen-hearth furnaces with an improved slot-type furnace which has beenproven in use elsewhere in East Africa (in Kenya, Malawi, and Uganda).The 'Malakisi' furnace design, with some adaptations to improve perfor-mance, and incorporating materials which are available in Tanzania (i.e.,railway sleepers converted to furnace grate), has been selected. Ratherthan require the farmers to incur relatively high investments toconstruct improved barns, as was the case under TAT's Smallholder TobaccoImprovement Project, the "technical package" emphasizes a number ofspecific measures to: (i) improve the existing barns (i.e., replasteringand sealing cracks in the walls, rethatching roofs with reed grass,etc.); and (ii) improve the flue-pipe and chimney systems by graduallymoving from 11 inch to 8 inch diameter flue-pipes, and ensuring that inall cases, the chimneys extend above the roof level.

11. Improving Curing Methods. The other principal component of the"technical package," essentially would aim to upgrade farmer know-how andskills about the curing process. Emphasis has been placed on vitalaspects of the tobacco curing process such as optimum loading of thebarns, and use of wet- and dry-bulb hygrometers to facilitate themonitoring and control of humidity levels in the barn. The entireprocess has been encoded into a visual aid which, judging by feedbackfrom farmers during the workshops under the pilot demonstration project,will be a very useful tool for the dissemination phase. As indicatedabove, a field assessment of the relative impact of the "technicalpackage" on improving tobacco curing efficiency was made during thecuring trials. The results are shown in Table 1 below.

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Table 1: SUMMARY OF RESULTS OF CURING TRIALS 8/

Specific Incremental Yield of

Barn Type Fuelwood Consumption b/ Cured Tobacco c/

Traditional Barns

cured by farmers (control) 20.1 195

Traditional Barns with

Improved Curing Methods 15.3 233

Upgraded Barns with

Improved Curing Methods 9.7 290

a/ For medium-sized barns of 16 ft. x 16 ft. x 14 ft. dimensions,

b/ In m3 stacked wood per tonne of cured tobacco.

ci Based on 195 kg. of tobacco leaf produced per curing cycle in

traditional barns.

Source: ESMAP Pilot Project.

Rationale for Dissemination of the "Technical Package"

12. From the broader perspective of national economic recovery in

Tanzania, the proposed dissemination of the "technical package" for

tobacco curing efficiency will make very significant contributions

towards reversing the decline in export crop production. The overall

developmental objectives for disseminating the "technical package"

include: (a) reinforcing Tanzania's efforts to rehabilitate agricultural

export crop production, with particular focus on addressing current

inefficiencies associated with post harvest processing (curing)

activities in the tobacco sector; (b) supplementing efforts in the

country to alleviate the growing pressure on natural woodlands for the

supply of fuelwood, especially in tobacco producing areas; (c) supporting

ongoing efforts in the country to rehabilitate and strengthen agricul-

tural extension services and infrastructure; and (d) enhancing the

economic viability of the tobacco sector.

13. From the perspective of increasing the productivity of the

tobacco sector in Tanzania, the proposed project, which in the medium

term, will be the main framework for disseminating the "technical

package," will contribute substantively to reducing post harvest losses,

particularly losses due to leaf damage during curing (e.g., scalding,

excessive drying, etc.). Presently, post harvest losses, particularly

curing losses, are known to account for the loss of between 35-40% of the

tobacco harvests. By promoting greater efficiency in tobacco curing, the

leaf output per cure would increase by between 20-50% as indicated in

Table 1 above, and leaf quality would also improve. The result would be

much higher financial returns to the farmers than is presently the case;

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at the 1987/88 producer price of TSh75.6 per kg., farmers using medium-sized barns would realize between TShl4,000-36,000 in additional earningsper barn for the season.

14. From the energy perspective, the most significant contributionof the proposed project is the alleviation of fuelwood supply/demanddeficits in the tobacco producing districts. The results of the curingtrials demonstrate that the potential is good for reducing by 20-50% thespecific fuelwood consumption for tobacco curing. This again would leadto higher financial returns to smallholder farmers; during the 1987/88curing seasoy, farmers in the Tabora region paid an average of aboutTSh260 per m (stacked) for fuelwood, and hence could have saved betweenTShl,200-2,600 by adopting the "technical package." From the viewpointof controlling deforestation, the greater efficiency of tobacco curingwould reduce the pressure on accessible woodlands in tobacco curingareas, thereby facilitating the introduction of other measures andprograms to effect a transition to levels of woodland exploitation thatare within sustainable yield limits, as is envisaged under the proposedwoodfuel supply development project.

15. The need for improving the efficiency of tobacco curing byfarmers in Tanzania was first given prominence in 1983 at the Governmentlevel during the review of rehabilitation requirements and priorities forexport crops (i.e., the Export Crop Rehabilitation Packages). Despiteits failure for lack of funds, overemphasis on rebuilding of barns, andinadequate organizational support, the TAT initiative to promote tobaccocuring efficiency measures under the "Smallholder Tobacco ImprovementProject" helped to increase awareness within the Government and amongtobacco farmers about the potential to reduce the impact of tobaccocuring on depletion of the natural woodlands.

The Proposed Project

16. As a result of the ESMAP pilot demonstration project, a strongimpetus has been created for disseminating nationwide the "technicalpackage" of measures to upgrade the energy efficiency of tobaccocuring. To do so effectively requires systematic planning and executionof a dissemination strategy which would combine activities to: (i) createand maintain awareness among large numbers of tobacco farmers about thebenefits of the tobacco curing efficiency program; (ii) mobilize andtrain a core group of Subject Matter Specialists (SMSs) to lead thedissemination effort; and (iii) develop and strengthen the necessaryhuman resources and infrastructure to ensure that the disseminationeffort evolves, over the medium term, into a self-sustaining and fullyintegrated component of the agricultural extension systems servingtobacco producing areas.

Project Design

17. The proposed smallholder tobacco curing efficiency project isbased on the following principles that underlie the training and visit (T

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& V) system of agricultural extension. First, the project will aim toincrease awareness among tobacco farmers about the benefits of adoptingthe "technical package," both in terms of the fuelwood savings and theincreased quality and quantity of cured leaf output (i.e., reduction incuring losses). To achieve a strong demonstration effect, the projectwill put emphasis on mobilizing relatively small groups of farmers toserve as "role models" or "contact groups" in the target area.

18. Second, the project, through the provision of .direct technicalassistance and training, would aim to develop a strong cadre of SMSs whowould gain more specialized knowledge and skills relating to extensionfor tobacco curing and related post-harvest activities (e.g., grading).The cadre of SMSs would be deployed in direct support of the RegionalCrop Services Officers (RCSO) responsible for the Tabora, Urambo, Chunya,and Iringa districts respectively, thereby ensuring their full inte-gration into the existing extension systems. The extension program ontobacco curing efficiency will emphasize the use of workshops, exhibi-tions, and regularly scheduled field visits to monitor curing activities,and it is envisaged that contact groups will be used as the primaryagents for disseminating the "technical package" and transferring know-how about improved curing techniques to other farmers at the ward andvillage levels (i.e., through existing farmer groups.

19. Third, the project will aim to introduce a "technical package"that will be simple and practical from a farmer's perspective. The feed-back received from farmers who participated in the curing trials andspecial demonstrations, workshops, and exhibitions on "Farmers' Day"indicate that the extension program in the proposed project should incor-porate: (a) random surveys and interviews to test farmer awareness aboutthe links between inefficient curing methods, curing losses, and growingdifficulties in obtaining fuelwood supplies; (b) continuation of thepublication in Swahili of the newsletter ("Habari Za Tumbaku");(c) regular pre-season workshops on the construction, operation andmaintenance of the improved slot-type 'Malakisi' furnace; and (d) demon-strations, displays, and exhibitions at special functions such as theannual Farmers' Day celebrations, which would highlight important aspectsof the "technical package," and contrast the impact achieved with the"technical package" with that using the "business-as-usual" or tradi-tional methods.

