MAPPING OF PRIVATE INVESTMENT IN THE LIVESTOCK SECTOR

IN TANZANIA

FINAL REPORT

By

Prof. Martin N. Shem

SUBMITTED TO

AGRICULTURAL NON-STATE ACTORS FORUM (ANSAF)

Table of Contents
Executive Summary ...................................................................................................................................... 4
Acknowledgements ....................................................................................................................................... 7
Acronyms and abbreviations......................................................................................................................... 8
1.0. Introduction ............................................................................................................................................ 9
1.1. Background of the Study ................................................................................................................... 9
1.1.1. Objective of the study ................................................................................................................. 9
1.1.2. Scope of the study ....................................................................................................................... 9
1.2. Approach and Methodology............................................................................................................. 10
1.3. Limitations ....................................................................................................................................... 10
1.4. Report Organization ......................................................................................................................... 10
2.0. Overview of the Livestock Sector in the EAC ..................................................................................... 11
2.1. The Importance of the Livestock Sector in the EAC ....................................................................... 11
2.2. EAC Policy and Regulatory Issues .................................................................................................. 13
2.3. Institutional issues ................................................................................................................................ 14
2.3.1. Land tenure and livestock mobility challenges ......................................................................... 14
2.3.2. Credit access ............................................................................................................................. 15
2.4. Institutional capacity .................................................................................................................... 15
2.5. Livestock marketing policies ....................................................................................................... 15
3.0. Livestock Production in Tanzania........................................................................................................ 16
3.1. General Overview ............................................................................................................................ 16
3.1.1. Agro-pastoralism....................................................................................................................... 16
3.1.2. Pastoralism ................................................................................................................................ 17
3.1.3. Commercial livestock production ............................................................................................. 17
3.2. The Livestock Value Chains in Tanzania ........................................................................................ 18
3.2.1. The Red Meat Value Chain in Tanzania ................................................................................... 20
3.2.2. Dairy Value Chain .................................................................................................................... 24
3.2.3. Pig value chain .......................................................................................................................... 29
3.2.4. The Poultry Value Chain........................................................................................................... 30
3.3. Interventions on value-chain financing ............................................................................................ 32
4.0. Key Challenges and Knowledge Gaps ................................................................................................. 35
4.1. Productivity challenges .................................................................................................................... 37
4.1.1. What Has Already Been Done on the Identified Challenges .................................................... 38
4.1.2. What has already been done on the identified challenges......................................................... 40
4.1.3. Knowledge gaps ........................................................................................................................ 41
4.2. Handling and Processing Challenges ............................................................................................... 41
4.2.1. Challenges ................................................................................................................................. 41
4.2.2. What has already been done on the identified challenges......................................................... 42
4.2.3. Knowledge gaps ........................................................................................................................ 44
4.3. Marketing and Trade ........................................................................................................................ 44
4.3.1. Challenges ................................................................................................................................. 44
4.3.2 What has already been done on the identified issues ................................................................. 46
4.3.3 Knowledge gaps ......................................................................................................................... 47
4.4. Cross-cutting Institutional and Policy Issues ................................................................................... 47
4.4.1. Challenges ................................................................................................................................. 47
4.4.2 What has already been done on the identified issues ................................................................. 48
5.0. Conclusion and Recommendations ...................................................................................................... 49
5.1. Conclusions ...................................................................................................................................... 49
5.2. Recommendations ............................................................................................................................ 50
References ................................................................................................................................................... 51
Annexes ...................................................................................................................................................... 53
Executive Summary
Estimates made using available statistics of livestock, average rates of off take and world prices
gives a total value of annual trade in livestock and livestock products in East Africa at about US$
5 billion. If realized, this would be about 12% of the reported GDP of the EAC member
countries combined. Given that there are case studies which show that the current statistics on
livestock could be an under-estimate, it is clear that a significant proportion of wealth in East
Africa is held in the form of livestock.

The purpose of the mapping study was to profile the private investment in the livestock sector in
Tanzania and the region and to assess the level of investment, its impact and identify the missing
links and opportunities along the beef and dairy cattle, pork, small ruminants and poultry value
chains. The Mapping study was therefore designed to undertake the following:

1. Analysis of value chains and key Stakeholders - starting with the key livestock types
and products followed by preliminary mapping of the main value chains as well as the
stakeholders/actors in these chains;
2. Articulation of challenges faced by the different Stakeholders – through key
informant interviews with individuals and focus groups; and
3. Validation of identified challenges – by assessing which of the challenges identified by
stakeholders and what has been done to solve them.

To deliver these outputs, data collection included review of existing documents and stakeholder
interviews. Documents reviewed included published materials and grey literature obtained from
different stakeholders in the public and private sector. Interviews of stakeholders were conducted
through e-mail, telephone and personal interviews guided by a checklist developed for this
purpose. The interviews covered all relevant stakeholders in the livestock sector/value chains
including input suppliers, producers and their associations, processors and their associations,
traders and their associations, consumers, livestock boards, NGOs involved in livestock
development, local government officials and government ministries responsible for livestock
development.

The findings show that, stakeholders are concerned by four clusters of challenges:

1. Productivity challenges: which were mainly raised by traders, processors, retailers, and
consumers, whose principal concerns related to volumes, timing and quality of livestock
and livestock products available in the market. On the other hand, the producers
presented productivity issues in terms of poor incentives to invest in the improvement of
productivity due to low returns, drought problems, and unavailability and high costs of
necessary inputs.
2. Handling and processing challenges: there was a strong contradiction between the
views of producers on one hand, and other actors on the handling and processing issues.
The producers mainly identified inadequate facilities for handling and processing of
 livestock products, while processors considered the main problem to be the inadequate
and low quality supply of raw material to fully utilize installed capacity. The main
consequence has been a vicious cycle where few investors are attracted to invest in
handling and processing facilities for fear of low capacity utilization, while producers are
reluctant to increase production because of perceived low off-take.
3. Marketing and trade challenges: Both productivity, and handling and processing issues
were perceived as factors limiting marketing and trade. Other issues raised included the
informality of livestock trade, high transaction costs, inadequate supportive
infrastructure, heavy taxation, lack of classification and grading systems, poor hygiene of
most outlets (the main issue raised by consumers), unfair competition from imported
products, and limited business management capacity along the value chain. Interestingly
almost all issues focused on national and regional trade, and rarely on international export
trade. It is also notable and informative that nearly all the actors along the chain raised
the issue of limited demand for livestock products as a major constraint.
4. Cross-cutting institutional and policy challenges: nearly all stakeholders were of the
opinion that most of the constraints facing the livestock sector are not being addressed
due to a weak institutional framework, mainly caused by limited implementation of
policy.

The findings of the study show that there are many challenges and that some efforts in the region
to deal with these challenges. However, most of these interventions have not succeeded
Secondly; there has apparently been poor integration of different projects and programs leading
to duplication and gaps. Thirdly and most importantly, is the poor vertical integration of the
value chains. For example, there is very little knowledge of the dynamics of markets and the
acceptable grades and standards for livestock and livestock products.

In view of the findings of this study, it is recommended that a Strategic Study should be carried
out to quantify the final markets (national) for livestock and livestock products in East Africa
and develop baseline data for planning. The specific objectives will be to:

1. Identify the most important segments of the markets of final products for major livestock
products. For example, for traditional chicken they comprise live birds, dressed meat, fast
cooked meat, certified organic meat or eggs, and so on;
2. Determine and quantify the distinctive characteristics of each of these market segments
such as market size and growth projections.
3. Determine the Critical Success Factors (CSFs), such as price, quality, differentiation,
branding and volatility, for each segment.
4. Benchmark chain efficiencies, with respect to the ability of the chain to meet the CSFs
which it confronts in its final markets.
5. Identify priority investments by the private and public sector needed to facilitate the
performance of various value chains for the livestock products with the brightest future in
terms of market size and growth.
Acknowledgements

This document is a result of work and consultations with several stakeholders in Tanzania. I am
grateful to all stakeholders including Government Officials, individuals and institutions that contributed
information and data through interviews, discussions and valuable suggestions on how the livestock
sector can be improved to benefit the poor in Tanzania. I am very grateful to the research Assistants
Mr. Issack Nziza and Mr. Peter and Ms. Ester Olutu for a commendable job of collecting all the
valuable grey literature and field data in the target livestock corridors. I wish to thank Mr. Audax
Rukonde and the rest of the ANSAF staff for the invaluable support and patience. Finally, I wish to
express our sincere thanks to all our partners and associates who in one way or the other contributed to
the success of this assignment.
Acronyms and abbreviations

ANSAF Agricultural Non-State Actors Forum

AU/IBAR African Union/ Inter African Bureau for Animal Resources
AHW Community Animal Health Worker
CBO’s Community Based Organizations
CBPP Contagious Bovine Pleuropneumonia
CYMMIT International Maize and Wheat Improvement Center
EAC East African Community
FAO Food and Agriculture Organization
FMD Foot and Mouth Disease
HPI Heifer Project International
IFPRI International Food Policy Research Institute
ILRI International Livestock Research Institute
KCC Kenya Creameries Company
LGA Local Government Authority
NAIC National Artificial Insemination Centre
NGOs Non-Governmental Organization
SACCOs Savings and Credit Associations
SMEs Small and Medium Enterprises
TAD’s Trans boundary Animal Diseases
UHT Ultra High Temperature processed milk
CAADP Comprehensive African Agriculture Development Programme
EADD East Africa Dairy Development
GDP Gross Domestic Product
TA Trust Africa
1.0. Introduction

1.1. Background of the Study

This mapping study was carried for the Agricultural Non-State Actors Forum (ANSAF) and
Trust Africa (TA) under their two-year project on strengthening livestock policy advocacy in
Tanzania supported by Bill and Melinda Gates Foundation (BMGF). The purpose of the mapping
study was to profile the private investment in the livestock sector in Tanzania and the region and
to assess the level of investment, its impact and identify the missing links and opportunities
along the beef and dairy cattle, pork, small ruminants and poultry value chains. The TORs for the
assignment are attached (Annex 1).

1.1.1. Objective of the study

The objective of the study was to assess small scale livestock keeper’s investments as a way of
quantifying local contribution to the incomes and national development for the sector and to
develop/ propose possible pathways and policy stratergy needed to strengthen local private sector
engagement for inclusive development. At organization level, the study aimed at generating
information that will be used to leverage the advocacy agenda that calls for improved sustainable
and responsible private sector investments across broader range of actors’ spectra.

The specific objectives of the study are:

1. To carry-out a comprehensive review of existing and relevant studies on the private

sector investments in livestock in Tanzania and East African region;
2. To map-out the private sector investment in the livestock sector by identifying and
classifying their current levels of concentration along the value chain in Tanzania;
3. To identify gaps in private investment in the sector and how they can best engage with
Public-Private-Partnerships to ensure responsible investments for inclusive development
opportunities;
4. To assess small scale livestock keeper’s investments as a way of quantifying local
contribution to the incomes and national development for the sector;
5. To draw plausible recommendations on responsible and inclusive investments that
complement public expenditure and address the income and livelihood needs of livestock
farmers in Tanzania.
1.1.2. Scope of the study

The field study focused on the Eastern, Northern, Central, Western and Lake and the Southern
Highland corridors where most of the livestock in Tanzania are found. The chosen zones include
regions which have a significant population of farmers, pastoralist and agro-pastoralists whose
main source of livelihood is dependent on livestock. The study focused on a selected number of
livestock commodity value chains (dairy, beef, small ruminants, pig and poultry).
The priority value chains were identified by the client based on three key factors: livestock
population, contribution to the overall economy, and the potential for growth.

1.2. Approach and Methodology

The entry point into the study was to conduct a comprehensive review of existing literatures of
the identified livestock value chain in Tanzania and the East Africa region. Due to resource and
time limitation, field visits and assessment of factors, actors, channels and dynamics in the
livestock sector was undertaken in three main livestock corridors in the country namely North
Eastern (Tanga, Arusha, Kilimanjaro and Manyara); Central (Dar es Salaam, Morogoro and
Dodoma), Western (Shinyanga, Mwanza and Kagera ) and the Southern Highland (Iringa,
Njombe and Mbeya livestock corridors.

Primary data was gathered by interviewing all (possible) relevant actors along the key
components of the selected value chains. Stakeholders especially farmers in the selected
livestock corridors were interviewed in order to assess current challenges and opportunities in
livestock sector in Tanzania. Key Informant interviews were also held with key experts,
government officials in the public and private sectors including financial institutions.

The challenges facing all categories of investors in the livestock sector in Tanzania were
assessed through a comprehensive review of literature and interviews with stakeholder from the
private and public sectors d through face to face interviews, e-mail, and telephone guided by a
checklist developed for this purpose. Stakeholders in the livestock sector/value chains included
inputs suppliers, producers and their associations, processors and their associations, consumers,
livestock boards and government ministries responsible for livestock development. The list of
individual that were consulted is as shown in (Annex 2). At the beginning of the study, a kick-
off meeting was held between the consultant and the ANSAF team to discuss and agree on the
method and a detailed work plan.

1.3. Limitations

Due to resource constraints, this study was conducted as a quick sector scan of Tanzania. The
idea is that if ANSAF chooses to focus on the sector, more in-depth value chain analysis will be
undertaken. The in-depth value chain analysis should include determination of investment costs
in each value chain which could not be done in this study due to limited time and funds allocated
to this comprehensive study Essentially, few regions were visited and mostly secondary data is
used in this analysis.

