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Agricultural Council of Tanzania AGRICULTURAL COUNCIL OF TANZANIA COUNTERFEIT AGRICULTURAL INPUTS IN NJOMBE: CAUSES AND EFFECTS DRAFT RESEARCH REPORT SUBMITTED BY CENTRE FOR POLICY RESEARCH AND ADVOCACY April 2016 1 | P a g e Contents Contents ........................................................................................................................................................ 2 LIST OF ABBREVIATIONS AND ACRONYMS ............................................................................................. 4 LIST OF TABLES ........................................................................................................................................... 5 LIST OF FIGURES ......................................................................................................................................... 6 EXECUTIVE SUMMARY ............................................................................................................................... 7 SECTION ONE: CONTEXT AND SCOPE OF THE ISSUE ........................................................................... 10 1.1 Introduction ........................................................................................................................................... 10 1.2 The Issue ........................................................................................................................................... 10 1.3 Scope of the Study ............................................................................................................................ 11 1.4 Approach and Methodology ............................................................................................................. 12 1.4.1 Debriefing and Inception of the Assignment ............................................................................ 12 1.4.2 Review of Relevant Documents and Literature ........................................................................ 12 1.4.3 Fieldwork and Data Collection ................................................................................................... 12 1.4.4 Validation Meeting of the Stakeholders ................................................................................... 12 1.4.5 Compilation of Data and Analysis ............................................................................................. 13 SECTION TWO: REVIEW OF VARIOUS DOCUMENTS ON COUNTERFEIT INPUTS ............................... 14 2.1 Defining Counterfeit ......................................................................................................................... 14 2.2 Magnitude of Counterfeit Problem .................................................................................................. 14 2.2 Previous research on Agro-inputs Counterfeiting ........................................................................... 15 2.3 Policy and Regulatory Framework in Tanzania ................................................................................ 16 2.3.1. Tanzania’s agricultural policy ................................................................................................... 17 2.3.1 Legal and Regulatory Framework for Fertilizers ....................................................................... 18 2.3.2 Legal Framework for Agro-Chemicals ...................................................................................... 18 2.3.3 Seed Industry Policy, Legal and Regulatory Framework .......................................................... 19 2.3.4 Agricultural Sector Strategy and Programme .......................................................................... 19 2.3.6 The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) ....................................... 21 SECTION THREE: FINDINGS AND KEY OBSERVATIONS ........................................................................ 23 3.0 Introduction ...................................................................................................................................... 23 3.1Agricultural Statistics in Njombe ....................................................................................................... 23 2 | P a g e 3.2 Pragmatic Issues Relating to Counterfeit Inputs.............................................................................. 24 3.2.2 Distribution channels ..................................................................................................................... 25 3.2.3 Understanding the Counterfeit Problem in Njombe Region .................................................... 26 3.2.3 The practice of counterfeiting in the supply chain .................................................................... 26 3.3 Drivers of Counterfeit inputs in Njombe .......................................................................................... 27 3.3 The Impact of Counterfeit Inputs on the Economic Wellbeing of Farmers ..................................... 28 3.4 Success Stories in dealing with counterfeits in Njombe .................................................................. 29 3.4.1 The ULUMAII cooperative society ............................................................................................. 30 3.4.2 Njombe Agricultural Development Organization (NADO) ....................................................... 30 4.1 Key conclusions ................................................................................................................................. 33 4.2. Recommendations .......................................................................................................................... 34 APPENDICES .............................................................................................................................................. 39 Appendix I: Interview Guides and Checklist ........................................................................................... 39 Appendix II: LIST OF RESPONDENTS FROM NJOMBE ........................................................................ 40 Appendix III: VALIDATION MEETING REPORT ..................................................................................... 41 3 | P a g e LIST OF ABBREVIATIONS AND ACRONYMES ABSAC Agriculture Bio-safety Scientific Advisory Committee ACT Agriculture Council of Tanzania ALAT Association of Local Authorities of Tanzania BEST – AC Business Environment Strengthening for Tanzania (Advocacy Component) CBOs Community-Based Organizations COSTECH Commission for Science and Technology CSOs Civil Society Organizations DEDs District Executive Directors EC European Commission ECPA European Crop Protection Association FAO Food and Agriculture Organization GM Genetically Modified KAM Kenya Association of Manufacturers LGA Local Government Authority MDGs Millennium Development Goals NADO Njombe Agricultural Development Organization NBAC National Bio-technology Advisory Committee NGO Non-Government Organization NPK Nitrogen, Phosphorus and Potassium NPT – TC Non Performance Trial – Technical Committee NSC National Seed Committee OECD Organization for Economic Co-operation and Development PARTS Pesticide Approval and Registration Technical Sub-committee PEPQS Post-Entry Plant Quarantine Station PM Prime Minister POPs Persistent Organic Pollutants PPP Public/Private Partnership PSIM Post-Surveillance Inspection Monitoring RECs Regional Economic Communities SACCOS Savings and Credit Cooperative Society SOP Standard Operations Procedure SSA Sub-Saharan Africa TASTA Tanzania Seed Traders’ Association TBS Tanzania Bureau of Standards TFRA Tanzania Food Reserve Authority TOSCI Tanzania Official Seed Certification Institute TPRI Tanzania Pesticide Research Institute ULUMAII Usuka, Lugoda¸Matoo, Ikwegu and Iteni WEMA Water Efficient Maize for Africa WHO World Health Organization 4 | P a g e LIST OF TABLES Table: 2.3.1 Input accessibility 2012/2013, Tanzania ………………………………………………….……18 Table 3.1: Distribution of Total Arable Land by Council, Njombe Region, 2012….……….……….23 Table 3.2: Estimated Area (ha) under Major Food Crops; Njombe Region; 2009/10 – 2011/12…………………………………………………………………………………….……………....25 Table 3.2.1: Common Agricultural Inputs and Authorized Producing Companies in Njombe…………………………………………………………………………………………………….…………….25 Table 3.3: The Drivers of Counterfeit Agricultural Inputs in Njombe.................................…...27 Table 5: Estimated Economic Impacts of Counterfeit Agro inputs in Njombe………………….….29 5 | P a g e LIST OF FIGURES Figure 3.1: Annual average Area (ha) planted with Major Food crops, Njombe Region, 2009/10 – 2011/12………………………………24 6 | P a g e EXECUTIVE SUMMARY The issue of counterfeit agro-inputs is a global problem facing both developing and developed countries. In Europe, the rate of counterfeit agro-inputs is reported to range from 5% to 7%. The fake agro-inputs in Africa are reported to comprise 15-20% of the agro-inputs market. In Tanzania, the situation is more challenging as about 40% of agro-inputs (seeds, fertilizers and pesticides) are reported to be fake (in2eastafrica.net, 2012). Overall, smallholders are significantly affected by the situation as 80% of them live in rural areas and heavily depend on agriculture. Through consulting with members of ACT, traders and farmers it was observed that there has been an increasing supply of counterfeit agro-inputs in Njombe region accounting for more than 30% of agro-inputs, but enforcement of the laws and regulations governing the supply and use of agricultural inputs has been ineffective. Therefore, ACT with
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