Project Components

20. The above dissemination strategy translates into a threecomponent project design covering some 50 villages in the Tabora, Urambo,Chunya, and Iringa districts respectively.

(a) a technical assistance component which would strengthen theCrop Services Section of the MALD and the Regional CropServices Officers in tobacco producing areas (especially inTabora) to implement the project. Under this component,project related training would be provided to SMSs covering

tobacco producing districts. The technical assistance wouldprimarily be in the form of an expatriate Tobacco CuringSpecialist (TCS) who would be deployed on a full-time basis indirect support of the RCSOs and SMSs serving the tobaccoproducing districts;

(b) a specialized inputs production, procurement, and distributioncomponent under which the TTPMB would on behalf of the MALD,coordinate arrangements to ensure that participating farmerswould be supplied in a timely fashion with all key inputsrequired for the tobacco curing efficiency improvementprogram. Funds would be provided under the proposed project toprocure machine tools for the TTPMB's factories at Morogoro andUrambo (i.e., for fabrication of flue-pipes, etc.), and forlocal production of wooden shutters/vents and iron grates forfurnaces (i.e., conversion of old railway lines). Wherenecessary to ensure cost competitiveness, the TTPMB wouldorganize local tenders for the production of the inputs, andfor the transportation of such inputs to the districts; and

(c) a credit component under which the proposed project wouldcollaborate with the Cooperative and Rural Development Bank ofTanzania (CRDB) to ensure timely provision of credit (prefer-ably on a three-year repayment schedule) to enable partici-pating farmers to bear the costs of upgrading their barns andfurnaces.

21. The project related training activities would be supplementaryto the training program under the ongoing National Agricultural andLivestock Extension Rehabilitation Project (NALERP) which is financedjointly by the IDA and the African Development Bank (ADB). Under theproposed project, study tours would be arranged for the SMSs and theRCSOs to visit organizations in other developing countries such asMalawi, Zimbabwe, and possibly India, where major advances to improvetobacco curing efficiency have been made. The TCS would play a leadingrole in developing training materials to be used locally by SMSs (i.e.,in monthly workshops or refresher courses) and other field extensionpersonnel (i.e., in-service workshops for Divisional Extension Officersand Village Extension Workers).

Project Implementation

22. The proposed project would be implemented by the Crop ServicesSection of the MALD on behalf of the Government of Tanzania. The Assis-tant Commissioner for Crop Services (ACCS) would be responsible for theoverall supervision of the project. The day-to-day responsibilities forimplementing the proposed project would be assigned as follows:

(a) the Regional Crop Services Officers in the Tabora and SouthernHighlands Zones would be the principal counterparts for theTCS. It is expected that the TCS would devote about 80% of his

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services in the Tabora and Urambo districts, and 20% in theSouthern Highlands area. Accordingly, the TCS would be basedin Tabora, and operate out of the offices of the RCSO for theTabora region. For field extension activities, the principalcounterparts for the TCS would be the District SMSs for Tabora,Urambo, Chunya, and Iringa respectively, and the Regional SMSfor Industrial Crops for Tabora;

(b) the TTPMB would be responsible on behalf of the MALD forcoordinating the production, procurement, and distribution ofkey inputs required by participating farmers for the tobaccocuring efficiency program. It is expected that with theretooling of the TTPMB factories at Morogoro and Uramborespectively, the TTPMB would be able to produce 8" diameterflue-pipes, and also convert the old railway lines into irongrates for furnace retrofits. However, for other items such asthe fabrication of cast iron flue-pipe sections to be insertedinto furnace outlets, the production of wooden shutters forbarn ventilation, etc., the TTPMB would arrange local tenders;and

(c) the CRDB would be responsible for administering credit to thefarmers through the Farmer's Societies. For this, it isexpected that the CRDB would retain arrangements similar tothose established recently under an ongoing IDA financedTanzania Agricultural Export Rehabilitation Project (Credit1981-TA).

23. The above assignments would be compatible with arrangementsmade by MALD for other major extension projects in the same regions,particularly the National Agricultural and Livestock ExtensionRehabilitation Project (NALERP) in the Tabora region. However, therewill be the need during project appraisal by prospective donor/fundingagencies to ascertain once more that the proposed organizationalstructure for the project would be a workable one and would notcritically hamper the achievement of results with respect to tobaccocuring efficiency improvements.

24. The implementation of the project will be monitored andevaluated by the Project Planning and Monitoring Bureau (PPMB) of theMALD. At least two such evaluations have been programmed into theproject schedule; the first would be at the end of the second season ofproject implementation, and the second at the end of the fifth season ofthe six-year project.

Project Costs

25. The estimated total costs of the proposed project is TSh340million, including price and physical contingencies. About 47% of thetotal project cost will be for capital expenditures which will beincurred for the procurement of vehicles, equipment (e.g., machine tools)

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for the TTPMB factories at Morogoro and Urambo, and materials for thefabrication of key inputs required by farmers to modify and upgrade 6,810barns and furnaces. The total cost of the project is equivalent toUS$3.6 million, and about 22% of the total cost will be in foreigncurrency.

Project Benefits

26. The proposed project to improve tobacco curing efficiency bysmallholder farmers in Tanzania will yield direct benefits in tworespects: (a) increased outputs of cured tobacco leaf as a result ofsignificant reduction in curing losses with improved management of thecuring process; and (b) saving in fuelwood as a result of reduction inspecific fuelwood consumption levels. Because of shorter curing cycles,labor which would otherwise be "tied up" with curing would be availablefor redeployment to other tasks such as picking and tying up green leavesfor curing. This is considered to be an indirect benefit. An additionalbenefit would be the higher quality of cured tobacco leaves, but for thepurposes of this analysis, such improvements have been counted as anindirect benefit.

27. Over the life of the project, the total benefits would cumula-tively amount to: (a) about 206,000 m3 of fuelwood savings or about 3,400ha of natural woodlands which would be saved from clearfelling; and(b) the reduction in curing losses, yielding about 8,100 tonnes ofadditional cured leaf for export. In financial terms, the total value ofthe benefits (in constant 1988 TSh) for the project's lifetime would beon the order of TSh665 million: TSh54 million due to fuelwood savings,and TSh6ll million due to increased output of cured tobacco.

Project Justification

28. In financial terms, the project is justified from the perspec-tive of participating farmers. Each farmer would realize full payback intwo years on his investments associated with the "technical package."For the project overall, the financial rate of return is slightly over23% due to the additional costs associated with project management andextension services.

29. The economic rate of return for the project, indicatingincremental returns to the country, is estimated to be 32.5%, which ishighly favorable. This indicates ample justification for the projectwhich would convert relatively small investments in tobacco curingefficiency measures into large fuelwood savings and significant reductionin curing losses. The results of the sensitivity analyses confirms thatthe results of the economic rate of return analyses are also robust(Table 2).

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Table 2: SENSITIVITY ANALYSIS OF PROJECT ECONOMIC RATE OF RETURN

Rate of Return

Scenario (%)

Base Case 32.5

Decrease Export Price of Tobacco

- By 20% 27.7- By 40% 22.5

Decrease Project Benefits a/

- By 20% 2405- By 40% 15.1

Decrease Project Benefits and Increase Project Costs b/

- Both by 10% 25.3- Both by 20% 18.5

Decrease Total Number of Barns Retrofitted

- By 40% 20.7

a/ Value of additional tobacco leaf, and of fuelwood saved.

b/ Total project costs Inciuding extension support.

