Livestock Investment Opportunities

Transcription

UNITED REPUBLIC OF TANZANIA
MINISTRY OF LIVESTOCK AND FISHERIES DEVELOPMENT
INVESTMENT OPPORTUNITIES IN LIVESTOCK INDUSTRY
DECEMBER, 2011
TABLE OF CONTENTS
1.0 INTRODUCTION ------------------------------------------------------------------------------------ 1
1.1 Country Profile -------------------------------------------------------------------------------------- 1
1.2 Climate ----------------------------------------------------------------------------------------------- 1
1.3 Soil Type and Vegetation -------------------------------------------------------------------------- 1
1.4 Policy and Legal Framework ---------------------------------------------------------------------- 1
1.4.1 National Livestock Policy and Legal Framework ------------------------------------------ 2
1.5 Importance of the Livestock Industry ----------------------------------------------------------- 2
2.0
2.1
2.2
INVESTMENT ENVIRONMENT -------------------------------------------------------------------- 3
Political Stability and Related Factors ----------------------------------------------------------- 3
Market Access --------------------------------------------------------------------------------------- 4
3.0 LIVESTOCK INDUSTRIES RESOURCES ---------------------------------------------------------- 4
3.1 NARCO Ranches, Multiplication Units and Other by Products ------------------------------- 5
3.1.1 NARCO Ranches ------------------------------------------------------------------------------- 5
3.1.2 Multiplication Units ---------------------------------------------------------------------------- 5
3.1.3 The Hides, Skins and Other by Products -------------------------------------------------- 6
4.0 POTENTIAL AREAS OF INVESTMENT ------------------------------------------------------------ 6
4.1 The National Ranching Company (NARCO) ----------------------------------------------------- 6
4.1.1 Kongwa Ranch --------------------------------------------------------------------------------- 6
4.1.2 Mzeri Ranch ------------------------------------------------------------------------------------ 8
4.1.3 Ruvu Ranch------------------------------------------------------------------------------------10
4.1.4 Mkata Ranch ----------------------------------------------------------------------------------11
4.1.5 Kikulula Ranching Complex -----------------------------------------------------------------12
4.1.6 Missenyi Ranch -------------------------------------------------------------------------------14
4.1.7 West Kilimanjaro------------------------------------------------------------------------------15
4.1.8 Kalambo Ranch -------------------------------------------------------------------------------17
4.1.9 Privately Owned Ranches -------------------------------------------------------------------18
4.2 Other Animal Production Resources-------------------------------------------------------------19
4.3 Livestock Multiplication Units (LMUs) -----------------------------------------------------------21
4.3.1 Mabuki LMU -----------------------------------------------------------------------------------21
4.3.2 Sao Hill LMU -----------------------------------------------------------------------------------21
4.3.3 Nangaramo LMU ------------------------------------------------------------------------------21
4.3.4 Kitulo Dairy Farm -----------------------------------------------------------------------------21
4.3.5 Ngerengere LMU ------------------------------------------------------------------------------21
4.4 Leather Industry -----------------------------------------------------------------------------------22
4.4.1 Tanning ----------------------------------------------------------------------------------------22
4.5 Other Livestock By-products ---------------------------------------------------------------------24
4.6 Animal Feeds ---------------------------------------------------------------------------------------25
4.7 Central Veterinary Laboratory -------------------------------------------------------------------28
4.8 Livestock Products, Abattoirs & Meat Processing Plants-------------------------------------29
4.9 The Dairy Industry---------------------------------------------------------------------------------31
5.0
CONCLUSION ---------------------------------------------------------------------------------------37
i
INVESTMENT OPPORTUNITIES IN THE LIVESTOCK INDUSTRY
1.0
INTRODUCTION
1.1 Country Profile
Tanzania is located between longitude 290 and 410 East and Latitude 10 and 120 South.
The country is bordering Kenya and Uganda to the North; Rwanda, Burundi and
Democratic Republic of Congo to the West; Zambia, Malawi and Mozambique to the South
and the Indian Ocean to the East. It covers an area of 94.52 million hectares of which
88.6 million hectares is land mass and 5.92 million hectares is covered by water.
Currently, the country has a human population estimated at 40 million.
1.2 Climate
Generally, Tanzania has a tropical type of climate. However, in the highlands,
temperatures range between 100C and 200C during the cool and hot seasons,
respectively. The rest of the country has temperatures which hardly go below 200C. The
hottest period spreads between November and February (250C - 310C) while the coolest
period occurs between May and August (150C - 200C). It has two rainfall regimes, a
unimodal (December - April) and a bimodal (October -December and March - May). The
former is experienced in the Southern, South – West, Central and Western parts of the
country, and the later is found in the North and Northern Coast. In the bimodal regime,
the March-May rains are referred to as the long rains (Masika), whereas the OctoberDecember rains are generally known as short rains (Vuli).
1.3 Soil Type and Vegetation
Most soils in Tanzania are reddish-brown derived from the volcanic rocks. Other types
include mbuga and alluvial soils which have good potential for agricultural production. The
interior plateau is covered with red and yellow tropical loams of moderate fertility. The
natural vegetation of the country has been considerably modified by human occupation.
In the South and West central areas there are long tracts of woodland covering about
30% of the country, while on the uplands there are smaller but important areas of tropical
rain forests (0.5% of the country). Clearly marked attitudinal variations in vegetation
occur around the upland areas and some distinctive mountain flora is found.
1.4 Policy and Legal Framework
Tanzania has an open market economy. However, the Government role remains to
formulate conducive policies and enabling legal frameworks which pave way for private
sector growth and development. In the process of implementing these policies, among
other things, Tanzania has launched KILIMO KWANZA resolve. This initiative aims at
facilitating the involvement of the Private Sector in agricultural activities which includes
livestock farming. Thus, KILIMO KWANZA resolve is a government’s commitment in
promoting investment in the livestock sector.
In order to promote private investment in the country, there has been established a
Tanzania Investment Centre (TIC). TIC is the focal point for all investors’ inquiries and
facilitation of project start-ups, encourage joint venture investment and dissemination of
investment information. It also serves as a one-stop centre for providing information
about land acquisition, taxes, exemptions and other investment incentives packages.
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1.4.1 National Livestock Policy and Legal Framework
The National Livestock Policy (2006) aims at stimulating development of livestock industry
in order to exploit the available potentials to increase its contribution to the national
economy while ensuring environmental conservation. Secondly, it recognizes the
importance of the private sector in promoting commercialized livestock industry. In
addition, the policy is amongst many of the initiatives that invites and opens wide the
door to the private sector investments. Various acts have been enacted for effective policy
implementation and regulation of the industry; these include Veterinary Act No. 16 of
2003; Animal Diseases Act No. 17 of 2003; Dairy Industry Act No. 8 of 2004; Meat
Industry Act No. 10 of 2006; Hides and Skin Act No. 18 of 2008; Animal Welfare Act No.
19 of 2008; Livestock Identification, Registration and Traceability Act No. 12 of 2010 and
Grazing-land and Animal Feed Resources Act No. 13 of 2010.
(i) Meat Industry Act No. 10 of 2006
The Act supports Meat industry restructuring through establishment of proper
organization and coordination of the meat industry stakeholders for the development
of the industry. It also regulates the production of the meat and meat
products within the meat value chain to ensure quality and standards of meat
and meat products.
(ii) Animal Diseases Act No. 17 of 2003
The Act makes provision for the surveillance, control and prevention of animal
diseases and assurance of safety and quality of livestock products. It prescribes
measures to be undertaken in the event of a disease outbreak, regulation of
movement of animals and their products including trade, as well as public health
measures to prevent spread of diseases from animals to humans.
(iii) Animal Welfare Act Cap 154 (No 19 of 2008) (R.E 2010)
Provides for the humane care of animals and incidental matters.
(iv) The Livestock Identification Registration and Traceability Act No 12
Provides for the establishment of the national Livestock Identification Registration
and Traceability (LIRT) System for the purpose of disease control, market
accessibility, theft prevention and food safety.
1.5 Importance of the Livestock Industry
Tanzania is endowed with abundant natural resources which include land and a huge
livestock resource base. Out of 88.6 million hectares of land; 60 million ha are
rangelands with a carrying capacity of up to 20 million Livestock Unit (LU) and
providing over 90% of the feed resource for livestock. The livestock resources
include 21.3 million cattle, 15.2 million goats, 6.4 million sheep. Other livestock kept
include 1.9 million pigs, 35 million traditional chickens and 23 million layers and
broilers (2010). Over 70% of livestock in the country is found in the lake, northern
and central zones (Figure 1). These animals are kept under four farming systems
which are; mixed farming, agro-pastoral, pastoral and commercial.
The country ranks third in Africa in terms of cattle numbers after Ethiopia and
Sudan. In 2009, the livestock sector contributed 4.0% of the GDP, of which 40%
came from beef, 30% dairy and the remaining 30% from other livestock products.
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Over 98% of cattle are of indigenous breed, mainly Tanzania Shorthorn Zebu (TSZ)
that are known for their ability to survive and are productive even under harsh
environment with poor feed resources and diseases challenge.
Figure 1:
Source: MLFD 2011
Investment potentials in the livestock sector exist in the meat, dairy, hides and
skins, animal feeds; and veterinary biological and pharmaceuticals.
2.0 INVESTMENT ENVIRONMENT
2.1 Political Stability and Related Factors
Tanzania has enjoyed political stability for about half a century since independence.
This is due to the existence of democratic institutions which have contributed
effectively towards good governance, human rights observance; rule of law; ethnic
and diversity stability. Tanzania is, also, a signatory to various international
conventions and protocols which, among others, call for observance of issues on
human rights, good governance, gender and environment.
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2.2 Market Access
With the estimated 40 million people, Tanzania offers sufficient market for
agricultural products and in particular livestock and livestock products. The national
economy has been growing steadily at around 5–6% annually between 2005 – 2009.
In addition, to the domestic market, the East African Community (EAC), comprising
Kenya, Uganda, Rwanda, Burundi and Tanzania offers potential market for investors.
