An Action Plan for Developing Agricultural Input Markets in Tanzania

than 5% of the market. This is based on the
abovementioned situation where seed distribution was
not according to demand. However, this analysis is not
supported by more recent data obtained from the Seed
Unit. According to Table III.4, during the last years of
TANSEED, seed supply averaged about 2,000 tons of
seed per year, a figure, which shot up to over 4,000
tons in 1998/99 and 10,000 tons the following year.
This shows an increase in supply, rather than a decrease.
According to the same source, seed from private
companies available for the year 2002/03 totaled 9,587
tons. This was excluding the seed sold by TANSEED,
which was nearly defunct by then. In addition to the
formal sources, there were about 266.5 tons from ARIs/
FSFs and another 572.5 tons from QDS and NGO
sources. Thus, taking into consideration all the current
sources of seed in Tanzania, there does not seem to be
a problem with seed supply, and the claim of reduced
seed supply following liberalization does not seem to
be true. Although the market pathway for seed produced
from government institutions and NGOs is not clear, it
is assumed that most of it ends up being planted by
farmers. The only snag is that such seed supply distorts
the market because it is not commercially produced
and marketed, and its regularity is not guaranteed.
But overall, it would seem more accurate to say
that seed supply has actually risen following liberalization,
although it is still not sufficient to meet the
total demand.
Seed Demand—According to the MAFS’ data,
overall potential seed demand has steadily risen from
approximately 126,000 tons to nearly 170,000 tons for
the same period 1993 to 2000. The biggest increase is
Table III.4. Seed Supply From Formal Sources (1993/94 to 1999/2000)
Source: Compiled from Seed Unit data.
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in beans and wheat, followed by rice. The seed demand
for maize, sorghum, and oilseeds rose only nominally.
This trend might be attributed to increased crop acreages,
although no attempt was made to do an analysis
in this regard. It should be emphasized that these figures
only show potential demand, and the situation for
actual demand and effective demand is hardly known.
There are no data at all, because no attempt has ever
been made to do a seed market survey.
For many of the crops with big seed requirements
like beans, rice, and wheat, farmer-saved seed and other
informal seed would suffice because these are self-pollinated
crops. It is only maize, and to some extent sorghum
and oilseeds, that the formal seed sector has the
potential to supply a sizeable percentage. Even with
these crops, competition from informal seed sources is
still significant where most farmers still grow OPVs. It
is, therefore, imperative to actively develop the demand
for improved seeds.
Seed Distribution Network—After the collapse
of the cooperative system, a distribution network of
private traders has developed across the country. According
to industry sources, there are probably over
500 active stockists, mostly located in the main towns
and trading centers and selling all types of agri-inputs.
Private seed companies make over 70% of their sales
through this network. Although this is a small number
of stockists for a country the size of Tanzania, it is still
a commendable start considering the history and size
of the industry. With the combined effort of the entire
agri-input sector, and the support of the public sector,
this number can be easily doubled and the network can
slowly extend to rural areas. The Tanganyika Farmers’