UNITED REPUBLIC OF TANZANIA

MINISTRY OF LIVESTOCK AND FISHERIES DEVELOPMENT

INVESTMENT OPPORTUNITIES IN LIVESTOCK INDUSTRY

DECEMBER, 2011

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TABLE OF CONTENTS

1.0 INTRODUCTION ------------------------------------------------------------------------------------ 1 1.1 Country Profile -------------------------------------------------------------------------------------- 1 1.2 Climate ----------------------------------------------------------------------------------------------- 1 1.3 Soil Type and Vegetation -------------------------------------------------------------------------- 1 1.4 Policy and Legal Framework ---------------------------------------------------------------------- 1 1.4.1 National Livestock Policy and Legal Framework ------------------------------------------ 2

1.5 Importance of the Livestock Industry ----------------------------------------------------------- 2

2.0 INVESTMENT ENVIRONMENT -------------------------------------------------------------------- 3 2.1 Political Stability and Related Factors ----------------------------------------------------------- 3 2.2 Market Access --------------------------------------------------------------------------------------- 4

3.0 LIVESTOCK INDUSTRIES RESOURCES ---------------------------------------------------------- 4 3.1 NARCO Ranches, Multiplication Units and Other by Products ------------------------------- 5 3.1.1 NARCO Ranches ------------------------------------------------------------------------------- 5 3.1.2 Multiplication Units ---------------------------------------------------------------------------- 5 3.1.3 The Hides, Skins and Other by Products -------------------------------------------------- 6

4.0 POTENTIAL AREAS OF INVESTMENT ------------------------------------------------------------ 6 4.1 The National Ranching Company (NARCO) ----------------------------------------------------- 6 4.1.1 Kongwa Ranch --------------------------------------------------------------------------------- 6 4.1.2 Mzeri Ranch ------------------------------------------------------------------------------------ 8 4.1.3 Ruvu Ranch ------------------------------------------------------------------------------------10 4.1.4 Mkata Ranch ----------------------------------------------------------------------------------11 4.1.5 Kikulula Ranching Complex -----------------------------------------------------------------12 4.1.6 Missenyi Ranch -------------------------------------------------------------------------------14 4.1.7 West Kilimanjaro ------------------------------------------------------------------------------15 4.1.8 Kalambo Ranch -------------------------------------------------------------------------------17 4.1.9 Privately Owned Ranches -------------------------------------------------------------------18

4.2 Other Animal Production Resources -------------------------------------------------------------19 4.3 Livestock Multiplication Units (LMUs) -----------------------------------------------------------21 4.3.1 Mabuki LMU -----------------------------------------------------------------------------------21 4.3.2 Sao Hill LMU -----------------------------------------------------------------------------------21 4.3.3 Nangaramo LMU ------------------------------------------------------------------------------21 4.3.4 Kitulo Dairy Farm -----------------------------------------------------------------------------21 4.3.5 Ngerengere LMU ------------------------------------------------------------------------------21

4.4 Leather Industry -----------------------------------------------------------------------------------22 4.4.1 Tanning ----------------------------------------------------------------------------------------22

4.5 Other Livestock By-products ---------------------------------------------------------------------24 4.6 Animal Feeds ---------------------------------------------------------------------------------------25 4.7 Central Veterinary Laboratory -------------------------------------------------------------------28 4.8 Livestock Products, Abattoirs & Meat Processing Plants -------------------------------------29 4.9 The Dairy Industry ---------------------------------------------------------------------------------31

5.0 CONCLUSION ---------------------------------------------------------------------------------------37

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INVESTMENT OPPORTUNITIES IN THE LIVESTOCK INDUSTRY

1.0 INTRODUCTION

1.1 Country Profile

Tanzania is located between longitude 290 and 410 East and Latitude 10 and 120 South. The country is bordering Kenya and Uganda to the North; Rwanda, Burundi and Democratic Republic of Congo to the West; Zambia, Malawi and Mozambique to the South and the Indian Ocean to the East. It covers an area of 94.52 million hectares of which 88.6 million hectares is land mass and 5.92 million hectares is covered by water. Currently, the country has a human population estimated at 40 million.

1.2 Climate

Generally, Tanzania has a tropical type of climate. However, in the highlands, temperatures range between 100C and 200C during the cool and hot seasons, respectively. The rest of the country has temperatures which hardly go below 200C. The hottest period spreads between November and February (250C - 310C) while the coolest period occurs between May and August (150C - 200C). It has two rainfall regimes, a unimodal (December - April) and a bimodal (October -December and March - May). The former is experienced in the Southern, South – West, Central and Western parts of the country, and the later is found in the North and Northern Coast. In the bimodal regime, the March-May rains are referred to as the long rains (Masika), whereas the October-December rains are generally known as short rains (Vuli).

1.3 Soil Type and Vegetation

Most soils in Tanzania are reddish-brown derived from the volcanic rocks. Other types include mbuga and alluvial soils which have good potential for agricultural production. The interior plateau is covered with red and yellow tropical loams of moderate fertility. The natural vegetation of the country has been considerably modified by human occupation. In the South and West central areas there are long tracts of woodland covering about 30% of the country, while on the uplands there are smaller but important areas of tropical rain forests (0.5% of the country). Clearly marked attitudinal variations in vegetation occur around the upland areas and some distinctive mountain flora is found.

1.4 Policy and Legal Framework

Tanzania has an open market economy. However, the Government role remains to formulate conducive policies and enabling legal frameworks which pave way for private sector growth and development. In the process of implementing these policies, among other things, Tanzania has launched KILIMO KWANZA resolve. This initiative aims at facilitating the involvement of the Private Sector in agricultural activities which includes livestock farming. Thus, KILIMO KWANZA resolve is a government’s commitment in promoting investment in the livestock sector.

In order to promote private investment in the country, there has been established a Tanzania Investment Centre (TIC). TIC is the focal point for all investors’ inquiries and facilitation of project start-ups, encourage joint venture investment and dissemination of investment information. It also serves as a one-stop centre for providing information about land acquisition, taxes, exemptions and other investment incentives packages.

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1.4.1 National Livestock Policy and Legal Framework

The National Livestock Policy (2006) aims at stimulating development of livestock industry in order to exploit the available potentials to increase its contribution to the national economy while ensuring environmental conservation. Secondly, it recognizes the importance of the private sector in promoting commercialized livestock industry. In addition, the policy is amongst many of the initiatives that invites and opens wide the door to the private sector investments. Various acts have been enacted for effective policy implementation and regulation of the industry; these include Veterinary Act No. 16 of 2003; Animal Diseases Act No. 17 of 2003; Dairy Industry Act No. 8 of 2004; Meat Industry Act No. 10 of 2006; Hides and Skin Act No. 18 of 2008; Animal Welfare Act No. 19 of 2008; Livestock Identification, Registration and Traceability Act No. 12 of 2010 and Grazing-land and Animal Feed Resources Act No. 13 of 2010. (i) Meat Industry Act No. 10 of 2006

The Act supports Meat industry restructuring through establishment of proper organization and coordination of the meat industry stakeholders for the development of the industry. It also regulates the production of the meat and meat products within the meat value chain to ensure quality and standards of meat and meat products. (ii) Animal Diseases Act No. 17 of 2003 The Act makes provision for the surveillance, control and prevention of animal diseases and assurance of safety and quality of livestock products. It prescribes measures to be undertaken in the event of a disease outbreak, regulation of movement of animals and their products including trade, as well as public health measures to prevent spread of diseases from animals to humans. (iii) Animal Welfare Act Cap 154 (No 19 of 2008) (R.E 2010)

Provides for the humane care of animals and incidental matters. (iv) The Livestock Identification Registration and Traceability Act No 12

Provides for the establishment of the national Livestock Identification Registration and Traceability (LIRT) System for the purpose of disease control, market accessibility, theft prevention and food safety.

1.5 Importance of the Livestock Industry

Tanzania is endowed with abundant natural resources which include land and a huge livestock resource base. Out of 88.6 million hectares of land; 60 million ha are rangelands with a carrying capacity of up to 20 million Livestock Unit (LU) and providing over 90% of the feed resource for livestock. The livestock resources include 21.3 million cattle, 15.2 million goats, 6.4 million sheep. Other livestock kept include 1.9 million pigs, 35 million traditional chickens and 23 million layers and broilers (2010). Over 70% of livestock in the country is found in the lake, northern and central zones (Figure 1). These animals are kept under four farming systems which are; mixed farming, agro-pastoral, pastoral and commercial. The country ranks third in Africa in terms of cattle numbers after Ethiopia and Sudan. In 2009, the livestock sector contributed 4.0% of the GDP, of which 40% came from beef, 30% dairy and the remaining 30% from other livestock products.

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Over 98% of cattle are of indigenous breed, mainly Tanzania Shorthorn Zebu (TSZ) that are known for their ability to survive and are productive even under harsh environment with poor feed resources and diseases challenge.

Figure 1:

Source: MLFD 2011 Investment potentials in the livestock sector exist in the meat, dairy, hides and skins, animal feeds; and veterinary biological and pharmaceuticals.

2.0 INVESTMENT ENVIRONMENT

2.1 Political Stability and Related Factors

Tanzania has enjoyed political stability for about half a century since independence. This is due to the existence of democratic institutions which have contributed effectively towards good governance, human rights observance; rule of law; ethnic and diversity stability. Tanzania is, also, a signatory to various international conventions and protocols which, among others, call for observance of issues on human rights, good governance, gender and environment.

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2.2 Market Access

With the estimated 40 million people, Tanzania offers sufficient market for agricultural products and in particular livestock and livestock products. The national economy has been growing steadily at around 5–6% annually between 2005 – 2009. In addition, to the domestic market, the East African Community (EAC), comprising Kenya, Uganda, Rwanda, Burundi and Tanzania offers potential market for investors. Beyond the EAC, there are at least three other markets to which investors in Tanzania have access. One is the Southern African Development Community (SADC) with its 215 million consumers; another is the European Union, to which Tanzanian exports have access arrangement under the EU’s Everything But Arms (EBA) initiative; and the third is the United States, to which Tanzania has access under the provisions of the African Growth and Opportunity Act (AGOA). Also, Tanzania has seaboard, inland water ports; land and air links which provide it with reliable access to export markets. 3.0 LIVESTOCK INDUSTRY RESOURCES The meat industry is one of the important components in the livestock sector. Average meat production in 2010/2011 was estimated at 503,496 tones. Given the human population of Tanzania, that currently stands at 40 million and taking into consideration that FAO recommends 50 kilograms per capital consumption against the actual consumption of 12 kg therefore, there is sufficient demand for meat in the country. Most of the meat produced comes from indigenous cattle, sheep and goats. In addition, there is also a demand for investment in quality meat production to meet mainly requirements of the growing number of middle-income consumers, tourist hotels, mining centres and supermarkets in the country and for export. Currently, the country is exporting live animals and meat to foreign markets such as The Democratic Republic of Congo (DRC), Comoro and in the Middle East (Kuwait, United Arab Emirates and Oman). For instance, in 2010/2011, a total of 2,970 cattle, 657 goats and 403.3 tones of meat worth Tshs 1.6 were exported. Meat processing is not well developed with relatively few meat processing facilities such as Happy Sausage (Arusha), Health sausage, (Arusha), TanMeat Company (Dar es Salaam), Mkuza (Coast), Interchick (Dar es Salaam), VETA Dodoma (Dodoma), Manyara Ranch (Arusha), etc. Recent initiatives in attracting investment in the meat processing industry have resulted into the establishment of abattoirs in Dodoma (Tanzania Meat Company), Morogoro (Tanzania Pride Meat) and Rukwa (Sumbawanga Agricultural and Animal Feeds Industry). The installed slaughter capacity of these abattoirs ranges from 150 to 200 animals per day. Investment opportunities in the meat industry exist in the following areas; (i) Going into joint venture with National Ranching Company (NARCO) and other

privately owned ranches to modernize the existing ranches; (ii) To invest in the establishment of new ranches (cattle, sheep, goats) and

farms (poultry and piggery); (iii) Feed-lot/fattening programmes; and (iv) Slaughtering and processing.

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3.1 NARCO Ranches, Multiplication Units and Other by Products

3.1.1 NARCO Ranches The National Ranching Company (NARCO) owns a total of 519,453 hectares of land. Out of these, NARCO operates a total of 8 ranches located in 7 regions of mainland Tanzania (Figure 2), which together cover an area of 230,384 hectares with carrying capacity of 80,000 to 90,000 cattle. However, the area currently holds a total of 27,619 cattle, 1,665 sheep and 978 goats (MLFD, 2010). The rest of the area, which is 289,069 hectares, has been sub divided into 124 small ranches and subleased to Tanzanian investors. The production coefficients of NARCO ranches are relatively good compared to other commercial ranches in the Tropics. However, the ranches are expected perform to the standard which are Conception rate (85%), Calving rate (80 %), Mortality rate (5 %), Weaning rate (95 %) and off take rate (25%). There is a great potential for joint venture investment in main ranches and with individual operators. Also, investors are invited to participate in the construction and operation of Ruvu abattoir and its processing plant. The installed slaughter capacity of this abattoir is 800 cattle and 400 goats/sheep per day. Figure 2 NARCO RANCHES

Source: MLFD (2010)

3.1.2 Multiplication Units There are ample opportunities in investing in livestock multiplication to meet the increasing demand of the improved livestock (Cattle, goats, sheep and pigs,). Currently, production of the improved livestock concentrates on cattle where 10,000 dairy heifers are produced annually from small scale dairy producers and

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government owned farms. Currently, capacity of livestock multiplication under the government is estimated to 624 heifers annually. The national demand for these dairy heifers is about 50,000. This demand is higher than the supply, a situation which necessitates investment in the production of improved heifers to the tune of 40,000 heifers per year. There is an opportunity to establish privately owned livestock multiplication units in Tabora, Manyara, Tanga, Morogoro, Coast, Lindi, Rukwa na Kigoma where there is an ample land and favourable environment for livestock farming. These multiplication units were established for the purposes of producing quality crossbred livestock for distribution to smallholder farmers and other commercial farms. Steers and bulls from these units are a source of quality animals for fattening. The holding capacity of the five farms under government is about 20,000 heads of cattle (Mabuki - 6,000, Sao Hill -3,000, Nangaramo -4,000, Kitulo -3,500 and Ngerengere -3,500). 3.1.3 The Hides, Skins and Other by Products The Hides, Skins, Leather and other livestock by-products include blood, bones, horns, hooves, hair, wool, glands, intestines, stomachs, feathers and gut contents Industry in Tanzania is one of the important industry in the economy of the country. 4.0 POTENTIAL AREAS OF INVESTMENT

The main investment opportunities existing in the livestock industry are in the following areas; Production of various types of livestock including beef and dairy cattle, goats, sheep, pigs in partnership with NARCO ranches and with the already existing Livestock Multiplication Units together with establishment of new farms for the same. Areas of investment include meat and milk processing, value addition in livestock and other livestock products and by products such as hides and skins. Other areas include; construction and operation of new abattoirs and processing plants, establishment of breeder farms for poultry (grand parent stocks), establishment of commercial layers and broiler farms as well as establishment of broiler processing plants. Another very important area is the production of hay, compounded animal feeds and vaccines.

4.1 The National Ranching Company (NARCO)

The National Ranching Company (NARCO) owns a total of 519,453 hectares of land. These, NARCO operates a total of 8 ranches located in 7 regions of mainland Tanzania

4.1.1 Kongwa Ranch

Location and Size Kongwa Ranch is located 80 km east of Dodoma Municipality along Dar es Salaam-Dodoma Highway. The ranch lies between latitude 600' and 60 6' South and between longitudes 26022' and 36030' East. The ranch has 38,000 hectares.

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Climate

The climatic condition of Kongwa Ranch is typical of Savannah grassland with a unimodal rainfall pattern (November – April). It receives 240 – 600 mm of rainfall per year with temperatures ranging between 270C to 320C during the day and 100C to 180C during the night depending on the season of the year. The dominant soils are sandy, loamy, black cotton and in some areas there are well drained red soils. The dominant grass species include Rhodes grass, panicum, cenchrus and star grass species.

Livestock population

Currently, the ranch has 8,032 cattle, 118 sheep and 768 goats with capacity to hold 14,000 heads of cattle. However, with optimal management and feedlot conditions the ranch has a capacity to hold up to 100,000 heads of cattle. Infrastructures The ranch is fairly developed with some basic livestock related infrastructure which is vital for livestock production as shown in the Table 1 below: Table 1: Kongwa Ranch infrastructure

S.N Infrastructure Quantity S.N Infrastructure Quantity

1. • Ground water reservoir with capacity of 1.8 million litres

• Ground water reservoir with capacity of 1.2 million litres

2 1

9. Roads and fire breaks

20 km

2. Water reserve tanks 6 10. Office buildings 2 3. Cattle dip 13,000 litres

Cattle dip 15,500 litres 1 1

11. Abattoir (Mini) 1

4. Spray race 2,000 litres 1 12. Dispensary 1 5. Sheep/Goat sheds 2 13. Welfare house 1 6. Boreholes 12 14. School buildings 3 7. Church and Mosque 2 15. Residential

houses 67

8. Fencing 12 km Ranch performance

Under Tanzanian conditions the ranch production coefficients shown below are relatively good and comparable to other commercial ranches in the Tropics.

• Conception rate: 90 % • Calving rate: 85% • Mortality rate: 1.5% • Weaning rate: 75% • Off take rate: 25%

Existing potentials There is a suitable condition beef production including breeding and fattening of cattle, goats and sheep. These are:-

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♦ Presence of a nucleus herd of quality Boran cattle comprising 8.063 cattle, ♦ Grazing land of 38,000 hectares. ♦ Pasture availability throughout the year. ♦ The ranch is connected to the National Power Grid. ♦ Existing potential for wind and solar power generation; ♦ It is located within the livestock catchment area (Mpwapwa, Kongwa,

Chamwino, Bahi, Manyoni, Kiteto, Kondoa and Simanjiro Districts) for ease sourcing of immature cattle for fattening;

♦ It shares an established Brand name “Kongwa Beef” with other NARCO ranches.

♦ There are skilled employees with a wide practical experience in ranching; ♦ It is within the reach of National Livestock Research Institute and Veterinary

Investigation Centre; and ♦ The ranch has low livestock disease prevalence.

4.1.2 Mzeri Ranch

Location and Size Mzeri Ranch is located in Korogwe and Handeni Districts in Tanga Region. The ranch lies between latitude 60 30' and 60 45' South and between longitudes 380 30' and 380

45' East. It is 48 km South-west of Korogwe town off Dar es Salaam – Moshi Highway. The ranch has an area of 21,236 hectares. The dominant grass types are Panicum Maximum, Hyperenia Spps, Cenchrus spp., calopogonia spp and Sporobolus spp. Climate

The ranch is on a ridge that is gently undulating at 1,305 metres above sea level in the humid lowland ecological climatic zone. The land is flat with the Pangani River permanently flowing through. Soils are mostly red and deep stone free ferruginous. The ranch has a bimodal rainfall pattern with long rain season from March to May and the short rains in October and November. Rainfall is approximately 760 mm per annum with temperatures ranging between 180C to 320C depending on the season of the year.

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Livestock Population

Currently, the ranch has 3,400 Cattle, 200 Sheep and 349 Goats. Under improved ranching management system, it has a carrying capacity of 7,080 heads of cattle. However, under feedlot conditions, it can hold up to 60,000 heads of cattle. Infrastructures The ranch is fairly developed with some basic livestock related infrastructures shown in table 2 below which are important for beef production: Table 2: Mzeri Ranch infrastructures

No. Infrastructure Quantity No. Infrastructure Quantity

1 Charco/Dams 4 10 Spray race 3,000 litre

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2 Water troughs 10,000 litres

5 11 Roads and fire breaks

24 km

3 Water reserves tanks with the total capacity of 950,000 m3

10 12 Office building 1

6 Borehole pumps 8,000 to 10,000 per hour

1 13 Mini Butcher 1

7 Hay sheds 2 14 Garage 1 8 Water pipes 16 km 15 Dispensary 1 9 Welfare house 1 16 Residential

houses 20

Ranch Performance The ranch has livestock production coefficients shown below;

• Conception rate: 80% • Calving rate: 70% • Mortality rate: 2% • Weaning rate: 63% • Off take rate: 17%

Existing Potentials

♦ Mzeri ranch is accessible and close to Tanga City with port facilities for market and transportation;

♦ The ranch has 3,400 nucleus herd of quality Boran cattle; ♦ The ranch is connected to the National Power Grid; ♦ The ranch is within a livestock catchment area (Korogwe, Kilindi, Handeni,

Simanjiro, Same, Kiteto) for ease sourcing of immature cattle; ♦ Available domestic market (Mining centres, tourist hotels, supermarkets) and

export markets (Gulf countries, DRC, Rwanda, Burundi, Comoro and Uganda); ♦ Skilled and experienced human resource; ♦ It is within the reach of research and diagnostic facilities in Tanga (Tsetse and

Trypanosomosis Research Institute and National Livestock Research Centre); and

♦ The ranch has low livestock disease prevalence.

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4.1.3 Ruvu Ranch

Location and Size

Ruvu Ranch is situated in Coast Region in Bagamoyo District. It lies between latitude 60 30' and 60 45' South and between longitudes 38030' and 38045' East. Its location is about 70 km North-west of Dar es Salaam city along the Dar es Salaam – Morogoro Highway. The ranch has 43,000 hectares.

Climate The ranch has a bimodal rainfall with short rains from mid October to December and long rains from February to May. It receives between 800 – 1,200 mm of rainfall per year with temperatures ranging between 250C and 270C. Soils are mainly black cotton, sandy, sandy clay and loamy. Dominant grass types Sporobolus spp, Eragrotis superba and star grass Livestock Population Currently, the ranch has 3,762 cattle but its carrying capacity is up to 10,238 heads of cattle. However, under feedlot conditions the ranch can stock up to 120,000 heads of cattle.

Infrastructures The ranch has fairly developed infrastructures as shown in the table 3 below: Table 3: Ruvu Ranch infrastructures

No. Infrastructure Quantity No. Infrastructure Quantity

1 Charcos/Dams with the total storage capacity of 3,000,000 litres

4 10 Modern Butcher 1

2 Water troughs 3 11 Mini Abattoir 1 3 Water pipes 6 km 12 Dispensary 1 6 Spray race 2 13 Welfare house 1 7 Cattle dip 1 14 Primary School 1 8 Roads and fire breaks 20 km 15 Residential

houses 25

9 Office building 1 16

Ranch Performance

The ranch production coefficients are relatively good and comparable to commercial ranches in the Tropics.

• Conception rate: 80% • Calving rate: 70% • Mortality rate: 2% • Weaning rate: 75% • Off take rate: 17%

Existing Potentials

♦ Conditions suitable for breeding and fattening of cattle, goats and sheep;

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♦ It is accessible and close to Dar es Salaam City with airport and harbor facilities for market and transportation;

♦ The ranch is connected to the National Power Grid; ♦ Easily accessible along Dar es Salaam – Morogoro Highway and central railway

line; ♦ It is within a livestock catchment area (Bagamoyo, Morogoro, Handeni, Korogwe)

for ease sourcing of immature cattle; ♦ Available domestic market (mining centres, tourist hotels, supermarkets)

including the metropolitan Dar es Salaam and export markets (Gulf states, DRC, Rwanda, Burundi, Comoro and Uganda);

♦ There is ongoing construction of an export quality abattoir and a meat processing plant;

♦ Skilled and experienced human resource; ♦ It is within the reach of zoosanitary and diagnostic facilities in Dar es Salaam City

and Kibaha Town (Central Veterinary Laboratory and Kwala Zoosanitary Facility respectively); and

♦ The Ranch has low livestock disease prevalence.

4.1.4 Mkata Ranch

Location and Size Mkata Ranch is located 58 km from Morogoro Town off Morogoro-Iringa Highway. The ranch lies between latitude 100 14' and 100 19' South and between longitudes 380 53' and 38058' East. It has 19,446 hectares with holding capacity of 7,000 heads of cattle. However, under feedlotting the ranch can hold up to 35,000 heads of cattle.

Climate Mkata Ranch lies in the humid lowland ecological climatic zone at an elevation ranging from 400 – 460 meters above sea level. It lies within the area commonly known as Mkata Plain with Mkata River running across the ranch from North-east to South-west. It receives an average rainfall of about 731.4mm which is bimodal in pattern distributed between March – May (long rains) and from October to December (short rains). The land is dominated by black cotton and red laterite soils. The natural vegetation is mainly of woodland and wooded grassland. The latter comprises Themeda, Hyperrhenia, cenchrus, sporobolus and brachiaria spp. and Cymbopogon species. Woodland includes Acacia and Combretum species.

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Livestock Population

Currently, the ranch has no livestock but its carrying capacity is up to 7,000 heads of cattle. However, under feedlot conditions the ranch can stock up to 35,000 heads of cattle.

Infrastructures The ranch has fairly developed infrastructures as shown in the table 4 below: Table 4: Mkata Ranch infrastructures

No. Infrastructure Quantity No. Infrastructure Quantity

1 Charco/Dams 5 10 Workshop 1 2 Water troughs 6 11 Roads and fire breaks 100 km 3 Borehole 1 12 Office building 2 6 Water tank 1 13 Hostel 1 7 Spray race 3 14 Primary School 1 8 Water pipes 3.0 km 15 Health centre 1 9 Fence 50 acres 16 Residential houses 30

Ranch Performance

Production coefficients are as listed below:

• Conception rate: 80% • Calving rate: 71% • Mortality rate: 2 % • Weaning rate: 65% • Off take rate: 14%

Existing Potentials ♦ Proximity to Tanzania Pride Meat Abattoir in Mvomero District, Morogoro Region; ♦ Conditions suitable for breeding and fattening of cattle, goats and sheep; ♦ A nucleus herd of quality Boran cattle - 2,329 cattle; ♦ Available grazing land - 19,446 Ha; ♦ The ranch is connected to the National Power Grid; ♦ Lies along Dar es Salaam – Iringa Highway and central railway line; ♦ Is within a livestock catchment area (Kilosa, Mvomero, Morogoro Rural, Kongwa,

Bagamoyo and Kiteto) for ease sourcing of immature cattle; ♦ Available domestic market (tourist hotels, power stations, Mtibwa and Kilombero

Sugar Factories, Higher Learning Institutions, supermarkets) including Morogoro and the metropolitan Dar es Salaam and export markets (Gulf states, DRC, Rwanda, Burundi, Comoro and Uganda);

♦ It is within the reach of research and diagnostic facilities at Sokoine University of Agriculture in Morogoro;

♦ Access to sugar factories’ by-products for feedlotting; and ♦ The Ranch has low livestock disease prevalence.

4.1.5 Kikulula Ranching Complex

Location and Size

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Kikulula Ranching Complex is a consolidated business unit comprising three ranches (Kagoma, Kikulula and Mabale) as well as a Farmers’ Training Centre with a capacity of training an average of 60 livestock farmers annually. The ranch is located 80 km from Bukoba Town along Bukoba-Karagwe Road. It lies between latitude 20 42’ and 20 46’ South and longitude 310 17’ and 310 22’East. It has an area of 42,083 hectares.

Climate The ranch receives an average annual rainfall of about 800mm – 1,000mm with bimodal pattern between October – January (short rains) and March – May (long rains). Temperatures range from 150C to 280C. The soil ranges from reddish brown sandy to loamy of moderate fertility. The natural vegetation is mainly of Savannah type with a variety of grass such as Themeda triandra, Cenchurs ciliaris; Panicum, Brachiaria, and Setaria species.

Livestock Population

The ranch has 8,730 heads of cattle but its carrying capacity is up to 21,030 heads of cattle. However, under feedlotting, the ranch can hold up to 150,000 heads of cattle. In addition, the ranch produces 319 dairy heifers annually.

Infrastructures The ranch has fairly developed infrastructures as shown table 5 below:

Table 5: Kikulula Ranch infrastructures

No. Infrastructure Quantity No. Infrastructure Quantity

1 Charco/Dams 11 10 Workshop 1 2 Water troughs 3 11 Roads and fire breaks 300 km 3 Water tank 9 12 Office building 1 6 Spray race 1 13 Welfare house 1 7 Fence 13 km 14 Residential houses 27 8 Water pipes 15 Hostel 1 9 Cattle dip 3 16

Ranch Performance The ranch production coefficients are as shown below:

• Calving rate: 51% • Mortality rate: 2% • Weaning rate: 75% • Off take rate: 28%

Existing Potentials ♦ Suitable weather conditions for breeding and fattening of cattle, goats and sheep; ♦ It is within the reach of the abattoir which is under plan; ♦ A nucleus herd of quality Boran cattle; ♦ Available grazing land of good quality pasture; ♦ The ranch is connected to a reliable power supply; ♦ The ranch is within a livestock catchment area (Karagwe, Ngara, Missenyi, Muleba, Bukoba Rural, Biharamulo, Geita, Kasulu and Chato Districts) and

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neighbouring countries (Uganda, Burundi, and Rwanda) for ease sourcing of immature cattle;

♦ Available domestic markets in Mwanza, Kagera and Shinyanga regions (mining centres, tourist hotels, Kagera Sugar Factory and supermarkets) and export markets proximity to neighbouring Uganda, Rwanda, Burundi, Democratic Republic of Congo;

♦ Skilled and experienced human resources; ♦ It is within the reach of research and diagnostic facilities at Mabuki (Misungwi District) and Veterinary Investigation Centre (VIC) in Mwanza City;

♦ Access to Kagera Sugar Factory by-products for feedlotting; and ♦ The Ranch has low livestock disease prevalence.