1.4. Report Organization

The report is divided into five sections. Section one gives the background to the study, the study
objectives and the approach methodologies adapted. Section two gives an overview of the
livestock sector development an EAC. Section three describes the gives an overview on livestock
production and contribution of the sector to the incomes of stakeholders and the nation by
analyzing the key livestock value chains. Section four presents the key challenges of concern to
stakeholders, evaluates what has already been done or is being done by the Tanzanian
governments in terms of policies and Acts and the private sector investments and then deduces
the genuine knowledge gaps. Section five discusses and provides conclusions and gives
recommendations on how to deal with the identified knowledge gaps. The report is supported by
a number of appendixes including:
a) Annex 1: Terms of reference for the study
b) Annex 2. Stakeholders/Institutions Consulted
c) Annex 3. Example of the checklist used during interviews
d) Annex 4: Examples of Livestock Value Chains and Key Actors in East Africa
e) Annex 5: Summary of Key issues, causes, knowledge gaps and possible actions

2.0. Overview of the Livestock Sector in the EAC

Livestock is the most valuable asset of many households in eastern Africa, providing not just
economic but also social capital. Most of the livestock (over 60%) are found in the arid and
semi-arid areas, where livestock constitute the major asset for more than 90% of the generally
poor population. With rising incomes and populations growing, the demand for animal food
products in eastern Africa is increasing. It is for these reasons investment in the livestock sector
remains a priority policy issue the Governments in East Africa. Another key factor is that the
sector has strong forward and backward linkages with the manufacturing sector, providing most
of the basic raw materials and inputs to local agro- processing industries.
2.1. The Importance of the Livestock Sector in the EAC

The livestock sector contributes significantly to the welfare and social economic development of
the region (Figure 1). Livestock contributes approximately 20% to 30% of agricultural GDP
across East Africa. Statistics show that the size of livestock asset in the region is estimated at
85,893 million cattle, 67,939 million goats, 69,620 million sheep, 900,000 camels, 130 million
poultry and 3 million pigs.
Figure 1. Estimated annual value of selected livestock products total for EAC @world prices

Data from Figure 1 show that substantial proportion the annual income in the region comes from
dairy and beef cattle. Off take from small ruminant livestock is estimated at an average of 130
MT which could be a gross under-estimation because majority of goats and sheep are consumed
within the producing households. Similarly the estimated average production of 108 MT of
poultry meat could be a gross under-estimation because majority of the poultry and poultry
products are consumed within the producing households. However, the free-range poultry is one
of the most important assets of rural poor households. Pig meat production in the EA region is
estimated at 111 MT per annum of which about 70% is produced in Uganda.

Secondary products include about 5.71 million pieces of hides and 12.31 million pieces of goat
and sheep equivalent to 129,070 MT are produced annually in the EA region. Despite the large
livestock population in the region, the production of different livestock products for the market is
very low compared to the demand. On average beef production is estimated at around 800,000
MT most of which comes from cattle raised in the arid and semi-arid areas. In a nutshell
livestock sector contributes the following to the national economy:

1. Supplies animal food products thus contributing to national food security;

2. Source of income and employment opportunities, mostly in the rural economy;
3. Produces raw materials for local industries, e.g. hides and skins;
4. Produces inputs to crop production (manure) and other industries, e.g. drought power;
5. Acts as a store of value and investment channel for rural households;
6. Fulfills cultural roles, which are valuable to many communities;
7. Meeting socio-religious needs of communities.

Cattle-keeping is the most important livestock production activity, followed by goats and sheep.
The traditional production system for cattle sheep and goats is further subdivided into (i) agro
pastoral, pastoral and mixed farming sub systems. Mixed farming is practiced in the humid zone
where farmers are basically crop producers but keep indigenous cattle for many reasons,
including getting manure and drought power.

Inspire of the obvious potential of livestock to contribute to the livelihoods of stakeholders in

the key livestock value chains, the EAC region has not fully benefited from livestock resources
as a result of the following challenges:
1. Inadequate policy direction on the management of livestock diseases, food and feed
safety, animal emergencies, animal welfare, marketing and trade in Livestock and
livestock products;
2. Low compliance with sanitary measures leading to access problems in local, regional and
high-value international markets;
3. Low Livestock productivity due to challenges such as poor genetics, inadequate uptake of
modern breeding technologies, a weak infrastructure for livestock production, animal
diseases and inadequate extension services;
4. Poor infrastructure for marketing and regional trade in livestock and livestock products
characterized by minimal processing and little value addition in most of the EAC
countries;
5. Low competitiveness of livestock products in the local, regional and international
markets due to high cost of farm inputs and low adoption of economies of scale;
6. Poor regulation of Veterinary Pharmaceuticals. Regulations and regulatory roles in each
partner states concentrate more on human rather than Veterinary Pharmaceuticals;
7. Inadequate capacity development, little research, underdevelopment of respective
livestock resources and weak research-extension linkages leading to challenges like
outbreaks of livestock diseases that cause market bans and cross border trade;
8. Poor governance and institutional structures which rate poorly in risk assessment for
domestic and export trade. The Competent Authority faces shortages of human, physical
and financial resources for the successful execution of its mandates;
9. Poor veterinary infrastructure that adversely affects delivery of services and quality
assurance of inputs and animal products.
10. Effects of climate change, competition for land based resources between livestock and
humans and other cross-cutting issues that curtail development of the livestock resource
industry in the region.
2.2. EAC Policy and Regulatory Issues

Of all the African economic blocks the EAC is the most advanced with regards to its efforts for
integration and realization of a functional economic block. To date the EAC members have
collaborated on cross border efforts to: control trans boundary animal diseases; zero rate taxes on
raw material for feed production; allow for the free movement of people/ knowledge across
borders; align quality standards by initially defining what quality for animal inputs, and products
are; and monitoring of out breaks. Though faced with implementation hiccups some of the cross
border initiatives have born fruits for both the public and private sector actors active in the
poultry sector.
One central hindrances to increased animal production in the EAC is the occurrence of animal
disease especially trans-boundary animal diseases (TADs). In the past, the region has recorded
occurrences of Foot and Mouth Disease (FMD). Key stakeholders in disease control in the EAC
region include AU-IBAR, EAFF, FAO, USAID, GIZ, ILRI, etc. These organizations in
collaboration with the various public and private sector stakeholders have identified the
following diseases as priority strategic and tactical trans-boundary animal diseases to be
addressed collectively as a block (please note that not all are related to poultry):

1. Highly Pathogenic Avian Influenza (AI);

2. Rift Valley Fever (RVF);
3. Foot and Mouth Disease (FMD);
4. Contagious Bovine Pleuropneumonia (CBPP);
5. Newcastle Disease;
6. Trypanosomiasis
7. Contagious Caprine Pleuropneumonia;
8. Lumpy Skin Disease;
9. Rabies;
10. African Swine Fever;
11. Tick-borne diseases (East Coast Fever, Babesiosis, Anaplasmosis);
12. Bovine Spongiform Encephalopathy;
13. Blue Tongue;
14. Nairobi Sheep Disease;
15. Canine Distemper; and Gumboro.

2.3. Institutional issues

The main institutional issues that interact with livestock production include livestock mobility
and land tenure, and credit access. Others may include financial and human resource capacity.

2.3.1. Land tenure and livestock mobility challenges

Livestock production, especially pastoralism, is largely affected by the use of natural resources.
It is only through appropriate land-use and land-tenure policies that the system may be protected.
For example, appropriate policies would protect dry season grazing reserves of communally-
owned lands and provide infrastructure and security to access the insecure rangelands.

Availability of water and pasture is important but accessing them is more crucial. Such access
requires mobility within and, sometimes, across political boundaries. While countries in the
region recognize different land-tenure systems, they lack local and regional policies to guarantee
safe mobility of pastoralists and their livestock. What would be required at local levels would be
to empower local authorities to protect the designated grazing reserves and livestock mobility
corridors, and ensure safe passage of various pastoral communities. At national level, dry season
grazing reserves and mobility corridors should be demarcated and protected to allow safe
passage to pastoral communities for grazing to avoid the endemic conflicts between crop and
livestock keepers.
For settled livestock production, clear land tenure is important for investment in requisite
infrastructure and high-quality breeds. Sedentarisation of pastoralists is a widely pursued policy
by several countries in the EAC region. These policies are driven by an underlying belief that
pastoralism is not a viable livelihood strategy (Anbessa, 2015). But there is barely a consensus
on the question of Sedentarisation; its advocates view it as a solution to the challenges facing
nomadic pastoralism. These challenges include loss of grazing land to modern developments like
urbanization, establishment/expansion of protected areas (national parks and game reserves), and
environmental stress due to recurrent droughts, intensified inter-ethnic conflicts arising from
cattle rustling and conflict over resources. However, the outcomes have not been positively
uniform. Sedentarisation policies pursued should put into consideration the fragile nature of the
arid ecosystems that could be put at risk.
2.3.2. Credit access

When livestock keepers suffer livestock deaths due to vagaries of weather or diseases, the poorer
ones may require credit support to restock. Traditionally, livestock have not been used as
collateral for accessing agricultural inputs. Apart from livestock keepers, service providers such
as vets and other players in the livestock value chain may require credit services to improve their
activities. Mainstream credit finance providers have been reluctant to lend to the subsector.
NGOs are stepping in to bridge the gap. In Kenya, KLMC is helping livestock traders secure
credit.
2.4. Institutional capacity

Most institutions planning and implementing livestock policies are under-staffed and poorly
resourced. In some cases, staffs lack the right qualifications and cultural and ecological
orientation to work especially for the dry lands, which are the main livestock production areas in
East Africa (Aklilu et al., 2013).
2.5. Livestock marketing policies

Effective livestock marketing is a key driver to sustainable livestock production. Livestock

markets can be external (governed by stringent World Organization for Animal Health (OIE)
rules and bilateral agreements), regional (where countries can negotiate and agree on standards)
and internal (governed by a country’s own rules and regulations). All the EAC countries are
signatories to OIE, which deals with trade aspects of international animal health (Codex
Alimentarius, which sets international food safety standards). The EAC countries are also
members of the World Trade Organization, which governs international trade. Countries that are
not signatories to the above international regulatory institutions may not participate in
international trade in livestock and livestock products.

At the EAC Common Market Protocol governs the legal framework for trade in livestock and
livestock products in the EAC. Individual member states are free to pursue own policies
individually or in cooperation with other members. This has led to a fragmented regulatory
approach to similar, or closely related, policy challenges. Moreover, countries have been
pursuing multiple, and in some cases overlapping bilateral and/or regional initiatives.
The internal regulatory challenges of member states are similar and include the following:
1. incomplete, dated and incoherent sanitary and food safety regulations
2. multiple and over-taxation of livestock exports
3. lack of established communication channels among livestock stakeholders
4. lack of capacity to implement policy decisions and
5. lack of coordination among different levels of government in enforcement of laws
(AfDB, 2010).

3.0. Livestock Production in Tanzania

3.1. General Overview

According to the 2016/17 LSA baseline, Tanzania has about 28.8 million cattle, 16.7 million
goats and 5 million sheep. Other livestock include 2 million pigs, 33.3 million local chicken and
15.6 million improved chicken, 15.2 million goats and 6.4 million sheep. Goat meat and mutton
currently account for 14% and 4% of all red meat produced in Tanzania respectively while beef
accounts for 82% of the red meat (Tanzania Master Plan, 2018). Most of the livestock (over
60%) is found in the arid and semi-arid areas, where livestock constitute the major asset for more
than 90% of the population. Livestock plays a significant role in off-farm employment and
income generation and employs a multitude of stakeholders categorized into different value
chain from production to consumption.

Livestock production in Tanzania is divided into the traditional and modern/commercial

production systems. The former is further divided into agro-pastoral, pastoral and mixed farming
sub systems. The commercial sector is further sub divided into large scale enterprises and
smallholder units. The traditional sector is the most dominant, for it accounts for over 95% for
cattle, over 98% for goats and sheep kept and slightly less for other species (pigs and poultry).
Livestock owners in the traditional system keep livestock for multiple objectives, including
((MMA) & Consultants, 2008):

1. To generate income;
2. Meet subsistence needs;
3. Store of wealth, cash income,
4. Manure and drought, and
5. Meeting socio-religious needs of communities.
3.1.1. Agro-pastoralism

Cattle-keeping is the most important livestock production activity, followed by goats and sheep.
The traditional production system for cattle sheep and goats is further subdivided into (i) agro
pastoral, pastoral and mixed farming sub systems. Mixed farming is practiced in the humid zone
where farmers are basically crop producers but keep indigenous cattle for many reasons,
including getting manure and drought power.

In agro-pastoralism crop production is the main source of livelihood, however, extensive

livestock farming, using indigenous breeds (cattle, goats and sheep) and usually using communal
grazing, is important. It is the most important system in terms of land use, number of livestock
(cattle, sheep and goats) and production (meat and milk). Due to the variation of rainfall in
amount and distribution, availability of pasture varies between seasons, and places.

Droughts occur often, in less than 10 years, and the droughts may last for 2-3 years, causing
serious losses in terms of depressed production, animal deaths and forced sales with depressed
prices at the markets. To mitigate the variation of feed and water availability, agro-pastoralists
practice transhumance, under which the base herd is kept at permanent homes but other animals
are moved away in search of grazing during the dry season. In Tanzania agro-pastoralism is
practiced in the semi-arid zone of Mwanza, Mara, Shinyanga, Tabora, Singida, Dodoma,
Manyara, Arusha, Kilimanjaro, Mbeya and Iringa.

3.1.2. Pastoralism

Under pastoralism livestock husbandry (keeping of cattle, sheep and goats) is the most important
source of livelihood. It is usually practiced in the more arid lands, where crop production is
extremely hazardous due to low rainfall (less than 600 mm a year) and frequent droughts that
occur every 3-5 years. Key Characteristics of the pastoral production system are:-

1. Animals represent more than economic assets; they provide social identity and security;
2. Large herds are reared mainly for subsistence, with occasional trading;
3. Herds are composed mainly of indigenous breeds;
4. Practiced on extensive basis with animals depending on natural pastures for feed;
5. Mobility in response to variations in climate common.

In Tanzania, it is estimated that the pastoral economy is the main source of livelihood for about
0.7% of the population.

3.1.3. Commercial livestock production

The commercial livestock production is further sub divided into large scale enterprises and
smallholder units. The former was introduced on a limited scale during the colonial period but
expanded by the state in the nineteen seventies and eighties.

Smallholder dairy production on the other hand is the most dynamic sub-sector with very high
potential in the Northern, Southern, urban and peri-urban area of Tanzania. It is based on
intensive pasture and improved dairy cattle (and goats). It expanded from the mid-eighties in
several highland areas by Government with assistance from donors (Netherlands and
Switzerland) and working with international NGOs (Heifer Project International, etc) and local
ones and private investors. The smallholder intensive dairy system is responsible for the rapid
buildup of the dairy herd from less than 200,000 in the early 1980 to current level of over
500,000 dairy cattle, contributing to 30% of milk production in the country.

