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    The Agri-Business Sector in Tanzania 2021

    Alex Conradie | Tanzania | 24 May 2021

    The Agri-Business Sector in Tanzania 2017

    Alex Conradie | Tanzania | 27 November 2017

    The Agri-Business Sector in Tanzania 2015

    Alex Conradie | Tanzania | 27 February 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report focuses on the agri-business sector in Tanzania and includes information on its various agricultural products, production and trade, major players, corporate actions, developments and regulations. There are profiles of 22 companies including Kilombero Sugar Company, the largest sugar producer in the country, commercial avocado producer Africado and tea producers such as Mohammed Enterprise and Unilever Tea. Other profiles include Said Salim Bakhresa & Company, which owns wheat, maize and rice mills and coffee companies such as Burka Coffee Estates and Tanganyika Instant Coffee.

    Introduction

    Tanzania’s economy is heavily dependent on agriculture, which contributed 28.9% to the country’s GDP and had a gross value added of US$16.0bn in 2019, according to the African Statistical Yearbook. Apart from its importance to the economy, agriculture is also the most important sector from a socio-economic point of view, since it employed 17.3 million people, or 65.1% of the labour force, in 2019, according to the International Labour Organisation (ILO). The major food crops are maize, cassava (a root vegetable), rice, potatoes, beans, sweet potatoes, sorghum and bananas, while the main cash crops are coffee, cotton, sugar cane, tea, cashew nuts, tobacco, sesame seed, flowers and sunflower seed. Some of the challenges facing Tanzania’s agri-business sector are the limited use of fertilisers, pesticides and improved seeds, limited use of mechanisation and a reliance on natural rainfall. Other factors influencing the performance of the sector are inadequate storage facilities, poor or non-existent transport infrastructure, weak value chains and limited affordable financial services.

    Strengths

    • An abundance of land and water resources, and a favourable climate for the production of a variety of crops.
    • Globally, a large producer of sisal, sesame seed, sweet potatoes, dry beans and cashew nuts.
    • High levels of support from the government, foreign governments and international agencies.
    • Tanzania produces larger cashew nuts than other African countries, and its cashew nuts are harvested after the harvest in India and West Africa.
    • Tanzanian rice has a unique, sought-after taste and aroma.

    Weaknesses

    • High levels of post-harvest losses due to inadequate storage facilities.
    • Inadequate access to finance and market information.
    • Inadequate production levels of wheat, oilseeds and sugar to satisfy domestic demand.
    • Increasing deforestation, soil degradation and desertification that reduce agricultural productivity.
    • Lack of agricultural equipment.
    • Most smallholders cannot afford production inputs like fertilisers, pesticides and improved seeds.
    • The majority of crops are grown by relying on rain-fed agriculture, which increases vulnerability to adverse weather conditions.
    • Weak value chains.

    Opportunities

    • High export demand for horticultural products, especially avocados and spices.
    • New president Samia Hassan could open the country to more foreign investment.
    • Trend towards consuming organic and sustainably produced food, especially in markets such as the European Union and United States.
    • Wheat, oilseeds and sugar production opportunities, as local demand for these outstrips supply.

    Threats

    • Increasing production costs.
    • Lower demand due to the impact of the coronavirus pandemic.
    • Poor transport infrastructure leads to high transportation costs.

    Outlook

    The building installations sector faces constrained growth as the pandemic has slowed the construction of new buildings, particularly in the non-residential sector. National Treasury forecasts that the economy will grow by 3.3% in 2021, following a 7% contraction in 2020 (including a 20.3% contraction in the construction sector). However, as of Q1 2021 business confidence remained subdued and it is unclear when the number of new installations will return to pre-pandemic levels. Despite this, the drive by property owners to reduce carbon emissions by developing green buildings and improve energy efficiency by reducing their reliance on the electricity grid is expected to provide a number of opportunities for installers, particularly those involved with solar installations (solar PV, solar water heating and heat pumps). The South African Photovoltaic Industry Association says given continued load-shedding the outlook for solar PV is “incredibly positive”. While the gazetting in July 2020 by the Department of Public Works and Infrastructure of several strategic infrastructure projects (SIPs), including R138bn housing projects, present opportunities for those fitting new building installations, it will be dependent on how quickly these can get off the ground.