Beyond the EAC, there are at least three other markets to which investors in
Tanzania have access. One is the Southern African Development Community (SADC)
with its 215 million consumers; another is the European Union, to which Tanzanian
exports have access arrangement under the EU’s Everything But Arms (EBA)
initiative; and the third is the United States, to which Tanzania has access under the
provisions of the African Growth and Opportunity Act (AGOA). Also, Tanzania has
seaboard, inland water ports; land and air links which provide it with reliable access
to export markets.
3.0 LIVESTOCK INDUSTRY RESOURCES
The meat industry is one of the important components in the livestock sector.
Average meat production in 2010/2011 was estimated at 503,496 tones. Given the
human population of Tanzania, that currently stands at 40 million and taking into
consideration that FAO recommends 50 kilograms per capital consumption against
the actual consumption of 12 kg therefore, there is sufficient demand for meat in the
country. Most of the meat produced comes from indigenous cattle, sheep and goats.
In addition, there is also a demand for investment in quality meat production to
meet mainly requirements of the growing number of middle-income consumers,
tourist hotels, mining centres and supermarkets in the country and for export.
Currently, the country is exporting live animals and meat to foreign markets such as
The Democratic Republic of Congo (DRC), Comoro and in the Middle East (Kuwait,
United Arab Emirates and Oman). For instance, in 2010/2011, a total of 2,970 cattle,
657 goats and 403.3 tones of meat worth Tshs 1.6 were exported. Meat processing
is not well developed with relatively few meat processing facilities such as Happy
Sausage (Arusha), Health sausage, (Arusha), TanMeat Company (Dar es Salaam),
Mkuza (Coast), Interchick (Dar es Salaam), VETA Dodoma (Dodoma), Manyara
Ranch (Arusha), etc. Recent initiatives in attracting investment in the meat
processing industry have resulted into the establishment of abattoirs in Dodoma
(Tanzania Meat Company), Morogoro (Tanzania Pride Meat) and Rukwa
(Sumbawanga Agricultural and Animal Feeds Industry). The installed slaughter
capacity of these abattoirs ranges from 150 to 200 animals per day.
Investment opportunities in the meat industry exist in the following areas;
(i) Going into joint venture with National Ranching Company (NARCO) and other
privately owned ranches to modernize the existing ranches;
(ii) To invest in the establishment of new ranches (cattle, sheep, goats) and
farms (poultry and piggery);
(iii) Feed-lot/fattening programmes; and
(iv) Slaughtering and processing.
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3.1 NARCO Ranches, Multiplication Units and Other by Products
3.1.1 NARCO Ranches
The National Ranching Company (NARCO) owns a total of 519,453 hectares of land.
Out of these, NARCO operates a total of 8 ranches located in 7 regions of mainland
Tanzania (Figure 2), which together cover an area of 230,384 hectares with carrying
capacity of 80,000 to 90,000 cattle. However, the area currently holds a total of
27,619 cattle, 1,665 sheep and 978 goats (MLFD, 2010). The rest of the area, which
is 289,069 hectares, has been sub divided into 124 small ranches and subleased to
Tanzanian investors. The production coefficients of NARCO ranches are relatively
good compared to other commercial ranches in the Tropics. However, the ranches
are expected perform to the standard which are Conception rate (85%), Calving rate
(80 %), Mortality rate (5 %), Weaning rate (95 %) and off take rate (25%).
There is a great potential for joint venture investment in main ranches and with
individual operators. Also, investors are invited to participate in the construction and
operation of Ruvu abattoir and its processing plant. The installed slaughter capacity
of this abattoir is 800 cattle and 400 goats/sheep per day.
Figure 2 NARCO RANCHES
Source: MLFD (2010)
3.1.2 Multiplication Units
There are ample opportunities in investing in livestock multiplication to meet the
increasing demand of the improved livestock (Cattle, goats, sheep and pigs,).
Currently, production of the improved livestock concentrates on cattle where 10,000
dairy heifers are produced annually from small scale dairy producers and
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government owned farms. Currently, capacity of livestock multiplication under the
government is estimated to 624 heifers annually. The national demand for these
dairy heifers is about 50,000. This demand is higher than the supply, a situation
which necessitates investment in the production of improved heifers to the tune of
40,000 heifers per year. There is an opportunity to establish privately owned
livestock multiplication units in Tabora, Manyara, Tanga, Morogoro, Coast, Lindi,
Rukwa na Kigoma where there is an ample land and favourable environment for
livestock farming.
These multiplication units were established for the purposes of producing quality
crossbred livestock for distribution to smallholder farmers and other commercial
farms. Steers and bulls from these units are a source of quality animals for fattening.
The holding capacity of the five farms under government is about 20,000 heads of
cattle (Mabuki - 6,000, Sao Hill -3,000, Nangaramo -4,000, Kitulo -3,500 and
Ngerengere -3,500).
3.1.3 The Hides, Skins and Other by Products
The Hides, Skins, Leather and other livestock by-products include blood, bones,
horns, hooves, hair, wool, glands, intestines, stomachs, feathers and gut contents
Industry in Tanzania is one of the important industry in the economy of the country.
4.0 POTENTIAL AREAS OF INVESTMENT
The main investment opportunities existing in the livestock industry are in the
following areas; Production of various types of livestock including beef and dairy
cattle, goats, sheep, pigs in partnership with NARCO ranches and with the already
existing Livestock Multiplication Units together with establishment of new farms for
the same. Areas of investment include meat and milk processing, value addition in
livestock and other livestock products and by products such as hides and skins.
Other areas include; construction and operation of new abattoirs and processing
plants, establishment of breeder farms for poultry (grand parent stocks),
establishment of commercial layers and broiler farms as well as establishment of
broiler processing plants. Another very important area is the production of hay,
compounded animal feeds and vaccines.
4.1 The National Ranching Company (NARCO)
The National Ranching Company (NARCO) owns a total of 519,453 hectares of land.
These, NARCO operates a total of 8 ranches located in 7 regions of mainland
Tanzania
4.1.1 Kongwa Ranch
Location and Size
Kongwa Ranch is located 80 km east of Dodoma Municipality along Dar es SalaamDodoma Highway. The ranch lies between latitude 600' and 60 6' South and
between longitudes 26022' and 36030' East. The ranch has 38,000 hectares.
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Climate
The climatic condition of Kongwa Ranch is typical of Savannah grassland with a
unimodal rainfall pattern (November – April). It receives 240 – 600 mm of rainfall
per year with temperatures ranging between 270C to 320C during the day and 100C
to 180C during the night depending on the season of the year. The dominant soils
are sandy, loamy, black cotton and in some areas there are well drained red soils.
The dominant grass species include Rhodes grass, panicum, cenchrus and star grass
species.
Livestock population
Currently, the ranch has 8,032 cattle, 118 sheep and 768 goats with capacity to hold
14,000 heads of cattle. However, with optimal management and feedlot conditions
the ranch has a capacity to hold up to 100,000 heads of cattle.
Infrastructures
The ranch is fairly developed with some basic livestock related infrastructure which
is vital for livestock production as shown in the Table 1 below:
Table 1: Kongwa Ranch infrastructure
S.N Infrastructure
1.
• Ground water reservoir
with capacity of 1.8
million litres
• Ground water reservoir
with capacity of 1.2
million litres
2.
Water reserve tanks
3.
Cattle dip 13,000 litres
4.
Spray race 2,000 litres
5.
Sheep/Goat sheds
6.
Boreholes
7.
Church and Mosque
8.
Fencing
Quantity S.N Infrastructure
2
9.
Roads and fire
breaks
Quantity
20 km
1
6
1
1
1
2
12
2
10.
11.
Office buildings
Abattoir (Mini)
2
1
12.
13.
14.
15.
Dispensary
Welfare house
School buildings
Residential
houses
1
1
3
67
12 km
Ranch performance
Under Tanzanian conditions the ranch production coefficients shown below are
relatively good and comparable to other commercial ranches in the Tropics.
• Conception rate:
90 %
• Calving rate:
85%
• Mortality rate:
1.5%
• Weaning rate:
75%
• Off take rate:
25%
Existing potentials
There is a suitable condition beef production including breeding and fattening of
cattle, goats and sheep. These are:-
7
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
Presence of a nucleus herd of quality Boran cattle comprising 8.063 cattle,
Grazing land of 38,000 hectares.
Pasture availability throughout the year.
The ranch is connected to the National Power Grid.
Existing potential for wind and solar power generation;
It is located within the livestock catchment area (Mpwapwa, Kongwa,
Chamwino, Bahi, Manyoni, Kiteto, Kondoa and Simanjiro Districts) for ease
sourcing of immature cattle for fattening;
It shares an established Brand name “Kongwa Beef” with other NARCO
ranches.
There are skilled employees with a wide practical experience in ranching;
It is within the reach of National Livestock Research Institute and Veterinary
Investigation Centre; and
The ranch has low livestock disease prevalence.
4.1.2 Mzeri Ranch
Location and Size
Mzeri Ranch is located in Korogwe and Handeni Districts in Tanga Region. The ranch
lies between latitude 60 30' and 60 45' South and between longitudes 380 30' and 380
45' East. It is 48 km South-west of Korogwe town off Dar es Salaam – Moshi
Highway. The ranch has an area of 21,236 hectares. The dominant grass types are
Panicum Maximum, Hyperenia Spps, Cenchrus spp., calopogonia spp and Sporobolus
spp.
Climate
The ranch is on a ridge that is gently undulating at 1,305 metres above sea level in
the humid lowland ecological climatic zone. The land is flat with the Pangani River
permanently flowing through. Soils are mostly red and deep stone free ferruginous.
The ranch has a bimodal rainfall pattern with long rain season from March to May
and the short rains in October and November. Rainfall is approximately 760 mm per
annum with temperatures ranging between 180C to 320C depending on the season
of the year.
8
Livestock Population
Currently, the ranch has 3,400 Cattle, 200 Sheep and 349 Goats. Under improved
ranching management system, it has a carrying capacity of 7,080 heads of cattle.
However, under feedlot conditions, it can hold up to 60,000 heads of cattle.
