CARI Tanzania national workshop proceedings · charged by banks and high percentage of contribution to the MGF (60:40). ii) Shinyanga Rice for Competitive Markets (SHYRICE) Consortium

CARI Tanzania national workshop proceedings

Golden Tulip Hotel–Dar es Salaam, Tanzania

30th

September, 2016

1

CONTENTS

ABBREVIATIONS ................................................................................................................................. 2

CHAPTER ONE ...................................................................................................................................... 3

1.0 Background ......................................................................................................................................... 3

1.1 CARI Tanzania ............................................................................................................................... 3

1.2 CARI national workshop ................................................................................................................ 4

CHAPTER TWO .................................................................................................................................... 5

2.0 Opening remarks and CARI achievements ....................................................................................... 5

2.1.1 CARI in nutshell ....................................................................................................................... 5

2.1.2 Achievements of CARI in Tanzania to date ........................................................................... 5

2.1.3 Partners’ achievements and experiences ................................................................................. 5

2.2.4 Question and answers .............................................................................................................. 7

2.2 Delegates remarks ........................................................................................................................... 8

2.2.1 GIZ Country Director Remarks .............................................................................................. 8

2.2.2 Permanent Secretary Remarks ................................................................................................. 9

CHAPTER THREE ............................................................................................................................... 10

3.0 Thematic presentation and discussions ............................................................................................ 10

3.1 Thematic presentations and discussions ...................................................................................... 10

3.1.1 Mechanization of Small Holder Rice Production in Tanzania ............................................ 10

3.1.2 Household dietary diversification .......................................................................................... 10

3.1.3 Rice markets and consumer preferences ............................................................................... 10

3.1.4 Rice processing: Rice milling efficiency and husks management ......................................... 11

3.1.5 CARI experience in agricultural finance ............................................................................... 11

3.1.6 Policy frameworks and challenges in the rice sub-sector ...................................................... 11

3.2 Thematic group discussions .......................................................................................................... 12

CHAPTER FOUR ................................................................................................................................. 13

4.0 Lessons learnt and closing remarks .................................................................................................. 13

4.1 Key lessons drawn ........................................................................................................................ 13

4.2 Closing remark .............................................................................................................................. 14

APPENDICES ........................................................................................................................................ 15

2

ABBREVIATIONS

BMGF Bill and Melinda Gates Foundation

BMZ German Federal Ministry of Economic Cooperation and Development

CARI Competitive African Rice Initiative

FAO Food and Agriculture Organization of the United Nations

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

IFAD International Fund for Agricultural Development

JICA Japan International Cooperation Agency

KT Kilimo Trust

MALF Ministry of Livestock and Fisheries Development

MANR Ministry of Agriculture and Natural Resources of the Revolutionary Government of

Zanzibar

MGF Matching Grant Funds

MRC Mbarali Rice Consortium

NGO Non Governmental Organization

PBR-DR Promoting Bahi Rice – Dodoma Region

PPP Public Private Partnerships

RIMAH Rice Market Hub, Rufij

SCF Smallholders Crop Finance Kilombero

SHIRCO Southern Highland Rice Consortium

SHYRICE Shinyanga Rice for competitive market

SURIPRO Sustainable Rice Production in Singida

TCCIA Tanzania Chamber of Commerce, Industry and Agriculture

TFDA Tanzania Food and Drugs Authority

TFNC Tanzania Food and Nutrition Centre

ZANRICE Strengthen Rice Value Chain in Zanzibar

3

CHAPTER ONE

1.0 Background

The Competitive African Rice Initiative (CARI) is project across sub-Saharan Africa; in Burkina Faso,

Ghana, Nigeria, and Tanzania; to improve local rice productivity, production, and marketing, in

order to improve the livelihoods of 120,000 smallholder rice farmers. The aim is to work with rice

processors and traders who are value chain anchors and provide the much needed market “pull” to

stimulate smallholder rice farmers to increase their productivity and production. Secondary

beneficiaries are rural service providers, such as input dealers, suppliers, and operators of agricultural

machinery.

The project is designed to foster cooperation with public and private sector partners to form effective

and innovative Public Private Partnerships (PPP) in the rice sub-sector, and seeks to strengthen

existing sector alliances and develop new ones at national and regional levels. CARI is a four-year

partnership-based development project funded by the Bill and Melinda Gates Foundation (BMGF)

and the German Federal Ministry of Economic Cooperation and Development (BMZ). The

implementing agency is Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). In-country,

GIZ is implementing the programme in Burkina Faso and Nigeria, Technoserve and John A Kufor

Foundation are implementing in Ghana and Kilimo Trust is implementing CARI in Tanzania.

1.1 CARI Tanzania

CARI-TZ is designed to foster cooperation with public and private sector partners to form effective

and innovative Public Private Partnerships (PPP) in the rice sub-sector, and seeks to strengthen

existing sector alliances and develop new ones at national and regional levels. CARI-TZ encourages

partners to form consortia of actors working in the rice value chains that are committed to implement

a business model that achieves increased profitability for all actors involved. The approach is to

provide Matching Grant Funds (MGF) to selected Partners as a development incentive and to ensure

high ownership and commitment. BMGF provides the seed funding for the MGF scheme. The

grants are a means of triggering additional private investments to upgrade less competitive business

models and to up-scale existing successful ones.

