TANZANIA - International Trade _final.pdf · PDF fileTANEXA Tanzania Exporters Association TCCIA Tanzania Chamber of Commerce Industry and Agriculture TIC Tanzania Investment Centre

TRADE IMPACTFOR GOOD

TANZANIA

HONEY SECTOR SYNTHESIS REPORT & DEVELOPMENT ROAD MAP

DECEMBER 2014

The designations employed and the presentation of material in this document do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

This document has not formally been edited by the International Trade Centre.

TANZANIA

HONEY SECTOR SYNTHESIS REPORT & DEVELOPMENT ROAD MAP

Geneva, december 2015

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This value chain roadmap was developed on the basis of technical assistance of the International Trade Centre ( ITC ). Views expressed herein are those of consultants and do not necessarily coincide with those of ITC, UN or WTO. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited my ITC.

The International Trade Centre ( ITC ) is the joint agency of the World Trade Organisation and the United Nations.

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Digital images on cover (CC BY-SA 2.0) : 1-Don Hankins 2-Bob Peterson; 3-Vicky Brock

Street address : ITC, 54-56, rue de Montbrillant, 1202 Geneva, SwitzerlandPostal address : ITC Palais des Nations 1211 Geneva, SwitzerlandTelephone : + 41- 22 730 0111Postal address : ITC, Palais des Nations, 1211 Geneva, SwitzerlandEmail : [email protected] : http :// www.intracen.org

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CONTENTS

Abbreviations v

INTRODUCTION vi

1. GLOBAL DEMAND 3

2. REGIONAL DEMAND 4

3. NATIONAL DEMAND 4

4. GLOBAL 5

5. REGIONAL 5

6. NATIONAL 6

7. PRODUCTION 7

8. PROCESSING AND QUALITY 8

9. TRADING ( TERMS AND CONDITIONS ) 8

10. PRIVATE SECTOR ( INDIVIDUALS ) 11

11. BEEKEEPING GROUPS 11

12. BEEKEEPERS COOPERATIVES 11

13. BEEKEEPERS AND TRADERS / PROCESSORS AGREEMENTS 11

14. TANZANIA HONEY COUNCIL 12

15. OBJECTIVES OF THE HONEY TRADE DEVELOPMENT ROAD MAP 13

16. LIST OF SUPPORT DOCUMENTS FOR THE WORKSHOP 14

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FIGURES

Figure 1 : Secondary stakeholders in honey sector 10

TABLES

Table 1 : World Imports of Natural Honey ( All Types in Metric Tons ) 3

Table 2: Honey sub-sector, Tanzania, October 2014 16

Strategic objective number 1 : Increase quantity and quality of bee products complying with international standards 24

Strategic objective number 2 : Create access to relevant markets, disseminate market information and make the Tanzania honey visible at international markets 26

Strategic objective number 3 : Improve and strengthen honey sector organization and inter-professional communication 28

Strategic objective Number 4 : Provide adapted financial services to support producers and exporters capacities 29

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ABBREVIATIONS

The following abbreviations are used:

AMAGRO Association of Mango Growers

BEET Beekeepers for Economic Empowerment for Tanzania

CIF Cost Insurance and Freight

EU European Union

GS1 Global Standard 1

HACCP Hazard Analysis & Critical Control Points

ICBT Informal Cross Border Trade

ITC International Trade Centre

LGA Local Government Authority

MMA Match Maker Associates

MIT Ministry of Industries and Trade

SIDO Small Industries Development Organisation

SMEs Small and Medium Enterprises

SUA Sokoine University of Agriculture

TANEXA Tanzania Exporters Association

TCCIA Tanzania Chamber of Commerce Industry and Agriculture

TIC Tanzania Investment Centre

TFDA Tanzania Food and Drugs Authority

TFS Tanzania Forest Services

THC Tanzania Honey Council

TRA Tanzania Revenue Authority

TSI Trade Support Institution

VETA Vocational Education and Training Authority

UN United Nations

UNDP United Nations Development Programme

ZSTC Zanzibar State Trading Company

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INTRODUCTION

This road map is produced as a part of Promoting Intraregional Trade in Eastern Africa project funded by the Government of Finland. The project focuses on increasing ex-ports from Kenya, the United Republic of Tanzania and Zambia. The three-year project launched in December 2013 is implemented by the International Trade Centre together with lead organizations in each country : the Export Promotion Council in Kenya, Small Industries Development Organization ( SIDO ) in the United Republic of Tanzania and Zambia Development Agency in Zambia. Enterprises working in the honey, mango and spice sectors are set to expand and become more competitive through this project. The objectives of the project are to increase the export competitiveness of small and medium-sized enterprises ( SMEs ) in selected agri-food value chains and to enhance the services delivered to SMEs by trade support institutions. In Tanzania ITC is working with local partners who include SIDO, Association of Mango Growers ( AMAGRO ), Tanzania Honey Council ( THC ) Ministry of Natural Resources and Tourism ( Forestry & Beekeeping Department ), Tanzania Forest Services and Zanzibar State Trading Corporation ( ZSTC ) to address values chain gaps in the honey, mango and spices sectors.

