SAGCOT Strategic Partnership: Soya Value Chain...

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The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) is a public-private partnership that seeks to catalyse responsible agribusiness investments in the country’s southern corridor. The SAGCOT Centre Ltd serves as a partnership broker and information hub among SAGCOT partners to facilitate socially inclusive and environmentally sustainable value chain investments. Each year, several strategic partnerships emerge that SAGCOT actively promotes and facilitates due to their high impact and potential for expansion. What makes the Soya Partnership a Strategic Partnership? Improves livelihoods and supports food security. The Soya Partnership enables smallholder farmers to increase their incomes by boosting productivity and accessing markets. It also supports Tanzania’s food security by reducing reliance on imports and supporting the growth of the livestock sector. Seeks end-to-end value chain solutions. The Soya Partnership works with partners from across the value chain – from smallholder farmers to processors to retailers – to build strong linkages and address gaps. Convenes partners. A range of partners are working together to build the Soya Partnership. Broad impact. An estimated 3,600 smallholder farmers are currently benefiting from the project. Demonstrates positive environmental impact. The Soya Partnership works closely with smallholder farmers to improve soil management techniques, to ensure the sustainability of production. Overview There is significant potential to expand the production of soya for animal feed and oil in Tanzania. The majority of the demand for animal feed protein is currently being met by imports and dagaa fish. Despite the Government of Tanzania having identified soya production as a key priority for the country’s agricultural development, presently, domestic production of soybeans remains limited. The Southern Highlands region is home to the majority of the country’s soya cultivation, with Ludewa Cluster (Songea) taking the lead and the Ihemi Cluster as a particular focus for smallholder production. Smallholder yields are often low, however, due to acidic soil, minimal use of fertilisers, limited availability of quality seeds and poor crop management. Building a strong value chain is critical to boosting production. The soya value chain can incorporate a wide range of actors, from smallholders to large-scale producers, brokers and agents, processors, retailers and consumers. SAGCOT is working with a range of partners, led by the Clinton Development Initiative and its Anchor Farm project to build an interlinked value chain in maize, soya and animal feed. The Soya Value Chain will develop linkages along the value chain and tackle some of the obstacles to the growth of the sector, such as seed availability, regulation and production methods. December 2015 SAGCOT Strategic Partnership: Soya Value Chain Partnership vi soya:vi soya 26/11/2015 16:52 Page 1

Transcript of SAGCOT Strategic Partnership: Soya Value Chain...

Page 1: SAGCOT Strategic Partnership: Soya Value Chain …sagcot.co.tz/wp-content/uploads/2017/11/Value-Chain-Soya.pdfproject to build an interlinked value chain in maize, soya and animal

The Southern Agricultural Growth Corridor of Tanzania (SAGCOT)is a public-private partnership that seeks to catalyse responsibleagribusiness investments in the country’s southern corridor. TheSAGCOT Centre Ltd serves as a partnership broker and informationhub among SAGCOT partners to facilitate socially inclusive andenvironmentally sustainable value chain investments. Each year,several strategic partnerships emerge that SAGCOT actively promotesand facilitates due to their high impact and potential for expansion.

What makes the Soya Partnership a Strategic Partnership?

• Improves livelihoods and supports food security. The SoyaPartnership enables smallholder farmers to increase their incomes byboosting productivity and accessing markets. It also supports Tanzania’sfood security by reducing reliance on imports and supporting the growthof the livestock sector.

• Seeks end-to-end value chain solutions. The Soya Partnership workswith partners from across the value chain – from smallholder farmers toprocessors to retailers – to build strong linkages and address gaps.

• Convenes partners. A range of partners are working together to buildthe Soya Partnership.

• Broad impact. An estimated 3,600 smallholder farmers are currentlybenefiting from the project.

• Demonstrates positive environmental impact. The Soya Partnershipworks closely with smallholder farmers to improve soil managementtechniques, to ensure the sustainability of production.