4.1.6 Missenyi Ranch

Location and Size Missenyi Ranch is located 95 km west of Bukoba Town at the border with Uganda. It lies between latitude 20 42’ and 20 46’ South and longitude 310 17’ and 310 22’East. On the south it is adjacent to both Kagera Sugar Factory and Kagera River. The ranch has an area of 23,998 hectares.

Climate

The ranch has brownish, sandy and loamy soils supporting good quality grazing pastures. The dominant vegetation is savanna type with scattered bushes and trees to the southern part along the Kagera River. Major grass species include Cenchrius ciliaris, Themeda triandra; Seteria and Brachiaria species. Rainfall is bio-modal with on set in September to January and March to May. It ranges between 600mm – 900mm per annum with temperature ranging between 14˚C to 25˚C. Livestock Population

The ranch has 7,309 heads of cattle but its carrying capacity is up to 9,599. However, under feedlotting, the ranch can hold up to 68, 466 heads of cattle. Infrastructures

Missenyi ranch is fairly developed with some basic livestock and social infrastructures which are important for beef production and recreational services. The ranch has total of 15km internal roads, two concrete water tanks, cattle handling facilities which include one plunge dip, spray race, water troughs and six dams (Table 6). Table 6: Missenyi Ranch infrastructures

No. Infrastructure Quantity No. Infrastructure Quantity

1 Charco/Dams 6 8 Office building 1 2 Water troughs 1 9 Welfare house 1 3 Water tank 2 10 Residential houses 6 Spray race 2,200 litres 1 11 Hostel 1 7 Roads and fire breaks 15 km 12 Cattle dip 17,000 litres 1 Ranch Performance

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The ranch production coefficients are relatively good as shown below:

• Conception rate: 80% • Calving rate: 80% • Weaning rate: 70% • Mortality rate 2% • Off take rate: 29%

Existing Potentials

♦ The ranch is served by Kagera River which can be used for watering livestock and pasture development as well as for domestic use;

♦ Suitable weather conditions for breeding and fattening of cattle, goats and sheep;

♦ Proximity to the proposed Kyaka abattoir approximately 25Km from the ranch; ♦ A nucleus herd of quality Boran cattle; ♦ Available grazing land of good quality pasture; ♦ The ranch is connected to a reliable power supply; ♦ The ranch is within a livestock catchment area (Karagwe, Ngara, Missenyi,

Muleba, Bukoba Rural, Biharamulo, Geita, Kasulu and Chato Districts) and neighbouring countries (Uganda, Burundi, and Rwanda) for ease sourcing of immature cattle;

♦ Available domestic markets in Mwanza, Kagera and Shinyanga regions (mining centres, tourist hotels, Kagera Sugar Factory and supermarkets) and export markets proximity to neighbouring Uganda, Rwanda, Burundi, Democratic Republic of Congo;

♦ It is within the reach of research and diagnostic facilities at Mabuki (Misungwi District) and Veterinary Investigation Centre (VIC) in Mwanza City;

♦ Skilled and experienced human resource; ♦ Access to Kagera Sugar Factory by-products for feedlotting; and ♦ The Ranch has low livestock disease prevalence.

4.1.7 West Kilimanjaro

Location and Size West Kilimanjaro Ranch is located within an important wild life corridor linking Kilimanjaro National Park and Momela Game Sanctuary at a vicinity of Mount Kilimanjaro and Mount Meru. The ranch is located 70 kilometers North-west of Moshi Municipality off Moshi-Arusha Road. It lies between latitude 20 53’ and 30 7’ South and longitude 360 45’ and 360 58’East and covers an area of 19,910 ha.

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Climate

West Kilimanjaro Ranch is located in a dry and cold climate zone. The annual rainfall is 303 mm. The dry seasons extends for about six months from May to October. Despite of relative low annual average rainfall, the ranch lies within a comparatively productive area. This is due to the underlying fertility of the volcanic soils implied by the prevalence of grasses from the Cynodon genus. Livestock Population

Currently, the ranch has 967 cattle and 772 Sheep, with capacity to hold 8,000 heads of cattle. However, with optimal management and feedlot conditions the ranch has a capacity to hold up to 60,000 heads of cattle. Infrastructures

The ranch is fairly developed with some basic livestock related infrastructures which are important for meat production and social amenities as indicated in table 7 below: Table 7: West Kilimanjaro Ranch Infrastructures

No. Infrastructure Quantity No. Infrastructure Quantity

1 Roads and fire breaks 5 Borehole 1 2 Water troughs 2 6 Office building 1 3 Water reservoir 20,000 litres 1 7 Workshop 15 4 Dip Tanks operating one with

18,000 and 15,000 litres. The non operational 15,000 litres

3 Residential houses

Ranch Performance The ranch production coefficients are relatively good and comparable to commercial ranches in the Tropics as shown below:

• Conception rate: 80 % • Calving rate 90% • Weaning rate 75% • Mortality rate 2% • Off take rate 22%

Existing Potentials

♦ Climatic and weather conditions are suitable for beef and mutton production; ♦ The ranch is served by Ngarenanyuki River which flows permanently across the

ranch from north to south that can be used for watering and pasture development.

♦ The ranch is within the tsetse free zone with low livestock diseases prevalence, thus it can easily be turned into a disease free compartment;

♦ The ranch is within proximity to Kilimanjaro International Airport and is close to the Arusha Meat Company as well as Arusha City and Moshi Municipality;

♦ The ranch is within a livestock catchment area (Monduli, Longido, Hai and Simanjiro Districts) whereby immature cattle can easily be sourced for fattening;

♦ Skilled and experienced human resource.

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4.1.8 Kalambo Ranch

Location and Size

Kalambo Ranch is in Rukwa Region, located 45km South-west of Sumbawanga Municipality, close to the southern tip of Lake Tanganyika and the border with Zambia. It lies between latitude 290 56’ and 300 8’ South and longitude 600’ and 60 9’ and covering an area of 23,588 ha. Climate The ranch has flat grassland with pockets of undulating surfaces characterized by hills and escarpments to the far western side. There are some localized swamps in the western and south western sides. Soils are mainly sand loamy with some black cotton and clay soils to the east especially around the swamp. The dominant grass species include Themeda triandra, Exotheca aristida, Digitaria spp, Sporoborus spp with some Erogrotus spp. The ranch has one long rain season from November to May and dry season from June to October. Annual rainfall varies from 800mm to 1300mm depending largely on elevation and temperatures ranges from 20 ° C to 26 ° C. Livestock population

Currently, the ranch has 1,733 Cattle, 25 Sheep, 35 Goat, and 8 Horses. It has a carrying capacity of 8,730 heads of cattle. However, under optimal management and feedlot conditions, it can hold up to 80,000 heads of cattle.

Infrastructures Kalambo Ranch is fairly developed with some basic livestock infrastructures which are important for meat production and social amenities as indicated in table 8 below: Table 8: Kalambo Ranch infrastructures

N0. Infrastructure Quantity No. Infrastructure Quantity

1 Charco/Dam with the capacity of 200,000 liters

1 5 Primary school 1

2 Water troughs 12,000 litres 3 6 Pipe work 5 km 3 Water tank 1 7 Roads and fire breaks 4 Cattle Dip 17,000 litres 2 8 Dispensary 1 5 Residential houses 9

Ranch Performance

The ranch production coefficients are relatively good and comparable to commercial ranches in the Tropics as shown below:

• Conception rate: 65% • Calving rate: 80% • Weaning rate: 76% • Mortality rate: 2% • Off take rate: 38 %

Existing Potentials

♦ Climatic and weather conditions are suitable for beef production;

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♦ The ranch is served with numerous permanent water springs and rivers which provide water throughout the year for cattle, watering and pasture development;

♦ Market for livestock is readily available as the ranch is within proximity to Sumbawanga Agricultural and Animal Feeds Industry (SAAFI) with a modern abattoir;

♦ Available domestic markets in Mbeya, Rukwa and Katavi regions (mining centres, tourist hotels, cement and beer factories, supermarkets) and export markets proximity to neighboring Zambia, Malawi and Democratic Republic of Congo;

♦ Tanzania Zambia Railway line and the Mbalizi International Airport which is under construction in Mbeya Region providing gateway to other markets;

♦ Kalambo ranch is within a livestock catchment area (Sumbawanga, Nkasi, Chunya, Mpanda and Mbozi Districts) where immature cattle can easily be sourced for fattening; and

♦ Skilled and experienced human resource.

Proposed Investment Requirements

All ranches in the country are operating below their respective carrying capacities. Therefore, investment plans aim at increasing livestock population in each of the ranches in order to attain their maximum carrying capacities. This would entail purchase of quality breeder animals, purchase of immature animals for feedlotting, infrastructure development, pasture and water facility improvement.

4.1.9 Privately Owned Ranches

Out of 219,930 ha of NARCO ranches, 134 satellite ranches of 2000- 4000 ha each have been demarcated and privatized (Table 9). Only 35 of the satellite ranches with a stocking of 48,301 head of cattle and 7,182 head of goats and sheep are operational while 99 have not been developed so far. When fully developed and utilized, the combined capacity of NARCO and the satellite ranches is 183,700 cattle. Table 9: Privatization of Ranches under NARCO

No Name of Ranch

Total Area (Ha)

Area in Ha under No. of Satellite Ranches

Livestock under NARCO, Sept.

