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Agriculture is the backbone of the Tanzanian economy. The sector is
dominated by smallholder farms using traditional cultivation methods. Only
10 percent of the land is ploughed by tractor and production is determined
by rainfall.
Tanzania’s climate and growing conditions are favourable for a wide
variety of fruit, vegetables and flowers. The major fruit potential is in
pineapples, passion fruit, citrus fruit, mangoes, peaches, pears and
bananas, while vegetables include tomatoes, spinach, cabbage and okra.
Both tropical and non-tropical varieties of flowers are grown. There is
good potential to export these products to neighbouring countries, the
Middle East and Europe.
The
main staples include maize, sorghum, millet, rice, wheat, pulses, cassava,
potatoes, bananas and plantains. The major export crops include coffee,
cotton, cashew nuts, tobacco, sisal, pyrethrum and tea. Export crop
marketing has been liberalised, as has the supply of agricultural inputs
and prices.
The
robust growth of the agricultural sector in 2004 was attributed to good
weather experienced in most parts of the country in the 2003/2004 cropping
season. As a result the crops sub-sector, which accounted for about 75
percent of the agricultural sector, grew by 6.2 percent in 2004 as
compared to 3.6 percent recorded in 2003. The increase in production of
the major export crops was attributed to good weather, timely distribution
and usage of inputs as well as the revival of production in the privatised
coffee and sisal estates, subsidy on fertilisers and good producer prices,
proper marketing arrangements, expansion of acreage as well as increased
productivity. The decline in production of cashew nuts was due to cashew
diseases and low application of pesticides.
Incentives for agricultural production include a 100 percent capital
deduction on plant and machinery for agriculture, the reduction of stamp
duty on the transfer of agricultural land to a nominal sum and the
exemption for agriculture from skills and development levy. There are
further reliefs for agriculture both in terms of income tax, VAT and
customs duty.
In
addition to the fiscal measures for agriculture, government intends to set
aside funds for implementing District Agricultural Development Plans and
for subsidising fertiliser transport costs to certain specified regions.
The Export Credit Guarantee Fund for Cooperatives and other organisations
handling farmers’ produce are also to be enhanced.
Livestock Production
Livestock production makes up around 30 percent of agricultural GDP. About
40 percent of that comes from beef production, 30 percent from milk
production and the other 30 percent from poultry and smallstock
production.
Commercial ranching accounts for around 2 percent of the total cattle
herd. The National Ranching Company (NARCO), which has dominated
commercial ranching, is one of the remaining parastatals to be privatised
in 2004/2005.
Tanzania’s national cattle herd is made up almost entirely from short-horn
Zebu and number approximately 13.4 million. Roughly 13 million are
indigenous stocks, with 237,000 dairy cattle and 121,000 in commercially
managed beef herds. In addition there are an estimated 9.7 million goats
and four million sheep. There has been rapid growth in poultry and egg
production.
The
country’s livestock numbers have been increasing steadily in recent
decades. Most of the livestock products are sold domestically. The
government recognises the need for this sub-sector to be developed,
particularly in dairy farming and its products, and meat processing, to
meet domestic demand and to create export opportunities. While encouraging
private investment, the government is also concentrating on providing core
services to support further development of the sub-sector. Carrying
capacity of Tanzania’s rangelands is estimated at 20 million animal units.
Presently there are only 16 million animal units, denoting good potential
for further expansion.
Fisheries
Tanzania
has abundant freshwater lakes (6 percent of the total mainland area) with
substantial fish resources. In addition it has an 800-kilometre coastline
with a narrow continental shelf. Freshwater fisheries account for more
than 80 percent of the landed catch.
An
estimated 60,000 people are employed as full-time fishermen, while another
30,000 are engaged in part-time fishing and fisheries-related activities,
such as fish processing, marketing, distribution, net-making, marine
engine repair, boat-building and other activities.
Tanzania owns about 50 percent of Lake Victoria, 45 percent of Lake
Tanganyika, 20 percent of Lake Nyasa and several minor lakes, dams,
reservoirs, swamps, rivers and small ponds suitable for aquaculture. The
major fish species caught are sardines, Nile perch, haplochromis, catfish
and tilapia. Traditional methods are still used on the inland lakes, but
modern fishing techniques are also employed in the coastal waters. There
are significant opportunities for investors to establish fish processing
plants, crustacean fisheries, and deep-sea fishing.
Forestry
Tanzania
has a total forest area, mainly savannah and intermediate woodland, of
about 44 million hectares, which is about 50 percent of the country’s
total land area. Most of the forest reserves have been targeted for
production, and only 1.6 million hectares are protected. The principal
species of wood are valuable tropical woods such as cedar, African
rosewood, podocarpus and mahogany. The industry is dominated by mechanical
wood processing including saw milling, furniture and joinery, and
wood-based panels (board, fibreboard and plywood).
More
than two-thirds of total log consumption (700,000 cubic metres per annum)
is softwood, coming from 18 national plantations. There is an important
surplus of up to 0.5 million cubic metres per annum in the existing
plantations, which allows for future industrial development. The allowable
cut will gradually increase to 1.6 million cubic metres by the year 2008.
Demand for wood products is higher than supply in the domestic and export
markets.
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