TBL, IFC finance pact a boon for farmers

Dar es Salaam. Dodoma farmers and those in the supply chain can expect a boost thanks to a new collaboration between Tanzania Breweries Limited (TBL), the International Finance Corporation (IFC), and the Cereals and Other Produce Regulatory Authority (COPRA).

The initiative focuses on enhancing farmer contracts to facilitate financing and investments. This will address capacity challenges and boost the production of barley, wheat, sunflower, and soya.

This was revealed at a stakeholder engagement event yesterday to review, validate and submit recommendations to the government to enable enhanced contractual and marketing arrangements valuable to facilitate financing and investments for farmers and other supply chain actors along the value chain, in particular for food crops such as wheat, sunflower, soya, etc. By improving access to finance and capital for farmers, the partnership aims to address the issue of capacity challenges within and along the supply chain. The financial support particularly targets agriculture production and infrastructure investments necessary to increase productivity and reduce post-harvest losses.

Looking at how the initiative will boost production capacity and the supply chain, minister for Agriculture Hussein Bashe said: “The ministry welcomes a multi-stakeholder-led approach to the development of a strategic barley roadmap for Tanzania. We are supportive of this meeting among stakeholders and experts to identify and map the economic and societal impacts of barley and encourage the active production of barley, specifically in the main barley-growing regions of Arusha and Manyara.”

Speaking at the launch, Michelle Kilpin, TBL managing director, said: “TBL’s drive to source its barley locally coincides with market developments in Tanzania that will make it possible to scale from sourcing 3,500 tonnes of barley to more than 20,000 tonnes of barley from as many farmers as possible.

However, pivoting from the current volumes to the target volumes will require changes in marketing arrangements to facilitate investments in supply chain quality and capacity, using digital tools to increase efficiencies and transparency, access to finance for farmers and others across the supply chain, as well as inclusiveness and sustainability.”

The malt barley is facing significant demand growth from TBL, which is expanding its malting operations plant in Kilimanjaro region, which will boost demand to over 25,000 tonnes per year from the current supply of 3,500 tonnes per year. However, the sector currently faces various challenges, including low production and investment, inconsistent quality, poor coordination among players, limited farmer participation, shortage of suitable land, inadequate research and infrastructure, weak contractual arrangements, and import/export challenges.

The proposed contractural framework serves as the solution for the sector as the necessary “tool” to enable the sector to meet the growing market demand.

Irene Madeje Mlola, director general of COPRA, said: “This partnership aims to strengthen the performance of agriculture markets and relationships along the agricultural supply chain, particularly for cereals.”