19th ANNUAL RESEARCH WORKSHOP TRANSFORMATION, JOB CREATION AND POVERTY ERADICATION By Dr. Parseko Kone 4 Ledger Plaza Bahari Beach Hotel Dar es Salaam, Tanzania April 09-10, 2014 Introduction 1. Agriculture transformation in Singida 2. Success Factors 3. The importance of informal enterprise in Capital Accumulation 4. Important factors in moving up the value chain 5. Contribution of Cooperatives as towards enterprise transformation, job creation and Poverty eradication 5 1. Agriculture and Rural Transformation A; Crop Subsector B; Livestock Subsector 6 A; Crop Subsector Transformation Increase in production of Cash and Food Crops; Year Food crops Cash crops Total Percentage increase 2009/2010 2012/2013 442,180 164,673 859,544 292,029 94 77 606,853 1,151,573 90 7 Increase in the production trend of Selected priority food and Cash crops Total Production 2009/2010 (Tones) Total production 2012/2013 (Tones) Percentage increase Sorghum 159,083 192,784 21 Finger Millet 90,576 128,957 42 Paddy 3,438 15,827 360 Sweet potatoes 44,707 123,976 177 Sunflower 107,263 202,803 89 Onion 15,525 38,378 147 Crop 8 Success Factors i. Increased area under irrigation from 2,696 Ha year 2009/2010 to 19,000 Ha year 2012/2013. Productivity increase; Name of Scheme Number of Ha under Irrigation Paddy Productivity before Project (Tones) Paddy productivity after project (Tones) Masimba 350 1.3 2.8 Maweni 258 2.9 4 Mtiwe 165 2.1 4.5 9 Success factors-2 ii. Increased use of improved farm implements as follows; Farm implement 2009/2010 2012/2013 Percent Tractors 89 173 94 Powertillers 58 140 141 Ox plough 73,830 80,808 10 5882 12,575 114 Ox - curt 10 Success factors-3 Increased farm operations efficiency using Ox plough and Tractors 11 Success factors-4 iii. Increased use of improved varieties of seeds through production of quality declared seeds and subsidised seeds from Central Government; Seed supply 2009/2010 (Tones) 2013/2014 (Tones) Quality declared seeds 5 66 Subsidized seeds 80 20 Total 85 86 12 Success factors-5 Onion Quality declared seed farm in Iramba District The availability of improved seeds to farmers is increased by production of QDS at Ward level. 13 Success factors-6 iv. Increased number of farmers trained on improved agronomical practices; Prepared and distributed the Singida Agricultural and Livestock Stakeholders Guideline, 2006. Expected to produce 2nd edition recently. Establish Farmers Field School for training farmers. The number of FFS has increased from 30 during year 2009/2010 to 434 during 2012/2013 Number of Extension Field Officers has increased from 87, 2009/2010 to 123, during 2012/2013 14 Success factors-7 One of Farmers Field School at Sanjaranda Manyoni District. 15 Success factors-8 v. Increased investiment in value addition of crop produces. The number of Sunflower oil procesing o Industries has increased from 32, year 2005/2006 to 104, year 2012/2013. o Small (73), Medium (26) and Large (5) The number of trained Enterpreneurs development by SIDO is 1,841 16 on enterprise Success factors-9 Sunflower processing machines Small scale Large Scale 17 Success factors-10 vi. Improved formalised Selling points to enhance easy access to markets and attract traders. 2009/2010 – 27 Market Sheds 2012/2013 – 93 Market sheds vii. Increased budget allocation for implementation of DADPs . 