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    The Agri-Business Sector in Tanzania
    The Agri-Business Sector in Tanzania 2021

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    Industry Landscape

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    The Agri-Business Sector in Tanzania 2017-11-27

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    The Agri-Business Sector in Tanzania 2015-02-27

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. COUNTRY INFORMATION 1
    2.1. Geographic Position 2
    3. DESCRIPTION OF THE INDUSTRY 8
    3.1. Industry Value Chain 14
    4. SIZE OF THE INDUSTRY 19
    5. STATE OF THE INDUSTRY 21
    5.1. Local 21
    5.1.1. Trade 28
    5.1.2. Corporate Actions 31
    5.1.3. Regulations 31
    5.2. Continental 32
    5.3. International 33
    6. INFLUENCING FACTORS 34
    6.1. Coronavirus 34
    6.2. Economic Environment 35
    6.3. Government Incentives and Support 35
    6.4. Foreign Aid 37
    6.5. Technology, Research and Development (R&D) and Innovation 39
    6.6. Environmental Concerns 40
    6.7. Labour 40
    7. COMPETITION 41
    7.1. Barriers to Entry 42
    8. SWOT ANALYSIS 42
    9. OUTLOOK 43
    10. INDUSTRY ASSOCIATIONS 43
    11. REFERENCES 44
    11.1. Publications 44
    11.2. Websites 45
    COMPANY PROFILES 49
    AFRICADO LTD 49
    BIOSUSTAIN TANZANIA LTD 50
    BURKA COFFEE ESTATES LTD 52
    CETAWICO LTD 54
    CHAI BORA LTD 56
    HILL ANIMAL FEEDS & AGROVET SUPPLIES COMPANY LTD 58
    KAGERA SUGAR LTD 59
    KILOMBERO PLANTATIONS LTD 61
    KILOMBERO SUGAR COMPANY LTD 63
    MIKOANI TRADERS LTD 65
    MOHAMMED ENTERPRISE TANZANIA LTD 66
    MTIBWA SUGAR ESTATE LTD 68
    OLAM TANZANIA LTD 70
    QUTON TANZANIA LTD 72
    RUAHA MILLING COMPANY LTD 73
    SAID SALIM BAKHRESA & CO LTD 74
    SEED CO TANZANIA LTD 75
    SERENGETI FRESH LTD 77
    TANGANYIKA INSTANT COFFEE PLC 78
    TATEPA PLC 80
    TPC LTD 82
    UNILEVER TEA TANZANIA LTD 84

    Introduction

    Tanzania’s economy is heavily dependent on agriculture, which according to the World Bank, accounted for 31.1% of GDP in 2016. Figures published in the African Economic Outlook report show that the agricultural sector employs 66% of the labour force, while agricultural products comprise 30% of exports. The major food crops are maize, cassava, rice, potatoes, sweet potatoes and bananas, while the main cash crops are coffee, cotton, sugar cane, tea, cashew nuts, tobacco, sesame seeds and sisal. Reliance on erratic rainfall, limited use of improved seeds and fertilisers, and low levels of cultivation of arable land are preventing Tanzania from reaching its full production potential. Growth of the agricultural sector is also constrained by a lack of infrastructure, including poor road transport especially in rural areas.

    Strengths

    • An abundance of land and water resources, and a favourable climate for the production of a variety of crops.
    • High levels of government support.
    • Tanzania produces larger cashew nuts than other African countries, and its cashew nuts are harvested after the harvest in India and West Africa.
    • Tanzanian rice has a unique, sought-after taste and aroma.

    Weaknesses

    • Farmers have limited access to financing.
    • High transportation costs in remote areas, due to poor or non-existent transport infrastructure.
    • Most smallholders cannot afford production inputs like improved seed, fertiliser and pesticides.
    • The majority of products are grown by relying on rain-fed agriculture, which increases vulnerability to adverse weather conditions.

    Opportunities

    • Higher exports, especially to the rest of East Africa.
    • Increasing demand for agricultural products due to rapid population growth, urbanisation and a rise in incomes.
    • The current sugar supply gap is expected to widen, creating opportunities for new producers.