Infrastructures
The ranch is fairly developed with some basic livestock related infrastructures shown
in table 2 below which are important for beef production:
Table 2: Mzeri Ranch infrastructures
No. Infrastructure
1
Charco/Dams
2
3
6
7
8
9
Water troughs 10,000
litres
Water reserves tanks
with the total capacity
of 950,000 m3
Borehole pumps 8,000
to 10,000 per hour
Hay sheds
Water pipes
Welfare house
Quantity
4
No.
10
5
11
10
12
Infrastructure
Spray race 3,000
litre
Roads and fire
breaks
Office building
Quantity
3
1
13
Mini Butcher
1
2
16 km
1
14
15
16
Garage
Dispensary
Residential
houses
1
1
20
24 km
1
Ranch Performance
The ranch has livestock production coefficients shown below;
80%
• Calving rate:
70%
• Mortality rate:
2%
• Weaning rate:
63%
• Off take rate:
17%
Existing Potentials
♦ Mzeri ranch is accessible and close to Tanga City with port facilities for market
and transportation;
♦ The ranch has 3,400 nucleus herd of quality Boran cattle;
♦ The ranch is connected to the National Power Grid;
♦ The ranch is within a livestock catchment area (Korogwe, Kilindi, Handeni,
Simanjiro, Same, Kiteto) for ease sourcing of immature cattle;
♦ Available domestic market (Mining centres, tourist hotels, supermarkets) and
export markets (Gulf countries, DRC, Rwanda, Burundi, Comoro and Uganda);
♦ Skilled and experienced human resource;
♦ It is within the reach of research and diagnostic facilities in Tanga (Tsetse and
Trypanosomosis Research Institute and National Livestock Research Centre);
and
♦ The ranch has low livestock disease prevalence.
9
4.1.3 Ruvu Ranch
Location and Size
Ruvu Ranch is situated in Coast Region in Bagamoyo District. It lies between latitude
60 30' and 60 45' South and between longitudes 38030' and 38045' East. Its location
is about 70 km North-west of Dar es Salaam city along the Dar es Salaam –
Morogoro Highway. The ranch has 43,000 hectares.
Climate
The ranch has a bimodal rainfall with short rains from mid October to December and
long rains from February to May. It receives between 800 – 1,200 mm of rainfall per
year with temperatures ranging between 250C and 270C. Soils are mainly black
cotton, sandy, sandy clay and loamy. Dominant grass types Sporobolus spp,
Eragrotis superba and star grass
Currently, the ranch has 3,762 cattle but its carrying capacity is up to 10,238 heads
of cattle. However, under feedlot conditions the ranch can stock up to 120,000
heads of cattle.
Infrastructures
The ranch has fairly developed infrastructures as shown in the table 3 below:
Table 3: Ruvu Ranch infrastructures
No. Infrastructure
Quantity
1 Charcos/Dams
with
4
the
total
storage
capacity of 3,000,000
litres
2 Water troughs
3
3 Water pipes
6 km
6 Spray race
2
7 Cattle dip
1
8 Roads and fire breaks
20 km
9
Office building
1
No.
10
Infrastructure
Modern Butcher
11
12
13
14
15
Mini Abattoir
Dispensary
Welfare house
Primary School
Residential
houses
Quantity
1
1
1
1
1
25
16
Ranch Performance
The ranch production coefficients are relatively good and comparable to commercial
ranches in the Tropics.
80%
• Calving rate:
70%
• Mortality rate:
2%
• Weaning rate:
75%
• Off take rate:
17%
Existing Potentials
♦ Conditions suitable for breeding and fattening of cattle, goats and sheep;
10
♦ It is accessible and close to Dar es Salaam City with airport and harbor facilities
for market and transportation;
♦ Easily accessible along Dar es Salaam – Morogoro Highway and central railway
line;
♦ It is within a livestock catchment area (Bagamoyo, Morogoro, Handeni, Korogwe)
for ease sourcing of immature cattle;
♦ Available domestic market (mining centres, tourist hotels, supermarkets)
including the metropolitan Dar es Salaam and export markets (Gulf states, DRC,
Rwanda, Burundi, Comoro and Uganda);
♦ There is ongoing construction of an export quality abattoir and a meat processing
plant;
♦ It is within the reach of zoosanitary and diagnostic facilities in Dar es Salaam City
and Kibaha Town (Central Veterinary Laboratory and Kwala Zoosanitary Facility
respectively); and
♦ The Ranch has low livestock disease prevalence.
4.1.4 Mkata Ranch
Location and Size
Mkata Ranch is located 58 km from Morogoro Town off Morogoro-Iringa Highway.
The ranch lies between latitude 100 14' and 100 19' South and between longitudes
380 53' and 38058' East. It has 19,446 hectares with holding capacity of 7,000 heads
of cattle. However, under feedlotting the ranch can hold up to 35,000 heads of
cattle.
Climate
Mkata Ranch lies in the humid lowland ecological climatic zone at an elevation
ranging from 400 – 460 meters above sea level. It lies within the area commonly
known as Mkata Plain with Mkata River running across the ranch from North-east to
South-west. It receives an average rainfall of about 731.4mm which is bimodal in
pattern distributed between March – May (long rains) and from October to
December (short rains). The land is dominated by black cotton and red laterite soils.
The natural vegetation is mainly of woodland and wooded grassland. The latter
comprises Themeda, Hyperrhenia, cenchrus, sporobolus and brachiaria spp. and
Cymbopogon species. Woodland includes Acacia and Combretum species.
11
Currently, the ranch has no livestock but its carrying capacity is up to 7,000 heads of
cattle. However, under feedlot conditions the ranch can stock up to 35,000 heads of
cattle.
Infrastructures
The ranch has fairly developed infrastructures as shown in the table 4 below:
Table 4: Mkata Ranch infrastructures
No.
1
2
3
6
7
8
9
Infrastructure
Charco/Dams
Water troughs
Borehole
Water tank
Spray race
Water pipes
Fence
Quantity
5
6
1
1
3
3.0 km
50 acres
No.
10
11
12
13
14
15
16
Infrastructure
Workshop
Roads and fire breaks
Office building
Hostel
Primary School
Health centre
Residential houses
Quantity
1
100 km
2
1
1
1
30
Ranch Performance
Production coefficients are as listed below:
•
•
•
•
•
Conception rate:
Calving rate:
Mortality rate:
Weaning rate:
Off take rate:
80%
71%
2%
65%
14%
Existing Potentials
♦ Proximity to Tanzania Pride Meat Abattoir in Mvomero District, Morogoro Region;
♦ Conditions suitable for breeding and fattening of cattle, goats and sheep;
♦ A nucleus herd of quality Boran cattle - 2,329 cattle;
♦ Available grazing land - 19,446 Ha;
♦ Lies along Dar es Salaam – Iringa Highway and central railway line;
♦ Is within a livestock catchment area (Kilosa, Mvomero, Morogoro Rural, Kongwa,
Bagamoyo and Kiteto) for ease sourcing of immature cattle;
♦ Available domestic market (tourist hotels, power stations, Mtibwa and Kilombero
Sugar Factories, Higher Learning Institutions, supermarkets) including Morogoro
and the metropolitan Dar es Salaam and export markets (Gulf states, DRC,
Rwanda, Burundi, Comoro and Uganda);
♦ It is within the reach of research and diagnostic facilities at Sokoine University of
Agriculture in Morogoro;
♦ Access to sugar factories’ by-products for feedlotting; and
4.1.5 Kikulula Ranching Complex
Location and Size
12
Kikulula Ranching Complex is a consolidated business unit comprising three ranches
(Kagoma, Kikulula and Mabale) as well as a Farmers’ Training Centre with a capacity
of training an average of 60 livestock farmers annually. The ranch is located 80 km
from Bukoba Town along Bukoba-Karagwe Road. It lies between latitude 20 42’ and
20 46’ South and longitude 310 17’ and 310 22’East. It has an area of 42,083
hectares.
Climate
The ranch receives an average annual rainfall of about 800mm – 1,000mm with
bimodal pattern between October – January (short rains) and March – May (long
rains). Temperatures range from 150C to 280C. The soil ranges from reddish brown
sandy to loamy of moderate fertility. The natural vegetation is mainly of Savannah
type with a variety of grass such as Themeda triandra, Cenchurs ciliaris; Panicum,
Brachiaria, and Setaria species.
The ranch has 8,730 heads of cattle but its carrying capacity is up to 21,030 heads
of cattle. However, under feedlotting, the ranch can hold up to 150,000 heads of
cattle. In addition, the ranch produces 319 dairy heifers annually.
Infrastructures
The ranch has fairly developed infrastructures as shown table 5 below:
Table 5: Kikulula Ranch infrastructures
No.
1
2
3
6
7
8
9
Infrastructure Quantity No.
Charco/Dams
11 10
Water troughs
3 11
Water tank
9 12
Spray race
1 13
Fence
13 km 14
Water pipes
15
Cattle dip
3 16
Infrastructure
Workshop
Office building
Welfare house
Residential houses
Hostel
Quantity
1
300 km
1
1
27
1
Ranch Performance
The ranch production coefficients are as shown below:
• Calving rate:
51%
• Mortality rate:
2%
• Weaning rate:
75%
• Off take rate:
28%
Existing Potentials
♦ Suitable weather conditions for breeding and fattening of cattle, goats and sheep;
♦ It is within the reach of the abattoir which is under plan;
♦ A nucleus herd of quality Boran cattle;
♦ Available grazing land of good quality pasture;
♦ The ranch is connected to a reliable power supply;
♦ The ranch is within a livestock catchment area (Karagwe, Ngara, Missenyi,
Muleba, Bukoba Rural, Biharamulo, Geita, Kasulu and Chato Districts) and
13
♦
♦
♦
♦
♦
neighbouring countries (Uganda, Burundi, and Rwanda) for ease sourcing of
immature cattle;
Available domestic markets in Mwanza, Kagera and Shinyanga regions (mining
centres, tourist hotels, Kagera Sugar Factory and supermarkets) and export
markets proximity to neighbouring Uganda, Rwanda, Burundi, Democratic
Republic of Congo;
Skilled and experienced human resources;
It is within the reach of research and diagnostic facilities at Mabuki (Misungwi
District) and Veterinary Investigation Centre (VIC) in Mwanza City;
Access to Kagera Sugar Factory by-products for feedlotting; and
The Ranch has low livestock disease prevalence.
