TRANSFORMATION, JOB CREATION AND POVERTY

ERADICATION

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 19th ANNUAL RESEARCH WORKSHOP

Ledger Plaza Bahari Beach Hotel Dar es Salaam, Tanzania

April 09-10, 2014

By 

Dr. Parseko Kone

Introduction

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1. Agriculture transformation in Singida

2. Success Factors

3. The importance of informal enterprise in Capital Accumulation

4. Important factors in moving up the value chain

5. Contribution of Cooperatives as towards enterprise transformation, job creation and Poverty eradication

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1. Agriculture and Rural Transformation

A; Crop Subsector

B; Livestock Subsector

Increase in production of Cash and Food Crops;

A; Crop Subsector Transformation

Year Percentage increase

2009/2010 2012/2013

Food crops 442,180 859,544 94

Cash crops 164,673 292,029 77Total 606,853 1,151,573 90

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CropTotal Production

2009/2010 (Tones)Total production

2012/2013 (Tones)Percentage

increase

Sorghum 159,083 192,784 21

Finger Millet 90,576 128,957 42

Paddy 3,438 15,827 360

Sweet potatoes 44,707 123,976 177

Sunflower 107,263 202,803 89

Onion 15,525 38,378 147

Increase in the production trend of Selected priority food and Cash crops

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i. Increased area under irrigation from 2,696 Ha year 2009/2010 to 19,000 Ha year 2012/2013. Productivity increase;

Success Factors

Name of Scheme

Number of Ha under Irrigation

Paddy Productivity before Project

(Tones)

Paddy productivity after project (Tones)

Masimba 350 1.3 2.8

Maweni 258 2.9 4

Mtiwe 165 2.1 4.5

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ii. Increased use of improved farm implements as follows;

Success factors-2

Farm implement 2009/2010 2012/2013 Percent

Tractors 89 173 94

Powertillers 58 140 141

Ox plough 73,830 80,808 10

Ox - curt 5882 12,575 114

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Increased farm operations efficiency using Ox plough and Tractors

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Success factors-3

iii. Increased use of improved varieties of seeds through production of quality declared seeds and subsidised seeds from Central Government;

Success factors-4

Seed supply 2009/2010 (Tones) 2013/2014 (Tones)

Quality declared seeds 5 66

Subsidized seeds 80 20

Total 85 86

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Onion Quality declared seed farm in Iramba District

The availability of improved seeds to farmers is increased by production of QDS at Ward level.

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Success factors-5

iv. Increased number of farmers trained on improved agronomical practices; Prepared and distributed the Singida Agricultural and Livestock

Stakeholders Guideline, 2006. Expected to produce 2nd edition recently.

Establish Farmers Field School for training farmers. The number of FFS has increased from 30 during year 2009/2010 to 434 during 2012/2013

Number of Extension Field Officers has increased from 87, 2009/2010 to 123, during 2012/2013

Success factors-6

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One of Farmers Field School at Sanjaranda Manyoni District.

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Success factors-7

v. Increased investiment in value addition of crop produces.

The number of Sunflower oil procesing o Industries has increased from 32, year 2005/2006 to 104, year

2012/2013.o Small (73), Medium (26) and Large (5)

The number of trained Enterpreneurs on enterprise development by SIDO is 1,841

Success factors-8

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Sunflower processing machines

Small scale Large Scale

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Success factors-9

vi. Improved formalised Selling points to enhance easy access to markets and attract traders.

2009/2010 – 27 Market Sheds2012/2013 – 93 Market sheds

vii. Increased budget allocation for implementation of DADPs

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Success factors-10

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viii. Availability of financial resources through Agricultural Sector Development Programme to support small Scale producers including value addition activities.

