Agriculture Lab - tzdpg.or.tz · 1 Executive summary Agriculture contributes 24% to the real GDP of Tanzania, and accounts for 75% of workforce employment.However, growth in the sector

National Key Result Area (NKRA)

Agriculture Lab

1

Executive summary

▪ Agriculture contributes 24% to the real GDP of Tanzania, and accounts for 75% of workforce employment. However, growth in the sector is hindered by a number of critical challenges along the value chain, such as access to land, infrastructure, credit, improved inputs, access to market, farmer practices and human resource development

▪ The objective of the lab is to address these challenges in order to increase agriculture GDP growth, improve smallholder incomes and ensure food security by 2015. Growth in GDP will be driven by commercial farming models, while increased smallholder incomes will be achieved through smallholder aggregation. Both models will contribute to addressing the question of food security. Social inclusion and sustainability are at the heart of these models

▪ The lab has focused on an initial 3 priority crops: maize, rice and sugarcane as they are of high strategic importance to contribute to food security and import substitution for the country. The initiatives developed by the lab can be extended to other crops

▪ We will achieve these objectives through 3 big ideas:

– Closing 25 Commercial farming deals

– Enhancing 78 Smallholder rice irrigation and marketing schemes through professional management

– Developing 275 Collective warehouse based marketing schemes (COWABAMA) targeted at linking maize farmers to the market

▪ A total budget of TZS 14,310 billion is required to implement all the initiatives, 4% of which will require input from the public sector

▪ The success of these initiatives relies on firm government cooperation and support, institutional strengthening and ensuing that the enabling policy environment is attractive both to potential investors as well as smallholder farmers

2

50 lab members covering more than 31 agencies participated in the agriculture lab to design the initiatives and the implementation plans

ACT ANSAF

BAKHRESA

Bill & Melinda

Gates Foundation EPZA

MAFC MIT MLHHSD MLFD MVIWATA NARCO POPC PMO-

RALGRUBADA

SAGCOT SUA TIB TIC TPSF Techno

Serve

World

Bank

UDSM USAID

3

Abbreviations

� ACT - Agriculture Council of Tanzania� ANSAF - Agricultural Non State Actors

Forum� CCRO - Certificate of Customary Right of

Occupancy� COWABAMA - Collective warehouse based

marketing schemes� DP - Development Partner� EPZA - Export Processing Zones Authority� FBO - Farmer-Based Organisation� IO - Irrigators Organisation� KPI – Key Performance Indicator� LGA - Local Government Authority� M&E - Monitoring & Evaluation� MAFC- Ministry of Agriculture, Food

Security and Co-operatives� MDA - Ministries, Departments and

Agencies� MIT - Ministry of Industry and Trade

MLHHSD - Ministry of Lands, Housing and Human Settlement Development

� MVIWATA - Mtandao wa Vikundi vyaWakulima Tanzania

� NARCO - National Ranching Company� NEMC - National Environment

Management Council� NISC - National Investment Steering

Committee� NKRA – National Key Result Area� PDB - President Delivery Bureau� PMO-RALG - Prime Minister's Office -

Regional Administrative and Local Government

� POPC - President's Office, Planning Commission

� RUBADA - Rufiju Development Authority� RUDI - Rural Urban Development

Initiatives� SAGCOT - Southern Agricultural Growth

Corridor of Tanzania� TDV - Tanzania Development Vision � TIB- Tanzania Investment Bank� TIC - Tanzania Investment Centre� TPSF - Tanzania Private Sector

Foundation� UDSM - University of Dar Es Salaam

4

Contents

Context, case for change and analysis of problem

Results plan, timeline, quick wins/milestones

Budget

Closing

Minister’s KPIs

Overview of solutions

Governance structure

Stakeholder sign-off

5

Agriculture accounts for roughly 24% of GDP and employs 75% of the workforce

SOURCE: Kilimo Kwanza, ASDP, ASDS, CAADP Compact. CIA Factbook

Real GDP breakdown by sector Percent

Workforce breakdown by sectorPercent, 2009

With a strong majority of the workforce employed by agriculture, this sector will be critical to reducing poverty

Services

Industry

Agriculture

Other

5

100% =

Agriculture

Industry

Services

2009

20.3 million

employed

75

20

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010

Industry

Agriculture

Others

Services

8

6

15

Crops

Livestock

Hunting

And forestry

Fishing

2010

100% =

TZS 4.1 tril.