Project Financing

30. The Government requires financing from external multilateral

and/or bilateral sources to implement the proposed project. The ongoing

NALERP has already begun with the rehabilitation of extension services in

the Tabora region, and hence provides funds for some activities and

facilities which are similar to those defined under the proposed project

(e.g., training and provision of vehicles for SMSs and other extension

personnel). Also it is envisaged that the CRDB may not require external

financing to maintain a line of credit for participating farmers.

31. The additional funds required for the proposed project would

most likely amount to about US$2.2 million of the estimated

US$3.6 million total cost of the project. Of this amount, about US$0.7

million would be required to finance the technical assistance component,

and US$1.5 million to finance the procurement of machine tools and the

materials and the production and distribution of the key inputs required

for modifying the curing barns. The exact financing arrangements for the

proposed project would need to be determined through direct negotiations

between prospective donors and the Government, taking into account the

possibility for cofinancing with the NALERP.

Project Risks

32. The major risks associated with the proposed project rest

primarily with the failure to achieve expected benefits within the six

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year time frame. Delays or failure to reach the expected savings targetswould most likely result from: (a) failure to generate interest in theproject resulting in low farmer participation; (b) lower than envisionedsavings in fuelwood and curing losses resulting from discrepanciesbetween test conditions and actual on-farm implementation of the curingtechniques; (c) farmers failing to follow technical advice or implementnew techniques properly. The above risks have been greatly minimizedthrough the successful completion of the pilot project. This project canbe considered as a second phase that has incorporated lessons learnedfrom a first phase. Particular attention should nevertheless be paidduring the next step of project appraisal to reviewing the proposedorganizational set-up for the project. It is especially critical thatthe organizational framework for project implementation should be fullycompatible with the revamped system for agricultural extension in thecountry. Also, clear-cut arrangements should be made to coordinateproposed project activities in the Tabora and Urambo districts with thoseof the IDA and ADB financed NALERP in the Tabora region.

I. THE PRODUCTION OF FLUE-CURED TOBACCO IN TANZANIA

Introduction

1.1 Tobacco is one of Tanzania's major agricultural export crops.It is a principal target of the Government's ongoing export croprehabilitation program which, in large part, is supported by the IDAfinanced Tanzania Agricultural Export Crop Rehabilitation Project. 7/ Theexport crop rehabilitation program was designed to reverse the preci-pitous decline in tobacco production from a peak of 15,000 tonnes in1974/75, to a low of 9,000 tonnes in 1983/84. In this chapter, theevolution of flue-cured (Virginia) tobacco production in Tanzania intothe present structure with respect to the cultivation, processing, andmarketing of flue-cured tobacco is reviewed. The chapter concludes withan assessment of current flue-cured tobacco production, and fuelwoodsupply and demand for curing in the principal tobacco producingdistricts.

Background

1.2 In Tanzania, the administrative regions of Iringa, Tabora, andMbeya are the principal areas for flue-cured tobacco production. Theorigin of the industry is in Iringa, where in the early 1940s, settlersfrom Greece, and some religious missions established relatively largeplantations. Cultivation of flue-cured tobacco spread to smallholderfarmers, and by 1963, significant numbers of smallholder farmers hadorganized themselves into village cooperatives and settlement schemes tocultivate flue-cured tobacco. 8/ In the Tabora region, flue-curedtobacco production was introduced on a large scale to smallholder farmersin 1957 after the collapse of a major Groundnut Scheme that had beeninitiated by colonial authorities. During the same period, efforts weremade in the Mbeya region (mainly the Chunya district) to establish flue-cured tobacco as a cash crop for smallholder farmers. Eventually,production spread to other districts in the Mbeya region, although not aswidespread as has occurred in the Tabora and Iringa regions. Thedistribution of flue-cured tobacco producing areas relative to those forthe production of the fire-cured and burley (air-cured) varieties oftobacco is shown on IBRD Map 20794.

7/ "Tanzania Agricultural Export Rehabilitation Project," StaffAppraisal Report No. 6958-TA, Southern Africa Department, WorldBank, March 1988.

8/ "The 'Success Story' of Peasant Tobacco Production in Tanzania," byJ. Boesen and A.T. Mohele, Publication No. 2, Center for DevelopmentResearch, Scandinavian Institute of African Studies, 1979.

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1.3 In Tanzania today, flue-cured production is dominated bysmallholder farmers who account for about 90% of annual output. Theremaining 10% of the output is produced by large scale farms located inthe Iringa district. These larger farms are owned and cultivated by some20 farmers, most of whom are Greek settlers, and belong to the SouthernHighlands Tobacco Growers Association (SHTGA). Up to 75% of flue-curedtobacco production is obtained from the Tabora region; and between 20-25%from the Southern Highland Zone (i.e., Iringa and Mbeya regions). Themost productive areas from the standpoint of smallholder farmers are infour districts; Tabora and Urambo in the Tabora Region, and Iringa andChunya in the Southern Highland Zone.

Table 1.1: TANZANIA FLUE-CURED TOBACCO PRODUCTION

MARKETING YEAR AREA PRODUCTION YIELD(ha) (tonnes) (kg/ha)

1973/74 16,264 10,278 6321974/75 20,024 15,292 7641975/76 20,447 11,939 5841976/77 19,863 14,229 716197?/78 21,542 14,670 6811978/79 24,565 14,403 5861979/80 25,248 13,005 5151980/8 23,006 12,972 5641981/82 22,239 12,164 5471982/83 14,511 9,579 6601983/84 15,847 9,007 5681984/85 20,346 10,720 5271985/86 16,250 12,113 733

Source: TTPMB

1.4 Statistics on the total number of active smallholder tobaccofarmers are not reliable; estimates range from 20,000 to 50,000. Forexample, although some 150 villages in the Tabora region produce tobacco,90% of the crop originates from about 100 villages. During the 1987/88season, an estimated 15,000 farmers in the region were organized into 189Primary Societies; 106 serving the Tabora district, and 73 the Urambodistrict. The average size of tobacco farms is between 0.4 to 0.6hectares, but the more successful smallholder farmers cultivate over twohectares. Productivity is low; most cultivation is by hand tools andyields of cured tobacco per hectare planted are reported to be of theorder of 450-700 kgs., compared to about 1,000 kg/ha in neighboringcountries such as Malawi and Kenya, where smallholder production is alsoimportant. One factor in the low yields is the high post harvest losses(i.e., curing losses and handling/baling losses from the barns to themarketing centers). It is estimated that post harvest losses are on

average 35-40% of the harvested crop. 9/ Other losses in the fieldthrough poor crop husbandry are equally high, about 25-30%. A majorcootributing factor to the high curing losses is that the farmers havevery rudimentary knowledge of curing principles, and most barns arestructurally in very bad condition.

1.5 Major constraints for flue-cured tobacco production by thesmallholder farmers are well documented. 10/ They include lack ofproducer price incentives, the high costs of inputs and recurringdisruptions in the supply of key inputs for production (i.e., farmimplements, fertilizer, spare parts, etc.); poor extension support; andregional shortages and/or difficulties in obtaining fuelwood for curingtobacco. The ongoing export crop rehabilitation program, which issupported by the IDA Tanzania Agricultural Export Crop RehabilitationCredit, is designed to address some of these constraints. A number ofmajor reforms have recently been introduced by the Government to supportthe tobacco industry, including higher producer prices for flue-curedtobacco, and a major restructuring of agricultural extension services, asreviewed below.

