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A Report on Avocado Value Chain Mapping in Siha and Njombe Districts

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A REPORT ON AVOCADO VALUE CHAIN MAPPING IN SIHA AND NJOMBE DISTRICTS May 20th, 2014 Prepared by Hebron A. Mwakalinga P.O. Box 78496, Dar es Salaam Phone : +255 786 171 000 E-mail: [email protected] Report on Avocado Value Chain Mapping in Siha and Njombe ACKNOWLGEMENT AND DISCLAIMER The Consultant thanks UNDP and MIT for awarding us this interesting and important assignment of mapping avocado value chain in Siha and Njombe. It is important because of the potential the crop has in improving rural household incomes, foreign exchange earnings, nutrition to Tanzanians as well as environment protection. The Consultant team acknowledges the support received from UNDP and MIT staff namely Mr. Ernest Salla – Practice Specialist Trade/Private Sector Development, Mr Yona Shamo – Procurement Associate and Ms Irene Kajuna – Procurement Analyst. At the Ministry of Industry and Trade the work was supervised by SME Department Staff particularly Dr. Fidea Mgina – Assistant Director and Mr. Deogratius Sangu – Trade Officer who also accompanied the team in the field. In Kilimanjaro we acknowledge RAS staff namely Mr. Simon Msoka and Frederick Mushi for their assistance in gathering production data from District Councils and Mr. Frederick Mushi for participating at the Siha’s stakeholders’ workshop. At Siha the Acting District Executive Director Mr. Jonas P. Moses is thanked by the Team for gracing the workshop. Special appreciations go to Mr. A. Siayo Agriculture Officer who coordinated all field activities in Siha. In Njombe special thanks are extended to Njombe Regional Commissioner Captain A. G. Msangi who dedicated about two hours of his precious time for consultation with the study team, alongside the Regional Commissioner were the Assistant RAS – Productive Sector Mr. Mkongo and RC’s Personal Assistant Mr. Daniel Ngalupela. We appreciate the contribution by staff at the District Councils of Njombe Town, Wanging’ombe and Njombe District and particularly the heads of Agriculture, Irrigation and Cooperative Departments that supplied us with relevant secondary information and guided the sampling of villages for focus group discussions, coordinated and participated in field trips and two workshops. At USAID we thank Mr. Adam Stefan – private enterprise officer who provided information about Tanzania Agriculture Productivity Programme and connected the Team to TAPP officials. HODECT and TAHA shared their insights about the development of horticulture sector in Tanzania and on key policy issues that are indeed critical for the development of this sector. The team is delighted to have interacted with the investors in avocado, the CEOs of the two companies Africado’s CEO Mr. James Parsons and Rungwe Avocado CEO Mr. Robert Clowes, shared their experience in the field and provided a vision for the crop. The Consultant team had interacted with more than 80 people and it is not possible to list them all, we reiterate that for those we haven’t acknowledged by name, we sincerely value their input. Led by Hebron Mwakalinga, other members were Eng. Francis Mwimanzi, Zaphania Mposo, Herman Muro, Emmanuel Enock and Ms Maria Nyaki. The team shares with all the people who extended assistance, the credit for the job, but exonerates them from any shortcomings, these shall remain the liability of the Consultant. ______ i Report on Avocado Value Chain Mapping in Siha and Njombe EXECUTIVE SUMMARY The following are the findings on the export market value chain in Siha and Njombe and corresponding recommendations to scale up the value chains. Main Research and Inputs and Seedlings Production Bulking for export Shipment/logistics Target End Markets Function Development Actors Agriculture Research USAID/TAPP who support Large scale farmers Africado in Siha TAHA Fresh, Supermarkets in The Institutes of Tengeru, seedlings dissemination at (Africado 85% and RAC Rungwe Avocado DAMCO/Maersk, Netherlands, France, UK, Uyole and SUA. subsidized price 75%) of exported in Rungwe Mbeya Tanzania Ports and Germany. Labs in Kenya and UK Africado and RAC nurseries avocado Authority producing quality planting Rapid growth of NOTE: Efforts by Kenya Ports materials. commercial farmers smallholder farmers Authority Tengeru, Uyole and SUA especially in Njombe to access markets horticulture sections (RAC initial purchase in failed for lack of produce and sell grafted 2013 volume and seedlings Out grower scheme to certification. Individual and groups who increase smallholder produce seedlings share in exports (15% for TPRI for approvals of Africado and 25% for chemicals and fertilizers RAC) ii Report on Avocado Value Chain Mapping in Siha and Njombe Main Research and Inputs and