72

Out of

which

56% are

women

6

91% of agriculture land in use is driven by smallholders; only 9% of land is used commercially

SOURCE: National Sample Census of Agriculture 2007/2008

14 million hectaresSmallholders▪ Smallholders average farm

size is 0.2 to 2 hectares

▪ The main source of income

is sales of food crops

44 million hectaresArable land

1.5 million hectaresCommercial farming1

▪ There are 1,006 large

scale farms in Tanzania

with the average size of

1,107 hectares

1 Commercial farms are defined as land size 20 Ha and above

7

Food crops market value TZS bil

Maize Rice Sorghum Cassava

Cash crops market value TZS bil

Tobacco Coffee Cashew nuts Cotton

Subsistence farming dominates Tanzania’s rural agricultural sector, with maize being the major food crop

SOURCE: Ministry of Agriculture, Food Security and Co-operatives, Bank of Tanzania, Tanzania Revenue Authority, FAO Stats

2007 664

2008 929

2009 1,504

2010 1,664

2011 1,871

667

1,750

1,189

1,130

607 229

251

339

444

446

424

500

474

602

8305,240

4,340

4,475

3,326

3,556

1,128

1,461

1,700

886

875

843

807

789

768

861

1,857

1,549

1,464

1,972

1,797

2007 142

2008 212

2009 129

2010 201

2011 195

152

167

232

146

124

52

82

119

178

195

88

163

161

142

11094

61

55

51

51

57

35

69

44

121

75

79

92

93

163

267

369

201

55 130

xxx Production ‘000 MT

8

Maize YieldsMt / ha, 2011

Rice yields (paddy)Mt / ha, 2011

Yields are very low indicating high potential for growth

SOURCE: Ministry of Agriculture, Food Security and Co-operatives, Bank of Tanzania, Tanzania Revenue Authority, FAO Stats

1 Least developed countries

1.3

1.6

1.7

1.9

2.2

3.0

4.2

4.3

5.2

5.7

Vietnam

World

China

Kenya

LDC

Africa

Malawi

Inida

Brazil

Tanzania

2.4

3.0

3.5

3.5

4.0

4.4

5.5

2.0

LDC

India

Kenya

Tanzania

Africa

Thailand

World

Vietnam

9

Although Tanzania is considered to be generally food secure, regions within the country suffer from food insecurity

SOURCE: Tanzania Poverty and Human Development Report 2009; WFP Draft CFSVA 2010; CAADP Brief No. 4; Policy Forum

2009

Food insecure areas

identified by Rapid

Vulnerability survey in 2008

Food security and malnutrition

▪ Total food requirements are ~10.53 million tons/year; estimated 08/09 production was 10.8 million tons

▪ Food insecurity remains as high as 45% in some regions

▪ 4.1% of households have poor food consumption; 18.9% of households have borderline food consumption

▪ Tanzania’s food security relies heavily on domestic food production which is highly vulnerable to weather variability

Mara

Tanga

Lindi

MtwaraRuvuma

Iringa

Morogoro

Pwani

DodomaSingida

Rukwa

Mbeya

Kigoma

Tabora

Shinyanga

Kagera

Manyara

Dar Es Salaam

Zanzibar

Kilimanjaro

ArushaMwanza

10

Growth in the agricultural sector is hindered by a number of bottlenecks along the value chain and beyond

SOURCE: Team analysis

▪ Basic

infrastruc-

ture is

lacking

▪ Only 3% of

area

planted is

irrigated

▪ Poor

access to

inputs

results in

low yields

▪ 17% use

of

improved

seeds

▪ Only 9

kg/ha of

fertiliser

used

▪ Extension

service

staff

decreased

in

numbers

▪ 62% use

hand hoes

▪ Less than

1% have

access to

proper

storage

facilities

▪ Limited

aggregatio

n/ trading

▪ 15 step

process to

obtain a land

title

▪ Confusion

among land

implemen-

ting agencies

▪ Majority of

produce

for home

consump-

tion

▪ Limited

invest-

ment in

value

addition

(e.g., agro-

process-

ing)

Operational challenges

Infrastruc-ture

Land Inputs ProductionAggrega-tion/ distribution

Processing and retail

Enablers ▪ Lack or inappropriate agricultural financing mechanisms for households

▪ Lack of consistency and transparency in policy environment

▪ Lack of transparent information on market prices, process, incentives for both smallholder

farmers and potential commercial investors

▪ Inadequate coordination of sector-wide agriculture programs

11

The lab aims to address these challenges for Tanzania to achieve its TDV2025 vision

By 2015, to ensure increase in output and

the quality of all products for which the

country enjoys a comparative and

competitive advantage and position itself to become the food basket for the East Africa region and beyond

