An Action Plan for Developing Agricultural Input Markets in Tanzania

More documents

Recommendations

Info

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).
Figure IV.3. Structure of the CPP Market in Tanzania to 5 billion Tsh (US $5 million). Although CPPs are the main source of revenue for all of the companies, all of them are diversified into other business activities. These firms source CPPs from Western Europe, South America, Kenya, the Republic of South Africa (RSA), and Israel. Large Importers ByTrade is an independent company established in 1994 and is distinguished by the business it does with a large number of independent dealers. There are approximately 500 independent dealers in Tanzania, and ByTrade deals with 200 of them countrywide. ByTrade is also one of the two importing firms interviewed that repackage its CPPs into smaller packs, and these packs comprise the bulk of its sales. Balton Tanzania (Tz) is a subsidiary of the British multinational, Balton CP. Although it is diversified into various businesses, agricultural inputs comprise the majority of its product line. In 2003 Balton CP became the sole distributor of CPPs for Monsanto. Balton is distinguished by its relatively broad product range (it sells 52 products) and well-developed marketing strategy. Twiga Chemicals Industries (Tanzania) is a subsidiary of 83 Twiga Chemicals Industries Ltd. (TCI) based in Kenya. It is the only importer that imports ready made formulations and active ingredients to prepare local formulations. It is also the exclusive supplier of actellic super dust, which is repackaged into small 1-kg and 2-kg packs by its parent company in Kenya. However, Twiga is experiencing a significant problem with fake actellic dust. Since the product is packaged regionally (in Kenya), the technology is readily available. Therefore, the fake products are easy to replicate and their professional appearance makes them hard to identify. Moreover, demand is high because they are typically sold at a discount of 40%. Small Importers Mukpar and Suba-Agro are both small independent importers based in Arusha. Mukpar began operations in 1990 and is the main representative for Syngenta in Tanzania. Suba-Agro commenced business in 2001 and is the only importing firm interviewed that provides delivery services to its customers using a 10ton truck and motorbikes. Kibo Trading and Services is a small importer with its headquarters in Moshi. Unlike the other importing firms interviewed, Kibo’s
Page 1 and 2:
An International Center for Soil Fe
Page 3 and 4:
An Action Plan for Developing Agric
Page 5:
Foreword The agriculture sector pla
Page 9 and 10:
Contents Page Executive Summary ...
Page 11 and 12:
Acronyms and Abbreviations AAT Agro
Page 13 and 14:
Page 15 and 16:
Technical Constraints Technical con
Page 17 and 18:
Matrix A. Action Plan Matrix: Polic
Page 19 and 20:
Output Market Development—The dem
Page 21 and 22:
Page 23 and 24:
Source: Henao and Baanante (1999).
Page 25 and 26:
uted to the preparation of action p
Page 27 and 28:
200 stakeholders from all domains
Page 29 and 30:
country. It is critical that Tanzan
Page 31 and 32:
After liberalization and subsidy re
Page 33 and 34:
With respect to CPPs, farmers mix a
Page 35 and 36:
quantity of fertilizer demanded by
Page 37 and 38:
Table 1. Action Plan Matrix: Policy
Page 39 and 40:
To sustain the efforts in human cap
Page 41 and 42:
guaranteed to receive full payment
Page 43 and 44:
Table 2. Tanzania Action Plan Matri
Page 45 and 46:
Page 47 and 48:
Page 49:
the “centerpiece” of SO 5 will
Page 53 and 54: UNITED REPUBLIC OF TANZANIA MINISTR
Page 55 and 56: PROCEEDINGS OF THE NATIONAL STAKEHO
Page 57 and 58: 6.0. DISCUSSION GROUPS’ RECOMMEND
Page 59 and 60: 6.1.8 Issues Raised � Regional in
Page 61 and 62: government levies charged on farm p
Page 63 and 64: the sector grew at 4.1%, in 2000 3.
Page 65 and 66: 45 Attachment II Closing Remarks by
Page 67: Annex II An Assessment of the Ferti
Page 70 and 71: Source: Derived from FAO data. Figu
Page 72 and 73: Table II.4. Tanzania Fertilizer Con
Page 74 and 75: Table II.6. Estimates of Fertilizer
Page 76 and 77: involved in the marketing of seed a
Page 78 and 79: Table II. 11. Tanzania Fertilizer I
Page 80 and 81: to be assigned for every five to si
Page 82 and 83: Tsh/bag and 16,000 Tsh/bag includin
Page 84 and 85: Table II.16. Retail Fertilizer Pric
Page 87 and 88: For the purposes of the seed market
Page 89 and 90: Table III.2. Seed Production by Gov
Page 91 and 92: market, poor infrastructure, and ab
Page 93 and 94: Association (TFA) has established i
Page 95 and 96: Both sectors need each other as the
Page 97: technology transfer methods, an act
Page 101: Most of the important crops cultiva
Page 105 and 106: • Importers provide credit, deliv
Page 107 and 108: Table IV.4. Retail Prices in Select
Page 109 and 110: degree of toxicity before they can
Page 111 and 112: A 1997-2000 inventory revealed 1,20
Page 113 and 114: or risky to buy goods fully on cred
Page 115 and 116: egional and district levels. Howeve
Page 117 and 118: Attachment IV.1. Major Pests and Di
Page 119: Paper Series IFDC—P-35 August 200
show all

An Action Plan for Developing Agricultural Input Markets in Tanzania

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?