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1. Background

Tanzania ranks is third in Africa on livestock production and in terms of cattle population after Ethiopia (31 million) and Sudan (30 million). According to 2007/2008 livestock census, the dominant species are cattle (21,280,875) followed by goats (15,154,121), sheep (5,715,549) and pigs (1,584,411). The total number of livestock units is 25,977,665. About 90% of the livestock population is of the indigenous type. The livestock sector provides livelihood support to approximate 1,745,776 (37%) households, out of a total of 4,901,837 agricultural household (URT, Livestock survey census 2005.). The livestock sector grows at a rate of 2.7% per annum. The livestock industry contributes 30% of agricultural GDP (2010). The livestock sector contributes about 4.7% of the GDP (947 billion TZS)- which was equivalent to 789 million USD (2009 data). 24 million ha are used for cattle grazing (2007/2008 livestock census) mostly in Shinyanga, Arusha, Manyara, Tabora and Mwanza. The highest goat population is in Shinyanga, Arusha, Manyara and Tabora. Pigs are more common in the southern regions of Mbeya and Iringa, as well as in Kilimanjaro and Dar es Salaam regions.

Meat Production

Common sources of meat are beef cattle, sheep and goats, pigs and poultry. Cattle contributes 53% of the total meat production, whereas sheep and goats contributes 22%. Beef production in Tanzania mainly comes from traditional sector that is dominated by Tanzania Short Horned Zebu (TSHZ), agro-pastoral system contributes 80% and pastoral system contributes 14%. Only 6% of meat production comes from commercial ranches. In 2009 the annual meat production was 449,673 tons and per capital meat consumption was 12kg. Hence we lag behind the recommended consumption standard of FAO that is 50kg per annum. Current per capita meat consumption stands around 24kg per annum.

The country produces 462,686 tonnes of meat annually for domestic consumption but also imports 800 tonnes high quality meat to meet demand for tourist hotels and mines. There is also a substantial export of meat and live animals. Statistics show that the country earned TZS 3.81bln/- from the export of 3,362 cattle and 4,060 goats and sheep. (2011/2012).

Challenges facing Production and Productivity in Beef SubSector

  • Availability of fast growing meat animals for production of quality meat
  • Increasing livestock production infrastructures
  • Consistent supply of quality feed resources
  • Control of livestock diseases
  • Improving livestock marketing efficiency
  • Provision of technical support devices
  • Strengthening livestock farmer organizations

 

Milk Production

About 600,000 of total cattle population in Tanzania are dairy cattle. Milk production from cows during the wet season was 1.6 billion litres and 0.9 billion litres during the dry season. About 60% of milk produced by indigenous cattle kept in rural areas, and 40% kept by improved cattle mainly by smallholder producers, milk yield from indigenous to improved dairy cows ranges from 1-2 litres and 7-10 litres per cow per day respectively, at present 10% of milk produced annually enter the market, and the remaining is consumed at home or considered to a waste commercially mainly due to lack of collection system.

At present there are about 48 small and medium milk processing plants with installed capacity of 394,600 litres per day. The majority of these plants operates at very low capacity. The average of these processing plants currently process about 105,380 litres/day, which is equivalent to 27% of installed capacity. The current processing capacity accounts for 5% of the annual milk production as many consumers buy unprocessed milk from dairy farmers in their neighbourhood.

Challenges facing Production and Productivity in the Dairy Sub-Sector

  • Availability of quality dairy animals
  • Consistent supply of quality feed resources
  • Control of livestock diseases
  • Provision of technical support services
  • Establishment and strengthening of dairy farmers organizations
  • Improving accessibility to credit facilities
  • Increasing processing capacity
  • Increasing domestic demands through milk consumption promotion

 

2. Potential for Investment in Beef and Dairy Industry.

Carrying capacity of the rangeland in Tanzania is estimated at 20 million animal units but currently there are only 16 million animal units. There is ample potential for expansion of the livestock industry through better animal husbandry, improve breeding and addition of livestock.

The import of 800tonnes of high quality meat for tourist hotels and mines cost Tanzania 10billion annually. This demand could potentially be met by high quality local production. This situation could also be used as a window of opportunity to improve the standard of beef production and meat grading in slaughterhouse operations. 

The increasing demand of meat of the eastern and southern African countries are potential market once better animal husbandry practices are adopted and improved processing facilities established and operational.

 

Potential for Increase in Output/Production and Productivity of Meat Animals

  • Breeding of High Quality Young Stock (Beef Cattle)
  • Improvement of Quality and Quantity of Animal Feeds
  • Hygiene and Proper Care of Animal Stock
  • Veterinary Care and Control of Livestock Diseases
  • Paddocks and Access to Clean Drinking Water
  • Establish and Strengthen Livestock Farmers Association
  • Improving Access to Credit Facilities
  • Increase and Improve Meat Processing Capacity (Slaughterhouse)
  • Improve Efficiency of Livestock Marketing System

 

Potential for Increase in Output/Production and Productivity of Dairy Animals

  • Breeding of High Quality Stock (Dairy Animals)
  • Hygiene and Proper Care of Animal Stock
  • Improvement of Quality and Quantity of Animal Feeds
  • Veterinary Care and Control of Livestock Diseases
  • Proper Housing of Animals and Access to Clean Drinking Water
  • Establish and Strengthen Dairy Farmers Organizations
  • Improving Access to Credit Facilities
  • Increase and Improve Milk Processing Capacity (Quantity & Quality)
  • Increasing Domestic Demands through Milk Consumption Promotion
  • Improve Efficiency in the Milk Marketing System

 

3. Financing Needs for the livestock sector

Financial support in this industry is of great importance due to its capital intensity.

Financial needs for the livestock sector falls under:

  • Establishing of meat and dairy processing facilities for the domestic and export markets, including such products as cheese, butter, ice cream, condensed milk, canned meat and processed poultry products.
  • Establishment of animal feed mills and establishment of specialized livestock fattening industries.
  • Provision of veterinary services in the areas of diseases monitoring, control and prevention.
  • Establishment of cold storage and transportation facilities for livestock products.
  • Establishment of training institutions for the livestock industry.
  • Provision of specialized sea livestock carriers and ship with refrigerated containers required for chilled and frozen meat and dairy products during export.

Livestock Entrepreneurs / Farmer Groups may seek financial assistance for:

  • The purchase of animal or breeding stock (including labour costs)
  • The purchase of animal feeds.
  • The purchase veterinary inputs (vet. drugs, sprayers).
  • The modernization and or expansion of meat and dairy processing plants.
  • Purchase transport and equipment.
  • Storage facilities, packaging and marketing equipment.

 

4. How can PASS help Farmers in the Beef and Dairy Industry? (in the livestock sector by intensification of animal production and improved beef and milk processing).

  • Through feasibility studies and business plans PASS can assist entrepreneurs access to bank loans (financial linkages).
  • Assist in capacity building of farmers groups and entrepreneur management skills
  • Assist livestock entrepreneurs with layout for cattle fattening, preparation of animals feeds & sheds and design and equipment for milk processing plants
  • Assist animal husbandry producers with market linkages and assist dairy factories in marketing strategies for improved retailing of milk products.
  • Organization of farmers into groups, which can be used as focal points for contract farming, input supply credit, produce -price negotiation and provision of advisory service.
  • Support livestock farmers and beef and dairy agribusinesses with inadequate amount of collateral / security for a commercial bank loan.
  • Assistance of eligible individuals and companies to access loan facilities for their viable investment through appraisal of loan write ups in line with specific bank’s terms and condition and linkages.

 

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