+255739-900-900 |
info@sajilibiashara.co.tz
Agriculture and
Agricultural Processing
QUICK, EFFICINET & AFFORDABLE
SETUP OPTIONS
Agriculture and Agricultural Processing
Agriculture in Tanzania represents almost 30 percent of the country’s GDP with three quarter of the country’s workforce involved in this sector. Agriculture is undoubtedly the largest and most important sector of the Tanzanian economy, with the country benefitting from a diverse production base that includes livestock, staple food crops and a variety of cash crops.
There are plenty of business opportunities across domestic, regional and international markets, for both traditional and new products. However, productivity is low with modest progress over the past two decades. It is dominated by smallholder farmers dependent on rainfall for irrigation. Farmers and other sector stakeholders face considerable challenges in modernizing the industry to increase yields, exports and value-added processing. Slowing export revenues; land acquisition hurdles; and smallholder farmers struggling to access economically viable technology, adequate storage facilities, markets and credit have affected the sector.
The most common food crops in Tanzania are maize, wheat, rice, sweet potatoes, bananas, beans sorghum, and sugar cane. Cash crops include coffee, cotton, cashew nuts, tobacco, tea and sisal.
Significance Of TheAgriculture and Agricultural Processing
The Tanzania government aims to facilitate the growth of the Agriculture and Agricultural Processing primarily through private sector investment to optimize its profitability in line with the goals of the Tanzania Vision 2030.
Food Security
The agriculture industry is crucial in ensuring food security in the country by providing sufficient food supplies to meet the demands of the growing population.
Diversification Of Economy
The agriculture industry contributes to the diversification of the economy, reducing the dependence on oil exports.
Export Revenue
The agriculture industry generates significant revenue from exports of agricultural products, such as dates, vegetables, and fruits, to other countries.
Investment Opportunities in Agriculture
Investment in agro-processing industries entails adding value, and improvement of standards of quality. The following are key areas.
Fruit/ Vegetable processing
A large variety of fruits and vegetables are produced in Tanzania. The most important fruits include mangoes, oranges, pineapples, passion fruits, bananas, avocados, jackfruits, papayas, peaches, pears, guavas and grapes. The main vegetables include tomatoes, okra and chilies. Annual Tanzania production is 2.75 million of tons of fruits and vegetables but only 4 percent is processed
Cashew nut Processing
Cashews are a major cash crop in Tanzania and production has risen to 120,000 tons annually. However, only about 10 percent of the cashew nuts produced within the country are processed in Tanzania. There are opportunities in rehabilitating old and/or unused processing plants or establishing medium-scale processing plants.
Textile and apparel
Tanzania produce abundant cotton but only 20 percent is locally processed. The sector has great investment potential in establishing fully integrated textile mills as well as plants for cotton ginning, yarn fabric production (spinning, weaving and printing) and cut, make and trim (CMT) units.
Leather sector
Tanzania has a large livestock population (17.7 million cattle, 12.5 million goats and 3.5 million sheep) and produces about 2.6 million pieces of raw hides and skins annually. A large portion is exported raw and only 10 percent is processed. Investment opportunities in the leather sector include establishment of modern tanneries and leather finishing production units.
Meat and Dairy Sector
Given the large livestock population, the country is ideal for meat processing, packaging, and processing of dairy products. Investment opportunities include establishment of meat processing plants, dairy products processing plants and cattle ranches.
Oil seeds
Tanzania still imports a lot of edible oil. Processing of oilseeds locally is now on the rise, therefore there is potential in supplying oil pressing and processing equipment. Common oil seeds produced in the country include sunflower, sesame, groundnuts, palm oils, etc.
HOW CAN OUR BUSINESS SETUP CONSULTANTS HELP YOU?
Complete assistance with KSA business formation, enabling your business to be operational as soon as possible.
Expert
Consultation
Business Review
& Strategy
Registration
RELATED POST
