Scoping horticulture in Tanzania. Presentation by:

Transcription

1 Scoping horticulture in Tanzania Presentation by: Peniel Uliwa Managing Partner MMA Date: May, 2017

2 Outline 1. Introduction 2. Production Clusters 3. Supply Windows & EU Market Match 4. Emerging Investment Opportunities 5. Business Cases

3 2. Production clusters of horticulture in Tanzania Kigali Bujumbura LAKE ZONE Predominantly Local Kigoma market with emerging EAC exports ± 3 main off takers Mpanda Bukoba Mwanza Tabora Shinyanga Musoma Manyara Singida Dodoma NORTHERN ZONE Nairobi Predominantly High Value Veg (Beans & peas, berries) + Spices. Export >10,000 Mt/year. More than 20 off takers, (mostly TAHA members) Arusha Moshi Kibaigwa Morogoro Tanga Zanzibar Mombasa Dar es Salaam City Sumbawanga Mbeya SOUTHERN ZONE Emerging exports of Avocado (1.500 Mt /yr). Tomato& potato base. ±5 off takers Iringa Makambako Njombe Songea Coast Region COASTAL ZONE Temperate fruits + Spices Lindi Rural ± 5 off takers Nachingwea Lindi Mtwara Masasi Nanyumbu Newala

4 4. SUPPLY windows from TANZANIA to EU Product Peak demand months in EU/NL Remarks for Tanzania Avocado February September Good match only missing out in March-April. Mango October Mid November May July The only window is one month in November. Sweet Onions End December March Good match only missing out in March. Soft Fruits (strawberry, October May Perfect Match berries, raspberry, black berry) Fine Beans All Year Round Perfect Match only missing out in the May-Sept Sugar Snaps, Mange tout April May October November window. Perfect match and great opportunity to expand

5 5. Emerging investment opportunities (products) in Tanzania S/No Product Case Justification 1 Avocado Joint venture (JV) in increasing production, productivity with entrepreneurs with farms /track record 2 Beans, Sugar Snaps, Mange tout 3 Soft Fruits (strawberry, berries, raspberry, black berry) Joint venture (JV) in increasing production, productivity with entrepreneurs with farms /track record Joint venture (JV) in increasing production, productivity with entrepreneurs with farms /track record Rungwe Avocados, 4,000 SHF in Njombe, are interested Entrepreneurs with appropriate farm land ready for JV investments, Perfect match with EU window. There are entrepreneurs with adequate land looking for partners. 4 Canning of Fine Beans Joint Venture to set up beans No local partner identified yet. canning investment 5 Potatoes PPP to set up whole value chain One of top priority of SAGCOT partners

6 6. Emerging investment opportunities (services) in TANZANIA S/No Product/service Case Justification 1 Strategic Pack house/ Logistics services nearby Airports Partnership in establishing state of art pack houses & logistics & service centre TAHA Fresh, Serengeti Fresh have shown interest 2 Packaging manufacturing (export), and Cold chain equipment supply Joint venture (JV) to set up state of the art packaging for EU customer specifications & supply of cold chain equipment Initial interest shown by local investor (Serengeti Fresh) soliciting partnership with interested foreign investor. 3 Logistics infrastructure upgrading Southern Tanzania Off taker investments in Logistics in Southern Tanzania (pack house at Songwe Airport, containerisation along with TAZARA to Dar es Salaam Port) 4 Airfreight Cargo Feasibility of aggregation and airfreighting, insurance from different clusters in Tanzania No clear private sector off taker yet Potential link with TAHA project, SAGCOT & TMEA Growth Hub project TAHA Fresh is working on it and looking for partners

7 7a. Business cases in Tanzania -AVOCADOS Product Case Justification Avocados for EU and UK markets Upscaling Avocado Export - Tanzania through new investments in production, productivity by Kuza Africa Ltd as Lead firm. Over 4,000 Ha of new farms, in 3 different altitude regions in Tanzania. Planning to work with 50,000 Out growers in 5 years. Global Avocado Consumption is growing by 3% p.a. way above production. More entrants with competitive and comparative advantages are entering into production /value chain strengthening and Tanzania is among them. Promotors of the business case have 7 Years track record in setting commercial avocado farming in Tanzania (Rungwe Avocados) and 4,000 SHF in Njombe already part of supply chain. Equity partners are in place for expansion. Kuza Africa Ltd, is looking for Technical Assistance (TA) partners in design, procurement & installation of grading, packing, cold rooms and pack shed equipment and knowhow. Also looking for a partner in R&D (pests and disease management.

8 7b. Business cases in Tanzania OFSP Product Case Justification Orange Fleshed Sweet Potatoes (OFSP) for EU and UK markets TAHA Trading Co Ltd is developing an OFSP satellite /nucleus commercial production business model in Tanzania linked Mehadrin Group as an off taker. Over 600 acres (240 ha) of suitable land acquired in Northern Tanzania and trial production is ongoing (testing a number of varieties). Phase 2 of the project is to expand for export and local markets and into processing and engaging with outgrowers. Demand & imports of OFSP into EU/UK has grown by 41% between 2014 to USA has led in supply but other countries are also competing for a market share. Tanzania has secured supply contract of 20 containers /week (= 1,000 year) with Mehadrin Group (marketing & technical) based successful market tests. TAHA Trading Company is looking for partners to provide technical assistance and funding in design, procurement, set up/ training and management of a comprehensive farm infrastructure and basic equipment including irrigation infrastructure; Cooling and curing technology; Pack House and Packaging line (BRC and ISO Certified). Indicative investment is estimated to be about 2.5 million Euro of which 0.5 mil already secured. Preliminary feasibility study indicates annual approximate profits of between 2-3 million Euro.

9 7b. Business cases in Tanzania Fresh FV -Local/Regional Mkts Product Case Justification Fresh Vegetables and sweet fruits for local and regional markets Establishing a robust fresh vegetables and fruits supply chain in Tanzania (initially Dar es Salaam based) of portfolio of high quality fresh fruits and vegetables to local middle and up markets and regional exports including Middle East. Expanding its outgrowers from 300 to 1,000 and its own farm of 170 acres. Yearly demand for fruits in main urban markets in Tanzania is estimated to be 4.5 million tons and supply is meeting only 40%. Demand in EA urban markets is also growing and unmet. Since 2013, East Africa Fresh Fruits Company has been active and gradually growing in Tanzania. The company has commercial farm & supplied by over 300 outgrowers and has recently established a storage and cold room facility of more than 1,500 square meters and number of retail outlets. Company wants to consolidate its business and is looking for partners, to provide a technical assistance and finance in areas of setting up state of art fresh market outlet in Dsm, online marketing, export to UEA in 2018, expansion of farm infrastructure and outgrowers.

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