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RED MEAT FOR LOCAL AND EXPORT MARKETS SUB SECTOR ANALYSIS TANZANIA DRAFT REPORT, APRIL 2008 & STUDY COMMISSIONED BY SNV TANZANIA AND CONDUCTED BY MATCH MAKER ASSOCIATES LIMITED (MMA) & CONSULTANTS FOR DEVELOPMENT PROGRAMS (CDP-EA) Acronyms ADRI ACBG AMC ASDP AU AWF BACAS BET CBPP CCPP CDP EA DADPS DFZ DSM DVO DVS ECF FAQ FC FDI FMD GDP IBAR IUCN KIA KMC LGA LMU MAFC MITM MLFD MT MWACIBA NAIC NARCO NEEC OIE ORS PINGO RLA RVF SADC SPS SNV TALIMEPA TAMEPA Animal Disease Research Institute Agriculture Capacity Building Grant Arusha Meat Company Limited Agriculture Sector Development Plan Africa Union Africa Wildlife Foundation Bureau for Agricultural Consultancy and Advisory Services Board of External Trade Contegious Bovine Pleuropneumonia Conegious Caprine Pleuropneumonia Consultants for Development Programs E.A. Limited District Agricultural Development Plans Disease Free Zone Dar es Salaam District Veterinary Officer Director of Veterinary Services East Coast Fever Fair Average Quality Farmers Choice Company Limited Foreign Direct Investment Foot and Mouth Disease Gross Domestic Product Inter African Bureau of Animal Resources The World Conservation Union Kilimanjaro International Airport Kenya Meat Commission Local Government Authority Livestock Multiplication Unit Ministry of Agriculture Food Security and Cooperatives Ministry of Industry, Trade and Marketing Ministry of Livestock and Fisheries Development Metric ton Mwanza City Butchers’ Association National Artificial Insemination Centre National Ranching Company National Economic Empowerment Commission Office Internationale des Epizootes Oikoreney Radio Servce Pastoralists Indigenous Non Governmental Organisation Regional Livestock Advisor Rift Valley Fever Southern African Development Council Sanitary and Phytosanitary Netherlands Development Organisation Tanzania Livestock and Meat Traders’ Association Tanzania Meat Processors Association Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report ii TAPHGO TAZARA TCCIA TIC TLCT TLMP TNRF TRC TSZ UWAMI UWANA UWAKAMA UWANYAMA VETAID VIC WTO ZIS Tanzania Pastoralists Hunters and Gatherers Organisation Tanzania Zambia Railway Authority Tanzania Chamber of Commerce Industry and Agriculture Tanzania Investment Centre Tanzania Land Conservation Trust Tanzania Livestock Marketing Project Tanzania Natural Resource Forum Tanzania Railway Corporation Tanzania Shorthorn Zebu Umoja wa Wanenepeshaji wa Mifugu Mwanza (Feedlot Traders Association Mwanza) Umoja wa Wafanyabiashara wa Nyama Arumeru (Meat Traders’ Association Arumeru District) Umoja wa Wafugaji Kanda ya Mashariki Umoja wa Wafanyabiashara wa Nyama Manispaa Arusha (Meat Traders’ Association Arusha Municipal) Vetaid Tanzania Veterinary Investigation Centre World Trade Organization Zoosanitary Inspectorate Services Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report iii Acknowledgements This study has been initiated by SNV Netherlands Development Organisations and executed by Match Maker Associates (MMA) Ltd in collaboration with Consultants for Development Programs (EDP- EA). Specifically, MMA Director and Principal Consultant, Mr. Peniel lead the study team and supported by MMA Senior Consultant Mr. Edmond J. Ringo and EDP – EA Consultant Dr. Hubert Rwehumbiza. The assignment would not have been completed however, without involvement of many people in different capacities. Whilst it may difficult to mention one by one, the consultants would like to acknowledge with thanks all of them for their valuable inputs. We'd like however to mention a few key individuals who particularly helped bring this study to fruition. Ms Christine Bakuname and Christopher Shyres commissioned us to undertake this study and were and instrumental in providing support at all stages of the assignment. Their readiness to share their experiences openly, guidance and time are highly appreciated. We would also like to mention the entire SNV Tanzania focal persons on livestock development – Donald Liya, Sebastian Mhanga, Silvanus Mruma and Said Swalla for their tireless support during our field work. Together with other SNV logistical support staff we are greatly indebted to their support. Mr D.B. Massawe, Assistant Director Ministry of Livestock Development and Fisheries and Professor Mtenga of SUA deserve a special mention for providing the team with current thinking and data on the sector. We are indebted to Hon I. Shirima the Regional Commissioner of Arusha region for his enthusiasm and commitment in finding a way out for the development of the sector. His active participation for the whole morning session of the validation workshop was a clear testimony. Last, but definitely not least we would also like to extend out thanks to the participants of the validation meeting listed in Annex II for their willingness, openness, time and enthusiastic discussions validating the study findings. Finally this report does not necessarily represent the views of interviewees and or their organisations or the study funding organisations. Errors, omissions and interpretations are, of course, the responsibility of the authors. April 2008. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report iv Table of contents ACRONYMS ............................................................................................................................................................................... II ACKNOWLEDGEMENTS........................................................................................................................................................ IV EXECUTIVE SUMMARY ........................................................................................................................................................ VII 1.0 INTRODUCTION............................................................................................................................................................. 1 1.3 1.4 1.5 2.0 APPROACH AND METHODOLOGY ............................................................................................................................ 2 LIMITATIONS ........................................................................................................................................................... 3 STRUCTURE OF THE REPORT ................................................................................................................................. 3 OVERVIEW OF THE LIVESTOCK SECTOR IN TANZANIA ...................................................................................... 4 2.1 2.2 THE IMPORTANCE OF THE L IVESTOCK SECTOR ............................................................................................................ 4 PRODUCTION SYSTEMS ............................................................................................................................................... 4 2.2.1 Agro-pastoralism ............................................................................................................................................ 5 2.2.2 Pastoralism ..................................................................................................................................................... 5 2.2.3 The commercial livestock production ............................................................................................................ 6 2.2.4 Smallholder dairy production ......................................................................................................................... 7 2.2.5 Poultry ............................................................................................................................................................. 7 2.2.6 The pig industry .............................................................................................................................................. 7 2.3 RESOURCES ................................................................................................................................................................ 7 2.3.1 Land................................................................................................................................................................. 7 2.3.2 Livestock ......................................................................................................................................................... 8 2.3.3 Human resources ........................................................................................................................................... 8 2.4 INSTITUTIONAL F RAMEWORK AND POLICY .................................................................................................................... 8 2.4.1 Policy ............................................................................................................................................................... 8 2.4.2 Relevant Legislations ................................................................................................................................... 10 2.5 GENERAL CONSTRAINTS ............................................................................................................................................ 10 2.5.1 Land, Water and Pastures ...........................................................................................................................10 2.5.2 Types of Livestock and Production Systems .............................................................................................10 2.5.3 Livestock diseases ....................................................................................................................................... 11 2.5.4 Weak support services................................................................................................................................. 11 2.5.5 Inadequate livestock products processing and marketing infrastructure ................................................. 11 2.5.6 Scarcity of appropriate financial services ................................................................................................... 11 2.5.7 Weak Stakeholder Organisations................................................................................................................ 12 3.0 OVERVIEW OF RED MEAT INDUSTRY IN TANZANIA ................................................................................................13 3.1 RED MEAT PRODUCTION IN T ANZANIA ..................................................................................................................13 3.1.1 Meat Production in the Traditional Sector .................................................................................................. 13 3.1.2 Meat production in the Commercial Sector ................................................................................................14 3.2 RED MEAT MARKETING INFRASTRUCTURE IN T ANZANIA .............................................................................................15 3.3 MEAT PROCESSING AND TECHNOLOGY TRAINING ...................................................................................................... 16 3.4 THE RED MEAT DYNAMICS REPORTS IN THE CORRIDORS VISITED ............................................................................. 17 3.4.1 Central Corridor (Dodoma, Morogoro, Dar es Salam)............................................................................... 17 3.4.2 North-eastern Corridor ................................................................................................................................. 21 3.5.3 Lake Zone Corridor ...................................................................................................................................... 26 3.5.4 South-Western Corridor ...............................................................................................................................29 3.5.5 South Corridor .............................................................................................................................................. 29 3.6 SUMMARY OF KEY TRENDS ......................................................................................................................................... 29 4 RED MEAT – SUB SECTOR DYNAMICS ..................................................................................................................31 4.1 4.2 4.3 TANZANIA RED MEAT SUB SECTOR MAP ......................................................................................................................31 PRINCIPAL CHANNELS ................................................................................................................................................ 32 ACTORS AND FUNCTIONS ........................................................................................................................................... 32 4.3.1 Input supply...................................................................................................................................................32 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report v 4.3.2 Production, Feedlots and fattening ............................................................................................................. 34 4.3.3 Trading ..........................................................................................................................................................35 4.4 MARKET ANALYSIS .....................................................................................................................................................35 4.4.1 Export market of red meat ...........................................................................................................................35 4.4.2 Local Market ................................................................................................................................................. 37 4.5 PROFITABILITY ...........................................................................................................................................................38 4.6 SUB SECTOR SUPPORT ORGANISATIONS ...................................................................................................................38 4.7 CONSTRAINTS AND OPPORTUNITIES ..........................................................................................................................39 5 LEVERAGE INTERVENTIONS ................................................................................................................................... 42 5.1 5.2 5.3 5.4 5.5 6 PRODUCT AND MARKET DEVELOPMENT ......................................................................................................................42 DEVELOPING KEY RESOURCE BASE ............................................................................................................................42 POLICY THRUST .........................................................................................................................................................43 ORGANISATION AND MANAGEMENT ............................................................................................................................43 PRIORITISATION OF IMPLEMENTATION OF BUSINESS SOLUTIONS ................................................................................. 45 ANNEXES...................................................................................................................................................................... 48 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report vi EXECUTIVE SUMMARY Background SNV Tanzania commissioned Match Maker Associates in collaboration with Consultants for Development Programs to carry out a sub sector analysis of red meat in Tanzania. SNV Tanzania wanted to understand the dynamics of the sector in order to decide whether or not to include this sub sector in the portfolio. The study was conducted in April and May 2008 essentially reviewing secondary literature and field visits to the Northern, Central and Lake Zone corridors, which are prominent livestock development areas in the country. Overview of the Livestock sector in Tanzania The Agricultural sector, including livestock, is the dominant sector in the Tanzanian economy, being the main supplier of food and fibre for home use and export. It accounts for approximately 46% of the country’s Gross Domestic Product (Economic Survey, 2004) and the main source of livelihood for over 75% of the population in Tanzania. The sector is currently the largest foreign exchange earner accounting for 60% of the export earning. Therefore, investment in this sector remains, as a matter of policy, a priority for the Tanzanian Government. The sector has strong forward and backward linkages with the manufacturing sector, providing most of the basic raw materials and inputs to local agro- processing industries. In 2004 the livestock sector contributed 4.1% of the GDP and 8.9% of the agricultural GDP (Economic Survey, 2004). The meat industry contributed 40%; the dairy industry 30% and the balance represent the contribution of pigs, poultry and other products and services from the sector (Livestock Policy, 2007). Out of about 4 million households in Tanzania, some 1.8 million households raise at least one type of livestock (NBS, 2002). Furthermore, about 0.3 million pastoralist households depend on livestock husbandry as the main source of livelihood. Livestock production in Tanzania is divided into the traditional and modern/commercial production systems. The former is further divided into agro-pastoral, pastoral and mixed farming sub systems. The commercial sector is further sub divided into large scale enterprises and smallholder units. The traditional sector is the most dominant, for it accounts for over 95% for cattle, over 98% for goats and sheep kept and slightly less for other species (pigs and poultry). Livestock owners in the traditional system keep livestock for multiple objectives, including (in descending order of importance as reported by the BACAS/MLDF study): To generate income Meet subsistence needs, Store of wealth, cash income, Manure and drought, and Meeting socio-religious needs of communities. Cattle keeping are the most important livestock production activity, followed by goats and sheep. In agro-pastoralism crop production is the main source of livelihood, however, extensive livestock farming, using indigenous breeds (cattle, goats and sheep) and usually using communal grazing, is important. Agro-pastoralism is practiced in the semi arid zone of Mwanza, Mara, Shinyanga, Tabora, Singida, Dodoma, Manyara, Arusha, Kilimanjaro, Mbeya and Iringa. It is the most important system in terms of land use, number of livestock (cattle, sheep and goats) and production (meat and milk). Due to the variation of rainfall in amount and distribution, availability of Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report vii pasture varies between seasons, and places. Droughts occur often, in less than 10 years, and the droughts may last for 2-3 years, causing serious losses in terms of depressed production, animal deaths and forced sales with depressed prices at the markets. To mitigate the variation of feed and water availability, agro-pastoralists practice transhumance, under which the base herd is kept at permanent homes but other animals are moved away in search of grazing. Under pastoralism livestock husbandry (keeping of cattle, sheep and goats) is the most important source of livelihood. It is usually practiced in the more arid lands, where crop production is extremely hazardous due to low rainfall (less than 600 mm a year) and droughts are more frequent than above, occurring every 3-5 years. Key Characteristics of the pastoral production system are: animals represent more than economic assets; they provide social identity and security; large herds are reared mainly for subsistence, with occasional trading; herds are composed mainly of indigenous breeds; practised on extensive basis with animals depending on natural pastures for feed; mobility in response to variations in climate common. In Tanzania, it is estimated that the pastoral economy is the main source of livelihood for about 0.7% of the population. Pastoralists are found in the semi arid and arid zones of Tanzania, with pockets in sub-humid regions of Tanga, Morogoro and Coast. In recent years pastoralists have moved further south in Lindi, Mtwara and Ruvuma. Red Meat Industry in Tanzania The following are the key features and dynamics of the meat industry in Tanzania. Almost (98%) traditional pastoralists and agro-pastoralists Emerging private sector in production, processing and marketing Large number of ‘live’ cattle is exported to neighbouring countries and to Comoro. Small