Kilimo Trust’s role is to mobilise and jointly allocate resources, provide technical assistance, create

alliances for implementing projects, and set up mechanisms for monitoring and evaluation. Kilimo

Trust will also encourage capacity building among local organisations to effectively advocate among

decision-makers for an enabling environment in which the local rice sector can flourish. The Trust is

providing expertise all along the rice value chain. Rice millers are seen as the key anchors linking

consumers with service providers and producers. Building relationships between rice farmers and

rice millers so they can meet for mutual benefit as equal agri-business partners form an important part

of this initiative. The project plan is to reach at least 30,000 smallholder farmers, including 9,000

female farmers, whose daily income is below US$2, and double the income of at least 75% of those

targeted.

4

1.2 CARI national workshop

The CARI 2016 national workshop was a one day event to achieve the following objectives;

a) Share experience of CARI implementation with other rice stakeholders.

b) Address key challenges, lessons and way forward for further investment in rice Sub-sector in

Tanzania.

c) Invite other development partners to, upscale and replicate CARI achievements.

The Workshop had 3 sessions which are: Opening remarks and CARI achievements to date, studies

conducted and partner experiences and group discussion sessions

Session 1: Opening remarks and CARI achievements

This involved four presentations which are CARI project in a nutshell to provide participants with highlight of

the project in tem minutes and the second presentation was on CARI Tanzania achievements in 15minutes

and progress and the last two presentations were from Matching Grants Partners (SHIRCO and SHYRICE)

for 30 minutes. These were followed by GIZ country Director and Guest of Honour, the Permanent Secretary

of the Ministry of Agriculture, Livestock and Fisheries development (MALF)..

Session 2: Studies conducted and partner experiences

This involved seven presentations of thematic areas for sparkling group discussions. Such presentations

constituted of the following themes;

i) Rice smallholder farmers’ rice production and mechanization.

ii) Household dietary diversification

iii) Rice markets and consumer preferences

iv) Rice processing: rice milling efficiency and husks management

v) CARI experiences on agricultural finance

vi) Policy frameworks and challenges in the rice sub-sector

Session 3: Thematic group discussions

Participants were divided into six groups based on their interest and each group was given one thematic topic

for one hour discussion. After the discussion of each group each group presented using cards on pin boards.

5

CHAPTER TWO

2.0 Opening remarks and CARI achievements

The workshop involved was attended by 55 participants from development partners, public and

private institutions (see Appendix 2).

2.1.1 CARI in nutshell

Welcoming remarks was given by CARI-Tanzania Component head, Mr. Juergen Koch who

provided the details of CARI in nutshell. Specifically, he presented progress of CARI in countries

(Tanzania, Nigeria, Ghana and Burkina Faso) where project is implemented.

2.1.2 Achievements of CARI in Tanzania to date

Dr. Mary Shetto, CARI Tanzania Team leader

presented CARI projects achievements to date in

Tanzania. The presentation covered CARI

Tanzania experience, success and achievement up

to June 2016. The presentation highlighted main

goal of CARI which is to double the income of

farmers through increasing productivity of 30,000

SHFs. It CARI has recruited 39, 616 SHFs

through eight rice value chain consortia (SHIRCO,

PBR-DR, SURIPRO, RIMAH, SHYRICE, MRC,

SCF and ZANRICE) of which 13,037 (43%) are

female. Farmers have been trained on GAP,

Contract farming and financial management and

Business Skills through FBS. Such interventions

have achieved to increase rice Smallholder Famers yield average from 1.8mt-3.9mt/ha; increase in

income of smallholder farmers as a result of increased gross margin of paddy procured under

contractual arrangement; Quality of rice in line with market requirement; increased access to finance

by lead firms and FBOs (about 6,538 SHFs) from financial institutions.

2.1.3 Partners’ achievements and experiences

i) Southern Highland Rice Consortium

This was presented by Rachel Ajambo (Senior Program Officer, Kilimo Trust) on behalf of SHIRCO

The consortium was formed in 2014 and inaugurated May, 2015. SHIRCO is made up of 6,357

Smallholder Farmers, Raphael Group Limited (Lead firm), Rogimwa-Agro Company, Agri-seeds

technologies and MATI-Uyole.

Through SHIRCO, RGL has signed contracts with 6,357 SHFs to supply 11,250 MT of paddy

cumulatively and sale contracts with National and Regional Companies; YARA Tanzania Limited has

supplied 356.5 Mt of NKP to RGL contracted SHFs; Agri-Seed technologies: Supplied 56MT of

certified seeds (SARO); SHFs: Accesses funds from Bank of Africa through the Ware Housing

Receipt System, accessed credit inputs of more than TZS 400 million for input access, selling their

paddy in kg instead of bag, paddy quality improved (Reduced contaminated 8% 2014 to 0.5 2016),

Guaranteed market and improved their knowledge on GAP and FBS. Among the challenges that

Dr. Mary Shetto, CARI Tanzania Team

leader

6

SHIRCO faces includes erratic weather, export ban, electricity breakdown, high interest rates (17%)

charged by banks and high percentage of contribution to the MGF (60:40).

ii) Shinyanga Rice for Competitive Markets (SHYRICE) Consortium

This presentation was made by Stefan Mpangala, Project coordinator of SHYRICE. The consortium

comprises of Musoma Food Company (Lead firm), 5521 SHFs, RUDI (Service provider of extension

and business skills) and KIBO (Agro-inputs Company). Musoma Food Company as paddy off taker

in Shinyanga and the company sell rice in Tanzania and EAC countries (Uganda, Rwanda, South

Sudan and Burundi).