By 2025, to commercialise the sector to

ensure nationwide food security and food self-sufficiency, while increasing incomesthrough viable internal and international

trade

12

Contents



Budget

Closing

Minister’s KPIs




13

The Agriculture Lab focused on 3 objectives achieved through commercial farming and smallholder aggregation

Impact

Impact

Impact

Increase agriculture

GDP growth

Increase smallholder

income

Increase food

security

Social inclusion &

sustainability

Commercialfarming

Smallholderaggregation

SOURCE: Lab team analysis

14

We want to achieve Big Results Now by 2015

1 Not including area occupied by outgrowers

2 Second wave of priority crops to include horticulture, oil seeds

350,000 hectares1

new commercial farm land

330,000 hectares smallholder farm land enhanced

400,000smallholders involved in

commercial and smallholder

schemes

290,000 tonnesnew rice production

100,000 tonnesnew maize production

150,000 tonnessugar crop planted

Initial focus on 3 crops: initiative benefits extend throughout the

sector2


15

Excess supply will feed the large regional demand

Sudan

Ethiopia

Uganda

Somalia

Kenya

TanzaniaDemocratic Republic of the Congo

Zambia Malawi

Mozambique

Rwanda

SOURCE: ITC calculations based on UN COMTRADE statistics; WITS

470,000 MT of sugar currently imported annually

553,000 MT of maize currently imported annually

541,000 MT of rice currently imported annually

16

We have 3 big ideas to transform agriculture in Tanzania

Commercial farming

Smallholder aggregation

25 Commercial

farming deals for paddy and sugarcane

1

78 Professionally

managed collective rice irrigation and marketing schemes

2

275 Collective

warehouse based marketing schemes “COWABAMA”

3

17

Commercial farming


25 Commercial


1

78 Professionally


2

275 Collective


3

18

25 commercial farming deals for paddy and sugar have been identified

11

1 Bagomoyo site not included in list as deal is close to being complete

Pilot sites

Mara

Tanga

Lindi

MtwaraRuvuma

IringaMorogoro

Pwani

Dodoma

Singida

Rukwa

Mbeya

KigomaTabora

Shinyanga

Kagera

Manyara

Dar Es

Salaam

Zanzibar

Kilimanjaro

ArushaMwanza

A

B

C

D

F

G

H

I

J

K

Districts identified for commercial paddy and sugarcane Land size of nucleus farmCropSite

Site No

Land size of smallholder District

SugarcaneKumsenga/Kibwie3 20,000 5,000

SugarcaneKiberege4 20,000 10,000

PaddyKihansi,5 5,200 8,000

Paddy6 5,128 16,203

SugarcaneRuipa7 13,000 6,500

PaddyKisegese8 10,000 15,188

SugarcaneManda9 20,000 5,000

SugarcaneKisaki10 20,000 10,000

SugarcaneMkulazi11 50,000 25,000

SugarcaneMkulazi12 50,000 25,000

SugarcaneMvuha13 20,000 10,000

SugarcaneMahurungu14 3,000 2,000

SugarcaneIkongo15 12,000 3,000

SugarcanePangani16 3,200 1,200

PaddyLukulilo 8,000 4,000

SugarcaneMkongo18 22,000 7,000

SugarcaneMuhoro

17

19 20,000 16,000

PaddyRufiji Delta20 5,000 13,500

SugarcaneTawi/Utunge21 20,000 5,000

PaddyItete22 10,000 30,000

PaddyKilosa kwa mpepo23 5,000 18,000

PaddyMisegese24 5,000 15,000

PaddyNgohelanga25 6,000 15,000

SugarcaneKitengule1 16,000 2,000

SugarcaneKasulu2 20,000 2,000Kasulu

Kibondo

Kilombero

Ludewa

Morogoro

Mtwara

Musoma

Pangani

Rufiji

Ulanga

KaragweA

B

C

D

E

F

G

H

I

J

K

E

Mpanga-Ngalimila


19

We are doing things differently to ensure success11

Focus solving issues such

as land, extension, inputs

etc. across the sector

Focus on getting deals done and solving for

issues specific to sites

Agencies and ministries

working in silos and not

communicating well

Getting the right people from different agencies/ministries in

the room at the same time to work together

Working with government lens

Adopting investor’s lens

Investing only in things (e.g. equipment and

infrastructure)

Investing in people and increasing their capabilities

From… To…

20

Access to land and an enabling business environment are needed to ensure investments into 25 sites