By mid nineteen nineties the public large scale enterprises were performing poorly, both in
physical production and financial terms. All the dairy farms under the state owned Tanzania
Dairy Farming Company (DAFCO) were privatized, except for state farms retained to produce
improved breeding stock and part of NARCO ranches. The National Ranching Company
(NARCO) is a parastatal company mandated to produce beef cattle for the domestic and export
market. The eight existing ranches possessed an area of 230,384 hectares, with capacity to hold
over 100,000 livestock units. In the last two years, each ranch has been divided into a core unit
of 20,000 hectares under NARCO and a number of smaller ranches of 500-5,000 hectares sold to
private national investors. The core ranches under NARCO have about 43,000 heads of cattle
and 3,025 sheep. The ranches have good quality Boran herd, suitable for upgrading local breeds
for meat production. Off take of the ranches at 22% is double the national herd while slaughter
weight of ranch bred steers is over 150% of national herd.

Apart from the government owned farms, there are a number of private investors engaging in
medium ranching, fattening and milk production as described in the under the dairy value chain
sub-section below. Some of these enterprises are targeting the upper beef markets in the country
(super markets and tourist hotels) and export of beef.

3.2. The Livestock Value Chains in Tanzania

The core processes of a livestock value chain in Tanzania include production, processing,
distribution, wholesaling/ retailing and final consumption. The value chain is supported by a
network of support service providers and is influenced by a myriad of external factors as in all
agriculture value chains (Figure 2). This model is used to describe the characteristics and actors
in the value chains of the major agriculture sector (crops and livestock in the EAC region.
The support functions of a livestock value chain include input supply, financial services,
transport, packaging, market research and advertising (CTA, 2012).

At the production stage, value addition may arise through the use of better production
technologies (breeds, forage, etc), while at processing and packaging, value addition may arise
from improving presentation and preparation, and introduction of grading system.
Figure 2. A simplified schematic presentation of a typical agriculture value chain model.
3.2.1. The Red Meat Value Chain in Tanzania

Beef from cattle is the major type of meat consumed in Tanzania since it accounts for more than
50% of all meat produced and consumed in the country.
The supply of quality beef (QB) calls for efficient use of resources to produce process and
distribute the beef along the entire chain to enhance its affordability to consumers.

The value chain actors include primary producers, live animal traders, meat and by-product
processors, butchers and consumers (Figure 3).

Beef Value Consumers

Chain Functions

Supermarkets Butcheries/ Groceries Roadside Export

Retailing meat shops vendors market

Distribution Large Small Hides & Skins

scale scale Processors
Processors Processors

Processing Formal

Commercial Export Informal

Slaughter slabs
abattoirs abattoirs
Slaughter

Quarantine
Marketing Terminal market
Secondary Primary
Regulatory authorities
market market
Standards authorities
Broker s

Production
Traditional pastoralists
Commercial Ranches Service providers

Input supply
Input suppliers

Figure 3. A Schematic presentation of typical beef and goat value chains in Tanzania (Source, Mdoe and
Kurwijila, 2012

The production component of the beef cattle and ruminant value chains in Tanzania is dominated
by pastoralists and agro-pastoralists. Ranches and fattening farms account for very small
proportion of the beef cattle and small ruminants in Tanzania. Similarly, the primary production
of small ruminants for meat is dominated by pastoralists and agro-pastoralists. However, the
number of households keeping small ruminants in the red meat production systems is less than
those keeping beef cattle. For example, 37% of the agricultural households raise cattle compared
to 30% reported to raise small ruminants for meat.

The main characteristics of actors in the production component are:

1. Pastoralists/ Agro-pastoralists: pastoralist/agro pastoralist households in Tanzania
accounts for about 93-95% and 99% of the beef cattle and small ruminants, respectively.
They are mainly located in arid and semi-arid areas and arid zones of Tanzania, with
pockets in sub-humid regions of Tanga, Morogoro and Coast. In recent years pastoralists
have moved further south in Lindi, Mtwara and Ruvuma.
2. Ranchers and fattening farms: Private and public commercial ranches and fattening farms
account for 5-7 % and 1 % of the beef cattle and small ruminants, respectively.

Despite the large cattle population in the pastoral and agro-pastoral systems, the annual off take
rate of 8-10% is lower than annual off take rate of about 12-15% in commercial ranches.
Moreover, cattle in the pastoral and agro-pastoral systems are slaughtered at the age of 6-7 years
with mature weight of 200-300 kg compared with slaughter age of 2-3 year with mature weight
of 350-400 kg in commercial ranches.

Goat and sheep meat production is also expected to rise over the five-year period by 60% to
103,681 tons, while the cattle red meat production from the ranching and the feedlot fattening,
and dairy subsector would grow from by 73% to 3,029 tons and by 521% to 531,275 tons
respectively. Even with the implementation of these proposed investments, livestock
consumption is expected to grow from 2017–2022 by 71% (to 867,302 tons), leaving a 17%
deficit (124,778 tons) in the red meat production consumption balance.

Bulking of live animals normally occurs in rural livestock markets. Individual producers bring
the livestock they want to sell to these markets where traders who bulk assemble and normally
buy through an auction. The buyers include traders who then transport the livestock and re-sell
either to large exporters, meat processors, or small-scale owners of butcheries. In the rural areas,
butcheries often purchase directly from these rural markets, while those in urban areas purchase
from re-sale auction markets located near the town.

Bulking of livestock for meat is done by two categories of traders:

a) Small traders, who purchase about 4- 10 animals at a time directly from producers, and
re-sale either to large traders/exporters (wholesalers), butchery owners or, in the case of
small ruminants and poultry, to retailers in urban areas. They handle about 60% and 90%
of the trade in live cattle and small ruminants, respectively.
b) Wholesalers/exporters who normally buy from the small traders or ranches. Most of the
fattening farms also act as wholesalers. The wholesalers/exporters handle about seventy
livestock units at a time.
The same group deals with both bulking and wholesaling. The only different players are
transporters who provide trucks to transport livestock for long distances. However, most of the
cattle and small ruminants are transported on hoof.
Most (85%) processing of beef and small ruminants meat is conducted by community owned
slaughter slabs, and abattoirs. Slaughter slabs are linked to butcheries in the rural areas and small
towns. Abattoirs or slaughter houses are located in large towns and cities.

There about 21 slaughter houses spread across the regional headquarters. There are a few modern
abattoirs in Tanzania including SAAF in Sumbawanga, Tanzania Meat Company in Dodoma
and Chobo Investment in Mwanza) each handling about 200 cattle and 200 small ruminants per
day, although they operate below capacity. A new export oriented abattoirs are currently being
constructed. They include Ngulu Hills abattoir in Mvomero Distrct, Morogoro Region and one
by a Chinese company in Shinyanga and a local company in the Coast regions.

However, the extremely low investment in the slaughter livestock and meat industries in
Tanzania over the last 30 years has resulted in a base comprising the simplest of facilities at the
lowest level of hygienic production. The infrastructure for the distribution of frozen products is
practically non-existent and consumers are now accustomed to fresh meat.

Retailing is the service that provides products to the final consumer. For the red meat products in
Tanzania, retailing occurs in four types of enterprises; (i) local markets (for retail selling small
ruminants), (ii) butcher shops (iii) supermarkets of all types, and (iv) cooked meat outlets, such
as for “nyama choma” as roasted meat is popularly called.
i) Local markets: Most consumers in rural areas and even in urban areas prefer to purchase
small ruminants, and undertake own processing and preparation. In this case the value
chain is very short, often non-existent since the producer and consumer is one and the
same. The longest chain in this mode of retailing includes the smallholder producers, a
trader who bulk the live animals, normally at a rural market and then transport (using
hired transport) often to an urban or a rural market town and re-sale to retailers..
ii) Butcher shops: Most of the red meat retailed in the region is handled through butcher
shops which supply both to home consumers as well as the informal fast food outlets. A
significant proportion of meat from small ruminants is also handled by butcher shops.
The butcher shop industry is common in both rural and urban areas. The value chain will
normally involve four or six major chain components:
iii) Supermarkets: These are increasingly becoming important retail outlets of meat for the
hygiene conscious consumers especially in the urban areas.
iv) Cooked meat outlets: Retailing of meat in a cooked form has become the most important
outlet for meat in Tanzania. For example, it is estimated that most (40%) of the traded
small ruminant meat is sold to the final consumer as cooked or barbecued meat in hotels,
restaurants and fast food businesses..
v) Key actors in this component of the meat value chain include:
a) Tourist hostels,
b) Restaurants and formal fast food enterprises,
c) Informal fast food outlets.

Consumers in Tanzania are divided into two major categories; (i) consumers at home in both
rural and urban areas, and (ii) consumers away from home including tourists, business travellers
and ‘fast food’ consumers in both rural and urban areas. This component of the value chain is
almost uniform for all types of meat. However, for poultry, pig and small ruminants’ meat,
consumption away from home could be more than 50% especially in urban areas. It should be
noted that these figures applies only to marketed meat, and would change if that consumed
directly by producers was taken into account.

From the above brief review of the red meat value chain, it is apparent that the red meat value
chain has the greatest potential in poverty reduction among the identified livestock value chains
in Tanzania. However, this potential does not only stem from the potential to generate income
from meat sales but also from the number of participants who earn income at the different stages
in the value chain. For example in the beef cattle and small ruminant meat value chains most of
the producers are resource poor pastoralists and agro-pastoralists. In addition to increased
income of smallholder producers that reduce income poverty, the red meat value chain has the
potential of reducing malnutrition among livestock producers through increased consumption of
meat.

According to the TLMP (2018), the red meat value chain was identified as one of the most
promising priority sub-sector for investment. Proposed investment areas include:

a) Improving the quality and quantity of livestock feed resources by introducing improved
forage crops and improved animal feed management practices, as well as increased
access to existing lands appropriate for grazing;
b) Improving the productivity of indigenous livestock by changing the genetic composition
through breed selection by crossbreeding, introducing pure exotic breeds where feasible
and through improved animal husbandry interventions;
c) Increasing the quality and quantity of animal health services and livestock producers’
access to these services through private and/or private-public partnerships in order to
decrease young and adult stock mortality (YASM);
d) Designing and implementing policies and institutional interventions which enable private
and private-public investment interventions in animal feed, genetics, animal feed and
animal husbandry.

Investments in the above areas will require just over USD 153 million, 46% and 54% of which
will come from the private and public sectors respectively. in the above areas will increase the
contribution of the red meat sector in Tanzania to gross national product by 26% over the 2017–
2022 period, to more than USD 940 million annually (Nandonde et al, (2017). The investment.
The same authors predicted that by 2022, approximately two million heads of animals are
expected to pass through ranch, feedlot and traditional (culled dairy cattle) operations, reducing
the contribution of the traditional sector from 97–89% of red meat production.

Tanzania is endowed with abundant natural resources which include land and a huge livestock
resource base, including 88.6 million hectares of land; 60 million ha of rangelands with a
carrying capacity of up to 20 million Livestock Unit (LU). These natural resources could provide
over 90% of the feed resource for livestock (TLMP, 2018). Regardless of all these endowments,
the livestock sector performance is below its potential due to a number of number of constraints
including:

• Unpredictable amount rainfall;

 • The low genetic potential of indigenous livestock;
• Frequent occurrence of diseases and weak disease control capacity;
• Shortage of breeding stock; underdeveloped market infrastructure;
• Unfavorable cross border trade environment;
• Absence of effective market information flows;
• Inadequate standard abattoirs/ slaughterhouses and meat processing facilities,
• Unavailability of appropriate financial services packages;
• Weak producer and trader organization; Supportive Policy intentions are yet to be
communities (tradition not business).

Opportunities in the red meat sub-sector include: Large herd on Indigenous stock; land resource
base; Diverse & favorable climatic and agro ecological zones; Availability of good practices in
production management; Growing local urban market; Unmet export market demands; Growing
private sector investments in modern abattoirs and meat processing facilities; Government
willingness to work with associations; Legislation on land demarcation and ownership; Presence
of several non-state actors in supporting sustainable pastoralism and agro pastoralism in
Tanzania.

With new investments in technological and policy changes, the production and productivity
potential of livestock and rangeland resources could be sufficiently improved to provide
sufficient animal products to feed a rapidly growing population in Tanzania. Presently, livestock
activities contribute only 7.4% to the country’s GDP and the annual growth rate of the sector is
low at 2.6% (Tanzania Livestock Modernization Initiative, 2015).

3.2.2. Dairy Value Chain

Tanzania has a high variation in agro-ecological zones with corresponding differences in

potential for dairy development. The highlands are suitable for milk production, although the
pressure on the land is already high as a result of intensive crop production. In other agro-
ecological zones dairy programmes have been implemented as well with more or less success.
Government, private sector and NGOs alike have shown much interest in the dairy sector and are
developing initiatives for dairy projects.

With rising incomes demand for milk and milk products is on the increase. Overall, increased
income always tends to lead to increased demand for foods from animal origin and
diversification of products. For milk this generally means a shift from buying at the informal
market to the formal market and from plain milk to processed products.