2010

Number of livestock under Satellite Ranches

Main Ranches

Satellite Ranches

Cattle Goats/Sheep

1 Mkata 62,530 19,446 43,084 11 0 3,210 873

2 Usangu 43,727 0 43,727 16 0 2,206 677

3 West Kilimanjaro

30,364 19,910 10,354 10 209 0 0

4 Uvinza 56,175 0 56,175 21 0 13,702 0

5 Mzeri 41,246 21,236 20,010 9 3,054 3,304 3,411

6 Kalambo 64,650 23,588 41,062 13 1,442 6,220 593

7 Misenyi 60,851 23,998 36,853 21 5,475 2,678 253

8 Kitengule 41,700 0 41,700 9 0 4,877 322

9 Kikulula Complex*

76,940 30,752 46,188 22 6,068 12,104 1,053

10 Kongwa 38,000 38,000 0 0 8,032 0 0

11 Ruvu 43,000 43,000 0 0 3,340 0 0

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12 Dakawa 49,981 0 49,981 2 0

Total 609,164 219,930 389,134 134 27,619 48,301 7,182

*Kikulula complex includ Kikulula, Mabale and Kagoma ranches Source: MLFD 4.2 Other Animal Production Resources

Sheep and Goats

Sheep and goats farming is one of the activities being done by livestock farmers in the rural areas of Tanzania. It is estimated that the country has 13.7 million goats and 3.6 million sheep (2009/2010) and about 30% of rural households in Tanzania are engaged in sheep and goats keeping. These animals adapt well in nearly all agro-ecological zones in the country and are raised mainly under traditional production system whit a limited number under commercial farming system. Sheep and goats available are mainly of indigenous types and are kept for meat production. Sheep types include, Red Maasai, Sukuma (East African Black Head), Pare and Gogo (Tanzania Long Tail) while Goats types include Maasai, Gogo, Newala, Ujiji and Sukuma. These types of sheep and goats are well adapted to the environment and perform well when raised under commercial system where management is good mainly in terms of feed, shelter, water and disease control. Sheep for wool production exist in some parts of the country mainly in the Southern Highlands (Iringa and Mbeya Regions) and West Kilimanjaro. They are in small numbers which were introduced into the country during the colonial period.

The demand for sheep and goats has been increasing over years for the domestic and export markets. It is estimated that between 2006 and 2008 about 11,880 sheep and goats have been exported. Currently the demand for sheep and goats meat for export is over 16 tons per week. However, about six tons are exported due to unavailability of quality sheep and goat. The areas for investment in sheep and goats include:

♦ Partnership with National Ranching Company in the production of goats, sheep; ♦ Establishment of large scale sheep and goats farm for meat production; ♦ Establishment of Dairy Goats Multiplication Unit; and ♦ Contract farming between export agents and goat and sheep farmers. Pig Production More than 90% of the 1.9 million pigs in Tanzania are kept by small-scale farmers mostly in Southern and Northern Highlands under traditional production system. In addition, pork demand is increasing in urban and peri-urban areas due to the increasing customer’s preference for its delicacy. However, the current production does not suffice the increasing demand for the domestic and export markets. Therefore, pigs production can be improved through proper husbandry practices, adequate support services, diseases control and appropriate slaughter and marketing infrastructure. Intensive pig production for commercial purposes is limited

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to very few farmers with a regular income, mainly to meet the high cost of concentrate feeds among other requirements. The breeds of pigs found in the country are crosses of large white, landrace, saddleback and Hampshire; while pure breeds are very few. These stocks have been circulating within the different farms in the country.

The areas for investment in pig industry include:

♦ Establishment of breeder’s farms ♦ Establishment of commercial farms ♦ Establishment of slaughter and processing plants.

Poultry production The poultry production system in Tanzania is of two type’s i.e. traditional and commercial production. The current production is estimated at 58.0 million chickens (indigenous 23.0 and commercial 35.0) and 1.2 million ducks. Poultry production has a lot of opportunities for the private sector investment. The Small and Medium Enterprises have managed to increase numbers of local chicken from 27 million in 2001 to 30 million in 2006 while the commercial stock increased from 20 million to 25 million. On average 5.5 million hatching eggs and 1 million Day old parent chicks are imported annually to produce a total of 25 million Day Old Chicks for commercial purposes. This figure is low compared to the current requirement of 60 million Day old chicks per year. Egg production has increased from 2.4 million in 2007/2008 to 2.9 billion in 2009/2010. The observed increase is due to sensitization on good poultry husbandry practices and use of thermo stable New Castle Disease vaccine. The per capita consumption of eggs has increased from 50 eggs to 75 eggs per person per year. The rising demand for day old chicks, meat and eggs calls for more investments. The hatcheries and their capacities are as indicated in table 10 below: Table 10: Hatcheries and Their Production Capacities in Selected Regions

No. Region Hatchery Capacity (No. of chicks for 3 Weeks)

1 Arusha Tanzania Poultry Farms 180,000 2. Dar Es Salaam Euro poultry 160,000

Interchick 260,000 Twiga hatcheries 120,000 Ideal Chiks 120,000

3 Coast Kibaha E.C 120,000 Ruvu KJT 30,000 Kiluvya Poultry Products 30,000 Mkuza Chicks 360,000

4. Kilimanjaro Kilacha 30,000 Kibo Hatcheries 60,000 5. Mbeya Songwe Hatcheries

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The areas for investment in poultry industry include:

♦ Establishment of breeders farms for grand and parent stock ♦ Establishment of commercial layers and broiler farms ♦ Establishment of broiler processing plants

4.3 Livestock Multiplication Units (LMUs)

The profile for each LMU is as follows:-

4.3.1 Mabuki LMU

The farm is located in Misungwi District along the Shinyanga –Mwanza Highway, about 62 km from Mwanza city. It can be accessed by road (900 km) from Dar es Salaam or by air via Mwanza. The farm lies between latitude 20 59’S and longitude 330 11’E and has a land area of 9,793 hectares capable of supporting about 6,000 Livestock Units. Currently, the farm has 2,684 cattle (mainly of Friesian, Boran and Tanzania Shorthorn Zebu crosses), 79 buffaloes and 70 goats. The farm is within sub-humid to semi arid agro-climatic zone and has a bimodal pattern of rainfall. The short rains (October – December) and long rains (February–May). The rainfall ranges between 700 mm – 800 mm, with a dry spell in January.

4.3.2 Sao Hill LMU

The farm is located in Iringa Region about 572 km from Dar es Salaam and it 13 km off Dar es Salaam – Mbeya Highway. The farm lies between longitude 350 20’’ East and Latitude 800 20’’ South at an altitude of 1,800 meters above sea level. It receives an average rainfall ranging from 800 - 1200 mm. The farm covers an area of 6,500 ha with a holding capacity of about 3,000 cattle. Currently, the farm has 1,759 cattle of Boran and Ayrshire breeds and their crosses.

4.3.3 Nangaramo LMU

The farm is located in Masasi District, Mtwara region about 630 km from Dar es Salaam and has land area of 6,175 ha capable of supporting 4,000 Livestock Units. The farm lies between latitude 11 S and longitude 38 E. The area is under coastal zone of humid to sub-humid climate, temperature ranging from 25 C -35 C. The area receives rainfall ranging from 350-1000mm per annum. Currently, the farm has 441 cattle of Boran, Ayrshire and their crosses.

4.3.4 Kitulo Dairy Farm

The farm is located in Makete District, Iringa Region 980 km from Dar es Salaam and 70 km from Mbeya City. The farm is at an altitude of 2,900 meters above sea level and receives an average rainfall of 1300 mm annually. Temperatures range from 5 0C to 17 0C. It has an area of 5,000 ha with a capacity of supporting 3,500 Livestock Units. Currently, the farm has 970 Friesian dairy cows.

4.3.5 Ngerengere LMU

The farm is located in Morogoro Region, 150 km from Dar es Salaam off Dar es Salaam-Morogoro Highway. The farm lies between longitude 920-930 South and Latitude 360-380 East and receives an average rainfall of 1200 mm annually. Temperatures range from 280C to 300C. It has an area of 4,562 ha with a holding

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capacity of 3,500 cattle. Currently, the farm has 574 Boran cows, Aryshire bulls and their crosses.

4.4 Leather Industry

The Hides, Skins and Leather Industry in Tanzania is one of the important industry in the economy of the country. Available statistics (2009) indicate that, the country has 19.2 million cattle, 13.7 million goats and 3.6 million sheep. With an off-take rate of 10-15% for cattle, 28% for goats and 29% for sheep the potential annual production of raw materials is estimated at 2.8 million hides, 3.8 million goat skins and 1.0 million sheep skins equivalent to 91.1 million square feet. On average, 56% of the total hides and 65% of the total skins produced are collected out of which only 30% are being processed. The remaining 70% of the hides and skins are exported in raw form and therefore, there is a need to invest in value addition industries such as tanning, footwear and leather goods.

4.4.1 Tanning

Tanzania has seven operating tanneries all of which are privately owned and are tanning to semi-processed leather (pickled and wet blue) for export and small quantities of finished leather for domestic consumption. At full capacity utilization, the seven tanneries can process only 39% of the existing production potential. This is a clear indication that, there is ample potential for further investment in the tanning sub-sector. The tanneries and their capacities are shown in Table 12 below: Table 11: Tanneries and Their Capacities

S.N Company Location Installed

capacity (Feet2)

Utilization

capacity (%)

1 Tanzania Leather Tanneries Ltd (East Hides Tannery Ltd)

Morogoro 10,000,000 87

2. Lake Trading Co. Ltd Kibaha 4,500,000 56.7 3. Afro Leather Industries DSM 4,000,000 82 4. Salex tanneries Ltd Arusha 4,000,000 54.7 5. Himo Tanneries and Planters Moshi 3,000,000 46.2 6 Moshi Leather Industries Moshi 10,000,000 82 7 JAET Ltd, Mwanza 375,000 100 Total capacity Source: MLFD (2010) Footwear and Leather Goods

Production of footwear and leather goods is dominated by micro enterprises and few small enterprises focusing on the domestic and to some extent, tourist markets. It is estimated that the current production of shoes is about 720,000 pairs per annum using mainly imported finished leather against the current consumption of 20 million pairs of shoes per year. There are prospects for further investment in the footwear

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and leather goods industry for domestic and export markets. The footwear, leather goods industries and their capacities is indicated in Table 2 below:-

Table 12: Footwear and Leather Goods Industries and Their Capacities

No. Name of

Establishment

Location Products/

services

Capacity (pairs or bags

/annum)