11

▪ A temporary cross-agency team to accelerate

securing land title, building infrastructure and

conducting agro-ecological studies for 25 land

parcels

Create a Special Lands and Infrastructure Task Force

i

▪ Conduct “pre engagement” training to

educate communities on business, good

agriculture practices and farmer organization

Conduct community engagement

ii

Action Description Result

▪ Create standard meritocracy assessment criteria to award sites to investors

▪ Create prototype Term Sheet including

“investment incentive package”, terms and

conditions and KPIs

Develop standard tender assessment criteria and Term Sheet

iii

▪ Dedicated unit within TIC responsible for

attracting investors, coordinating applications,

addressing complains and monitoring

compliance

Uplift mandate of TIC and Investor Complain Bureau

iv

Together with selected interventions – ensuring availability of rice seed and developing industry associations – we believe that 25 deals can be pushed through the pipeline by 2015

▪ 25 sites ready for investment

▪ CCROs for smallholders

▪ Communities readyfor engagement with investors

▪ 25 high quality commercial agriculture investors

▪ Efficient “one stop center” for investors, and avenue to address investor issues

21

The new land task force will conduct at least 4 visits to each site to prepare the community for incoming investors

iiii

Visit no. Purpose of visit Length of visit Team conducting visit

▪ Meet with District Council and Village Assembly to inform them of investment plans

▪ Reconnaissance survey to confirm availability of land and infrastructure needs

8 days ▪ Subset of Task Force

▪ Verification of Land Use Plans▪ Community consultant on Customary

Certificate of Right of Occupancy▪ Demarcate site and erect beacons

7 days ▪ Subset of Task Force▪ Technical team

Conduct▪ Soil survey▪ Environmental analysis▪ Social analysis▪ Training needs assessment

14 days ▪ Soil survey team▪ Environmental

analysis team▪ Social analysis team▪ Training needs team

“Pre-engagement” training on the issues of ▪ Environmental sustainability▪ Conducting businesses▪ Farmer organization▪ Good agriculture practices

16 days ▪ Consultant team

1

2

3

4

Additional visit to conduct other activities (e.g. compensation and resettlement) will take place as necessary

22

Existing agencies must be improved to effectively facilitate investments

iviv

TO…Proposed changes

Investors Complaint Bureau

FROM…Current mandate

▪ Bureau disciplined to meet monthly ▪ Meets on an ad hoc basis, subject to the Prime Minister’s availability

▪ Implement online tracking system to show complains that need to be addressed and how long they have been in the pipeline

▪ No transparency on complaints in the pipeline that needs to be addressed

▪ No mandate to grant approvals or oversee applications in line ministries

▪ Unit implements online tracking system with line ministries to show where applications are sitting, relevant person in charge and how long application has been pending

▪ A facilitation body that assists investors in necessary applications

Tanzania Investment Centre

▪ Dedicated unit, overseen by PDB, to receive and take ownership of all applications (forwards them to line ministries and ensures that applications are processed in due time)

▪ Current “14 day system” that automatically grants approval if line ministries do not respond within 14 days is not enforced

▪ Automatically raises issues to Investors Complain Bureau if applications have taken longer than allocated time

▪ Raises other complaints e.g. sudden policy changes, to Investors Complain Bureau


23

v

The Agriculture Lab has already resolved some of the bottlenecks to closing the Bagamoyo Eco-Energy project

11

Large scale iconic project in Tanzania,

with high potential impact

▪ Production of 150,000T of sugar,

11,000cbm ethanol and 32MW electricity ▪ 2,300 direct jobs, 10,000 indirect jobs

▪ 2,000 outgrowers producing about 300-

400tonnes of sugar

At risk because of bureaucracy and Government inefficiency

The lab used a “pressure cooker” to resolve issues

Ensured AG Chambers provided immediate feedback on Land lease and Right of Occupancy

Negotiated water rights from 5 years to 30 years on behalf of Investor

Part of working group to accelerate Implementation and Shareholder’s Agreement

Raised issue to the President to increase pressure and awareness

SOURCE: Eco Energy

24

Commercial farming


25 Commercial


1

78 Professionally


2

275 Collective


3

25

78 rice smallholder irrigation sites have been identifiedto be professionally managed

2

Existing rice irrigation schemes have a lot of potential as farmers are organisedand infrastructure is already in place

However … WHAT’S DIFFERENT?

