An Action Plan for Developing Agricultural Input Markets in Tanzania

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manner, which renders it unsustainable. It is recommended that the private sector should be invited to participate in the scheme, either by buying the seed for bulking, processing and marketing, and/or by using the QDS farmers as seed stockists. This might attract the companies to handle the seed of the so-called “orphan crops.” Similarly, there are many NGOs involved in informal seed production without a clear exit strategy. Such NGOs should work with MAFS and the private sector to develop small rural enterprises (SMEs), which can continue to serve their communities on a commercial basis. They can be specialized producers and suppliers of certain seeds either independently or as agents of larger companies. This way, both the informal and the formal seed sectors can mutually reinforce. Integration of Regional Markets A number of stakeholders in the seed industry in Eastern Africa have for sometime realized the need to create fairly large markets in order to attract meaningful investment required to provide the quantity, quality, and variety of seed needed to support an expanding agricultural base. Otherwise, the low level of effective demand and the high transactional costs in each individual country’s seed market makes it unattractive for investment by local or international companies. For this reason, since 1999 the Association for Strengthening Agricultural Research in Eastern and Central Africa (ASARECA)—with USAID funding—has spearheaded a project for “The Harmonization of Seed Policies in Eastern Africa.” The project started with the three East African countries of Uganda, Kenya, and Tanzania, taking advantage of the revival of the EAC, and is already expanding to include all the countries in the ASARECA mandate. The project has covered five specific areas as follows: • Variety evaluation, release, and registration. • Seed certification. • Phytosanitary regulations. • Plant variety protection. • Laws and regulations governing development of the seed trade of local seed industries and entry of foreign seed companies, including those from neighboring countries. 76 The project is already in very advanced stages, having passed through an elaborate consultative process. Most of the public and private seed industry stakeholders in Tanzania are aware of the project, and all that can be said here is to encourage the policymakers to quickly implement the agreed positions. It will lead to a common regional market with an effective demand large enough to induce needed investment and create the competition required to establish a viable and efficient seed industry in the region. Tanzanian farmers stand to benefit. With this initiative, the private sector should take advantage and establish collaboration and networking at the company level as well as at the association level. This is critical for the local national companies in order for them to build capacity for cross-border sourcing and marketing of seeds. Technology Transfer Efforts Following the liberalization of the seed industry, it is often assumed that seed companies and other agriinput suppliers will promote their products using conventional marketing methods, such as advertising, public relations, etc. Consequently, the public sector has no more roles to play. This analysis is quite flawed. First of all, we are dealing with peasant farmers (the vast majority of our target clientele) who are neither accessible with the standard methods nor will they easily comprehend the messages contained therein. Second, we are dealing with high volume—low value products, with low elasticity of demand, whose benefits are indirect and come after some time. Their potential benefits are also influenced by other externalities like weather, soil, and general management. For instance, the benefits of using maize hybrid seed not only depend on adequate rainfall, but also on use of appropriate fertilizer, proper plant population, timely weeding, etc., and the benefits are realized only after harvesting and even selling. Similarly, the benefits of using fertilizer are affected by correct weather, timely and accurate application of the right type and amounts, and use of suitable varieties of crops capable of responding to the fertilizer. These benefits are also realized after selling the resultant crop. In both cases, poor output marketing can wipe away any potential benefits. For these reasons, therefore, the most effective way of promoting the use of improved agri-inputs is through
technology transfer methods, an activity for public-private partnership. Since the inputs complement each other to realize their full benefits, the method involves using the full technological package under farmers’ conditions. The extension staff and technical personnel from input suppliers provide technical back up to the farmers who do the actual farm work on their farms. The companies provide the inputs free of charge (plus any technical literature) and the farmers provide free labor and land for which they take the resulting crop. They also benefit from the technical advice. These farms act as demonstration plots where other farmers can congregate at agreed times so that the message can spread further. 77 This is a very effective means of promoting the use of improved inputs, and many seed companies are already using it. “Seeing is believing!” It is the extension services and government and donor funded projects that need to proactively seek out private sector collaboration and promote the use of this method. This way, the government will not have abdicated its responsibility under the guise of privatization.
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An International Center for Soil Fe
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An Action Plan for Developing Agric
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Foreword The agriculture sector pla
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Contents Page Executive Summary ...
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Acronyms and Abbreviations AAT Agro
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Technical Constraints Technical con
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Matrix A. Action Plan Matrix: Polic
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Output Market Development—The dem
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Source: Henao and Baanante (1999).
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uted to the preparation of action p
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200 stakeholders from all domains
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country. It is critical that Tanzan
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After liberalization and subsidy re
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With respect to CPPs, farmers mix a
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quantity of fertilizer demanded by
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Table 1. Action Plan Matrix: Policy
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To sustain the efforts in human cap
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guaranteed to receive full payment
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Table 2. Tanzania Action Plan Matri
Page 45 and 46: Table 3. Tanzania Action Plan Matri
Page 47 and 48: Table 4. Tanzania Action Plan Matri
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: Both sectors need each other as the
Page 101 and 102: Most of the important crops cultiva
Page 103 and 104: Figure IV.3. Structure of the CPP M
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
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