Soya Ni Pesa. Steady progress in building the soybean sector in Tanzania. Meet Mr. Nyigu Melkiard

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1 ISSUE 3, APRIL 2015 Soya Ni Pesa Steady progress in building the soybean sector in Tanzania Entering the third year of Soya ni Pesa (SnP), CRS sponsored a mid-term evaluation which affirmed that the project has laid the foundation for effective smallholder participation in the soybean and poultry value chains in Tanzania. The remaining project period will focus on consolidating these gains and ensuring that they are sustainable post-project. SnP aims to improve smallholder well-being by increasing productivity in the soybean and poultry value chains while expanding trade within those value chains. Despite the high rate of farmer participation (95% of target), producers have been unable to adequately supply the soybean market because of one principal factor seed. To address the seed shortage, CRS procured several varieties of seed to test on demonstration plots and small-sized farmer plots. Farmers conducted a participatory variety selection exercise and voted on preferred varieties. However, the varieties they selected are not available in commercial quantities. In collaboration with the SAGCOT center and the Ministry of Agriculture and Food Security, Seedco imported 30 mt of the Semeki variety for wider trials with smallholders. The project also purchased 3 mt of the Uyole Soya 2 variety from the Uyole Agricultural Research Institute. The seeds were distributed to over 3,000 farmers. CRS also trained 60 farmers to produce Quality Declared Seed (QDS) for the upcoming season. The trained farmers were provided with 1,850 kg of seed of a locally released variety Uyole Soya 2, and rhizobia inoculants. A total of ha of QDS farms have been planted in Njombe and Ruvuma regions and 8 ha are under planting preparation in Morogoro. These farmers were trained on soybean seed production and pest and disease management practices. SnP s efforts to facilitate the registration of farmer-preferred varieties and multiplication of locally registered seed through QDS will tackle the seed bottleneck that has seriously constrained the project s ability to meet its production target. And in doing so, it will satisfy demand for soybean from local and regional buyers. Mr. Nyigu Melkiard in his farm at Mavanga village, in Ludewa district. Serapia Mhanje for CRS Meet Mr. Nyigu Melkiard Mr. Melkiard is a very hard working entrepreneur and very optimistic about soybean production. He made a significant investment during the current season and planted 32 acres of soybeans, of which two acres are allocated for seed production as quality declared seeds. Together with other farmers, Melkiard was trained on improved soybean production and received inputs (seeds and inoculants). He also receives technical support through Soya ni Pesa. Melkiard applies his training and follows the recommended soybean agronomic practices including spacing, timely planting and weeding. Melkiard and his fellow farmers who were trained on QDS will be a good source of seeds for the coming season Tanfeeds expansion increases soybean demand SnP by the numbers Joint field visit to SnP and N2Africa projects Forming a soybean platform in Tanzania

2 2 APRIL 2015 Tanfeeds expansion increases soybean demand International Tanfeeds Ltd. is a private, commercial company based in Morogoro, Tanzania. The company was established by Professor Lekule, an entrepreneur who had conducted research and training at Sokoine University of Agriculture for 30 years. Following requests from poultry keepers, Prof. Lekule established the first feed mill which was later transformed into a shareholding company. Tanfeeds invests in the feed industry by introducing the latest technology. This is achieved through a combination of pelleting feed and soya extrusion for inclusion in feed rations. The company produces animal feed by adding value to crops and by-products. Cereals like maize, sorghum, sardines, soya, and byproducts like oilcakes, maize bran, and wheat bran are combined with other inputs like minerals, vitamins and synthetic amino acids to form a balanced diet for livestock. After milling and mixing into required proportions, the feed is packed and sold. Tanfeeds products are formulations done on the basis of feed analysis, and produced from genuine quality supplies of raw materials. As a result, company products are unique and in high demand by customers. The family of Ms. Gadau at their QDS farm, Mdandu village, Wanging ombe, Njombe. Abubakary Kijoji/CRS Tanfeeds currently sources materials from approximately 3,000 Tanzanian maize and oil seed farmers and sells feed to approximately 6,000 livestock producers (primarily poultry). Tanfeeds plans to double sales to approximately 13,000 livestock producers. This expansion will require procurement of 6,000 metric tons of maize and 2,000 metric tons of soybeans on an annual basis. The company has been a major buyer of soybeans since the commencement of the Soya ni Pesa project. Tanfeeds plans to purchase 1,000 tons of soybeans this season from Soya ni Pesa, with projected increases in purchases in years to follow. Tanfeeds is very proud to work with CRS in creating a-long-term demand for the soybean produced in Tanzania. This collaboration demonstrates the impact on smallholder farmers as new markets are created by private sector investments in processing, and facilitation by development partners, to increase the supply chain of soya. SnP by the numbers 126 demonstration plots and 3,765 farmers trials were established and used to educate farmers on improved soybean production techniques and technologies. 319 producer groups with 7,302 members (3,141 female) in Ruvuma, Njombe and Morogoro have been organized, trained on improved soybean agricultural techniques and supplied with inputs for trial and selection of best performing varieties. 1,393 poultry enterprises have been established, of which 977 are owned by women. 4,500 farmers collectively sold 1,500 MT of soybean and generated $720,000 in revenue. A total of 557 SILC groups have been organized with 11,378 (7,935 female) members. Value of members accumulated savings: $380,000; value of disbursed loans: $270,000.