    Threats

    • Drought, because crops are mainly rain-fed.
    • Increasing deforestation, soil erosion, and soil degradation which reduce agricultural productivity.

    Outlook

    According to the Macro Poverty Outlook report, Tanzania’s agricultural sector is expected to grow by 3.4% in 2017 and by 3.8% in 2018 as a result of an expanding regional market, the government’s industrialisation agenda that aims to enlarge commercial farming, the expansion of out-grower schemes by government agencies and private companies, and the supply of inputs to farmers by the government. The FAO is of the opinion that the government needs to allocate more resources to the sector in order to achieve the ASDP’s target of 6% annual growth. Stakeholders believe that if government policies are properly implemented, the agricultural sector has the potential to become the leading sector for economic transformation and poverty reduction since it is the mainstay of the rural economy.

    The Agri-Business Sector in Tanzania
    The Agri-Business Sector in Tanzania 2017

    Full Report

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.42 (USD)*

    Buy Now +

    Historical Reports

    The Agri-Business Sector in Tanzania 2021-05-24

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    View Report Add to Cart

    The Agri-Business Sector in Tanzania 2015-02-27

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. COUNTRY INFORMATION 1
    2.1. Geographic Position 2
    3. DESCRIPTION OF THE INDUSTRY 5
    3.1. Industry Value Chain 10
    4. SIZE OF THE INDUSTRY 16
    5. STATE OF THE INDUSTRY 20
    5.1. Local 20
    5.1.1. Corporate Actions 25
    5.1.2. Regulations 25
    5.2. Continental 27
    5.3. International 28
    6. INFLUENCING FACTORS 29
    6.1. Government Support 29
    6.2. Foreign Aid 31
    6.3. Environmental Concerns 32
    6.4. Economic Environment 32
    6.5. Labour 33
    6.6. Technology, Research and Development (R&D) and Innovation 34
    7. COMPETITION 35
    7.1. Barriers to Entry 35
    8. SWOT ANALYSIS 35
    9. OUTLOOK 36
    10. INDUSTRY ASSOCIATIONS 36
    11. REFERENCES 37
    11.1. Publications 37
    11.2. Websites 38
    COMPANY PROFILES 39
    AFRICADO LTD 39
    BURKA COFFEE ESTATES LTD 40
    CETAWICO LTD 41
    KAGERA SUGAR LTD 42
    KATANI LTD 43
    KILOMBERO PLANTATIONS LTD 45
    KILOMBERO SUGAR COMPANY LTD 47
    MOHAMMED ENTERPRISE TANZANIA LTD 49
    MOUNTAINSIDE FARMS LTD 51
    MTIBWA SUGAR ESTATE LTD 52
    OBTALA LTD 54
    OLAM TANZANIA LTD 57
    QUTON TANZANIA (PVT) LTD 59
    SEED CO TANZANIA LTD 61
    SERENGETI FRESH LTD 63
    TANZANIA TEA PACKERS LTD 64
    TPC LTD 67
    UNILEVER TEA TANZANIA LTD 69

    Introduction

    This report focuses on the growing of crops, market gardening and horticulture in Tanzania. The country’s economy is heavily dependent on agriculture, which accounts for 21% of GDP and 22% of total export earnings, and employs 75% of the labour force. The main staple crops in Tanzania are maize, cassava, rice, wheat, millet, sorghum and plantain. Farmers do not rely on only one staple crop, but usually grow several. Among the staple foods grown during 2013, maize acreage was the largest at 4.1 million hectares (ha), followed by cassava and rice at around 900,000 ha each. The main cash crops are coffee, cotton, sugar cane, tea, cashew nuts, tobacco and sisal. Among these cash crops, cotton acreage was 490,000 ha, cashew nuts 410,000 ha, coffee 120,000 ha, sisal 58,000 ha, sugar cane 30,000 ha and tea 3,000 ha. Reliance on erratic rainfall, limited use of improved seeds and fertilisers, and low levels of cultivation of arable land are preventing Tanzania from reaching its full production potential. Growth of the sector is also constrained by a lack of infrastructure, including poor road transport, especially in rural areas, and a lack of storage facilities.