▪ Capacity of the Irrigators Organisation(IO) to properly manage irrigation services is low

▪ A professional private service provider builds capacity of the IO

▪ Irrigation infrastructure needs rehabilitation

▪ Irrigation infrastructure rehabilitated and extended for identified schemes

▪ No support for farmers and their ability

to access inputs, extension services and

finances is low

▪ A full range of services required by the farmers is provided and managed by the IO

▪ No marketing structures ▪ Establishment of warehouses and linkages to buyers managed by IO

Yields and incomes are low Improved yields and higher incomes


26

The smallholder farmers will have a ‘one stop shop’ for all the services they require

2

Existing structure Proposed model

▪ IO services are boosted by professional management from private service provider

▪ Farmers can rely on IO for support

▪ IO currently only manages irrigation services

▪ Farmers do not receive support, and must fend for themselves

Input supplier

Buyer/processors

Extension services Warehousing

Financial services

Aggregated smallholder

farmers

Irrigators Organisation(IO)supported byProfessional management

Input supplier

Extension services

Financial services

Warehousing

Buyers/processors

Smallholder farmers


27

The professional service provider will play a catalytic role in transforming and building capabilities in the Irrigators Organisation

2

One contracted Professional Service Provider per District

Irrigators Organisation

▪ Leads the IO team

▪ Organises bulk purchase of inputs

▪ Identifies and engages mechanization services

▪ Links IOs to financial institutions

▪ Establishes contract with processors, branding companies and buyers

▪ Link Ios to the Commodity Exchange(once established)

Extension Officer

▪ Establishes farmers field school

▪ Trains farmers on Good Agricultural Practices (GAP)

Irrigation Technician

▪ Supervises management of irrigation infrastructure and irrigation water utilisation

Technical Manager

Warehouse Operator

▪ Manages warehouse operation

Professional service provider aims to build IO capability to take over management of scheme after 2 years


28

We have selected the following districts to pilot the smallholder irrigation schemes for paddy

4.1

3.6

4.2

4.3

3.9

3.9

3.4

4.2

Iringa R

Kilombero

Kilosa

Kyela

Mbarali

MorogoroR

MpandaDC

Mvomero

Smallholder paddy pilot districts

Mpanda

Mbarali

Kyela

Iringa Rural

Kilombero

MorogoroRuralMorogoroRural

Mvomero Kilosa

11

8

8

2

35

4

7

3

Iringa R

Kilombero

Kilosa

Kyela

Mbarali

Morogoro R

Mpanda DC

Mvomero

Number of schemes Current yield (MT/ha)

2


29

1 Based on assumption that farmer’s consumption is fired at 1 ton

2 Based on recommended seed and fertilizer usage

1.60.8Amount consumed1 (tons/ha):

6.43.2Marketed amount (tons/ha):

800800Farm-gate price (‘000 TZS/ton):

5,1202,560Cash revenue (‘000 TZS/ha):

950 2,360Cash cost2 (‘000/ha):

1,610 2,760Cash profit (‘000 TZS/ha):

Yield (tons/ha): 8.04.0

Yield of ~8 tons per ha

Yield of ~4 tons per ha

Income statement for a smallholder rice farmer What’s different?Before

By 2015, yield in these schemes will increase to 8MT/ha2

71%


30

Commercial farming


25 Commercial


1

78 Professionally


2

275 Collective


3

31

275 collective warehouse based marketing schemes will provide farmers with access to the market

Maize farmers lose out to the market because of high post-harvest losses and low farm gate prices …

Farmers receive a higher farm gate price, maize production will be more profitable thereby encouraging them to invest more to grow their business

WHAT’S DIFFERENT? … we believe that developing a ‘demand pull’ model is essential to increase smallholder incomes

Professional Service Provider organises and trains farmers, manages warehouse operations, facilitates links to key services and links farmers to buyers

3

Existing warehouses are rehabilitated


32

Farmers aggregate around a collective warehouse based marketing scheme “COWABAMA”…

MAFC

▪ Assessment and profiling of existing warehouses

▪ Rehabilitate warehouses

Financial institutions

▪ Enables smallholder financing using stock as collateral

Input suppliers

▪ Warehouse facilitates bulk purchases of inputs

Farmer Based Organisations Village warehouses

▪ Operated by a trained manager

▪ Provides modern sorting to improve the quality of grain

▪ Provides better storage facilities

Marketintelligence platform

▪ Enables warehouses and buyers to share trade information

▪ Increases farmer bargaining power through bulk and seasonal sales

Local andRegional buyers

▪ Linked to aggregated quantities of product

▪ Deposit grain in warehouse

▪ Make collective decisions on sales

3


33

… kick started by a Service Provider

MAFC▪ Contracts Service Provider▪ Conducts monitoring and

evaluation of Service Provider

Financial institutions

▪ Facilitate link between FBOs and financial institutions

Input suppliers

▪ Facilitate bulk purchases of inputs on behalf of FBO

Farmer Based Organisations Village warehouses

▪ Recruit and train warehouse manager

▪ Support and supervise performance of warehouse operations

Marketintelligence platform

▪ Perform market analysis

▪ Develop regional market intelligence platform

Local andRegional buyers

▪ Sensitise farmers about the scheme

▪ Assist willing farmers to form FBO

▪ Provide training for FBO leaders

Service Provider

▪ Identify and negotiate with buyers

Service Provider builds local capabilities to enable the FBO to graduate and eventually run the

scheme themselves

3


34

We have selected 8 districts covering 165,000 smallholders

Districta

Area cultiva-ted (‘000 ha)