Extension Services for Tobacco

1.6 Prior to 1984, a separate extension service for tobacco wasmaintained by the TAT. As part of a major restructuring of agriculturalextension services nationwide, all tobacco extension services were mergedunder the direct supervision of the Assistant Commissioner of Agriculture(Extension Services) in the Ministry of Agriculture and Livestock Devel-opment. The extension services are based on the Training and Visit (T &V) system, which is coordinated at the regional and district levels byRegional Agricultural Development Officers (RADOs) and District Agricul-tural Development Officers (DADOs), respectively. Crop specificextension support is provided by Subject Matter Specialists (SMS), alsobased at the regional and district levels. At the ward level, theservices are coordinated by Agricultural Field Officers, who in turnsupervise extension workers assigned to the villages.

1.7 The existing extension system is not effectively dealing withtobacco production, especially the tobacco curing aspects of post harvest

9/ Post harvest crop losses or spoilage are normally due to impropercuring; poor storage conditions on the farms, at baling centers, andat transport terminals; improper conditioning for packing and inade-quate presses for baling.

10/ Refer to "Export Crop Packages - National Tobacco Program." Reportof the Agricultural Planning and Marketing Division, Ministry ofAgriculture and Livestock Development (December 1984); see also"Annual Review of Tobacco by the Marketing Development Bureau,Ministry of Agriculture and Livestock (August 1986).

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treatment of tobacco. Some factors underlying the poor performance ofextension support for tobacco can be discerned as follows. First,because of logistical constraints, the coverage of extension workers intobacco producing villages is thin. The practice whereby each extensionworker is required to cover all food and cash crops grown in a given areaalso dilutes the impact of tobacco extension efforts. In the Taboraregion, for example, some 110 extension workers were deployed during the1987/88 season. Of these, 41 were assigned to villages in the Taboradistrict, and 57 to the Urambo district. Each extension worker had tocover tobacco and maize farming activities. Second, support in terms ofmaterial and information on tobacco production is weak. There are onlythree SMSs serving the region, and although they each have someexperience with tobacco agronomy, none has had any specific training orexperience in tobacco curing activities such as barn and furnaceconstruction and maintenance, and techniques for loading barns andmanaging the curing process. Third, although some training on tobacco isprovided to extension workers as part of general agricultural certificatecourses by the Ministry of Agriculture Training Institute (MATI), tobaccocuring techniques are not covered. The Tumbi Agricultural ResearchStation has also severely curtailed its tobacco research and demon-stration activities, and hence is unable to effectively support theextension effort. The local expertise on tobacco curing is currentlylimited to a few personnel within the TTPMB.

1.8 The Agricultural Extension Systems serving the four principeltobacco growing districts are being overhauled and strengthened byexternally funded projects: the Tabora and Urambo districts will becovered by the IDA and ADB financed National Agricultural and LivestockRehabilitation Project (NALERP); and the Iringa and Chunga districts bythe IFAD financed Southern Highlands Food Support Project.

Supply of Inputs

1.9 The main inputs for tobacco production are the seeds,fertilizer, insecticides, fuelwood, and the flue-pipes. The principalinputs for tobacco curing (i.e., fuelwood and the flue-pipes) areprocured by farmers with direct assistance from the Cooperative Unionsand TTPMB as follows. For fuelwood, the Cooperative Unions providetransportation in the form of tractor-trailers or trucks as discussedbelow (para 1.20). The TTPMB produces the flue-pipes at two locations;the main factory is at Morogora, and a second machine tool factory is atUrambo. The TTPMB fabricates the fluepipes using imported 22" gauge ironsheets and delivers the flue-pipes by truck to Cooperative Unions andPrimary Societies. Currently, the TTPMB's machine tools are fairly oldand need to be overhauled and/or replaced. The TTPMB plant at Morogorois well equipped to handle specialized tasks associated with the proposedproject, particularly the cutting of old railway lines for use as gratesin the "Malakisi" slot-type furnaces (para 2.12).

Marketing Arrangements

1.10 Until 1976, all flue-cured tobacco in Tanzania was purchasedand transported to the processing factory in Morogoro by the CooperativeUnions. However, as a result of sharply rising costs which was attri-buted to inefficient marketing, the cooperatives were dissolved in 1976and replaced by the Tobacco Authority of Tanzania (TAT). The TAT wasgiven the responsibility of advising, supervising, and regulating alldevelopment of the tobacco industry in Tanzania, and performing allactivities pertaining to extension, procurement and distribution ofinputs, and transportation, processing and marketing of cured leaf.

1.11 By 1984, it had become apparent that the dissolution of thecooperatives had not solved the problem of rising marketing costs, andhence the government decided to reintroduce the cooperatives. TheRegional Cooperative Unions in Tabora, Mbeya (Chunya), and Iringacurrently handle all tobacco related procurement activities; supply ofinputs and marketing of flue-cured tobacco produced in the Tabora region,for example, is controlled by the Tabora Regional Cooperative Union(TARECU). In 1985, the government replaced TAT with the TanzanianTobacco Processing and Marketing Board (TTPMB), whose activities werefurther restricted to processing cured tobacco leaves at the Morogorofactory and marketing all flue-cured tobacco to domestic and inter-national markets. About two-thirds of the production is exported and theremainder is sold to two domestic cigarette manufacturers. ll/

1.12 During the purchasing season, running from March to August,farmers place their tobacco in bales of 21 to 100 kilos before it isdelivered to sales floors or marketing centers for sale. 12/ Thisgrading and baling takes place at village baling sheds operated by thePrimary Societies. Two controllers are responsible for the supervisionof grading and baling activities (i.e., an extension worker and a PrimarySociety member). The Primary Society sells the tobacco on behalf of thefarmers to the Cooperative Union at the Government announced price. 13/

11/ The domestic cigarette manufacturers currently pay a 20% premiumabove the export prices for the tobacco.

12/ After curing, flue-cured tobacco is graded into 12-16 standardgrades by individual farmers, tied into hands and finally pressedinto bales of 70/80 Kgs with tar-lined (Bituminized) paper andhessian cloth.

13/ The Cooperative Unions buy tobacco from farmers through the PrimarySocieties at GOT announced producer prices. TTPMB pays the unions"into-store'@ prices for the tobacco, which includes the producerprices and agreed costs for transporting tobacco from the villagebaling center to the marketing center.

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Credit Arrangements

1.13 Tobacco farmers annually receive production inputs through acredit account with their primary society. The inputs are purchased bythe Cooperative Union with credit obtained from the Cooperative and RuralDevelopment Bank (CRDB) and delivered to the primary society. 14/ TheCRDB credit to the cooperatives also covers their requirements forpurchasing and handling the crop until delivered to TTPMB. Inputsrequiring foreign exchange are purchased by the TTPMB and delivered tothe cooperative unions. TTPMB receives credit from the National Bank ofCommerce to cover its operating costs including the costs of purchasingtobacco from the cooperative unions.

1.14 The dual source of credit for producing and marketing tobaccohas contributed to higher credit costs than necessary. This arises whenthere is a delay between the sale of tobacco to TTPMB and payments to thecooperatives or a delay in the cooperatives clearing their overdraft withCRDB. This is said to occur sometimes due to administrative delays atthe primary societies in updating farmers' accounts and paying forcrops. The payment to farmers is the net value of their crop afterdeducting the input credit received, their share of primary society costsand levy, and their share of cooperative union costs and levy.

