Business Monitor International


Tanzania Agribusiness Report

Published 02 April 2014

  • 96 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Tanzania Agribusiness Report

BMI View: We continue to favour the Tanzanian sugar and coffee industries over the medium term owing to their potential for growth on the back of strong investment in capacity. The grain industry in Tanzania will remain less competitive than in other countries in the region, particularly South Africa and Zambia, and we see little potential for the country to become a major grain exporter.

Agribusiness Market Value
BMI Market Value By Commodity (% of total)

Key Forecasts

  • Sugar production growth to 2017/18: 39.2 % to 424,500 tonnes. Increased investment in the sector as well as booming demand on the back of growing confectionery and soft drinks demand will support growth.

  • Corn consumption growth to 2018: 17.9 % to 5.9 mn tonnes. A combination of enhanced yields (contributing to lower prices) and rising living standards is expected to drive corn consumption growth.

  • Coffee production growth to 2017/18: 25.2 % to 1. 4 mn 60kg bags. The sector is benefiting from investment in disease-resistant trees, and from incentives for small producers.

  • 2014 real GDP growth: 6.9% year-on-year (y-o-y), stable compared with the 2013 level; forecast to average 7.2% over 2013-2018.

  • Consumer price inflation: 7.3% average in 2014 (down from 7.9% average in 2013).

  • BMI universe agribusiness market value: 1 3.8 % y-o-y decrease to USD 1. 7 bn in 2014, forecast to remain relatively stable between 2012/13 and 2017/18.

Industry Developments

Despite the introduction of drought-resistant rice seeds, farmers in Tanzania struggle to be competitive owing to higher power tariffs and increased combined harvester costs. Local farmers have indicated that even if they have managed to double production of rice thanks to the new seeds in some cases, they still pay up to TZS97,000 per hectare for a whole season, TZS150,000 per hour per combine harvester and TZS3,000 per bag per day.

Aside from Ethiopia, East African coffee producers have seen either stagnation or outright...

Table of Contents

BMI Industry View
7
SWOT
9
Agribusiness
9
Business Environment
12
Industry Forecast
13
Rice Outlook
13
Table: Tanzania Rice Production & Consumption, 2012-2017
14
Table: Tanzania Rice Production & Consumption, 2007-2012
15
Grains Outlook
16
Table: Tanzania Corn Production & Consumption, 2012-2017
17
Table: Tanzania Corn Production & Consumption, 2007-2012
18
Coffee Outlook
19
Table: Tanzania Coffee Production & Consumption, 2012-2017
20
Table: Tanzania Coffee Production & Consumption, 2007-2012
23
Sugar Outlook
24
Table: Tanzania Sugar Production & Consumption, 2012-2017
25
Table: Tanzania Sugar Production & Consumption, 2007-2012
29
Commodities Price Analysis
31
Monthly Softs Strategy
31
Table: Select Agricultural Commodities - Performance & BMI Forecasts
40
Table: BMI COMMODITY STRATEGY
41
Monthly Grains Strategy
41
Table: Select Agricultural Commodities - Performance & BMI Forecasts
49
Table: BMI Strategy Table
50
Upstream Analysis
52
Africa Machinery Outlook
52
Africa Fertiliser Outlook
57
Africa GM Outlook
62
Downstream Analysis
68
Food
68
Table: Food Consumption - Historical Data & Forecasts, 2010-2017
68
Table: Fish Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
69
Table: Corn Oil Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
71
Table: Liquid Milk Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
71
Table: Cheese Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
72
Drink
72
Table: Beer Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
73
Table: Carbonated Soft Drinks Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
73
Mass Grocery Retail
74
Table: Mass Grocery Retail Sales - Historical Data & Forecasts, 2010-2017
74
Demographic Forecast
76
Table: Tanzania's Population By Age Group, 1990-2020 ('000)
77
Table: Tanzania's Population By Age Group, 1990-2020 (% of total)
77
Table: Tanzania's Key Population Ratios, 1990-2020
78
Table: Tanzania's Rural And Urban Population, 1990-2020
79
Methodology
80

The Tanzania Agribusiness Report features Business Monitor International (BMI)'s market assessment and independent forecasts for production, consumption and trade across core agricultural commodities.

BMI's Tanzania Agribusiness Report includes independent commodity price forecasting and analysis for key agricultural outputs, an overview of the agribusiness competitive landscape and a discussion of the downstream context of agricultural production in relation to country food consumption forecasts and composite food and beverage trade forecasts.

Key Benefits

  • Use BMI's independent industry forecasts to test other views - a key input for successful planning in dynamic agribusiness markets.
  • Apply BMI's medium-term commodity price analysis to assist with budgetary planning and the identification of investment opportunities and potential risks.
  • Assess the activities and market position of your competitors, partners and clients.

Coverage

BMI Industry View

An analytical summary of BMI's latest key industry forecasts and views, highlighting recent changes and key risks to the industry outlook for agribusiness in Tanzania.

Industry SWOT Analysis

At-a-glance perspectives on the Strengths, Weaknesses, Opportunities and Threats facing the agricultural industry.

BMI Supply & Demand Forecasts

Divided into sections based on various diverse sectors in the agriculture market, the chapter provides insight into each market's agricultural industry, centred on sector forecasts to end-2018 for the consumption, production and trade of key agricultural commodities.

Consumption forecasts are accompanied by a discussion of the main drivers of consumption growth: macroeconomic factors, food processing trends, price movements and, increasingly, demand from the non-food sector.

Production forecasts examine the trends influencing BMI's production outlook: global demand, price increases, public and private sector investment and agricultural efficiency improvements.

Trade forecasts are accompanied by a discussion of the factors influencing a country's trade in agricultural goods, including domestic demand, global prices and government trade policies.

BMI's forecasts are accompanied by a Risks- to-Outlook assessment, which examines potential factors that could affect our existing forecast picture and the likelihood of their occurrence.

BMI's Commodity Price Analysis

Fundamental and technical analysis of the short- and medium-term price outlook for key agricultural commodities, based on globally-recognised benchmarks.

Downstream Analysis

Analysis of headline food and drink forecasts, including total food consumption, per capita food consumption and total sector trade, which provide important downstream intelligence for primary agricultural producers.

Featured Analysis

Includes relevant articles from BMI's daily analysis service. These can include long-term projections on agricultural imports and exports, our perceptions of the impacts of economic slowdown on key companies and subsectors within the Agribusiness industry in a given country, our analysis of fertilizer production as well as other relevant analysis of recent news and events on Store and Landing Pages.

Methodology & Sourcing

The Tanzania Agribusiness Report is based on an extensive network of multilateral organisations, government departments, industry associations, chambers and company reports.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc