Tanzania Agriculture Overview slide image

Tanzania Agriculture Overview

Climate-Smart Soybean Investment Why Soybean? • • Unavailability of high-quality seeds. Limited access to extension services for increased productivity and profitability. Inadequate processing facilities for value addition and increased income. Boosts employment and income, especially for women and youth. Impacts Increase per capita income to 2180 rural households to 755 USD from 380 USD. • Soybean based livestock and fish feed innovation and value addition • • • Investment Pillars Seed multiplication Investment (USD) 2,677,208.23 NPV (USD) IRR (%) 64,321.31 8.57% Extension services 848,974.37 61,016.32 9.93% Processing facilities 3,846,615.37 116,544.42 10.39% Value Chain Support Access to agricultural inputs: Quality seeds and inoculants Government of URT Access to agricultural implements: Portable agricultural machinery for planting and fertilizer application and harvesting • Government of URT TOTAL REQUIRED INVESTMENT: USD $7.37m . Increase income by converting Soybean into higher value-added products. Social economic and environmental benefits Ensured food and nutrition security through increased access and affordability of Soybean and its products. Increase accessibility and affordability of livestock and fish feed. Climate-Smart production and processing widely used (including renewable energy). FIAT PANIS Food and Agriculture Organization of the United Nations Hand-in-Hand Initiative Market Domestic Market High local demand of variety of Soybean based foods and household goods produced and sold in local market at affordable competitive price. Soybean based livestock and fish feed is sold locally at affordable price to livestock, fish and poultry farmers. International Market Tap on external market for Soybean raw material including China, India and other Asian countries. Secure regional market share for Soybean as raw material for animal and fish feed production. • Risk and mitigation Risk: Availability and affordability of quality seeds. Mitigation: Contract farming to ensure seed quality standard and affordability. Risk: High transportation cost from production area to major cities. Mitigation: Capitalizing on economies of scale and use of railway for transportation. Risk: Competitive market price from other regional producers. Mitigation: Investment on good extension service for reduced production cost.
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