The dairy production system in Tanzania can be divided into three major subsystems: traditional
cow meat-milk, improved family dairy (IFD) and commercial specialized dairy (CSD) (Nell et
al. 2014). The former includes the pastoralists, agro-pastoralists and smallholder farmers all
which produce both milk and meat for home consumption and for sale in the market. In the IFD
subsystem, input use is generally low, depending on market availability. Under smallholder dairy
farming systems like those found in the Northern and Southern highland areas of Tanzania, cattle
are kept in under semi- and zero-grazing systems with cultivated fodder, crop-residue and grass
cut under the cut and carry feed management system
The above mentioned dairy production systems in Tanzania can be summarized as follows:

I. Traditional systems with local zebu cattle:

a. Pastoralism and transhumance: pastoralists move with their cattle through a fairly
large area according to available grazing on natural pasture or harvested crop land. It
is a low input system mainly occurring in arid and semi-arid areas. Milk I an
important product for home consumption and seasonal surpluses are available for
marketing provided there is an opportunity to sell;
b. Agro-pastoralism: Agro-pastoralists graze their cattle on communal grazing land
during the wet season and on crop land after harvest when crop residues are available,
owners of the crop land benefit from manure for improved soil fertility. Also agro-
pastoralists use milk for home consumption and seasonal surpluses can be marketed.
Establishment of a marketing channel could be easier because herds do not move over
a large area and return often to the same spot in the evening; it is a low input system,
prevalent in semi-arid areas;
c. Small holder mixed farmers (sedentary): a production system mainly in the sub-
humid areas e.g. cattle under coconuts or banana farmers who keep cattle for manure
(e.g. in Kagera). Cattle are important for manure and soil fertility. Cattle density is
generally low because of other important income opportunities but also due to disease
problems (tick-borne diseases and trypanosomiasis) and there is less tradition of cattle
keeping. Milk production is low and consequently milk off take/ km2 is low with high
collection cost. Milk production and consumption are less common for the owners.
II. Dairy production systems with grade cattle:
a. Rural smallholder dairy: small mixed farms with crops and livestock in the rural
areas away from the cities, farms with 1– 5 dairy cows mainly originating from
smallholder dairy development programmes; cattle are kept under semi-zero grazing
systems based on cultivated fodder, crop residues and cut grasses from waste or
communal land with varying levels of inputs (AI, bull services, veterinary care by
CAHW, supplementary feed, feed conservation). Direct marketing to consumers is
limited and farmers rely on milk collecting centres or middlemen. Farmers use inputs
depending on marketing opportunities for milk and on their milk income;
b. Urban / peri-urban smallholder dairy: this sub-system is similar to the above group
but uses a higher level of inputs (depending on milk price), especially for feed and
animal health services. The major part of the milk is marketed through the informal
market. At present supplying the informal market is often more profitable than selling
at the formal market. Marketing problems could occur for the more distant farmers
during the wet season when middlemen could buy enough milk close to the cities
c. Medium and large scale dairy farming (private): Farms keeping crossbred and
purebred dairy cattle, having land available for fodder production and conserving
roughage (hay or silage) for the dry season. Farmers are responsible for organizing
external inputs, (e.g. animal health care, feed premixes). Farmers deliver direct to
milk plants or milk is processed on the farm and products sold in the cities. For new
farmers it is hard to develop this model due to poor infrastructure, credit facilities,
communications and transport. There are not many of this type of farms.
Figure 4 shows the grade dairy cattle population per region indicating a higher concentration of
grade cattle in the highland areas and Figure 5 re-arranges the described production systems in a
policy quadrant. With approximate yields (from low to high) per cow on the x-axis and
marketing from informal to licensed markets (milk plants or collecting centres connected to a
recognized milk plant) on the y-axis. The ovals indicate the approximate range the production
systems cover in the diagram, the size of the ovals is no indication whatsoever of the relative
quantity of milk produced in that particular system. The basics of this diagram are used several
times in the report to visualize aspects such as characteristics, constraints, opportunities,
development potential and suitable technologies.

Figure 4. Grade dairy cattle population by region

Figure 5. Policy quadrant with the major production systems ‘overlaid’ with the major types of value chains (see
text for explanation). Note: the basic diagram refers to the situation in the wet season; the dry season situation is
presented with the dashed line to show that a higher proportion of the milk is sold on the informal markets.

The dashed line in the upper part of the policy quadrants indicates the situation in the dry season
when a significantly larger proportion of the milk is sold in the informal market. Large variety
exists in systems for transfer of milk from farm to processor or directly to the consumer. The
farmer's preference for a marketing system depends on quantity of milk available, distance, and
reliability of the purchaser. Most of the milk in the Tanzania is handled by small traders who
account for almost 80% of the milk and milk products traded in the region. The retail business,
especially in urban areas is conducted by enterprises that include milk kiosks, shops,
supermarkets, and hot beverages outlets such as milk bars, restaurants, and fast food joints.

Milk is traded from the farm to consumers directly, to hawkers or milk vendors, to collecting
centres, or directly to processors or micro-processors. The main systems are:
a. Direct sales of fresh milk to the consumer:
b. Home processing and selling of processed products
c. Middlemen, hawkers or milk vendors: they collect milk from the farm and sell it e.g. to
consumers, other middlemen, collecting centres, or to micro-processors or milk plants;
d. Milk Collecting Centres (MCC): accepting milk from farmers or middlemen and selling
to milk processors or on the informal market in the urban areas (milk kiosks, consumers,
microprocessors). MCCs can be owned or operated by farmer’s organizations, milk
plants or private individuals; Bulking of milk normally occurs at processing plants and in
milk collection and cooling centres owned by dairy producer associations or processors.
Milk is transported on head, bicycles or vehicles depending on the quantity of milk and
distance to the collection centres. Trucks or cooled tankers are used to transport milk
from the collection/cooling centres to processing plants.
e. Direct delivery to milk plant (mainly by large producers).

There is also trading of live animals for breeding (heifers) that takes place between individual
smallholder dairy farmers, and between livestock multiplication units and medium/large scale
dairy producers and smallholder dairy producers. Apart from heifer trade, there is culled dairy
cows trade for meat between dairy producers and meat traders, as discussed in under the
beef/meat value chain section
Dairy processors in the Tanzania can be divided into informal and formal processors. Informal
processing takes place at household and village levels involving unregistered small processing
units. Most of the milk (about 82%) produced in Tanzania is informally processed and marketed.
Formal processing accounts for about 18% of the total milk marketed Tanzania.

At present there are around 50 processing units in the country, the locations are shown in Figure
6 (Kurwijila et al., 2012). The major production and processing regions are Mara, Tanga,
Arusha, Dar es Salaam and Iringa. On the official list a total of 42 processing plants are
registered with a total processing capacity of 353,000 (varying from 500 ltr to 120,000 per day)
with an average of 25 % utilized capacity.

Figure 6 Milk processing plants in Tanzania

The consumers of milk products away from home in hotels, restaurants, kiosks and milk bars
account for about 30% of the milk consumed in the region. Consumption at home accounts for
the bulk (70%) consumption of dairy products which include the following products: Raw milk,
pasteurized milk, UHT milk, butter, cheese, ghee, fermented milk, yoghurt, cream, full cream
milk with additives and concentrated milk.
Like the meat value chain the potential for poverty reduction in the dairy value chain lies on its
ability to generate income for smallholder producers and increased consumption of dairy
products by the dairy producing households. Smallholder resource poor dairy producers
amounting to more than 3.2 million constitute the largest proportion of the participants in the
dairy cattle value chain in Tanzania whose livelihoods depend on milk. In the dairy goat value
chain which is increasingly being developed by NGOs, almost all the participants are
smallholder resource poor farmers. The greatest potential for poverty reduction in the dairy value
chain is at the processing stage.

The main constraints in Tanzanian value chain include poor access to services by farmers
(advisory, technical, inputs, financial); low capacity of farmer organizations; severe seasonal
fluctuation in milk production and supply; and poor infrastructure and high costs of doing
business, especially for registered (formal) milk processors. Seasonal glut and deficit periods are
the major cause of low or unfavorable capacity utilization for cooling centers and formal milk
processors. This is exacerbated by the practices of the informal sector, which practically shuts
down during glut periods (because of low demand for raw milk) and yet out competes formal
processors during deficit periods by offering higher prices to farmers.
3.2.3. Pig value chain

Tanzania is undergoing rapid expansion of pig rearing, driven by increasing pork consumption.
Introduction and expansion of pig production systems in this biodiversity landscape may create
new risks, including zoonotic pathogen transmission. Historically, biosecurity measures have
primarily been focused at farm level, ignoring the important function pig traders fulfil between
farmers and consumers.

About 65% of pig production in Tanzania is carried out by smallholders using traditional
methods. Commercial pig farmers are very few in the region, but this is increasingly becoming
important in peri-urban areas. In the traditional pig production system, pigs are mainly fed on
forages and supplemented with food leftovers and rarely with concentrates.
They are sometimes left to free range rather than being stall fed. On the other hand, commercial
pig producers obtain feed supplies from feed shops and directly from feed millers.

Pig keeping has grown in popularity as a livelihood activity due to their high reproduction rates,
rapid weight gain, potential to provide quick financial returns, and rising demand for pork. In
Tanzania, the total consumption of pork is expected to increase by 32%, and Kenya by 25%
between 2000 and 2030 (Food and Agriculture Organization 2011).

In line with plans outlined in the Development Vision 2025, the Tanzania pig industry has the
capacity to become a dynamic market-orientated sector, operating in a more sustainable and
climate-smart manner, supplying consumers with high-quality and safe pork, contributing to
increased nutritional security, livelihoods and economic growth. A number of targeted
interventions in the areas of animal health, genetics, marketing and processing and policies
proposed as part of the Tanzania livestock master plan, if implemented, would increase the
contribution of the pork sector in Tanzania to gross national product by 83% to nearly USD 36
million over the 2017–2022 period. They would also reduce the production–consumption deficit
for pork from 8,000 to 1,350 tons.
Tanzania’s National Livestock Sector Policy document suggests that the sector has the potential
to significantly contribute to food security, improved nutrition and increased incomes, while
conserving the environment. An emerging industry in Tanzania, the pig sector provides income
and animal-source food for 190,000 households, and sustains 1,436 enterprise units. There are
approximately two millions pigs distributed throughout the country, 82% of which are owned by
smallholders.

An emerging industry in Tanzania, the pig sector provides income and animal-source food for
190,000 households, and sustains 1,436 enterprise units. There are approximately two millions
pigs distributed throughout the country, 82% of which are owned by smallholders. The Tanzania
pig industry has the potential to become a dynamic market-orientated sector, and could
contribute to increased nutritional security, farmer’s livelihoods and the country’s economic
growth.
However, a number of targeted interventions are needed in the areas of animal health, genetics,
marketing and; processing and policies as proposed in the Tanzania livestock master plan.

According to the LMP (), the contribution of the pig sub-sector in Tanzania has huge potential
and could increase national income to nearly USD 36 million over the 2017–2022 period and
could reduce the national production–consumption deficit of pork from 8,000 to 1,350 tons. To
achieve this performance level, a total of USD 90 million investments will be required over the
15-year period to transform the pig sector (LMP). The main role of the public sector should be
issuance and enforcement of regulation, facilitation, and the provision of incentives to attract and
encourage private investors. The impact of this additional targeted investment would result in an
increase in income 22% for large scale farmers, 86% and 17%t small and medium-sized farmers
respectively. Industrializing pork production (in large commercial-scale operations) and
processing for product transformation will lower domestic meat prices, while enabling an
increase in exports and foreign exchange earnings

However, improving pig meat requires a focus on upon controlling African swine fever, to
increase pig productivity and meat production to help close the all-meat consumption gap
projected over the next 15 years.

3.2.4. The Poultry Value Chain

The current estimated population of chicken in Tanzania is 69 million. Poultry production has
plummeted in 2017 due to high feed prices owing to the introduction of Value Added Tax (VAT)
on feeds by the government of Tanzania. Many poultry producers have failed to cope with this
reality and have chosen to stop poultry farming. The other negative effect is that Zanzibar
imports a lot of poultry products that finally land into the Tanzania mainland affecting the
market. Stakeholders appealed to the Government to stop charging VAT on feeds
The traditional indigenous family subsystem is an extensive scavenging dual-purpose system,
with levels of low egg (50 eggs/ year) and meat (1.5 kg for mature chicken) production. The
improved family chicken subsystem (with improved local/ imported tropical breeds) is a semi-
intensive, semi-scavenging moderately high productivity (150 eggs/year; and 1.8 kg live weight
at maturity) subsystem. Both subsystems are family-orientated and traditional. The commercial
specialized chicken system is an intensive layers and broilers system with high productivity (2 kg
live weight at maturity and 270 eggs/year).

Indigenous chickens are mainly raised by rural dwellers and contribute to almost 100% poultry
meat and 20% of eggs consumed in the rural and urban areas respectively, while layers and
broilers are raised by urban dwellers. The commercial poultry industry includes the Breeder
farms, Hatcheries, poultry farms (layers and broiler farms), traders and processors. Low-yielding
genetic composition, poor animal health services and feed shortages are the major obstacles to
improving the productivity of the traditional poultry production system, the largest source of the
country’s egg and chicken meat production upon which millions depend for their livelihoods.

Tanzania has been receiving a good number of old new investors who are interested in
establishing breeding farms and hatcheries to produce millions DOC (broiler and layers)
annually. They include Interchick and Amadoli in Dar es salaam, Kibo poultry in Kilimanjaro,
Silverlands in Iringa. Similarly the demand for indigenous chicken has been increasing, leading
to an increase in the number of hatcheries for local chicken. The production of DOC is likely to
increase as time goes by, due to new investments in poultry breeding farms and hatcheries.

The success of the poultry industry depends highly on the availability of quality feeds as it
accounts for 60-70% of the production costs. The price of poultry feed has remained stable over
the last year due to a bumper maize harvest recorded during the year 2014/2015. In addition,
with the turnabout of feed manufacturers moving from using fishmeal as a source of protein to
soybeans, this has also helped in stabilizing the price of feed. However, the prices are still
relatively high and affect the price of the end product (i.e. poultry meat and eggs). Producers
who can afford to process their own feed are the ones who can compete in the market, as their
cost of production is reduced.

The production of exotic poultry (mainly broiler chicken) is done by medium and large scale
producers. These producers supply about 30% of the poultry meat in the region. The components
and key actors of the poultry for eggs value chain are similar to those participating in the poultry
for meat value chain except for the following:

a) In commercial poultry production the type of breeding stock, day old chicks and feeds
used for broiler production in poultry for meat value chain are different from those used
for layers in the poultry for eggs value chain.
b) Whilst local or indigenous poultry producers account for a larger proportion of the
poultry meat produced, exotic poultry (mainly layers) account for significantly larger
proportion (>90%) of eggs produced in the region. In the traditional poultry production, a
large proportion of eggs are hatched as the poultry in this system are dual purpose. The
main large scale egg farms in the region include:
c) In the poultry for eggs value chain, live birds trading involve culled poultry layers instead
of broilers. The actors involved in marketing culled layers are the same as those involved
in the poultry for meat value chain. However, there is no assembling of live birds from
rural areas as most of the production of layers is undertaken in urban and peri-urban
areas.
 d) In the poultry for eggs value chain, processing applies to slaughtering of culled poultry
birds; mainly culled layers. Like the poultry for meat value chain, processing of culled
layers is largely informal. While there is formal processing of the poultry for meat value
chain, there is no formal mechanized processing plants for culled layers. Processing of
eggs is limited to grading and packaging mainly by medium and large scale producers of
layers

The poultry industry seems to have a bright future in Tanzania, as the Government in
collaboration with stakeholders is supporting and strengthening technical support services and
promoting use of appropriate technologies in poultry production. In addition they support the
establishment of quality breeding farms and hatchery facilities; poultry producers and trade
associations are promoted and encouraged. The government is enforcing the law for the
production of quality poultry products. Breeding flock and Hatcheries regulation and registration
for hatcheries have been established, whereas hatcheries meet set standards, have been registered
and are producing better quality DOC’s. In addition, the country has feed inspectors and feed
analysts for law enforcement.