Through SHYRICE, MFC has improved quality of paddy procured from SHFs (This has been

achieved through contractual arrangements), accessing funds from banks (NMB) and accessing

regional markets for rice; RUDI has linked 5521 SHFs, introduced new production technologies to

rice SHFs and promoted collection of paddy from SHFs; SHFs have increased yield from 0.6mt-1.5

mt/ha under rain fed and 2.5mt-4mt/ha under irrigation systems and KIBO has increased business

networking. Among the major challenges facing SHYRICE includes export ban imposed by the

Government. In his conclusion Mr. Mpangala requested the Government to allow SHFs to export

their paddy through companies like MFL because rice has become a commercial crop in EAC

region.

Workshop participants following up presentations during the event

7

2.2.4 Question and answers

After presentations from CARI-Tanzania partners, the moderator allowed the floor to respond to the

CARI presentations by asking and commenting. The following are questions raised by participants

with their respective answers;

i) Justus Ochieng (World Vegetable Center): CARI has shown good example of how to work with

small holder farmers through Consortia supported through Matching Grant Fund. How about

sustainability after exit of the project?

Answer (Juergen Koch and Dr. Mary Shetto): Consortium works through formalized business

relationship between value chain actors which makes an approach sustainable as each part see

benefits. CARI has also been reducing support slowly and build capacity of value chain actors to

work together even after exit of the project. Furthermore, CARI is welcoming partnership to

sustain, replicate and upscale operation of value chain consortia.

ii) Justus Ochieng (World Vegetable Center): How does CARI reports yield units, in Metric Ton

per Hectare or MT/Acre?

Answer (Dr. Mary Shetto): All yields are reported in Metric Tons per Hectare for easy

comparison.

iii) Alex Mangowi (DFID): Most of the projects do not target on quality especially uniformity of rice

varieties. Are consumers of rice from CARI partners buying a cocktail of rice varieties or specific

rice varieties?

Answer (Dr. Mary Shetto-KT): The issue of quality of rice/paddy is ambiguity and farmers are

advised to get seeds from seed companies so that they can identify varieties they grow. This has

made easier to control the quality because it is the same seed (say SARO 5). But when SHFs use

local varieties it has been a challenge because of varieties mix and the same variety can have

different names in different places which pauses high likelihood of SHFs to mix the variety. The

division of Research and Development of MALF has been working to improve local rice varieties

which will be helpful in identification of rice varieties at production, trading, processing, branding

and consumption level.

iv) Ikeda Hiroyuki (JICA): What mechanism did CARI partners like SHYRICE, SHIRCO

employed to get loans from Banks like NMB for SHFs?

Answer (Dr. Mary Shetto and Rachel Ajambo-KT): Before SHFs access to loan from banks, they

are trained on GAP, farm business skills, financial literacy and contract farming and then undergo

a screening process to identify SHFs who actual qualify for loans. On the other hand, farmers

must be in registered groups, FBOs or cooperatives and sign supply contract with off takers which

act as security for banks to offer loans to them. Furthermore, there are cases like SHIRCO where

Private Agricultural Sector Support (PASS) stood as guarantor where SHFs pay a charge of 1% of

the value of loan. It was suggested for JICA to meet with CARI team and partners for more

details on SHFs financing through consortium approach.

v) Winklmaier, Alexander Michael (AfricaRice-Dar Es Salaam): How contractual arrangement

between SHFs and off-takers is made? Are the supply contracts based on the fixed prices?

Answer (Rachel Ajambo-KT): In the supply contracts that SHFs sign with off takers, the price is

fixed and farmers store their paddy in off-taker warehouse equivalent value to the loan taken from

8

the bank. The contractual price of rice is set at minimum at which off taker will buy rice if price

will go down otherwise SHFs may sell stored paddy at prevailing market price to any buyer.

vi) Mr. Suwedi Kassim (Mamboleo Farm LTD): Productivity of SHFs especially in Rufiji basin has

increased due the use of GAP promoted by CARI project. Following the export ban the

government has been imposing, where are these SHFs going to sell their paddy as this can

discourage SHFs to produce commercially?

Answer (Mr Kiranga-MALF): The question was responded by Mr Kiranga, Director of Food

Security from the Ministry of Agricultural, Livestock and Fisheries (MALF). The government

imposed the ban to assess the situation of food security in the country before allowing export. But

now, the preliminary finding of food security assessment is done and the findings show that, there

is a surplus of 3 million and 1.2 million tons of maize and rice respectively. He went ahead and

insisted that, in general the country is food secured with surplus of about 113% for cereals and

140% for non cereals. Therefore traders and Companies are allowed to export rice and maize

provided that they qualify by having export permits from the MALF and ministry of industry,

trade and investment. The director shared with participants one of the scenario that, they got

applications from 50 traders and out 50 only 13 traders had export licenses. This shows most of

traders do not have export licenses and yet want to export agricultural commodities. He called up

on all traders to follow procedures for export permit for them to be able to do cross border

trades.

vii) Abel Lyimo (RUDI/East Africa Grain Council): During the presentation from SHIRCO

consortium mentioned that SHFs access credit from Bank of Africa (BOA) through Warehousing

Receipt System. How is this working?

Answer (Rachel Ajambo): With regard to Warehouse Receipt System between BOA and SHFs,

the mechanism is SHFs bring their paddy for storage to RGL warehouses and pay the fees. Bank

of Africa provide SHFs loan of up to equal of the value of paddy stored which is collateral. Once

SHFs sell their paddy, BOA gets back their money and what remains is paid to SHFs by RGL.

2.2 Delegates remarks 2.2.1 GIZ Country Director Remarks

Dr. Regine Qualmann, GIZ Country Director welcomed the

participant and shared GIZ experience working in value chain

activities. As GIZ work in other countries of Africa, it is not a donor;

it’s a commissioning partner and provides services. GIZ once secures

a project, looks for local companies/NGOs to implement the project.