Existing Tobacco Curing Barns and Furnaces

1.15 The barn census conducted by ESMAP has revealed considerablevariations in the size, materials, and layout of existing tobacco barnsin the four main producing districts. The barn inventory produced duringthe pilot demonstration project is shown in Table 1.2 below. Most small-holder farmers use the small-sized barns with dimensions of 12'x12'x12'or smaller; or medium-sized barns with dimensions of 16'x16'x14'. A fewwho participated in the TAT "Smallholder Tobacco Improvement Project"have constructed larger "Low Profile" barns with dimensions of24'x16'x13'. Most of the large-scale farmers of the SHTGA use largerbarns, with dimensions of either 20'x20'x20', or 24'x16'x20'.

1.16 Most medium-sized smallholder barns are made with mud brickwalls, usually 9 to 12 inches thick (23-30 cms.). The small-sized barnsare generally in worse shape, and have walls which are built of polesthat are firmly planted in the ground, strapped together with tree barktwine, and sealed in mud (Figure 1). The roofs in both small- andmedium-sized barns have a frame made out of local poles (Brachystegia!.), and thatched with reed grass (Hyparrhenia filipendula).

14/ On behalf of farmers, the Cooperative Unions negotiate input loansfrom the Cooperative and Rural Development Bank (CRDB) and ensuretheir reimbursement during the crop's marketing season. Input loansare recovered by deductions from proceeds of each grower at the timehe sells his tobacco and are remitted to the CRDB.

1.17 The furnaces and flue-pipe systems also vary considerably amongfarmers. Typically, each barn is fitted with one open-hearth furnace,which is located either externally or partially embedded in the barnwall. The furnace is usually built of brick and mud, consists of wallswhich are 10-12 inches thick, and have an arched top. Most furnaces areapproximately four feet long, and about 2.5 feet high. None of thefurnaces surveyed had an ash pit or grate.

1.18 One of the major disadvantages of open-furnaces, in addition tohigh radiation heat losses, is that, depending on the direction of theprevailing wind, the flames can be sucked out of the furnace, resultingin heavier heat losses. When the wind blows directly into the furnace,burning is rapid and uncontrolled, and results in a carry-over of ashinto the flue-pipes. Relatively simple changes such as the use offurnace doors, could force air to pass through the fire bed, control airentry into the furnace, and reduce heat losses. Further details aboutmodifications in the barns and furnaces to improve overall efficiency offuelwood are discussed in the next chapter.

Table 1,2: BARN INVENTORY OF TOP TOBACCO PRODUCING DISTRICTS

NUMBER NUMBER NUMBEROF OF OF

REGION DISTRICT WARDS VILLAGES a/ FARMERS 12x12 16x16 16x20 24x16x13 b/ 20x20 24x16x20A B

Tabora Tabora 16 15 12 7,630 6,095 2,827 566 5Urambo 5 5 7 2,556 4,385 2,765 954 --

Iringa Iringa 2 2 4 1,885 520 253 332 -- 475 c/ 66Mbeya Chunya 9 4 5 3,606 5,661 379 -- 2 -- --

Total 32 26 28 15,677 16,661 6,224 1,852 2 475 66

a/ Group A villages produced over 100,000 kg cured tobacco in 1984/85 and 1985/86 seasons; andGroup B villages, between 50,000-100,000 kg.

b/ Special "Low Profilet barns established durlng pilot TAT project.c/ Large barns operated by farmers in the SHTGA.

Source: ESMAP Census (1988); Annex 2.

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Figure 1: TRADITIONAL MEDIUM SIZED GROWERS' BARN

Thatched roof

Either poston I or 2 Wall of mud and buh pols

Fuheood -

FRONT

Zhimney,

Mud joints (Circular)

Opening In theppeswall for fumjye

Intemai furnace

FLUE PIPES LAYOUT

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Fuelwood and Tobacco Curing

1.19 The tobacco industry in Tanzania relies on wood for a varietyof purposes, the most important being as an energy source for curingtobacco. Relatively small but significant amounts of wood in the form ofpoles and sticks are used in constructing the barns.

1.20 Fuelwood requirements for tobacco curing have been identifiedas one of the principal causes of deforestation in the Tabora and Iringaregions, but the full extent of the fuelwood supply/demand imbalances ineach of the four main tobacco districts, and the adverse environmentalimpact of tobacco curing activity is not well documented. 15/ However,it is generally agreed that the worst affected areas with regard todepletion of natural woodlands occur in the Tabora, Urambo, and Iringadistricts. 16/ The Chunya district is relatively much better endowedwith woodland resources. The assessment below puts the fuelwoodsupply/demand situation in the Tabora, Urambo, and Iringa districts intofocus.

1.21 Fuelwood Supply Potential. ESMAP has commissioned a team ofspecialists from the Institute of Resource Assessment (IRA), Universityof Dar es Salaam, Tanzania, and the Swedish Space Corporation-SATIMAGE,to conduct an assessment of the biomass cover in the Tabora and Iringaregions. Under this activity, remote sensing images from the SPOTsatellite are being combined with field surveys (i.e., "ground truthing")as the first stage to inter alia assess the standing stock of fuelwood inthe woodlands (i.e., m wood per ha) that surround the main urban centersand the tobacco producing regions. Preliminary results for the Taboraand Iringa regions were obtained in 1987 which indicate that for naturalwoodlands areas that currently supply the bulk of fuelwood for tobfccocuring, fuelwood yields from clear felling would be between 57-99 m ofwood (stacked) per ha.

1.22 Fuelwood Supply Arrangements. Most smallholder farmers are nolonger able to obtain fuelwood for tobacco curing within walking distancefrom their respective villages. The fuelwood usually has to be obtainedfrom accessible woodlands that are several kilometers away. In theTabora and Iringa areas, farmers rely on seasonal labor to cut, extract,and pile the fuelwood in stacks along the access roads or tracks in thewoodlands. The farmers also hire trucks or tractor-trailers to haul thefuelwood to the barns. The costs involved are as follows for the 1987/88

15/ "Agricultural Development versus Environmental Protection inTanzania: The Case of Tobacco Production," by S.K. Marshalla,University of Dar-es-Salaam (December 1986).

16/ "Fuelwood Scarcity and Other Problems Associated with TobaccoProduction in Tabora Region, Tanzania," by A.B. Temu. Report No. 12of Division of Forestry, Sokoine University of Agriculture (October1979).

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season in the Tabora region. Laborers who cut, extract, and pile t~efuelwood into stacks charge farmers about TShlOO-150 per stack of 1 m .Haulage charges vary depending on type of vehicle used and pqymentarrangements. For trucks, the charge was TSh 800 per load of 5 m on acash payment basis; and TSh95O per load on a deferred payment basis withthe Cooperative Union (TARECU). The Cooperative Union also charged TSh900 per tractor-trailer load of 4 m3 on a deferred payment basis. Thecost of haulage was therefore of the order of TSh 160-225 per m . A fewof the larger farmers own trucks, and hence their costs of haulingfuelwood may be lower.

1.23 Specific Fuelwood Consumption. On the demand side, the basisfor estimation usually is the specific fuelwood consumption (SFC) statedin terms of weight (or volume) of fuelwood used to cure a tonne oftobacco. In the F3ast Africa region, estimates of SFC are commonly in therange of 20-30 m stacked wood per tonne of cured leaf. There are,however, very wide varinations in She estimates. In Tanzania, estimatesof SFC range from 20 m to 64 m of stacked wood per tonne of curedleaf. Tests carried out under the UK-ODA funded Tabora Land Use PlanningProject (LUPP found that on average, sma3llholder farmers in the regionrequired 30 mJ of solid wood (about 45 m stacked wood) to cure a tonneof tobacco leaf.

1.24 Against this background, ESMAP, during the pilot project,conducted systematic measurements of a group of 16 "control" barns todetermine SFC levels. Qn average, the "control" barns achieved SFClevels of between 17-28 mi stacked wood per tonne of cured lea. Henceit appears that previously reported levels of the order of 40 m stackedwood per tonne cured leaf and higher are overestimates.

