Tanzania records highest food reserve in eight years

This current stockpile marks a noteworthy turnaround, as NFRA had experienced a significant drop in its stocks after beginning the year with 459,561 tonnes recorded in January 2015.

Despite facing challenges, efforts to replenish the reserves led to a substantial increase of 214,968 tonnes by December 2021.

NFRA’s executive director, Andrew Komba, told The Citizen that the agency has successfully collected 244,000 tonnes of maize, rice, and smaller quantities of millet.

He stated that NFRA’s objective is to procure 350,000 tonnes during the 2023/24 Fiscal Year, aligning with the country’s broader strategy of increasing cereal storage capacity to three million tonnes by 2030.

“We have implemented several strategies to achieve this goal and meet the country’s demands. Some of these strategies involve mobilising increased government funding and exploring alternative financing options from domestic and financial institutions,” he said during an exclusive interview.

He also revealed that the agency is actively securing funds from both domestic and foreign sources through low-interest loans.

Additionally, NFRA is considering the establishment of a food security bond, which would serve the purpose of collecting additional funds to enable the agency to fulfil its key roles more effectively and efficiently. 

He emphasised that the focus on stockpiling food is not only for ensuring the nation’s food security but also for supporting neighbouring countries by fostering prosperous business chains within the private sector and across borders.

“We are actively supporting the private sector in meeting the growing grain market demands in neighbouring countries such as the Democratic Republic of Congo (DRC), Kenya, Rwanda, Burundi, and South Sudan, among others,” he added.

While maintaining food security remains NFRA’s primary objective, the agency is also committed to ensuring that farmers benefit from their crop production activities.

Without disclosing specific government investment figures, Dr Komba assured Tanzanians that the government is significantly ramping up its investments in the food procurement subsector.

“No funds have been secured so far through alternative funding mechanisms. 

However, efforts are underway to mobilise enough financial resources from both domestic and international sources,” he stated.

He reassured the public that the goal of procuring 350,000 tonnes in the 2023/24 fiscal year is on track, with cereal purchasing operations currently underway nationwide.

Presenting the 2023/24 budget, Agriculture Minister Hussein Bashe informed Parliament that, to bolster the country’s food security, the ministry, in collaboration with NFRA, plans to acquire and store 400,000 tonnes of cereals in the current year.

He specified that out of this target, 200,000 tonnes would be dedicated to maize and the remaining 200,000 tonnes to rice.

In addressing market competition within the procurement process, Dr Komba explained that NFRA offers relatively competitive prices for grains without distorting the market. This approach is designed to attract farmers to engage with the agency.

He elaborated, “NFRA provides market incentives to farmers to ensure they benefit from their involvement in the food business. NFRA welcomes the idea of farmers benefiting from better prices offered by other buyers.”

Agriculture stakeholder Audax Rukonge recommended increasing grain storage to 500,000 tonnes, a quantity sufficient to sustain the country’s three-month food demands during times of widespread hunger.

He noted that NFRA’s capacity has been adversely impacted by insufficient funding and the agency’s release of stocked food.

He pointed out that the proposed prices for the 2023/24 fiscal year have discouraged private buyers, resulting in a more favourable environment for the national agency.

“However, the prices of maize flour, rice, and husks have remained relatively high, defying expectations during the harvest season.

This suggests a decline in the number of private buyers who also act as distributors to private vendors,” he emphasised.

He noted that since NFRA’s highly subsidised cereals are sold at lower prices, purely commercial private traders are placed in a less competitive position.

Mr Rukonge, who formerly served as the Executive Director of the Agricultural Non-State Actors’ Forum (Ansaf), pointed out that, given the nature of subsidy in cereal procurement, NFRA should not sell the produce at lower prices.

“During procurement, NFRA has been offering exceptionally high prices per kilo of cereals, excluding private buyers from the process, which has led to a saturation of the produce in the agency’s warehouses,” he explained.

He encouraged the private sector to begin exporting value-added food to neighbouring countries, highlighting the potential value of both maize flour and husks.

According to him, the private sector should be incentivized with measures such as low-interest loans and government guarantees for the procurement of agricultural machinery.

Dr Anna Temu, a senior lecturer at the Sokoine University of Agriculture (SUA), said NFRA trend was positive as accumulated cereals would play a significant role in price stabilisation.

However, she noted that challenges arise when farmers are not paid in a timely manner, causing a backlog of produce in NFRA’s warehouses and hindering their ability to trade in a lucrative market.

She explained, “This disrupts farmers’ capabilities and the smooth consumption of reserved food, leading to serious future concerns and sustainable agricultural production.”

She added; “Farmers who failed to purchase seeds for autumn and spring cultivation due to El Niño threats have also been discouraged."

Dr Temu concurred with Mr Rukonge, stating that government-set prices have sidelined private buyers, including traders and millers, making NFRA the sole buyer and saturating the market. Currently, private buyers are waiting for prices to decline before purchasing agricultural produce this season, she said.

She suggested that the government could facilitate the procurement of remaining cereals from farmers for the private sector to build sufficient stocks, enabling them to seize opportunities in neighbouring countries.

Balancing these actions with consumer prices, however, remains a significant challenge.

EcomResearch Group Ltd and the University of Dar es Salaam don, Prof Deogratias Mushi, emphasised that an increase in food reserves would improve price stability, provide better prices for farmers, and ensure efficient food storage and distribution to citizens in vulnerable regions.

“Tanzania has been producing food seasonally, and we have not yet developed technology that guarantees high yields consistently,” he observed. “As a result, whenever we face drought for two consecutive years, disruptions occur throughout the country,” noted Prof Mushi.

He emphasised the need for more efforts to revolutionise the country’s agriculture, making it capable of sustaining the nation with harvested crops for up to the next four years.

The professor pointed out that the current reserves, while valuable for stabilising market prices, are insufficient to feed the country for an extended period in the event of disasters.