Seedlings Production Bulking for export Shipment/logistics Target End Markets Function Development Opportunitie There are research Basic fertilisers and Competitive return on Potential Efficient, Strong demand in the s institutions at chemicals available from investment for both international remotely target (EU) market Tengeru, SUA and conventional suppliers. plantation and horticultural controlled (260,000mt p.a.) Uyole responsible for Exporters are linked to smallholder production. market at Segera refrigerated promotion of suppliers of special inputs Presence of committed (by Handeni DC & containers (e.g. Good avocado oil avocado among other e.g. (micro-nutrients, development partner TIB). Maersk's) reduce market (Olivado Kenya things. pheromones, etc.) outside (USAID/TAPP). Njombe loss and plans to invest in Tanzania. Experienced farm horticulture insurance costs. Rungwe) certification services farmer service available e.g. from centre (by TAHA Increased Unexplored Middle AfriCert. and Njombe Town efficiency at the East Market. Council) port. Strengths Stock of germ plasm Presence of commercial Committed investors both Two ultra-modern Increase capacity Possible link to niche for improving plant seedlings production being local and from abroad. pack houses (Siha and efficiency at markets. quality (at Tengeru) supported by LGAs (in and Rungwe) with Dar es Salaam port Njombe they supply >80%). combined capacity (direct loading into Africado and RAC are of 10,000mt per the ship). linked to foreign season. laboratories. Weaknesses R&D highly Limited access to quality Volumes are still very Capacity Many road Narrow range of underfunded e.g. rootstock and scion by low hence diseconomies underutilization of blocks between preferred variety Uyole gets TZS commercial seedlings of scale. the pack houses farm and port up (Hass), Hass has not 5million to cover producers now at about 10%. to 30hours been accepted yet in horticultural crops. Smallholders lack increasing fuel the domestic market. Tengeru none. Lack of sustainable backup knowledge on product costs and risk of system for commercial quality for export missing the ship. Weak coordination seedlings producers market. between ARIs and Low volumes large scale farmers Lack of tailored credit Limited knowledge on force use of facility diseases and pests. ships, efficient Lack of tailored credit air cargo facility. requires 80mt a trip. iii Report on Avocado Value Chain Mapping in Siha and Njombe Main Research and Inputs and Seedlings Production Bulking for export Shipment/logistics Target End Markets Function Development Risks Eroding national Limited access to critical High cost of Global GAP High cost of Ever raising cost Changing consumer avocado knowledge inputs due to restrictive certification for packaging of fuel that preferences base, research in registration regulations and smallholder farmers. materials now increases avocado requires a prohibitive fees e.g. USD Possibility of occurrence being imported shipment cost Lack of demand in minimum of 7 years 30,000 to register one type of diseases and pests from Kenya. now at domestic market for to produce of fertilizer and USD 10,000 especially with USD1.5/kg, Hass variety puts scientifically one type of chemical. smallholder farmers. target is 0.8/kg. farmers at risk when acceptable results quality does not meet while many R&D Inability of Ever declining water Poor roads in export market projects are funded regulatory/certification bodies to support many areas requirements. for 2-5 years only. bodies to cope with irrigation required to during March – advancement in inputs sustain production of July which is technology in the world >20mt/ha. peak avocado hence barring entry of harvesting efficacious inputs. Limited resources from period. Government to support Rigid input regulatory out grower scheme in system discourages Siha. investment in domestic inputs blending technology. Limited area for expansion in the case of Siha General UNDP/MIT should Inputs Support broadening and Conduct a Support TAHA Build the knowledge Recommend support MAFC to re- Support HODECT and TAHA intensification of training feasibility study for Fresh Ltd to to out growers to ations activate and prioritize to advocate/lobby for to out growers on:- a pack house in increase its fleet understand the needs R&D on avocado friendly input regulatory o Farming as business Njombe (link it to of refrigerated and dynamics of end around export value regime with MAFC. o Good avocado Farmer Services trucks in markets (support chains (Tengeru, SUA Support establishment of production practices Centre) facility response to learning visits by lead and Uyole ARIs). avocado stakeholders’ o Harvesting and pots- being developed expanding farmers to target forum at District and harvesting
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