She went ahead and insisted that, GIZ does that to encourage

sustainability of the project. GIZ also works in value chain for other

commodities like cashew nut and cocoa. Furthermore, apart from

agricultural sector in Tanzania, GIZ has been working in other area

like national natural resources management in Serengeti and

Ngorongoro. In her conclusion, he mentioned CARI project as pilot

for GIZ in supporting agricultural sector in Tanzania.

Dr. Regine Qualmann, GIZ Country

Director

9

2.2.2 Permanent Secretary Remarks

The remarks of Guest of honour were given by

Mr. Kiranga, Director of Food Security on behalf

of Dr. Florens Turuka, the Permanent Secretary

of the Ministry of Agricultural, Livestock and

Fisheries (MALF). In his remarks (Appendix 3),

Dr. Turuka thanked GIZ and Kilimo trust for

innovative solution in rice value chain

development in Tanzania mentioning Value

Chain consortium approach supported by the

Matching Grants as an innovative solution which

need to be up scaled, adopted and replicated in

other crops and agricultural development

initiatives in the country. Dr. Turuka also said not

only that CARI improve farmers productivity and

quality of paddy, hence income increase through

these business relationships but also contribute in

improving food security and creating employment

opportunities for youths.

2.2.3 Vote of thanks

Dr. Mary Shetto, KT-Tanzania team leader thanked the guest of honour for the remarks and the

clarification given on the export ban issue. She also emphasized CARI-partners to make follow up of

permits and other documents required for them to export rice since rice export has been an incentive

for off-takers to offer good prices and SHFs to increasing production.

From Left to right Dr. Regine Qualmann, Dr. Mary

Shetto, Mr. Kiranga and Mr. Juergen Koch following up

presentations during the event

Participants following up remarks

Mr. Kiranga, Director of Food Security in the

Ministry of Agriculture, Livestock and Fisheries

giving remarks on behalf of Dr. Florence Turuka,

The Permanent Secretary of the Ministry

10

CHAPTER THREE

3.0 Thematic presentation and discussions

This session involved presentation of studies and experiences CARI project and rice sub-sector in

Tanzania. The session was followed by thematic group discussions.

3.1 Thematic presentations and discussions This session involved presentation of studies carried under CARI project in Tanzania. These

thematic presented were agricultural mechanization of SHFs, Household dietary diversification, Rice

processing and Tanzania rice marketing and consumer preference. Other presentations were CARI

experience with smallholder farmers financing and Policy frameworks and challenges in the rice sub-

sector.

3.1.1 Mechanization of Small Holder Rice Production in Tanzania

Eng. Isarian Mwende: The presentation was based on challenges, lesson learnt and way forward

toward mechanization from the findings of the CARI study on Mechanization of Small Holder Rice

Production in Tanzania. It was reported that the use of power-tiller has become more popular

among SHFs, however SHFs groups are still weak to venture in mechanization and machinery

services provision can be a profitable business. However, about 62% of the land is under hand hoe

cultivation. Other challenges are limited participation of private sector in provision of mechanization

services, small land holding and poor infrastructure among others. It was recommended to promote

Public-Private Partnership in improving infrastructure in like bridges, roads and drainage to make

mechanization possible and financial institution particularly Tanzania Agricultural Development

Bank (TADB) to provide mechanization credits to SHFs.

3.1.2 Household dietary diversification

Justus Ochieng: This presentation was based on part of the findings of CARI study on diet among

rice SHFs in Bahi and Mbarali district. It was reported that about 5.5% of women who are in the

reproductive age are under weight. Female headed households had lower (1.6) Dietary Diversity Scores (DDS)

for children and women compared to male headed households (2.2). Generally, the diets in the districts under

the study lacked diversity and intake of animal sources is low. It was recommended to promote SHFs in areas

where CARI project implemented to plants vegetable so that they diversify their diet.

3.1.3 Rice markets and consumer preferences

Mr. Joseph Kangile: This presentation was based on part of on preliminary results of CARI study on

rice market and consumer preference with focus on challenges, lesson leant and way forward. It was

reported that the rice market is sensitive to aroma, price, grain quality and place of origin. Rice

customers test quality by eyes, touching, feeling and smelling and 70% of rice sold in the markets was

a mix of aromatic and non-aromatic varieties. These influences malpractice of traders to oil rice to

make grains shine, mixing rice particularly local and imported rice. It was also reported that about

70% of rice sold in the market was mix of aromatic and non-aromatic. It was recommended for

traders to put more emphasis and investment on rice quality, hygiene first, products traceability,

branding and integration of local varieties into the formal seed system.

11

3.1.4 Rice processing: Rice milling efficiency and husks management

Olivier Van Buynder and Tobias Klaus: Presentation on this theme constituted of two presentations

one with more emphasis on milling efficiency and the other one on rice husks management. Both

presentations were based on preliminary findings of CARI studies on milling efficiency and rice husks

management. It was reported that most of processors have poor record keeping system (both

financial, and production); poor process management associated with poor hygiene (food safety,

personnel and storage); and poor control of moisture content and the presence of foreign matters. It

was recommended to introduce simple and effective system of recording correct data and make them

available to assist the manager in making informed decisions. It was also recommended to processors

to adopt Good Manufacturing Practices (GMPs) that will improve process management at the factory.

It was also reported presence of mountains of husk around the processing units with high opportunity

costs while processors face high electricity bills and frequent power cut. It was recommended to

processors to consider and adopt options available for management of husks from rice including

gasification, incineration, composting, construction material etc.