1.25 Labor Input for Tobacco Curing. It is estimated that thetypical smallholder in Tanzania requires annually to mobilize some 420-530 mandays of labor per hectare of tobacco cultivated. These estimatesassume that yields vary between 450 kgs/ha to 700 kgs/ha of tobaccorespectively, and that farmers rely to a large extent on family membersfor the work, especially during curing. Of these total mandays, about28-32% is accounted for by tobacco curing chores, principally cutting andhauling of fuelwood to the barns, building and maintenance of barns, andthe process of curing itself. In overall terms, the curing stagerequires the largest proportion of labor-days in tobacco curing, usuallysome 75-110 mandays per annum for each hectare cultivated.

1.26 Impact of 1986/87 Tobacco Curing Season. The estimated totalfuelwood consumption in the three main districts for flue-cured tobaccoproduction is of the order of 167,000 m3 (stacked) for the 1986/87 seasonalone (Table 4.3). assuming conservatively that the average SFC in theseareas is 20 m wood (stacked) per tonne cured leaf. Since, for the mostpart, fuelwood requirements for tobacco curing are obtained by clear-felling parts of the surrounding Miombo woodlands, the implication isthat in 1986/87 alone, just over 3,000 ha of woodlands may have been

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severely degraded to provide wood for tobacco curing, ass uing optimis-tically that each hectare of woodland could yield 60 mU of tackedwood. 17/

1.27 With increasing production of flue-cured tobacco under therehabilitation programs, the demand for fuelwood is expected to risesignificantly. Given that farmers already have to travel longerdistances, and pay higher costs for cutting and hauling the fuelwood totheir respective barns, it is likely that regional fuelwood supply demandimbalances will worsen considerably, perhaps eventually leading onceagain to a marked reduction in output. Alternatively, the fuelwoodscarcity in the Tabora, Urambo, and Iringa districts will compelproducers of flue-cured tobacco to migrate to areas with more accessiblewoodlands, particularly the Chunya district.

Table 1.3: 1986/87 PRODUCTION OF FLUE-CURED TOBACCO

AND FUELWOOD REQUIREMENTS

Tobacco Fuelwood WoodlandRegion District Production Consumed a/ Cleared

(tonnes) (m ) (ha)

Tabora Tabora 3,396.6 67,732 1,129Urambo 3,226.6 64.532 1,076

Iringa iringa 417.7 8,354 140SHTGA b/ 1,272.6 25,452 424

Mbeya Chunya 858.4 17,168 286

Total 9,161.9 183,238 3,055

a/ Assumes specific fuelwod consumption of 20 m) wood (stacked) pertonne cured tobacco.

b/ Members of the Southern Highlands Tobacco Growers Association.c/ Average 60 m3/ha by clearfelling natural woodlands.

Source: Mission estimates; TTPMB.

17/ There is still a strong selectivity in the types of tree speciesfelled for various purposes. For tobacco curing, the preferredspecie appears to be "Mtundu" Brachystegia sp., Jurbenadia sp., andAcacia sp..

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II. PROPOSED MEASURES TO IMPROVE THE EFFICIENCY OP TOBACCO CURING

Introduction

2.1 The Government has, since the early 1980s, been concerned aboutthe relatively high levels of fuelwood consumed for tobacco curing in theproducing regions, and the impact of tobacco curing in aggravatingregional fuelwood supply/demand imbalances. Several surveys have alsoidentified the growing shortages of fuelwood as a major constraint onproduction in the flue-cured tobacco sector. In 1984, the erstwhileTobacco Authority of Tanzania (TAT) began investigating ways of reducingfuelwood requirements for tobacco curing, and identified several measuresthat were later incorporated into the unsuccessful "Smallholder TobaccoImprovement Project."

2.2 In this chapter, measures considered necessary for improvingthe efficiency of fuelwood use in tobacco curing in Tanzania areredefined and reviewed, based on the work of the ESMAP team during thepilot demonstration project. The measures are, to some extent, drawnfrom previous experiences gained in other Eastern Africa countries (e.g.,Malawi, Uganda, Kenya). The chapter concludes with the assessment of thepotential impact and benefits that would accrue to farmers who implementthe measures. The assessment is based on the results achieved by ESMAPduring curing trials with medium sized barns which were conducted atUfuluma Village in the Tabora district during the 1987/88 curing season.

2.3 The ESMAP investigations have confirmed that the following arethe main factors that currently contribute to inefficiencies in fuelwooduse and accentuate energy losses for tobacco curing by smallholders inTanzania:

(a) poor management and control of the curing process;

(b) lack of proper furnaces or major deficiencies in the open-hearth furnaces used for heating;

(c) deficiencies in various aspects of the flue-pipe and chimneysystems; and

(d) poor construction and maintenance of barns, includinginsulation and ventilation mechanisms.

2.4 Because the earning power of smallholder tobacco farmers inTanzania is still relatively low, greater emphasis has to be given tomeasures that are both relatively simple to implement, and would notplace undue financial burdens on the smallholder farmers. Similarly,because there is a scarcity of foreign exchange in Tanzania, measuresthat would require a minimum of imported materials and equipment toimplement in the country have been favored by ESMAP. Based on theresults achieved by ESMAP during the curing trials, the potential impacts

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and benefits are assessed in quantitative terms (i.e., m3 of fuelwoodsaved, reduction of curing losses in kgs. of cured leaf, and laborsavings in man-days for each curing cycle).

Measures for Puelwood Conservation

Barn Modifications

2.5 Most of the existing smallholder barns surveyed during thecensus are structurally in bad shape. In most cases, the doors to thebarns do not fit properly, large gaps exist between the side walls androofs, and cracks had developed in walls after the original clay mortarhad dried, crumbled, and fallen off. The cumulative effect of suchdamage is significant in terms of reducing the efficiency of fuelwood useduring curing, because heat loss by convection increases through thegaps; hot air leaking out of the barn is more pronounced during the earlystages of curing; and conversely, cold air leaking into the barn is morepronounced during the final stages of stem drying. Ideally, the barnsshould be completely rebuilt using burnt bricks with better insulationproperties, improved construction methods for the walls, door frames, androofs. However, this would appear to be a longer term objective becausethe costs involved may be too high relative to the present earnings ofsmallholder tobacco farmers. The more practical approach in the short-term, would appear to involve barn rehabilitation, primarily:(i) resealing the walls; and (ii) rethatching the roofs.

2.6 Sealing of Walls. As a minimum measure, the farmers would needto replace the clay mortar, and also patch-up any cracks in the walls.Doors would be refitted to ensure that existing gaps are eliminated. Iffeasible, the farmers would be encouraged to use a cement-sand slurry toseal and/or paint the outside of the walls.

2.7 Rethatching of Roofs. Also as a minimum measure, farmers wouldneed to rethatch the roofs of their respective barns prior to each curingseason. Although the existing traditional thatched roofs have beendemonstrated to have fairly high insulation properties, they arepermeable, thereby allowing air to flow into and out of the barn. Thismakes difficult the process of controlling humidity and temperaturelevels within the barn during curing. Farmers need to be instructed asto how to improve the construction of their thatched roofs, especially tomake them as dense and compact as possible, using reed grass, and toeliminate unnecessary gaps, etc. Most smallholders in the main producingareas of Tanzania presently cannot afford the cost of replacing thethatched roofs on the barns with corrugated iron roof sheeting.