Overview There is significant potential to expand theproduction of soya for animal feed and oil

in Tanzania. The majority of the demand foranimal feed protein is currently being met

by imports and dagaa fish. Despite theGovernment of Tanzania having identified

soya production as a key priority for thecountry’s agricultural development,

presently, domestic production of soybeansremains limited. The Southern Highlands

region is home to the majority of thecountry’s soya cultivation, with LudewaCluster (Songea) taking the lead and the

Ihemi Cluster as a particular focus forsmallholder production. Smallholder yieldsare often low, however, due to acidic soil,

minimal use of fertilisers, limited availabilityof quality seeds and poor crop

management.

Building a strong value chain is critical toboosting production. The soya value chain

can incorporate a wide range of actors,from smallholders to large-scale producers,

brokers and agents, processors, retailersand consumers. SAGCOT is working with a

range of partners, led by the ClintonDevelopment Initiative and its Anchor Farmproject to build an interlinked value chain in

maize, soya and animal feed. The SoyaValue Chain will develop linkages along the

value chain and tackle some of theobstacles to the growth of the sector, such

as seed availability, regulation andproduction methods.

December 2015

SAGCOT Strategic Partnership:Soya Value Chain Partnership

vi soya:vi soya 26/11/2015 16:52 Page 1

Page 2: SAGCOT Strategic Partnership: Soya Value Chain …sagcot.co.tz/wp-content/uploads/2017/11/Value-Chain-Soya.pdfproject to build an interlinked value chain in maize, soya and animal

The Anchor Farm project in Iringa waslaunched in 2013: it is a commercial farmpartnering with thousands of neighbouringsmallholder farmers to provide them withacccess to quality inputs for maize and soyproduction, as well as training and marketaccess. Farmers involved in the Partnershipgain access to improved soya seed,alongside training in advanced agronomictechniques. They also have access to adomestic bulk buyer for their soya.

To date, more than 1000 hectares ofcommercial farmland have been rehabilitated.In 2015, 450 hectares of maize have beenplanted, with an average yield of 9 tons perhectare. The Soya Partnership has alsosupported the construction of silos forstoring maize from the commercial farm, aswell as from smallholders.

Inclusive and Sustainable ImpactThe Soya Partnership is currently workingwith 3,600 smallholder farmers in Iringa,enabling them to improve their own socialwelfare.

Additionally, there are 40 demonstrationplots set up across 30 villages to providecontinuous training programmes tosmallholders on agricultural best practice.The number of demonstration plots isexpected to reach 60 in the near future, tofurther increase the capacity buildingelements of the programme.

For more information please contact us

SAGCOT Centre Limited tel: +255 (0) 22 260 1024 Tanzania Private Sector Foundation +255 (0) 22 260 0146 (TPSF) Building fax: +255 (0) 22 260 2368Plot No. 1288, Mwaya RoadMsasani Peninsula, P.O. Box 11313 [email protected] Dar es Salaam, Tanzania www.sagcot.com

Challenges and Next StepsIn order to establish a fully functional soya value chain, SAGCOT and theSoya Partnership are working to overcome a number of challenges currentlyfacing the sector. For example, the level of availability of soya seeds for theindustry is limited, and the seed registration process can be slow. Toovercome this, the Soya Partnership will bring together sector stakeholdersto identify seed suppliers and distributors in the region. This will enable amore efficient monitoring of availability and distribution networks.

There have also been delays in the uptake of soya production, with farmerssometimes reluctant to grow the crop due to lack of seed and marketlinkages. Soya can also be relatively unprofitable in the first year, meaningthat smallholders need access to affordable financing. To address this,SAGCOT is building a consortium of partners to actively promote soyafarming in the region to actors across the value chain. The consortium willalso prepare guidelines and procedures to support the rollout of soyafarming, and will identify and address any gaps in the value chain. Toincrease smallholders’ access to financing, SAGCOT is also working withfinancial sector stakeholders to identify innovative financing mechanisms.

Key Stakeholders in the Soya Partnership

• Clinton Development Initiative • SeedCo• Silverlands• TOSCI

• ARI-Uyole • IITA• TRA• MAFC

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