Opportunities for Investment in Tanzania’s Poultry Sector
More and more Tanzanians are consuming chicken and eggs every year. The increasing demand offers many opportunities for companies looking to invest in the poultry sector in Tanzania. Currently the sector is growing slow, and in order to support this growth and to identify where the main opportunities lie for Dutch companies, the Embassy of the Kingdom of the Netherlands commissioned a quick scan of the poultry sector. This study provides Dutch businesses willing to invest in the sector with useful insights such as its current status, challenges, opportunities and facts & figures related to the different production areas in Tanzania, a stakeholder analysis, and information on the different subsectors.
The poultry subsector in Tanzania
The Poultry Subsector in Tanzania consists of approximately 72 million chickens, emerging steadily both in indigenous and exotic chicken. With changing eating habits in urban areas and a growing economy the domestic market for exotic chicken and eggs is likely to keep expanding.
With enough land to grow chicken feed, opportunities for expansion can be found at the commercialisation of the sector.
Markets could be better organised, supply of quality feed and day-old chicks could be stabilized and veterinary costs remain high. Also, improvements could be made by developing processing industries and by improving the sector’s distribution system and installing a third-part logistics cold chain for the movement of poultry and poultry products from the farms to consumers.
Business opportunities
Until date, the potential of the poultry sector in Tanzania has remained untapped, which opens opportunities for investments to revamp the sector and related industries. The Tanzanian poultry sector is ripe for investment with opportunities ranging from input supply all the way across the value chain to retailing and exporting. The Poultry Quick Scan gives a clear overview on the current status of the Tanzanian poultry sector and suggests possible areas for interventions.
Capacity Building
Emerging areas for capacity building include biosecurity enhancement and sector coordination. Biosecurity enhancement focusses on the reduction of the entry of diseases to the farms. This can be done through: farm management, such as quality control, quality feeds; record keeping; the availability and affordability of veterinary services; pilot contracting farming arrangements.
Sector coordination includes advocacy and governance. Advocacy entails the formation of strong poultry associations which can play a key role in guiding the poultry industry and strengthening the animal feed industry. Governance focuses on improving the climate for private investment in both breeding farms and animal feed companies.
Full study
To read the full study, please click this link.
Regional opportunities
As the demand for poultry products is not only rising in Tanzania but also in its neighboring countries, Wageningen University and Research together with the Netherlands Africa Business Council (NABC) have published a report on Regionalization in Poultry Development in Eastern Africa. This study goes into depth on the interdependency between East African countries in poultry production. To read the study, please visit this page.
This study attracted a poultry trade mission from the Netherlands to Tanzania in October 2018. Eleven Dutch companies visited Tanzania in order to broaden their network and exchange information with local poultry farmers and other stakeholders. In order to provide a better understanding of Tanzania’s poultry sector for interested companies to invest in the Tanzanian poultry sector the Poultry Quick-Scan was commissioned. The complete report and its findings were then presented at a stakeholders meeting during the trade mission at the Embassy of The Netherlands.
About the Poultry Impact Cluster
As a follow-up to the poultry trade mission, NABC invited seven of the participating companies to form a consortium called the 'poultry impact cluster'. This impact cluster agreed to work together to strengthen the poultry value chain in Tanzania and will address some of the challenges identified during the poultry trade mission. The impact cluster, called ‘Kukua na Kuku,’ is a three-year program which aims to strengthen the Tanzanian Poultry sector. To mark the start of this cluster, the NABC will organize an official launch on 6 May 2019 in Moshi. To stay up to date on the activities of the impact cluster, please visit this page. In case you want to attend the launch, please contact NABC via: mackenzie.masaki@nabc.nl
Regular updates on developments in the agriculture sector in Tanzania will be given on this website and on twitter. If you would like to receive more information about the agribusiness in Tanzania please subscribe to our newsletter, by e-mailing us at dar-lnv@minbuza.nl.