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Barn Ventilation

2.8 The traditional smallholder barns rely on natural convectionwith air. Vents, which usually are located at the bottom and top of eachbarn, allow cooler air to enter the base of the barn, gain heat from theflue-pipes, and rise up towards the roof while picking up moisture fromthe tobacco leaves; the top vents allow the hotter and moisture laden airto leave the barn. During curing, the vents need to be operated (closedand opened) by farmers in a manner that regulates the air flow throughthe barn. The rate of heat loss by convection can be regulated byadjusting the vents. At present, since most smallholder barns inTanzania are fitted with permanently open vents, it is almost impossibleto control ventilation rates at different stages of the curing cycle.During the final stages of curing in existing barns, for example, theventilation rate cannot be reduced because top vents always remainopen. Even when the bottom vents are closed (blocked), air leakage intothe barns can be substantial i.e., through cracks in the wall, and aroundthe poorly fitted doors. In general, most of the bottom vents on thebarns are poorly located for air distribution purposes.

2.9 In order to improve the farmers' control of ventilation inexisting barns, the following relatively simple but practical measuresshould be introduced in conjunction with better schedules for managingventilation rates during curing:

(a) Top Vents. The open vents should be replaced by woodenshutters which are designed to close within tightly fittingwooden frames. Hinges made out of rubber instead of metalshould be used to hold the shutters to the frames. For easyoperation by the farmers, new shutters were designed byESMAP. 18/ The shutters can be opened in various degrees bydrawing on a cord attached to the rudimentary pulley system(i.e., a looped nail embedded in the barn wall). The shutterswould be able to close under their own weight because the framewould be canted slightly to the inside of the barn. For mostof the existing smallholder barns, four such self-closingshutters would need to be installed as top vents, one each atthe two gable ends, and one each above the top tiers on thefront and back walls, respectively.

(b) Bottom Vents. Similar self-closing shutters should beinstalled near the base of the barn. The proposed location ofthe bottom vents would facilitate a more even distribution ofair entering the barn.

18/ The ESMAP Field Director (Mr. Wahid) in consultation with themanager of a local wood processing company, the Tabora Msitu PoductsLtd.

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Furnace Retrofit

2.10 Most smallholder tobacco barns in Tanzania are fitted withpoorly constructed open-hearth furnaces, which do not provide any meansfor controlling air required for combustion. This increases heat lossesby radiation and convection, leading to significant wastage of fuel-wood. In order to improve the efficiency of fuelwood use in thiscontext, there is the need to introduce a new type of furnace. Theimproved slot-type furnace, which is being disseminated elsewhere in EastAfrica, notably Kenya, Malawi, and Uganda, may be the most appropriateand cost-effective design to minimize heat losses and also to improvecombustion efficiency.

2.11 Design Changes. Typically, furnaces in smallholder barns inTanzania usually are embedded in a barn wall. In most cases, the furnaceis simply a shell with an opening in one end into which fuelwood isfed. Where there is an arch encasing the furnace, it usually isconstructed of burnt brick and mud of 10" (25 cm) to 12" (30 cm)thickness. Part of the furnace extends about two feet within the barnwall. This section of the open hearth furnace is shaped in the form of abox 4 feet (1.2 cm) long and 2.5 feet (0.76 cm) high. Among the manyshortcomings of this type of furnace are: (i) the lack of any provisionfor ash removal except by clearing out the entire furnace; and (ii) thelack of a mechanism for air flow regulation. Charcoal is usually formedin such furnaces, indicating that combustion is somewhat incomplete.Also, depending on the direction and strength of prevailing winds, flamescan be blown into or sucked out of the furnace, thereby aggravating theheat loss problem.

2.12 In order to comprehensively address these problems, the 'slot-type' furnace is recommended for this purpose. The basic design of the'slot-type' furnace originates from the Malakisi Research Station inKenya, and hence is usually referred to as the 'Malakisi' furnace. Themain features of the particular version for Tanzania, which incorporatessignificant modifications made by the ESMAP team during the pilot projectat Ufuluma Village, are presented in Annex 6, together with sometechnical drawings.

2.13 The furnace was successfully tested and demonstrated during theESMAP pilot project at Ufuluma Village during the 1988 curing season;also a local capability to build the Malakisi furnace (Ufuluma Type) hasbeen created in the Tabora region. Such capability can be replicated inall other flue-cured tobacco growing areas of Tanzania.

Flue-Pipe and Chimney System

2.14 The design and configuration of the flue-pipe and chimneysystem in a tobacco curing barn is an important factor in achievingenergy efficiency. The more effective the transfer of heat from theflue-pipes into the barn, the lower the heat loss through the exhaustgases. Most of the flue-pipes and chimneys of barns that were inspectedduring the ESMAP survey were found to be defective and poorlyinstalled. Heat loss through exhaust gases are likely to be much higherthan should be the case. Hence, there is significant scope for improving

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the efficiency of fuelwood use by introducing the measures below toupgrade flue-pipe and chimney systems in the smallholder barns.

2.15 The flue-pipe systems in the existing barns are not suitablefrom the energy efficiency standpoint and need to be changed. Such flue-pipes are made of 22- and 24-gauge sheets of galvanized iron and arefabricated as an 11" diameter pipe of either 3 foot or 6 foot length.There are several shortcomings in the way they are installed. In most ofthe barns operated by smallholders, flue-pipes extend out of the furnaceand circle the inside perimeter of the barn; an allowance of about onefoot away from the barn wall is given, and because of regular damagethrough overheating and ash deposits, the section of the flue-pipe thatextends out of the furnace has to be replaced several times a season.

2.16 A majority of the barns surveyed did not have any chimneys.The chimneys in other barns were ineffective because they were too short(i.e., do not even clear the roof level); this undermines the mainfunction of the chimney, which is to create a draught, thereby improvingboth the combustion efficiency in the furnace, and heat transfer from theflue-pipes into the barn.

2.17 During the ESMAP pilot project described below, two differentconfigurations to improve the effectiveness of flue-pipes were success-fully tested: (i) the U-type of layout which is most suitable for thesmallholder farmers who use conventional medium-size barn of 16' x 13'dimensions (Figure 2); and (ii) the T-section layout which is mostsuitable for conversion of larger barns (e.g., by SHTCA members into lowprofile barns of 24' x 16' x 13' dimensions (Figure 3). Also, flue-pipesof 8" diameter, rather than those of 11" diameter, were used with goodresults.

2.18 Besides increasing the efficiency of the hot-air circulationand heat transfer system of the barn, the proposal to retrofit 11" flue-pipes with 8-inch ones would significantly reduce the cost of piping bysome 27-30%, because three pipes of 8" diameter can be made out of asheet which presently provides only two pipes of 11" diameter. Also, inorder to reduce the recurring heat damage to the section of the flue-pipes that extends out of the furnace, a cast iron pipe (3-feet long)should be used instead of 22" or 24" gauge sheets for that section offlue-pipe. Such cast iron pipes can be fabricated locally by foundriesin Morogoro.