Installed Utilization

1. Noble Footwear and Accessories

D'salaam

footwear 52,000 -

2. J.A.E.(T) Ltd, Mwanza footwear and leather goods 39,000 39,000

3. Ok Plast Ltd D'salaam Footwear (sandals) 9,360 5,200 4. Peramiho Ltd Ruvuma Footwear (ladies 3,900 2,600 5. Italy Shoe D'salaam Footwear 52,000 39,000 6. DSM Training

Production Centre

D'salaam Footwear & Leather products 39,000 5,200

7. Twins Leather Products

Moshi Leather products (bags) 2,600 2,600

8. Morogoro Training Production Centre

Morogoro Footwear & Leather products 26,000 2,600

9. Shah Industries Ltd

Moshi leather goods (bags) 13,000 7,800

Source: MLFD

Tanzania has a number of national investors in leather industry. Some of these are seeking for joint venture arrangements in leather processing, foot wear and leather goods manufacturing. Their contacts are provided in table 14 below: Table 13: Leather industry Investors and their Contacts

No. Company Current Occupation

Area of investment

Location Email address

1. Jaet (T) ltd Foot wear and Leather goods Manufacture

Leather processing, Footwear and leather goods

Mwanza Jaetltd1@yahoo.com

2. Covenant Exporter of hides and skins

Leather processing

Mwanza cic_tz@yahoo.com

3. Lake Trading

Tanning of hides and skins

Foot wear and Leather goods

Kibaha latco@yahoo.com

4. Himo Taaners

Tanning of hides and skins

Leather processing and manufacturer of goods

Moshi himotenneriesandplantersltd@yahoo.com

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5. Salex Tannery

Tanning of hides and skins

Expansion up to finishing

Arusha salimally@yahoo.com

6. Kirobe Investment

Exporter of hides and skins

Leather Processing

Dodoma kirobeinvestments@gmail.com

4.5 Other Livestock By-products

An average daily cattle slaughter ranges between 70 – 120 heads which are being slaughtered in Municipal and City abattoirs despite those slaughtered in the rural areas. This number confirms the availability of large quantity of livestock by-products produced daily to attract investment. Currently, Tanzania is lacking industries for processing these by-products. In this regard investors are encouraged to invest in this area either in partnership arrangement or as a sole proprietor. These by-products have various uses which are of economic importance as shown in Table 15 below: Table 14: Major livestock by-products and their uses

S/N Name of By Product Uses

1. Blood • Liquid blood: used as a source of pharmaceuticals as albumin for the glue, textile and dye industries

• Dried blood: used as blood flour, blood meal for animal feed and as fertilizer.

2. Bones • Used as animal feed, fertilizer, manufacture of combs, buttons cutlery handlers, glue, gelatin, tallow and ornaments.

3. Hoofs and Horns • Used as meal, fertilizer, gelatin and glue, manufacture of combs, buttons, hairpins and articles of tourists attraction including souvenirs

4. Hair and Wool • Used in the manufacture of brushes, yarn, fabrics and fibers

5. Glands and Organs • Used for pharmaceuticals 6. Intestines • Used to make sausage casings, musical

instruments/strings and surgical ligatures 7. Stomachs, Other offal,

Condemned Meat • Used to make tallow for soap and glycerin, lubricants, grease and waxes.

8. Gut Contents, Manure • Used to make compost, biogas as fuel for heating and lighting.

Source: MLFD, 2010

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4.6 Animal Feeds

Animal feed are important inputs in livestock production which counts more than 70% of the production costs. The main types of animal feed resources available in Tanzania are pastures, fodder crops, crop residues and compounded feeds. However, ruminants in the country depends on natural pastures for about hundred percent. The area for grazing and pasture production is dwindling due increased land requirement for crop production and climatic change, this has lead to a seriously shortage of the pastures during dry season and conflicts between livestock and crop farmers. In observance of this the government decided to demarcate land area specifically for livestock grazing and pasture production. Land demarcated for pasture development for livestock is about 1,890,419.19 ha in 17 regions of Tanzania Main Land. Potential areas for investing for pasture production are southern, central, lake and western zones. Pasture and Fodder Crops

There a number of investments in pastures and fodder production in the country, currently production is in the tune of 303,000 bales of hay (2010) while the demand exceeds 1,000,000 bales per year. However, mostly ruminant production in the country depends on natural pastures and crop residues and little supplementation for the case of dairy animals. Improved pasture seed production to a greater part is government farms, these are Vikuge and Langwira farm with production capacity of about 40 tons of seeds is produced annually. Improvement in areas of pasture production and conservation for dry season feeding will improve livestock productivity. There is need therefore, for investing in pasture and pasture seed production and conservation. Existing Potentials

♦ Arable land suitable for pasture production; ♦ High demand for pasture and pasture seeds; ♦ Large livestock herd; ♦ Skilled and experienced human resource in rangeland management; ♦ Diverse, favourable climate of different agro-ecological zones which can support

a wide range pasture production; and ♦ Existence of Government pasture farms (Vikuge-Pwani and Langwira-Mbeya)

which are producing about 40 tones of improved pasture seeds per annum. Compounded Animal Feeds

Compounded feedstuffs production is estimated at 800,000 tons per annum while the potential demand stands at 2.5 million tons. There are about 57 animal feed mills/plants in the country which are not operating to their optimal capacity and most of them are located in Dar es Salaam, Coast, Arusha and Mwanza regions. The following is a table of animal feeds plants and their production capacity in correlation with the production per day:-

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Table 15: Animal feed plants Production in Tanzania

No Region Name of animal feed plant

Type of animal feed(s) produced

District Production (Tons/day)

capacity Production

1 Arusha Kijenge Animal Product Ltd

Poultry, pig, dairy and hose feeds

Arusha

Fammy Poultry Poultry feeds Arusha HAFVET Products Poultry , pig and

dairy feeds Arusha

WAPO animal feeds Product

Poultry feeds Arusha

Ilboru Animal feed Poultry and dairy feeds

Arusha

Nanenane Animal feed

Poultry and dairy feeds

Arusha

Dhariwal Trading company

Poultry and dairy feeds

Arusha

2 DSM Interchick Co Poultry feeds Kinondoni 66 20

Tausi Animal feeds Poultry and dairy feeds

Kinondoni 40 16

Hill Animal Feeds Poultry and dairy feeds

Kinondoni 24 15

Igo Animal Feeds Poultry and dairy feeds

Kinondoni 50 20

Lengesia Animal Feeds

Poultry and dairy feeds

Kinondoni 10 3

Rimayi Animal feeds

Poultry and dairy feeds

Kinondoni 15 5

Jadide Animal Feeds

Poultry and dairy feeds

Kinondoni 15 5

Mfugaji Animal feeds

Poultry and dairy feeds

Kinondoni

Fide Animal feeds Poultry and dairy feeds

Kinondoni 30 15

Kimara Animal feeds

Poultry and dairy feeds

Kinondoni 16 5

A - Z Animal feeds

Poultry and dairy feeds

Kinondoni 40 20

Mkombozi Poultry feeds Ilala 5 Barkhesa Wheat meal,

Wheat bran, Bone meal, Fish meal

Ilala 65

Moselmach Tanzania Ltd

Poultry feeds Ilala 10 2

Farmers Center Poultry and dog feeds

Ilala 15 3

Tanzania Breweries

Poultry feeds Ilala 3

Multivet Poultry feeds Ilala 5 B A F Poultry feeds Ilala 80 20 Farmbase Poultry and dog

feeds Ilala 20

Benfeed Poultry feeds Ilala 25

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Furahisha Co. LTD Poultry feeds Ilala 30 Twiga Feeds Poultry , pig and

dairy feeds Temeke 25 10

Best Chicken Feed Vyakula vya kuku Temeke ?

FALCON Poultry and dairy feeds

Temeke 50 10

Ideal Chicks Poultry feeds Temeke Amadori Poultry feeds Temeke 20 8

Nassad Feeds Poultry feeds Ilala 40 15 3 K’njaro

M6 Milleniuam animal feeds

Poultry and dairy feeds

Hai 2

Machame animal feeds

Dairy feeds Hai

Harsho animal feeds plant

Poultry, pig and dairy feeds

Moshi (M) 5 3

Union store animal feeds plant

Poultry, pig and dairy feeds

Moshi (M) 8 2

Josho plant - Moshi (M) 3 1/2 Shengana mineral lick plant

- Same

4 Mbeya Kaijunga Poultry feeds -

Omary Poultry feeds - Taraja Agrovet Poultry feeds -

5 Morogoro International TanFeeds LTD

Poultry, dairy, and pig feeds

Morogoro (M)

Donfeed Poultry and pig feeds

Morogoro (M)

Chesterfeed Poultry, pig, dairy and dog feeds

Morogoro (M)

6 Mwanza Misenani Agriservice

Poultry feeds Ilemela

Posho Mill Fish meal - Ghana feed Centre Poultry feeds Elly Mushi Aninmal feed processors

Poultry feeds Nyamagana

Vess Posho mill Poultry feeds - Ndokeji fish and Posho mill

Fish meal -

Kaita fish meal Fish meal - Itale Mbisu fish meal

Fish meal -

7 Pwani Pantoni Animal Feed

Poultry feeds Kibaha

JKT Animal Feed Poultry feeds Kibaha Mang’ana Agrovet Poultry feeds Kibaha Vitia Farm Poultry feeds Kibaha Kongowe Feed and Millers

Poultry feeds Mkuranga

8 Shinyanga

Kaijunga Poultry feeds -

Omari Poultry feeds - Taraja Agrovet Poultry feeds -

9 Singida VETA Singida Poultry and dairy feeds

Singida

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Existing Potentials

♦ Skilled and experienced human resource in animal feed production; ♦ Availability of feed ingredients: main ingredients are cereals and their by-

products, seed cakes (sunflower, cotton), fish meal, limestone, bone meal, blood meal are aboundantly found in the country easily;

♦ High demand for compounded animal feeds for the emerging commercial livestock production;

♦ Potential for own cereal and soya beans production; ♦ Minimal imposed tax for packing bags; and ♦ Available land for building factories/industries.