volume of red-meat is been exported mainly to the Middle East Market Minimum value addition is taking place currently - exporting carcasses Some preliminary processing ‘cuts’, sausages and packaging is emerging. Supermarket outlets, modern urban butchers and food service (tourism, institutions) are gaining momentum. Food safety and hygiene standards are generally low in meat industry. Dodoma is setting the pace in terms of having a modern abattoir and changing the hygienic standards of urban retailing. Food service industry is importing from Kenya, South Africa, New Zealand of processed meat products. The Tanzania urban market for red meat is growing. Urban working class is ready to pay premium prices for quality meat. The industry lacks market-driven skills and manpower development system in meat production and processing The extension system to support livestock production is inadequate. Red Meat Sub Sector Dynamics Red meat sub sector is defined in this study to include meat from cattle, sheep and goat, as well as live animals sold for the same purpose both locally and in the export market. The study has not Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report viii analysed the processed meat products such as sausages as well the processing of hides and skins. The emerging sub sector map reveals two principal channels through which red meat moves from the farm to the consumer. These are the channels defined by production system and size of enterprises. The first channel is Smallholder Producer driven and is championed by traditional pastoralists and agro-pastoralists who command over 98% of meat production in Tanzania. It is estimated (2006) that 335,000 tones of meat are produced annually in Tanzania. The meat produced by this channel is almost entirely for local consumption. Typical for this channel is that producers are hardly involved in upstream sub sector functions. Traders of different sizes and specializations dominate the interface between producers and slaughter houses / butchers. In Tanzania live animals are traded in primary and secondary markets and from there they have to go through “approved” slaughter slabs / abattoirs before the red meat is sold in urban and rural wholesale and retail butchers. In the smallholder channel there is an emergence of innovative traders particularly in the Lake Zone who have started to small scale fattening operations before the animals are sold to the secondary markets. The small holder led channel is the also championing cross border trade of essentially live animals through specialised traders. Cross border trade with Kenya as indicated in the previous chapter is the most developed market outlet. The second channel is medium/large scale producer driven and was in the 1980’s dominated by state run commercial ranches. As indicated earlier divestiture of state run ranches is ongoing and their importance is declining. With 11 state run ranches there was a potential to carry up to 90,000 cattle and able produce 1500 tones of beef per annum. The government has also invested in a number of abattoirs, 2 of which are large scale modern ones able to process for export market standards. These infrastructures are also in the process of forging public-private partnerships. Currently the private sector is coming in with integrated large scale ranching and fattening operations combined with modern abattoirs where they process red meat for urban up market (individuals and institutions) and export market. Currently there are large scale integrated ranches in Morogoro, Sumbawanga and Arusha. The red meat sub sector is supplying the processing industries which are coming up in Tanzania but still at nascent stage compared to the neighboring countries. Due to this we have observed that Tanzania is a net imported of processed meat mainly from Kenya, South Africa, and New Zealand. Sub sector constraints and opportunities There are various constraints hampering the development of the sub sector but there are also ample opportunities to explore for the betterment of the sub sector. The major constraints include: Unpredictable amount of rainfall; The low genetic potential of indigenous livestock; Frequent occurrence of diseases and weak disease control capacity; Shortage of breeding stock; underdeveloped market infrastructure; Unfavourable cross-boarder trade environment; Absence of effective market information flows; Inadequate standard abattoirs/ slaughterhouses and meat processing facilities; Unavailability of appropriate financial services packages; Weak producer and trader organisation; Supportive Policy intentions are yet to be Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report ix implemented; Overgrazing which leads to land degradation; Lack of business mindset in livestock communities (tradition not business ). There are also a number of opportunities, which includes; Large herd on Indigenous stock; land resource base; Diverse & favourable climatic and agro ecological zones; Availability of good practices in production management; Growing local urban market; Unmet export market demands; Growing private sector investments in modern abattoirs and meat processing facilities; Government willingness to work with associations; Legislation on land demarcation and ownership; Presence of several non state actors in supporting sustainable pastoralism and agro pastoralism in Tanzania. Proposed Leverage Interventions In order to promote growth and competitiveness in the red meat sub sector, a number of generic interventions are proposed to unlock the potential of the red meat sub sector in Tanzania. These include: Product and market development Analyse specific value chains for upgrading Analyse factors promoting unofficial cross border trade and facilitate formalisation Facilitate establishment of effective MIS (Build on LINKS initiative) Disseminate Lessons from Dodoma meat shops upgrading (urban retailing) Follow up and engage with SUA to disseminate & pilot feedlot business model e.g. through progressive farmers, traders, graduates. Review delivery system of production support services (public-private) Promote SME Processors e.g. Maasai Export Butchery model Upgrading of Market Structures Resource base Develop national qualification framework for meat handling vocation skills Facilitate adaptation of good practices financial services Policy thrust Enforcement accompanied by education on the use of standard weights & measures and auction system Training to consumers on food safely regulations (consumer rights) Adopt a step approach towards conformity to standards and regulations Organisation and management Organisational assessment of existing associations Review good practices in livestock sector associations Develop capacity building programme Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report x 1.0 Introduction 1.1 Background to the study The Netherlands Development Organization (SNV) is an international non-for-profit development organization which provides capacity development services to nearly 2,500 local organizations in over 33 countries worldwide to support them with the fight against poverty. For stimulating Productivity, Income and Employment (PIE), SNV – Tanzania has chosen the Value Chain Development Approach as its main framework for analysis and intervention. Together with all actors in the value chain, SNV aims to optimise the functioning of the chain in order to enhance competitiveness, expand production and/or add value to the chain in such a way that it benefits small producers. The livestock is among the earmarked sub sector for consideration of inclusion in the PIE strategy, in line with SNV’s support to pastoralist livelihoods in their respective regions in the Lake Zone and Northern Portfolio of Tanzania. The Northern and Lake Zone Portfolio areas of operation includes regions, within which have a significant population of pastoralist and agro-pastoralists whose main source of livelihood is dependent on livestock. The regions are host to more than 6 million people supported by the traditional livestock management system occupying more than 64,789 square km of land in arid and semi arid areas that show less potential for other agricultural activities. Based on existing potential and environmental resources, the red meat subsector was chosen to be the initial focus of analysis of its potential for impact. It is from this background that SNV requested Match Maker Associates (MMA) Ltd in collaboration with Consultants for Development Programs (CDP East Africa) Ltd to conduct the red meat sub sector analysis. SNV specifically asked the consultants to: 1) Undertake a sub-sector mapping to establish the key chain actors and their functions, roles and relationships. 2) Collect data on trends in livestock population and production in Tanzania 3) Assess existing markets in terms of traded volumes, organization, and seasonality in terms of supply, demand and prices. 4) Assess the policy and regulatory environment (e.g. land tenure & use, laws & institutional arrangements) with specific references on pastoral and agro pastoralist activities. 5) Evaluate market dynamics in terms of access to trading information, regulatory environment, socio-cultural constraints and determination of prices. 6) Assess existing marketing support infrastructure (slaughter houses, holding grounds, weigh bridges etc.) in terms of location and operational effectiveness. 7) Assess existing suppliers of BDS, financial services involved, other service providers supporting the chain, the range and outreach of these services. Point out gaps that may exist in the services being provided. 8) Bring up a synthesis of the major opportunities and constraints (SWOT) affecting growth and competitiveness (particularly with the focus on improving productivity of pastoral and agro pastoralist) in the sub sector 9) Identification of leverage interventions to promote growth and competitiveness of the sub sector. 10) Taking into account the objectives of SNV in PIE, make recommendations on what should be the niche for SNVs capacity development services, potential intervention strategies and with which actors for desirable programmatic intervention within PIE in the red meat sub sector. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 1 1.2 Objectives and results of the study The scope and expected outputs of a sub sector analysis is generally intended to highlight the dynamics of the sub sector in terms of: Actors, roles & interrelationships Factors affecting the growth and competitiveness (constraints & opportunities) of the various supply channels Quick market scan (exports & national) in terms of critical success factors Identification of potential business solutions that will address constraints and tap the opportunities. Selection of key services with recommendations of strategies for sub sector development (leveraged interventions) The result or deliverable of the study is red meat for local and export markets sub sector report that has assessed the dynamics of the sub sector and is presenting the way forward with respect to the development of the sub sector. 1.3 Approach and Methodology The entry point into the study was to conduct a literature review of existing literatures into the livestock and specifically red meat industry in Tanzania. Tanzania (countrywide) is the proposed intervention area but due to resource limitation, field visits and assessment of factors, actors, channels and dynamics in the sub sector was undertaken in three main livestock corridors in the country namely North Eastern (Arusha and Manyara); Central (Dar es Salaam, Morogoro and Dodoma) and Lake Zone (Shinyanga, Mwanza and Mara). Primary data was gathered by interviewing all (possible) relevant actors for input supplies, research and development, production, processing, marketing and consumption of red meat and red meat products. Regional Livestock Advisors were the team entry points in the regions from which other actors were interviewed. Stockists involved in input supplies of veterinary drugs and animal feed The interviews with these stockists, particularly in main town centres, were important to see the availability and affordability of inputs to livestock farmers. The stockists highlighted various issues related to supply and distribution of inputs, i.e. drugs, vaccination and supplementary feed. Livestock Farmers Interviews with these farmers were important in order to assess current challenges and opportunities in red meat production in Tanzania. Farmers in North Eastern (Arusha and Manyara); Central (Dar es Salaam, Morogoro and Dodoma) and Lake Zone (Shinyanga, Mwanza and Mara) were interviewed. The villages were selected through discussions with the Regional Livestock Advisors. Discussions with the regional advisors were meant to help identify key places to go and key people to be interviewed looking at the pro-activeness of the people, ongoing activities with greater spin-offs to support livestock production and marketing. Livestock Traders The interviews with traders were important to see current challenges and opportunities in livestock trade in the country. The team wanted also to assess the exports (official and unofficial) to neighboring countries of Kenya, Zambia, Malawi, Uganda, Rwanda and Burundi and to Middle East and Comoro. Some of traders who were interviewed included butchers, some of which buy live Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 2 cattle and goats / sheep and pay for slaughtering service before retailing, while others buy on wholesale carcasses from wholesalers and retail to final consumers. Key Informant Interviews Interviews were held with Professor Mtenga at the Sokoine University of Agriculture (SUA) who is an expert in Red Meat and has been leading a study to establish the economics of feedlot initiative. Interesting interviews were held with four major abattoirs officials in Tanzania, namely Dr.Omolo and Mr Tilya (Dodoma Modern Abattoir); Dr Mwachambi of Meat Industry Training Centre – VETA Dodoma; Ms Happy Ignatius (Production Manager of Arusha Meat Company Limited) and Mr Stanley Maderi (Chairman of Ukonga Abattoir - Dsm). Interview was held with Mr Dereck van Rooyen who runs an integrated large scale animal faming in Morogoro (Tanzania Pride Meat Company). The study team interviewed Dr Rwegasira the current Arusha Municipal Agriculture, Livestock and Cooperatives Officer and Mr. Oloitiptip Ngala – Procurement Manager of Kenya Meat Commission (KMC).Through interview with them it was apparent to understand why there is significant cross-boarder trade between Kenya and its neighbours (Tanzania, Uganda, Sudan and Ethiopia). End market interviews were held with supermarkets (Shopritte, and butchers across the regions as well as random discussions with different segments of urban consumers. Potential services providers/ Stakeholder analysis During this study, a number of NGOs such as VETAID Tanzania and CORDS were interviewed. Through these NGOs a number of NGOs supporting livestock development were named and their mandate and coverage identified. It was however noted that most of these NGOs are concentrated in the north eastern corridor – specifically Manyara, Arusha and Kilimanjaro regions. Further interviews were held with PASS who works with CRDB Ltd in an attempt to find appropriate access to credit opportunities to finance the sub sector. Other important service providers who were not visited but their detailed obtained from interviews and secondary literature include MSTCDC, PINGOS, TAPHGO, UCRT Ujamaa, Sand County Foundation, TAHA, IIED East Africa Programme, RECONCILE, The World Conservation Union (IUCN) and Tanzania Natural Resource Forum (TNRF). 1.4 Limitations Due to resource constraints, this study was conducted as a quick sub sector scan of Tanzania red meat for local and export markets. The idea is that if SNV chooses to focus on the sub sector, more in-depth value chain analysis will be undertaken. Essentially, few regions were visited and mostly secondary data is used in this analysis. 1.5 Structure of the Report The report is divided into five sections. Section one gives the background to the study, the study objectives and the methodologies adapted. Section two and three give an overview of the livestock sector and red meat industry in Tanzania respectively. The next chapter (4) assesses and analyzes the sub sector dynamics and hereafter in chapter five, strategies for sub sector development and recommendations are presented. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 3 2.0 Overview of the Livestock Sector in Tanzania The Agricultural sector, including livestock, is the dominant sector in the Tanzanian economy, being the main supplier of food and fibre for home use and export. It accounts for approximately 46% of the country’s Gross Domestic Product (Economic Survey, 2004) and the main source of livelihood for over 75% of the population in Tanzania. The sector is currently the largest foreign exchange earner accounting for 60% of the export earning. Therefore, investment in this sector remains, as a matter of policy, a priority for the Tanzanian Government. The sector has strong forward and backward linkages with the manufacturing sector, providing most of the basic raw materials and inputs to local agro- processing industries. The major agricultural activities in Tanzania are crop production, horticulture, and livestock farming. As a result of the varied ecological zones, a wide range of crops are cultivated and livestock reared. Traditionally, the major foreign exchange earners have been coffee cotton, and tea. More re-entry export of horticulture and cut flowers have picked as significant foreign exchange earners. Other products exported are beef, sisal, cashew nuts, pyrethrum, fruits and vegetables. 2.1 The Importance of the Livestock Sector In 2004 the livestock sector contributed 4.1% of the GDP and 8.9% of the agricultural GDP (Economic Survey, 2004). The meat industry contributed 40%; the dairy industry 30% and the balance represent the contribution of pigs, poultry and other products and services from the sector (Livestock Policy, 2007). Out of about 4 million households in Tanzania, some 1.8 million households raise at least one type of livestock (NBS, 2002). Furthermore, about 0.3 million pastoralist households depend on livestock husbandry as the main source of livelihood. In a nutshell livestock sector contributes the following to the national economy: Supplies animal food products thus contributing to national food security; Source of income and employment opportunities, mostly in the rural economy. Produces raw materials for local industries, e.g. hides and skins. Produces inputs to crop production (manure) and other industries, e.g. drought power Acts as a store of value and investment channel for rural households; Fulfils cultural roles, which are valuable to many communities. 2.2 Production Systems Livestock production in Tanzania is divided into the traditional and modern/commercial production systems. The former is further divided into agro-pastoral, pastoral and mixed farming sub systems. The commercial sector is further sub divided into large scale enterprises and smallholder units. The traditional sector is the most dominant, for it accounts for over 95% for cattle, over 98% for goats and sheep kept and slightly less for other species (pigs and poultry). Livestock owners in the traditional system keep livestock for multiple objectives, including (in descending order of importance as reported by the BACAS/MLDF study): To generate income Meet subsistence needs, Store of wealth, cash income, Manure and drought, and Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 4 Meeting socio-religious needs of communities. Cattle-keeping is the most important livestock production activity, followed by goats and sheep. The traditional production system for cattle sheep and goats is further subdivided into (i) agropastoral, pastoral and mixed farming sub systems. Mixed farming is practiced in the humid zone where farmers are basically crop producers but keep indigenous cattle for many reasons, including getting manure and drought power. 