There are however, challenges in the poultry value chain which need to be tackled if the
performance is to perform well. They are:
a. Reduction in the input cost for poultry and poultry products. This is associated
with the use of better quality feed, better bio-security, better management and
availability of cheaper and better quality raw materials such as Soya bean meal,
amino acids, vitamins and minerals, Phosphates, enzymes, better farming
practices etc;
b. Enable organization of the poultry industry. Currently all stakeholders are being
encouraged to join the various related associations which will help in organizing
the structure of the industry. Tanzania is now bringing together the various
associations so as to form an apex association.
c. Poultry processors also face challenges like late payments;
d. Improving the quality of poultry products, like the quality of day old chicks. This
is due to a lack in Government capacity to enforce the existing legislations such as
the breeding farms and hatcheries regulation responsible for regulating the quality
of DOC, the livestock and carcass grading regulation responsible for quality of
poultry meat, and the feed resources quality regulation responsible for quality of
feeds;
e. Increasing scale of production to take advantage of economies of scale. Poultry
production in Tanzania is done at a relatively small scale. Majority of farmers
keep an average of 2,000 per batch for broiler and 500 per batch for layers. This is
mainly due to the limited access of credit from financial Institutions. Provision of
affordable and long term financial support is still lacking.
3.3. Interventions on value-chain financing

Livestock Value-Chain Finance (LVCF) is the flow of funds to and among the various links
within the livestock value chain in terms of financial products, services and support services.
LVCF interventions are promoted in Tanzania to enhance trade competitiveness. Examples of
value-chain financing interventions include: input-supplier financing (e.g. agro-vets) and
financing for meat and milk processing and marketing private companies and cooperative s,
farmers and traders. In the past there was a complete lack of formal financial services for
pastoralists, traders and livestock cooperatives, but this situation is now changing. Some
organizations, for the SAGCOT Catalytic fund, NMB Kilimo Biashara and the Tanzania
Agriculture Bank are supporting value-chain financing in the livestock value chain systems. In
Table 1 provides a summary of the different value chains nodes and the proposed type of
interventions that could be employed by regional Governments.
Table 4.2: An overview of interventions along the value-chain nodes

Value-Chain Node Type of Interventions

Input supply • Training on breeding strategies
• Introduction of cross-bred/improved genotypes e.g.
through artificial insemination;
• Support to local agricultural input distribution (e.g.
agro-vet services;
• Access to agricultural finance;
• Improved fodder and commercial feed production.
Production • Capacity building on climate change adaptability for
livestock farmers;
• Construction of fodder stores;
• Destocking, transport to the market, purchase for
slaughter;
• Development/rehabilitation of water systems (e.g.
dams, boreholes, wells; ponds and water points; water
harvesting);
• Emergency water supply systems;
• Formation/strengthening of pastoral and livestock
keepers’ associations;
• Facilitating information flow between researchers,
extension workers and farmers;
• Capacity building and technical support for improved
animal husbandry practices; livestock fattening;
• In emergency situations/post-crisis situation:
restocking, supplementary feeding of vulnerable
groups, emergency seed distribution, emergency
provision of livestock feeds, delivery of water for
animals;
• Participatory land-use planning;
• Promotion and support to adoption of natural resource
management techniques such as improved range
management;
• Promotion of improved animal husbandry and
productivity-enhancing technologies;
• Support for improved animal health/disease control:
veterinary laboratory services, disease surveillance;
• Training community-based animal health workers
(CBAHWs
Processing and • Construction of abattoirs;
post-production • Value addition of livestock products (e.g. cheese
handling making);
• Emergency destocking;
• Formation of community-based organization
processing plants;
• Provision of post-harvest handling equipment
• Promoting PPPs;
• Provision of milking equipment and milk storage
containers;
• Facilitate availability of milk processing plants
Marketing (wholesale or retail) • Capacity building for farmers, institutions and other
actors in livestock trade and commercial operations;
 • Development of sustainable market systems;
• Development of business-to-business linkages;
• Export market development;
• Key market infrastructure construction and operation;
• Livestock trade and marketing (including their
products) in local, national, regional and international
markets;
• Promotion of value-chain competitiveness;
• Strengthening business support services and enterprise
development;
• Support in drafting and updating health regulations,
procedures and systems to comply with international
standards;
• Supporting reduced transaction costs in the livestock
market chain;
• Supportive policies and institutional mechanisms to
promote efficient livestock trade.
Source: Authors’ construction from stakeholder’s
views

4.0. Key Challenges and Knowledge Gaps

This section summarizes and discusses the most important challenges of concern to the stakeholders as
well as service providers and regulators of the livestock product value chains. As usual, when given an
opportunity, stakeholders are quick to raise the challenges they face and are rarely able to assess what
knowledge they lack to deal with these constraints themselves. Therefore, this section will present and
discuss clusters of challenges as raised by the stakeholders, assess what has already been done or is
being done about each of these clusters, and on the basis of this, deduce where there is a genuine gap
in knowledge.

A critical dimension to realize good investment results is an enabling (institutional and policy)
environment, facilitating implementation of the proposed investments (TLMP of 2018). The
government of Tanzania has prioritized the transformation of the agricultural sector (crops and
livestock). This approach was adopted since in the 2007 Agricultural Sector Development
Program (ASDP) and its successor, the 2017 ASDP II designed to help meet the country
objectives set out in a number of existing strategies and policies.

The ASDP envisions an agricultural sector that, by 2025, is modernized, commercial, highly
productive and profitable, utilizes natural resources in an overall sustainable manner and acts
as an effective basis for inter-sectoral linkages. One of the assumptions which guided the
formulation of the Strategy was that Tanzania is endowed with a large human population
involved in agriculture but with low productivity, and an underutilized and abundant natural
resource base, which presents a considerable opportunity for expansion in farm production of
most crops, livestock and livestock products. The strategy therefore proposes for the
Government to work towards creating an enabling environment for medium and large-scale
investors to make use of the abundant land resources in the country.

The Strategy identifies the following strategic issues to be addressed. These include:
 • Strengthening of the institutional framework for managing agricultural development;
• Creating a favorable climate for commercial activities;
• Clarifying public and private roles in improving support services’
• Improving the marketing of inputs and outputs.

Specific actions are proposed for each of the issues. Among them are proposals that have a
direct implication on the access of pastoralists to land resources. For example, in creating a
favorable climate for commercial activities, it is proposed that procedures for gaining legal
access to land should be streamlined in order to make it possible to use land titles as collateral
for loans. It is also proposed that since the lack of legal and physical access to land is a major
hindrance for medium and large-scale farmers wishing to invest in agriculture, the Government
will undertake land surveys and demarcation to identify potential investment zones.

While the Strategy acknowledges that mobility is an important coping mechanism in times of
drought, it notes the problems of disease control and land degradation due to a lack of
individual ownership of the grazing lands, and occasional conflicts between crop and livestock
farmers.

Additionally the comprehensive Tanzania livestock master plan (TLMP, 2018) proposed
investments of USD 621 million to improve productivity and total production in key poultry,
pork, red meat, and dairy value chains.

Various acts have also been enacted for effective policy implementation and regulation of the
industry; these include the Veterinary Act No. 16 of 2003; the Animal Diseases Act No. 17 of
2003; the Dairy Industry Act No. 8 of 2004; the Meat Industry Act No. 10 of 2006; the Hides
and Skin Act No. 18 of 2008; the Animal Welfare Act No.19 of 2008; the Livestock
Identification, the Registration and Traceability Act No. 12 of 2010 and the Grazing-land and the
Animal Feed Resources Act No. 13 of 2010.

The stakeholders listed many challenges and issues that can be grouped into four main clusters. It
is important to emphasize that most of the issues identified by the various stakeholders are
interrelated and thus the four clusters are also interrelated. The four identified major challenges
are:

a) Productivity challenges were mainly raised by traders, processors, retailers, and

consumers, concerned with the volumes, timing and quality of livestock and livestock
products available in the market. On the other hand, the producers presented the
productivity issues in terms of poor incentives to invest in the improvement of
productivity due to low returns, drought problems, and unavailability and high costs of
necessary inputs;
b) Handling and processing Challenges: there were strongly contradicting views between
the producers on one hand, and other actors along the value chains regarding these issues.
The producers identified inadequate facilities for handling and processing of livestock
products as the main issue, while processors considered the main problem to be the
inadequate and low quality supply of raw material to fully utilize installed capacity. The
 chief consequence has been a vicious cycle where few investors are attracted to invest in
handling and processing facilities for fear of low capacity utilization, while producers are
reluctant to increase production because of perceived low off-take;
c) Marketing and trade challenges: Productivity, handling and processing issues were
raised constraints to marketing and trade. Other issues raised included the informality of
livestock trade, high transaction costs, inadequate supportive infrastructure, heavy
taxation, lack of classification and grading systems, poor hygiene of most outlets (the
main issue raised by consumers), unfair competition from imported products, and limited
business management capacity along the value chain. Of significance was the fact that
almost all issues focused on national and regional trade, with little mention of
international export trade. It is also notable that nearly all the actors along the chain
raised limited demand for livestock products as a major issues;
d) Cross-cutting Institutional and policy challenges: nearly all stakeholders were of the
opinion that most of the constraints facing the livestock sector are not being addressed
due to weak institutional framework, principally caused by limited implementation of
policy.
4.1. Productivity challenges

a) Quality: Consumers especially in urban areas identified poor quality of available meat
products as an issue of concern. The producers acknowledged this and attributed it to
poor quality of breeds, poor supply of feeds and water in the extensive grazing system,
and lack of transportation facilities to carry animals to markets. The long distances
travelled by livestock in search for feed and water, and while being delivered to the
market an underlying cause of deterioration of quality of livestock delivered to markets.
However, consumers and officials contend that despite the problems faced by producers,
there is no incentive to maintain quality due to lack of quality standards and grades, while
the producers’ opinion is that there is no incentive to invest in quality improvement
because of low-farm gate prices and thus returns to investment. Quality is also affected
by the non-business approach of the producers who wait until the animals are too old
before selling them;
b) Inadequate supply of day old chicks: Producers especially small scale poultry keepers
and medium commercial farmers indicated inadequate supply of day old chicks as a
major challenge in the poultry business. They attributed this to inadequate parent stock
and inadequate promotion of trade within the East African region. Although this is
potential business opportunity, stakeholders are held back by the lack of funds due to
inadequate access to financial services and poorly harmonized veterinary and trade
regulations in the EAC
c) Poor quality feeds: Poor quality feeds limit both production and quality of livestock
products. This concern was expressed by both producers and traders of livestock. Poor
feed quality is due to lack of knowledge in feed formulation among producers and feed
processors, high costs of production, weak feeds associations, inadequate raw materials
and lack of laws and regulations to govern the feeds sub-sector.
Due to low prices of livestock products at the farm gate, there is virtually no incentive for
producers to purchase high quality and expensive feeds. Many farmers have resorted to
mixing feeds themselves with poor enforcement of standards and no regulation. This is
particularly evident with the production of indigenous chicken that are largely left to
 scavenge and for which there is low management. Viability of commercial feeds sector is
also limited by competition for grains for human food supply which is also facing
shortages. Furthermore, inadequate supply of mineral premixes, vitamins and synthetic
amino acids exacerbate the problem of low supply and quality of feeds.

The main challenge to ruminant livestock production in Tanzania is the lack of high
quality feed throughout the year and the long-term sustainability of livestock-based
production systems. While the livestock population is increasing, the gap between the
requirement and availability of feed and fodder is increasing primarily due to decreasing
area under fodder cultivation and reduced availability of crop residues as fodder. There is
continuous shrinkage of common property resources leading to over grazing in the
existing grasslands. It is imperative to arrange sufficient good quality feed and fodder for
efficient utilization of genetic potential of the various livestock species and for
sustainable improvement in productivity. Pasture and water stress in pastoral areas in
addition leads to conflict between livestock, humans and wildlife s they compete for the
resources which result into loss of livestock. Wildlife and livestock in the same area also
compete for available pastures and water especially near animal parks.

Even in situations where rainfall is relatively high (e.g. in the humid zone), the
availability and use of grazing resources is highly variable. Optimal use of resources in
such contexts in Tanzania requires national policy strategies which will exploit
livestock potential for mutual benefit and less politicized win-win socio-economic
solution that are very flexible and responsive to a variety of "key shared resources”. This
is a major challenge in Tanzania as it touches on land and land ownership.

d) High prevalence of diseases: Producers of all livestock types acknowledged disease as a

key factor limiting production and quality of livestock products and attributed this to
inadequate and expensive drugs/vaccines, inadequate extension services and poor
enforcement of animal disease laws and regulations. Processors, especially in the poultry
meat, eggs, skins and hides value chains noted the severe impacts of diseases on both the
supply and quality of produce. Severe disease outbreaks and incidences such as
Newcastle disease in poultry reduce production and thus supply of inputs for processing.

Absence of veterinary service providers is a serious problem as livestock keepers rely on

ethno-veterinary medicine which is in most cases ineffective. Inadequate extension
services lead to limited adoption of new technologies, by farmer’s loss of animals during
diseases outbreaks. There is limited extension of animal health services among pastoral
and agro-pastoral areas in Tanzania. In most of these areas, services are centered in towns
and do not reach to the rural farmers. This situation calls for efficient and responsive
innovative extension services to ensure that farmers are assisted during droughts, floods
and epidemic disease outbreaks.

