Action Plan for the Fresh Avocado Sector Development in Tanzania - - PowerPoint PPT Presentation

Action Plan for the Fresh Avocado Sector Development in Tanzania

for the benefits of Tanzanian public and private stakeholders December 2019 #EACMARKUP

By Hebron A. Mwakalinga

PRESENTATION OUTLINE

• 1. The Vision
• 2. Summary of Strategic

Objectives

• 3. Specific Strategic Objectives
• 4. Potential Value Chain Risks
• 5. Critical Success Factor

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The VISION

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Tanzania avocado industry is sustainably competitive in international and regional markets and contributes significantly to poverty reduction and nutrition to local community

Summary of Strategic Objectives

SO 1: To organize industry players so as to optimize access to services markets, commodity markets and capacity to dialogue SO 2: To increase Tanzania’s production and export of avocado from less than 9,000 tons in 2018 to more than 23,000 tons by 2029. SO 3: To promote and develop and support Tanzania’s international avocado market. SO 4: To improve efficiency in logistics. SO 5: To develop avocado value chain finance. SO 6: To improve the business environment.

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SO: 1.0 Strategic industry players are well organized so as to optimize support for production, marketing and dialogue services

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Type of activities Priority Key indicator(s) Potential partners 1.1 Improve the list of avocado stakeholders through collaboration with district horticulture officers (DHOs). Make the list

• f members available

electronically. 1.1.1 Support the district agricultural offices in avocado producing districts to develop and or improve the list of avocado value chain actors (R&D, input suppliers, nurserymen, farmers, traders, packhouse operators, suppliers of CA reefer container services, exporters, end market buyers. High A fully functional database of key avocado stakeholders in Tanzania TAHA DHO lead farmers (outgrowers database) 1.1.2 Communicate to actors on the intentions and

• bjectives and work with district offices to

coordinate initial meetings and selection of representatives. High Stakeholders hold meetings to deliberate on issues affecting the development of the avocado sub- sector. TAHA, DHO, Lead farmers 1.2 Facilitate establishment of the national association of avocado and later support formation of District and Regional chapters. 1.2.1 Learn from other commodity associations and boards that are functioning well in Tanzania for example the Association of Tanzania Tobacco Traders (ATTT) High A summary of recommendations to TAHA on the formation of an association of avocado stakeholders in Tanzania. Avocado association leadership TAHA, ACT, ANSAF 1.2.2 Study the avocado associations in Kenya and South Africa to guide the sustainability of the association High A summary of sustainability of the association of avocado stakeholders in Tanzania. Organizational Devt. consultant Avocado association TAHA 1.2.3 Facilitate the meetings to present findings and recommendations on establishment of the association High Members commitment to implement the strategy and business plan Avocado association members TAHA

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SO: 1.0 Strategic industry players are well organized so as to optimize support for production, marketing and dialogue services

Type of activities Priority Key indicator(s) Potential partners 1.3 Facilitate preparation

• f the association

and sector strategies that will guide the

• perations of the

associations and the sub-sector growth. 1.3.1 Hire an organizational development expert to design the association's structure, roles and responsibilities. Key words are effective, efficient and sustainable. High The association has a strategy and business plan documents Avocado association TAHA 1.3.2 Piggyback fund raising to support initial operations of the association (possibly the support should run between 3 and 5 years. High Reliable sources of funding for the associations

• perations have been

confirmed. Avocado association TAHA Ministry of Agric. 1.3.4 Engage an expert to monitor, evaluate and support improvements of the performance

• f the association.

High The effectiveness of the association increases over time at least in the initial 3

• 5 years.

Avocado association 1.3.5 Devise and manage/implement a seamless exit of external support. Low At least all operational costs are funded through internal sources. Avocado association

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SO: 1.0 Strategic industry players are well organized so as to optimize support for production, marketing and dialogue services

Type of activities Priority Key indicator(s) Potential partners 1.4 Take active part in the establishment of the national horticulture development agency to ensure interests of avocado industry are well represented in the agency's agenda 1.4.1 Establish an MoU between the horticulture agency and the avocado association There is close partnership between the agency and association Ministry of Agriculture TAHA Avocado association 1.4.2 Participate in all important meetings to ensure issues pertaining to avocado value chains are being effectively addressed by the agency. Tanzania Avocado Association members sit in various sub-sector and sectoral committees.

SO 2.0 Tanzania increases its market share in the world market from less than 9,000 tons to more than 23,000 tons by 2029

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` Type of activities Priorit y Key indicator(s) Potential partners 2.1 Support the consolidation, adaptation and dissemination of GAP training materials both in printed matter and electronic in English and Kiswahili. 2.1.1 Mobilize financial support for production of avocado GAP materials High A comprehensive proposal document prepared Mboga na Matunda Olivado Lead farmers 2.1.2 Collect all GAP materials available, synchronize, update, adapt them to respective areas. High A comprehensive report on the available avocado GAP materials Mboga na Matunda Olivado Lead farmers 2.1.2 Translate the materials in Swahili High Sets of avocado GAP information are readily accessible Mboga na Matunda TARI – Uyole, TOSC TPRI, SUA 2.1.3 Disseminate through the most effective channels including social media, internet, printed matter, documentary, Zoom sessions, etc. High Most farmers are able to adhere to GAP Social media experts Traditional mass media Avocado association 2.2 Support GAP training to new and existing farmers so as to

• ptimize yield

while complying to market technical specifications. 2.2.1 Using the network established in SO 1, mobilize and train trainers (TOT) at district level. Participants to include village/ward extension officers, extension officers working for lead farmers, suppliers of inputs and representatives of R&D firms. Mediu m There is satisfactory number

• f certified trainers on

avocado GAP Avocado association DHOs Lead farmers 2.2.2 Monitor and evaluate the training, identify weaknesses and implement lessons learnt. Low The effectiveness of the training programme keep improving over time Avocado association DHOs Lead farmers 2.5.3 Encourage district offices to establish databases of other service providers e.g. suppliers of technologies needed in irrigation, financial institutions, etc. and link them with farmer associations. Low Districts have structured information on avocado services market in their areas. Avocado association DHOs Lead farmers

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SO 2.0 Tanzania increases its market share in the world market from less than 9,000 tons to more than 23,000 tons by 2029

` Type of activities Priority Key indicator(s) Potential partners 2.3 Identify and provide training to commercial nurserymen on production and marketing

• f quality seedlings and
• traceability. Use the

electronic platform established in 1.1 above 2.3.1 Enter into MoU with lead farmers such as Africado, Rungwe Avocado, Lima Kwanza, Olivado, etc. to support the sector in the dissemination of education to produce quality planting materials. Medium Quality avocado seedlings supply chain is visible and accessible by farmers. Avocado association Lead farmers TARI DHOs 2.3.2 Using the network established in SO 1, mobilize nurserymen at district level. Medium A database of nurserymen is established. Avocado association Lead farmers, TARI DHOs 2.3.3 Hire trainers (well versed with the crop) to provide training on nursery operations and selection of planting materials. Medium Key nurserymen are trained and certified. Avocado association Lead farmers TARI, DHOs 2.4 Establish and implement a robust disease and pests early warning- and prevention system enabled by ICTs. 2.4.1 Engage TPRI on the results of the survey on pests done in partnership with ICIPE in 2018-19 to provide baseline information for Northern Zone and disseminate results to farmers Low There is increase in the knowledge by stakeholders

• n potential pest and

disease risks Avocado association Lead farmers TARI, DHOs BCA (Biological Control Agency) 2.4.2 Look for digital tools available in the market that can help track pests, work in partnership with lead farmers. High A set of tools proposed based on relevance and accessibility Lead farmers TPRI Avocado association SUA 2.4.3 Deploy, train and use the digital tools in tracking and forecasting of pests and diseases There is increase in the knowledge by stakeholders about potential pest and disease risks. Lead farmers TPRI Avocado association SUA

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SO 3.0 Tanzania increases its market share in the world market from less than 9,000 tons to more than 23,000 tons by 2029

` Type of activities Priority Key indicator(s) Potential partners 2.5 Support farmers to minimize risks associated with poor access to agro-inputs through improved agro inputs market information. 2.5.1 Engage TPRI, TAFRA and TOSCI on sharing information

• f approved avocado inputs to ensure compliance to

international standards. Medium A functional agro- inputs platform TPRI, TAFRA, TOSCI, private inputs suppliers 2.5.2 Improve access of the inputs information by farmers through electronic and social media. Medium Guide farmers on how to access and use the agro-inputs platforms TPRI, TAFRA, TOSCI, private inputs suppliers 2.5.3 Encourage district offices to establish databases of

• ther service providers e.g. suppliers of technologies

needed in irrigation, financial institutions, etc. and link them with farmer associations. Low Districts have structured information on avocado services market in their areas. DAICOs Avocado association

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SO 3.0 Tanzania increases its market share in the world market from less than 9,000 tons to more than 23,000 tons by 2029