2.2.1 Agro-pastoralism In agro-pastoralism crop production is the main source of livelihood, however, extensive livestock farming, using indigenous breeds (cattle, goats and sheep) and usually using communal grazing, is important. Agro-pastoralism is practiced in the semi arid zone of Mwanza, Mara, Shinyanga, Tabora, Singida, Dodoma, Manyara, Arusha, Kilimanjaro, Mbeya and Iringa. It is the most important system in terms of land use, number of livestock (cattle, sheep and goats) and production (meat and milk). Due to the variation of rainfall in amount and distribution, availability of pasture varies between seasons, and places. Droughts occur often, in less than 10 years, and the droughts may last for 2-3 years, causing serious losses in terms of depressed production, animal deaths and forced sales with depressed prices at the markets. . To mitigate the variation of feed and water availability, agro-pastoralists practice transhumance, under which the base herd is kept at permanent homes but other animals are moved away in search of grazing during the dry season 2.2.2 Pastoralism (see photo in SOA report) Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 5 Under pastoralism livestock husbandry (keeping of cattle, sheep and goats) is the most important source of livelihood. It is usually practiced in the more arid lands, where crop production is extremely hazardous due to low rainfall (less than 600 mm a year) and frequent droughts that occur every 3-5 years. Key Characteristics of the pastoral production system are: animals represent more than economic assets; they provide social identity and security; large herds are reared mainly for subsistence, with occasional trading; herds are composed mainly of indigenous breeds; practised on extensive basis with animals depending on natural pastures for feed; mobility in response to variations in climate common. In Tanzania, it is estimated that the pastoral economy is the main source of livelihood for about 0.7% of the population. Pastoralists are found in the semi arid and arid zones of Tanzania, with pockets in sub-humid regions of Tanga, Morogoro and Coast. In recent years pastoralists have moved further south in Lindi, Mtwara and Ruvuma. Pastoralists have adapted to the reality of the dry lands that they occupy, and are able to make meaningful use of what are considered to be hardship areas to support their livelihoods. They have developed extensive traditional knowledge about their environment and have evolved survival techniques that are premised on flexibility in natural resource use, mobility and diversification of herds to insure against such eventualities as droughts, livestock rustling and disease outbreaks. The challenges that face pastoralism in Tanzania arises not so much from the irrationality of the production system as such but mainly from outside forces that are imposed on the system, including frequent reduction of grazing lands for other uses (crop production and conservation), without offering alternative source of livelihood to the expanding pastoral communities. 2.2.3 The commercial livestock production The commercial livestock production is further sub divided into large scale enterprises and smallholder units. The former was introduced on a limited scale during the colonial period but expanded by the state in the nineteen seventies and eighties. By mid nineteen nineties the public large scale enterprises were performing poorly, both in physical production and financial terms. Most enterprises have been privatized, except for state farms retained to produce improved breeding stock and part of NARCO ranches. The National Ranching Company (NARCO) is a parastatal company mandated to produce beef cattle for the domestic and export market. The eight existing ranches possessed an area of 230,384 hectares, with capacity to hold over 100,000 livestock units. In the last two years, each ranch has been divided into a core unit of 20,000 hectares under NARCO and a number of smaller ranches of 500-5,000 hectares sold to private national investors. The core ranches under NARCO have about 43,000 heads of cattle and 3,025 sheep. The ranches have good quality Boran herd, suitable for upgrading local breeds for meat production. Off take of the ranches at 22% is double the national herd while slaughter weight of ranch bred steers is over 150% of national herd. Apart from the government owned farms, there are a number of private investors engaging in medium ranching and fattening. Some of these enterprises are targeting the upper beef markets in the country (super markets and tourist hotels) and export of beef. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 6 2.2.4 Smallholder dairy production Smallholder dairy production, based on intensive pasture and improved dairy cattle (and goats), expanded from the mid eighties in several highland areas by Government with assistance from donors (Netherlands and Switzerland) and working with international NGOs (Heifer Project International, etc) and local ones. The smallholder intensive dairy system is responsible for the rapid build up of the dairy herd from less than 200,000 in the early 1980 to current level of over 500,000 dairy cattle, contributing to 30% of milk production in the country. 2.2.5 Poultry Until recently, the poultry industry was dominated by the traditional production system, characterised by indigenous chicken that are left loose to fend for themselves. There about 33 million indigenous chicken, mainly in rural areas. There is an increasing demand for local chicken meat, to a less extent, eggs so that the raising of local chicken is boosting incomes for smallholders, especially after a break through in the control of Newcastle Disease in rural poultry. The traditional system is constrained by diseases and predation. In the last decade private investment has expanded the modern poultry sub sector, responding to the rapid rise in demand for poultry meat and eggs, especially in the expanding urban centres. The modern sub sector raises about 25-30 million poultry a year (MALD, 2007). Most poultry are kept in small farms of 500-3,000 birds at a time, but there are a few larger scale poultry farms, fully integrated from production to marketing of processed poultry meat and eggs. Due to low performance of the breeding farms about 8-12 million day-old chicks are imported a year (MALD, 2007). The commercial industry in constrained by scarcity of good quality feeds, scarcity of capital and managerial capacity to operate large poultry farms. Supermarkets and tourist hotels are still importing eggs and poultry meat to supplement local supplies, when veterinary restrictions are not in force. 2.2.6 The pig industry There are about 1 million pigs in the country. There has been a rapid increase in pig production in the last two decades due to surging demand for pork in restaurants and bars. The industry is constrained by high cost of feeds and frequent outbreaks of epidemics (African swine fever). 2.3 Resources 2.3.1 Land Tanzania has about 900,000 km2 of land of which 600,000 km for and grazing, as indicated in Table 2 below: Table 2: Grazing land by rainfall zones Zone Sq. Km Potential Stocking : ha/TLU Potential TLUs: Arid Semi-arid Dry-sub humid Humid Afro-alpine Total 195 000 175 000 165 000 50 000 15 000 600 000 More than 4 2-4 1-3 0.5-2 - 4 300 000 5 800 000 8 300 000 1 600 000 20 000 000 Source: FAO, 2004 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 7 Theoretically there is enough land to accommodate the present herd of grazing livestock of about 17 million Tropical animal Units (TLPs). The overgrazing problem prevalent in the main ruminant livestock raising areas in arid and semi arid areas and land use conflicts in humid areas are basically caused by poor distribution of the livestock, with concentration of animals in areas with water and free from tsetse flies. 2.3.2 Livestock There are about 18.8 million cattle, 12.1 million goats, 3.6 million sheep, a million pigs and 60 million chickens (Njombe et al, 2008). Most of the livestock are of indigenous types, well adapted to the prevailing low level of feeding, endemic animal diseases and general husbandry practices. The most important livestock, in terms of output of animal products and services, are cattle, goats, sheep and poultry. There are about 500,000 improved dairy cattle, 150,000 beef cattle and 30 million poultry (Draft Livestock Policy, 2007). 2.3.3 Human resources There are several livestock raising communities with many skilled men and women who love raising livestock and have accumulated valuable knowledge and experience in managing stock under serious challenges of prevailing production environment. However, most livestock owners lack relevant modern skills in livestock production, marketing and processing. The young ones among these communities have received primary, and a few secondary, education which can facilitate adoption of improved livestock farming practices. The literacy rate among pastoral communities is low. This places considerable disadvantage on pastoral communities. 2.4 Institutional Framework and Policy 2.4.1 Policy There is increased Government interest to make the livestock sector vibrant and expand production and productivity on a sustainable basis. The Mission of the Ministry of Livestock Development and Fisheries is stated to be: “To ensure that livestock resource is developed and managed sustainably in collaboration with other stakeholders for improved human livelihoods” On the policy front the Ministry Livestock Policy of 2007 has the following objectives: (i) Contribute towards national food security through increased production, processing and marketing of animal protein to meet national nutritional requirements. (ii) Improve standards of living of people engaged in the livestock industry through increased income generation from livestock. (iii) Increase the quantity and quality of livestock and livestock products as raw materials for local industry and export. (iv) Promote integrated and sustainable use and management of natural resources related to livestock production in order to achieve environmental sustainability. (v) Strengthen technical support services, develop and introduce new technologies and human resources development within the livestock industry. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 8 (vi) Promote production of safe and quality foods of animal origin in order to safeguard consumers. (vii) Mainstreaming of cross-cutting and cross-sectoral issues such as gender, HIV/AIDS, land and environment. (viii) Reduce both the use of imported energy, over exploitation of forest products and the human drudgery by increasing the use of draught animal power and biogas. The Local Government Reform Programme implemented since 1998 has transferred decisions on development to the lowest level of Government. The goal is to improve participation of most people in decisions that affect their livelihood, including provision of services to livestock and livestock farmers. This move should benefit livestock communities, especially in districts where pastoralists and agro-pastoralists form an important component of the population. However the reverse seems to be happening in districts where livestock farmers are the minority, especially conflicts in land use and allocation of budgets. Another challenge is related to striking a balance between the needs and priority of the sector ministry (reporting on sector issues, implementation of regulatory functions and staff development) and those of the district councils. In order to facilitate improved services and support to the sector, the Government has created a separate ministry of Livestock Development and Fisheries with a fully fledged Department of Traditional Production Systems and Pastoralism. The department is to support reform and development in the dry grazing areas where over 90% of cattle, sheep and goats are kept and where the agro-pastoralists and pastoralist earn their livelihoods. Additional impact is expected to come from district development projects under local councils where more than 70% of public (national and donor) budgets are allocated and the voice of livestock herders is expected to have more impact than before. The Agricultural Sector Development Strategy (ASDS) is another important milestone of government commitment towards supporting the sector. The objective of the ASDS is to create an enabling environment for improving agricultural productivity and profitability, for improving farm incomes, for reducing rural poverty and for ensuring household food security. At the heart of ASDS is a sector-wide approach to: i) Changing the function of central government from an executive role to a normative one, ii) Empowering local government and communities to reassume control of their planning processes, and iii) Establishing an enabling environment which attracts and encourages private sector investment in agriculture, (MALD,2003) A follow up to the ASDS was the launching of the Agricultural Sector Development Programme (ASDP) in 2005. The programme supports Government policies and strategies of: iv) a focus on poverty reduction; v) the decentralisation of many public sector responsibilities to local government authorities, vi) increased participation and involvement of local communities in decision making; and vii) a shift towards private sector leadership in production, marketing, processing and service delivery. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 9 2.4.2 Relevant Legislations There are several legislations relevant to livestock development that have been revised or enacted. The most notable are: The Veterinary Act No. 16 of 2003 which among other things mainstreamed the use of paravets and community animal health workers in providing services in rural areas. Although not many pastoral areas have utilized the provisions of the law yet, the possibility for training and using para-vets as a strategy to increase and improve availability of veterinary assistance in remote areas is facilitated by the law. The Meat Industry Act 2006 which provides, among other things, for the establishment of the Meat Board and other stakeholder organizations to promote production, processing and marketing of meat and meat products. Further, the act formalises and enhances the role of the private sector in the development of the sub sector. The implementation of this Act is at its inception phase. The Grazing and Animal Feeds Act (in preparation) which is intended to promote the supply of good quality animal feeds and promote and control the use of grazing land for the interest of livestock herders and sustainable natural resources use. 2.5 General Constraints Despite the potential that exists for further development of the livestock sector, there are considerable constraints as indicated below: 2.5.1 Land, Water and Pastures Most livestock depend on communal land use for grazing. Although the system has existed for many years, it is facing a fundamental problem of lack of control to access to the ever decreasing grazing area. This leads to over/use and contributes to recurrent conflicts among livestock raising communities. The problem of decreasing grazing resources is compounded by poor distribution of livestock infrastructure and services, including water, cattle dips and disease control services. The frequent conversion of grazing areas into other uses (cultivation, conservation, etc.) is crating uncertainty among pastoral communities. The uncertainty complicates any efforts to encourage pastoral communities to take a long term view to investing in livestock and grazing resources improvement. 2.5.2 Types of Livestock and Production Systems Although the country has millions of different types of indigenous livestock, most have low genetic potential for high production and productivity. For example, the indigenous cattle grows slowly to a light mature weight of only 250-300 kg in over 5 years compared to improved beef breeds (Boran) that can attain 350-400 kg live weight in about 3 years under low investment improved system. The indigenous goats and sheep grow to only 25-30 kg mature weight, while improved goats and sheep easily reach slaughter weight of 40 kg in less than 18 months. In addition the quality of meat from local breeds is low against the demand of upper internal markets and export, especially in terms of taste and fat distribution of fat. The local investors in the fattening businesses are reverting to cross bred and dairy bulls. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 10 2.5.3 Livestock diseases Livestock diseases were mentioned as the most important constraints by most livestock owners in the country, BACAS/MLD, 2004. Not only are diseases causing loss in production/productivity but also diseases increase cost of production terms of cost of control. Diseases disrupt internal markets (quarantines) and prohibits exports into lucrative markets, e.g. to Europe and S. Arabia. The most important diseases attacking ruminant livestock mentioned in the study were tick-borne diseases, trypanosomosis, CBPP/CCPP, Brucellosis even among pastoral livestock, and Rift Valley Fever. Control technologies for all these common diseases are available and affordable by most livestock farmers. The real problem seems to be failure to mobilise livestock farmers to form viable groups/committees that can mobilise procurement of dip washes, drugs, vaccines and other preparations on the one hand and enforce adoption of the appropriate control measures by members on the other. 2.5.4 Weak support services Support services to the livestock industry include extension/training in technology use, treatment and control of animal diseases, dissemination of market information and regulatory services. Others include training and consultancy services in small/medium scale business development. Until the mid nineteen nineties the above services were provided by Government. The adoption of the economic reform programmes dictated that only regulatory and control of epidemic diseases remain to be core government services. Extension is still seen as public good to be funded by Government, although delivery need not be done by government. The other services are considered to be private goods that should attract private sector delivery on commercial terms. Currently neither public nor private delivery systems are adequate, especially in remote rural areas of pastoralists and agro-pastoralists. 2.5.5 Inadequate livestock products processing and marketing infrastructure There is inadequate infrastructure for processing and marketing of livestock and livestock products. There are 405 livestock markets, 22 are under the Ministry of Livestock and Fisheries, including 10 border markets and 383 under district councils. Most of these need improvements on fences, water supply and weighing bridges. There are 13 holding grounds and several stock routes. On all of these water and disease control services are inadequate. There is only one abattoir (Dodoma) certified for public slaughtering for export; another one (SAAFI in Sumbawanga) is the process of being registered. Given the size of the country and infrastructure more abattoirs with export standards are needed in the north and North West. Besides, except for Arusha and Dodoma, all major cities (Dar ea Salaam and Mwanza), municipalities and townships have slaughter facilities far below their need (capacity and hygiene). There is loss of by-products from slaughtering due to poor design of the abattoirs or state of disrepair. 2.5.6 Scarcity of appropriate financial services In recent years new opportunities for expansion of production, processing and marketing of livestock and their products have arisen and the private sector are attempting to cease the opportunities. Examples including up take of livestock trading by many young traders who only a few years ago were livestock trekkers, the short term (2-3 months) fattening of cattle in the lake Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 11 zone and processing of meat in the northern zone to take advantage of tourist hotels in the area. Most of these emerging entrepreneurs are constrained by finance to finance their plans. The BACAS/MLD study referred to above showed that the main sources of finance for financing their ventures were loans from relatives and friends and inheritance. Most respondents stated it was difficult to get loans from conventional financial institutions, due inability to prepare business plans, lack of collateral and the Financial Institutions (FIs) not have the right financial packages for long term financial commitment as needed in livestock projects. Even where stakeholder organisations exist, establishment of saving and credit cooperative societies (SACCOs) had not been given priority. 2.5.7 Weak Stakeholder Organisations The BACAS / MLD study indicated that although there were at least a few stakeholder organisations in each of the main livestock production regions, most of the organizations were weak in terms of existing members against potential members. Most had weak financial base and were informal, in that they had not been registered into any of the several registration options (cooperatives, association, CBOs, NGO, etc). As most interviewees showed willingness to join if approached, it would appear the low uptake of membership was due to weak promotion and extension on stakeholder organisation as an instrument for capacity building of livestock producers, processors and traders of livestock and their products. Initiatives to revive and strengthen producers and traders associations are now on agenda at different levels. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 12 3.0 Overview of Red Meat Industry in Tanzania 3.1 Red Meat Production in Tanzania The Red meat in Tanzania is comprised of beef, mutton and goat meat and accounts for over 74% of all the meat produced and consumed locally, the balance (22%) is covering poultry and pork meat MLD, 2005. Beef is the most important meat produced and consumed in Tanzania. For example in 2004 out of about 260,000 tones of red meat produced, 185,000 tones were beef and 75,000 tonnes was mutton. The meat produced locally comes from the 18.8 million cattle, 13.6 million goats and 3.5 million sheep raised almost in all regions of Tanzania. 3.1.1 Meat Production in the Traditional Sector Almost all the red meat comes from indigenous cattle sheep and goats raised under the traditional production system in semi arid and arid areas. However, the distribution of cattle, sheep and goats varies between regions, depending on the differences on climate, prevalence of debilitating animal and human diseases and tradition for keeping livestock. The distribution of cattle (indigenous), goats and sheep per corridor is as indicated in Table 3 below Table 3: Distribution of Cattle, Goats and Sheep in Tanzania. (‘000) Corridor/Zone Cattle Goats Sheep No % No % No % Western 9,424 50 5,324 40 1,209 31 Central 3,257 17 1,997 15 619 16 Northern 3,880 20 4,260 32 1,884 48 South Western 2,181 12 1,464 11 193 5 Southern 100 1 340 2 37 1 Tanzania Mainland 18,842 100 13,385 100 3,942 100 Source: Study Team April 2008- updated from 2002/03 Census, Based on an estimated off-take of 10% and 25%, cattle and goats/sheep, and the respective carcass weight of about 100kg and 12kg for cattle and goat/sheep respectively, the current (2008) output of beef and mutton is estimated to be as shown in Table 4 below. Table 4: Estimated Output of Beef and Mutton in Tanzania (‘000) Corridor/Type of Meat Beef Mutton Red Meat The Western Corridor 94,240 19,599 113,839 The Central Corridor 32,570 7,848 40,418 Northern Corridor 38,880 18,432 57,312 The Southern Corridor 21,810 9,471 31,281 Southern Corridor 1.000 1,131 2,131 Total 188,500 56,534 244,981 Source: Study Team April 2008- updated from 2002/03 Census, As indicated in the two tables above the western corridor hosts over 50% of the indigenous cattle, 40% goats and 30% sheep and produces 46% of the red meat in the country. The northern corridor is the second biggest producer of meat at 16%. The southern corridor produces the least red meat, mainly due to hosting very few cattle, sheep and goats. However, southern zone offers Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 13 opportunities for taking more grazing livestock from further north as it has unused lands suitable for pasture. Indeed, the Government is setting aside grazing areas to receive pastoralists being relocated from the south-western zone. There is substantial potential for improvement of the traditional red meat sub sector through the adoption of improved technologies in production, processing and marketing technology. Meat production can be increased through improved husbandry, particularly adequate feeding and provision of water throughout the year, prevention/treatment of common animal diseases followed by introduction of more productive livestock. The measures need not be elaborate and need to be of low cost, as has been demonstrated on NARCO ranches and some private farms/ranches. The most difficult improvement will be provision of adequate feeding and water during the dry season. But some relocation of the national herd, removal of unproductive animals and judicious use of crop/industrial by products will go a long way towards the desired improvement in feeding. The Government has allocated about 706,800 km2 for livestock grazing in Mbeya, Coast, Lindi and Iringa regions to accommodate pastoralist displaced from reserved areas, MALD, 2007 3.1.2 Meat production in the Commercial Sector The commercial sector consists of large scale ranches, emerging private ranches and feedlots. About 100,000 beef herd is raised under this system, representing less that 1% of the national herd, but producing a higher proportion of beef (about 3,300 tons) because of the higher off take rate (22% for NARCO) and heavier carcass (150kg). The quality of beef produced on commercial ranches easily grade “Special” and “One*, the kind of meat demanded by the upper markets hotels and export markets. According to the ongoing divestiture programme, NARCO is operating 9 ranches in 7 regions, which together holds a total of 45,000 cattle and 3,025 sheep and goats. Kongwa and Ruvu ranches would be retained as potential disease free areas to be used to quarantine animals for export as live animals or beef. The rest of the ranches have been sub-divided into core ranches of 20,000 ha each to continue under NARCO as modal ranches for the medium commercial private ranches to be established. The remaining areas of the ranches, including the whole of Usangu and Uvinza ranches, have been sub-divided into 500 to 4,000 ha units for sale to investors for ranching. The status of the different ranches and their capacities is as follows in table 5; Table 5: Privatization of NARCO Ranches S/No Name of Ranch Total Area (Ha) Area Model Ranch Area Under Satellite Ranches (ha) No. setelite ranches A. Group of Ranches under privatisation 1. Mkata 71,000 20,000 51,000 13 2. 3. 4. 5. 6. 7. 8. 0 20,000 0 20,000 20,000 20,000 20,000 43,725 10,354 56,175 21,246 44,650 40,851 21,700 11 3 14 6 11 10 5 Usangu West Kilimanjaro Uvinza Mzeri Kalambo Missenyi Kitengule 43,775 30,354 56,175 41,246 64,650 60,851 41,700 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 14 9. Kikulula Complex 76,940 20,000 B. Ranches designated to become Disease Free Zones 10. Kongwa 38,000 38,000 11. Ruvu 48,383 48,383 Total 573,024 226,383 56,940 14 Nil Nil 346,641 Nil Nil 87 Source: Investment opportunities in the Livestock Industry, April 2006 The commercial ranches have a strategic role in the red meat sub sector in being potential source of breeding livestock for the pastoral production system, and a market for unfinished immature males stock for growing out (back grounding) before the animals are sold for slaughter or fatting on feedlots. Besides, the ranches could be testing grounds for technologies to be used in the pastoral areas, e.g. improved range pastures. 3.2 Red Meat Marketing Infrastructure in Tanzania The basic infrastructure for livestock marketing include livestock markets, stock routes and holding grounds, while those for processing meat include abattoirs and slaughter houses. There are about 405 livestock markets, 22 of which are secondary markets under the Ministry of Livestock Development. The remaining 383 are primary market under district councils. There are 10 border markets intended to facilitate and formalize sale of animals to neighbouring countries. The goal has not been reached as until now traders on both sides prefer informal trading. The markets are connected through a net work of stock routes along which check points and holding grounds provide watering points and veterinary check on trade stock. Many of these installations need repair. Most holding grounds and stock routes land has been encroached upon. There are two public abattoirs namely Arusha and Dodoma with the capacity to slaughter about 200 cattle and 200 small ruminants each per day. There are quite a number of privately owned slaughter houses of varying standards and capacity country wide. In general they employ basic and rudimental technology and hygiene conditions are not satisfactory. Dar es Salaam alone has 6 such slaughter houses with capacity to slaughter 720 animals a day as follows: Ukonga (400); Vingunguti (120); Mbagala (70); Kimara (70); Tegeta (20); Pugu (40). Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 15 Figure 1: Marketing Infrastructure Network in Tanzania 3.3 Meat Processing and Technology training Processing provides opportunities for adding value on the meat and can overcome some barriers to export of meat from the country, e.g. cooked meats. However, processing is undertaken on a limited scale in Tanzania, basically because the technology is new and requires additional investment in machinery and tools. A Meat Technology Training Centre has been established in Dodoma and is now under the auspices of VETA which is being used to train local entrepreneurs on meat cuts technology. The centre started training in 2007 and presently 25 trainees expected to graduate with Certificates in 2008. A number of private meat processing plants are emerging. This is creating a demand for quality livestock products, thus motivating livestock producers to increase off take rate and consequently Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 16 increase efficiency in the production chain. Below is table 6 which indicates some of the main processing plants in Tanzania: Table 6: Meat Processing Plants S/No Region Processing Plant (s) 1. DAR ES SALAAM Makela Foods; Tanzania Meat Company (Tanmeat) 2. ARUSHA Arusha meat; Happy Sausage; Meat king 3. IRINGA CEFA/Boma la ng’ombe Village Company 4. RUVUMA Peramiho Mission 5. RUKWA Sumbawanga Agricultural and Animal Feeds Industries (SAAFI) – Meat Processing Plant. 6. MOROGORO Tanzania Pride Meat – Morogoro 7. COAST Best Beef - Mlandizi 8. DODOMA Meat Technology Training Centre Further dynamics of the red meat sub sector is further analysed by following the different corridors in Tanzania. 3.4 The Red Meat Dynamics in the Corridors and Zones of Tanzania In order to get better insight of the red meat sub sector dynamics, each consultant visited one of the seven corridors/zones. The information obtained during the visits has been integrated with that obtained from literature review to get the national picture of the red meat sector. 3.4.1 Central Corridor (Dodoma, Morogoro, Dar es Salam) This corridor covers Dodoma, Morogoro, Coast and Dar es Salaam regions. According to the livestock production statistics this zone could be ranked in the middle in terms of its contribution to livestock population. However, when viewed in terms of new technological developments, this zone has made tremendous strides both in terms of installation of modern abattoirs, meat processing and training centre and some large scale fattening and meat processing investments. Kongwa ranch in Dodoma is one of the oldest schemes in the country (since 1947) which has been championing breeding, disease control and management, pasture management and farmer training activities. It is one of the significant R & D centres for livestock development in the country. Morogoro region is also advantaged by the presence of a full fledged faculty under Sokoine University of Agriculture (SUA) that is dedicated to animal science and veterinary medicine research, training and outreach services. Production Population of cattle and sheep in the Central Zone has been increasing in the last five years. Goat production however, has declined over time. Although no precise answer could be established for this trend, the increase is associated with natural growth in population and increased demand pattern particularly in main urban areas. Tables 7, 8 and 9 indicate production per district where data was available and comparison is made with the Livestock census figures of 2002.03. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 17 Table 7: Livestock Population in Dodoma Region 2006 All Districts Combined Animals traded in secondary market (2006) Cattle Traditional 1,181,258 (802,894 in 2003) 48,020 Improved 21,620 Goats Traditional 468,736 (685,114 in 2003) 104,279 Sheep Improved 3,251 213,860 (121,250 in 2003 7,392 Source: RLA – Dodoma Region, April 2008 Table 8: Livestock Population in Morogoro Region in 2006 District Council Kilombero Kilosa Morogoro (R) Morogoro (U) Mvomero Ulanga Total Cattle Traditional 66,821 215,040 30,718 940 155,254 124,000 592,773 (112,374 in 2003) Improved 1,268 2,850 2,527 3,520 17,573 500 28,238 Goats Traditional 9,257 93,787 33,395 4,370 51,161 29,849 221,819 (293,271 in 2003) Sheep Improved 10,205 25,140 5,467 192 20,121 36.404 97,529 (57,603 in 2003) 781 157 600 880 300 2,718 Source: RLA – Morogoro Region, April 2008 Table 9: Livestock Population in Coast and Dsm Regions 2003 Region Cattle Goat Coast 124,884 68,099 Dsm 19,462 73,080 Sheep 7,892 7,476 Source: National Census of Agriculture 2002/2003 The dominant production mode is traditional practices by agro pastoralists. In Morogoro area there has been a lot of land pressure due to pastoralists moving from Northern circuit in search of pastures during dry seasons. In 2002 there was a serious conflict in Kilosa district between livestock keepers and farmers leading to losses of lives. In a bid to cope with this migration pressure, Morogoro region has embarked on a massive program for demarcation designated animal production areas / farms at district and lower levels to control land use conflicts. Most districts have been surveyed and the exercise is still ongoing. By- laws have been put in place to guide land use by the settling agro pastoralists. During the field study, it was established that one of the burning constraint in livestock production is inadequate infrastructural facilities to accompany the growth in production. Whilst production has been increasing, the status of infrastructural facilities has remained the same and in most cases the existing facilities are not functioning. The data from Morogoro region explains the phenomenon of declining infrastructure quite well. This is shown in table 10 and 11. As an example Kilombero district required 28 cattle deep wells in 2006 when it had only 1 in place. Kilosa District required 56 wells and they had 43 of which 26 were not working or rather dilapidated. This mismatch is seriously affecting the quality and quantity of animal production. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 18 Available Not working Not working Needed Available Not working 1 ? 5 2 5 1 Morogoro ( R) Needed Majosho 28 Malambo 28 Slaughter houses Markets Specialised Input Shops Livestock Development Centres (LDCs) Check /Holding points Available Needed Table10: Status of Livestock Infrastructure in Morogoro Type of Infrastructure Kilombero Kilosa 56 29 17 16 4 7 10 6 26 2 21 18 12 7 3 2 3 3 ? 3 3 3 3 2 2 Source: RLA – Morogoro Region, April 2008 Needed Available Not working Not working Not working 4 1 11 3 Available 8 Ulanga Needed Cattle Deeps ? Dams Slaughter houses Markets Specialised Input Shops Livestock Development centres (LDCs Available Needed Table11: Status of Livestock Infrastructure in Morogoro Type of Infrastructure Morogoro (U) Mvomero 21 38 17 16 5 2 3 3 2 6 19 19 1 ? 2 3 5 2 2 3 Source: RLA – Morogoro Region, April 2008 Trading Trading of animals generally start at primary markets which are available throughout the districts and some lower levels depending on the intensity of animals. District councils oversee the operations of these markets and charge a levy and issuing movement permits for the animals to other designated market centres. Primary markets operate with very basic infrastructure. There are few secondary markets in the central zone and these are the main trading points with buyers who in turn process (slaughter) for the local market or export. Dodoma has only one secondary market (359.9 ha) that is strategically located closer to a modern abattoir (figure 2). In March 2008, Dodoma secondary market handled transactions of 5,157 cattle, 2,120 goats and 510 sheep. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 19 Dodoma is also advantaged to have a Meat Technology Training Centre offering vocational training covering such areas as hygiene and safety, slaughtering, cutting and de-boning, processing of byproducts, and main products such as sausages, abattoir management and shop management. These are critical skills that are lacking in the industry. Apart from training, the centre slaughters about 15 animals per day that are supplied by Kongwa ranch and traded in Dodoma & Dar es Salaam markets at premium prices. Figure 2: Dodoma Abattoir Wholesale and retailing Generally primary and secondary markets are frequented by traders of different sizes. It was established that animals may change hands four times before reaching the final buyers. There are four kinds of buyers in the secondary markets. One type is the Large Scale buyers licensed by Ministry of Industry and trading in different markets in the country. These buyers often integrate the business of buying and transporting of animals to main urban markets such as secondary Pugu market in Dar es Salaam. The second type of traders are those operating butchers in urban areas and buying animals from secondary markets; slaughtering in the abattoirs and transporting to their shops for retailing. The third type of traders is those large scale exporters who are specialising in high quality animals for export either live or processed. From Dodoma secondary market it was established that there are traders exporting to DRC, Dubai and Kuwait and in the past years life animals to Comoro. The fourth category of traders are the large scale farmers cum processors, who buy animals from secondary or primary markets, fatten them and process them in their abattoir or through Dodoma abattoir for urban and export markets. Mtibwa Sugar Company has been buying animals from Kongwa ranch and from other markets for fattening on a pilot project for processing for the supermarkets (Shopritte) in Dar es Salaam. The pilot project has just been concluded and plans are underway to establish own wholesale and retail outlet in Dsm. The other well established farm is Tanzania Pride Meat Company in the outskirts of Morogoro who run a large scale ranch and fattening operation with a modern abattoir for red meat processing for marketing to urban areas. They are also involved in large scale poultry farming. Producer and Trader Organisations Organisation of producers and traders is at infancy stage in the Central zone. During the study we met some leaders of livestock butchers and traders association as well as livestock producers association of Eastern Zone (UWAKAMA). The traders / butchers association in Morogoro urban is over 20 years old but still fragmented with members entering and leaving it. Recently members of this association have participated in meetings to form the national association. The livestock producers association is at its inception stage following the national movement to form and strengthen associations in different zones of the country. One of the entry points in strengthening the sub sector is to organise the actors and this area is quite weak at the moment. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 20 3.4.2 North-eastern Corridor Production Pastoralists account for over 80% of livestock keepers in the north eastern corridor of Tanzania. The pastoralists (mainly Maasai and Barabaig) have developed strategic and tactical behaviours well adapted to the environment in which they live and work and in order to maximise the production of milk and meat. The main strategies include the following: Well planned and purposeful movement of livestock (and people) for optimum use of the temporal and spatial variations in availability of pasture and water as well as avoidance of certain endemic diseases. The division of labour within households reflecting different labour needs of the households ( women milk animals and look after calves and sick animals, young boys and girls herd livestock in nearby grazing lands, while the warriors (moran) take herds far while elders look after the affairs of the community, including guidance on movement of stock for longer periods). Structuring the herds for maximum number of milk giving cows and keeping of more males cattle in order to avoid sale of females when emergencies strike, e.g. during drought. Recent census in Manyara and Arusha regions has indicated that there are over 2.5 million local cattle in the north eastern corridor of Tanzania, most of which are kept by pastoralists as shown in Table 12 and 13 below. Table 12: Livestock Population in Arusha Region District Council Arusha District Council Arusha Municipal Council Karatu Longido Meru Monduli Ngorongoro Total Local Cattle 197,958 23,420 153,900 174,532 148,900 157,159 380,000 1,235,869 Local Goats 199,858 12,223 148,229 161,324 66,924 114,514 300,000 1,003,072 Sheep 185,100 6,740 43,848 161,324 124,500 146,209 250,000 917,721 Local Goats 47,599 16,769 119,573 167,370 205,233 169,800 726,344 Sheep 17,077 4,133 55,814 38,356 79,903 73,300 268,583 Source: RLA – Arusha Region, April 2008 Table 13: Livestock Population in Manyara Region District Council Babati Rural Babati Town Council Hanang’ Kiteto Mbulu Simanjiro Total Local Cattle 74,580 15,151 297,410 245,800 355,102 263,532 1,260,575 Source: RLA – Manyara Region, April 2008 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 21 Pastoralist1 communities in north eastern Tanzania are very diverse, in terms of their locations, ecological niches and cultures, but share a common burden of poverty, marginalization and underdevelopment. Some of the major issues facing these pastoralists include: Conflicts and insecurity Inadequate livestock marketing system Land tenure system, specifically a failure to defend customary tenure Under-provision of social services Poor transport and communications infrastructure Inadequate provision of water and animal health services Droughts and dependence on food aid Corruption and poor local governance There are individual livestock keepers and groups of businessmen who feedlot their animals before selling and others have started crossbreeding their local stocks with beef cattle (Sahiwal & Boran spp) from Kenya. Trading in Livestock and Meat There are three main sources of meat supply for the north eastern region in Tanzania: Slaughter stock from pastoral areas within the zone (Longido, Kiteto, Simanjiro and Same) within the zone. Slaughter stock from agro-pastoralists and mixed farming areas within the zone ( Mbulu, Hanang, Arumeru, Moduli, Babati, Hai, and Same) Stock from the lake and central zones (Singida, Dodoma, Shinyanga, Mwanza, and Mara) Chilled/frozen meat, and processed meats imports (Kenya and South Africa), mainly for the supermarkets and tourist hotels. Supply of trade stock is mainly dictated by cash needs of livestock keepers (food, school fees etc.), threat from grazing shortage/drought, and veterinary quarantines. By en large the zone is a net importer on slaughter stock and meat. Most marketing begins with local livestock keepers who sell to local traders (country buyers) in the primary markets. However, often local traders normally buy cattle, she and goats from local livestock keepers at the farms. Cattle are driven to primary livestock markets by livestock owners and country traders. Buyers at primary markets are traders to transport (in droves of 10-15 head) to the secondary livestock markets, butchers for local meat trade and farmers who are building their herds. The animals intended for the secondary markets are moved on hoof (trekked) or on lorries (trucked). The animals may be bought and sold several times before reaching their destination, with each trader specialising in a single stage of the market. In this way traders, using the best Key Characteristics of the Pastoral Production System include; Animals represent more than economic assets; they provide social identity and security; Large herds are reared mainly for subsistence, with occasional trading; Herds are composed mainly of indigenous breeds; Practised on extensive basis with animals depending on natural pastures for feed; and Mobility in response to variations in climate 1 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 22 local knowledge and permitting rapid turnover of capital, thereby reduce risks. Along the journey, the cattle are fed and watered, weak animals are sold and at government designated holding grounds all cattle are inspected, dipped or vaccinated by veterinary officials. The trade stock from primary markets may end up in the secondary livestock markets (Kisarani, Wer Weru and Pugu). Here brokers or "landlords" put buyers in touch with sellers and provide some of the finance required to handle the cattle between arrival and the retail sale of the carcasses. These landlords provide accommodation to the livestock sellers from upcountry, arrange introductions and provide guarantees for payment at agreed prices. Most buyers at secondary markets are wholesalers of meat in big municipalities/cities, although some resell to subsidiary markets. Animals intended for trade across the border are treated as per import conditions imposed by the importing country. If travelling via official corridors for export, they are taxed at the borders. Often livestock intended for trade across the border are not identifies as such but moved to border areas before they are moved illegally across the border. The extent of illegal export could not be established but it is thought to be substantial. Abattoirs and slaughter slabs Arusha region has two abattoirs that can also process meat located in Arusha Municipality and several small abattoirs in townships and hundreds slaughter slabs in rural areas. The two modern abattoirs in Arusha are the Arusha Meat Company Limited (AMC) owned by Arusha Municipal Council and Happy Sausages which is private owned. AMC Ltd has a capacity to slaughter 600 cattle, and 300 goats per day, although it runs under capacity for most of the time in a year. Recent records2 indicate that in January 2008 AMC slaughtered 4,004 cattle, 981 goats and 2,768 sheep. Most of these are brought by butcher- men from around Arusha Municipal and its vicinity who pay for the services and then supply the meat into their butcheries. A few animals that directly belong to the Company are also traded to butchers or processed into meat cuts and sausages. AMC has a retail outlet within the facility premises. Ministry of Livestock and Fisheries Development has plans to build one meat processing factory in at Themi which intill recently was used as a holding ground (10,000 hectares). All meat consumed in the rest of the region and zone is obtained from local slaughter slabs. Some slaughter slabs are private own and quite modern in terms of access to water and working equipment, whereas some are owned by LGAs and most with basic facilities. For instance, the Ngaramtoni slaughter slab is built on village land by private owner, whereas the Tengeru town centre slaughter slab is built on village land by meat traders’ association with support from LGA (70 corrugated iron sheets) and Local Government Capital Grant (LGCG). There are also private owned slaughter slabs which are registered by the LGA but are used by owners only. Butchers The stock which is slaughtered locally ended up in butchers in town centres in the north eastern region. Generally, one can categorise butcheries in the region into four major classes based on the 2 Arusha Regional Livestock Advisor report on ‘Livestock investment possibilities’, Feb 2008 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 23 income class of the clientele. These are high, middle, low and extra low classes. This classification is however not rigid and neither is it recognised by the licensing agents (LGAs). High-class butcheries serve high-income consumers in major urban centres (such as Arusha city) and tourism industry (tourist hotels). They are distinguishable from the other classes in that they sell meat in special cuts and at times with proper packaging. The butcheries can sometimes placed inside supermarket e.g. Shoprite. Some high-class butchers are owned by big companies such as Happy Sausages Limited, Meat King, etc. These butcheries mainly obtain carcasses from their own slaughterhouses or from AMC slaughterhouse. Other butcheries are owned and used privately by SMEs such as Maasai Export Butchery Limited and Matotos Butchery in Arumeru district. Interestingly, Maasai Butchery supplies meat cuts to Shoprite and tourist hotels (Ngurdoto Mountain Lodge, Impala, etc). The animals slaughtered in these slaughterhouses are usually from well-bred indigenous or exotic stock, from private feedlots and from commercial ranches such as Manyara and West Kilimanjaro. High-class butcheries serve a small portion of the red meat market, mainly high-class hotels and restaurants in the city, and wealthy individuals. Some of these butcheries also sell game meat. They mainly buy the high grade of beef, which they sell in special cuts such as T. Bone, Fillet, Sirloin, Osso Buco, Brisket sliced, etc at an average price of TShs 6,000 per kg. Middle class butcheries serve middle-income population such as workers in urban centres and above average income rural farmers and labourers. These butchers also wholesale to hotels, restaurants, and popular known ‘nyama choma’ pubs. Arusha is one of the biggest hubs of ‘nyama choma’ in the north eastern region of Tanzania. A few of these butcheries sell meat in special cuts but these are not as diverse as those sold in high class butcheries. They mainly buy the cattle themselves and use slaughterhouses in the vicinity of their outlets and sell meat at an average price of TShs between 2,500 and 3,000 per kg. The low class butcheries serve the lower income bracket in urban and rural areas. This class of butcheries mainly buys the standard and low grade of beef including offal with a small proportion of the commercial grade. They sell it at an average price of TShs 2,000 – 2,500 per kg. Their main sources of carcass include local slaughter slabs and Arusha Meat Company slaughterhouse. The extra low class of butcheries services the slums such as dwellers in Kambi ya Fisi, Unga Limited, Majengo in Arusha Municipality. This class specialises in offal and commercial grade of beef. Sale of un-inspected meat and of dubious quality is not uncommon. Most of these butcheries are not licensed and, strictly speaking, they are merely meat kiosks. A kg of beef sells at an average price of between TShs 1,200 and 2,000. Cross-boarder to Kenya The dynamics of livestock and red meat marketing trends in north eastern Tanzania are influenced by regional export-driven markets. The regional dynamics are depicted in figure 3 below. The fact that Sudan, Tanzania and Ethiopia have the highest herd of cattle in Africa makes eastern Africa to be the biggest hub in red meat regional and export market. Also due to the civil wars in Sudan and Somalia, and the fact that Nairobi and Addis Ababa have robust air freight infrastructure, the red meat marketing is concentrated in the two cities. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 24 Figure 3: Domestic, Cross-border and Official Export Red Meat Trade Routes LEGEND Syria Lebanon Iraq Israel jordan Red meat export by air Live animal export by sea Official Camel trade Cross border (unofficial) Domestic supply route Frozen pork by sea Kuwait Libya Egypt Bahrain Qatar Saudi Arabia U.A.E. Port Sudan Chad Khartoum Eritrea Oman Yemen Ethiopia Addis Ababa Hargeisa Barbara Bosaso Sudan Central Africa Republic Somalia Congo D. Republic Uganda Kenya Mogadisho 0 Nairobi Rwanda Burundi . 500 1,000 kilometres Tanzania Prepared by PACE DMU Mombasa Source: Adapted from ‘An Audit of Livestock Marketing Status for Kenya, Ethiopia and Sudan (2002)’ for PACE Programme OAU - IBAR – page IV and modified. As a result of increased demand towards Nairobi and Addis Ababa, Tanzania has become one of the main supplier of live cattle; however, most of the supplies is currently informal due to a number of factors such as; Pull factor – growing industry of processing and exporting to the Gulf from Kenya and Ethiopia Tanzania traders perceive that they get better price Pastoralists along the border regions (Maasai and Kurya) have long tradition of trading among their communities Consequently, some traders have been cheated, animal diseases are not well controlled and government do not gain relevant taxes from the cross boarder trade. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 25 Producers’ and Traders’ Associations There are several traders associations in every district in north eastern Tanzania, at least two per district. However, they are at a very infant stage and some are not even formally registered. The formation of national associations namely TALIMETA and TAMEPA has triggered speed formation and registration of regional and local traders associations. During this study the following associations were recognised; UWANA UWANYAMA Mbulu Distict Council Babati Town Council Longido Most if not all of these associations are weak and need capacity building. 3.5.3 Lake Zone Corridor Production The Lake corridor comprises the regions of Mara, Mwanza, Shinyanga, Tabora and Kigoma. The study consultant visited only the first three regions. In this corridor three agro-climatic zones are predominant and these are: Sub humid: the highlands along the shore of Lake Victoria and Kigoma region. Semi arid: the central lowlands of Kagera, central Tabora, Shinyanga and Mara regions, and Arid in the eastern belt of Mara, Shinyanga and Tabora regions. The red meat sub sector is centred in the semi arid and arid belts of the corridor and therefore the report will concentrate on the two agro-climatic zone. In terms of cattle, goats and sheep populations, the corridor has about 9,.2 million cattle, 5.1 million goats and about 1 million sheep or about 49%, 34% and 27% of the cattle, goats and sheep populations of Tanzania mainland, as summarised in table 14 below. Table 14: Cattle, Goats and Sheep population in Lake Zone, 2008 Region/Type Cattle Goats Sheep Kagera 984,606 773,098 70,919 Kigoma 469,117 569,007 40,676 Tabora 1,742,344 757,846 184,686 Shinyanga 2,892,379 1,412,987 400,054 Mwanza 1,908,394 917,715 95776 Mara 1,220,734 701,154 152,384 Sub total 9,218,174 5,131,807 944,495 Total Tanzania 18,699,984 13,000,000 3,500,000 Corridor % to Tanzania 49 34 27 Source: D B Massawe, 2008. The predominant production system is the traditional extensive grazing, using the indigenous zebu cattle, goats and sheep kept by agro-pastoralist in the so called Cotton-Cattle system. Most of the Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 26 livestock owners are sedentary in villages but a few practice transhumances, with all livestock at the homestead during the wet season but with part of the herds moved away in search of water and grazing during the dry season. There are very few pastoralists in corridor utilising the eastern part of the low lands in the east, bordering with the Serengeti National Park. The biggest challenge in the corridor is the overgrazing noticeable in most semi arid and arid areas in the zone, especially in Shinyanga and Mwanza regions. There are simply too many grazing livestock on the land. Other problems identified by producers are (a) scarcity of water for people and livestock, (b) animal diseases, especially tick-borne diseases and (c) scarcity of support services, especially veterinary and extension services. The support services are weak due to shortage of public employed technical and professional staff, deteriorating support infrastructure (veterinary clinics, dips, water dams/chacos) and operating funds. On the other hand there are few private service providers in the zone. Even inputs retailing stores are available in major urban centres only but very few in remote areas. There are few NGOs supporting livestock in the zone, except religious organisation supporting dairy extension and heifer-in-trust schemes. The Magobiro Anglican Centre in Tarime was providing extension services to smallholder livestock farmers. Mabuki Heifer breeding ranch (6,000 ha) had about 2,000 improved zebu (Mpwapwa and Boran) herd and cross breeds. The Kitengule ranching complex in Kagera region has about 25,000 head of improved beef cattle on 171,000 hectares. There were plans to introduce improved breeding in Mwanza and Shinyanga regions by the Ministry of Livestock Development and Fisheries using AI. An encouraging innovation of short term fattening of trade stock using cotton wastes was noted in Mwanza, Shinyanga and to a lesser extent Mara. Traders are claiming to be able to add some 4050kg live weight per head within a period of 2-3 months by supplementing the grazing with the cotton wastes and salt. The innovation could expand but the operators have limited funds. There is need to check on the quality of the cotton waste in order to provide guidance on feeding levels and avoiding contaminated materials. Smallholder dairy cattle units exist in peri-urban areas and all districts in of Kagera region, Tarime and Rolya districts. The Baraka Sisters have a commercial dairy herd in Musoma. The wet areas have surplus grazing capacity, but are unusable to due high tsetse challenge. On the other hand Kagera pastoralists succeeded to reclaim a large chunk of land from tsetse by using dip washes considered to have only benign impact on the environment. The other challenge is weak tick control. The interviewees reported serious problems with dipping. The biggest problem seems to be organising livestock owners to contribute funds for buying dip washes. Marketing The zone has about half the national cattle herd and about 40% of goat’s and sheep in the country. The cattle herd probably produces an off take of 920,000 head, of which possibly 400,000 are traded outside the corridor, the balance being consumed internally. The zone has a big human population and the incomes from cotton, livestock sales and mining make the zone an important market for meat. In addition the zone is surrounded by huge markets in Kenya, Rwanda, Burundi and DRC. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 27 Statistics collected from regional livestock offices established that there are 77 primary markets, 17 secondary and 5 border markets in the Lake zone. The markets are connected through stock routes and holding grounds, usually leading to the northern and central corridors (Arusha and Dar es Salaam (Pugu). The markets visited had brisk business with many livestock farmers bringing cattle goats and sheep for sale. Trading was said to be very active especially when traders supplying markets in Kenya and the Pugu and Weru-Weru markets. At the markets, trading is based on private negotiation between buyers and sellers; auction rings, even when in place, are not used. At the Muhunze market (and others in the zones) there were “Garaganjas” These are the so called traders who intercept livestock owners just at the periphery of the market and take temporary control of the animals only to negotiate better deals with real traders when the markets finally opens. During trading there is no auctioning; traders and livestock owners negotiate deals privately, informing the market master the number of animals bought and their respective values. Prices were reported to vary with seasons and numbers of traders at the markets. The prices at primary market vary between TShs 80,000-150,000 for breeding stock to 200,000-250,000 for steers and bulls. Traders did not complain of taxes, except for traders at the Igoma market who complained for being charged fees while there were no facilities at the market. Traders at Muhunze (Shinyanga) indicated they preferred trekking animals to Karatu and on Lorries to Meserani and Weru-Weru secondary markets instead of using Lorries all the way. Slaughter facilities The zone does not have a functioning modern abattoir/slaughter house. The recently privatised uncompleted abattoir at Shinyanga was intended to slaughter cattle and transfer carcasses for processing at the Tanganyika Packers Plant in Dar es Salaam. It was not possible to interview the new investor of the Shinyanga plant to establish future plans, but the completion of the plant and its commissioning will boost opportunities for trade in livestock in the zone. Mwanza city and Bukoba municipality have improved slaughter houses but most of the equipment and facilities originally installed have gone out of function. Otherwise the status of slaughter facilities in the zone is modest to poor. Cross - border trade Cross boarder trade across the Kenya/Tanzania border in substantial but is not recorded. The Magemi border markets have never operated as was intended as Kenya traders were not interested to come to the Tanzania markets. They prefer to wait in Kenya and have Tanzanian traders bring the animals across the border. Regional authorities in Mara want the secondary market at the Tanzania/Kenya boarder moved south of the Mara River as a way to curb smuggling. Cattle sold across the Tanzania/Rwanda and Tanzania/Burundi borders, but in smaller quantities as across the northern border. Stakeholder Associations There were a number of associations started by traders, butchers and livestock owners in order to channel complaints and lobby for government support through out the zone. The consultant met the leadership of the following associations: Kununua na Kuuza Mifugo Tanzania (KUKUMITA) in Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 28 Mwanza, and Musoms Livestock and Meat Traders Association (MULIMETA). The association membership was still small relative to participants in the trade. The association were still concentrating on lobbying and channelling complaints to authorities. Some identified need for strengthening in terms of training in group dynamics and market linkage. 