4.1.6 Missenyi Ranch
Location and Size
Missenyi Ranch is located 95 km west of Bukoba Town at the border with Uganda. It
lies between latitude 20 42’ and 20 46’ South and longitude 310 17’ and 310 22’East.
On the south it is adjacent to both Kagera Sugar Factory and Kagera River. The
ranch has an area of 23,998 hectares.
Climate
The ranch has brownish, sandy and loamy soils supporting good quality grazing
pastures. The dominant vegetation is savanna type with scattered bushes and trees
to the southern part along the Kagera River. Major grass species include Cenchrius
ciliaris, Themeda triandra; Seteria and Brachiaria species. Rainfall is bio-modal with
on set in September to January and March to May. It ranges between 600mm –
900mm per annum with temperature ranging between 14˚C to 25˚C.
The ranch has 7,309 heads of cattle but its carrying capacity is up to 9,599.
However, under feedlotting, the ranch can hold up to 68, 466 heads of cattle.
Infrastructures
Missenyi ranch is fairly developed with some basic livestock and social infrastructures
which are important for beef production and recreational services. The ranch has
total of 15km internal roads, two concrete water tanks, cattle handling facilities
which include one plunge dip, spray race, water troughs and six dams (Table 6).
Table 6: Missenyi Ranch infrastructures
No.
1
2
3
6
7
Infrastructure
Quantity No.
Charco/Dams
6 8
Water troughs
1 9
Water tank
2 10
Spray race 2,200 litres
1 11
15 km 12
Ranch Performance
14
Infrastructure
Office building
Welfare house
Residential houses
Hostel
Quantity
1
1
1
1
The ranch production coefficients are relatively good as shown below:
•
•
•
•
•
Conception rate:
Calving rate:
Weaning rate:
Mortality rate
Off take rate:
80%
80%
70%
2%
29%
Existing Potentials
♦ The ranch is served by Kagera River which can be used for watering livestock
and pasture development as well as for domestic use;
♦ Suitable weather conditions for breeding and fattening of cattle, goats and
sheep;
♦ Proximity to the proposed Kyaka abattoir approximately 25Km from the ranch;
♦ A nucleus herd of quality Boran cattle;
♦ Available grazing land of good quality pasture;
♦ The ranch is connected to a reliable power supply;
♦ The ranch is within a livestock catchment area (Karagwe, Ngara, Missenyi,
Muleba, Bukoba Rural, Biharamulo, Geita, Kasulu and Chato Districts) and
neighbouring countries (Uganda, Burundi, and Rwanda) for ease sourcing of
immature cattle;
♦ Available domestic markets in Mwanza, Kagera and Shinyanga regions (mining
centres, tourist hotels, Kagera Sugar Factory and supermarkets) and export
markets proximity to neighbouring Uganda, Rwanda, Burundi, Democratic
Republic of Congo;
♦ It is within the reach of research and diagnostic facilities at Mabuki (Misungwi
District) and Veterinary Investigation Centre (VIC) in Mwanza City;
♦ Access to Kagera Sugar Factory by-products for feedlotting; and
4.1.7 West Kilimanjaro
Location and Size
West Kilimanjaro Ranch is located within an important wild life corridor linking
Kilimanjaro National Park and Momela Game Sanctuary at a vicinity of Mount
Kilimanjaro and Mount Meru. The ranch is located 70 kilometers North-west of Moshi
Municipality off Moshi-Arusha Road. It lies between latitude 20 53’ and 30 7’ South
and longitude 360 45’ and 360 58’East and covers an area of 19,910 ha.
15
Climate
West Kilimanjaro Ranch is located in a dry and cold climate zone. The annual rainfall
is 303 mm. The dry seasons extends for about six months from May to October.
Despite of relative low annual average rainfall, the ranch lies within a comparatively
productive area. This is due to the underlying fertility of the volcanic soils implied by
the prevalence of grasses from the Cynodon genus.
Currently, the ranch has 967 cattle and 772 Sheep, with capacity to hold 8,000
heads of cattle. However, with optimal management and feedlot conditions the
ranch has a capacity to hold up to 60,000 heads of cattle.
Infrastructures
The ranch is fairly developed with some basic livestock related infrastructures which
are important for meat production and social amenities as indicated in table 7 below:
Table 7: West Kilimanjaro Ranch Infrastructures
No.
1
2
3
4
Infrastructure
Water troughs
Water reservoir 20,000 litres
Dip Tanks operating one with
18,000 and 15,000 litres. The
non operational 15,000 litres
Quantity
2
1
3
No.
5
6
7
Infrastructure
Borehole
Office building
Workshop
Residential
houses
Quantity
1
1
15
Ranch Performance
ranches in the Tropics as shown below:
•
•
•
•
•
Conception rate:
Calving rate
Weaning rate
Mortality rate
Off take rate
80 %
90%
75%
2%
22%
Existing Potentials
♦ Climatic and weather conditions are suitable for beef and mutton production;
♦ The ranch is served by Ngarenanyuki River which flows permanently across the
ranch from north to south that can be used for watering and pasture
development.
♦ The ranch is within the tsetse free zone with low livestock diseases prevalence,
thus it can easily be turned into a disease free compartment;
♦ The ranch is within proximity to Kilimanjaro International Airport and is close to
the Arusha Meat Company as well as Arusha City and Moshi Municipality;
♦ The ranch is within a livestock catchment area (Monduli, Longido, Hai and
Simanjiro Districts) whereby immature cattle can easily be sourced for fattening;
♦ Skilled and experienced human resource.
16
4.1.8 Kalambo Ranch
Location and Size
Kalambo Ranch is in Rukwa Region, located 45km South-west of Sumbawanga
Municipality, close to the southern tip of Lake Tanganyika and the border with
Zambia. It lies between latitude 290 56’ and 300 8’ South and longitude 600’ and 60
9’ and covering an area of 23,588 ha.
Climate
The ranch has flat grassland with pockets of undulating surfaces characterized by
hills and escarpments to the far western side. There are some localized swamps in
the western and south western sides. Soils are mainly sand loamy with some black
cotton and clay soils to the east especially around the swamp. The dominant grass
species include Themeda triandra, Exotheca aristida, Digitaria spp, Sporoborus spp
with some Erogrotus spp. The ranch has one long rain season from November to
May and dry season from June to October. Annual rainfall varies from 800mm to
1300mm depending largely on elevation and temperatures ranges from 20 ° C to 26
° C.
Livestock population
Currently, the ranch has 1,733 Cattle, 25 Sheep, 35 Goat, and 8 Horses. It has a
carrying capacity of 8,730 heads of cattle. However, under optimal management and
feedlot conditions, it can hold up to 80,000 heads of cattle.
Infrastructures
Kalambo Ranch is fairly developed with some basic livestock infrastructures which
are important for meat production and social amenities as indicated in table 8 below:
Table 8: Kalambo Ranch infrastructures
N0.
Infrastructure
1
Charco/Dam with the capacity
of 200,000 liters
Water troughs 12,000 litres
Water tank
Cattle Dip 17,000 litres
Residential houses
2
3
4
5
Quantity
Infrastructure
Quantity
1 5
No.
Primary school
1
3 6
1 7
2 8
9
Pipe work
Dispensary
5 km
1
Ranch Performance
ranches in the Tropics as shown below:
65%
• Calving rate:
80%
• Weaning rate:
76%
• Mortality rate:
2%
• Off take rate:
38 %
Existing Potentials
♦ Climatic and weather conditions are suitable for beef production;
17
♦ The ranch is served with numerous permanent water springs and rivers which
provide water throughout the year for cattle, watering and pasture development;
♦ Market for livestock is readily available as the ranch is within proximity to
Sumbawanga Agricultural and Animal Feeds Industry (SAAFI) with a modern
abattoir;
♦ Available domestic markets in Mbeya, Rukwa and Katavi regions (mining centres,
tourist hotels, cement and beer factories, supermarkets) and export markets
proximity to neighboring Zambia, Malawi and Democratic Republic of Congo;
♦ Tanzania Zambia Railway line and the Mbalizi International Airport which is
under construction in Mbeya Region providing gateway to other markets;
♦ Kalambo ranch is within a livestock catchment area (Sumbawanga, Nkasi,
Chunya, Mpanda and Mbozi Districts) where immature cattle can easily be
sourced for fattening; and
♦ Skilled and experienced human resource.
Proposed Investment Requirements
All ranches in the country are operating below their respective carrying capacities.
Therefore, investment plans aim at increasing livestock population in each of the
ranches in order to attain their maximum carrying capacities. This would entail
purchase of quality breeder animals, purchase of immature animals for feedlotting,
infrastructure development, pasture and water facility improvement.
4.1.9 Privately Owned Ranches
Out of 219,930 ha of NARCO ranches, 134 satellite ranches of 2000- 4000 ha each
have been demarcated and privatized (Table 9). Only 35 of the satellite ranches with
a stocking of 48,301 head of cattle and 7,182 head of goats and sheep are
operational while 99 have not been developed so far. When fully developed and
utilized, the combined capacity of NARCO and the satellite ranches is 183,700 cattle.
Table 9: Privatization of Ranches under NARCO
No
1
2
3
4
5
6
7
8
9
10
11
Name of
Ranch
Mkata
Usangu
West
Kilimanjaro
Uvinza
Mzeri
Kalambo
Misenyi
Kitengule
Total
Area
(Ha)
Area in Ha under
Main
Ranches
62,530
19,446
43,727
0
30,364
19,910
56,175
41,246
64,650
60,851
41,700
Kikulula
76,940
Complex*
Kongwa
38,000
Ruvu
43,000
No. of
Livestock Number of
Satellite under
livestock under
Ranches NARCO, Satellite Ranches
Sept.
