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1. Background

  • It is estimated that Tanzania had about 34 million chickens by 2011, out of which almost 95% are local chickens and the rest are exotic breeds.
  • Poultry rearing contributes 16% of the livestock GDP, as the biggest part is cattle (70%). Under assumption that the livestock sector contributes 18% of the national GDP and the Agricultural GDP makes 30% of the national GDP, then the poultry sub-sector would contribute around 3 % of the agricultural GDP and around 1 % of the national domestic product.
  • Shinyanga, Mwanza, Tabora, Mbeya, Iringa and Morogoro regions account for 45% of the total chicken population and The number of chickens per household ranges from 9 to 15.
  • Dar es Salaam had the smallest indigenous chicken population (182,448) but the highest number of chickens per household due to large numbers of commercial farms.
  • For the period 1995 to 2003 the average growth rate of indigenous chickens was 2.2 % per year. The rate of growth was relatively higher for the period 1999 to 2003 (4.3%) than during 1995 to 1999 (0.13%). Unfortunately no data is known for the period 2004-2010.
  • 62% of smallholder households in Tanzania keep chickens with 3,017,004 smallholder.
  • Households (2,950,268 on the Mainland and 66,736 in Zanzibar) keeping predominantly indigenous chickens.
  • According to FAO the average consumption of chicken is about 0.7 kg chicken meat and 13 eggs per capita per year in Tanzania in 2010 which is relatively low in comparison to other African countries and the rest of the world which consumes about 6.8 kg and 108 eggs per capita per year). <www.faostate.fao.org>
  • The latent demand for local chicken in urban center’s is high as most people in Tanzania prefer the taste of local chicken over the taste of exotic breeds that are perceived as rather tasteless due to their rearing method
  • The Ministry of Agriculture gave a slightly different estimate for 2002/2003 in the order of 34,827,675 chickens. Of this number, approximately 32,559,208 million were local village chickens kept predominantly in the rural areas. Commercial birds included 589,563 broiler and 1,222,267 layer chickens kept by smallholder farmers and 456,638 birds (both broilers and layers) on large-scale farms. There were also 1,362,216 ducks and 213,545 turkeys.
  • Most improved chickens are kept by a relative small number of households. 8% of smallholder households kept 64% of the layers, whilst 65% of the broilers were kept by 7% of the smallholder households.
  • Indigenous chickens are the main type found in the traditional system and comprise over 70% of the national flock, supplying most of the poultry meat and eggs consumed in rural areas and about 20% in urban areas.

Production of one day old chicks (DOCs) on the other hand are carried out in hatcheries most of which are located in Dar es Salaam, Arusha, Mbeya, Morogoro, and Mwanza. The poultry sector grows at an average rate of about 3% per annum. The livestock industry, which includes the poultry subsector, 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; exchange rate USD 1= TZS 1200).

Years 2002 2003 2004 2005 2006 2007 2008 2009 2010
Live chicken # n.a 33307265 27000000 27000000 30000000 33000000 33000000 33999994 33500
Egg production tons 33800 35100 30100 35100 35100 37060 35030 32950 34250
Meat productions tons 44090 45637 1756 49036 46036 55520 56920 54620 56320
Live chicken import 1176 1542 0.21 1443 2006-2010 no update data could be traced
Chicken meat import 1000tons 0.21 0.81 0.21 0.49 2006-2010 no update data could be traced
Live chicken export 3187 3575 168 91 2006-2010 no update data could be traced
Egg with shells import (1000tons) 0.59 0.03 0.16 0.15 2006-2010 no update data could be traced
Export (1000tons) n.a 0.03 0.01 0.01 2006-2010 no update data could be traced

Source: Ministry of Livestock Development and Fisheries <www.tanzania.go.tz/livestock>FAOSTAT.

Chicken meat is about 555,000 tons (according to FAO 2011 Data). Consumption of poultry and poultry products are also lower in Tanzania compared to many other African countries. The traditional poultry sector is the largest and accounts for 70%, while the modern poultry sub-sector accounts for 20% of the total poultry sub-sector. Almost 100% of poultry meat and eggs consumed in rural areas are from the traditional sector. Most commercially produced poultry meat and eggs are sold to the urban population in the cities.