3.5.4 South-Western Corridor The South Western Corridor consists of the semi arid lowlands of Rukwa, Mbeya, Iringa and Ruvuma regions. The zone has substantial feeding resources, including grazing, crops by products (maize and rice bran, rice and maize straws and sunflower cakes). The zone has a livestock population of about 2 million cattle, 1.6 million goats and 150,000 sheep. In the last three decades the zone was host to frequent seasonal migration of thousands of cattle, goats and sheep from the Lake Zone that created extensive overgrazing and land use conflicts with crop farmers. Since last year migration into the zone has been banned and some livestock herders have been moved out of the zone. The corridor has been self sufficient for meat supply and surpluses trade stock from the zone are transported by Lorries or rail by (TAZARA) to the Pugu market. There are 46 primary and only one secondary livestock markets (at Songea) in the corridor. An export abattoir with a capacity to slaughter 150 head of cattle per day (SAAFI) has just been commissioned. The plant has enabled the zone to produce high quality meat for local and export markets. The facility could resume export beef to Zambia, an opportunity which was lost in the seventies. The plant has created an important opportunity for producers in the zone. 3.5.5 South Corridor The southern zone consists of humid and semi arid lowlands of Lindi and Mtwara regions. The zone is sparsely populated by humans and livestock, partly due to tsetse infestation. The zone is host to the largest conservation area in eastern Africa, the Selous Game Reserve. The population of cattle and shots in both regions is about 100,000 cattle and 300,000 respectively. Although the zone has the lowest concentration of livestock in Tanzania, it has never the less experienced rapid livestock build up in recent decades, particularly the small stock. Livestock facilities in the zone are few, the most important being the Veterinary Investigation Centre in Mtwara and a stock route from Morogoro to Lindi through Mahenge district. The zone has substantial grazing resources but vast areas are infested with tsetse flies. The zone will remain a net import of red meat in the form of live animals for slaughter for some time. Due to low income and high cost of meat, the zone has one of the lowest per capita consumption in the country. 3.6 Summary of key trends Almost (98%) traditional pastoralists and agro-pastoralists Emerging private sector in production, processing and marketing Large number of ‘live’ cattle exported Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 29 Small volume of red-meat exported - emerging Minimum value addition - exporting carcasses Some preliminary processing ‘cuts’, sausages and packaging Emerging supermarket outlets, modern urban butchers and food service (tourism, institutions) Food safety and hygiene standards are very low Dodoma is setting the pace Food service buying Kenya, South Africa, New Zealand Urban market is growing (middle income bracket) Growing urban working class - ready to pay more for quality Absence of market-driven skills and manpower development system in meat production and processing Absence of adequate extension system to support livestock production Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 30 4 Red meat – sub sector dynamics This chapter presents a synthesis of red meat sub sector dynamics discussed in preceding chapter. 4.1 Tanzania red meat sub sector map Regional markets – Kenya, Comoro, DRC, etc Other Export markets – UAE, etc Across the Boarder Retailing Urban consumers Integrated butchers Local and urban butchers Institutions Imports of red meat Local consumers Supermarkets Consuming Hides and Skins Meat processing industries Exporting Processing Wholesalers Wholesaling Abattoirs and slaughter slabs Secondary and terminal markets Specialised livestock traders Feedlot, fattening Small scale fattening traders Integrated large producer-processors, exporters Slaughtering Feedlot, fattening Primary markets Agropastoralists Pastoralists Production Input supplying Commercial Ranches Stockists CHANNEL I Smallholder producers CHANNEL II Medium and large scale producers Key Live cattle, goat, and sheep Red meat carcass and processed Imported meat products Hides and Skins Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 31 4.2 Principal Channels In this sub sector we have confined ourselves to red meat (from cattle, sheep and goat) as well as live animals sold for the same purpose both locally and in the export market. We have not gone into any detail on the processed meat products such as sausages as well the processing of hides and skins. From the sub sector map presented above two principal channels are emerging through which red meat moves from the farm to the consumer. These are the channels defined by production system and size of enterprises. Within these main channels other channels could be derived. We have termed these as smallholder producer driven and medium/large commercial farmer driven channels. Smallholder Producer Channel This channel is championed by traditional pastoralists and agro-pastoralists who command over 98% of meat production in Tanzania. It is estimated (2006) that 335,000 tones of meat are produced annually in Tanzania. The meat produced by this channel is almost entirely for local consumption. Typical for this channel is that producers are hardly involved in upstream subsector functions. Traders of different sizes and specialisations dominate the interface between producers and slaughter houses / butchers. In Tanzania live animals are traded in primary and secondary markets and from there they have to go through “approved” slaughter slabs / abattoirs before the red meat is sold in urban and rural wholesale and retail butchers. In the smallholder channel there is an emergence of innovative traders particularly in the Lake Zone who have started to small scale fattening operations before the animals are sold to the secondary markets. The small holder led channel is the also championing cross border trade of essentially live animals through specialised traders. Cross border trade with Kenya as indicated in the previous chapter is the most developed market outlet. Medium and large Scale Producer Channel This channel was in the 1980’s dominated by state run commercial ranches. As indicated earlier divestiture of state run ranches is ongoing and their importance is declining. With 11 state run ranches there was a potential to carry up to 90,000 cattle and able produce 1500 tones of beef per annum. The government has also invested in a number of abattoirs, 2 of which are large scale modern ones able to process for export market standards. These infrastructures are also in the process of forging public-private partnerships. Currently the private sector is coming in with integrated large scale ranching and fattening operations combined with modern abattoirs where they process red meat for urban up market (individuals and institutions) and export market. Currently there are large scale integrated ranches in Morogoro, Sumbawanga and Arusha. The red meat sub sector is supplying the processing industries which are coming up in Tanzania but still at nascent stage compared to the neighboring countries. Due to this we have observed that Tanzania is a net importer of processed meat from Kenya, South Africa, New Zealand etc 4.3 Actors and Functions 4.3.1 Input supply Public and private sector actors / stockists are active in the input supply to the subsector. The Livestock Multiplication Units (LMUs) Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 32 These are livestock producing centres owned by the Ministry of Livestock Development charged with the responsibility of producing good quality crossbred heifers for distribution to smallholder dairy farmers. At present they hold a total of about 5,000 improved cattle. Steers and bulls from these units are a source of quality beef. The location and the number of cattle in each LMUs is as follows: Mabuki LMU: The farm is located along the DSM –Mwanza highway 60km from Mwanza city in the Lake Zone. The Farm can be accessed by road from Dar es Salaam (900 km) or by air, then travelling 60 km through a tarmac road from Mwanza. The farm has an area of 9,793 ha capable of supporting 6,000 Animal units. At present the farm has about 3,000 improved cattle mainly crosses of Friesian, Boran with Tanzania Shorthorn Zebu. Sao Hill LMU: The farm is located in the Southern Highlands, 572 km from Dar es Salaam. The farm has an area of 6,500 ha. At full development the farm can support 4,500 Animal Units. At present the farm has about 2,000 cattle, which are Boran cows, Ayrshire bulls and their crosses. Nangaramo LMU: The farm is located 630 km from Dar es Salaam in the southern zone, in Masasi District, Mtwara region. The farm has an area of 6,175ha capable of supporting 4,000 animal units at full development. At present the farm has about 450 cattle comprising of Aryshire bulls, Boran cows and their crosses. Kitulo Dairy Farm: The farm is located in the southern highlands 980 km from Dar es Salaam. The farm has an area of 5,000 ha with a capacity of supporting 3,500 Animal Units at full development. The farm keeps pure Friesian cows and bulls. At present the farm has about 1,000 cattle. Ngerengere LMU: The farm is located in the coastal zone 150 km away from Dar es Salaam. The farm has an area of 4,562 ha with a capacity of supporting 3,500 animal units at fully development. At present the farm has about 600 Boran cows with Aryshire bulls. National Ranching Company The NARCO ranches have some infrastructures in place. They include slaughterhouses, water points, and cattle handling facilities, veterinary infrastructure, and office and staff houses among others. There are also a number of private livestock farms including the 124 subdivided and subleased NARCO ranches engaged in beef production. Veterinary Services Trade in livestock and livestock products require an efficient veterinary system that addresses compliance to OIE, WTO sanitary and phytosanitary requirements. The structure of veterinary services in Tanzania meets these requirements. Control and eradication of animal diseases has enabled Tanzania to be an eligible trade partner in livestock and meat products. The country has been declared Rinderpest free by OIE in 2005. Surveillance and monitoring Animal disease information flow is through a hierarchy with a direct chain of command from the District through Veterinary Investigation Centres (VICs) to the Director of Veterinary Services. There are seven VICs in the country located strategically such that districts can be easily reached. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 33 The District Veterinary Officers (DVOs) report to respective VICs on disease occurrences from field and abattoirs. Zoosanitary Inspectorate Services (SIZ) Zoosanitary inspectorate services have been strengthened in order to control livestock movements and thereby prevent the spread of livestock diseases. Currently there is a network of 36 boarder posts distributed along all official points of entry/exits, 19 quarantine stations, 381 internal check points, 56 primary markets and 12 secondary /terminal markets. 4.3.2 Production, Feedlots and fattening As indicated through snapshot of the different corridors in Tanzania, production of animals is predominantly by pastoralists and agro pastoralists. With upcoming of large scale private sector led ranches, feedlots and fattening operations are gaining momentum. During the study, it was found out that the business model for feedlots and fattening is not yet worked out especially for its application to small scale farmers. SUA is currently at an advanced stage of implementing a research project to establish different scenario of costs and benefit thresholds. Establishment of this business model would be quite instrumental for the extension services and it is highly recommended that once the findings are out that they are disseminated to the stakeholders. In order to increase production and productivity, in addition to having a business model they are a number of policy related constraints that require attention: Land Rights and the Failure to Defend Customary Tenure Livestock keepers (especially pastoralists in north eastern Tanzania) have been unable to defend their land rights against powerful interest groups. Government, committed to the commercialization of agriculture, has promoted the individualization of land tenure and pastoralists have lost large areas of traditional grazing lands to farming in-migrant communities. Powerful commercial interests – including mining companies (Mererani) – have also appropriated large chunks of pastoral lands, without compensating pastoralists or allowing them a share of profits generated. This issue is particularly important in Maasailand, where large areas of land have been given over to Wildlife Parks (Manyara region and part of Arusha and Kilimanjaro regions). These bring in very significant tourism revenue for the national economy, but pastoralists are only just beginning to benefit from this and have not been adequately compensated for the way in which these parks have undermined their livelihoods. The destruction of crops by wildlife is a major source of friction between the parks and the people, who feel that they do not receive adequate compensation from the authorities. Currently there is a major dispute between the livestock keepers’ communities living in the Babati and a private hotel investor over the benefits that the local community get from leasing large grazing area to this organization. In some areas, large government schemes – such as the Electricity Project– have displaced pastoralists, again without compensation. While these projects have been of considerable benefit to the national economy, pastoralists have been left out. The same is true of irrigation schemes that have helped farmers, but taken critically important water resources from downstream pastoralists. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 34 The alienation of pastoral lands threatens the long-term viability of the pastoralist way of life and is a major factor in the serious conflicts between pastoral groups. Very Poor Provision of Transport and Communications Infrastructure Government has not been willing or able to make the substantial investments needed to establish adequate infrastructure in the arid and semi-arid lands (ASALs). Travelling to most pastoral areas is difficult and time-consuming. Insecurity makes road travel dangerous in some areas. While the vast areas involved make infrastructure development costly, the economic as well as the social benefits of linking up the ASALs are likely to be very great. Inadequate Provision of Water Points and Animal Health Services These are the priorities most frequently cited by pastoralists everywhere. Provision is inadequate – while the state has pulled out, the private sector has not been able to step in to serve poor pastoralists. Local and international NGOs, as well as multilateral organizations, have established good programs in all the pastoral areas, but coverage is limited. 4.3.3 Processing Processing of red meat into different cuts and preparation of other meat products including sausages, salami etc is not well developed in Tanzania. There are emerging integrated butchers who are preparing different meat cuts to supply specific orders for food service (hotels and supermarkets and some institutions). Sausages are processed on a small scale basis and mainly by Happy Sausages (Arusha) and Peramiho Mission (Ruvuma). Secondadry sources of information have established that some large scale investors have undertaken feasibility studies and business plans for launching modern processing facilities in Vingunguti Dar-es Salaam3. 4.3.4 Trading In the red meat trading functions would encompass buying of live animals, and after slaughtering services undertaking the wholesaling and retailing. Formal Licensed) and Informal traders play this role. During the study, it was often remarked that trading chain is generally long, compounded several informal traders / brokers in a transaction. There however specialised traders with track record of integrating trading, slaughtering and owning a chain of butchers. In the wholesaling a retailing scene is the upcoming in some supermarkets (Shopritte in particular) that have red meat processing operations as part of their retail outlets. The same supermarkets are the importers of processed meat products. The main concern from supermarkets is the lack of consistent supply of quality meat. The upcoming large scale fattening and abattoir operations in the central corridor have been working with Shopritte for about one year. 4.4 Market Analysis 4.4.1 Export market of red meat Though illegally/unofficial, many Tanzanian cattle are sold live in Kenyan markets. Kenyan market attracts Tanzanian traders because of its high prices and robust export-driven meat industry. Kenya’s main export markets for meat products include United Arab Emirates (UAE), Tanzania and Uganda. The value of meat products exported increased from KShs 190 million in 1999 to KShs. 3 Construction of Vingunguti Slaughterhouse, Feasibility Report (PESP04133) www.evd.nl Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 35 285 million in 2002. Indeed some of exported cattle from Tanzania to Kenya are re-imported back in Tanzania as processed meat. The Kenya market for livestock supplies is increasingly expanding both locally and regionally. Nearly all the cattle sourced at Moyale and some of the cattle and goats purchased at Mandera market originate from the Borana and Somali regions of Ethiopia. Small numbers of cattle originating from Eastern Equatoria of South Sudan and the South western part of Ethiopia are routed to Eldoret and Nairobi through Lokichogio and Lodwar. A significant proportion of the cattle in Garissa market come from Somalia. Similarly livestock from Tanzania are routed through Kuria to Migori and through Namanga and Longido and then to the terminal markets in Nairobi4. Apart from live exports to Kenya, Tanzania’s other official export destination of live animals include Comoro, Burundi, Uganda and to Zanzibar from the mainland. Tanzania also exports red meat / carcass to various countries including Oman, Kuwait, United Arab Emirates (UAE), Muscat, DRC and Zanzibar. Table 15 and annexes III and IV provide details on trend over the last five years. From 2002 to 2007 export business of red meat both live and carcass has been growing and during the survey it was established that it can only grow as demand far surpasses supply. For instance whilst in Dodoma it was picked that one exporter of Live Goat and Sheep to Middle East has an established demand of 600 goats to Dubai weekly (Mondays and Fridays) and 200 goats and 10 sheep weekly to Kuwait. This exporter has gone to a stage of establishing a transport facility to the agents in Singida and Dodoma and a refrigerated truck to ply from Dodoma abattoir to Dsm airport. However, his order cannot be met by even 50%. The main constraint is consistent supply from isolated sources. Table 15: Export trend of Live and Meat Products Tanzania 2002-2007 Live Animals Destination Red Meat / Carcass Year Cattle Goats Sheep Year Beef Goat Kenya, 2002 382 140 2002 2003 1714 411 2 Comoro, 2003 Burundi, 2004 5263 1199 2 2004 1080 Zanzibar, 2005 4075 2177 2005 600 Uganda 2006 6231 2753 11 2006 163 16774 2007 3849 736 2007 10737 25345 Source: Extracted from Ministry of Livestock & Fishery reports Destination Mutton 20,335 76592 Oman, Kuwait. Dubai (UAE), Muscat, DRC, Zanzibar Private sector engagement in the livestock trade is seen as the best option for efficient, vibrant beef export trade, as there is a growing interest from the private sector to invest and engage in the livestock trade. Apart from the policy, Tanzania has already developed strategically trade facilitating infrastructure including livestock and livestock marketing infrastructures. These include primary, secondary and terminal livestock markets, holding grounds, veterinary checkpoints and two modern abattoirs. In addition there is a structured Veterinary Services that facilitates compliance with OIE and WTO/SPS measures. The livestock marketing infrastructures in the country support the supply chain from the producer to the consumer. The marketing infrastructure consists of primary markets (300), secondary markets located in Arusha, Dodoma, Singida, Extracted from ‘Meat production in Kenya (2005)’ - a report prepared by PKF Consulting Ltd and International Research Network for Export Processing Zones Authority – Kenya 4 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 36 Tabora, Shinyanga, Kagera, Mwanza, Mbeya and Mara and 4 terminal markets namely Pugu DSM, Themi - Arusha, Weruweru -Kilimanjaro and Korogwe -Tanga. In addition there are 13 holding grounds and 10 railway cattle loading ramps. 