4.7 Central Veterinary Laboratory

The Central Veterinary Laboratory (CVL) is located along Mandela Road in Temeke Municipal in Dar es Salaam City. The mandate of CVL is to conduct animal diseases research, diagnosis and production of biologicals. Livestock diseases especially the trans-boundary animal disease (TAD) are the major constraints to international livestock trade. In this regard, the vaccine production unit has been established for producing vaccines that are useful under local conditions. Currently, the unit is producing Thermo-stable Newcastle, anthrax, black quarter and brucellosis vaccines. The current production and demand for these vaccines in the country is as shown in the table below:- Table 16: Production and Demand for Vaccines in the Country

Vaccine Type Current Production (Doses) Estimated Demand (Doses) Newcastle Disease 20,000,000 180,000,000 Anthrax 500,000 26,500,000 Black Quarter 500,000 26,500,000 Brucellosis (S 19) 50,000 13,000,000

Source: MLFD 2010 The production of brucellosis vaccine is still low, about 50,000 doses per year because it is still undergoing laboratory testing. Given the above statistics, there is room for investment in vaccines production to meet the increasing demand in the domestic and the export markets, especially in the neighbouring countries of Eastern and Southern Africa. Existing potentials

♦ Skilled and experienced human resource in research and diseases diagnosis; ♦ Modern building and equipment for diagnosing viral diseases such as Avian Influenza, Rift Valley Fever, Rabies and Foot and Mouth Disease;

♦ Increasing demand for vaccines for domestic (large number of livestock i. e. 30 million free-range chickens, 19.2 million cattle, 13.7 million goats and 3.6 million sheep) and regional markets; and

♦ Established diagnostic methods which, among others, include: competitive Enzyme Linked Immunosorbent Assay (ELISA), the Agar Gel Immuno Diffusion

29

(AGID), DNA based technique i.e real time Reverse Transcriptase Polymerase Chain Reaction (RT-PCR).

Areas for investments

♦ Construct and equip the new vaccines production unit in Kibaha; and ♦ To develop new vaccines and expand production of the existing ones 4.8 Livestock Products, Abattoirs & Meat Processing Plants Abattoirs & Meat Processing Plants The Government in collaboration with private sector has initiated the establishment of Arusha, Dodoma, Morogoro and Sumbawanga abattoirs. The slaughter capacity of each of these abattoirs, range between 150 to 200 animals per day and therefore unable to meet the demand of processed meat for both domestic and export markets. The estimated domestic demand for meat is 449,673 tonnes tones per year, while there is also an increasing demand for the export markets to UAE, Kuwait, and Oman. In this respect, investment in the abattoirs and meat processing plants exist in three categories namely: (i) Joint venture with the existing abattoirs; (ii) Outright purchase of semi-finished abattoirs; and (iii) Construction and operation of new abattoirs and processing plants.

Joint Venture Opportunities with the Existing Abattoirs

(i) Ruvu Abattoir

The Ruvu abattoir is located about 70 km North-west of Dar es Salaam City along Dar es Salaam – Morogoro Highway. This abattoir is under the National Ranching Company (NARCO). In addition, the abattoir is in the neighbourhood of Ruvu Ranch and Kwala holding ground. The establishment has an area of about 2,000 ha which can be used for feedlotting program and further expansion. It has an installed capacity to slaughter 800 cattle and 400 sheep and/or goats per two 8-hour shift. Water availability and electrical connectivity for abattoir operations are assured from nearby national sources. The abattoir livestock catchment areas include; Ruvu Ranch, Pugu Livestock Market, Bagamoyo, Morogoro, Dodoma, Handeni and Korogwe. The markets for beef and mutton from Ruvu Abattoir include domestic market (mining centres, tourist hotels, supermarkets, metropolitan Dar es Salaam) and export market (Gulf countries, DRC, Rwanda, Burundi, Comoro, Zambia and Uganda). (ii) The Dodoma Abattoir: Dodoma abattoir is located in Dodoma Municipality; along the Dodoma - Singida Highway, occupying an area of 11 ha. The abattoir is jointly owned by National Investment Company (NICO) and NARCO and is in operation. The abattoir is semi-automated with an installed capacity to slaughter 200 cattle and 200 sheep and/or goats per two 8-hour shift. It is supplied with power from the National grid and water from own borehole with capacity to yield 55m3/hr. Efforts are being made to

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also connect the abattoir to the Municipal water supply system. Slaughter animals are sourced from within the Central and Lake Zone catchment areas of Dodoma, Singida, Tabora and Shinyanga regions. The products from the abattoir are marketed within Dodoma, mining areas, Dar es Salaam City and exported mainly to Gulf countries and DRC. However, the abattoir does not have a meat processing unit which is vital for further tapping of both the domestic and export markets, thus, investment opportunities exist in establishing a meat processing plant and fattening unit. Outright purchase of semi-finished abattoir The Mbeya Plant:

This is a semi finished abattoir (construction is completed and not yet equipped) located at Mbalizi suburb in Mbeya City along the Mbeya - Tunduma Highway. The establishment occupies a title deed area of 102 ha. Important utilities such as water, electricity and telephone services are readily available at establishment and in the neighbourhood. At full capacity, the abattoir is designed to slaughter 20 - 25 cattle per hour (200 heads of cattle per 8 hour shift). The abattoir potential livestock catchment areas include; Iringa, Mbeya and Rukwa regions. Potential market for products from the plant include; Mbeya city, Iringa and neighbouring countries such as Malawi, Zambia and DRC. Construction and operation of new abattoirs and/or processing plants (i) Kyaka Kyaka has an area of about 700 ha potential for establishment of abattoir and/or processing plant. The area is located between Latitude 10 51’ South and Longitude 310 25’ East, in Missenyi District, Kagera Region. It is about 58 kilometres from Bukoba town, along Bukoba – Kyaka highway and it is close to important livestock market infrastructures such as; livestock markets, holding grounds and stock routes. It is also located within potential livestock catchment areas of Karagwe, Ngara, Muleba, Bukoba Rural, Biharamulo, Chato Districts and neighbouring countries (Uganda, Burundi and Rwanda). Important utilities including water and electricity are readily available particularly in the neighbouring areas. Potential markets for the products from the abattoir and/ or processing plant include; Kagera, Geita, Mwanza, Simiyu and Shinyanga regions and neighbouring countries like Uganda, Rwanda, Burundi, and Democratic Republic of Congo. (ii) Bunda

Bunda has an area of about 200 ha potential for establishment of abattoir and/or processing plant. The area is located between Latitude 20 3’ South and Longitude 330 52’ East in Bunda District, Mara Region about 80 km from Musoma town along Mwanza – Sirari Highway and it is close to important livestock market infrastructures such as livestock markets, holding grounds and stock routes. It is also located within potential livestock catchment areas of Bunda, Serengeti, Tarime, Musoma Rural, Magu and Kwimba Districts. The area enjoys a reliable supply of electricity from the National Grid and can access water from Lake Victoria.

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Potential markets for the products from the abattoir and/ or processing plant include; Mara, Mwanza and Shinyanga regions and neighbouring countries of Kenya, Uganda, Rwanda, Burundi, and Democratic Republic of Congo. (iii) Themi Themi has an area of about 200 ha potential for establishment of abattoir and/or processing plant. The area is located between Latitude 30 33’ South and Longitude 360 46’, in Arusha City and it is also located within the livestock catchment areas of Meru, Longido, Monduli, Kiteto, Hanang, Mbulu, Karatu, Ngorongoro and Simanjiro districts. Important utilities including water and electricity are readily available particularly in the neighbouring areas. Potential markets for the products from the abattoir and/ or processing plant include; Arusha, Babati and Moshi and export markets in Kenya, Uganda and Gulf States. 4.9 The Dairy Industry The dairy industry has a great potential for investment through production, processing and marketing of milk and milk products. Currently, there are about 600,000 dairy cattle mainly crosses of Friesian, Jersey, and Ayrshire breeds with the Tanzania Shorthorn Zebu (TSZ) which are kept commercially. Annual milk production is estimated at 1.65 billion litres, of which 70% comes from the traditional sector, while the remaining 30% comes from commercial sector. Currently, per capita milk consumption in the country is estimated at 41 litres. This consumption level is relatively low compared to the 200 litres recommended by FAO. Low consumption rate of milk in the country, among others, is attributed to low milk production, processing and distribution capacities. This calls for more investment in the industry to meet the increasing demand. Dairy goat farming is gaining popularity all over the country and it is one of the tools for addressing nutrition insecurity and income among the rural population. It has also become an alternative source of milk to households that cannot afford to keep large dairy animals either due to low purchasing power or lack of land to accommodate large animals. It is estimated that presently there are about 40,000 dairy goats in Tanzania. Dairy goats’ breeds available in Tanzania include Toggenburg, Saanen, Anglo-Nubian, Alpine, Norwegian, Mallya goat and their crosses. The demand of dairy goats is far higher than the supply. Most of the dairy goats have been introduced in the country by NGO’s such as Heifer International Tanzania (HIT) and FARM AFRICA and institutions such as The Sokoine University of Agriculture (SUA) and some of religious institutions such as Roman Catholic and Anglican. These are not enough to meet the current demand. Production of dairy goats within the country is needed.

