An Action Plan for Developing Agricultural Input Markets in Tanzania

experimental purposes only. Attachment IV.2 provides
the current portfolio of registered brands of CPPs available
in Tanzania in 2003. The number of brand names
is higher than the number of active ingredients (approximately
200) because many of them are comprised
of the same active ingredients, but manufactured and
registered by different companies under different brand
names. For example, over 15 insecticides contain
cypermethrin and over 20 fungicides contain coppers
(oxide or hydroxide). The availability of a large number
of the same product under different brand names
implies that the CPP market in Tanzania is competitive.
Consumption by Crop and Farming Sector
MAFS estimates that 18% of the farmers in Tanzania
use CPPs. These are mainly large commercial farmers
and smallholders growing cash crops for export.
CPP use by smallholders growing food crops has been
minimal and is mainly restricted to grain storage. Therefore,
91% of CPPs are used on cash crops (Figure IV.2).
These data indicate that cotton and coffee account
for 86% of CPP use. However, recent problems in the
coffee industry have reduced CPP use on this crop,
while the rehabilitation of the tobacco, cashew, and hor-
Source: MAFS, Inputs Division, November 2003.
Figure IV.2. Distribution of Use of CPPs by Crop,
April 2003
82
ticulture industries has increased demand from these
sectors. Therefore, it is likely that a more accurate
breakdown of CPP use would reflect a higher level of
use on tobacco, cashew, and horticultural crops.
Structure of the CPP Market
Tanzania receives supplies of CPPs mainly through
direct bulk importation of ready-to-use products by the
private sector. However, Twiga Chemical Industries
(TCI-Tanzania) has installations for pesticide formulations
and imports active ingredients for local formulation
of concentrates and dusts. 15
The CPP marketing system consists of a multiplicity
of supply chains, which vary by end-user (Figure
IV.3). Importers sell wholesale to independent dealers,
and retail directly to large commercial farmers, NGOs,
and the MAFS. 16 Some small importers also source
some of their product from large importers. Independent
dealers sell to stockists and also directly to farmers.
Stockists sell CPPs directly to farmers. A substantial
proportion of CPPs are imported directly by
end-users for distribution to their farmers on credit.
Another supply chain is fueled by cross-border importations
from neighboring countries. These are either
sold directly to farmers or sold to stockists.
Players in the Market
There were 15 registered private importers in Tanzania
in 2003. Three of these firms—ByTrade, Balton
Tanzania, and TCI (Tanzania)—account for over 50%
of the market share. These three large firms and three
small importers are profiled in Table IV.1. Of these six
importing firms, Balton and Twiga Chemicals are subsidiaries
of multinationals and were in existence before
1994. The remaining four firms are representatives
for multinationals although such representation
is not exclusive. For example, although Mukpar is the
main representative for Syngenta, five of the six profiled
importing firms also purchase and sell products
from this multinational. The annual turnover for these
firms ranges from 1.45 billion Tsh (US $1.45 million)
15 In January 2003, TCI (Tanzania) acquired the pesticide
manufacturing facility in Moshi from the Parastatal Sector
Reform Commission (PSRC).
16 The Ministry’s estimated annual requirement of CPPs for
control of migratory pests is US $1 million (Parthasarathy,
SOFRAIP, 2000).