Current produ-ction

Number of ware-houses

Average ware-house capacity (tons)

Total number of households to be impacted

Iringa 63.1 87.8 16 200 - 350 9,600

Mufindi 66.4 93.8 35 300 21,000

Njombe 76.3 89.2 35 300 21,000

Mbeya 52.7 89.2 20 300 12,000

Mbozi 68.9 109.1 60 300 36,000

Sumbawanga

76.5 145.1 37 300 22,200

Mpanda 55.8 98.3 18 300 10,800

Songea 33.2 69.1 54 300 32,400

492.9 781.6 275 300 165,000

Smallholder maize pilot districts

Mpanda

Iringa

RuralSumbawanga

Rural

Mbozi

Mbeya

Rural

Mufindi

Njombe

Songea

Rural

3


35

By 2015, farmgate price will increase by 50% and yield to 2.5 tons per ha

1 Based on assumption that farmer’s consumption is fired at 1 ton

2 Based on recommended seed and fertilizer usage

50%

1.01.0Amount consumed1 (tons/ha):

1.50.3Marketed amount (tons/ha):

450300Farm-gate price (‘000 TZS/ton):

67590Cash revenue (‘000 TZS/ha):

305 500Cash cost2 (‘000/ha):

-215 175 Cash profit (‘000 TZS/ha):

Yield (tons/ha): 2.51.3

3

Yield of ~2.5 tons per ha

Yield of ~1.3 tons per ha

Income statement for a smallholder maize farmer What’s different?Before


36

Contents



Budget

Closing

Minister’s KPIs




37

Results schedule for first 6 to 12 months

Jul 2013

Oct2013

Jan 2014

Apr2014

Jul2014

Set up interim ‘Land and Infrastructure task force’ to accelerate process of acquiring titles to 5 pilot sites

Set up Special Land and Infra-structure Task Force

Close contracts with investors on 5 sites

Prepared proposal for maize warehouses and secured potential start up resources

Pushed Bagamoyodeal, hosted negotiations and fast tracked key documents

78 rice irrigation schemes identified and mapped in detail

Finalise tender process, assessment criteria and standard term sheet for investors

Private service provider for rice schemes contracted

Contract COWABAMAservice providerComplete assessment of maize warehouses and farmer profiling

Completion of rehabili-tationon 100 warehouses100 farmer organisationsformed

Complete infra-structure construction on 5 sites

Completed construction of rice irrigation and warehouse infrastructure

Obtain title for 5 sites

In the lab

Commercial farming

Smallholder aggregation models


38

Critical activities to enable processing of the 25 deals must start immediately

11

AugJulJunMayApr

201520142013

NovSepAugJunNovOct JulApr OctMar May DecAprMarFebJanDecNovOctSepMaySep JunFebJanDec AugJul

– Upscale TIC and Investors'

Complaint Bureau

▪ Obtain land title and build infrastructure

– Create standard incentive

package and term sheet

▪ Attract and retain investors

▪ Ensure seed availability

▪ Conduct community engagement

▪ Ensure soil and water suitability

– Construction of infrastructure

– Finalize and syndicate budget

needed for infrastructure

development

– Titling of farm lands

– Gazetment of area to change

status from village land to

general land

– M&E of investors

– Conduct field visits

– Finalize Land for Equity Principles

and Guidelines for dissemination

to stakeholders

– Create a Special land and

Infrastructure task force

– Tender and award sites

Activity

– Compensation and Resettlement


39

Most activities to establish the smallholder rice irrigation and warehouse scheme will occur in the coming year

22

Q2

2015

Q4

2013

Q2Q1 Q3 Q3Q2

2014

Q1Q4Q3

LGA▪ Construction of

infrastructure

Ministry of Lands▪ Land use planning

and titiling

MAFC, LGA▪ Implementation of model

▪ Warehouses management

and market linkages

▪ Inclusion of rice in

commodity exchange

Private Service

Provider

Ministry of

Industry and Trade

Key Activities Responsible

Executive

Committee (IO),

Technical Manager

▪ Contracting input

suppliers, mechanisation

and financial institutions

Private Service

Provider

▪ Capacity building

of extension

service providers

MAFC, LGA▪ Sensitisation of model


40

The implementation of collective warehouse based marketing system will take place in two waves