4.1.1. What Has Already Been Done on the Identified Challenges

a) Quality: In all the countries, long-term breeding programmes have been implemented to
improve the quality of livestock and their products. Key breeds in the region include the
Mpwapwa breed, Boran breed, Shorthon Zebu and Ankole. However, multiplication of
these improved breeds has been limited and it is not clear whether the problem is on the
supply side (insufficient bulls and artificial insemination services) or the demand side
(farmers’ reluctance to invest). However, one major challenge on the demand side is that
inadequate enforcement of classification and grading systems limits the returns to
investment from improving breeds. Furthermore, quality is not the high priority, while
price is a major constraint to the majority of consumers who are poor.

For the dairy industry, the following improvement programmes have been implemented
in the region: Smallholder Dairy Development Programmes in Tanga, Kagera, Southern
Highlands and Kilimanjaro in Tanzania. Although data is not available, similar
improvements have been conducted for the other types of livestock;
b) Inadequate supply of day old chicks: Tanzania and all countries recognize the
importance of modernization of the poultry sector through introduction of improved
parent stock and supply of day old chicks. The governments in Tanzania have now
developed policies which allow private sector investment in day old chicks. Commercial
scale hatcheries have now been established in Tanzania which has about 12 hatcheries
including Interchick in Dar es salaam Silverlands in Iringa producing 538,660 chicks per
week. A programme and plans are underway to establish breeding farms (parent and
grandparent farms) and hatching facilities to meet the huge demands;
c) Poor quality feeds: Various programmes have been initiated and implemented to
identify improved feed sources with high protein and energy contents and to train
producers to improve existing rangelands. Programmes implemented in the region
include National Rangeland Improvement Programmes in almost all the East African
countries, improving the value of maize cultivars as a potential dual purpose livestock
feed for poor farmers in Tanzania and Kenya supported by ILRI and CYMMIT, use of
leguminous and browse legumes as supplements to the low quality grassland feeds in the
region supported by ICRAF and ILRI;
d) High prevalence of diseases: Livestock policies in Tanzania and the EAC recognize the
need to prevent and control livestock diseases including New castle disease which is a
major constraint in the development of the traditional poultry sector and trans-boundary
Animal Diseases (TADs) whose control require national, regional and international
cooperation through an enhanced system of early warning, early detection, coordination
and harmonization of control strategies. In addition to policy, the governments have
established departments dealing with animal diseases in the ministries responsible for
livestock development, have privatized the provision of veterinary services, subsidized
some of the veterinary drugs and training more veterinary assistants. The major steps that
have been implemented in the region at policy, institutional and regulatory levels include
the following:
i. Newcastle Disease Avian Control Project under Global Livestock CRSP
ii. FAO Technical Support for Contagious Bovine Pleuropneumonia (CBPP)
Control
iii. AU-IBAR Regional Programme on Ticks and Tick-borne Diseases (RTTDC)
 iv. For trans-boundary Animal Diseases (TADs) initiatives to cooperate in the
control of these diseases among the EA states has started with the
establishment of a livestock desk at the EAC headquarters.

4.1.2. What has already been done on the identified challenges

a) Quality: Long-term breeding programmes have been implemented to improve the quality
of livestock and their products. Key breeds in the country include the Mpwapwa, Ankole
and the Boran. However, multiplication of these improved breeds has been limited and it
is not clear whether the problem is on the supply side (insufficient bulls and artificial
insemination services) or the demand side (farmers’ reluctance to invest). However, one
major challenge on the demand side is that inadequate enforcement of classification and
grading systems limits the returns to investment from improving breeds. Furthermore,
quality is not the high priority, while price is a major constraint to the majority of
consumers who are poor. For the dairy industry, the following improvement programmes
have been implemented: Smallholder Dairy Development Programmes in Tanga, Kagera,
Southern Highlands and Kilimanjaro. Although data is not available, similar
improvements have been conducted for the other types of livestock.
b) Inadequate supply of day old chicks: The importance of modernization of the poultry
sector through introduction of improved parent stock and supply of day old chicks is well
recognized by all the stakeholders. The Tanzania Government has developed policies
which allow private sector investment in day old chicks. Commercial scale hatcheries
have now been established and Tanzania has about 12 hatcheries producing more than
538,660 chicks per week. Programmes and plans are underway to establish breeding
farms (parent and grandparent farms) and hatching facilities to meet the huge demands
c) Poor quality feeds: Various programmes have been initiated and implemented to
identify improved feed sources with high protein and energy contents and to train
producers to improve existing rangelands. Programmes implemented include National
Rangeland Improvement Programmes in almost all the East African countries, improving
the value of maize cultivars as a potential dual purpose livestock feed for poor farmers in
Tanzania and Kenya supported by ILRI and CYMMIT, use of leguminous and browse
legumes as supplements to the low quality grassland feeds in the region supported by
ICRAF and ILRI.
d) High prevalence of diseases: Livestock policies in Tanzania and the EAC recognize the
need to prevent and control livestock diseases including New castle disease which is a
major constraint in the development of the traditional poultry sector and trans-boundary
Animal Diseases (TADs) whose control require national, regional and international
cooperation through an enhanced system of early warning, early detection, coordination
and harmonization of control strategies. In addition to policy, governments have
established departments dealing with animal diseases in the ministries responsible for
livestock development, have privatized the provision of veterinary services, subsidized
some of the veterinary drugs and training more veterinary assistants. The major steps that
have been implemented in the region at policy, institutional and regulatory levels include
the following:
1. Newcastle Disease Avian Control Project under Global Livestock CRSP
 2. FAO Technical Support for Contagious Bovine Pleuropneumonia (CBPP) Control
3. AU-IBAR Regional Programme on Ticks and Tick-borne Diseases (RTTDC)
4. For trans-boundary Animal Diseases (TADs) initiatives to cooperate in the control
of these diseases among the EA states has started with the establishment of a
livestock desk at the EAC headquarters.
4.1.3. Knowledge gaps

There have been some initiatives in place to address almost of the issues raised that constrain
productivity in the different livestock value chain. The gaps that remain are not due to lack of
knowledge but because of lack of /inadequate action by the relevant government institutions and
the private sector in terms of capacity building, creation of awareness, enforcement of
regulations and financial support. The critical knowledge gaps identified were:
i. Limited knowledge on fodder conservation, feedlot technologies and feed formulation
among producers. Although a considerable amount of research has been conducted and is
still on-going in the universities and research institutions, the transfer of know-how to
producers has not been effective. Thus the knowledge has not been put into effective use
to promote development of the livestock business. This is attributed to ineffective service
provision systems, weak farmer’s organizations, limited access to finance and inadequate
entrepreneurial skills among producers to transform knowledge into business enterprises;
ii. Limited knowledge on breeding systems and management of parent & grandparent farms.
Research in animal breeding is required but constrained by inadequate funding of
research by governments in the region and inadequate animal breeders.
4.2. Handling and Processing Challenges

4.2.1. Challenges
a) Low hygienic standards and quality: Consumers complained about the way butchers
and local meat vendors conduct businesses in poorly constructed meat shops which lack
cold storage facilities that do not meet the standards for meat storage. This contributes to
the low hygienic standards and quality of meat;
b) Inadequate and irregular supply, poor hygiene as well as high prices of dairy
products especially milk. Low quantities and irregular supplies of milk are due to poorly
organized and non-functional milk collection systems and cooling centres resulting from
weak farmer organizations, poor roads in rural areas and expensive transport system.
Stakeholders in the dairy value chain also attributed inadequate supply of dairy products
to poor nutrition resulting from inadequate pastures especially during the dry season
coupled with lack of knowledge in range/ pasture management.;
c) Irregular availability of poultry products especially local chicken. In Tanzania and
other EAC countries local chickens are becoming an important source of meat among
both urban and rural consumers. However, production of local chickens is far below the
demand. The low supply is attributed to poor feeding and husbandry practices, poor
breeds, diseases and the prevalent subsistence mode of production of local chicken;
d) Lack of credit for investment in livestock related businesses: Meat and milk
processors identified lack of credit as a constraint to investment in processing meat and
 milk. Both the milk and meat processors attributed it to low returns to investment, lack of
collaterals and lack of awareness of existing credit windows. Most of the stakeholders in
Tanzania are of the opinion that the problem can be solved by forming and strengthening
farmer co-operatives and formation of Savings and Credit Societies. In addition
processors were of the opinion that due to the costly nature of putting up meat plants and
absence of incentives to attract investors, the Government should take the responsibility
of constructing and there after leasing out to the private sector or running the facility as a
joint venture (PPP) as is the case of Dodoma Meat Company;
e) Poor infrastructure and facilities: Concerns of wholesale traders included poor
marketing facilities such as dilapidated cold chain systems, and poor road networks in
rural areas. They complained of the few refrigerated trucks and railway wagons for
transporting livestock products. In addition to the high cost of wagons, delays and
overcrowding are important concerns to the wholesale traders. Meat processors on the
other hand were concerned with poorly constructed abattoirs and slaughter slabs, lack of
facilities like weigh scales, saws and cold chain equipment, lack of appropriate
technology in meat cutting and packaging and unhygienic environment. This has
prompted the closure of the abattoirs like the one in Ving’ung’uti in Dar es Salaam.;
f) Under capacity utilization of processing plants: (i) Meat processors attributed this to
low supply of cattle for processing. In Tanzania it is due to poor infrastructure, lack of
cutting and packaging facilities, and lack of animals, (ii) Milk processors attributed under
capacity utilization to inadequate and irregular milk supply;
g) Low per capita consumption rates for livestock products: This is due to lack of
awareness, culture and taboos resulting from inadequate knowledge on health and
nutritional benefits of meat and inadequate financial capacity. The constraint can be
solved through capacity building and promoting the culture of meat and milk
consumption. This is however, hindered by lack of funds for promotional campaigns,
seminars, workshops and short courses;
h) Inadequate supply of improved breeds: This is attributed to slow multiplication and
supply of improved livestock breeds due to low adoption of improved breeding
technologies

4.2.2. What has already been done on the identified challenges

a) Low hygienic standards and quality: In the meat value chain, several actions taken in
the members states to improve the situation including the on-going programme to train
meat cutters, animal health specialists, butcher owners, finalizing the formulation of the
meat regulations and meat standards system. Despite the above efforts, the observation is
that each country in the EAC is making policies, laws and regulations tailored to their
own conditions resulting into extreme difficulty in doing interregional trade in livestock
products (East African August, 2008).
b) Inadequate and irregular supply, poor hygiene as well as high prices of dairy
products: The problem is being addressed in Tanzania and other EAC countries, boards,
apex farmer organizations and the private sector. The main thrust is organization of
farmers into groups so that they can bulk their milk for easy collection by processors with
the aim of promoting milk production. However, these efforts have failed to promote
increased milk supply to meet the demand of milk processing plants due to lack of
 investment (especially in Tanzania) modern infrastructure such as milk collection and
cooling centres.
The potential of the traditional dairy stock to contribute to this demand as done in India
has not been exploited. This can be attributed to lack of incentives to attract investors and
lack of public investment in this activity in Tanzania unlike in the other EAC countries
which have fewer cattle e.g Rwanda and Uganda.
c) Irregular availability of poultry products especially local chicken: Supply of
improved cocks for cross breeding with local chicken and increasing availability of New
Castle disease vaccines in rural areas for control New castle disease are the main actions
taken to increase productivity and production of local chicken.
d) Lack of credit for investment in livestock related business: In addition to micro-
finance policies which are in place in some of the member states, governments and NGO
in the member states are promoting Savings and Credit Societies or Cooperative for small
scale enterprises to save and borrow money. The urge to form SACCOs is a big agenda in
the East African Region. Access to credit by large businesses including livestock trading
and processing of livestock products is being facilitated by some government guarantees
e.g. the Private Agricultural Sector Support (PASS) in Tanzania.
e) Poor infrastructure and facilities: There are a number of government initiatives to
improve transport infrastructure so as to reduce the high costs of livestock transportation,
and to improve transport access and efficiency. Actions towards improving processing
infrastructure include promotion of private investments in processing, construction of
modern abattoirs.
f) Under capacity utilization of processing plants: In the dairy value chain, low and
irregular supply of milk which causes low capacity utilization of milk processing plants is
being addressed through the actions indicated in b) above. Privatization was envisaged as
a means of ensuring revamping of processing equipment that was hampering the
utilization of processing facilities.
g) Low per capita consumption rates for livestock products: Research has been done in
different parts of the region to identify factors that influence consumption of livestock
products in the region (See for example Kurwijila et al., 1995; Mdoe and Wiggins, 1996;
Mwijarubi, 2007; Rumanya, 2007; Mhiha, 2008). Also actions in individual member
states have been or are being taken to promote consumption of some products. There are
school milk feeding programs in almost all the countries and various promotional
campaigns to increase milk consumption. In Tanzania, there is an annually celebrated
milk drinking week each June.
h) Inadequate supply of improved breeds: Actions already taken to improve supply of
improved breeds include promoting private investments in livestock breeding centres and
provision of artificial insemination services by the private sector. In Tanzania for
example, current measures by the Government to meet the demand of improved breeds
especially dairy heifers in the country include strengthening the National Artificial
Insemination Centre (NAIC) and Livestock Multiplication Units which are the main
sources of semen and improved breeds respectively. Hence in year 2008/09, 10 improved
bulls for semen production were bought from South Africa and 35,000 doses of semen
were produced. In addition 372 heifers from LMUs were distributed to smallholder
farmers.
4.2.3. Knowledge gaps

As indicated in section 4.2.2 above several actions have been or are being taken by the relevant
government institutions and the private sector to address the issues raised by stakeholders in section
4.2.1. However, there is limited knowledge in the following:

a) Inadequate supply of poultry products especially local chicken: Although actions have been
taken to improve productivity in the local chicken value chain including supply of improved
cocks and disease control, the is inadequate understanding of the whole value chain, efficiency
and performance of the chain and major challenges that need to be addressed to exploit the
increasing demand for local chicken.
b) Low consumption of livestock products: Although research has identified factors that influence
consumption of livestock products and actions are being taken to promote their consumption,
there is still lack of understanding of the actual size of the market (demand) for livestock
products as the demand depends on factors that are dynamic and vary overtime. Most of the
critical information for livestock product in the region that are reported in various documents
are estimates that are based on mulitipers of population estimates and per capita consumption.
There is generally a paucity of reliable data and trends on livestock and livestock products.

