An Action Plan for Developing Agricultural Input Markets in Tanzania

PROCEEDINGS OF THE NATIONAL STAKEHOLDERS’ WORKSHOP
ON DEVELOPING AGRICULTURAL INPUT MARKETS IN TANZANIA
ROYAL PALM HOTEL, DAR ES SALAAM
26 AUGUST 2004
1.0. OPENING SPEECH OF THE PERMANENT SECRETARY – MINISTRY OF AGRICULTURE
AND FOOD SECURITY
The Permanent Secretary of the Ministry of Agriculture and Food Security opened the workshop by thanking
the workshop participants. He said that the workshop was organised by IFDC in collaboration with the
Ministry of Agriculture and Food Security (MAFS). He thanked the workshop sponsors, namely, Global 2000,
USAID, and IFDC, and indicated that the purpose of the workshop was to review the draft action plan on
developing the agricultural input markets in Tanzania.
In his opening address, he stressed that the agricultural sector is the biggest contributor to the national
economy, accounting for about 50% of the gross domestic product (GDP), 66% of foreign exchange earnings,
and employs about 80% of the total labour force. For the past five seasons, agriculture has been growing at
around 4.4%. This growth rate was higher than the population growth (of 2.9% - 2002 Census). However, for
agriculture to act as an engine of economic growth in the Tanzanian economy, it has to grow at about 11% per
annum. He informed the participants that Tanzania is currently using approximately 7 kg of fertiliser nutrients
per hectare in comparison to an average of 16 kg/ha for the SADC countries, 16 kg/ha in Malawi, 51 kg/ha in
South Africa, 103 kg/ha in India, 279 kg/ha in China, 365 kg/ha in Vietnam and 578 kg/ha in the Netherlands.
Therefore there is a need to increase fertiliser use in Tanzania if we have to increase agricultural production and
productivity. The fertiliser requirement in Tanzania was estimated at 385,000 tonnes for the 2004/2005 season.
However, with improved marketing and full participation of the private sector, fertiliser use could go up to
600,000 tonnes. The use of other agro-inputs and seed is also on the lower side.
In conclusion, the Permanent Secretary called upon workshop participants to take an active role in reviewing
and refining the proposed action plan for the input marketing system (Attachment I).
2.0. SHORT REMARKS BY REPRESENTATIVE FROM USAID
The representative from USAID said that the USAID/Tanzania Country Strategic Plan 2005-2014 has now
been prepared. The plan focuses on areas that will have a wider impact on the community. It focuses on cash
crops in special areas, such as the Southern Highlands. The purpose of the Economic Growth Strategic Objective
was to increase incomes of rural families by increasing their productivity, market access, and trade opportunities
for selected agricultural commodities. In increasing productivity, supply of inputs is crucial. He concluded
his remarks by saying that the strategy is well positioned to play a strategic role in the overall effort to expand
market driven agricultural growth in Tanzania to support the government in its strategic approaches and policy
areas via the Poverty Reduction Strategic Plan (PRSP) and Agricultural Sector Development Strategy (ASDS).
35