Challenges facing Production and Productivity in Poultry Meat Sub-Sector (Broilers):

  • Availability and price of poultry feeds and veterinary services
  • Access to good quality water sources and a disease free environment
  • Consistent supply of quality feed resources
  • Increase in demand for quality for broiler and traditional poultry meat
  • Increase demand for hatcheries and production of quality one day old chicks
  • Increasing poultry production infrastructures
  • Control of (contagious) poultry pest and diseases (layers and broilers)
  • Improving poultry slaughter and marketing facilities and efficiency
  • Improving accessibility to credit facilities
  • Provision of technical support devices and extension services
  • Strengthening poultry farmer organizations
  • Increasing domestic demands through poultry meat consumption promotion

Poultry Egg Production (Layers sub-sector)

The number of eggs produced by smallholders in Tanzania during from 2007 to 2010 was 367,955,297; of this 351,941,008 eggs were produced on the mainland and 16,014,289 in Zanzibar. Most of the eggs produced in Tanzania were from Mbeya (16%), Arusha (9%), Mwanza (9%), Tabora (7%), Iringa (6%) and Dar es Salaam (6%). This represents 52 percent of the total egg production in Tanzania from smallholders (National Sample Census of Agriculture 2007-2010). Eggs produced in the period 2007-10 was 910,000,000 (Prime Minister speech in Parliament). The difference (542,044,703) could be accounted for as result of production from large-scale commercial poultry farms in Tanzania over the same 4 years. 68% of eggs from indigenous chickens are sold. Today the average price of egg is Tshs 300 (US $ 0.18). The percentage sold can reach more than 80 percent as in Dar es Salaam (97%), Lindi (84%), Kigoma (83%), Dodoma (82%) and Arusha (81 %). This percentage can be as low as 38 percent in Mwanza, the highest egg producing region in the country. Eggs not sold would be used for consumption by the family and some will be incubated for hatching. Source: FAO Animal Husbandry and Animal Health 

Division - Poultry Sector Country Review for Tanzania, 2007-08

Challenges facing Production and Productivity in the Egg production Sub-Sector (Layers)

  • Availability and price of poultry feeds and veterinary services.
  • Access to good quality water sources and a disease free environment.
  • Consistent supply of quality feed resources.
  • Increase in demand for quality eggs.
  • Increase demand for hatcheries and production of quality one day old chicks.
  • Increasing poultry production infrastructures.
  • Control of (contagious) poultry pest and diseases (layers and broilers).
  • Improving poultry slaughter and marketing facilities and efficiency.
  • Improving accessibility to credit facilities.
  • Provision of technical support devices and extension services.
  • Strengthening poultry farmer organizations.
  • Increasing domestic demands through eggs consumption promotion.

 2. Potential for Investment in Poultry Industry. 

Tanzania could easily accommodate 100 to 200 million poultry birds, as there is space for poultry and feed production enough in the country. There is ample potential for expansion of the poultry industry through better chicken rearing & other husbandry practices and improve the chicken breed by having established quality hatcheries. 

The imported chicken meat from Brazil for tourist hotels and mines cost Tanzania dearly every year. Unfortunately no updated statistics are available on the TZ import of chicken meat. 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 hatcheries, poultry production places and in an increase in volume and number of poultry slaughterhouses. The increasing demand of poultry meat and eggs in the eastern and southern African countries are also be tapped as a potential market once better poultry practices are adopted and improved hatcheries and chicken meat processing facilities are established and operational.

Venture possibilities

  • The commercial poultry sector is underdeveloped and only a few companies such as NAPOCO (Usa River), Mkuza Chicken (Kibaha), Ruvu JKT (Bagamoyo) and Euro Poultry
  • (Mkuranga), Kenchick, Interchick and Twiga feeds (all in Dar) have established large-scale poultry production units mostly for the urban market.
  • Establishment of (chicken) meat processing facilities for the domestic and export markets, including such poultry products as whole chicken en chicken cuts (wings, quarters, liver etc).
  • Establishment of chicken feed mills.
  • Establishment of cold storage and transport facilities for poultry products, only in conjunction with large scale production and slaughterhouse facilities.
  • Provision of veterinary services in the areas of disease monitoring, control and prevention.
  • Facilitation of existing training institutions and extension services for the poultry industry. 

