East African Agriculture Focuses on Transfer of Technology, Education
27 May 2014 Tanzania might be a small market at only $36 million, but its potential for growth is exponential as policy evolves and the demand for crop protection products increases and area expands, clearing a path toward industry harmonization and advancement. All this in a country where only 10% of the arable land is being put to use.
Approximately 200 people from 18 countries gathered at the White Sands Hotel in Tanzania just north of Dar es Salaam’s city center on May 13-14 for the FCI Trade Summit – Africa to share ideas about crop productivity and good agricultural practices and to meet new trading partners.
Key speakers included representatives from the Tanzania Ministry of Agriculture, International Fertilizer Development Center (IFDC), African Fertilizer and Agribusiness Partnership (AFAP), GlobalG.A.P., CropLife and other leaders from private industry, associations and NGOs.
East Africa’s numerous climatic zones, moderate rainfall and agrarian culture position the region for a sizable expansion. Last year, Tanzania produced 118% of its food requirements. Now a new layer of sophistication is emerging that could propel the adoption of technology, including better seed, fertilizers and crop protection products.
“Tanzania is now the breadbasket for our neighboring countries,” said Dr. Mbette Mshindo Msolla, Tanzania country manager for the African Fertilizer and Agribusiness Partnership.
But the region also has its challenges. Poor soil health and political instability jeopardize productivity. Tanzania’s geographic location puts it in the center of numerous conflicts in East Africa that revolve around land and natural resources. Fallout from these changes spills over porous and sometimes modulating country borders, putting more stress and strain on infrastructure regionally, which affects farms and agribusiness. Lack of food security contributes to the poverty and instability that underlie ethnic clashes and economic struggles.
Additionally, Msolla explained that while the Tanzanian government supports agriculture by subsidizing almost 50% of the price of fertilizer and seeds for rice and maize, the seeds are low quality and the subsidy programs are not sustainable.
Dr. Sylus Chuchu of Farmlink Enterprises in Kenya and Dr. Tunde Arosanyin of the All Farmers Association of Nigeria also called for better federal aid programs, noting that the government should increase its subsidies of fertilizer to more than 50% or give it away free.
In addition to subsidy program revisions, changes to the registration process will likely play a key role in opening up the market. According to Tasleem Ahmed, regional manager for the Middle East and Africa for agriculture research and analysis firm Kleffmann Group, initial studies show that crop protection products and hybrid varieties have achieved only a low penetration in Tanzania, creating the perfect opportunity for the government to harmonize registration and licensing processes domestically and regionally so that private industry can fill the growing need for crop protection products, biological pesticides, crop nutrients and modern seeds.
The Tanzanian crop input market is growing more than 5% a year, a modest gain considering the percolating potential, says Harish Dhutia, executive director of CropLife Tanzania.
“There is a lot of room for crop protection product usage in Tanzania, which has not been exploited. We have big, big room to grow in agriculture,” Dhutia says.
In Kenya, a $96-million crop protection market according to CropLife Kenya CEO Richard Sikuku, its predictable regulatory system and adoption of international standards has made it a model of regulatory reform. However, efforts to standardize regulatory systems that govern agriculture products has been a slow and arduous process.
“We have been trying to harmonize the registration system in 14 countries but we have not been successful,” Sikuku says. “In Kenya we have really tried to do our best to talk to the government about the environment for pest control products.”
Regulatory Updates
Registration was the topic of the keynote presentation by Dr. Elikana E. Lekei, Tanzania’s registrar of pesticides. He explained that one change that has contributed to streamlining the dense and sometimes inscrutable registration process is an increase in the number of government personnel who conduct inspection, testing and surveillance to mitigate counterfeits and ensure authentic products are reaching buyers.
Lekei explained that because of conflicts over land, Africa is experiencing an increase in unconventional horticulture crops such as mushrooms, strawberries and baby corn that produce high yields while occupying minimal acreage. According to Lekei, 535 insecticide formulations for horticultural crops are registered in Tanzania, more than any other type of crop. The second most common registered insecticide formulations are for wheat and barley at 73 formulations. This is followed by sugarcane, maize, flowers, cotton, coffee, cashews, rice and beans consecutively.
The number one most frequently registered active ingredient in Tanzania is cypermethrin at 65 registrations, followed by mancozeb at 61 and deltamethrin and dimethoate at 50. The least frequently registered AIs are aluminum phosphide, MCPA, metalaxy, triadimefon and acetamiprid at 11 each.
Tanzania’s national Kilimo Kwanza (Farming First) strategy is another legislative change that is helping the market open up to foreign investment. Launched by the government in 2009 to boost the agriculture sector, this initiative lowered taxes on crop protection products and created the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a public-private partnership that helps farmers, Dhutia explained while presenting an overview of crop protection product use in the country.
According to Dhutia, cultivated area is expanding. Maize occupied 1.8 million hectares in 2000 and has almost doubled to 3.3 million since then. Rice acreage has more than doubled from 500,000 hectares to 1.3 million hectares since 2000. Still, crop protection product use is low, averaging only 1.8 kg per hectare per year, although the majority (53%) of farmers believe crop inputs are beneficial, according to a CropLife Tanzania survey. The survey showed that 58% of Tanzanian farmers are using insecticides, 28% are using fungicides, and 14% are using herbicides.
Obstacles to the broader use of crop protection include lack of good agricultural practices by smallholder farmers, lack of product education and an unpredictable value chain that hinders product availability. The FCI Trade Summit – Africa focuses on solutions to these challenges, most notably, creating more transparency in the value chain and hosting buyer/seller meetings to create a more predictable and competitive agriculture input distribution network.
A further policy change will involve upcoming revisions to the 1997 Plant Protection Act concerning sections that govern phytosanitary restrictions, according to both Lekei and Dhutia. The legislation aims to protect people and animals from harmful effects of plant protection products. It could potentially strengthen associations, mainly CropLife and as a result allow private industry more influence on policies and procedures that govern agriculture products.
Similar legislation exists in Kenya, and Dr. Richard Sikuku, CEO of CropLife Kenya spoke of the need for greater regulatory harmonization like this in all of East Africa. Sikuku explained that Kenya is a crop protection product regional distribution hub and while some joint regional legislative initiatives are in place, challenges like border control, counterfeiting, and illegal activity can lessen their effectiveness.
According to Sikuku, agreements between Kenya, Tanzania and Uganda on labelling, testing and application protocols are already in place. He said regional stakeholders have agreed to form the East African Association of Farm Input Suppliers to synchronize regional industry goals in a unified way.
“I think any of us who are responsible agriculturalists need to be aware of how we fit in the system,” said Dr. Raymond Hoyum, Advantage International president.
“It was a good opportunity to interact and disseminate information,” said Lekei of the FCI Trade Summit. “Conditions for investment in Tanzania are good. It’s a safe country, and agriculture is a priority,” he said.
Next Trade Summit: August 26-28, Green Valley Ranch Resort & Spa, Las Vegas, Nevada, U.S. Register now.
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