3.1.5 CARI experience in agricultural finance

Rogart Mmole: This presentation on SHFs financing based on CARI experience in rice sub-sector. It

was reported that CARI project promote an approach where lead Firms act as a “gateway” for

financial institutions to serve SHFs. Formal relationship through contract farming provides a market

assurance to SHFs, and hence attracts financial institutions to lend SHFs. This engagement of SHFs

requires capacity building to make them attractive to not only donor funding, but also to financial

institutions. However there have been weakness in adopting Best Business Management Practices

(BMPs) such as record keeping, financial control & monitoring and governance; poor business skills;

poor relationship – “chicken and egg” story; Little knowledge of demand and supply / broken bridge.

It was recommended to support the Lead Firms to develop and implement proper operational

manuals, such as Finance & Accounting Manual, Risk Management Policy, Marketing Strategy,

Procurement Manuals, etc; Support SHFs to form an Apex Board/Business Organization to govern

their farming businesses; Support the Lead Firms, SHFs and other MSMEs to establish a trustworthy,

accountable and transparent business relationship; Build a “strong bridge” that connects financial

institutions and “ready cooked” business partnership of Lead Firms, SHFs and other MSMEs.

3.1.6 Policy frameworks and challenges in the rice sub-sector

L.N. Salakana: This presentation provided the overview of the policy frameworks and challenges in

rice sub-sector in Tanzania. It was learnt that there has been inadequate investment in agriculture

sector that includes the rice sub-sector; Inadequate regulatory framework for investment and trade in

food crops: multiple fees- produce cess (also not harmonized) and trade-service fees, licenses, permits

& certificates; Imposition of export ban increases the costs and uncertainty for investment across the

whole RVC; Inadequate data on production, productivity and marketing and Inconsistency in

implementation of EAC Market Protocol- Zero tariff agreement to member countries (TZ rice export

to Uganda charged 18% VAT & Rwanda import ban to TZ rice). All of these needs to be addressed

by the government to make rice sub-sector profitable to all value chain actors and attractive for further

investment.

12

3.2 Thematic group discussions

This session involved group formation based on the thematic presentations. Guiding questions for

groups discussion were: Which additional interventions do you think are important? What are

associated activities? Who can do it? What can be contributed? Presentations of thematic group

discussions output were done using pin boards and output of such discussions are presented in

Appendix 4.

Thematic group discussions in action

Mechanization of Small Holder Rice Production Household dietary diversification

Rice markets and consumer preferences Rice processing

CARI experience in agricultural finance Policy frameworks and challenges in the rice

13

CHAPTER FOUR

4.0 Lessons learnt and closing remarks

4.1 Key lessons drawn

1. Rice production and mechanization

It was learnt that rice mechanization for smallholder farmers is crucial for increasing their efficiency

and expanding rice productivity. However, the level of smallholders mechanization in rice is lower

due to lack of capital and limited access to mechanization services. Engaging mechanization service

providers in value chain consortia is a business opportunity which will fast track smallholder rice

production mechanization. This will also succeed through investment in infrastructure to facilitate use

of machines, water management and irrigation.

Good Agricultural Practices (GAP) trainings with emphasis on water management technology has

made CARI interventions climate smart for rice small holder farmers especially for rain fed systems.

Furthermore, promoting small scale irrigation technology in rice and rain water harvesting will help

farmers in rain fed areas to adopt new farming technologies like System of Rice Intensification (SRI)

which require little amount of water.

2. Household dietary diversification

Dietary diversity is important in improving nutritional status particularly for women and children.

Support of CARI on complementary crops need up scaling to make sure those smallholder farmers

can improve access to other nutrients and balanced diet among rural households. Investment in water

harvesting during rain-season is important for giving farmers an opportunity to grow horticulture crops

as diversified crops after harvesting paddy for more income.

3. Rice markets and consumer preferences

Tanzania rice consumers consider aroma and appearance as the most important features when they

buy rice. Most of aromatic rice are of local varieties which produce low and their seeds are supplied

through informal seed system. Local varieties seeds improvement programmes are therefore

important for satisfying rice consumers who are willing to pay higher premiums for aroma as well as

improving profitability of farmers.

Low quality of rice due malpractices such as rice mixing and oiling have not been addressed enough

in Tanzania. Investment in branding is crucial for increasing competitiveness of Tanzania rice and

traceability of rice to prevent malpractices. Furthermore, involvement of Tanzania Food and

Nutrition Centre (TFNC) and Tanzania Food and Drugs Authority (TFDA) in addressing nutritional

and other regulations related to food business is crucial is key.

4. Rice processing: Rice milling efficiency and husks management

There has been an expansion of processors engaged in CARI value chain consortia but with

inadequate process management capacity. Building the capacity of processors on Good

Manufacturing Practices (GMPs) is crucial for them to improve their process management to quality

of their products.

Rice processing by products such as husks and bran are potential business opportunity in rice value

chain. These by-products such as bran and husks are can be used in fertilization, gas and energy

production. Capacity building for processors on husks management and use is crucial in turning such

by products into money making business.

14

5. CARI experience in agricultural finance

Formation of Value chain consortium provides an opportunity for Commercial banks to finance

smallholder farmers. Consortium model makes partners (Off-takers, input suppliers, Farmers and

Financial Institutes) work together and make profit from making business partnership. The contract

farming in the consortia provide better environment for financial institution to finance smallholders

and transforming them from subsistence to commercial farming as they are engaged in doing farming

business in assured markets.