Satellite
Cattle
Goats/
2010
Ranches
Sheep
43,084
11
0
3,210
873
43,727
16
0
2,206
677
10,354
10
209
0
0
0
21,236
23,588
23,998
0
56,175
20,010
41,062
36,853
41,700
21
9
13
21
9
0
3,054
1,442
5,475
0
13,702
3,304
6,220
2,678
4,877
0
3,411
593
253
322
30,752
46,188
22
6,068
12,104
1,053
38,000
43,000
0
0
0
0
8,032
3,340
0
0
0
0
18
12 Dakawa
Total
49,981
609,164
0
219,930
49,981
389,134
2
134
0
27,619
48,301
7,182
*Kikulula complex includ Kikulula, Mabale and Kagoma ranches
Source: MLFD
4.2 Other Animal Production Resources
Sheep and Goats
Sheep and goats farming is one of the activities being done by livestock farmers in
the rural areas of Tanzania. It is estimated that the country has 13.7 million goats
and 3.6 million sheep (2009/2010) and about 30% of rural households in Tanzania
are engaged in sheep and goats keeping. These animals adapt well in nearly all
agro-ecological zones in the country and are raised mainly under traditional
production system whit a limited number under commercial farming system.
Sheep and goats available are mainly of indigenous types and are kept for meat
production. Sheep types include, Red Maasai, Sukuma (East African Black Head),
Pare and Gogo (Tanzania Long Tail) while Goats types include Maasai, Gogo,
Newala, Ujiji and Sukuma. These types of sheep and goats are well adapted to the
environment and perform well when raised under commercial system where
management is good mainly in terms of feed, shelter, water and disease control.
Sheep for wool production exist in some parts of the country mainly in the Southern
Highlands (Iringa and Mbeya Regions) and West Kilimanjaro. They are in small
numbers which were introduced into the country during the colonial period.
The demand for sheep and goats has been increasing over years for the domestic
and export markets. It is estimated that between 2006 and 2008 about 11,880
sheep and goats have been exported. Currently the demand for sheep and goats
meat for export is over 16 tons per week. However, about six tons are exported due
to unavailability of quality sheep and goat.
The areas for investment in sheep and goats include:
♦ Partnership with National Ranching Company in the production of goats, sheep;
♦ Establishment of large scale sheep and goats farm for meat production;
♦ Establishment of Dairy Goats Multiplication Unit; and
♦ Contract farming between export agents and goat and sheep farmers.
Pig Production
More than 90% of the 1.9 million pigs in Tanzania are kept by small-scale farmers
mostly in Southern and Northern Highlands under traditional production system. In
addition, pork demand is increasing in urban and peri-urban areas due to the
increasing customer’s preference for its delicacy. However, the current production
does not suffice the increasing demand for the domestic and export markets.
Therefore, pigs production can be improved through proper husbandry practices,
adequate support services, diseases control and appropriate slaughter and
marketing infrastructure. Intensive pig production for commercial purposes is limited
19
to very few farmers with a regular income, mainly to meet the high cost of
concentrate feeds among other requirements.
The breeds of pigs found in the country are crosses of large white, landrace,
saddleback and Hampshire; while pure breeds are very few. These stocks have
been circulating within the different farms in the country.
The
♦
♦
♦
areas for investment in pig industry include:
Establishment of breeder’s farms
Establishment of commercial farms
Establishment of slaughter and processing plants.
Poultry production
The poultry production system in Tanzania is of two type’s i.e. traditional and
commercial production. The current production is estimated at 58.0 million chickens
(indigenous 23.0 and commercial 35.0) and 1.2 million ducks.
Poultry production has a lot of opportunities for the private sector investment. The
Small and Medium Enterprises have managed to increase numbers of local chicken
from 27 million in 2001 to 30 million in 2006 while the commercial stock increased
from 20 million to 25 million. On average 5.5 million hatching eggs and 1 million Day
old parent chicks are imported annually to produce a total of 25 million Day Old
Chicks for commercial purposes. This figure is low compared to the current
requirement of 60 million Day old chicks per year.
Egg production has increased from 2.4 million in 2007/2008 to 2.9 billion in
2009/2010. The observed increase is due to sensitization on good poultry husbandry
practices and use of thermo stable New Castle Disease vaccine. The per capita
consumption of eggs has increased from 50 eggs to 75 eggs per person per year.
The rising demand for day old chicks, meat and eggs calls for more investments.
The hatcheries and their capacities are as indicated in table 10 below:
Table 10: Hatcheries and Their Production Capacities in Selected Regions
No.
Region
1
2.
Arusha
Dar Es Salaam
3
Coast
4.
Kilimanjaro
5.
Mbeya
Hatchery
Tanzania Poultry Farms
Euro poultry
Interchick
Twiga hatcheries
Ideal Chiks
Kibaha E.C
Ruvu KJT
Kiluvya Poultry Products
Mkuza Chicks
Kilacha
Kibo Hatcheries
Songwe Hatcheries
20
Capacity (No. of
chicks for 3 Weeks)
180,000
160,000
260,000
120,000
120,000
120,000
30,000
30,000
360,000
30,000
60,000
The areas for investment in poultry industry include:
♦ Establishment of breeders farms for grand and parent stock
♦ Establishment of commercial layers and broiler farms
♦ Establishment of broiler processing plants
4.3 Livestock Multiplication Units (LMUs)
The profile for each LMU is as follows:4.3.1 Mabuki LMU
The farm is located in Misungwi District along the Shinyanga –Mwanza Highway,
about 62 km from Mwanza city. It can be accessed by road (900 km) from Dar es
Salaam or by air via Mwanza. The farm lies between latitude 20 59’S and longitude
330 11’E and has a land area of 9,793 hectares capable of supporting about 6,000
Livestock Units. Currently, the farm has 2,684 cattle (mainly of Friesian, Boran and
Tanzania Shorthorn Zebu crosses), 79 buffaloes and 70 goats. The farm is within
sub-humid to semi arid agro-climatic zone and has a bimodal pattern of rainfall. The
short rains (October – December) and long rains (February–May). The rainfall
ranges between 700 mm – 800 mm, with a dry spell in January.
4.3.2 Sao Hill LMU
The farm is located in Iringa Region about 572 km from Dar es Salaam and it 13 km
off Dar es Salaam – Mbeya Highway. The farm lies between longitude 350 20’’ East
and Latitude 800 20’’ South at an altitude of 1,800 meters above sea level. It
receives an average rainfall ranging from 800 - 1200 mm. The farm covers an area
of 6,500 ha with a holding capacity of about 3,000 cattle. Currently, the farm has
1,759 cattle of Boran and Ayrshire breeds and their crosses.
4.3.3 Nangaramo LMU
The farm is located in Masasi District, Mtwara region about 630 km from Dar es
Salaam and has land area of 6,175 ha capable of supporting 4,000 Livestock Units.
The farm lies between latitude 11 S and longitude 38 E. The area is under coastal
zone of humid to sub-humid climate, temperature ranging from 25 C -35 C. The area
receives rainfall ranging from 350-1000mm per annum. Currently, the farm has 441
cattle of Boran, Ayrshire and their crosses.
4.3.4 Kitulo Dairy Farm
The farm is located in Makete District, Iringa Region 980 km from Dar es Salaam
and 70 km from Mbeya City. The farm is at an altitude of 2,900 meters above sea
level and receives an average rainfall of 1300 mm annually. Temperatures range
from 5 0C to 17 0C. It has an area of 5,000 ha with a capacity of supporting 3,500
Livestock Units. Currently, the farm has 970 Friesian dairy cows.
4.3.5 Ngerengere LMU
The farm is located in Morogoro Region, 150 km from Dar es Salaam off Dar es
Salaam-Morogoro Highway. The farm lies between longitude 920-930 South and
Latitude 360-380 East and receives an average rainfall of 1200 mm annually.
Temperatures range from 280C to 300C. It has an area of 4,562 ha with a holding
21
capacity of 3,500 cattle. Currently, the farm has 574 Boran cows, Aryshire bulls and
their crosses.
4.4 Leather Industry
The Hides, Skins and Leather Industry in Tanzania is one of the important industry
in the economy of the country. Available statistics (2009) indicate that, the country
has 19.2 million cattle, 13.7 million goats and 3.6 million sheep. With an off-take
rate of 10-15% for cattle, 28% for goats and 29% for sheep the potential annual
production of raw materials is estimated at 2.8 million hides, 3.8 million goat skins
and 1.0 million sheep skins equivalent to 91.1 million square feet. On average, 56%
of the total hides and 65% of the total skins produced are collected out of which
only 30% are being processed. The remaining 70% of the hides and skins are
exported in raw form and therefore, there is a need to invest in value addition
industries such as tanning, footwear and leather goods.
4.4.1 Tanning
Tanzania has seven operating tanneries all of which are privately owned and are
tanning to semi-processed leather (pickled and wet blue) for export and small
quantities of finished leather for domestic consumption.
At full capacity utilization, the seven tanneries can process only 39% of the existing
production potential. This is a clear indication that, there is ample potential for
further investment in the tanning sub-sector. The tanneries and their capacities are
shown in Table 12 below:
Table 11: Tanneries and Their Capacities
S.N Company
1
2.
3.
4.
5.
6
7
Location Installed
Utilization
capacity (Feet2) capacity (%)
Tanzania Leather Tanneries Ltd Morogoro
10,000,000
87
(East Hides Tannery Ltd)
Lake Trading Co. Ltd
Kibaha
4,500,000
56.7
Afro Leather Industries
DSM
4,000,000
82
Salex tanneries Ltd
Arusha
4,000,000
54.7
Himo Tanneries and Planters
Moshi
3,000,000
46.2
Moshi Leather Industries
Moshi
10,000,000
82
JAET Ltd,
Mwanza
375,000
100
Total capacity
Source: MLFD (2010)
Footwear and Leather Goods
Production of footwear and leather goods is dominated by micro enterprises and few
small enterprises focusing on the domestic and to some extent, tourist markets. It is
estimated that the current production of shoes is about 720,000 pairs per annum
using mainly imported finished leather against the current consumption of 20 million
pairs of shoes per year. There are prospects for further investment in the footwear
22
and leather goods industry for domestic and export markets. The footwear, leather
goods industries and their capacities is indicated in Table 2 below:Table 12: Footwear and Leather Goods Industries and Their Capacities
No. Name of
Establishment
Location Products/
services
1.
D'salaa
m
Mwanza
2.
3.
4.
5.
6.
7.
8.
9.