4.3. Marketing and Trade

4.3.1. Challenges

a) Lack of clear policies on livestock trade issues: Stakeholders were concerned about
the lack of clear policy directives on several issues influencing livestock trade in the
region. Some of the critical areas include taxation and tariffs, movement of live animals
and other livestock products. Establishment of a comprehensive regional policy to
address all livestock trade and information issues was recommended.
b) Heavy taxation: Livestock products, especially live animals attract many taxes including
village government taxes, property tax, income tax and others. In Tanzania for example,
recent analysis of the sector indicated that there are 12 different taxes levied against
livestock traders. A major concern in Tanzania is that Local Government Authorities
charge some of these taxes at the expense of diseases control and investments in
hygienically managed laughter slabs and abattoirs. At the end of the day, the high tax
burden is transferred to the poor livestock farmers/producers and eventually the
consumers through retailers, contributing to the vicious cycle of poverty and to
inequality.
c) Inadequate livestock market information: Market information is critical for decision
making at both consumers and retailer levels. Currently, information on demand and
supply of animals and information in terms of process in various markets within and
outside Tanzania and the region is very limited. This makes it difficult for traders and
consumers to assess potential markets. Stakeholders suggested the establishment of
mechanisms through the East African Community and the respective countries by which
retailers and consumers can access relevant information on markets, products and prices.
d) Inadequate entrepreneurship and business management skills: Lack of business and
management skills among livestock product retailers as mentioned by various
organizations and individuals, is of great concern to the development of the industry.
Many of the retailers lack knowledge in entrepreneurial and management skills which
limits them from expanding their business or making informed trade decisions. The lack
of skills is attributed to the lack of effectiveness of the training curricula used in the
universities and tertiary colleges. Recent reviews of the curricula of agricultural extension
officers in the Lake Zone of Tanzania clearly documented inadequacies of the curricula
to build the skills required for modern business enterprises (DASIP, 2007). The curricula
are often too much focused on the supply side. Other factors contributing to the lack of
skills include the low capacity of trainers in business and trade and general perceptions
that livestock enterprises are non-lucrative.
e) Poor financing for livestock traders: Lack of access to finance and credit was
mentioned as one of the issues of concern to retailers and small livestock traders. Small
livestock traders are not considered credit worthy by financial institutions and credit
providers. This denies them the financial capital they need to expand their businesses.
Wholesale livestock traders’ major concern is that they are regarded as financial risk by
loaning institutions rendering it difficult for them to secure loans to expand the volume of
their business. The lack of financing for livestock trade makes it an unattractive
investment for other potential traders.
f) Unfair competition of local products with imported products is due to the high
preference by individuals of imported goods adversely affecting the local livestock good
manufacturing industry in the whole of East Africa. Lack of enforcement of existing trade
policies was a major concern by the stakeholders.
g) Low demand for livestock products: Low demand for meat is attributed to low
purchasing power as well as to cultural taboos and lack of knowledge on the nutritional
value and health benefits of meat consumption. The per capita meat consumption rate in
Tanzania is 11 kg, in Kenya it is 16.5 kg urban and 3.2 kg rural, Uganda it is 9.04 kg in
urban and 6.05 kg in rural areas and Rwanda it is 5 kg against the recommended FAO
rate of 50 kg per year. There is also low per capita milk consumption due to low
purchasing power and culture and taboos caused by inadequate knowledge regarding
health and nutritional benefits of milk. The per capita milk consumption in Tanzania is 40
l/yr, 85 l/yr in Kenya, and 12 l/yr in Rwanda compared to the FAO recommend rate of
200 l/yr. The stakeholders in Tanzania are of the opinion that the problem can be solved
through capacity building, awareness creation through milk consumption promotions and
school milk feeding programmes.
h) Lack of zoosanitary protocols to harmonize inter-regional trade in processed milk,
is attributed to inadequate funds allocated by the East African Community to finalize
drafting of the protocol which will facilitate movement of live animals in the region. It is
the view of stakeholders that the problem can be solved by urging member countries to
press for budget allocation to finalize drafting of the protocol. However, stakeholders are
of the opinion that the main reason for the slow response in drafting the protocol is the
delay in the establishment of the East African Common Market
4.3.2 What has already been done on the identified issues

a) Lack of clear trade rules on livestock and livestock products: Trade barriers applied
to livestock products prevent millions of livestock keepers from escaping poverty. These
standards need to be changed, because:
i. Most are not useful for national and regional trade where live animals are
moved long distances anyway by pastoralists,
ii. Some products has very minimal risk of transmitting diseases s and such risk
can be eliminated by processing, and
iii. Most of these standards require that – for certain key diseases, an entire region
should be free from the disease – this is not always necessary or useful.
b) Heavy taxation: Governments of Tanzania and other AEC countries have realized the
effects heavy taxation on investments and revenue collection and are addressing the
situation. Under its tax reform programme the Tanzania Revenue Authority is sensitizing
and creating awareness to the public on different taxes and tariff regimes in the country.
A partnership with its clients has now been created and problems faced by those doing
cross border business have been minimized on the Tanzania side. For example, action has
been taken on the issue of local government taxes through tax reform which has removed
all nuisance taxes. What is required at this juncture is to harmonize these tax reforms and
make them known to the public and investors.
c) Inadequate livestock market information: Actions are being taken to improve
livestock market information system. For example the Livestock Information Network
and Knowledge System (LINK) which aims at improving availability of livestock
information in Kenya, Tanzania and Ethiopia (www.imistz.net).
d) Inadequate entrepreneurship and business management skills: The issue of
inadequate entrepreneurship and management skills is tackled through training
programmes supported by various NGOs and other development partners. There are also
several training institutions in the region that can provide tailor made training courses in
entrepreneurship and management.
e) Poor financing for livestock traders: What has already done is similar to the description
in d) under section 4.2.2
f) Unfair competition of local products against imported products: Tanzania has taken
some actions to address the issue of unfair competition against imported products. These
actions include increasing import duty for livestock products, reducing taxes for livestock
production and processing equipment to reduce production and processing costs so as to
make locally produced and processed compete effectively with imported livestock
products.
g) Low demand for livestock products: What has already been done is similar to (h) under
section 4.2.2.
h) Lack of zoosanitary protocols to harmonize inter-regional trade in livestock and
livestock products: National livestock policies in the region already recognize that
zoosanitary inspectorate services are necessary in preventing the introduction and spread
of diseases through movement of animals and animal products and that zoosanitary
certification is a pre-requisite for interregional and international trade. Efforts are being
made to harmonize national and regional policies on zoosanitary inspectorate services.
 These efforts started recently with the establishment of a livestock desk at the EAC
Headquarters in Arusha.

4.3.3 Knowledge gaps

a) As indicated in section 4.3.2 there is adequate knowledge on what is required to address

most of the issues raised by stakeholders in section 4.3.1 and several actions have been
taken by relevant government institutions and the private sector to address them.
However, there is limited knowledge in the flowing issues:
i. Low demand for livestock products: The knowledge gap in this issue is as
described in section 4.2.3 since the same issue was raised by processors
ii. Limited knowledge and data on the impacts of taxation on producers and
traders of livestock products is evidenced by the amount of different tariffs
and taxes charged by the East African member countries on exempted items
covered under the East African Customs protocol which has resulted in the
interruption of normal business and trade in the region (East African August,
2008). Information on levels of taxes and tariffs that will promote livestock
and livestock products trade between the EA countries is needed for the
harmonization of tax reforms.
4.4. Cross-cutting Institutional and Policy Issues

4.4.1. Challenges

a. Lack of proper effluent treatment plants due to inadequate knowledge on the use of
more sanitary and eco-friendly technologies. Consequently, often livestock processing
units contribute to environmental pollution and are subject to scrutiny and even
temporary or permanent closure by regulatory authorities.
b. Social conflicts, especially cattle rustling and conflicts between livestock keepers and
crop producers and endemic insecurity are major challenges to the development of the
meat sub-sector in Tanzania and the region. The causes are politically and culturally
originated, as well as a result of competition for scarce resources.
c. Ineffectiveness in provision of livestock extension services is due to several factors
including (i) low levels of extension personnel at community levels. For example, in
Tanzania the optimum ratio of extension officers to number of villages is 1:3; and in
many districts the ratio is more than 1:7, (ii) inadequate knowledge (technical knowhow)
in specific livestock development areas such as modern range and pasture management,
meat and milk processing, meat and milk hygiene, entrepreneurship development and
marketing. The issues of inadequate knowledge (technical know-how) was raised by the
meat and dairy associations in Kenya and Tanzania, and (iii) inadequate support from the
government in terms of inputs and facilities such as transportation facilities.
d. Prevalence of animal diseases is of major concern to animal health workers the main
issue being inadequate supply of veterinary inputs and services, especially in the remote
areas. Poor implementation of disease control regulations in all countries has resulted in
endemic nature of livestock diseases in the region. As already discussed earlier and
evidenced by the East African Community, the high mortality and low production of
 animals and low quality of meat and milk in all countries are attributed to the poor
veterinary services and lack of disease control regulations in the region. The poor
performance of the health services is further attributed to low numbers of health workers,
especially at district and village levels. For example, Tanzania, has on the average only
one veterinary doctor and Para Vet serving about 300-500 farmers. Other constraints
include lack of access to and high costs of inputs especially drugs.
e. Low capital and lack of access to finance was attributed to (i) the lack of knowledge on
possible sources of credit and the requirements of the different sources, (ii) lack of
collateral and credit worthiness, (iii) lack of entrepreneurship skills and knowledge to be
able to develop bankable projects, (iv) availability of appropriate drugs at reasonable
costs, and (v) lack of storage facilities for specific drugs and inputs such as semen (vi)
lack of finance/ credit products that are tailored to the specific needs and functionality of
the livestock sector.
f. Inadequate availability of inputs such as drugs and feeds. Very often the suppliers
have limited stock and some key drugs cannot be obtained in the small shops in the rural
areas. Thus, farmers and health workers have to seek inputs from distant locations,
increasing cost and reducing effectiveness of response.
g. Difficulties in complying with the numerous and varied and often duplicated laws
and regulations pertaining to issues related to livestock because they are too many
not harmonized across the different regulatory bodies. Review of literature indicates
that each country in the region has its own laws, regulations and regulatory bodies
dealing with livestock and in some countries the laws, regulations and regulatory bodies
are too many with a lot of duplication. Livestock trade in the region can be improved by
harmonizing cross border trade regulations and policies, improved information sharing
among the countries and facilitating and encouraging farmers and other actors to organize
themselves into associations for information sharing. Through these organizations,
resources and information can be shared together with capacity building and promotion
of policy interests that would eventually encourage better compliance.

4.4.2 What has already been done on the identified issues

a. Lack of proper effluent treatment plants: Actions which have been taken by the
governments include monitoring and even closing down of livestock facilitates that fail to
comply with regulations and meet environmental standards.
b. Social conflicts: Various initiatives of conflict resolution and management have been
established at local, country and even regional level, with varying degrees of success.
Governments in the regions are also addressing this issue through land and natural
resource focused initiatives including land reforms and initiatives around land planning.
However, significant gaps remain!
c. Ineffectiveness in provision of livestock extension services: This is being addressed
through training of more livestock extension officer at certificate and diploma level and
provision of transport facilities to extension staff. In Tanzania for example, the aim is to
have one livestock extension officer in every livestock keeping village.
d. Prevalence of animal diseases: Actions taken by relevant organs to address this issue
are similar to those indicated under section.
 e. Low capital and lack of access to finance: Actions take to address the issue of lack of
capital and poor access to financial resources are similar to those indicated in section
4.2.2.
f. Inadequate availability of inputs such as drugs and feeds: Incentives are provided to
stockists in rural areas to stock livestock inputs through provision of loans.
g. Difficulties in complying with laws and regulations pertaining to issues related to
livestock because they are too many and under different regulatory bodies with a lot of
duplication. A number of laws, regulations pertaining to issues of production,
environment, natural resources management, livestock products development and animal
diseases are being reviewed by individual countries.

5.0. Conclusion and Recommendations

5.1. Conclusions

This study provided an overview of the livestock value chains in the Tanzania and the EAC
region. Livestock value chains are an important livelihood source for the majority of people
living for livestock farmers, pastoralists and agro-pastoralist in Tanzania and the EAC. In
addition, the livestock sector contributes significantly to the overall economy and has the
potential to contribute even further to economic development and poverty alleviation.

The study highlighted different value-chain actors and the constraints they face. A review of
current and ongoing interventions indicated that efforts are being made to address these
challenges but many gaps still exist. Literature indicates that despite the efforts in the past
decade, there are many gaps that are more pronounced among the livestock keepers in the
Tanzania. For instance, there is evidence to show that interventions to improve livestock
productivity in the recent past have resulted into better progress in the mixed systems than in the
other systems (see Wambugu et al., 2011; Ekou, 2014). There is also evidence that productivity
gains have not been achieved by all livestock keepers within the mixed systems.

Based on the existing evidence, it is clear that more efforts are required to address the challenges
among the poor smallholder livestock keepers in the pastoral and agro pastoral systems.
However, several success stories from livestock interventions have been reported within the
EAC region. Lessons learnt from these interventions would be useful for replication in other
areas or up scaling for wider impacts. There is however, evidence to show that sustaining
positive gains from livestock interventions once projects end continues to be a challenge. There
is need for the development actors to continue making effort in appropriate prioritization and
targeting of interventions while paying greater attention to having in place quality exit strategies
to enhance sustainability of the interventions.