3 3 APRIL 2015 Partnerships Partnerships are a key component of Soya ni Pesa. Creating and strengthening partnerships with other organizations in the soy value chain ultimately benefits small holder farmers. Farmers and visitors discuss about the performance of soybeans and the future perspectives of the crops at Matomondo site in Songea. Frederick Baijukya for CRS Joint field visit to SnP and N2Africa projects In March 2015, a team of experts from Wageningen University, IITA, ARI Uyole, Promasidor and CRS made a field visit to Soya ni Pesa (SnP) and N2Africa sites in the southern highlands. The aim of the visit was to inspect the activities implemented by the two projects and identify any challenges and opportunities, and strengthen collaboration with other stakeholders in the soybean value chain. During the courtesy visit to the Songea District Commissioner (DC) office, the District Administrative Secretary and acting DC, Mr Juma, applauded the visit and the good work being done by CRS and CARITAS Songea to promote soybean production in the district. He assured CRS and CARITAS-Songea of the district administration s full support. Mr Juma promised to work with the Songea district agriculture office to use the same model of SnP to extend soybean growth in more villages in the district. In addition, the district plans to elevate soybean to become one of the major cash crops by Through visits to different villages, the team noted that many farmers, especially those in Songea and Njombe working directly with SnP, are growing soybean. Farmers have high expectations as they see it being an alternative to maize, which has a poor market and high production costs. In Maposeni and Mavanga villages, despite soybean being a new crop farmers have rapidly expanded soybean fields to between 2-30 acres and expect to harvest over 40 MT this season, a steep increase from 9 MT they produced last season. The team visited Silverlands farm, involved in soybean and animal feed production, and was informed that the company has a factory capable of producing 10,000 MT of animal feed of which 20% is soybeans. The company plans to expand the factory capacity to 60,000 MT in five CRS and the International Institute of Tropical Agriculture (IITA) signed a letter of intent to work together under SnP and IITA s Putting Nitrogen Fixation to Work for Smallholder Farmers in Africa (N2Africa) project. The partnership will address constraints and capitalize on synergies, allowing for flexibility on activities and related resources. CRS coordinates and, jointly with N2Africa, supervises the implementation of specific activities in relation to the partnership. IITA progressively networks and seeks assistance, knowledge, ideas, and resources for the general benefit of the partnership while also sourcing from other countries and regions where N2Africa and its partners have been and are currently involved in similar partnerships. CRS and Opportunity Tanzania Limited (OTL) also signed a memorandum of understanding (MOU). The purpose is to develop a framework for cooperation to contribute to the capacity building of SnP farmers by providing access to finance and other business development services. CRS facilitates relationships between OTL and target beneficiaries; OTL builds beneficiary capacity in financial management through training and technical support and provides loans to eligible farmers. CONTINUED ON PAGE 4

4 4 APRIL 2015 CONTINUED FROM PAGE 3 years. Although the company is already growing soybean, demand is higher than what it can produce, and thus local soybean farmers stand to benefit. The team also visited soybean seeds multiplication fields at the Clinton Commercial Farm (CCF) in Iringa. With stateof-the-art farm machinery and technical expertise, CCF is well placed to expand production of soybean and supply seed to farmers in the southern highlands. CCF is already in agreement with SEEDCO to multiply and market its improved soybean varieties (e.g. Semeki, Spike and others) once they are registered in Tanzania. CCF also supports smallholder farmers by demonstrating good agronomic practices of soybean and maize, including rotation of the two crops. These activities complement those of SnP and N2Africa and expand the scope to reach more farmers in the southern highlands. SnP and TOSCI team inspecting a QDS farm of Mr Vicent Haule at Shaurimoyo village in Ludewa. Switbert Willa for CRS Forming a soybean platform in Tanzania A task force exploring the formation of a soybean platform met on March 3, 2015 and finalized its proposal to be presented at the stakeholder meeting in May The task force, including members from Ministry of Agriculture, Food Security and Cooperatives; Agriculture and Research Institute; International Institute of Tropical Agriculture; RUDI; Kijenge Animal Products; CARITAS Njombe; and CRS met and reviewed the various options of forming a soybean platform. The task force looked into different options including an association, a forum, a network, and a platform, and finally agreed to propose the formation of an innovation platform. The task force also proposed a goal and objectives for the platform. The proposed goal for the platform is to promote development of the soybean sector in Tanzania, and the objectives include: To link different actors/stakeholders along the soybean value chain for the proper utilization of available and emerging opportunities along the sector To share experience on the challenges facing the sector To facilitate coordination of interventions To enhance sharing of information among actors along the soybean value chain To facilitate learning among actors along the chain To facilitate lobbying and advocacy on policy related issues There was in-depth discussion on the nature of the membership and the expected level of commitment for the sustainability of the platform. The task force also identified potential members and their roles and responsibilities. The membership is expected to include farmers, agro-input suppliers, traders, processors, researchers, service providers (financial institutions, insurance providers, warehouse operators, and extension workers), regulators and development partners.

5 APRIL Catholic Relief Services P.O.Box 34701, Dar es Salaam, Tanzania Info.SnP@crs.org +255 (022) , This newsletter is produced under a grant from the United States Department of Agriculture for the Soya ni Pesa project.