    Strengths

    • An ideal climate and fertile soils for the cultivation of various crops and a number of large river systems ideal for irrigated farming.
    • High levels of government support.

    Weaknesses

    • Farming is still mainly rain-fed and poorly mechanised.
    • Infrastructure is underdeveloped, with poor roads and ports and an unreliable electricity supply.
    • Lack of control over the sugar sector.
    • Lack of storage facilities.
    • Most banks consider the horticultural sector to be a high-risk sector, leading to a general unwillingness to advance loans.
    • The cost of utilities is high compared with neighbouring countries.

    Opportunities

    • Government initiatives to attract investors.
    • Increasing demand for agricultural products from the growing middle class.
    • The current sugar supply gap is expected to widen, creating opportunities for new producers.
    • The government’s provision of subsidised farm implements.
    • Wheat demand exceeds supply, creating opportunities for new producers.

    Threats

    • Drought, because crops are mainly rain-fed.
    • Pests/diseases.

    Outlook

    The economy is expected to grow by around 7% in 2015, driven by the transport, communications, manufacturing and agricultural sectors and supported by public investment in infrastructure. Various initiatives, like the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and Big Results Now (BRN) are important to sustain public-private partnerships and to support market-oriented measures. These include access to credit and market access facilitation, which have the potential to increase production, leading to poverty reduction and food security, while reducing the financial burden on public finances. However, investment in agriculture is still comparatively low. According to the FAO, the government needs to allocate more resources to the sector in order to achieve the ASDP’s target of 6% annual growth. All stakeholders believe the agricultural sector has the potential to become the leading sector for economic transformation and poverty reduction, since it is the mainstay of the rural economy.

    The Agri-Business Sector in Tanzania
    The Agri-Business Sector in Tanzania 2015

    Full Report

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.42 (USD)*

    Buy Now +

    Historical Reports

    The Agri-Business Sector in Tanzania 2021-05-24

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    View Report Add to Cart

    The Agri-Business Sector in Tanzania 2017-11-27

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY AND SUPPLY CHAIN 1
    2.1. Geographic Position 12
    3. SIZE OF THE INDUSTRY 14
    4. STATE OF THE INDUSTRY 20
    4.1. Local 20
    4.1.1. Corporate Actions 22
    4.1.2. Regulations 22
    4.2. Continental 24
    4.3. International 25
    5. INFLUENCING FACTORS 27
    5.1. Economic Environment 27
    5.2. Input Costs 28
    5.3. Government Support 28
    5.4. Information Technology and Technology 31
    5.5. Labour Resources 31
    5.6. Environmental Concerns 32
    6. COMPETITION 32
    6.1. Barriers to Entry 32
    6.2. Research and Development (R&D) 33
    6.3. Innovation 34
    7. SWOT ANALYSIS 35
    8. OUTLOOK 35
    9. INDUSTRY ASSOCIATIONS 36
    10. REFERENCES 37
    10.1. Publications 37
    10.2. Websites 38
    COMPANY PROFILES - GROWING OF CEREAL & OTHER CROPS 40
    Mohammed Enterprise Tanzania Ltd 41
    Mountainside Farms Ltd 43
    COMPANY PROFILES - GROWING OF VEGETABLES, HORTICULTURAL SPECIALITIES & NURSERY PRODUCTS 44
    Quton Tanzania (Pvt) Ltd 45
    Seed Co Tanzania Ltd 46
    COMPANY PROFILES - GROWING OF FRUITS, NUTS, BEVERAGE & SPICE CROPS 47
    Burka Coffee Estates Ltd 48
    Mohammed Enterprise Tanzania Ltd 49
    Mountainside Farms Ltd 51
    Obtala Resources Ltd 52
    Rift Valley Corporation 54
    Tanzania Tea Packers Ltd 56
    Unilever Tea Tanzania Ltd 58
    COMPANY PROFILES - MANUFACTURE OF SUGAR 60
    Kagera Sugar Ltd 60
    Kilombero Sugar Company Ltd 61
    Mtibwa Sugar Estate Ltd 63
    TPC Ltd 64

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