This roadmap is produced to serve as a as guide for long-term sector development efforts of the honey sector in the United Republic of Tanzania. It addresses specific gaps identified to affect the development of the sector :

Low productivity in beekeeping practices Low or lack of business mind-set among the beekeepers Lack of differentiated products Inconsistencies in quality of processing and packaging Varied quality of packaging materials Lack of innovation Testing and certification regimes not harmonized and time consuming Private standards in the importing countries Poor trade facilitation Training on Entrepreneurship Uncoordinated training packages and delivery to beekeepers / processors Poor information provision and market linkages

The data used in this document has been confirmed by heads of the selected Trade Services Institutions ( TSIs ) shows that despite huge export market in the region and in the world, Tanzania has not been able to benefit from that opportunity by selling high volumes of honey and spices. Indeed, the exports of honey have been on decline in the past four years.

Data availability on the national production of honey is limited. The data estimated that the potential of production of honey based on forestry area was 138,000 Metric tons of honey and 9,200 tons of beeswax per year. Forestry area has reduced over the years and hence capacity of production must have also reduced. Likewise the data for actual production of honey and beeswax is also not properly kept. The Ministry of Natural Resources & Tourism estimated that in 2011 annual production was 9,380 MT of honey worth the value of USD 17.1 million, ( TZS 27 bill ) and average of 625.3 MT of beeswax worth USD 1,875,900 ( TZS 2,813 bill ) was produced, which is 7 % of the national potential. What is clear is that the national potential for production of honey and beeswax is huge and production is way below the potential ( MMA, 2013 ).

This work is based on previous work done in the United Republic of Tanzania in honey sector in recent years.

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Following reports have served as background material in the development of this roadmap :

i. Business Care Services Limited, ( 2006 ), Sector profiling reportii. Match Maker Associates Limited, ( 2007 ), Honey and beeswax value chain analysisiii. Valery Ngatigwa, ( 2007 ), Assessment of traceability and quality discrepancies in

the honey and beeswax supply chain in Tanzaniaiv. MNRT & TBS, ( 2014 ), Position paperv. Peter Widmer, ( 2010 ), The Competitive Position of Tanzanias honey industry vis--vis

other producing nationsvi. Match Makers Associates Limited, ( 2013 ), BTC Kigoma Value Chain Report,vii. Josefynne Miingi-Kaiza and Vianey Rweyendela, ( 2013 ), Baseline Report for

Beekeepers for Economic Empowerment Tanzania Project ( BEET ) implemented by Traidcraft

viii. Arbogast G. Mbeiyererwa, ( 2014 ), Honey value chain mapping in Njombe and Siha districts

ix. S. Wren et al, ( 2014 ), Report on the global trade in bee-products, buyers and the distribution channels for selected products, including value chain activities in the selected products for Tanzania

Photo: (CC BY-SA 2.0) toholio, Capped and uncapped honey.jpg

DEMAND AND MARKET FOR TANZANIAN HONEY 3

DEMAND AND MARKET FOR TANZANIAN HONEY

1. GLOBAL DEMANDThe global demand for honey and beeswax and other products has been increasing over the past 10 years. The report titled Honey : A Global Strategic Business Report by Global Industry Analysts, Inc., proposes that the global market for honey is projected to exceed 1.9 million tons by the year 2015. This is primarily driven by increasing awareness levels and health consciousness among the consumers, leading to increasing demand for healthy and natural food products. The increasing trend of organic and healthy spreads is expected to continue giving rise to new variants and flavors in the global honey market. Increasing preference among consumers for honey-based products, is leading to a boost in the variety and assortment of honey based food products, baby products, yogurts and drinks. Moreover, honey contains antioxidants, minerals, vitamins and proteins, making itself an appealing ingredient as compared to artificial sweeteners.

The major consumers and importers are the industrialized countries, led by Germany, Japan, USA and UK ( fao.org, 2014