 

Potential markets

  • The domestic market for chicken meat and eggs is growing, especially in urban areas where there is a high dependence on imports.
  • The European Union is a potential market for Tanzania’s livestock and products once farmers are able to adhere to the strict conditions and requirements of the European market.
  • The Eastern and Southern African countries are a potential market once better animal husbandry is adopted and processing facilities established.

 

Table 2: Returns to Investment in the Livestock Industry 2012 – PASS data.

Item Low Tech Interme diate High Tech
Poultry - layer cost per 5000 layers     60756388
Revnues from sales og eggs     91800393
Gross margin     31044005

 

Table 3: High Potential Areas for Investments in the Livestock Industry

Best locations for Investments Size of Potential Existing Infrastructure
All regions in the country Millions of hectares suitable for Poultry farming Most regions are accessible either by paved roads, by railway networks or by boat services.

 

Investment Potential for Increase in Output/Production and Productivity of Poultry (Broilers)

  • Improvement of quality and quantity of chicken feeds
  • Hygiene and proper care of poultry stock (broilers)
  • Veterinary care and control of poultry pest & diseases
  • Access to clean drinking water & veterinary services
  • Proper housing of animals and access to clean drinking water
  • Establish and strengthen poultry farmers association
  • Improving access to credit facilities
  • Technical training in broilers production (esp. on feeds and prevention of transmission and control of diseases)
  • Increase and improve (chicken) meat processing capacity (slaughterhouse)
  • Improve efficiency of poultry marketing system including cold storage.

 

Investment Potential for Increase in Output/Production and Productivity in Poultry (Layers)

  • Improvement of quality and quantity of chicken feeds.
  • Breeding of high quality stock (layers).
  • Hygiene and proper care of poultry stock.
  • Improvement of quality and quantity of animal feeds.
  • Veterinary care and control of poultry pest & diseases.
  • Proper housing of animals and access to clean drinking water.
  • Establish and strengthen poultry farmers organizations.
  • Improving access to credit facilities.
  • Technical training in layers production (esp. on feeds and prevention of transmission and control of diseases).
  • Increase and improve storage and marketing capacity for eggs (quantity & quality).
  • Increasing domestic demands through milk consumption promotion.
  • Improve efficiency of egg marketing system incl. cold storage.

 

3. Financing needs for the Poultry Sector (Layers & Boilers).

Financial support in this industry is of great importance due to its capital intensity. PASS has identified the following financial needs for the poultry sub-sector / poultry producers:

  • Establishing of adequate poultry houses, water supply, electricity and drainage.
  • Establishment of hatcheries for the production of one day old chicks (DOC).
  • Funds for purchase of initial stocks, feeds and operational cost (labour).
  • Invest in adequate veterinary medicines and adequate feeds for the birds.
  • Establishment of poultry processing facilities & cold storage.
  • Establishment or upgrading of slaughterhouses, including proper waste disposal technology.
  • Establishment of poultry feed mills for specialized feeds for broilers and layers.
  • Provision of veterinary services in the areas of diseases monitoring, control and prevention.
  • Establishment of cold storage and transportation facilities for slaughtered chicken products.
  • Establishment of training institutions for the poultry and poultry feeding industry.
  • Invest in proper packaging and marketing of poultry products including eggs.
  • Purchase transport and loading equipment & facilities.
  • Invest in storage facilities, packaging and marketing equipment.

 

4. How can PASS help Farmers in the Poultry Industry? (layers & broilers)

  • Through feasibility studies and business plans PASS can assist poultry SME entrepreneur’s access to bank loans (financial linkages).
  • Assist in capacity building of farmers groups and entrepreneur management skills
  • Assist poultry SME entrepreneurs with layout for poultry houses, storage and marketing facilities and mini slaughterhouses,
  • Assist poultry producers with market linkages and assist with developing marketing strategies for wholesaling and retailing of poultry 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 poultry farmers and poultry SME 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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