Noble Footwear
and Accessories
J.A.E.(T) Ltd,
Capacity (pairs or bags
/annum)
Installed
Utilization
footwear
footwear and
leather goods
Ok Plast Ltd
D'salaam Footwear (sandals)
Peramiho Ltd
Ruvuma Footwear (ladies
Italy Shoe
D'salaam Footwear
DSM Training
D'salaam Footwear &
Production
Leather
Centre
products
Twins Leather
Moshi
Leather
Products
products (bags)
Morogoro Training Morogoro Footwear &
Production Centre
Leather
products
Shah Industries
Moshi
leather goods
Ltd
(bags)
52,000
-
39,000
9,360
3,900
52,000
39,000
5,200
2,600
39,000
39,000
5,200
2,600
2,600
26,000
2,600
13,000
7,800
Source: MLFD
Tanzania has a number of national investors in leather industry. Some of these are
seeking for joint venture arrangements in leather processing, foot wear and leather
goods manufacturing. Their contacts are provided in table 14 below:
Table 13: Leather industry Investors and their Contacts
No.
Company
Current
Occupation
Foot wear and
Leather goods
Manufacture
1.
Jaet (T) ltd
2.
Covenant
3.
Lake
Trading
Exporter of hides
and skins
Tanning of hides
and skins
4.
Himo
Taaners
Tanning of hides
and skins
Area of
investment
Leather
processing,
Footwear and
leather goods
Leather
processing
Foot wear
and Leather
goods
Leather
processing
and
manufacturer
of goods
23
Location
Email address
Mwanza
[email protected]
Mwanza
[email protected]
Kibaha
[email protected]
Moshi
himotenneriesandplant
[email protected]
5.
6.
4.5
Salex
Tannery
Kirobe
Investment
Tanning of hides
and skins
Exporter of hides
and skins
Expansion up
to finishing
Leather
Processing
Arusha
[email protected]
Dodoma
kirobeinvestments@gm
ail.com
Other Livestock By-products
An average daily cattle slaughter ranges between 70 – 120 heads which are being
slaughtered in Municipal and City abattoirs despite those slaughtered in the rural
areas. This number confirms the availability of large quantity of livestock by-products
produced daily to attract investment. Currently, Tanzania is lacking industries for
processing these by-products. In this regard investors are encouraged to invest in
this area either in partnership arrangement or as a sole proprietor. These byproducts have various uses which are of economic importance as shown in Table 15
below:
Table 14: Major livestock by-products and their uses
S/N Name of By Product
1.
Blood
2.
Bones
3.
Hoofs and Horns
4.
Hair and Wool
5.
6.
Glands and Organs
Intestines
7.
Stomachs, Other offal,
Condemned Meat
Gut Contents, Manure
8.
Uses
• Liquid blood: used as a source of pharmaceuticals as
albumin for the glue, textile and dye industries
• Dried blood: used as blood flour, blood meal for animal
feed and as fertilizer.
• Used as animal feed, fertilizer, manufacture of combs,
buttons cutlery handlers, glue, gelatin, tallow and
ornaments.
• Used as meal, fertilizer, gelatin and glue, manufacture
of combs, buttons, hairpins and articles of tourists
attraction including souvenirs
• Used in the manufacture of brushes, yarn, fabrics and
fibers
• Used for pharmaceuticals
• Used
to
make
sausage
casings,
musical
instruments/strings and surgical ligatures
• Used to make tallow for soap and glycerin, lubricants,
grease and waxes.
• Used to make compost, biogas as fuel for heating and
lighting.
Source: MLFD, 2010
24
4.6 Animal Feeds
Animal feed are important inputs in livestock production which counts more than
70% of the production costs. The main types of animal feed resources available in
Tanzania are pastures, fodder crops, crop residues and compounded feeds.
However, ruminants in the country depends on natural pastures for about hundred
percent. The area for grazing and pasture production is dwindling due increased
land requirement for crop production and climatic change, this has lead to a
seriously shortage of the pastures during dry season and conflicts between livestock
and crop farmers. In observance of this the government decided to demarcate land
area specifically for livestock grazing and pasture production. Land demarcated for
pasture development for livestock is about 1,890,419.19 ha in 17 regions of
Tanzania Main Land. Potential areas for investing for pasture production are
southern, central, lake and western zones.
Pasture and Fodder Crops
There a number of investments in pastures and fodder production in the country,
currently production is in the tune of 303,000 bales of hay (2010) while the demand
exceeds 1,000,000 bales per year. However, mostly ruminant production in the
country depends on natural pastures and crop residues and little supplementation
for the case of dairy animals.
Improved pasture seed production to a greater part is government farms, these are
Vikuge and Langwira farm with production capacity of about 40 tons of seeds is
produced annually. Improvement in areas of pasture production and conservation
for dry season feeding will improve livestock productivity. There is need therefore,
for investing in pasture and pasture seed production and conservation.
Existing Potentials
♦ Arable land suitable for pasture production;
♦ High demand for pasture and pasture seeds;
♦ Large livestock herd;
♦ Skilled and experienced human resource in rangeland management;
♦ Diverse, favourable climate of different agro-ecological zones which can support
a wide range pasture production; and
♦ Existence of Government pasture farms (Vikuge-Pwani and Langwira-Mbeya)
which are producing about 40 tones of improved pasture seeds per annum.
Compounded Animal Feeds
Compounded feedstuffs production is estimated at 800,000 tons per annum while
the potential demand stands at 2.5 million tons. There are about 57 animal feed
mills/plants in the country which are not operating to their optimal capacity and
most of them are located in Dar es Salaam, Coast, Arusha and Mwanza regions. The
following is a table of animal feeds plants and their production capacity in correlation
with the production per day:-
25
Table 15: Animal feed plants Production in Tanzania
No
RegionName of animal
feed plant
1
Arusha
Kijenge Animal
Product Ltd
Fammy Poultry
HAFVET Products
WAPO animal
feeds Product
Ilboru Animal feed
2
DSM
Nanenane Animal
feed
Dhariwal Trading
company
Interchick Co
Tausi Animal feeds
Hill Animal Feeds
Igo Animal Feeds
Lengesia Animal
Feeds
Rimayi Animal
feeds
Jadide Animal
Feeds
Mfugaji Animal
feeds
Fide Animal feeds
Kimara Animal
feeds
A - Z Animal
feeds
Mkombozi
Barkhesa
Moselmach
Tanzania Ltd
Farmers Center
Tanzania
Breweries
Multivet
BAF
Farmbase
Benfeed
Type of animal
feed(s)
produced
Poultry, pig, dairy
and hose feeds
Poultry feeds
Poultry , pig and
dairy feeds
Poultry feeds
District
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry and dairy
feeds
Poultry feeds
Wheat meal,
Wheat bran, Bone
meal, Fish meal
Poultry feeds
Arusha
Production (Tons/day)
capacity
Production
Arusha
Arusha
Arusha
Arusha
Arusha
Arusha
Kinondoni
Kinondoni
66
40
20
16
Kinondoni
24
15
Kinondoni
50
20
Kinondoni
10
3
Kinondoni
15
5
Kinondoni
15
5
Kinondoni
30
15
Kinondoni
16
5
Kinondoni
40
20
Ilala
Ilala
5
65
Ilala
10
2
Poultry and dog
feeds
Poultry feeds
Ilala
15
3
Ilala
3
Poultry feeds
Poultry feeds
Poultry and dog
feeds
Poultry feeds
Ilala
Ilala
Ilala
5
80
20
Ilala
25
26
Kinondoni
20
Furahisha Co. LTD
Twiga Feeds
Best Chicken Feed
FALCON
3
4
5
Ideal Chicks
Amadori
Nassad Feeds
K’njaro
M6 Milleniuam
animal feeds
Machame animal
feeds
Harsho animal
feeds plant
Union store animal
feeds plant
Josho plant
Shengana mineral
lick plant
Mbeya
Kaijunga
Omary
Taraja Agrovet
Morogoro International
TanFeeds LTD
Donfeed
Chesterfeed
6
7
Mwanza
Pwani
8
Shinyan
ga
9
Singida
Misenani
Agriservice
Posho Mill
Ghana feed Centre
Elly Mushi Aninmal
feed processors
Vess Posho mill
Ndokeji fish and
Posho mill
Kaita fish meal
Itale Mbisu fish
meal
Pantoni Animal
Feed
JKT Animal Feed
Mang’ana Agrovet
Vitia Farm
Kongowe Feed
and Millers
Kaijunga
Omari
Taraja Agrovet
VETA Singida
Poultry feeds
Poultry , pig and
dairy feeds
Vyakula vya kuku
Poultry and dairy
feeds
Poultry feeds
Poultry feeds
Poultry feeds
Poultry and dairy
feeds
Dairy feeds
Ilala
Temeke
30
25
10
Temeke
Temeke
?
50
10
Temeke
Temeke
Ilala
Hai
20
40
8
15
2
Poultry, pig and
dairy feeds
Poultry, pig and
dairy feeds
-
Moshi (M)
5
3
Moshi (M)
8
2
Moshi (M)
Same
3
1/2
Poultry feeds
Poultry feeds
Poultry feeds
Poultry, dairy, and
pig feeds
Poultry and pig
feeds
Poultry, pig, dairy
and dog feeds
Poultry feeds
Morogoro
(M)
Morogoro
(M)
Morogoro
(M)
Ilemela
Fish meal
Poultry feeds
Poultry feeds
-
Hai
Poultry feeds
Fish meal
Nyamaga
na
-
Fish meal
Fish meal
-
Poultry feeds
Kibaha
Poultry
Poultry
Poultry
Poultry
Kibaha
Kibaha
Kibaha
Mkuranga
feeds
feeds
feeds
feeds
Poultry feeds
Poultry feeds
Poultry feeds
Poultry and dairy
feeds
27
Singida
Existing Potentials
♦ Skilled and experienced human resource in animal feed production;
♦ Availability of feed ingredients: main ingredients are cereals and their byproducts, seed cakes (sunflower, cotton), fish meal, limestone, bone meal, blood
meal are aboundantly found in the country easily;
♦ High demand for compounded animal feeds for the emerging commercial
livestock production;
♦ Potential for own cereal and soya beans production;
♦ Minimal imposed tax for packing bags; and
♦ Available land for building factories/industries.