DecAug Mar AprSep NovOct FebJanDec MayAprMarJul NovOctMayJun JulJul AugJun SepMayApr

201520142013

FebJun JanDecNovOctSepAugActivity

Changes in enabling environment

Monitoring and evaluation

Service Provider facilitates trade

Inception meeting with

key stakeholders

Service Provider

recruits warehouse manager

Farmers organised into FBOs

Service Provider sensitises

and mobilises

farmers

MAFC tenders for

Service Provider

MAFC tenders contract

for assessment

and profiling warehouses

Consultant undertakes

assessment and profiling

MAFC tenders for warehouse

rehabilitation and equipment

supply

Service Provider

supervises warehouse operations

Wave 1 – 100 warehouses

Wave 2 – 175 warehouses3


41

Contents



Budget

Closing

Minister’s KPIs




42

The overall programme will cost over TZS 14 Trillion over 3 years …

No

TZS million

1

2

3

4

Initiatives

Commercial farms pilot deals

(x5)

Commercial farms roll out

deals (x20)

Smallholder rice irrigation

schemes (x78)

Smallholder collective

marketing schemes (x275)

RE

1,196

4,843

40,761

19,505

66,305

DE

312,623

1,350,015

253,975

8,893

1,925,505

2,687,961

11,266,176

324,797

31,337

14,310,272

2,374,143

9,911,318

30,061

2,939

12,318,461

TotalPrivate


43

… the bulk of which will be funded by the Private Sector

TotalBudget

14,310,271

14,243,966

66,30528,465

Development Partners

Govt of Tanzania

539,236


1,386,269

PrivateSector

12,318,461

Govt of Tanzania

37,841

Total Dev.Required

Total Rec.Required

RequestedRec.

RequestedDev.

Major spend items relate to construction of basic infrastructure for commercial farm deals and irrigation infrastructure for smallholder schemes

Mil TZS


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45

Initiative indicators

KPI description

Rice

Sugar

Maize

Unit 2013 Target 2014 Target 2015 Target

▪ Number of smallholders participating in BRN schemes

# '000 0 20 138

▪ Average increase in income per smallholder TZS mil/ha 1.6 2.2 2.8

▪ Increase in yield MT/ha 4 6 8

▪ Increase in production MT 120 290

▪ Increased area of commercialized farm land ha 33000 130000 45000

▪ Number of smallholders participating in BRNschemes

# '000 0 28 110

▪ Increase in production ('000 MT) MT 0 0 150000

▪ Increased area of commercialised farm land ha 90000 185000 114000

▪ Number of smallholders participating in BRN schemes

# '000 0 70 165

▪ Average increase in income per smallholder MT Baseline pending

30% 50%

▪ Increase in production (MT) TZS'000 0 0 100000

▪ Increase in quantity of grain sold %/MT baseline 10% 20%

▪ Increase in investment in improved inputs %/MT baseline 10% 20%


46

Initiative indicators

KPI description Unit 2013 Target 2014 Target 2015 Target

25 Commercial farming deals

78 Smallholder rice irrigation and warehousing schemes

275 Collective warehouse based marketing schemes

▪ Number of land titles secured # 5 20

▪ Number of sites with infrastructure construction completed

# 5 20

▪ Number of successful investments secured through open tender

# 15 10

▪ Number of schemes operational # 0 78 78

▪ Number of warehouses operational # 0 100 275


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Post lab : Governance Structure

Owners:

▪ MAFC

▪ PMO-RALG

Rice irrigation and warehousing

Members:▪ Minister of Agriculture

▪ Permanent Secretary MAFC

▪ Permanent Secretary of PMO

▪ Permanent Secretary of PMO-RALG

▪ Permanent Secretary of MLHHSD

▪ Permanent Secretary of MIT

▪ Permanent secretary of Ministry of Finance

Members:▪ Minister of Agriculture

▪ Permanent Secretary MAFC

▪ Permanent Secretary of PMO

▪ Permanent Secretary of PMO-RALG

▪ Permanent Secretary of MLHHSD

▪ Permanent Secretary of MIT

▪ Permanent secretary of Ministry of Finance

NKRA Steering CommitteeChair: PresidentDeputy Chair: Minister of Agriculture

NKRA Steering Committee level: Meet once a month

▪ Workstream / initiative owners to provide progress updates

▪ Make decisions and provides guidance / direction to the team

▪ Resolves conflicts

▪ Oversees all other matters related to NKRA

Working level:Meet more frequently (i.e. fortnightly)

▪ Liaise directly with Ministry’s Delivery Unit and respective PDBdirectors

▪ TIC Executive Director

▪ Exec Secretary of POPC

Owners:

