Market Report, "Tanzania Agribusiness Report Q2 2011", published

PRLog (Press Release) - Feb. 1, 2011 - In the five years to 2015, we predict that Tanzania will witness strong growth in domestic demand for maize, sugar and coffee. Although maize is already one of Tanzania's major staple foods, demand growth will be underpinned by the country's expanding population, together with rising living standards. Rising living standards will also contribute to the increased consumption of sugar and coffee. Steady consumption growth is predicted for rice and sorghum, both of which are staple foods for key segments of the population. Meanwhile, we predict that Tanzania's sugar, coffee, rice and maize sectors will experience strong production growth over the next five years. Growth within these sectors will partly reflect the increased investment the industry is receiving from both public and private-sector agents; it will also reflect the opening-up of new markets for major export crops. Many of Tanzania's grain farmers will continue to face the twin challenges of variable rainfall and drought. Other problems facing grain farmers include infrastructural limitations, which hamper their ability to distribute grain surpluses. Fluctuating commodity prices remain the biggest downside risk for the coffee and sugar sectors.

Key Forecasts

* Maize will remain Tanzania's most widely produced and consumed grain at a national level. Production is forecast to expand by 29% in the five years to 2014/15; however, consumption will grow almost at the same rate, resulting in a continued reliance on imported corn in order to meet the shortfall. In the short-term, distribution problems will continue to weigh heavily on Tanzania's maize farmers.
* We continue to predict that sorghum production will grow by 10% in the 2010/11 agricultural year, albeit at a reduced pace of 10%. In the five years to 2014/15, we predict that sorghum output will increase by 38%; growth has the potential to benefit from government initiatives aimed at boosting productivity.
* Rice production will grow by 31% to 2014/15, with growth being partly driven by foreign companies which cultivate rice for shipment to their home markets. Rice consumption continues to be higher in the diets of high-income consumers in urban areas; consumption is predicted to grow by 17.5% to 2015.
* Our coffee production forecast envisages output rising by almost 57% in 2010/11. In 2010/11, 1.02mn 60kg bags of this major cash crop and key export are expected to be produced in Tanzania. In the five years to 2014/15, production will increase by 22%, largely in response to export-driven demand and efforts to boost output.
* Meanwhile, we now predict that domestic coffee consumption will grow by 26% to 2015. Slow but steady growth is benefitting from rising incomes and marketing efforts aimed at increasing domestic consumption.
* Sugar production is predicted to grow by 38% in the five years to 2014/15. Growth will be driven by efforts to expand the amount of land under cultivation, as well as the country's sugarprocessing capacity. Meanwhile, sugar consumption will grow by 32.5% to 2015, underpinned by population growth and improved living standards.
* 2010 Real GDP Growth: 6.4% (up from 6.0% in 2009; predicted to average 6.4% from now until 2015).
* Consumer Price Inflation: averaged at 7.0% year-on-year in 2010, down from 12.1% in 2009 (predicted to fall to an average of 6.4% in 2011).


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Report Table of Contents:

Executive Summary
SWOT Analysis
- Tanzania Agricultural SWOT
- Tanzania Political SWOT
- Tanzania Economic SWOT
- Tanzania Business Environment SWOT
Industry Forecast Scenario
- Tanzania Grains Outlook
- Table: Tanzania - Corn Production, Consumption & Trade
- Table: Tanzania - Sorghum Production, Consumption & Trade
- Table: Tanzania - Corn Production, Consumption & Trade
- Table: Tanzania - Sorghum Production, Consumption & Trade
- Tanzania Rice Outlook
- Table: Tanzania - Rice Production, Consumption & Trade
- Table: Tanzania - Rice Production, Consumption & Trade
- Tanzania Coffee Outlook
- Table: Tanzania - Coffee Production, Consumption & Trade
- Table: Tanzania - Coffee Production, Consumption & Trade
- Tanzania Sugar Outlook
- Table: Tanzania - Sugar Production, Consumption & Trade
- Table: Tanzania - Sugar Production, Consumption & Trade
- Competitive Landscape
- Table: Agricultural Commodity Producers & Traders
- Table: Agribusiness Suppliers
- Table: Integrated Agricultural Producers
Commodity Price Analysis
- Monthly Softs Update
- Cocoa
- Table: Cocoa
- Coffee
- Table: Coffee
- Milk
- Table: Milk
- Sugar
- Table: Sugar
- Grains Update
- Corn
- Table: Corn
- Rice
- Table: Rice
- Soybean
- Table: Soybean
- Wheat
- Table: Wheat
Downstream Supply Chain Analysis
- Industry Forecast Scenario
- Macroeconomic Forecast
- Table: Tanzania - Economic Activity, 2008-2015
BMI Forecast Modelling
- How We Generate Our Industry Forecasts

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.