4.7 Central Veterinary Laboratory
The Central Veterinary Laboratory (CVL) is located along Mandela Road in Temeke
Municipal in Dar es Salaam City. The mandate of CVL is to conduct animal diseases
research, diagnosis and production of biologicals. Livestock diseases especially the
trans-boundary animal disease (TAD) are the major constraints to international
livestock trade. In this regard, the vaccine production unit has been established for
producing vaccines that are useful under local conditions. Currently, the unit is
producing Thermo-stable Newcastle, anthrax, black quarter and brucellosis vaccines.
The current production and demand for these vaccines in the country is as shown in
the table below:Table 16: Production and Demand for Vaccines in the Country
Vaccine Type
Newcastle Disease
Anthrax
Black Quarter
Brucellosis (S 19)
Current Production (Doses)
20,000,000
500,000
500,000
50,000
Estimated Demand (Doses)
180,000,000
26,500,000
26,500,000
13,000,000
Source: MLFD 2010
The production of brucellosis vaccine is still low, about 50,000 doses per year
because it is still undergoing laboratory testing.
Given the above statistics, there is room for investment in vaccines production to
meet the increasing demand in the domestic and the export markets, especially in
the neighbouring countries of Eastern and Southern Africa.
Existing potentials
♦ Skilled and experienced human resource in research and diseases diagnosis;
♦ Modern building and equipment for diagnosing viral diseases such as Avian
Influenza, Rift Valley Fever, Rabies and Foot and Mouth Disease;
♦ Increasing demand for vaccines for domestic (large number of livestock i. e. 30
million free-range chickens, 19.2 million cattle, 13.7 million goats and 3.6 million
sheep) and regional markets; and
♦ Established diagnostic methods which, among others, include: competitive
Enzyme Linked Immunosorbent Assay (ELISA), the Agar Gel Immuno Diffusion
28
(AGID), DNA based technique i.e real time Reverse Transcriptase Polymerase
Chain Reaction (RT-PCR).
Areas for investments
♦ Construct and equip the new vaccines production unit in Kibaha; and
♦ To develop new vaccines and expand production of the existing ones
4.8
Livestock Products, Abattoirs & Meat Processing Plants
Abattoirs & Meat Processing Plants
The Government in collaboration with private sector has initiated the establishment
of Arusha, Dodoma, Morogoro and Sumbawanga abattoirs. The slaughter capacity of
each of these abattoirs, range between 150 to 200 animals per day and therefore
unable to meet the demand of processed meat for both domestic and export
markets. The estimated domestic demand for meat is 449,673 tonnes tones per
year, while there is also an increasing demand for the export markets to UAE,
Kuwait, and Oman. In this respect, investment in the abattoirs and meat processing
plants exist in three categories namely:
(i) Joint venture with the existing abattoirs;
(ii) Outright purchase of semi-finished abattoirs; and
(iii) Construction and operation of new abattoirs and processing plants.
Joint Venture Opportunities with the Existing Abattoirs
(i) Ruvu Abattoir
The Ruvu abattoir is located about 70 km North-west of Dar es Salaam City along
Dar es Salaam – Morogoro Highway. This abattoir is under the National Ranching
Company (NARCO). In addition, the abattoir is in the neighbourhood of Ruvu Ranch
and Kwala holding ground. The establishment has an area of about 2,000 ha which
can be used for feedlotting program and further expansion. It has an installed
capacity to slaughter 800 cattle and 400 sheep and/or goats per two 8-hour shift.
Water availability and electrical connectivity for abattoir operations are assured from
nearby national sources. The abattoir livestock catchment areas include; Ruvu
Ranch, Pugu Livestock Market, Bagamoyo, Morogoro, Dodoma, Handeni and
Korogwe.
The markets for beef and mutton from Ruvu Abattoir include domestic market
(mining centres, tourist hotels, supermarkets, metropolitan Dar es Salaam) and
export market (Gulf countries, DRC, Rwanda, Burundi, Comoro, Zambia and
Uganda).
(ii) The Dodoma Abattoir:
Dodoma abattoir is located in Dodoma Municipality; along the Dodoma - Singida
Highway, occupying an area of 11 ha. The abattoir is jointly owned by National
Investment Company (NICO) and NARCO and is in operation. The abattoir is semiautomated with an installed capacity to slaughter 200 cattle and 200 sheep and/or
goats per two 8-hour shift. It is supplied with power from the National grid and
water from own borehole with capacity to yield 55m3/hr. Efforts are being made to
29
also connect the abattoir to the Municipal water supply system. Slaughter animals
are sourced from within the Central and Lake Zone catchment areas of Dodoma,
Singida, Tabora and Shinyanga regions.
The products from the abattoir are marketed within Dodoma, mining areas, Dar es
Salaam City and exported mainly to Gulf countries and DRC. However, the abattoir
does not have a meat processing unit which is vital for further tapping of both the
domestic and export markets, thus, investment opportunities exist in establishing a
meat processing plant and fattening unit.
Outright purchase of semi-finished abattoir
The Mbeya Plant:
This is a semi finished abattoir (construction is completed and not yet equipped)
located at Mbalizi suburb in Mbeya City along the Mbeya - Tunduma Highway. The
establishment occupies a title deed area of 102 ha. Important utilities such as water,
electricity and telephone services are readily available at establishment and in the
neighbourhood. At full capacity, the abattoir is designed to slaughter 20 - 25 cattle
per hour (200 heads of cattle per 8 hour shift). The abattoir potential livestock
catchment areas include; Iringa, Mbeya and Rukwa regions. Potential market for
products from the plant include; Mbeya city, Iringa and neighbouring countries such
as Malawi, Zambia and DRC.
Construction and operation of new abattoirs and/or processing plants
(i) Kyaka
Kyaka has an area of about 700 ha potential for establishment of abattoir and/or
processing plant. The area is located between Latitude 10 51’ South and Longitude
310 25’ East, in Missenyi District, Kagera Region. It is about 58 kilometres from
Bukoba town, along Bukoba – Kyaka highway and it is close to important livestock
market infrastructures such as; livestock markets, holding grounds and stock routes.
It is also located within potential livestock catchment areas of Karagwe, Ngara,
Muleba, Bukoba Rural, Biharamulo, Chato Districts and neighbouring countries
(Uganda, Burundi and Rwanda). Important utilities including water and electricity
are readily available particularly in the neighbouring areas.
Potential markets for the products from the abattoir and/ or processing plant
include; Kagera, Geita, Mwanza, Simiyu and Shinyanga regions and neighbouring
countries like Uganda, Rwanda, Burundi, and Democratic Republic of Congo.
(ii) Bunda
Bunda has an area of about 200 ha potential for establishment of abattoir and/or
330 52’ East in Bunda District, Mara Region about 80 km from Musoma town along
Mwanza – Sirari Highway and it is close to important livestock market infrastructures
such as livestock markets, holding grounds and stock routes. It is also located within
potential livestock catchment areas of Bunda, Serengeti, Tarime, Musoma Rural,
Magu and Kwimba Districts. The area enjoys a reliable supply of electricity from the
National Grid and can access water from Lake Victoria.
30
include; Mara, Mwanza and Shinyanga regions and neighbouring countries of Kenya,
Uganda, Rwanda, Burundi, and Democratic Republic of Congo.
(iii) Themi
Themi has an area of about 200 ha potential for establishment of abattoir and/or
360 46’, in Arusha City and it is also located within the livestock catchment areas of
Meru, Longido, Monduli, Kiteto, Hanang, Mbulu, Karatu, Ngorongoro and Simanjiro
districts. Important utilities including water and electricity are readily available
particularly in the neighbouring areas.
include; Arusha, Babati and Moshi and export markets in Kenya, Uganda and Gulf
States.
4.9 The Dairy Industry
The dairy industry has a great potential for investment through production,
processing and marketing of milk and milk products. Currently, there are about
600,000 dairy cattle mainly crosses of Friesian, Jersey, and Ayrshire breeds with the
Tanzania Shorthorn Zebu (TSZ) which are kept commercially. Annual milk production
is estimated at 1.65 billion litres, of which 70% comes from the traditional sector,
while the remaining 30% comes from commercial sector.
Currently, per capita milk consumption in the country is estimated at 41 litres. This
consumption level is relatively low compared to the 200 litres recommended by FAO.
Low consumption rate of milk in the country, among others, is attributed to low milk
production, processing and distribution capacities. This calls for more investment in
the industry to meet the increasing demand.
Dairy goat farming is gaining popularity all over the country and it is one of the tools
for addressing nutrition insecurity and income among the rural population. It has
also become an alternative source of milk to households that cannot afford to keep
large dairy animals either due to low purchasing power or lack of land to
accommodate large animals. It is estimated that presently there are about 40,000
dairy goats in Tanzania.
Dairy goats’ breeds available in Tanzania include Toggenburg, Saanen, AngloNubian, Alpine, Norwegian, Mallya goat and their crosses.
The demand of dairy goats is far higher than the supply. Most of the dairy goats
have been introduced in the country by NGO’s such as Heifer International Tanzania
(HIT) and FARM AFRICA and institutions such as The Sokoine University of
Agriculture (SUA) and some of religious institutions such as Roman Catholic and
Anglican. These are not enough to meet the current demand. Production of dairy
goats within the country is needed.
31
The general situation with the milk processing industry is as following;
Table 17: Milk Processing Plants, Installed and Current Utilization Capacities
S/N Region
Processing Plants
1
Brookside (T) (not
operating)
International Dairy
Products
Mountain Green
Dairy
Arusha Dairy
Company
KiJIMO Dairy
Cooperative
Azam Dairy
Tommy Dairy (not
operating)
Tan Dairies
Tanga Fresh ltd
Ammy Brothers ltd
(not operating)
Longido (Engitong)
Terrat (Engiteng)
Orkesumet
(Engiteng)
Naberera (Engiteng)
Nronga Women
West Kilimanjaro
Mboreni Women
Marukeni
Ng’uni Women
Kalali Women
Same (Engiteng)
Fukeni mini Dairies
Kondiki Small Scale
Dairies
Musoma Dairy
Utegi Plant (Ex TDL)
(not operating)
Makilagi SSDU
Baraki Sisters
Mara Milk
Mwanza mini Dairy
Kagera Milk
(KADEFA)
Arusha
2.