6. Policy frameworks and challenges in the rice sub-sector

Harmonization of the Sub-sector policy interventions is necessary to ensure that rice smallholder

farmers cover their costs of production and get profit from their efforts. Unpredictable policies

interventions such as export ban disrupt investment in the sector.

4.2 Closing remark Closing remarks was given by Dr. Mary Shetto, KT-Tanzania team leader by thanking all participants

for their time and contribution which made the workshop successful. She finally welcomed all

interested stakeholders to join in up scaling, replicating and sustaining CARI project.

15

APPENDICES

Appendix 1 Workshop programme

Time Event Responsible person (s)

0800-0830 Arrival and registration All

0830-0900 Welcoming participants Juergen Koch/Mary Shetto

0900-0915 CARI in a nutshell Juergen Koch

0915-0930 Achievements of CARI Tanzania Dr. Mary Shetto

0930-0945 CARI Rice Value chain consortia: SHIRCO experience Lazaro Mwakipesile

0945-1000 CARI Rice Value chain consortia: SHYRICE expérience Stephano Mpangala

1000-1020 Discussion All

1020-1035 GIZ Country Director remarks Dr. Regine Qualmann

1035-1100 Guest of Honour remarks Permanent Secretary MALF

1100-1130 Tea break All

1130-1300 Thematic presentations Charles Ogutu

1130-1145 Mechanization of small holder rice production Isarian Mwende

1145-1200 Household dietary diversification Justus Ochieng

1200-1215 Tanzania rice marketing and consumer preference Joseph Kangile

1215-1230 Rice processing Olivier Van Buynder and

Tobias Klaus

1230-1245 CARI experience in rice smallholder farmers financing Rogart Mmole

1245-1300 Policy environment challenges within the rice sector Winnie Bashagi

1300-1345 Lunch break All

1345-1445 Thematic group discussions All

1445-1545 Groups presentations Groups representatives

1545-1600 Lessons learnt Charles Ogutu

1600-1615 Closing remarks

1615-1630 Evening tea All

1630 Departure All

16

Appendix 2 List of participants

S/No Organization Names email address

1 Africa Rice Michael Winklmaier [email protected]

2 Aga Khan Foundation Tahira Nizari [email protected]

3 Aga Khan Foundation Bashiru Nanyanda [email protected]

4 AGRA Mary Mgonja [email protected]

5 AVRDC Justus Ochieng [email protected]

6 Brazilian Embassy Paula Musso [email protected]

7 Bytrade Tanzania Ltd Rajabu [email protected]

8 Bayer Life Science Andrew Wallace [email protected]

9 Biosustain Tanzania Ltd Hassan Jaha [email protected]

10 MRA Management Association Charles Ogutu

(Moderator)

[email protected];

[email protected]

11 CRDB Shaban Maregesi [email protected]

12 Dakawa Sophia Kashenge [email protected]

13 Dakawa Joseph Kangile [email protected]

14 DFID Alex Mangowi [email protected]

15 Dalberg Jackson Mahenge [email protected]

16 FAO Morine Lwakatare [email protected]

17 G2L Albert Lugome [email protected]

18 GIZ Dr. Regine Qualmann [email protected]

19 GIZ Mr. Juergen Koch [email protected]

20 GIZ Adellah Kimambo [email protected]

21 Independent Consultant Tobias Klaus [email protected]

22 Independent Consultant Olivier van Buynder [email protected]

23 Independent Consultant Isaria Mwende [email protected]

24 IFAD Dr. Mwatima Juma [email protected]

25 JICA Ikeda Hiroyuki [email protected]

26 Kimolo Super Rice Ltd Anna Jailos [email protected]

27 Kilimo Trust Dr. Mary Shetto [email protected]

28 Kilimo Trust Rachel Ajambo [email protected]

29 Kilimo Trust Rogart Mmole [email protected]

30 Kilimo Trust Owen Nelson [email protected]

31 Kilimo Trust Ayda Kagambo [email protected]

32 MALF Mr. Kiranga [email protected]

33 MANR, Zanzibar Mr. Sheha Hamdan

(DPPR) [email protected]

34 MANR, Zanzibar Ms. Maryam Juma

Abdulla [email protected]

35 Mamboleo Farm Ltd Suwedi Kassim [email protected]

36 Musoma Food Company Ltd Stephano Mpangala [email protected]

37 Musoma Food Company Ltd Annuciata Tegete [email protected]

38 Musoma Food Company Ltd Said Tangawizi [email protected]

39 MATI Uyole Eng. Godwin [email protected] ;

17

S/No Organization Names email address

Mwamkinga [email protected]

40 NAFAKA Tom Carr '[email protected]'

41 NMB John Machunda [email protected]

42 Raphael Group Ltd Lazaro Mwakipesile [email protected]

43 Raphael Group Ltd Ziana Suleiman [email protected]

44 RUDI / East Africa Grain

Council Abel Lyimo

[email protected];

[email protected]

45 Rice Council of Tanzania Leonsia Salakana [email protected]

46 Rice Council of Tanzania Julius Wambura [email protected]

47 SAGCOT Centre Geoffrey Kirenga [email protected]

48 Syngenta Samuel Muturi [email protected]'

49 TPSF Rehema Mbugi [email protected]

50 World Bank Neema Mwigu [email protected]

51 WFP Ananth Raj [email protected]

52 YARA William Ng'eno [email protected]

53 SHYRICE Annuciatha Makilagi [email protected]

54 YARA Alexanda Mowasho [email protected]

55 Bytrade Tanzania Ltd Harish Dhutia [email protected]

56 AGRIinsight Fredrick Kitchen [email protected]

18

Appendix 3 Guest of honour remarks

Opening Remarks by Dr. Florens Turuka,

The Permanent Secretary for Ministry of Agriculture Livestock and Fisheries on Competitive African