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Year Amount received Year Amount received

2006/2007 421,628,045 2010/2011 1,879,121,406

2007/2008 3,739,045,043 2011/2012 1,344,809,907

2008/2009 2,679,166,362 2012/2013 1,344,809,907

2009/2010 2,606,412,533

Grand Total 14,014,993,203

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Success factors-11

ix. Improved environmental conservation;• Total area of reserved natural Forest – 520,325.48 Ha. • Stimulated the production of Honey;

Average annual production;• Honey – 156,118Kgs – TShs -1,561,182,500• Wax - 57,759Kgs – TShs- 404,314,750• Employment -173 groups with 3,633 people

Success factors-12

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Success; • Chicken live weight increased from 1.5Kg, 2009/2010 –

2Kg, 2012/2013• Number eggs/chicken/year increased from 45, 2009/2010

to 75 2012/2013• Milk Production increased from 2lts/day per Cow, 2009 to

8Lts/day/Cow.• Increased average number of chicken per household from

3-4, 2009 to 16, 2013

B; Livestock Subsector

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i. Training livestock keepers through Livestock Field Schools.

ii. Vaccination ; Both livestock and Poultry

iii. Increased market availability - Price of chicken increased from TShs 5000 per chicken, 2009 to TShs 12,000 per chicken 2014.

iv. Support Poultry keepers with incubators Eg. Ikungi DC - supported 4 groups with incubator with capacity of hatching 3000 eggs at a time

v. Availability of Community Vaccinators – Ikungi DC trained 632 Poultry Vaccinators.

Livestock success factors-2

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Provision of technical expertise for an enterprise transformation.

With capital accumulation an employee can transform enterprise and bring inclusive growth;

A case study of Mwenge Oil Mill

Started an enterprise with 2 machines – capacity 2.8 tones/day. Number of people employed 3

Current;

5 machines -10 -14 tones/day, 2 godowns – capacity 1,370 tones, Number of employee full time employee 25.

2. i. Role of employment as an important link between transformation enterprise development and inclusive growth

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Availability of viable technology Presence of market for the product Access to financial services Availability of services – Business and technical training,

Financial intermideation and consultancy Presence of Important infrastructures (Power, water, roads)

2. ii. Important issues in facilitating the process of moving up the value chain include;

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There are evidence that informal enterprises are agent for capital accumulation.

3. i. Importance of informal enterprise as an agent for capital accumulation

Name of Enterprise

Start year

Initial Capital Investment

Number of employee

Current Capital investment

Number of employee

Chalk industry – Manyoni

2000 13,000,000 40 150,000,000 20

Mwenge Oil Mill – Singida MC

2009 60,000,000 5 300,000,000 25

Mene Oil Mill – Singida (R)

2003 2,800,000 3 60,000,000 19

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According to registration procedures of enterprises in Tanzania context, Informal enterprise are transformed into formal by registering their business with BRELLA

Factors –win-wini. Formally determined and agreed benefits prior agreement

ii. There should be legally agreement between two parties

iii. Formulation of laws and regulations that will govern the whole process

iv. Presence of mediator

3. ii. Transformation of informal enterprise into formal

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Total number of Cooperatives increased from 100 2009 to 258, 2013- AMCOS (99), SACCOs (123), Industrial (2), Irrigators (10), Bee keepers (9), Minerals (15)

Rolesi. Source of finance for enterprise development

i. Provide credit to members – TShs 1,127,275,857 year 2009 to 2,827,350,300 year 2013

ii. Attract capital investment to members – A total of 70 members received Tractor loan from TIB (52), Input Trust Fund (4), CRDB (8), SUMA JKT (5)

iii. Support value addition of crops to members Eg 2 Cooperatives 9 Mtinko and Ilongero)

iv. iv. Agricultural Marketing Cooperatives play an important role in marketing of products. The implementation of warehouse receipt system in Singida increased prices of Sunflower from Sh 210 per Kilogramme year 2009/2010 to Sh 750 year 2011/2012.

7. Role of Cooperatives in the Transformation

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• Increased community contribution in improving social and Economic services (Construction of education infrastructures, Health, Water)

• Improved residential houses

Impact of Transformation in Singida Region

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