Analysis in this study also revealed that most initiatives and policies do not have a value-chain
approach; they are focused on specific nodes of the value chain. This approach is driven by the
need to address the most pressing challenges. Furthermore, majority of interventions are meant
to address livelihood challenges rather than value-chain challenges per se. It is, however,
important to realize that the two goals are not mutually exclusive. In fact, by supporting value-
chain development and helping small producers to integrate into the market system, the
livelihood objectives would also be met. It is also notable that there is very little coordination
between different initiatives and policies. This is a serious gap that often leads to duplication of
efforts and loss of opportunity to create synergistic relationship

5.2. Recommendations

The findings show that many livestock-related policies, institutions, laws and regulations have
been enacted, but are being constrained by a lack of enforcement capacity and will from the
Government and institutions. There is also a need to update older policies to deal adequately with
the challenges currently facing the sector. The study identified a number of challenges which if
given attention could attract more private investors along all the key elements of the key
livestock value chains. In view of the above, the study makes the following recommendations:
1. In order for the livestock value chains to fully develop, there is need to address the overarching
policy and regulatory constraints that hinder their growth. Although there are many efforts being
undertaken, further policy interventions are needed to address the issue of production and
productivity, particularly in the pastoral and agro pastoral systems.
2. The contribution of livestock to the economy is quite often underestimated and even when
recognized; it is given less weight than the crop sector. Our analysis of the CAADP compacts and
NAIPs showed this clearly. There is need to improve on existing modeling tools to better capture
the contribution of livestock to the economy but also disseminate information more extensively
among relevant stakeholders.
3. Range management policies especially those relating to forage/feeds and water management are
required. Investments in research, dissemination of technologies and knowledge is required. The
pastoral and agro-pastoral system faces great threat from extension of crop farming into the
fragile land systems especially through use of irrigation. If not well managed, this intensification
of agriculture has the potential to increase conflicts and threaten livestock keeping communities.
4. Animal health remains a big issue in the region particularly the high mortality rates arising from
diseases. Regional policy approaches need to be intensified for surveillance, control and treatment
of animal diseases.
5. Other policy interventions required include increasing access to financial services among
pastoralists; improving the livestock marketing infrastructure; and establishment of a common
livestock trade policy for the EAC region.
6. There is need to support livestock data management systems and capacity for monitoring and
evaluation, and knowledge management. There is notable weakness in the technical, human and
institutional capacity to undertake data management at the subnational, national and even more at
the regional level. Such data, and the associated knowledge, are key for informing stakeholder
investment decisions in various livestock value chains.
7. The value-chain approach to livestock development is not very common in the region. There is
need to promote and encourage its use among development players. Similarly, there is need to
improve coordination among them to ensure less duplication of efforts and more synergies among
them. This can be done by creating awareness among key stakeholders.
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AU-IBAR (African Union–Inter African Bureau for Animal Resources), 2010. Framework for
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Annexes
Annex 1. Terms of reference
Annex 2. List of key Stakeholders and institutions Contacted

Name Designation Organization Phone Number

Mr Hartmund MD Ndoto Farm-Iringa
Dr Mberesero MD Mangara Dairy Farm and 255 783 408 333
Breeding Centre-Tanga
Upendo Majaliwa Field Officer charge Mangara Dairy Farm and 0672827965
Breeding Centre-Tanga
Mrs Malyam Small holder Tanga 0714633756
Ramadhani Livestock keeper
Mr Maryam Ismail Small holder livestock Tanga 0729501603
keeper
Sifa daudi Mgheni Small holder livestock Tanga 0719970040
keeper
Juma Mohammed Small holder livestock Tanga 0719214077
keeper
Hemed Ismail Small holder livestock Tanga 0656153813
keeper
William Mguya Farm Manager- Tanga 0716056896/0754249675
Mluwazi Farm
Prosper Massawe Dairy farmer Dar es salaam 0714877887/0766878701
Mr Tarimo Dairy farmer Visiga Kibaha 0784260855
Mr George Input supplier-feeds Dar es salaam 0765394547
Mr Modest Dairy Farmer Dar es salaam 0784260855
Mushobozi
Mr Kimario Dairy and poultry Dar es salaam 0787275681
Mrs Mdeme Dairy farmer Dar es salaam 075431373719
Mr Doto Beef cattle ranch Kisarawe 0784572323/0766323207
owner
Prof. Faustin Lekule MD TANFEEDS Morogoro 0754690023/0787690023
Mr Mabula Beef cattle ranch Kisarawe 0784312378
owner
John Bosman Beef cattle keeper Kisarawe 0758888395
Mr Geofrey Mrema Large scale poultry Dar es salaam -
farmer and feed
miller
Dr Mwashibale Vet service provider Kibaha
Dr Mwakipesile Dairy farmer Dodoma 0754317333
Robert Benjamin Private Service Arusha 0755041920
Mlugu Provider Livestock
Emmanuel Lanyalo Dairy farmer Arumeru 0754845740
Mr Mselem Input supplier/drugs Dar es salaam 0754332488
etc FarmBase
Dr Christine Ministry of Livestock Dodoma 0784817887
Bakuname and Fisheries HQ
Robert David Mroso Dairy farmer Arumeru/USA River 0755037505
Dr Hezron Nonga Director of Veterinary Dodoma 0767 238174
Services-Ministry of
Livestock and
Fisheries
Prof. Tarimo Small scale dairy Arusha 0683650481
farmer/retired
Pprof. Nakidemi Dairy farmer Arusha 0757744772
Dr Paul Michael Director NAIC USA River/Arusha 0686779090
Mollel
Dr Deo Temba Vet input supplier Arusha 0754445919
and Service supplier
and farmer, pigs,
dairy and poultry
Dr Felix Nandonde Director Animal Dodoma 0713757157
Production and
Marketing Ministry of
Livestock and
Fisheries
Ms Jacquline Mkindi CEO Taha chairperson Arusha
ACT and pig farmer
Dr Asimwe Lovince Asst. Director Animal Dodoma 073468330/0753855678
Production and
Marketing Ministry of
Livestock and
Fisheries
Dr Angello Mwilawa Director of Rangeland Dodoma 0787892240/0754892240
and Pasture Ministry
of Livestock and
Fisheries
Israel Mwakilasa EAAD project Mbeya 0754501079
Dokolati Kinyozi Medium Scale Dairy Mvomero, Morogoro 0715618029
Shangalima and beef farmer
Mr Shamba kumbwa Beef and dairy farmer Mvomero 0713666994
Longido
Mr Saimon Happy Sausages Arusha 0764284229
Mr Elick Chapile Extension Officer Itulike, Njombe
Ms Mariam Chairperson, Itulike Itulike Njombe 0764276504
Mlongalimile dairy farmers
cooperative
Mr Carol Kilimo Biasharat NMB Dar es Salaam 0764346663
Mir Aron Luziga General Manager Tanzania Mea Company 0784887759
Ltd
Mr Fuad Asas Managing Director Iringa 0754695540
ASAS Dairies Ltd
Mr Hilary Shoo Managing Director Dar es salaam 078617565
Hills Feed Ltd
Mr Salvatory Cattle Karagwe/Kagera 0787093880
Wamala Keeper/investor
Mr Johannes Cattle Karagwe/Kagera 0784803086
Wamala Keeper/investor
Mr Mr Edson Cattle Karagwe/Kagera 0754754285
Kyakatuka Keeper/investor
Mr Andrew Kazimoto Cattle Karagwe/Kagera 0754856301
Keeper/investor
Mr Innocent Wamala Cattle Karagwe/Kagera 0767593388
Keeper/investor
Mr Charles Private Ranch owner Nagara/Karagwe/Kagera 0759752423
Rwabutondogoro
Annex 3. Key informant interview (KII) checklist

MAPPING OF PRIVATE INVESTMENT IN THE LIVESTOCK SECTOR IN

TANZANIA

Key informant checklist

Name of the respondent: ===============================================================

Organization:- ---------------------------------------------------------------------------------------------------------------------------

Contact details: ----------------------------------------------------------------------------------------------------------------------

Introduction

The Agricultural Non-State Actors Forum (ANSAF has commissioned me (proof. Martin N.
Shem to undertake a mapping study of the private Investment in the Livestock Sector in
Tanzania. You and your organization have identified as a key informant for this study. Your
response to these questions will be treated in confidence used only for purpose of the study.
However, we kindly request that we include your name in the general list of key informants that
will form part of the final report. We thank you for agreeing to respond to the following
questions.

Questions
1. What kind of work is your organization doing as far as livestock value chains are concerned?
2. In your view, what are the key challenges that these value chains face?
3. Please give details of any ongoing initiatives as per the table below:

Initiative Objective Location Timeframe Budget

4. What are the key institutions/actors involved in the livestock value chains you support?
5. What coordination structures/multi stakeholder platforms5 exist in the value chains you
support
6, How did your organization identify the value chain you focus on as a priority?
7.What are the main policies and regulatory challenges (at national and local level) affecting
livestock value chains?
8. What recommendations would you give for increasing the efficiency of the livestock value
chains you/your organization works on?
Annex 4. Examples of Livestock Value chains and Key Actors in East Africa
4.1. The Beef cattle Value Chains in East Africa
Figure 4.2.. The Poultry (Broiler) Value Chain In East Africa
Annex 5. Summary of Key issues, causes, knowledge gaps and possible actions proposed by
Stakeholders

ISSUES CAUSES KNOWLEDGE GAP STAKEHOLDER

SUGGESTIONS
Live animals (Cattle and Poor nutrition Limited knowledge on Identify current
Small Ruminants): Poor range and fodder conservation and knowledge on
pasture management management among traditional fodders
Diseases producers. conservation
techniques and
Poor quality and Insecure land rights Regional policy and its assess feasibility of
condition of live for pastoralists due effect on access to grazing modern
animals: to poorly defined resources techniques.
grazing rights.
Limited knowledge on Policy constrains
feedlot technologies among or limitations on
producers and traders access to grazing
lands by
pastoralists

Harmonize
disease control
policies and
mechanisms
Heavy taxation burden Too many taxes Little knowledge and data Identify impacts
on the impacts of taxation and recommend
on producers and traders of ways of
livestock products which harmonizing
could inform policy taxation on
development. producers and
traders

Regional
reduction of taxes
Inadequate market Inadequate co- Limited expertise in Establish a virtual
information accessible ordination and establishing and managing regional livestock
by traders and harmonization of regional livestock data bank trade information
producers data on livestock portal or platform
to provide
information on
trade issues.
Inadequate investment Low investment in Management and Empowerment
and entrepreneurship livestock enterprises. entrepreneurship skills through training
management skills Lack of training in Why are people not and capacity
among livestock business investing in livestock building
producers and traders management enterprises? Linkages to
Low educational potential livestock
level markets
 Do not proactively Critically
seek for markets investigate and
Inadequate support analyses reasons
to the private sector why many people
are not investing
in livestock
enterprises.
Assess impacts of
increased private
sector
involvement in the
livestock secto
Lack of credit for small Low returns to How to deal with livestock Identify ways of
scale livestock investment investments to avert the reducing risks to
interventions Lack of awareness of risks. financial
existing credit institutions on
windows livestock
Lack of collaterals investments
High risk on Market oriented
livestock investments analysis of
Limited livestock
understanding and investments
critical analysis of Increased
livestock product government
value chains guarantee
schemes for
livestock
investment credit

Inadequate supply of Inadequate parent Breeding techniques Increase

day old chicks stock investment in
production of
parent stocks
Low availability and Lack of knowledge Feed rations formulations Capacity building
poor quality livestock in feed formulation at all levels
feeds
High costs of
production

Weak feeds
manufacturing
associations

Inadequate raw
materials

Lack of feeds laws

and regulations
High prevalence of Inadequate and Capacity building at all Bulk importation
livestock diseases expensive levels and procurement
drugs/vaccines of drugs using the
MSD model
Inadequate
extension services
Poor enforcement of
animal diseases laws
and regulations
PROCESSED PRODUCTS
Beef: Poor quality breeds Classification and grading Assessment of
Low quality beef Poor management of system of beef carcasses current breeding
animals programmes and
Poor meat handling knowledge sharing
among institutions

Poor infrastructure and Poorly constructed Are the communities ready Promote and
facilities for processing meat shops, and willing to pay for encourage
Lack cold storage quality? investments in
facilities. processing
Low hygienic infrastructure.
standards
Training and
capacity building
in processing

Studies on
consumer
behavior changes
in relation to
demand for meat
quality.

A study on the
establishment and
harmonization of
regional meat
processing

Limited knowledge on Poor knowledge on Limited knowledge on Region wide

nutritional values among nutritional nutritional standards awareness on
communities requirements and nutritional values
the value of meat in and the role of
human diets. livestock products.
Lack of innovations in Inadequate International marketing Establish regional
meat markets such as knowledge and skills skills meat and other
branding of beef in international livestock product
products marketing Entrepreneurship and quality standards.
management skills
Lack of Improve
entrepreneurial and availability of
management skills information on
product markets
Lack of standards within and outside
the region.
Lack of appropriate
policies

Low capacity utilization Low quantity How to improve the quality Improve capacity
of existing industries Poor quality raw of the raw materials and the of existing
material end products. factories.

Worn out machinery Economic value of hides

and equipment and skins is not well known

Out of date
technology

Beef Poorly constructed Knowledge in Meat Training needs

Poor infrastructure and meat shops, butchers technology and Sanitation assessment and
facilities for meat abattoirs and capacity building
processing slaughter slabs in meat processing
including cutting
Lack of facilities like techniques,
weigh scales saws storage, packaging
and cold chain and hygiene).
equipment
A study to
lack of appropriate determine training
technology in meat needs assessment
cutting and and capacity
packaging building in meat
processing
unhygienic including cutting
environment techniques,
storage, packaging
and hygiene
Under capacity Low supply of cattle Limited knowledge and Same as above
utilization of processing for processing investments in processing.
plants Promote and
Poor infrastructure ( support
lack of cutting and investments in
packaging facilities) processing
 through trade
Lack of investments incentives and
access to credit.
Lack of credit for Low returns to Limited SMEs and Promote and
investment in meat investment financing opportunities support
processing investments in
Lack of awareness of processing
existing credit through trade
windows. incentives and
access to credit

Increased
government
support of private
sector investments
in meat and milk
processing.
Low quantity supplies of Inadequate milk Inadequate knowledge and Build capacity and
milk collection and skill to organize and manage skills of dairy
cooling centres. groups. farmers and
traders in group
Weak farmer organization and
organizations management

Poor roads in rural

areas

Expensive transport
system

Lack of milk tankers

Low per capita milk Lack of knowledge Lack of knowledge on Increase
consumption on health and health and nutritional awareness and
nutritional benefits benefits of milk at family promotion on
of milk levels. nutrition of milk
Low purchasing and other dairy
power. products.
Culture and taboos
Document and
publicize the
impacts of school
milk programmes
on child health
and nutrition.
Lack of credit for small Lack of collaterals Increased
scale milk processing government
Low returns to support of private
investment. sector investments
in meat and milk
processing

Inadequate market Lack of co- Market information data

information ordination and development
harmonization of
existing data on
livestock products