TBL, IFC, and COPRA promote a contract farming framework
Tanzania Press Release – 24 April 2024
TBL, IFC, and COPRA promote a contract farming framework and action plan to facilitate financing to farmers and supply chain and to help position Tanzania as a sustainable food basket for the region
A well-functioning market can boost agricultural production, economic growth, and job creation
24 April 2024, Dodoma, Tanzania: Tanzania Breweries (TBL), International Finance Corporation (IFC), and the Cereals and Other Produce Regulatory Authority (COPRA) have come together to help Tanzanian farmers to realize their potential to feed, people, factories, and trade in the region through enhanced farmer contracts.
The partners hosted a stakeholder engagement event yesterday to review, validate, and submit recommendations to the Government of Tanzania to enable enhanced contractural and marketing arrangements valuable to facilitate financing and investments to farmers and to other supply chain actors along the value chain, in particularly for food crops such as wheat, sunflower, soya, etc.
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The drive for the partnership is that despite the potential for Tanzania to be a regional food basket and to link farmers with local and regional industries for crop commodities for value addition and processing, capacity challenges within and along the supply chain limit this from happening. These challenges are largely caused by low access to finance and capital for farmers, particularly for agriculture production, and for agriculture infrastructure investments necessary to increase productivity and reduce post-harvest losses. The proposed framework and action plan promoted by the partnership offers to address the capital and access to finance constraints and to onboard more farmers and off-takers into contract farming arrangements, facilitate supply chain investments, and boost cereals and other crops production.
The malt barley value chain in Tanzania offers the first pilot for the enhanced model of working as facilitated by the partnership.. The crop is facing significant demand growth from TBL which is expanding its malting operations plant in Kilimanjaro region that will boost demand to over 25,000tons per year from current supply of 3500 tons per year (a close 10X growth). The sector currently faces various challenges, including low production and investment, inconsistent quality, poor coordination among players, limited farmer participation, shortage of suitable land, inadequate research and infrastructure, weak contractual arrangements, and import/export challenges. The proposed contractural framework serves to be the solution for the sector as the necessary “tool” to enable the sector to meet the growing market demand.
To help implement the malt barley pilot, the event also validated a strategy for barley sector actors to meet the 10X market demand by leveraging the proposed contractual framework. The related agreed roles, responsibilities, and actions will define a “barley compact” or action plan for sector stakeholders that will serve as a foundation for further development and refinement through ongoing collaboration.
The event is an extension of a four-day design workshop that convened experts and practitioners to draft the framework for improved contract farming and strategy for meeting barley demand. The design team included representatives from government ministries, agencies, regulatory authorities, financial institutions, and associations.
This is the first such partnership to to facilitate contractual and marketing arrangements frameworks in Tanzania and offers value and impact for the partners and stakeholders::
Michelle Kilpin, Tanzania Breweries Limited Managing Director, said, “TBL’s drive to source its barley locally is coinciding with market developments in Tanzania that will make it possible to scale from sourcing 3,500 tons of barley to more than 20,000 tons of barley from as many farmers as possible. However, pivoting from the current volumes to the target volumes will require changes in marketing arrangements to facilitate investments in the supply chain quality and capacity, using digital tools to increase efficiencies and transparency, access to finance for farmers and others across the supply chain, as well as inclusiveness and sustainability.”
Irene Madeje Mlola, Director General of COPRA, said: “The establishment of COPRA, along with events such as this validation aims to strengthen the performance of agriculture markets and relationships along the agricultural supply chain, particularly for cereals, which form the basis for food crops in Tanzania and the region. COPRA remains resolute in its commitment to leveraging collaborative synergies, addressing critical gaps, and enhancing the crops under the authority's jurisdiction. "The contract farming framework and barley strategy are positive outcomes of the workshops conducted in collaboration with stakeholders."
Mr Sam Nganga at IFC, said: “We are interested in fruitful and impactful PPP initiatives and private sector investments in agriculture that drive development through increased food security, growth in farmer income, more local value addition and processing , and create jobs. Beyond providing capital, IFC’s potential involvement will include assessing market, environmental and social conditions, supporting TBL to engage with farmers and others along the supply chain, and assisting COPRA with the design and rollout of a market system and digital tools.”
Hon. Hussein Bashe Ministry of Agriculture, said: “The Ministry of Agriculture welcomes a multi-stakeholder led approach to the development of a strategic barley roadmap for Tanzania. We are supportive of this meeting among stakeholders and experts to identify and map the economic and societal impacts of barley and encourage the active production of barley. This will be a blessing to farmers The mission aimed to assess the production capacity and the supply chain for barley in Tanzania, specifically in the main barley growing regions Arusha and Manyara.”
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About the Cereals and Other Produce Regulatory Authority (COPRA)
The Cereals and Other Produce Regulatory Authority (COPRA) was established through the Cereals and Other Produce Act (2009) to develop and oversee those crops which do not have a dedicated crops board. However, COPRA was officially set up in 2023. Our Vision is the commercialisation of Tanzania's food systems to catalyse growth and resilience. As an authority, COPRA conducts activities across three key functions along the value chain: development of standards and standard setting; enforcement and quality assurance; coordination along the value chain; and advice to the Minister of Agriculture on policy-related matters.#COPRA #ShirikishaBoreshaEndeleza #LishaTaifaLishaDunia
About the International Finance Corporation (IFC)
IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
About Tanzania Breweries Limited
Tanzania Breweries Public Limited Company (TBL Plc) is Tanzania’s first and oldest brewery. Established in 1933 as Tanganyika Breweries, we are a proud member of the AB InBev Group of companies, the largest brewer in the world. We operate breweries in Dar es Salaam, Arusha, Mwanza and Mbeya, a distillery in Dar es Salaam and eight depots across the country.
TBL Plc has a portfolio of over 15 brands, which include Safari Lager, Kilimanjaro Premium Lager Kili Lite, Castle Lite, Castle Lager, Balimi Lager, Flying Fish, Safari Double Malt, Redds Premium Cold, Bia Bingwa, Eagle Lager, and Grand Malt. Other prominent brands associated with TBL Plc are Konyagi Gin, Valeur Brandy, Zanzi Cream Liqueur, and Dodoma and Imagi Wines.
TBL is also a Sustainable business dedicated to inspiring and empowering consumers to create a Better World. This is because building a better world is a task that can only be achieved when we work together, even when we’re at a distance.
