Farmer-market links key to farm growth

DAR ES SALAAM: RISING farm production will deliver stronger economic returns only if farmers are better connected to commercial markets, finance, infrastructure and reliable buyers, agricultural stakeholders have said.

Agricultural Growth Corridors of Tanzania (AGCOT) Chief Executive Officer Mr Geoffrey Kirenga, who is also a member of the Presidential Food and Agriculture Delivery Council, said recently the increased production alone would not be enough to drive sustainable growth and improve farmers’ incomes.

“Farmers cannot drive agricultural growth on their own. They need to be connected to markets, finance, infrastructure, technology and reliable buyers. Our focus must therefore be on building value chains that allow farmers to produce commercially, reduce their risks and earn better returns from their production,” Mr Kirenga said.

He said farmers needed to be integrated into functioning value chains rather than operating as isolated producers, with aggregation systems, supportive policies and skilled human capital also important to improving their participation in commercial agriculture.

His remarks come as investment in Tanzania’s agricultural input industry gathers pace, with Seed Co Tanzania opening a new processing and warehousing facility in Engorora village, Kisongo Ward, Arusha.

The 18bn/- facility, built on a 7,100-square-metre site, is expected to expand the company’s local seed production and processing capacity while improving supplies to farmers.

Mr Kirenga said increased domestic production of agricultural inputs was only one part of strengthening agricultural value chains.

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He said farmers must also be able to afford improved seed, access financing, obtain technical support, aggregate their produce and reach dependable markets if increased production was to translate into higher incomes.

Seed Co Tanzania said locally produced seed now accounts for about 50 per cent of its output in the country, up from 42 per cent two years ago.

Seed Co Group Chairman Mr Pearson Ngowero said the investment would strengthen the company’s ability to produce and process seed locally while improving supply to farmers.

He said the expansion was part of efforts to strengthen the agricultural input system and reduce bottlenecks affecting farmers’ access to quality seed.

The investment highlights growing private-sector interest in the agricultural sector, but its broader economic impact will depend on how effectively farmers are connected to the inputs, finance and markets needed to commercialise production.

For smallholder producers, stronger value-chain links could also create opportunities to improve productivity, reduce market risks and capture a larger share of value generated from agricultural production.