Dar es
Salaam
3.
Tanga
4.
Manyara
5.
Kilimanjaro
6.
Mara
7.
8.
Mwanza
Kagera
32
Installed Current
Percentage
capacity/ processing utilization
day
Capacity
45,000
0
0
5,000
3,000
60
1,500
500
33
5,000
2,400
48
1,000
300
30
3,000
15,000
2,000
0
67
0
15,000
40,000
2,000
6,000
30,000
500
40
75
25
500
500
500
300
250
400
60
50
80
1,000
3,500
1,000
1,000
1,000
1,000
1,000
500
3,000
1,200
450
930
300
300
450
350
550
300
800
600
45
27
30
30
45
35
55
60
27
50
120,000
45,000
30,000
0
25
0
1,500
3,000
15,000
3,000
3,000
1,000
2,100
6,000
1,000
400
67
70
40
33
13
9.
Morogoro
10.
11.
Tabora
Iringa
12.
Mbeya
13.
Dodoma
TOTAL
Kyaka Milk Plnt
Del Food
Bukoba Market Milk
Bar
Bukoba Milk Bar-Soko
Kuu
Mutungi Milk Bar
Salari Milk Bar
Kashai Milk Bar
Kikuklula Milk
Processing Plant
Kayanga Milk
Processing Plant
MUVIWANYA
SUA
Shambani Graduates
New Tabora Dairies
ASAS Dairy
Cefa Njombe Milk
Factory
Mbeya Maziwa
Vwawa Dairy
Cooperative Society
Gondi Foods
1,000
1,000
500
450
300
300
45
30
60
500
300
60
800
800
800
1,000
180
170
200
500
23
21
25
50
1,000
300
30
1,000
3,000
4,000
16,000
12,000
10,000
350
200
750
200
6,000
2,700
35
7
19
1
50
27
1,000
900
500
600
50
67
600
394,600
200
105,380
33
27
Source: MLFD, 2010
Efforts to increase milk production, Utegi Plant have concentrated mainly in
improving the indigenous cattle through crossbreeding. In tandem, investment in
establishment of medium and large scale dairy farms, livestock multiplication, milk
collection, processing, packaging and marketing.
Small scale milk processing has emerged in Tanzania since 1990’s as a result of
Government’s effort to promote small holder dairy production. Since then milk
processing activities have been increasing as an effort to utilize the surplus milk
produced in these areas. Surplus milk also exists in the traditional sector of which
much of it is wasted because of lack of processing plants.
Milk processing is carried out in medium and small scale milk processing plants.
Currently, the total (installed) milk processing capacity is about 384,100 litres per
day for all milk processing plants located in various places in the country (Figure 1).
However, most of these processing plants are operating at less than 23% of the
installed capacity. In total, current milk processing is at 88,940 litres/day (Table
18). Reasons for this low performance include inadequate raw milk production (due
to seasonal fluctuations, milk being produced in small quantities in a widely
scattered remote areas) which increases milk collection and transportation costs. In
addition, low milk processing capacities is associated with high cost of milk
processing in terms of equipment, machinery, packaging materials and utilities.
33
Therefore the major challenge is to increase investment in the production, collection,
processing, distribution and marketing of the processed milk.
Table 18: Milk Processing Plants
S/N. Region
1 Arusha
2
Dar es
Salaam
Name
Status
Brookside (T)
Ltd
International
Dairy Products
Mountain Green
Dairy
Kijimo Dairy
Cooperative
Longido Women
Dairy
Cooperative
Arusha Dairy
Company
Azam Dairy
Working
Tommy Dairy
Tan Dairies
Royal Dairy Ltd
3 Dodoma
4 Iringa
5 Kilimanjaro
6 Kagera
Gondi Foods
ASAS Dairy
CEFA Njombe
Milk Factory
Nronga Women
West
Kilimamnjaro
Mboreni
Women
Marukeni
Ng'uni Women
Kalali Women
Fukeni Mini
Dairies
Kondiki Small
Scale Dairy
Kagera Milk
(KADEFA)
Kyaka Milk Plant
Del Food
Bukoba Market
Milk Bar
Processing
Capacity
(litres/day)
Current
Capacity
Processing
in Use
Potential
(%)
(litres/day)
45,000
2,500
6
Working
5,000
3,000
60
Working
1,500
500
33
Working
1,000
300
30
Working
1,000
300
30
Working
5,000
500
10
Working
3,000
2,000
67
Not
Working
Working
Not
Working
Working
Working
Working
15,000
0
0
15,000
0
6,000
0
40
0
600
12,000
10,000
200
6,000
2,000
33
50
20
Working
3,500
1250
36
Working
1,000
300
30
Working
1,000
300
30
Working
Working
Working
Working
1,000
1,000
1,000
3,000
450
350
440
1,000
45
35
44
33
Working
1,200
600
50
Working
3,000
400
13
Working
Working
Working
1,000
1,000
500
450
300
300
45
30
60
34
S/N. Region
Name
Status
Bukoba Milk Bar
- Soko Kuu
Mutungi Milk
Bar
Salari Milk Bar
Kashai Milk Bar
Working
Current
Capacity
Processing
in Use
Potential
(%)
(litres/day)
500
300
60
Working
800
180
23
Working
Working
800
800
170
200
21
25
Kikulula Milk
Processing Plant
MUVIWANYA
Working
1,000
500
50
Working
1,000
350
35
New Musoma
Dairy
Utegi Plant (Ex
TDL )
Makilagi SSDU
Working
120,000
20,000
17
Working
45,000
0
0
Working
1,500
1000
67
Baraki Sisters
Working
3,000
2,100
70
Mara Milk
Working
15,000
6,000
40
Mbeya Maziwa
Working
1,000
1,000
100
Vwawa Dairy
Cooperative
Society
9 Morogoro SUA
Shambani
Graduates
10 Mwanza Mwanza Mini
Dairy
(Sengerema)
Lake Side
Working
900
600
67
Working
Working
3,000
1500
200
700
7
47
Working
3,000
500
17
Working
5,000
0
0
11 Tabora
Working
16,000
200
1
Working
Working
Not
Working
30,000
2,000
0
25,000
500
0
83
25
0
384,100
88,940
23
7 Mara
8 Mbeya
Tanga
12
New Tabora
Dairies
Tanga Fresh
Ammy Brothers
Morani
Processing
Capacity
(litres/day)
Total
Potential areas for investment within the dairy industry include:
♦ Establishments of dairy farms in order to increase milk production,
♦ Establishment of Milk collection centres
♦ Construction of Milk Processing plants,
♦ Manufacturing of dairy equipment and packaging materials.
Establishment of Milk collection centres
Currently, more than 90% of milk is uncollected due to lack of collection centres.
The decision of where to establish milk collection centre will depend on the amount
35
of surplus milk produced and also availability of power supply, road network and
transport facilities. Therefore in order to utilize this potentiality, establishment of a
well coordinated milk collection network could be a kick start towards successful milk
processing business.
Establishment of Milk Processing Plants
Currently, only 1.6% of the milk produced is being processed. Establishment of
processing plants is required in order to exploit the remaining amount of milk. The
size of the plant to be established will depend on the availability of surplus milk.
Other key determinants of establishing milk processing factory include processing
level (scale), land, building, milk processing equipment/machines, packaging
material, handling, storage, distribution and other utilities. Potential areas for
establishing milk processing plants are as indicated below.
Milk collection and processing initiatives are called for in the following
potential milk producing areas;
♦ Central Corridor (Morogoro, Dodoma, Singida, Manyara, Tabora and
Shinyanga)
The zone produces about 516 million litres of milk per annum which is about
30% of the national milk production,
Current installed milk processing capacity is 21,100 litres per day whereas
operating capacity is 1,500 litres per day,
Booming of mining activities in this area (especially Shinyanga) has created
potential market for dairy products,
Central highway (road) has been improved to tarmac level,
♦ Northern zone (Tanga, Arusha and Kilimanjaro)
Has milk production estimated at 184 million litres per annum which is
about 12% of the national milk production,
Has installed milk processing capacity of 103,200 litres/day whereby
currently processing is at 37,290 litres/day,
Good climatic condition (temperate sort of climate) which is favourable
condition for improved dairy cattle,
Largest tourist corridor in the country, hence existence of potential market
for dairy products such as cheese,
Good to invest because of relatively higher dairy cattle (hence, availability of
milk) and target for niche tourist market especially for cheese.
♦ Southern Highlands (Mbeya, Iringa, Ruvuma and Rukwa)
Milk production is estimated at 178 million litres per annum which is about
13% of the national milk production,
Current installed milk processing capacity 33,000 litres per day whereas
operating capacity is 9,600 litre/day,
No medium and large milk processing plant to absorb milk produced,
Good climatic condition (temperate sort of climate) which is favourable
condition for improved dairy cattle,
36
♦
Eastern zone (Dar es Salaam and Coast)
Milk production is estimated at 10 million litres per annum which is about
0.7% of the national milk production,
♦ Lake zone (Kagera, Mwanza and Mara)
It is the highest milk producing area with an estimate of 327 million litres
per annum which is about 23% of the national milk production,
5.0 CONCLUSION
There are ample potential investment and trade opportunities in the livestock
industry in Tanzania. The Government has taken initiatives in facilitating investment
undertakings in various sectors of the economy. Conducive investment policies and
regulatory frameworks are in place.
The investment policy encourages private investors to proactively get engaged either
individually, through joint ventures and through Public-Private Partnership (PPP) in
order to capture available opportunities or through joint ventures in order to capture
available opportunities.
Private investment is likely to provide a vibrant livestock export trade and the
Government is committed in facilitate those initiatives.
37
Boran in NARCO Ranches
Prepared by:
Ministry of Livestock and Fisheries Development,
P.O. Box 9152, Dar es Salaam,
Telephone +255 22 22861910,
Fax 255 22 22861908,
E-mail: [email protected].
Website: http://www.mifugo.go.tz
38

Livestock Investment Opportunities

Transcription

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