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Figure 2: GROWER'S IEDIUM SIZED BARN1

GROWER'S UARNI-UAYOUT

V V I

V

Malakisi

V V V

GROWERS BARN (16' x 14') FITTED WITH MALISI FURNACE 8" DIAMETER FLUES & CHIMNEY(Diagramotic)

, h.t,ched roo

Chinamwn's hat&

4 3'D 0 0 0

0

- 4.-- 4'. Dt-4--

G.L

hatcIecn roo I D/ /

21/ Ash 16'

33Da t C

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Fiture 3: LOW-PROFILE BARN (24' x 16' x 13')

Elbow Wlzt Z M ~ ~ ~~,Ebwiln

Ebowjdrit Elb~~~~~~~~~~~~Stow worg Ben rlght

LOW~PROLE CURING BARN T-IAYOUT(Dkgramoft. Not to scab) 16 h

O 111!!! 2ihll'we CIIJ/II fl/Il/

ol SAto 0 o

O O o o 0S 4' -0_

o o 0 0 0 1 0 RES H

LOW-PROFILE BARN24x 16V x 13) IED WITH MALAXIS FURNACE & V"DIAMETER FLUES & CHIMNEY(DlgamaCtc. Not to scale)

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Improving Management of the Curing Process

2.19 Techniques for loading barns and for managing and controllinghumidity levels in the barns during curing have been demonstrated asbeing at least as important as the above measures for achieving greaterlevels of energy efficiency in tobacco curing. They also contribute in avery significant way to reducing curing losses, thereby increasing thenet yields and quality of cured leaf produced per cycle. The followingtechniques were successfully demonstrated during the pilot project andhence are strongly recommended as forming the core of the requiredtraining and extension program to upgrade farmer skills in respect oftobacco curing.

2.20 Use of Wet- and Dry-Bulb Hygrometers/Thermometers. Mostfarmers in Tanzania understand the curing process primarily in terms oftemperature cycles, rather than as a drying process in which convectionheating is largely a means of varying the rate of air flow over thetobacco leaves, so that the air gradually picks up the moisture in theleaves, and the humid air is vented out. Indeed, the farmers have littleelse with which to monitor the curing process except for the traditionalcurometer, which is essentially a form of thermometer. Most of thetobacco produced in Tanzania shows signs of the color loss and barn rotwhich are typical of the damage due to "scalding" and high humiditylevels in the barns during the curing process.

2.21 In order to improve farmer capability to control humiditylevels during the curing process, the use of Wet- and Dry-Bulb Hygro-meters should be introduced, and their application comprehensivelydemonstrated. During the field demonstrations and workshops that wereorganized as part of the pilot project and attended by over 500 farmersin the major tobacco districts, the feedback received indicated thattheir awareness had been raised about effective ways and means ofimproving tobacco curing efficiency, particularly with the use of wet anddry hygrometers (Figure 4) to assist in managing and controlling thecuring process.

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Fi&ure 4: WET AND DRY BULB HYGROMETER

GI Q

Eie

B BMAWERLALS2 pcs 1" PVC pipe 7' long (one piece with 1/4" hole ddiled

1 1/2" ffom one end)I pc 1' PC pipe 2" bnog290° 1" PVC elbo#2 End caps 1" PC1 pc Athltic shoe srng r lon (wick)1 TobOcco Curing eRmometer with bulb guards cut

out wlde rubber band- i 1 pc of thrad (not hn) 4 longo btie wik to themor bulb

Wet bj ulb themome

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2.22 Barn Loading Guidelines. Most smallholder farmers in Tanzaniaregularly overload their barns during curing, i.e., in terms of thenumber of sticks and the spacing between the successive tiers. The netresult is poor and uneven ventilation of barns, unnecessarily long curingcycles, and relatively low teperatures in the barn, usually below thecritical range between 122-140 F (50-60 C). Such problems lead to markedreductions in leaf quality, high curing losses, 19/ and greater wastageof fuelwood.

2.23 There is the need for a major effort as part of the follow-upextension strategy to inculcate in the farmers the know-how about correctmethods and practical guidelines for loading barns. Ideally, the sticksthat hold the packs of tobacco leaf should not be so tightly placed as toblock the flow of air by natural convection through the barn. Sticksshould therefore be far enough apart so as not to touch each other beforewilting occurs in the leaves (i.e., sticks should not be less than 6inches apart). Some guidelines for loading smallholder barns of the typeand sizes commonly used in Tanzania are shown in the technical supple-ment, and should be incorporated into the proposed extension program.

Assessment of Impact of Proposed Measures

2.24 Indicative Fuelwood Savings. For smallholder farmers that usemedium size barns for curing (i.e., 16'x16'x14'), the results of thecuring trials indicate that on average, they achieve SFCs of just over20 m of stacked wood per tonne of cured tobacco leaf. This level of SFCis significantly les s than the previously reported estimates which wereon the order of 40 m stacked wood per tonne of cured tobacco leaf. Thecuring trials demonstrate clearly that even with the more conservativeestimate of SCF in existing barns, there still is considerable scope forimproving the energy efficiency of the barns. The following are theestimates of potential fuelwood savings that can be achieved over thebaseline level of 20 m (i.e., for the medium sized barns):

(a) about 25% savings in fuelwood use (close to 5.0 m3 per tonne oftobacco cured) can be achieved with the existing medium sizedsmallholder barns by upgrading farmer skills and technicalknow-how of farmers about the management and control of thecuring process. This would apply especially to improvingfarmer skills in respect of using the wet and dry hydrogrometerfor monitoring humidity levels in the barn, as well as forloading the barn, etc. No savings due to investments inmodifying and/or retrofitting the barn are taken into account;and

19/ Curing losses are incurred when the leaves are picked and tied-uponto sticks for loading into the barn. Further losses occur duringcuring due to scalding, "dry-out," etc., and breakage. Post-curinglosses are a result of leaf damage during grading and baling beforeshipment to marketing centers.

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(b) when such improvements in farmer skills (i.e., on managementand control of the curing process) are combined with relativelylow-cost investments to upgrade the barn, the projected impactin terms of savings in fuelwood use, increase to 3just over 50%,thereby reducing SFC levels by just over 10 m per tonne ofcured tobacco.

2.25 Reduction in Curing Losses. The results of the curing trialshave confirmed that in addition to the fuelwood savings, there would bemuch more significant reductions in curing losses (i.e., damage totobacco leaves due to scalding, excessive drying, etc.). Such curinglosses are usually high because of poor management of the curing process,and as indicated above, sub-optimal loading of the barns. By carefullymonitoring the output of each control and demonstration barn during thecuring trials, the following estimates of the potential increases in theoutput of cured tobacco leaf per cycle due to reduction in leaf damagecan be made:

(a) the application of improved techniques for managing andcontrolling the curing process could lead to a 20% increase inbarn output of cured tobacco per cycle, i.e., 233 kg of tobaccowould, on average, be produced as against the average of about195 kg of tobacco produced in the control barns;

(b) by combining the low-cost investments to upgrade the barns withimprovements in farmer skills for curing, the potentialreduction in curing losses would lead to a 50% increase intobacco output per cycle i.e., 290 kg of tobacco would beproduced against the baseline of about 195 kg of tobacco forthe control barns.

2.26 Other Significant Benefits. Other benefits that arise from theapplication of the recommended measures include: (a) improvements in thequality of cured leaf are which significant, and should translate intohigher prices obtained by the farmers. On average, the tobacco cured bythe ESMAP team fetched a price some 5-10% higher than the average tobaccoprice recorded for smallholder farmers in the Tabora Region during the1988 purchasing season; and (b) reduction by at least one day of thelength of each curing cycle. This should also translate into a saving ofabout one man-day of labor for the typical smallholder farmer, which issignificant because such labor would usually be needed urgently for othertasks on the farm, such as picking the next batch of mature leaf andpreparing (tying and hanging on sticks) for the curing.

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Table 2.1: ESTIMATES OF BENEFITS c/

Barn Configuration Incremental Fuelwood a/ Additional Tobacco b/

Savings Output

(m ) (kg)Improved Management Only 4.8 38

Improved Management plus

Investment In Barn

Modification 10.4 95

a/ In m' of stacked wood.

b/ In kg cured tobacco per cycle, reflecting reduction in curing

losses.

c/ Based on results of curing trials for medium-sized barns only.

Control barns with SFC of 20.1 m3 wood (stacked) per tonne cured

tobacco and average output of 195 kg cured leaf p