Type of activities Priority Key indicator(s) Potential partners 3.1 Put in place an efficient market information system built on principles of fair competition, transparency and non-political. 3.1.1 Form a committee to review if the Agriculture Routine Data System (ARDS) can improve the scope, depth, timeliness and reliability of data on production of avocado (and forecasting). Medium Assessment of viability of integrating avocado data in ARDS is concluded Ministry of Agric. (Statistics Unit) Avocado association NBS 3.1.2 Engage the Ministry of Agriculture, PO-RALG and NBS to establish data integration modalities. Medium ARDS system is able to produce statistics on avocado PO-RALG Ministry of Agric. NBS 3.1.3 Provide technical support for the integration, processing and retrieval of avocado production data in the ARDS. Medium The reliability of avocado data production is improved Ministry of Agriculture DHOs Avocado association 3.2 Institutionalize a quality control system that will guarantee compliance with GlobalGAP and UNECE requirements. 3.2.1 Based on specific location (avocado is sensitive to micro-climate), establish farmer clustering schemes for product quality management control. High A list of clustering criteria set and proposed zones is disseminated to farmers and government offices Avocado association Lead farmers DHOs 3.2.2 Hire quality certification organizations to advice on quality control from farm level up to loading in CA reefers. High Farmers that benefits from the technical services Quality certification companies GlobalGAP 3.2.3 Develop a farmer-practiced self-administered quality control scheme(s) under the supervision of the association. High Functioning scheme(s) on farmer-administered quality control Lead farmers Quality certification companies GlobalGAP

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Type of activities Priority Monitoring & Evaluation Potential partners Key indicator(s) Means of verification 3.3 Establish a Tanzania horticulture market development unit in EU to initially focus

• n avocado

but later pool in other horticulture produce. 3.3.1 Review recommendations in the EU Market Opportunity report. High A summary of action plan for development

• f EU avocado market

Paper and electronic report. TAH TanTrade Ministry of Agriculture Avocado association 3.3.2 Liaise with Tanzania Embassy in the selected EU Tanzania main avocado market (The Netherlands, France, UK, etc.). for identification of a country to locate the office. High 3.3.3 Source funds for operating the office High Budget for operating the office for at least 3 years is ascertained Financial statements TAHA (integrate with

• ther export

horticultural produce) TanTrade Avocado association 3.3.4 Recruit the staff, monitor, evaluate and recommend improvements. High Increased sales orders in both EU and other international markets. Export statistics International trade magazines TRA - Customs Dept. Annual performance reports

SO 3.0 Tanzania increases its market share in the world market from less than 9,000 tons to more than 23,000 tons by 2029

SO 4: To improve efficiency in logistics.

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Type of activities Priority Monitoring & Evaluation Potential partners Key indicator(s) Means of verification 4.1 Support improvement of TPA to fast track the construction of berths No. 6-10 for containerized cargo with an objective of improving efficiency at the fresh produce container berth and related infrastructure 4.1.1 Establish a working group to assess and recommend a practical timeline highlighting pros and cons of bringing the cargo back to Dar es Salaam. Low A set of recommendations

• n how to fast

track the port

• perations in

favour of avocado (fresh produce). Working group report TPA Port cold chain experts (and shipping companies) Avocado association 4.2 Support improvement of performance of the paperwork processing for completing the export transaction at the Port. 4.2.1 Hire a consultant to review the inefficiency caused by non- integrated paper work and recommend the streamlining. Low Efficiency likely to be brought about by integrated paperwork Consultant's report on how to integrate paperwork TPA ICT solution provider Fresh produce exporters Avocado association 4.2.2 Provide technical assistance in the harmonisation of paperwork among authorities operating at the Port (TPA, TICS, TRA, TAEC, WMA, PHU, etc.). Low Improved efficiency due to integrated paperwork Time it takes to process papers TPA ICT solution provider Fresh produce exporters Avocado association

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Type of activities Priority Key indicator(s) Potential partners 4.3 Provide support in attract investors in air cargo business in Tanzania 4.3.1 Mobilize other stakeholders in the fresh export produce and form a working group/coordinating

• ffice.

Medium A coordinating mechanism for developing fresh produce logistics agreed TAA, TCAA, SwissPort, Logistics companies 4.3.2 In partnership with other

• rganizations provide

support for business plan development and establishment of air cargo services in Tanzania Low Business plan developed indicating the financial attractiveness of air cargo transport TAA, TCAA, SwissPort, airline companies e.g. ATCL, Ethiopia Airline, KLM, Kenya Airways, SwissAir, Turkish Air, Qatar, etc.

SO 4: To improve efficiency in logistics.

