BEYOND AGRICULTURE – BUILDING LINKAGES FOR THE POOR

Presented by Y.Kayandabila Ministry of Agriculture Food Security and

Cooperatives 25th November 2013

Outline

• Introduction• Sector Performance• Opportunities for Small Scale Rural Producers

in Accessing Inputs• Government Agricultural Sector Initiatives• What Needs to be done to ensure

Sustainability• Conclusion

Introduction• Agricultural Sector remains the Foundation of the Economy. • It accounts for:

• 24.7 per cent of the GDP • About 20 percent of traditional export earnings • Provides 95 percent of food requirement • Employs 75 per cent of the population• Control of inflation, since food contributes about 55.9% of

the inflation basket • Highest multiplier effect in the economy

…..Critical to Reducing Poverty

Real GDP breakdown by sector Percent

Workforce breakdown by sectorPercent, 2009

The sector is critical to reducing povertyThe sector is critical to reducing poverty

Services

Industry

Agriculture

Other

5

100% =

Agriculture

Industry

Services

2012

20.3 million employed

75

20

Industry

Agriculture

Others

Services

8

6

15

Crops

Livestock

HuntingAnd forestry

Fishing

2011

100% = TZS 4.1 tril.

72

Out of which 56% are women

Sector performance...

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Sector Growth Economic Growth

The sector has maintained a steady growth rate of over 4% which is above population growth of 2.8%

Opportunities for Small-Scale rural Producers in accessing inputs

• Existence of Supportive Sectoral, Macro Policies and Programs– NAP, 2013 envisage creating modern, commercial,

highly productive and profitable agric sector– ASDP– AGITF– Tax and non tax incentives– Establishment of Agric Window TIB/ Agric Bank

Opportunities for Small-Scale rural Producers in accessing inputs

– Input Subsidy Program (National Agricultural Input Voucher System -NAIVS and Credit systems)

– PPP – ASA and Suba Agro Trading & Eng. Co Ltd – produce seeds in Mbozi seed farm

– Involves LGAs to produce Quality Declared Seeds

……Input accessibility

• In year 2012/2013

Seed Fertilizer

DEMAND-MT. 60,000 452,202

AVAILABILITY-MT 30,443 240,350

GAP 29,557 211,852

% 49% 47%

Investment in Seeds

Food Self Sufficiency Ratio

Land potential

i.Endowed with 44 million hectares of arable land, 10.8 million hectares, equivalent to 24 percent, is under crop production. Irrigationi Mitigates vagaries of weather;ii Yield is more than 2-3 times compared to rain-fed;Irrigation Potential

i.Irrigation potential estimated to be 29.4 million ha, out of which 2.3 million ha of high potential, 4.8million ha medium potential and 22.3 million ha of low potential suitable for irrigation.

ii. 450,392 is used about 1.53%

iii. about 5% of households use irrigation facilities

11

Irrigation infrastructure

The MAFC intends to increase area under irrigation to reach 1 million hectares by 2015.

Under BRN, it is planned to increase area under irrigation by 389,000 hectares which will add up to the current 450,392 hectares under irrigation.

Development of 40 irrigation schemes with capacity of irrigating 28,114 hectares is in progress under the planned activities in 2013/14.

Further development of irrigation infrastructure is implemented under various initiatives including Government, JICA, WB, USAID-Feed the Future and others to support smallholder farmers.

Irrigation Initiatives

……..91% of agriculture land in use is driven by smallholders farmers

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 farming▪ There are 1,006 large scale

farms in Tanzania with the average size of 1,107 hectares

Investment in Infrastructure

• Investment in rural infrastructure (rural roads, water supply, transportation, processing facilities, communication and electrification.

• SAGCOT, and BRN initiatives 275 Collective Warehouse based market scheme.

• Focus on improving Warehouse Receipt System for enhanced market access to be linked with Commodity Exchange (TCX)

• Tractors Scheme• Increased areas under crop production• Reduced drudgery of agriculture hence increased more

participation of youths in agriculture undertaking• The number of tractors imported through tractor scheme of AGITF

Investment in Mechanization

• Associations, Cooperatives and groups are key stakeholders for the sector and inclusive growth

• Avenue for cost reduction of various services like delivery of loan, inputs, extension services and market information

• Initiative to increased cooperative movement include the amendment of cooperative law and preparation of Cooperative Development Strategy

Empowerment through Producer Organization Farmers Group

Cooperative Societies

• Central to accelerating agricultural growth• Important for release of new varieties and breeders

seeds

Years Variety released

Breeders Seeds

Seed Supplied

(MT)

2011/2012 16 29.2 28,770.2

2012/2013 22 17.4 30,403.9

Technological Advancement for increased Productivity

• Target to have 1 extension officer in every village which total to 15,082 extension officers

• Currently about 7,974 extension officers equivalent to 53% of the target

• In collaboration with LGAs a total of 2,546 extension officers were recruited in March, 2013.

Developed Human Capital in the sector

Developed Human Capital in the sector

What Needs to be Done• Implement the BRN initiative• Promote Research and Development• Scale up input subsidies• Promoting Irrigation farming• Promoting mechanization in agriculture• Reduce Pre and Post Harvest losses• Emphasis on Rural Employment and Decent work• Enhance Marketing and Value addition• Sustainable Land Use Planning and Water Resources

Conclusion

• Science and Innovation have always been the key forces behind agricultural growth in particular and economic transformation in general.

• More specifically, the ability to add value to agricultural produce via the application of scientific knowledge to entrepreneurial activities stands out as one of the most important lessons of Economic History.

THANK YOU FOR LISTENING

ASANTE SANA