18 Success factors-11 viii. Availability of financial resources through Agricultural Sector Development Programme to support small Scale producers including value addition activities. Year Amount received Year Amount received 2006/2007 421,628,045 2010/2011 1,879,121,406 2007/2008 3,739,045,043 2011/2012 1,344,809,907 2008/2009 2,679,166,362 2012/2013 1,344,809,907 .2009/2010 2,606,412,533 Grand Total 14,014,993,203 19 Success factors-12 ix. Improved environmental conservation; • Total area of reserved natural Forest – 520,325.48 Ha. • Stimulated the production of Honey; Average annual production; • Honey – 156,118Kgs – TShs -1,561,182,500 • Wax - 57,759Kgs – TShs- 404,314,750 • Employment -173 groups with 3,633 people 20 B; Livestock Subsector Success; • Chicken live weight increased from 1.5Kg, 2009/2010 – 2Kg, 2012/2013 • Number eggs/chicken/year increased from 45, 2009/2010 to 75 2012/2013 • Milk Production increased from 2lts/day per Cow, 2009 to 8Lts/day/Cow. • Increased average number of chicken per household from 3-4, 2009 to 16, 2013 21 Livestock success factors-2 i. Training livestock keepers through Livestock Field Schools. ii. Vaccination ; Both livestock and Poultry iii. Increased market availability - Price of chicken increased from TShs 5000 per chicken, 2009 to TShs 12,000 per chicken 2014. iv. Support Poultry keepers with incubators Eg. Ikungi DC - supported 4 groups with incubator with capacity of hatching 3000 eggs at a time v. Availability of Community Vaccinators – Ikungi DC trained 632 Poultry Vaccinators. 22 2. i. Role of employment as an important link between transformation enterprise development and inclusive growth Provision of technical expertise for an enterprise transformation. With capital accumulation an employee can transform enterprise and bring inclusive growth; A case study of Mwenge Oil Mill Started an enterprise with 2 machines – capacity 2.8 tones/day. Number of people employed 3 Current; 5 machines -10 -14 tones/day, 2 godowns – capacity 1,370 tones, Number of employee full time employee 25. 23 2. ii. Important issues in facilitating the process of moving up the value chain include; Availability of viable technology Presence of market for the product Access to financial services Availability of services – Business and technical training, Financial intermideation and consultancy Presence of Important infrastructures (Power, water, roads) 24 3. i. Importance of informal enterprise as an agent for capital accumulation Name of Enterprise There Start year are Initial Capital Number of Current Capital Number of Investmentthatemployee evidence informal investment enterprises employee are agent for capital accumulation. Chalk industry – Manyoni 2000 13,000,000 40 150,000,000 20 Mwenge Oil Mill – Singida MC 2009 60,000,000 5 300,000,000 25 Mene Oil Mill – Singida (R) 2003 2,800,000 3 60,000,000 19 25 3. ii. Transformation of informal enterprise into formal According to registration procedures of enterprises in Tanzania context, Informal enterprise are transformed into formal by registering their business with BRELLA Factors –win-win i. ii. iii. iv. Formally determined and agreed benefits prior agreement There should be legally agreement between two parties Formulation of laws and regulations that will govern the whole process Presence of mediator 26 7. Role of Cooperatives in the Transformation Total number of Cooperatives increased from 100 2009 to 258, 2013- AMCOS (99), SACCOs (123), Industrial (2), Irrigators (10), Bee keepers (9), Minerals (15) Roles i. i. Source of finance for enterprise development Provide credit to members – TShs 1,127,275,857 year 2009 to 2,827,350,300 year 2013 ii. Attract capital investment to members – A total of 70 members received Tractor loan from TIB (52), Input Trust Fund (4), CRDB (8), SUMA JKT (5) iii. Support value addition of crops to members Eg 2 Cooperatives 9 Mtinko and Ilongero) iv. iv. Agricultural Marketing Cooperatives play an important role in marketing of products. The implementation of warehouse receipt system in Singida increased prices of Sunflower from Sh 210 per Kilogramme year 2009/2010 to Sh 750 year 2011/2012. 27 Impact of Transformation in Singida Region • Increased community contribution in improving social and Economic services (Construction of education infrastructures, Health, Water) • Improved residential houses 28
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