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The SOYBEAN Value Chain in Tanzania

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The SOYBEAN Value Chain in Tanzania THE SOYBEAN VALUE CHAIN IN TANZANIA A report from the Southern Highlands Food Systems Programme R. Trevor Wilson 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 copyright@fao.org. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through publications-sales@fao.org. i WHAT PEOPLE SAY “Future prospects for the soybean in Tanzania are absolutely bright.” Mmbaga, 1975 “I am very happy that I planted soybeans, even though not many farmers plant it. I am happy because it has fetched me more income than the normal beans.” Marcianna Nyirarukundo, a mother of three children in Kayonza district, Rwanda. “Soy is one of the few plants that provides a complete protein as it contains all eight amino acids essential for human health.” www.soyatech.com “In comparison with many of today’s major food sources, soybeans are truly a nutritional superpower. They contain the highest amount of protein of any grain or legume, and substantial amounts of fat, carbohydrates, dietary fibre, vitamins, minerals and a virtual drugstore of phytochemicals useful for the prevention and treatment of many chronic diseases.” www.soyatech.com “Soya meal, the residue after the extraction of the oil, is a very rich protein feeding stuff for livestock.” Purseglove, 1972 “Cocoa, coffee, rice, palm oil and soybean underpins environmental destruction and biodiversity.” Donald, 2004 ii CONTENT What People Say .......................................................................................................................... ii Acknowledgements ......................................................................................................................vi Executive Summary ..................................................................................................................... vii Acronyms ..................................................................................................................................... xi Glossary of Kiswahili Words and Phrases .................................................................................... xiii 1. Introduction ............................................................................................................................. 1 1.1 Study Objectives ............................................................................................................................ 1 1.2 Methodology ................................................................................................................................. 1 1.3 Brief Overview of the Value Chain ................................................................................................ 1 2. End Market .............................................................................................................................. 5 2.1 National Market ............................................................................................................................ 5 2.2 Export Markets .............................................................................................................................. 6 3. The Soybean Value Chain .......................................................................................................... 8 3.1 The Value Chain Map .................................................................................................................... 8 3.2 Technology Generation ............................................................................................................... 10 3.3 Input Supply and Demand ........................................................................................................... 11 3.4 Production ................................................................................................................................... 15 3.5 Processing .................................................................................................................................... 22 3.6 Wholesale and Retail Distribution ............................................................................................... 29 3.7 Target Group Considerations ...................................................................................................... 30 4. Systemic Constraints and Upgrading Opportunities ................................................................. 32 4.1 The Business Enabling Environment ........................................................................................... 32 4.2 Related to Vertical and Horizontal Linkages and Value Chain Governance ................................ 39 4.3 Related to Support Services ........................................................................................................ 40 5. Vision and Strategy for Improved Competitiveness and Growth ............................................... 48 5.1 Vision ........................................................................................................................................... 48 5.2 Strategic Issues Synthesis ............................................................................................................ 48 5.3 Value Chain Competitiveness Strategy ....................................................................................... 51 5.4 Proposed Strategy Components .................................................................................................. 52 Annexes ..................................................................................................................................... 56 Annex 1. Stakeholders Met ............................................................................................................... 56 Annex 2. Documents Consulted ........................................................................................................ 62 Annex 3. Timelines — The Rise and Fall of a Minor Protein/Oilseed Crop, 1907-2013 .................... 71 Annex 4. Items Containing Soya or Soya Product Imported into Tanzania ....................................... 75 Annex 5. Partial List of Soya Been Processors and Products in Tanzania ......................................... 96 Annex 6. Poultry Feed Manufacturing Enterprises in Tanzania ........................................................ 99 Annex 7. Some Activities of The Soya Ni Pesa Project In The Roman Catholic Diocese of Njombe 101 Annex 8. International Funding Obtained by Tanfeeds of Morogoro ............................................. 102 iii LIST OF TABLES, FIGURES AND BOXES Tables Table 1: Development conditions and projected demand for soybeans in Tanzania ............................. 5 Table 2: Supply and service participants in the soybean value chain ..................................................... 9 Table 3: Participants and roles in the soybean value chain .................................................................... 9 Table 4: Banks operating and providing loans in the Southern Highlands ........................................... 14 Table 5: Genetic soybean resources in use in Tanzania, 1957-2013 ..................................................... 17 Table 6: Recent soybean production, and potential area and output increases in five Tanzanian regions ................................................................................................................................................... 20 Table 7: Targets for soybean areas planted, outputs, proportions processed and exported, and seed production of soybean, 2010-2020 ....................................................................................................... 20 Table 8: Theoretical gross margin analyses for smallholder soya production in the Southern Highlands ............................................................................................................................................................... 21 Table 9: Theoretical gross margin analyses for participants in the soybean value chain ..................... 29 Table 10: Projected targets with full implementation of TSDS, 2010-2020
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