Rice Initiative (CARI) National Learning Event, 30th September 2016

GIZ country Director, Dr. Regine Qualmann

Representatives of Embassies,

Development partners,

Private and Public Institutions

CARI Tanzania Team Leader-Dr. Mary Shetto

CARI Tanzania Component Head - Mr. Juergen Koch

Dear participants

Ladies and Gentlemen; Let me start by thanking the organizers of today’s event, for giving me the

honour to open this national workshop of the Competitive African Rice Initiative (CARI) in Tanzania. I also thank GIZ for supporting CARI project in Tanzania and Kilimo Trust for leading

the implementation of CARI in Tanzania. I have followed up on the progress on the implementation

of CARI and I am pleased to say the approach and achievements made so far by CARI project in

Tanzania is encouraging especially the intervention on ensuring smallholder farmers access to market

and finance.

Ladies and Gentlemen; As most of you know, Rice is one of the commodities and value chain

prioritized by the Government. One of the major challenges in agricultural sector development

programmes includes the question of how to support smallholder farmers to commercialize their

farming by linking them to services, inputs/output market and finance. On this issue, CARI has

introduced and implemented innovative solutions to rice value chain development in Tanzania.

CARI has facilitated coordination of rice value chain actors through formation of consortia supported

with matching grants. CARI is targeting about 40,000 smallholder farmers through its eight consortia,

namely: Shinyanga Rice for competitive market led by Musoma Food Company LTD; Sustainable

Rice Production in Singida led by Biosustain Company LTD; Promoting Bahi Rice – Dodoma

Region led by Kimolo Super Rice LTD; Southern Highland Rice Consortium led by Raphael Group

LTD; Mbarali Rice Consortium led by G2L Company LTD; Smallholders Crop Finance Kilombero

led by Kilombero Plantation LTD; Rice Market Hub, Rufiji led by Mamboleo Farm Limited and

ZANRICE led by the Ministry of Agriculture and Natural Resources of the Revolutionary

Government of Zanzibar. In its interventions they are training farmers and link them to services,

inputs/output markets and finance. Preliminary results show great achievements. Not only that CARI

improve farmers’ productivity and quality of paddy, hence income increase through these business

relationships but also contribute in improving food security and creating employment opportunities

for our youths.

Ladies and Gentlemen; The government is always working to support smallholder farmers to

improve their productivity and farm income. For example, in year 2015/2016 the government

19

provided input subsidies through voucher systems to 999,926 farmers to access fertilizer and quality

seeds for maize and rice. In the year 2016/17 budget, the plan is to ensure availability of 400,000 tons

of fertilizer, 40,000 tons of quality seeds of cereal crops including paddy. The government is also has

provided 64 combine harvesters, 36 paddy threshers and 16 reapers in 14 irrigation schemes in

Babati, Mbarali, Meru, Kilombero, Mwanga, Hai , Iringa rural, Mvomero, Korogwe and Bagamoyo.

Preliminary analysis shows that mechanization of rice harvesting and post-harvest handling increases

yield from 20 bags to 25 bags per Hector. Also, in 2015/16 the Agricultural Input Trust Fund

(AGITF) provided loans for 66 new tractors, 2 power tillers, 6 irrigation facilities, 1 combine

harvester and 1 processing machine. These are few among many efforts done by the government and

development partners but still the sector development needs more initiatives to take Tanzania to

industrialized economy through agriculture.

Ladies and Gentlemen; With all government supports for smallholder farmers, it is well known that

still most of our farmers do not have access to mechanization machines or services and the

government input subsidies and support is limited to few farmers due to budget constraint. In

addition, smallholder farmers have limited access to financial services due to the fact that smallholder

farmer is perceived to be risky which makes most of lenders shy away. I therefore appreciate the

effort of private sector initiative under CARI to link and make it possible for farmers to access finance

as guarantee market solutions to farmers which has always been a challenge.

Ladies and Gentlemen; The Government has recently launched Tanzania Agricultural Development

Bank (TADB) from which the opportunity for accessing finance for farmers and other value chain

actors has been expanded. An experience we draw from CARI value chain consortia approach

convince all stakeholders including agricultural banks that if business relationships are strengthened

smallholders farmers are creditworthy. It is now my call for CARI matching grant partners to take

opportunities from TADB to finance farmers inputs as well as accessing working capital for

expanding investments.

Ladies and Gentlemen; As you all might be aware that Tanzania is the largest producer and consumer

of rice in the EAC, and the regional market demand is also expanding. This is therefore an

opportunity for Tanzania SMEs and farmers to tap; and CARI has demonstrated good approach of

how to link our smallholder farmers through off-takers to EAC regional and nearby countries market

through consortium approach.

I want to assure you that the Government is always opening door for private sector investment in

agricultural sector and partnerships. More efforts will be towards improving irrigation infrastructures,

marketing and communication infrastructures, rural electrification and providing good policy

environment for investment in agriculture sector and supporting smallholder farmers.

Ladies and gentlemen; This CARI national workshop is also an opportunity to share experience and

learn from one another. Let me take this opportunity to ask all participants of this workshop to think

of how we can provide inputs for improving, replicating and sustaining CARI benefits to more

farmers and other actors in the rice value chain.

Ladies and gentlemen; with these few remarks, it is now my pleasure and honour to officially launch

this CARI national workshop and wish you fruitful discussion and deliberations.

THANKS FOR YOUR ATTENTION

ASANTENI SANA.

20

Appendix 4 Thematic discussions output

Thematic

group

Intervention Activities proposed Who can contribute How to participate

(Contribution)

Mechanization

of Small

Holder Rice

Production in

Tanzania

Mentality

transition away

from subsistence

farming

Training on Business skills FAO

Kilimo Trust

Government

Lead farmers as example

of success

Private companies

NGOs

Attracting more funds

Recruitment of Agric.

mechanization experts

Fostering

adoption of

mechanization

Promotion of products

Market research

Financing mechanization

Provision of Machine hiring services

Machines manufacturers

and distributers

Financial Institutions

Local

businessmen/women

Agric mechanization trade

shows,

SHFs trainings through demo

Provision of loans

Collective purchase and hiring

Improving level of

mechanization

Off takers export Contract farming

Maintenance service

Training SHFs groups on adopting

depreciation cost concept

Improving farm infrastructures e.i. farm leveling, drainage and roads

RCT

Government

Manufacturers

VETA

Local mechanics

Lobbying:- lifting export bans

and minimizing government

interventions,

Mechanization workshops,

Financial management training

Household

dietary

diversification

Rice-vegetable

integration

Creation of awareness on nutrition

issues

Up scaling CARI

Kilimo Trust and GIZ

Africa Rice

World Vegetable Centre

Research Institutions

Collaboration in attracting funds,

Public Private Partnership (PPP)

Behavioral change

communication

Training on importance of nutrition

Promoting home vegetable gardening

Further study in dietary diversity

World Vegetable Centre

CARI/Kilimo Trust

21

Thematic

group

Intervention Activities proposed Who can contribute How to participate

(Contribution)

Rice markets

and consumer

preferences

Stopping rice

oiling and

ensuring quality

rice is traded

Creating awareness to millers and

traders

Study on health related effects the

practice

TFDA

TFNC

Millers

Traders

Support training millers and

traders on rice quality control

and standards

Rice branding Investment of packaging and quality

control

Millers

Traders

Packages manufactures

Development partners

Building capacity of processors

to brand their rice

Quality

traceability

Investing on packaging

Branding to ensure good quality rice

branded

Millers

Traders

Government

Development partners

Ensuring rice traded in the

market can be traced back its

origin

Rice value

addition

Market research (target and

segmentation)

Capacity building

Investment analysis

Millers

Farmers

Development partners

Research Institutions

Collaboration of actors through

Public Private Partnership

Contract farming Capacity building Off takers

Extension agents

Development partners

Support ToTs for SHFs

contract farming

Improving scheme/FBOs

management

Extension agents

Farmers

Support building capacity of rice

SHFs FBOs management

Rice

processing:

Rice milling

efficiency and

husks

management

Quality control At farm level;

Rice moisture control (use of moisture

meter)

Training SHFs on drying management

Farmers

Extension staffs

Off takers

Supporting training SHFs

At processing level;

Train on quality control and

improving hygiene

TFDA

RCT

Processors

Improving hygiene and quality

control at processing level

22

Thematic

group

Intervention Activities proposed Who can contribute How to participate

(Contribution)

Improving

processing

management

Training on record keeping

Improving data management

Train to structure and access data on

costs, quality, maintenance and

investment

Processors

Business development

service providers

Provision of support and

training on plant management

and data collection

CARI

experience in

agricultural

finance

Capacity building

on financial

literacy at SHFs

level

Attract Business Development Service

providers specialized in SHFs

financial literacy

CARI

FIs

Support ToTs in financial SHFs

literacy

Capacity building

of on financial

literacy at

Financial

Institutions level

Building capacity and competence of

FIs to deal with agricultures sectors

CARI

FIs

Business Development

Service providers

Training FIs on agricultural

financing

Strengthening

Farmers Business

Organizations

(FBOs)

Forming well organized FBOs

Incubating FBOs to grow

CARI implementing

partners

District Councils

Support preparation of Business

Plans and MEMARTs for FBOs

Provision of incentive/grants

Identifying

potential financial

solution for entire

value chain (value

chain financing)

Reviewing crosscutting value chain

price structure

CARI implementing

partners

FIs

Review and recommend ways of

improving value chain financing

products

Identifying

suitable means of

risks mitigation

strategies

Identify and classify risks

Identifying pilot Agricultural

Insurance products

Matching insurance products with

SHFs needs

CARI implementing

partners

Insurance companies

Review and convince the entry

of Insurance companies

23

Thematic

group

Intervention Activities proposed Who can contribute How to participate

(Contribution)

Policy

frameworks

and challenges

in the rice sub-

sector

Creating enabling

business

environment

Improving rice production and

marketing efficiency

Government Improving rice production and

marketing infrastructures i.e.

roads, railways, irrigation

systems, electricity etc.

Strategic decision

to export ban

Getting real time data so as to make

evidence-based decisions

Top-down and Down-top

communication flow

Government

RCT

Traders

Farmers

Government make decision

based on farmers situation

Food crops export

requirements

(license, permits,

certification etc) in

“one stop shop”

for TFDA, TBS,

TCCIA, MALF

etc.

Establishment of one stop shops Government and

agencies concerned

Support establishment one stop

shops for all services in strategic

areas

Investment in

Research and

Development

Improving understanding of rice

production and market

Research Institutions Conducting more market

research

24

Contacts

Kilimo Trust Tanzania

Plot 455, Avocado Street, Kawe

P.O.BOX 106217

Dar-es-Salaam, Tanzania

Tel: +255 22 278 1299

Website: www.kilimotrust.org

Email: [email protected]