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Type of activities Priority Key indicator(s) Potential partners 5.1 Attract investments in avocado subsector 5.1.1 Prepare avocado investment packages indicating profitability ratios, potential areas for avocado production in Tanzania and services markets in order to attract investors and financial institutions. High Investment packages along the value chain available for interested investors. Avocado association District Authorities, PASS, TADB and other banks, venture funds 5.1.2 Hold consultations with various potential domestic and foreign sources of finance to the sector. High Investors attracted to invest in avocado value chain. Avocado association District Authorities, PASS, TADB and other banks, venture funds

SO 5: To improve efficiency in logistics.

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Type of activities Priority Key indicator(s) Potential partners 5.2 Facilitate the design and implementation of a credit guarantee scheme for avocado value chain development. 5.2.1 Hire Consultant(s) to support the avocado association in negotiation, conceptualization and design of financing arrangements that are

• sustainable. The arrangement include

credit guarantee scheme, matching grant fund, input trust fund, etc. High A financing model developed Avocado association TAHA, PASS, TADB, Venture Capital Funds, Agric. insurance companies 5.2.2 Educate avocado value chain actors

• n the opportunity for avocado value

chain finance. High Increase in value chain financing Avocado association TAHA, PASS, TADB, Venture Capital Funds, Agric. insurance companies 5.2.3 Monitor, evaluate, learn and improve the financing mechanism High A set of feedback from financiers and beneficiaries required to improve recovery Avocado association TAHA, PASS, TADB, Venture Capital Funds, Agric. insurance companies

SO 5: To improve efficiency in logistics.

SO 6.0 There is enabling legal and regulatory framework guiding the sub-sector

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Type of activities Priority Key indicator(s) Potential partners 6.1 Facilitate the review of laws and regulations to improve the flow of modern agricultural technologies in the sector especially planting materials, agro- chemicals, biological control agents, fertilizers and micro- nutrients. 6.1.1 Review regulatory constraints facing the avocado value chain building on the value chain study, also refer to the Blueprint (2017). High An updated draft list of regulatory constraints. TAHA Regulatory authorities (TPRI, TAFRA, TOSCI, TBS, TRA, etc) ACT, ANSAF and representatives of

• ther ASLMs

6.1.2 Mobilize other stakeholders to gain consensus and prioritize regulatory constraints facing the avocado sub- sector. High A working list of updated regulatory constraints prioritized based on their impact to the value chain. Avocado association TAHA Ministry of Agriculture Regulatory agencies 6.1.3 Engage and dialogue with the agriculture sector leading ministries (ASLMs) on the regulatory constraints. High Number of regulatory constraints being or have been addressed. Avocado association TAHA, ACT, ANSAF, Regulatory agencies

Potential risks of avocado value chain development

• i. Competition for land and labour use Vs food security with substance

farmers

• Concern over households replacing staple food (security) crops with avocado

ii.Climate change

• Unpredictable weather patterns, drought, excessive rains, hail/frost,

emergence and or spread of new pests, etc.

iii.Politicizing of business

• Interference in marketing system, land acquired by investors, water resources,

price setting and taxes.

iv.Emerging environmental and human right activists

• Over clearing forests to pave way for avocado, disturbing natural ecosystems

and water aquifers.

• Call for value chains to uphold the human right-based approach (HRBA).

v. There is a risk of water politics if water abstraction is not managed well.

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Critical success factors

• Organized and strengthened commodity-based institution to be able to

serve the crop effectively;

• Farming practices that enable reduce costs while complying to market

specifications are successfully implemented;

• There is a robust quality control system that will guarantee compliance

with GlobalGAP and UNECE requirements;

• There is affordable and sustainable source of good quality planting

materials;

• Laws and regulations that impinge the flow of modern agricultural

technologies in the sector especially on planting materials, agro- chemicals, biological control agents, fertilizers and micro-nutrients are removed;

• There is a robust disease and pests early warning and prevention

mechanism (this should include management of pollinators);

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Critical success factors

• Provide a window, in form of targeted or smart measures to ensure the

industry is able to access technologies that increase yield and reduce production costs such as those for irrigation, weeding, spraying, etc.;

• There is an efficient market system built on principles of fair competition,

transparency and non-political;

• Efficient logistics that guarantee minimum transport charges, minimum risks

from pack house to port of exit and from port of exit to port of destination;

• Availability of competitive source of finance to help accelerate production

scale-up, construction of pack houses and processing facilities;

• Investor-centric regulatory regime to lower the cost of doing business as

recommended in the Blueprint.

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Recommendation

• In order to grow a competitive fresh avocado industry, it requires to be
• rganized.
• Who will organize the sector?
• Value chain actors themselves
• TAHA
• The Ministry of Agriculture

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Thank you!

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