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The RICE Value Chain in Tanzania

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The RICE Value Chain in Tanzania THE RICE VALUE CHAIN IN TANZANIA A report from the Southern Highlands Food Systems Programme R. Trevor Wilson I. Lewis This background paper is made available without further edits to the version presented by its authors. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. © FAO, 2015 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. CONTENT Acknowledgements ...................................................................................................................... 7 Executive Summary ...................................................................................................................... 8 Acronyms ................................................................................................................................... 11 Glossary of Kiswahili Words and Phrases .................................................................................... 13 1. Introduction ........................................................................................................................... 14 1.1 Study Objectives ......................................................................................................................... 14 1.2 Methodology ............................................................................................................................... 14 1.3 Brief Overview of the Value Chain .............................................................................................. 15 2. End Markets ........................................................................................................................... 17 2.1 National Market .......................................................................................................................... 17 2.2 Export Markets ............................................................................................................................ 22 3. The Rice Value Chain .............................................................................................................. 23 3.1 Overview...................................................................................................................................... 23 3.2 The Value Chain Map .................................................................................................................. 23 3.2 Technology Generation ............................................................................................................... 28 3.3 Input Supply and Demand ........................................................................................................... 29 3.4 Production ................................................................................................................................... 33 3.5 Processing .................................................................................................................................... 40 3.6 Wholesale and Retail Distribution ............................................................................................... 44 3.7 Target Group Considerations ...................................................................................................... 46 4. Systemic Constraints and Upgrading Opportunities ................................................................. 48 4.1 A Business Enabling Environment ............................................................................................... 48 4.2 Related to Vertical And Horizontal Linkages and Value Chain Governance ............................... 55 4.3 Related to Support Services ........................................................................................................ 56 5. Vision and Strategy for Improved Competitiveness and Growth ............................................... 65 5.1 Vision ........................................................................................................................................... 65 5.2 Strategic Issues Synthesis ............................................................................................................ 65 5.3 Value Chain Competitiveness Strategy ....................................................................................... 69 5.4 Proposed Strategy Components .................................................................................................. 69 Tutafanya Nini? What FAO Can Do .............................................................................................. 72 Annexes ..................................................................................................................................... 74 Annex 1. Stakeholders Met ............................................................................................................... 74 Annex 2. Documents Consulted ........................................................................................................ 76 Annex 3. CGIAR Centres With an Interest in Rice In Tanzania .......................................................... 81 Annex 4. Steps Involved in Rice Production ...................................................................................... 82 Annex 5. A Brief Survey of Marketing and Market Price of Rice, August – September 2013 ........... 84 Appendix A. Terms of Reference for a Tanzania Market Research Study ......................................... 94 Appendix B. Tanzania Rice Market Survey Questionnaire ............................................................... 96 Appendix C. Large-Scale Rice Trading out of Mbeya ......................................................................... 98 Appendix D. The Rice Mill Grouping at Rujewa, Mbarali District, Mbeya Region........................... 100 Appendix E. The Small- and Medium-Scale Rice Trail from Pawaga via Iringa to Dar Es Salaam ... 101 Appendix F. Some Miscellaneous Costs Associated with Rice Marketing ...................................... 102 Appendix G. Rice Market Survey Example of Completed Questionnaire ....................................... 103 Appendix H. Compiled Results of Market Survey Questionnaire of Rice Traders ........................... 105 LIST OF TABLES, FIGURES AND BOXES Tables Table 1: Estimates of Tanzania rice consumption and production, 2001-2011 (tonnes milled rice).... 20 Table 2: Estimates of Tanzania milled rice exports (tonnes) to neighbouring countries, 2011 ............ 22 Table 3: Simple listing of supply and service participants in the Rice Value Chain ............................... 24 Table 4: Participants and functions in the Southern Highlands Rice Value Chain ................................ 24 Table 5: Opportunities for technology advances for rice development in Tanzania ............................ 29 Table 6: Banks operating and providing loans in the Southern Highlands ........................................... 31 Table 7: Area, yield and production of paddy in selected countries and regions ................................. 35 Table 8: Financial analysis of smallholder rice production at Kilombero without and with the adoption of KPL’s SRI package .............................................................................................................................. 39 Table 9: Financial analysis of smallholder rice production at Mtenda Kyela rice scheme in Mbeya, without and with the adoption of an improved technology package................................................... 39 Table 10: Area of rice irrigation in 2002 and projections for 2017 ....................................................... 53 Table 11: Summary of donor and implementer activity in the rice sector in Tanzania ........................ 63 Table 12: Components and strategic foci of the Tanzania National Rice Development Strategy......... 65 Table 13: Existing policies, strategies and programmes of relevance to the rice value chain .............. 66 Table 14: Components of a strategy to improve the performance of the Tanzanian rice sector ......... 70 Table 15: The production and trade of food staples in Tanzania .........................................................
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