▪ MAFC

▪ MLHSSD

▪ PMO

▪ TIC

Commercial farming

Owners:

▪ MAFC

▪ MIT

▪ PMO-RALG

Collective warehousing

Secretariat:Ministry Delivery Unit

(supported by PDB)

Secretariat:Ministry Delivery Unit

(supported by PDB)

EXAMPLE


494

The Agriculture Delivery Agency is a special initiative and will be the nexus between investors, aggregators, communities, smallholders, government and donors



Communities and Smallholders Investors and Aggregators

Government

Agriculture Delivery Agency

l

▪ Works with communities to define and formalise their land

▪ Supports communities and smallholders in their negotiations with investors and aggregators

▪ Arbitrates in disputes with investors and aggregators

▪ Advocates for policy changes needed by stakeholders

▪ Facilitates taxes and duties

▪ Feeds the NKRAs into the overall policy planning process

▪ Works with DPs to get financial support for initiatives

▪ Uses DP links to find investors

▪ Uses DP to find technical expertise

▪ Helps investors secure land and oversees community engagement

▪ Identifies aggregators and enforces delivery contracts

▪ Arbitrates in disputes with communities and smallholders

50

Special request – legislative items to be considered

▪ Accelerate establishment of Agriculture Delivery Agency

▪ Strengthen capacity of the key institutions (MDA) responsible for implementation of the Ag NKRA

▪ Formalise coordination of multisectoral stakeholders related to land

▪ Accelerate establishment of commodity exchange

▪ Ensure minimum agriculture budget commitment of 10%

▪ Abolish District produce cess

▪ Develop mechanism to ensure predictability of policy

▪ Abolish export ban and importation of duty free food products

▪ Rationalise mushrooming regulatory institutions

▪ Strengthen quality standard enforcement

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Initiatives Stakeholder 1 Stakeholder 2 Stakeholder 3 Stakeholder 4 Stakeholder 5

Commercial

farming

Hon. Eng Christopher Chiza

Minister

Ministry of Agriculture, Food

Security and Co-operatives

Mr. Mohamed S. Muya

Permanent Secretary



Mr. P. Rutabanzibwa

Permanent Secretary

Ministry of Lands, Housing

&Human Settlements

Development

Mr. Peniel Lyimo

Pemanent Secretray

Prime Minister’s Office

Mr. Raymond Mbilinyi

Executive Director

Tanzania Investment Centre

Smallholder

rice irrigation

schemes


Minister



Mr. Mohamed S. Muya

Permanent Secretary



Collective

warehouse

maize

marketing

schemes


Minister



Mr. Mohamed S. Muya

Permanent Secretary



Ms. Joyce K.G. Mapunjo

Permanent Secretary

Ministry of Industry and Trade

Mr. Jumanne Sagini

Permanent Secretary

PMO-RALG

BIG RESULTS NOW LAB: STAKEHOLDER SIGNBIG RESULTS NOW LAB: STAKEHOLDER SIGNBIG RESULTS NOW LAB: STAKEHOLDER SIGNBIG RESULTS NOW LAB: STAKEHOLDER SIGN----OFFOFFOFFOFFBIG RESULTS NOW LAB: STAKEHOLDER SIGNBIG RESULTS NOW LAB: STAKEHOLDER SIGNBIG RESULTS NOW LAB: STAKEHOLDER SIGNBIG RESULTS NOW LAB: STAKEHOLDER SIGN----OFFOFFOFFOFF

I hereby affirm my support for the findings of the Agriculture Lab (conducted between February 22, 2013 – April

12, 2013 and endorse the lab’s recommended initiatives and implementation programme. I also hereby pledge the

efforts of my ministry/department/agency/organization to achieving the initiatives and outcomes detailed in this

report

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“We felt most privileged to have been chosen to be part of this important process for the development of our country. The challenge now remains to ensure that the lab outputs are implemented, not only in time, but also surpass the set targets.

During the lab process, lab members reiterated the need to ensure compliance to the agreed schedule of activities, availability of resources and the national leadership time and dedication for the lab outputs.

The lab was reassured of such commitment by the Government from the onset of the process because of it being granted a privilege of having its own Agriculture Delivery Agency (ADA).

We pledge our commitment to deliver on the initiatives and look forward to the transformation we envisage for Tanzania”

- Geoffrey Kirenga, Agriculture Lab Leader

Documents

Agriculture Lab - tzdpg.or.tz · 1 Executive summary Agriculture contributes 24% to the real GDP of Tanzania, and accounts for 75% of workforce employment.However, growth in the sector