15 veterinary checkpoints located at regional boundaries and at natural barriers (major rivers). Figure 4: Designated Government Livestock Export Trade Supply Line (MLDF, 2006) 4.4.2 Local Market The production of red meat in Tanzania has been growing steadily over the years. The annual increase has not been that much and due to RVF that struck in 2007, the production had to stifle. Production increased by 14% between year 2002 and 2006. Most of this was production for local market. If this is the proxy of how the local market has been growing then there is every indication that market for red meat is growing in Tanzania. The urban middle income s growing and meat is a common part of middle income households. Another interesting trend is that good quality meat is generally in short supply and its price has been growing. Urban middle to high income bracket is willing to pay more for good quality meat. The other fast growing market in Tanzania is in the food service industry. Tourism has been growing steadily and hotels and specialised restaurants are increasing annually. This is also evidence by supermarkets coming in to take the market share of the growing demand for quality meat. Institutional markets such as learning institutions, prisons, hospitals etc are growing in the country as well. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 37 4.5 Profitability In the TOR for this assignment it was agreed that since this is only a quick scan, profitability analysis would not be undertaken. This been the case it is outside the scope of this assignment to offer a picture of profitability for the different channels in the sub sector. It is recommended that once SNV has decided to continue with the sub sector that detailed analysis of profitability and its distribution among chain actors is undertaken. Furthermore SUA is currently undertaking an economic analysis of production modes with feedlots and fattening as part of it. This study will shed light on the profitability at farmer’s level. However, out of curiosity a study undertaken in Kenya on traders profitability have been gathered, which indicates that red meat business is generally profitable (over 25% gross margins) and the return on investment of around 30%. If this profitability levels are taken as good practice in the region, it means it could as well be possible to attain in Tanzania. See annex VI for details. (and report total economic value) 4.6 Sub Sector Support organisations There are a number of non state actors that provide support services to the sub sector participants. MS-TCDC Links with Pastoral Civil society MS-Training Centre for Development Co-operation (MS – TCDC) near Arusha has had a longstanding engagement with pastoral civil society and has a commitment to fight for the rights of marginalised communities. In 2004, MS-TCDC teamed up with the International Institute of Environment and Development, based in Scotland and RECONCILE, a regional Civil Society Organisation based in Kenya, to develop and host a generic training course on pastoralism and policy options in East Africa. The aim is to improve participants' capacity to inform and influence national and regional policies to improve pastoral livelihoods in East Africa, particularly on issues of access to and control over natural resources, livestock, health and trade and regional and global interaction. The course attracts a wide range of participants including pastoral civil society leaders, policy makers, project workers and the media. It seeks to change their perceptions and understanding of pastoralism and build their capacity to make the case for pastoralism as a viable land use system. Irish Aid has supported RECONCILE to develop the course material and to test the training packages. The course is taught as an intense 2½ -week training and has been run twice at MS-TCDC so far. There are plans to adapt the course so that it can be taught as part of a university degree course in agriculture and livestock. There has been significant interest from universities such as Sokoine University of Agriculture (SUA) in Tanzania and Nairobi University in Kenya. These universities are looking at the option of teaching the MS-TCDC pastoralism course as a trimester module very soon. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 38 Other organisations5 Other important service providers who were not visited but their detailed obtained from interviews and secondary literature include PINGOS, TAPHGO, UCRT Ujamaa, Sand County Foundation, TAHA, IIED East Africa Programme, RECONCILE, The World Conservation Union (IUCN) and Tanzania Natural Resource Forum (TNRF). National Producer and Processors Associations (telephone interview with TALIMETA, TAMEPA) 4.7 Constraints and Opportunities Major constraints that hinder growth and competitiveness of the red meat sub sector have been identified during the study. But also opportunities to build upon have been identified as well. Table 16 below presents the summary which was shared and validated with key stakeholders. These constraints and opportunities have been clustered according to the main developmental fields in sub sector development and include: Production management Market access Processing Finance & Risk management Organisation and management Policies and regulations Environmental management Gender issues Other socio-cultural issues Production Management Table 16: Summary of constraints and opportunities in red meat sub sector in Tanzania Constraints Unpredictable amount of rainfall. Producers often affected by frequent drought spell directly effecting on livestock feed and water supply and consequently reduced reproduction performance, mortality and hence poor growth and condition of the quantity of meat. The low genetic potential of indigenous livestock affects productivity and quality meat Frequent occurrence of diseases and weak disease control capacity impacts on productivity and market access. Shortage of breeding stock on improved farms and holdings deter innovation and commercialization Unavailability of low cost technologies for harvesting and storing feeds makes production thresholds /economics unprofitable. Opportunities Large herd on Indigenous stock Land resource base Diverse & favourable climatic and agro ecological zones Availability of good practices in production management Contacts of the Rangelands & Livelihood Taskforce include: Mr Daniel – TNTF (+255 763 061 367); Dr Turasha – VETAID (+255 752 357514); Mr Edward – PINGOS (+255 754 479815); Mr Alais – IIED (+255 754 365180); IUCNWorld Conservation Unit (www.iucn.org). 5 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 39 Market Access Processing Absence of market infrastructure (livestock markets, holding grounds, trek routes, veterinary centres, Standard Weights & Measures etc) reduce marketability and increase losses to producers and traders Unfavourable cross-boarder trade environment and procedures encourage illegal cross-boarder trade which reduce farmers and traders from benefiting from export markets. Absence of market information flows regarding market dynamics ( demand, food safety regulations, pricing etc) The market chain structure is overstretched (multiple traders between producer and consumer- distortion, no added value) Absence of established supply chains (Quantity, Quality and Consistency- QQC) Growing local urban market in light of middle income population growth, responding food service (tourism hotels, institutions) Unmet export market demands and competitive advantage in small stocks and proximity to Regional and ME markets Inadequate standard abattoirs/ slaughterhouses and meat processing facilities do not comply with international and local food safety standards. Growing investments in modern abattoirs and meat processing facilities (Dodoma, Tanzania Pride Meat, SAAFI Meat) offers opportunity for a stepping stone to new technology adaptation Expanding urban fast food chains/consumer preferences. Finance & Risks Unavailability of appropriate financial services packages to livestock farmers, traders and processors, reduces the opportunity of commercialization of their enterprises. Presence of lessons from past attempts by financial services programs e.g. PASS-CRDB Organisation and management Weak producer and trader organisation (vision, market focus, leadership skills) Producers & Traders revolve around conflict resolution and lobbying, with limited attention to business agenda Existence of new initiatives at national & regional and district levels to promote producers and traders association Government willingness to work with associations Supportive Policy intentions are yet to be implemented (ASDP, National Livestock Policy) and coordinated for synergy Legislation on land demarcation and ownership Meat Industry Act/ Meat Board Grazing and Animal Feeds Act under preparation Policies regulations & Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 40 Overgrazing which leads to land degradation Prevailing application of drugs and chemical (dip washes) by untrained farmers leads to environmental pollution /harmful disposal Presence of non state actors in supporting sustainable pastoralism and agro pastoralism (VET AID, PINGOS, CORDS etc) Livestock is male dominated (ownership, decision making) Presence of non state actors promoting gender equity and women economic empowerment Opportunity for women to embark on modern livestock husbandry (e.g. feedlots) Environment Gender Others – social- cultural etc Lack of business mindset in livestock communities (tradition not business ) Aging farmers and youth opting for non agricultural activities High illiteracy levels among agro pastoralists Food insecurity (arid and semi arid zones) Constant migration in search of pasture and water reduces investment into permanent settlements Presence of non state actors supporting community infrastructure and services (dams, schools ) Learning from good experiences / practices (exposure visits etc) Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 41 5 Leverage interventions In order to promote growth and competitiveness of the red meat sub sector in Tanzania, ideally a comprehensive package that would address the constraints identified above and capitalise on opportunities is required. Some of the requirements may take a short term to intervene whilst others may need medium to long term horizon. In deed both public and private sector have roles to play. In order to ream in focused on the main blocks of hindrances and opportunities, four sources of leverage interventions (the nodes that may benefit a wide range of participants) have been identified: These include: 5.1 Product and market development Tanzania faces the challenge of coping with expanding local and regional market demand of good quality red meat. Likewise to be able to improve current traditional practices there is a need to come up with a business model for production, processing and marketing which increases productivity alone the chain and more economic benefits to all participants. In other words there is a need to have an appropriate product – market formula in the red meat business. This study has not gone deeper into analysing specific value chains that would optimise growth. This is one area that would require further analysis. The cross border trade is mostly done unofficially and here it may be crucial to establish factors behind this move and create incentives for formalisation. Markets are dynamics and their requirements changing, the current programs providing Market Information services need to work more comprehensively to make it feasible for producers and other actors to have a level playing field in terms of information. It is suggested to build on LINKS regional program. Urban retailing in Dodoma has undergone fundamental transformation in terms of improving hygiene and meat handling. This was possible due to a political will and support package including access to modern abattoir facilities. This is an example to emulate across the country. Alongside this development is the development of basis hygienic/ food safety standard infrastructures. The business proposition for feedlot and fattening is under research by SUA. Once results are out they need to be disseminated. The review of public and private extension services to the sector is key to ensure crucial services are accessible on business like principals. Value addition is also important to earn the country more value than is the case today. Import substitution is possible by promoting local SMEs to engage in meat processing. 5.2 Developing key resource base The key resources that were identified as inadequate in the sub sector are technical skills across different functions (production, trading, processing) and financing mechanisms. Meat handling is not yet featuring in the national qualification framework of vocational skills. VETA in Dodoma has just started in 2007 to build up the training centre in this respect. This requires to be further developed and increased outreach to the much need skills at all levels. The financial services specifically adapted to the needs of the sector enterprise are required. PASS in collaboration with CRDB Bank have run a pilot scheme in the North, but it is far from been adapted as a best practise. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 42 5.3 Policy thrust The challenge in the sub sector is not the absence of policy /regulatory framework and paper, but rather is in the implementation momentum. Enforcement of agreed upon policies is often3abused or compromised. What is needed is enforcement accompanied with education on standard use of weights and measures. Currently the use of live weight for animals is not used and this influences the basis for business transactions in favour of some parties. Consumer safety and awareness should also be promoted to exert pressure for conformity. 5.4 Organisation and management The challenge in the sub sector is unorganised producers, traders and processors. Their voice is scattered. Equally challenging is the availability of a business model for organisational development tailored to the needs of the sub sector. It is therefore imperative that the upcoming associations are carefully assessed in terms of their needs and appropriate capacity development measures put in place. These interventions are further highlighted and summarised in figure 5 below and in particular identifying the potential organisations that could play a role in developing and delivering the respective leverage. Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 43 Resource base Product and market development Figure 5: Red meat sub sector in Tanzania – Challenges, Business Solutions and potential Partner Organisations BUSINESS SOLUTIONS CHALLENGES Unable to cope with expanding local and regional market of good quality red meat Absence of business model for production, processing and marketing of red meat Inadequate technical skills at all levels and investments financing mechanisms Analyse specific value chains for upgrading Analyse factors promoting unofficial cross border trade and facilitate formalisation Facilitate establishment of effective MIS (Build on LINKS initiative) Disseminate Lessons from Dodoma meat shops upgrading (urban retailing) Follow up and engage with SUA to disseminate & pilot feedlot business model e.g. progressive farmers, traders, graduates Review delivery system of production support services (publicprivate) Promote SME Processors e.g. Maasai Export Butchery model Upgrading of Market Structures Develop national qualification framework for meat handling vocation skills Facilitate adaptation of good practices financial services Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report AUDIENCE - PARTNER ORGANISATIONS MITM, MLDF, Capacity Building Organisations- SNV, SUA, MLDF, PASS, VETAID, SNV, Financial Institutions, District Councils, TIC. SUA, VETA, MITM, NACTE, SNV, National Economic Empowerment (NEEC), TIC, PASS, FIs 43 Organisation and management Policy thrust Inadequate policy and regulations implementation and enforcement Unorganised producers, traders and processors organisations Absence of good Organisational Development model Enforcement accompanied by education on the use of standard weights & measures and auction system Training to consumers on food safely regulations (consumer rights) Adopt a step approach towards conformity to standards and regulations Organisational assessment of existing associations Review good practices in livestock sector associations Develop capacity building programme Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report MLD MSPING Ujam Foun Afric REC Con and Res 5.5 Prioritisation of implementation of business solutions During validation workshop the proposed leverage interventions were prioritised for the short, medium and long t actors have also been earmarked. Table 17 below is a synthesis of the way forward . Table 17: PRIORITISATION OF BUSINESS SOLUTIONS FOR RED MEAT SUB SECTOR DEVELOPMENT BUSINESS SOLUTIONS PROPOSED IMPLEMENTATION ACTIVITIES TIME FRAM PRODUCTION MANAGEMENT AND MARKET DEVELOPMENT 1 Use weigh bridges and auctions 1. Installation of weigh bridges in all livestock markets Short term more efficiently to give a producer and auctions and traders a fair deal 2. Give/provide education for stakeholders on the use on the use of weigh bridges 2 Analyse factors promoting unofficial 1. Conduct a study Short to cross-border trade and facilitate 2. Organize stakeholders meeting Medium ter formalization 3 Disseminate lessons from Dodoma meat shops upgrading (Urban retailing) 4 Facilitate establishment of effective Market Information System (Build on links Initiative) Analyse specific value chain for upgrading 5 1. Organize study visits to Dodoma involving LGAs, meat traders 2. Then establish deadlines in each town/municipal/city to meet the Dodoma standards 1. To scale up links initiative all over the country Short term 1. MLDF – facilitate information sharing and provide relevant data required for value chain study 2. SNV- commissioning value chain analysis studies and facilitate dissemination of research findings to various stakeholders 3. Ministry of industries- provide data and information Short term Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report Short to Medium ter for researchers on trade and industries 4. Traders Associations- contribute to financial resources to value chain studies 5. MMA or SUA- conduct research on selected value chains DEVELOPING CRITICAL RESOURCE BASE 1 Development of national certification 1. Establishment of pilot Short term (Immediately) framework training/production centres (Demonstration units) 2. Formal and informal training 2 Facilitate adaptation of land use 1. Training of land management Short term Immediately planning and management rights 3 Facilitate adaptation of good 1. Training on Business plans and Short term (Immediately) practices in financial services saving (SACCOS) 2. Follow up formalization of local properties (collateral) 3. Engage financial institutions to develop products to cater for livestock sector POLICY IMPLEMENTATION 1 Government to supervise effectively 1. Government establish regulations, Short -Medium Term (1- 2 the PPP models in the operation of guidelines and procedures Years) abattoirs 2. Private sector to carry out operations 2 Improvement of livestock fees 1. Improving livestock marketing Short -Medium (1- 2 Years) collections infrastructures (fencing of markets) 3 Provision of cold storage system 1. Set up cold storage facilities at Short term (1 Year) strategic centres e.g. abattoirs, airports, seaports ORGANIZATION AND MANAGEMENT Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 1 Development of capacity building programmes 2 Review good practices in livestock sector associations 3 Organization assessment of the existing organizations 1. Develop training and extension manuals 2. Training to sub sector actors farmers & their organisations 3. Availing relevant consultancy services for capacity development 4. Strengthen extension services 1. Support networking among organizations/associations at all levels 2. Organise learning exchange visits among livestock farmers 1. Assess capacities of recently launched farmer & trader organisations (leadership & management capacities) 2. Support access to relevant capacity strengthening services Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report Short term (Immediately) Short term (Immediately) Short term (Immediately) Short term (Immediately) 6 Annexes ANNEX I: KEY CONTACTS N Name 1. Mr. Hargeney Reginald Chitukuro Designation Arusha Regional Livestock Advisor 2. Mr. Jackson Marwa Chairman of Meat Traders Arusha 3. Dr. Rwegasira 4. 