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The general situation with the milk processing industry is as following; Table 17: Milk Processing Plants, Installed and Current Utilization Capacities

S/N Region Processing Plants Installed capacity/

day

Current processing

Capacity

Percentage utilization

1 Arusha Brookside (T) (not operating)

45,000 0 0

International Dairy Products

5,000 3,000 60

Mountain Green Dairy

1,500 500 33

Arusha Dairy Company

5,000 2,400 48

KiJIMO Dairy Cooperative

1,000 300 30

2. Dar es Salaam

Azam Dairy 3,000 2,000 67 Tommy Dairy (not operating)

15,000 0 0

Tan Dairies 15,000 6,000 40 3. Tanga Tanga Fresh ltd 40,000 30,000 75

Ammy Brothers ltd (not operating)

2,000 500 25

4. Manyara Longido (Engitong) 500 300 60 Terrat (Engiteng) 500 250 50 Orkesumet (Engiteng)

500 400 80

Naberera (Engiteng) 1,000 450 45 5. Kilimanjaro Nronga Women 3,500 930 27

West Kilimanjaro 1,000 300 30 Mboreni Women 1,000 300 30 Marukeni 1,000 450 45 Ng’uni Women 1,000 350 35 Kalali Women 1,000 550 55 Same (Engiteng) 500 300 60 Fukeni mini Dairies 3,000 800 27 Kondiki Small Scale Dairies

1,200

600 50

6. Mara Musoma Dairy 120,000 30,000 25 Utegi Plant (Ex TDL) (not operating)

45,000 0 0

Makilagi SSDU 1,500 1,000 67 Baraki Sisters 3,000 2,100 70 Mara Milk 15,000 6,000 40

7. Mwanza Mwanza mini Dairy 3,000 1,000 33 8. Kagera Kagera Milk

(KADEFA) 3,000 400 13

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Kyaka Milk Plnt 1,000 450 45 Del Food 1,000 300 30 Bukoba Market Milk Bar

500 300 60

Bukoba Milk Bar-Soko Kuu

500 300 60

Mutungi Milk Bar 800 180 23 Salari Milk Bar 800 170 21 Kashai Milk Bar 800 200 25 Kikuklula Milk Processing Plant

1,000 500 50

Kayanga Milk Processing Plant

1,000 300 30

MUVIWANYA 1,000 350 35 9. Morogoro SUA 3,000 200 7

Shambani Graduates 4,000 750 19 10. Tabora New Tabora Dairies 16,000 200 1 11. Iringa ASAS Dairy 12,000 6,000 50

Cefa Njombe Milk Factory

10,000 2,700 27

12. Mbeya Mbeya Maziwa 1,000 500 50 Vwawa Dairy Cooperative Society

900 600 67

13. Dodoma Gondi Foods 600 200 33 TOTAL 394,600 105,380 27

Source: MLFD, 2010 Efforts to increase milk production, Utegi Plant have concentrated mainly in improving the indigenous cattle through crossbreeding. In tandem, investment in establishment of medium and large scale dairy farms, livestock multiplication, milk collection, processing, packaging and marketing. Small scale milk processing has emerged in Tanzania since 1990’s as a result of Government’s effort to promote small holder dairy production. Since then milk processing activities have been increasing as an effort to utilize the surplus milk produced in these areas. Surplus milk also exists in the traditional sector of which much of it is wasted because of lack of processing plants. Milk processing is carried out in medium and small scale milk processing plants. Currently, the total (installed) milk processing capacity is about 384,100 litres per day for all milk processing plants located in various places in the country (Figure 1). However, most of these processing plants are operating at less than 23% of the installed capacity. In total, current milk processing is at 88,940 litres/day (Table 18). Reasons for this low performance include inadequate raw milk production (due to seasonal fluctuations, milk being produced in small quantities in a widely scattered remote areas) which increases milk collection and transportation costs. In addition, low milk processing capacities is associated with high cost of milk processing in terms of equipment, machinery, packaging materials and utilities.

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Therefore the major challenge is to increase investment in the production, collection, processing, distribution and marketing of the processed milk. Table 18: Milk Processing Plants

S/N. Region Name Status Processing Capacity

(litres/day)

Current Processing

Potential (litres/day)

Capacity in Use

(%)

1 Arusha Brookside (T) Ltd

Working 45,000 2,500 6

International Dairy Products

Working 5,000 3,000 60

Mountain Green Dairy

Working 1,500 500 33

Kijimo Dairy Cooperative

Working 1,000 300 30

Longido Women Dairy Cooperative

Working 1,000 300 30

Arusha Dairy Company

Working 5,000 500 10

2 Dar es Salaam

Azam Dairy Working 3,000 2,000 67

Tommy Dairy Not Working

15,000 0 0

Tan Dairies Working 15,000 6,000 40

Royal Dairy Ltd Not Working

0 0 0

3 Dodoma Gondi Foods Working 600 200 33 4 Iringa ASAS Dairy Working 12,000 6,000 50

CEFA Njombe Milk Factory

Working 10,000 2,000 20

5 Kilima-njaro

Nronga Women Working 3,500 1250 36

West Kilimamnjaro

Working 1,000 300 30

Mboreni Women

Working 1,000 300 30

Marukeni Working 1,000 450 45 Ng'uni Women Working 1,000 350 35 Kalali Women Working 1,000 440 44

Fukeni Mini Dairies

Working 3,000 1,000 33

Kondiki Small Scale Dairy

Working 1,200 600 50

6 Kagera

Kagera Milk (KADEFA)

Working 3,000 400 13

Kyaka Milk Plant Working 1,000 450 45 Del Food Working 1,000 300 30 Bukoba Market Milk Bar

Working 500 300 60

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S/N. Region Name Status Processing Capacity

(litres/day)

Current Processing

Potential (litres/day)

Capacity in Use

(%)

Bukoba Milk Bar - Soko Kuu

Working 500 300 60

Mutungi Milk Bar

Working 800 180 23

Salari Milk Bar Working 800 170 21 Kashai Milk Bar Working 800 200 25

Kikulula Milk Processing Plant

Working 1,000 500 50

MUVIWANYA Working 1,000 350 35

7 Mara New Musoma Dairy

Working 120,000 20,000 17

Utegi Plant (Ex TDL )

Working 45,000 0 0

Makilagi SSDU Working 1,500 1000 67

Baraki Sisters Working 3,000 2,100 70

Mara Milk Working 15,000 6,000 40

8 Mbeya Mbeya Maziwa Working 1,000 1,000 100

Vwawa Dairy Cooperative Society

Working 900 600 67

9 Morogoro SUA Working 3,000 200 7 Shambani Graduates

Working 1500 700 47

10 Mwanza Mwanza Mini Dairy (Sengerema)

Working 3,000 500 17

Lake Side Working 5,000 0 0

11 Tabora New Tabora Dairies

Working 16,000 200 1

12

Tanga Tanga Fresh Working 30,000 25,000 83 Ammy Brothers Working 2,000 500 25 Morani Not

Working 0 0 0

Total 384,100 88,940 23

Potential areas for investment within the dairy industry include: ♦ Establishments of dairy farms in order to increase milk production, ♦ Establishment of Milk collection centres ♦ Construction of Milk Processing plants, ♦ Manufacturing of dairy equipment and packaging materials. Establishment of Milk collection centres

Currently, more than 90% of milk is uncollected due to lack of collection centres. The decision of where to establish milk collection centre will depend on the amount

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of surplus milk produced and also availability of power supply, road network and transport facilities. Therefore in order to utilize this potentiality, establishment of a well coordinated milk collection network could be a kick start towards successful milk processing business. Establishment of Milk Processing Plants Currently, only 1.6% of the milk produced is being processed. Establishment of processing plants is required in order to exploit the remaining amount of milk. The size of the plant to be established will depend on the availability of surplus milk. Other key determinants of establishing milk processing factory include processing level (scale), land, building, milk processing equipment/machines, packaging material, handling, storage, distribution and other utilities. Potential areas for establishing milk processing plants are as indicated below.

Milk collection and processing initiatives are called for in the following potential milk producing areas; ♦ Central Corridor (Morogoro, Dodoma, Singida, Manyara, Tabora and

Shinyanga) � The zone produces about 516 million litres of milk per annum which is about

30% of the national milk production, � Current installed milk processing capacity is 21,100 litres per day whereas

operating capacity is 1,500 litres per day, � Booming of mining activities in this area (especially Shinyanga) has created

potential market for dairy products, � Central highway (road) has been improved to tarmac level,

♦ Northern zone (Tanga, Arusha and Kilimanjaro)

� Has milk production estimated at 184 million litres per annum which is about 12% of the national milk production,

� Has installed milk processing capacity of 103,200 litres/day whereby currently processing is at 37,290 litres/day,

� Good climatic condition (temperate sort of climate) which is favourable condition for improved dairy cattle,

� Largest tourist corridor in the country, hence existence of potential market for dairy products such as cheese,

� Good to invest because of relatively higher dairy cattle (hence, availability of milk) and target for niche tourist market especially for cheese.

♦ Southern Highlands (Mbeya, Iringa, Ruvuma and Rukwa)

� Milk production is estimated at 178 million litres per annum which is about 13% of the national milk production,

� Current installed milk processing capacity 33,000 litres per day whereas operating capacity is 9,600 litre/day,

� No medium and large milk processing plant to absorb milk produced, � Good climatic condition (temperate sort of climate) which is favourable

condition for improved dairy cattle,

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♦ Eastern zone (Dar es Salaam and Coast) � Milk production is estimated at 10 million litres per annum which is about

0.7% of the national milk production, � Current installed milk processing capacity is 33,000 litres per day whereas

operating capacity is 8,000 litre/day,

♦ Lake zone (Kagera, Mwanza and Mara) � It is the highest milk producing area with an estimate of 327 million litres

per annum which is about 23% of the national milk production, � Current installed milk processing capacity is 202,900 litres per day whereas

operating capacity is 9,600 litre/day, 5.0 CONCLUSION

There are ample potential investment and trade opportunities in the livestock industry in Tanzania. The Government has taken initiatives in facilitating investment undertakings in various sectors of the economy. Conducive investment policies and regulatory frameworks are in place. The investment policy encourages private investors to proactively get engaged either individually, through joint ventures and through Public-Private Partnership (PPP) in order to capture available opportunities or through joint ventures in order to capture available opportunities. Private investment is likely to provide a vibrant livestock export trade and the Government is committed in facilitate those initiatives.

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Boran in NARCO Ranches Prepared by: Ministry of Livestock and Fisheries Development, P.O. Box 9152, Dar es Salaam, Telephone +255 22 22861910, Fax 255 22 22861908, E-mail: ps@mifugo.go.tz. Website: http://www.mifugo.go.tz