Universiteit Gent Faculteit Landbouwkundige en Toegepaste Biologische Wetenschappen Vakgroep plantaardige productie

Chapter 7: Blueprint for Action Integreren van kleine landbouwproducenten met commerciële landbouwactiviteiten in Sub-Sahara Afrika Gevalstudie Zuidelijk en Oostelijk Afrika Linking Small-scale Farmers to Commercial Sector Activities The Case of Southern and Eastern Sub-Sahara Africa Beleidsvoorbereidend onderzoek 2000 VLIR - Universiteit Gent Prof. Dr. ir. Patrick Van Damme & ir. Tinneke Dirckx Universiteit Gent Faculteit Landbouwkundige en Toegepaste Biologische Wetenschappen Vakgroep plantaardige productie Laboratorium voor Tropische en Subtropische Plantenteelt en Etnobotanie Acknowledgements This report arose from discussions and meetings with people from a wide variety of organisations and communities to all of whom we are very grateful as they gave time to discuss with us and to patiently answer our questions. Without the kindness shown by these people, this research would not have been possible. We want to thank everyone who read our text and gave suggestions to make it more useable. A special word of thank is saved for VlIR that financed this research and gave us the chance to participate in this interesting and fascinating research. As we would not have been able to finish this research without the support of family and friends, who had to miss us when we were abroad executing this research or during the evenings we spent writing, the least we can do to show them our gratitude is to send them a great ‘thank you very much’. We hope that this report will give people (farmers, government, business community, donors, NGOs,…) ideas and some guidance in the search to transform agriculture into a more profitable and modernised sector in order to alleviate rural poverty in Southern and Eastern Africa, and more specifically in Tanzania and Zambia. Table of Contents Acknowledgements……………………………………………………………….….… I Table of Contents…………………………………………………………………....…. II List of Abbreviations and Expressions...……………………………………….….. 1 Introduction…………………………………………………………………………….... 3 1. Methodology…………..…………………………………………………………….... 4 2. Importance of Agriculture in Sub-Saharan Countries……………………..…. 6 3. Status of Agricultural Production and Marketing in Tanzania and Zambia…………..…………...………………………………………...………………… 11 3.1. Introduction………………………………………………………………………. 11 3.1.1. Profile of Zambia……………………………………………………………. 12 3.1.2. Profile of Tanzania…………………………………………………………... 14 3.1.3. Definition of Small-scale Farmer……………………………………………. 15 3.2. Agricultural Production ………………………………………………………… 15 3.3. Current Status of Agribusiness and Agricultural Marketing………………… 17 3.3.1. Organisation of Stakeholders………………………………………………... 17 3.3.2. Marketing……………………………………………………………………. 18 3.3.3. Infrastructure………………………………………………………………… 21 3.3.4. Information………………………………………………………………….. 23 3.3.5. Input Supply…………………………………………………………………. 24 3.3.6. Research and Extension……………………………………………………... 25 3.3.7. Technology and Processing…………………………………………………. 27 3.3.8. Financial Institutions………………………………………………………… 28 3.3.9. Policies: Legislation, Supervision and Statistics……………………………. 32 3.3.10. Conclusion…………………………………………………………………. 33 4. Which Crops/Commodities to Promote…………………………………………. 34 4.1.Criteria for Crops/Commodities to Promote…………………………………… 34 4.2. Potential Crops/Commodities for Agricultural Diversification and development……………………………………………………………………….. 36 5. Contract Farming……………………………………………………………………. 54 5.1. Definition…………………………………………………………………………. 54 5.2. Types of Contract Farming……………………………………………………… 56 5.3. Composing the Contract………………………………………………………… 57 5.4. Advantages of Contract Farming……………………………………………….. 59 5.5. Major Problems Encountered by Companies and Growers…………………... 60 5.5.1. Factors Undermining Sustainability of Contract Farming Schemes 60 5.5.2. Problems and Risks for Growers 61 5.6. How to Make Contract Farming Succeed……………………………………… 64 5.6.1. Issues Concerning Companies 65 5.6.2. Issues Concerning Farmers 70 5.6.3. Role for NGOs and Official Donor Organisations 71 5.6.4. Role for Governments 75 6. Farmers Organisations……………………………………………………………... 77 6.1. Definition……………………………………………………………………...….. 77 6.2. Features of Successful Farmers' Organisations…………………………...…… 79 6.2.1. Range of Activities Undertaken 79 6.2.2. Internal features 79 6.3. Contract Farming and Farmers' Organisations…………………………...….. 80 6.4. Role for Donors…………………………...…..…………………………...…….. 81 6.5. Good Practises for Group Formation…………………………...…..…………. 82 6.6. Situation for Zambia…………………………...…..……………………………. 83 6.7. Situation for Tanzania…………………………...…..………………………….. 88 7. Blueprint for Action…………………………………………………………………. 90 References ………………………………………………………………………………. 96 Annex I Mission Reports Annex II Detailed Maps of Tanzania and Zambia Annex III Cultivation of Selected Crops Annex IV Passports of Organisations/Companies visited Annex V Zambian Agricultural Situation Annex IV Tanzanian Agricultural Situation

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