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Sugarcane production is an important subsector in Tanzania’s agricultural sector. It contributes
approximately 35% of the gross output of the food-manufacturing sector and some 7 to 10% of total
manufacturing value added. Being among the largest agro-processing industries in the country, the
sugar subsector is a major employer with direct labour force of approximately 18,000 people, indirect
labour force of 57,000 people with 75, 000 households and dependents. The Tanzanian sugar cane
production can be categorized into two subsectors: outgrowers subsector and estate subsector. The
outgrowers are associated with estates because they don’t own sugar processing mills, thus sell their
crops to the mills owned by estate subsector. There are four major players in the estate subsector
owning five processing plants. These are Kilombero Sugar Company (owning two mills) in Morogoro,
Mtibwa Sugar Estates (MSE) also in Morogoro, TPC Ltd in Kilimanjaro, and Kagera Sugar Ltd in Kagera
Large-scale plantations have been the predominant model for sugarcane production in Tanzania and
elsewhere in Sub-Saharan Africa. However, due to limited land for horizontal expansion of sugarcane
estate farming, the sugar companies in Tanzania specifically Kilombero Sugar Company Limited (KSCL)
and Mtibwa Sugar Estate in Morogoro region have strongly encouraged outgrowers production.
Outgrowers schemes in Tanzania account for approximately 27% of all cane production and 48%
respective mills’ throughput. However, their efficiency is hampered by several factors. Outgrowers
production in Tanzania is constrained by several factors the main ones being poor management of
outgrowers’ associations, poor infrastructure and haulage facilities, poor cane husbandry practices, lack
of access to finance to invest in sugarcane production, high harvesting and production costs, and fire
outbreaks in outgrowers’ fields before harvesting, and dependence on rain-fed agriculture. Despite the
challenges faced, outgrower production is seen as an appropriate model to increase sugarcane
production hence fill the existing supply gap of sugar in the country.
Tanzania was affected by the reform of the European Sugar Market. The government developed a
National Strategy on how to adjust to new EU Sugar market regime. The EU Commission in response
outlined a strategy for the period 2006-2013 on how to support National plans for adjusting to the new
price regime and drafted a Multi-annual Indicative programme for the period 2007-2010 thereby
improving Tanzania’s competitiveness with other sugar-producing countries.
The current programme known as Accompanying Measures Protocol (AMSP) 2011-2013 builds on the
achievements of the previous Multi-Annual Indicative Programme (MIP) 2007-2010. It has been
designed in line with the MIP 2011-2013 and it takes stock of the new Sugar Industry Development Plan
and Strategy (SIDPS) 2011/12-2015/16. |
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