5. 6. 7. 8. 9. Ms. Happy Ignatius Mr. Maguo Mr. Oletikoish Wawaa Dr. Sanga Mr. Frank Mollel Dr. Olomi Arusha Municipal Agriculture, Livestock and Cooperatives Officer Production Manager – Arusha Meat Co. Arusha District Veterinary Officer Arusha District Veterinary Officer Meru District Veterinary Officer Maasai Export Butchery Manyara Regional Livestock Advisor 10. Mr. Oloitiptip Ngala 11. Mr. John Z. Lukumay 12. Mr. Nestory Dagharo 13. Dr. Mbunda Procurement Manager – Kenya Meat Commission DALDO – Longido District Council Longido District Veterinary Officer DALDO – Monduli District Council 14. Mr. Faraji Michael Meat Trader Arusha District 15. Mr. Abraham Mejooli 16. Mr. Emmanuel Nduleti 17. Mr. Aaron P. Luziga CORDS – Bulls and Veterinary Centres CORDS – Village Lands Certification Ranch Manager- Manyara Ranch 18. Mr. Godson N. Mbuya Chairman - Meat Traders Association Babati Secretary - Meat Traders Association Babati Country Programme Coordinator – Vetaid Tanzania RLO Dodoma Director Tanzania Pride Meat Co Ltd Municipal Livestock officer Dodoma Secretary UWAKAMA Morogoro Chairman – Traders Association Morogoro Advisor Dodoma Abattoir Manager Dodoma Abattoir Director Dodoma Meat Training Centre 19. Mr. John Mmari 20. Dr. Gabriel Turasha 22. 23. 24. 25. 26. Dr Muniko Mr Derek van Rooyen Dr Tibaijuka Mr Chuma Kilama My Godfrey Mkondya 27. Dr Omolo 28. Mr Tilya 29. Dr Thomas machambi Contact +255 272 502 289 +255 713 263 523 +255 787 859 922 +255 786 662102 +255 754 253 511 +255 713 523 216 +255 784 365 853 +255 754 391 987 +255 713 276 206 +255 754 207 987 +255 784 243 635 +255 784 230 444 +255 755 461 013 +255 272 530 137 +254 728 961 904 +255 784 364 875 +255 754 463 297 +255 784 358 050 +255 272 538 011 +255 784 481 481 +255 767 482 482 +255 755 572 639 +255 784 364 027 +255 784 887 759 +255 272 509 616 +255 784 427 620 +255 784 395 870 +255 272 504 803 +255 752 357 514 + 255 784 357 173 + 255 754 579 600 + 255 755 098 171 + 255 787 413 315 + 255 784 338 471 + 255 754 365 578 + 255 713 535 990 + 255 754 844 017 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 48 30. 31. 32. 33. 34. 35. 36. 37. Dr Munuo Prof. Mtenga Mr Emanuel Jackson Mr Mtayabarwa Lwiza Dr Mwakyusa RLO Morogoro SUA Morogoro Livestock officer Dodoma NARCO Kongwa Ranch Operations Manager Mtibwa Sugar + 255 787 072 779 + 255 784 348 278 + 255 784 496 372 + 255 784 767 853 ANNEX II: Participants of Validation Meeting – 24th April 2008 - Arusha S/No Name Designation / Organisation 1. Mr Ndako K.J. TALIMETA 2. Prof L.A. Mtenga SUA 3. Mr Hassan Chuma kilama UWAKAMA 4. Mr George Maro TALIMETA 5. Mr Erasto Sujani 6. Mr Derk van Rooyen Tanzania Pride Meat 7. Mr D.B. Massawe MLDF 8. Kitasho Simeli West Longido 9. Frank Mollel M.E. Butchery Arusha 10. Hargeney Chitukuro RAS Arusha 11. Issack Wannah TALIMETA 12. Basil Mataba Dodoma Abbatoir 13. Fabian Kisingi Arusah Meat Co Ltd 14. Dr A. N. Rwegasira Arusha MC 15. Dr Gabriel Turasha VETAID Tanzania 16. Hon Isidore Shirima RC Arusha 17. Sonford Shayo PA RC Arusha 18. Dr Abraham Mejooli CORDS Arusha 19. Faraji Juma FMJ Butchery 20. Phillip Lukumay P. Com Butchery 21. Christine Bakuname SNV 22. Donald Liya SNV 23. Sebastian Mhanja SNV 24. Silvanus Mruma SNV 25. Said Swala SNV 26. Christopher Shyres SNV Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report Contact 49 Annex III EXPORT OF LIVESTOCK AND LIVESTOCK PRODUCTS (2002 – 2008) Period Product Quantity Value (Tshs.) Destination (Yearly) (kgs/No.) 2002 Live animals Cattle 382 114,600,000 Comoro Goats 140 2,800,000 Comoro 2003 Live animals Cattle 1,674 585,900,000 Comoro 40 14,000,000 Burundi Subtotal 1,714 599,900,000 Goats 1 25,000 Zanzibar 410 10,250,000 Comoro Sub total 411 10,275,000 Sheep 2 40,000 Zanzibar 2004 Live animals Cattle 3,003 1,141,140,000 Comoro 200 76,000,000 Burundi 2,060 721,000,000 Zanzibar Sub total 5,263 1,938,140,000 Goats 1,170 35,100,000 Comoro 15 450,000 Burundi 1 30,000 Zanzibar 13 390,000 Uganda Subtotal 1,199 35,970,000 Sheep 2 50,000 Zanzibar Heifer 30 7,500,000 Malawi Meat Beef 80 120,000 Zanzibar 1,000 1,500,000 Oman Sub total 1,080 1,620,000 2005 Live animals Cattle 3,685 1,547,700,000 Comoro 385 134,750,000 Zanzibar 5 2,100,000 Kenya Sub total 4,075 1,684,550,000 Goats 2,160 64,800,000 Comoro 17 510,000 Kenya Sub total 2,177 65,310,000 Meat Beef 600 900,000 Zanzibar Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 50 Period (Yearly) 2006 Product Live animals Cattle Sub total Goats Sub total Sheep Dairy cattle Heifers Meat Beef Mutton Sub total Goat meat 2007 Sub total Live animals Cattle Sub total Goats Sub total Heifers Dairy cattle Meat Beef Sub total Mutton Quantity (kgs/No.) Value (Tshs.) Destination 4,903 863 405 60 6,231 2,578 155 20 2,753 11 15 240 2,206,350,000 327,940,000 182,250,000 27,000,000 2,743,540,000 90,230,000 5,425,000 800,000 96,455,000 385,000 4,500,000 60,000,000 Comoro Zanzibar Burundi Kenya 163 236 19,137 962 20,335 4,700.5 5,509.5 2,694 370 3,500 16,774 244,500 472,000 38,274,000 1,924,000 40,670,500 9,401,000 11,019,000 5,388,000 740,000 7,000,000 33,548,000 Comoro Burundi Zanzibar Zanzibar Comoro Malawi Oman Dubai(UAE) Kuwait Oman Oman Dubai(UAE) Kuwait Muscat Zanzibar 2,734 1,100 15 3,849 586 130 20 736 222 10 1,367,000,000 Comoro 440,000,000 Zanzibar 7,500,000 Burundi 1,814,500,000 23,440,000 Comoro 5,200,000 Malawi 800,000 Burundi 29,440,000 88,600,000 Malawi 3,500,000 Comoro 1,701 9,000 36 10,737 2,539.5 72,789.5 1,263 2,551,500 13,500,000 54,000 16,105,500 5,079,000 145,579,000 2,526,000 Dubai(UAE) Oman UAE Dubai(UAE) Kuwait Oman Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 51 Sub total Goat meat 2008 Sub total Live animals Cattle Sub total Goats Dairy cattle Meat Beef Sub total Mutton Sub total Goat meat Sub total 76,592 6,650 4,061.5 11,632 3,000 25,345.5 598 161 759 193 20 213 2 153,184,000 13,300,000 8,127,000 23,264,000 6,000,000 50,691,000 Dubai(UAE) Kuwait Oman Oman 310,960,000 72,450,000 383,410,000 9,650,000 1,000,000 10,650,000 1,040,000 Comoro Zanzibar 934.5 300 5,000 6,234.5 2,338,750 750,000 12,500,000 15,588,750 Oman Comoro DRC 14,285 2,363.5 16,648.5 27,172,450 5,908,750 33,081,200 Kuwait Oman 6,292.5 569 6,861.5 12,670,500 1,422,500 14,093,000 Kuwait Oman Comoro Burundi Comoro ANNEX IV: BOARD OF EXTERNAL TRADE (BET) DATA ON IMPORTS AND EXPORTS 2007 EXPORTS RED MEAT 02102000 Meat of bovine animals, salted... or smoked OMAN IMPORTS MEAT 0201 02011000 02012000 02012000 02012000 02012000 02013000 02013000 02013000 02013000 0202 Fresh or chilled bovine carcasses and half carcasses Fresh or chilled unboned bovine meat (excl. carcasses) Fresh or chilled unboned bovine meat (excl. carcasses) Fresh or chilled unboned bovine meat (excl. carcasses) Fresh or chilled unboned bovine meat (excl. carcasses) Fresh or chilled boneless bovine meat Fresh or chilled boneless bovine meat Fresh or chilled boneless bovine meat Fresh or chilled boneless bovine meat MEAT OF BOVINE ANIMALS, FROZEN UNITED KIN UNITED KIN ITALY KENYA SOUTH AFRI UNITED ARA UNITED KIN NETHERLAND SOUTH AFRI Value TSHS 310,973.00 KGS 163.00 36,110,573.00 160,671.00 562,461.00 767,502.00 23,111,765.00 1,693,471.00 1,570,612.00 926,622.00 3,123,607.00 4,193,862.00 603,430,384.00 9,714.00 206.00 25.00 900.00 2,849.00 1,449.00 750.00 25.00 280.00 3,230.00 72,511.00 Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 52 02021000 02022000 02022000 02022000 02023000 02023000 02023000 02023000 0203 02031100 02031200 02031200 02031900 02031900 02031900 02031900 02031900 02032100 02032200 02032200 02032900 02032900 02032900 02032900 0204 02041000 02041000 02042200 02042300 02042300 02043000 02043000 02044100 02044100 02044200 02044200 02044200 02044200 02044300 02045000 0206 02061000 02062900 02063000 02064900 02068000 02069000 Frozen bovine carcasses and half carcasses Frozen unboned bovine meat (excl. carcasses) Frozen unboned bovine meat (excl. carcasses) Frozen unboned bovine meat (excl. carcasses) Frozen boneless bovine meat Frozen boneless bovine meat Frozen boneless bovine meat Frozen boneless bovine meat MEAT OF SWINE, FRESH, CHILLED OR FROZEN Fresh or chilled swine carcasses and half carcasses Fresh or chilled unboned hams, shoulders and cuts thereof of swine Fresh or chilled unboned hams, shoulders and cuts thereof of swine Fresh or chilled swine meat, nes (unboned) Fresh or chilled swine meat, nes (unboned) Fresh or chilled swine meat, nes (unboned) Fresh or chilled swine meat, nes (unboned) Fresh or chilled swine meat, nes (unboned) Frozen swine carcasses and half carcasses Frozen unboned hams, shoulders and cuts thereof of swine Frozen unboned hams, shoulders and cuts thereof of swine Frozen swine meat, nes Frozen swine meat, nes Frozen swine meat, nes Frozen swine meat, nes MEAT OF SHEEP OR GOATS, FRESH, CHILLED OR FROZEN Fresh or chilled lamb carcasses and half carcasses Fresh or chilled lamb carcasses and half carcasses Fresh or chilled unboned meat of sheep Fresh or chilled boneless meat of sheep Fresh or chilled boneless meat of sheep Frozen lamb carcasses and half carcasses Frozen lamb carcasses and half carcasses Frozen sheep carcasses and half carcasses (excl.lamb) Frozen sheep carcasses and half carcasses (excl.lamb) Frozen unboned meat of sheep Frozen unboned meat of sheep Frozen unboned meat of sheep Frozen unboned meat of sheep Frozen boned meat of sheep Fresh, chilled or frozen goat meat EDIBLE OFFAL OF BOVINE ANIMALS..., FRESH, CHILLED OR FROZEN Fresh or chilled edible bovine offal Frozen edible bovine offal (excl. tongues and livers) Fresh or chilled edible swine offal Frozen edible swine offal (excl. livers) Fresh or chilled edible offal of sheep, goats, horses... Frozen edible offal of sheep, goats, horses... KENYA ITALY KENYA SOUTH AFRI UNITED ARA INDIA ITALY KENYA 26,723,448.00 823,942.00 57,182,480.00 236,387.00 96,005,709.00 99,621.00 768,259.00 421,590,538.00 645,054,444.00 5,043,035.00 4,030.00 580.00 12,318.00 200.00 16,780.00 121.00 650.00 37,832.00 196,328.00 1,340.00 193,789.00 50.00 KENYA UNITED ARA ITALY KENYA SAUDI ARAB SOUTH AFRI ITALY UNITED ARA KENYA UNITED ARA BRAZIL ITALY KENYA 19,703,561.00 666,451.00 4,413,753.00 34,821,576.00 13,285,271.00 2,645,287.00 161,158.00 7,244,358.00 781,216.00 9,189,640.00 12,595,865.00 2,757,364.00 531,552,120.00 5,058.00 763.00 4,451.00 6,956.00 24,418.00 2,571.00 140.00 1,500.00 150.00 3,474.00 51,201.00 1,500.00 92,756.00 UNITED ARA OMAN KENYA KENYA NETHERLAND KENYA NEW ZEALAN UNITED ARA THAILAND UNITED ARA KENYA NETHERLAND SAUDI ARAB UNITED ARA UNITED ARA 117,955,969.00 352,631.00 2,870,257.00 42,547,320.00 3,447,217.00 10,917,994.00 2,774,538.00 6,832,726.00 759,871.00 107,928.00 13,609,996.00 15,706,044.00 4,927,617.00 10,167,534.00 983,789.00 1,950,507.00 56,639.00 1,232.00 7,585.00 10,771.00 465.00 562.00 470.00 1,193.00 810.00 450.00 1,765.00 5,759.00 77.00 24,000.00 750.00 750.00 NETHERLAND JAPAN SOUTH AFRI UNITED ARA KENYA DENMARK 20,848,881.00 409,038.00 36,550.00 1,698,186.00 33,675.00 183,759.00 11,966,494.00 27,323.00 16.00 1.00 770.00 200.00 300.00 25,061.00 KENYA ITALY Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 53 02069000 0207 02071200 02071300 02072400 02072500 02072700 02073600 02073600 0208 02089000 02089000 02089000 0209 02090000 02090000 0210 02101100 02101100 02101100 02101100 02101200 02101900 02101900 02101900 02101900 02101900 02109000 02109100 02109900 02109900 02109900 16010000 16010000 16010000 16010000 Frozen edible offal of sheep, goats, horses... MEAT AND EDIBLE OFFAL OF POULTRY, FRESH, CHILLED OR FROZEN Frozen whole chickens Fresh or chilled cuts and offal of chickens Fresh or chilled whole turkeys Frozen whole turkeys Frozen cuts and offal of turkeys Frozen cuts and offal of ducks, geese or guinea fowls Frozen cuts and offal of ducks, geese or guinea fowls OTHER MEAT AND EDIBLE MEAT OFFAL, FRESH, CHILLED OR FROZEN Fresh, chilled or frozen meat and edible offal, nes Fresh, chilled or frozen meat and edible offal, nes Fresh, chilled or frozen meat and edible offal, nes PIG FAT, FREE OF LEAN MEAT, AND POULTRY FAT Pig and poultry fat,not rendered/extracted,fresh/chilld/frzn/saltd/smoked Pig and poultry fat,not rendered/extracted,fresh/chilld/frzn/saltd/smoked MEAT AND OFFAL, SALTED... OR SMOKED; FLOURS... OF MEAT Unboned swine hams, shoulders and cuts thereof, salted... or smoked Unboned swine hams, shoulders and cuts thereof, salted... or smoked Unboned swine hams, shoulders and cuts thereof, salted... or smoked Unboned swine hams, shoulders and cuts thereof, salted... or smoked Bellies and cuts thereof of swine, salted... or smoked Meat of swine, salted... or smoked, nes Meat of swine, salted... or smoked, nes Meat of swine, salted... or smoked, nes Meat of swine, salted... or smoked, nes Meat of swine, salted... or smoked, nes Other meat, nes, salted... or smoked; flours and meals of meat or offal Of primates:Meat and edible meat offal, salted:Other, including edible flo Other:Meat and edible meat offal, salted, i:Other, including edible flours Other:Meat and edible meat offal, salted, i:Other, including edible flours Other:Meat and edible meat offal, salted, i:Other, including edible flours SAUSAGES Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on SOUTH AFRI 6,521,179.00 975.00 BRAZIL KENYA KENYA KENYA NETHERLAND KENYA NETHERLAND 38,712,436.00 24,825,181.00 183,759.00 2,135,274.00 631,464.00 1,112,032.00 9,472,911.00 351,815.00 78,855.00 51,368.00 300.00 1,000.00 88.00 71.00 26,009.00 19.00 UNITED ARA GERMANY ITALY 4,812,755.00 366,418.00 3,606,023.00 840,314.00 37,348,996.00 3,027.00 1,580.00 177.00 1,270.00 51,536.00 BRAZIL 37,187,420.00 51,360.00 161,576.00 176.00 262,770,298.00 65,340.00 UNITED ARA 891,016.00 140.00 DENMARK 579,851.00 23.00 ITALY 415,484.00 65.00 12,744,769.00 941,108.00 8,241,712.00 1,105,463.00 80,380.00 206,502,351.00 1,854,932.00 1,608.00 58.00 1,366.00 484.00 16.00 54,072.00 76.00 KENYA 24,706,043.00 4,676.00 KENYA 4,477,435.00 2,400.00 UNITED ARA 42,229.00 305.00 ITALY 54,839.00 30.00 132,686.00 524,918,776.00 21.00 UNITED ARA 431,334.00 1,367.00 CHINA 768,307.00 804.00 GERMANY DENMARK 330,823.00 96,698.00 326.00 41.00 SOUTH AFRI KENYA NETHERLAND UNITED ARA CHINA ITALY KENYA NETHERLAND NETHERLAND Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 54 16010000 16010000 16010000 16010000 16010000 16010000 16010000 1602 16021000 16021000 16022000 16022000 16022000 16023100 16023100 16023100 16023200 16023200 16023200 16023200 16023900 16023900 16023900 16023900 16023900 16023900 16023900 16024100 16024100 16024100 16024100 16024100 16024200 16024900 these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products Sausages and similar products; food preparations based on these products OTHER PREPARED OR PRESERVED MEAT, MEAT OFFAL OR BLOOD Homogenized preparations of meat, meat offalor blood Homogenized preparations of meat, meat offalor blood Preparations of animal liver Preparations of animal liver Preparations of animal liver Preparations of turkey meat Preparations of turkey meat Preparations of turkey meat Prepared/preserved meat,offal/blood of fowls of species gallus domesticus Prepared/preserved meat,offal/blood of fowls of species gallus domesticus Prepared/preserved meat,offal/blood of fowls of species gallus domesticus Prepared/preserved meat,offal/blood of fowls of species gallus domesticus Preparation of poultry(exc.turkey/of fowls of species gallus domesticus) Preparation of poultry(exc.turkey/of fowls of species gallus domesticus) Preparation of poultry(exc.turkey/of fowls of species gallus domesticus) Preparation of poultry(exc.turkey/of fowls of species gallus domesticus) Preparation of poultry(exc.turkey/of fowls of species gallus domesticus) Preparation of poultry(exc.turkey/of fowls of species gallus domesticus) Preparation of poultry(exc.turkey/of fowls of species gallus domesticus) Preparations of swine, hams and cuts Preparations of swine, hams and cuts Preparations of swine, hams and cuts Preparations of swine, hams and cuts Preparations of swine, hams and cuts Preparations of swine, shoulders and cuts Preparations of swine meat, including mixtures, nes FRANCE 420,760.00 88.00 UNITED KIN 5,981,798.00 957.00 ITALY 1,113,281.00 210.00 498,281,339.00 226,428.00 NETHERLAND 1,705,603.00 74.00 OMAN 1,948,776.00 4,065.00 SOUTH AFRI 13,840,057.00 6,082.00 UNITED ARA KENYA GERMANY UNITED KIN SOUTH AFRI UNITED ARA BULGARIA UNITED KIN 129,912,202.00 59,124.00 14,109,712.00 3,502.00 4,578,316.00 126,726.00 446,097.00 389,427.00 1,500,220.00 197,371.00 405.00 5,232.00 2.00 170.00 95.00 105.00 64.00 254.00 UNITED ARA 353,121.00 1,864.00 2,805,020.00 1,721.00 ITALY 540,605.00 450.00 SOUTH AFRI 641,573.00 1,126.00 UNITED ARA 2,275,940.00 10,635.00 DENMARK 103,627.00 18.00 UNITED KIN 442,746.00 45.00 15,200.00 20.00 1,614,246.00 9,060.00 164,820.00 120.00 2,297,436.00 2,375,932.00 313,436.00 5,223,437.00 242,184.00 3,025,341.00 2,376,999.00 2,041,028.00 1,126.00 1,038.00 368.00 761.00 31.00 897.00 604.00 2,434.00 KENYA UNITED KIN KENYA OMAN THAILAND SOUTH AFRI UNITED ARA CHINA UNITED KIN ITALY SOUTH AFRI SOUTH AFRI CHINA Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 55 16024900 16024900 16024900 16024900 16025000 16025000 16025000 16025000 GERMANY UNITED KIN PHILLIPINE SOUTH AFRI UNITED ARA UNITED KIN PHILLIPINE SOUTH AFRI 45,684.00 1,833,778.00 13,762.00 637,007.00 19,125,973.00 7,123,020.00 20,186.00 40,906,191.00 83.00 749.00 2.00 400.00 11,735.00 933.00 4.00 113,990.00 UNITED ARA 26,875.00 305.00 6,590.00 142.00 GERMANY 1,331,095.00 366.00 DENMARK 70,384.00 24.00 6,738,653.00 125.00 293,750.00 355.00 LEBANON 9,888.00 24.00 PHILLIPINE 22,843.00 4.00 16029000 Preparations of swine meat, including mixtures, nes Preparations of swine meat, including mixtures, nes Preparations of swine meat, including mixtures, nes Preparations of swine meat, including mixtures, nes Preparations of meat of bovine animals Preparations of meat of bovine animals Preparations of meat of bovine animals Preparations of meat of bovine animals Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes Preparations of meat (incl.preparations of blood of any animal), nes SOUTH AFRI 3,640,708.00 29,485.00 IMPORTS PEAS 20054000 20054000 20054000 20054000 20054000 20054000 20054000 20054000 20054000 Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen Peas, preserved other than by vinegar or acetic acid, not frozen UNITED ARA CANADA CHINA DENMARK UNITED KIN ITALY KENYA SAUDI ARAB SOUTH AFRI 6,417,638.00 83,700,692.00 992,737.00 136,192.00 1,760,735.00 719,194.00 79,224.00 184,328.00 6,080,224.00 12,554.00 35,121.00 2,307.00 29.00 1,676.00 1,690.00 158.00 7,155.00 5,420.00 IMPORTS 53049000 SISAL, ETC, RAW OR PROCESSED BUT NOT SPUN; TOW AND WASTE OF THESE FIBRES Sisal, etc (excl. raw), not spun; tow and waste of these fibres GERMANY 7,673,625.00 143.00 16029000 16029000 16029000 16029000 16029000 16029000 16029000 16029000 CHINA UNITED KIN ITALY Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 56 ANNEX V: ZOOSANITARY INSPECTORATE SERVICES (SIZ) - Information flow (Ministry of Livestock, 2006) Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 57 Annex IV: Profitability Analysis of Red Meat in Kenya Profitability of (a) trecking/trucking 500 cattle from Moyale to Nairobi via Isiolo and Sale to butcher at Dagotetti-Nairobi (Kshs) Item Purchase of cattle: 500 units at 12,000 Movement permit Moyale County Council Cess Herders Rations Guards Guards for 25 lorries Rations for guards Lorry: Isiolo to Nairobi for 20m heads Lorry: Moyale to Nairobi for 20 heads Total Costs Sale of cattle Margin Margin/animal Return on investment on purchase of cattle at Kshs 12,000 Trucking Physical units Physical units Financial Unit cost 500 500 1 1 500 500 5 5 3 25 3 25 25 495 495 - Total Cost 6,000,000 10 75,000 7,500 1,250,000 7,332,510 18,000 8,910,000 1,577,490 3,187 22% 12,000 10 150 300 50,000 Profitability of Marketing Sheep, Goats and Camels from Wajir to Nairobi (Kshs/head) Item Sheep Producer selling price to middlemen at homestead/trading centre 950 Middleman cost: cess Wajir market 120 Middleman cost: local trekking 7 Total middlemen costs 1,077 Middle man margin 127 Local authority cess 120 Local trekking & associated costs *** 4 Overnight charge/herd/flock 50 Hire of truck/animal-Wajir-Nairobi 300 Sales of animals Nairobi 2,250 1,678 Total traders costs Traders Gross Profit 572 Trader gross margin 25% Return on Investment 34% Notes: ** Kshs/flock of 20 sheep and goats and per unit for camels *** Ksh 80 per flock of 20 for sheep and goats and per unit for camels Tanzania Red meat for local and export markets Sub Sector Analysis MMA - CDP May 2008 Draft report 58
