UNITED REPUBLIC OF TANZANIA MINISTRY OF LIVESTOCK AND FISHERIES DEVELOPMENT INVESTMENT OPPORTUNITIES IN LIVESTOCK INDUSTRY

UNITED REPUBLIC OF TANZANIA MINISTRY OF LIVESTOCK AND FISHERIES DEVELOPMENT INVESTMENT OPPORTUNITIES IN LIVESTOCK INDUSTRY DECEMBER, 2011

TABLE OF CONTENTS 1.0 INTRODUCTION ------------------------------------------------------------------------------------ 1 1.1 Country Profile -------------------------------------------------------------------------------------- 1 1.2 Climate ----------------------------------------------------------------------------------------------- 1 1.3 Soil Type and Vegetation -------------------------------------------------------------------------- 1 1.4 Policy and Legal Framework ---------------------------------------------------------------------- 1 1.4.1 National Livestock Policy and Legal Framework ------------------------------------------ 2 1.5 Importance of the Livestock Industry ----------------------------------------------------------- 2 2.0 INVESTMENT ENVIRONMENT -------------------------------------------------------------------- 3 2.1 Political Stability and Related Factors ----------------------------------------------------------- 3 2.2 Market Access --------------------------------------------------------------------------------------- 4 3.0 LIVESTOCK INDUSTRIES RESOURCES ---------------------------------------------------------- 4 3.1 NARCO Ranches, Multiplication Units and Other by Products ------------------------------- 5 3.1.1 NARCO Ranches ------------------------------------------------------------------------------- 5 3.1.2 Multiplication Units ---------------------------------------------------------------------------- 5 3.1.3 The Hides, Skins and Other by Products -------------------------------------------------- 6 4.0 POTENTIAL AREAS OF INVESTMENT ------------------------------------------------------------ 6 4.1 The National Ranching Company (NARCO) ----------------------------------------------------- 6 4.1.1 Kongwa Ranch --------------------------------------------------------------------------------- 6 4.1.2 Mzeri Ranch ------------------------------------------------------------------------------------ 8 4.1.3 Ruvu Ranch ------------------------------------------------------------------------------------10 4.1.4 Mkata Ranch ----------------------------------------------------------------------------------11 4.1.5 Kikulula Ranching Complex -----------------------------------------------------------------12 4.1.6 Missenyi Ranch -------------------------------------------------------------------------------14 4.1.7 West Kilimanjaro ------------------------------------------------------------------------------15 4.1.8 Kalambo Ranch -------------------------------------------------------------------------------17 4.1.9 Privately Owned Ranches -------------------------------------------------------------------18 4.2 Other Animal Production Resources -------------------------------------------------------------19 4.3 Livestock Multiplication Units (LMUs) -----------------------------------------------------------21 4.3.1 Mabuki LMU -----------------------------------------------------------------------------------21 4.3.2 Sao Hill LMU -----------------------------------------------------------------------------------21 4.3.3 Nangaramo LMU ------------------------------------------------------------------------------21 4.3.4 Kitulo Dairy Farm -----------------------------------------------------------------------------21 4.3.5 Ngerengere LMU ------------------------------------------------------------------------------21 4.4 Leather Industry -----------------------------------------------------------------------------------22 4.4.1 Tanning ----------------------------------------------------------------------------------------22 4.5 Other Livestock By-products ---------------------------------------------------------------------24 4.6 Animal Feeds ---------------------------------------------------------------------------------------25 4.7 Central Veterinary Laboratory -------------------------------------------------------------------28 4.8 Livestock Products, Abattoirs & Meat Processing Plants -------------------------------------29 4.9 The Dairy Industry ---------------------------------------------------------------------------------31 5.0 CONCLUSION ---------------------------------------------------------------------------------------37 i

INVESTMENT OPPORTUNITIES IN THE LIVESTOCK INDUSTRY 1.0 INTRODUCTION 1.1 Country Profile Tanzania is located between longitude 29 0 and 41 0 East and Latitude 1 0 and 12 0 South. The country is bordering Kenya and Uganda to the North; Rwanda, Burundi and Democratic Republic of Congo to the West; Zambia, Malawi and Mozambique to the South and the Indian Ocean to the East. It covers an area of 94.52 million hectares of which 88.6 million hectares is land mass and 5.92 million hectares is covered by water. Currently, the country has a human population estimated at 40 million. 1.2 Climate Generally, Tanzania has a tropical type of climate. However, in the highlands, temperatures range between 10 0 C and 20 0 C during the cool and hot seasons, respectively. The rest of the country has temperatures which hardly go below 20 0 C. The hottest period spreads between November and February (25 0 C - 31 0 C) while the coolest period occurs between May and August (15 0 C - 20 0 C). It has two rainfall regimes, a unimodal (December - April) and a bimodal (October -December and March - May). The former is experienced in the Southern, South West, Central and Western parts of the country, and the later is found in the North and Northern Coast. In the bimodal regime, the March-May rains are referred to as the long rains (Masika), whereas the October- December rains are generally known as short rains (Vuli). 1.3 Soil Type and Vegetation Most soils in Tanzania are reddish-brown derived from the volcanic rocks. Other types include mbuga and alluvial soils which have good potential for agricultural production. The interior plateau is covered with red and yellow tropical loams of moderate fertility. The natural vegetation of the country has been considerably modified by human occupation. In the South and West central areas there are long tracts of woodland covering about 30% of the country, while on the uplands there are smaller but important areas of tropical rain forests (0.5% of the country). Clearly marked attitudinal variations in vegetation occur around the upland areas and some distinctive mountain flora is found. 1.4 Policy and Legal Framework Tanzania has an open market economy. However, the Government role remains to formulate conducive policies and enabling legal frameworks which pave way for private sector growth and development. In the process of implementing these policies, among other things, Tanzania has launched KILIMO KWANZA resolve. This initiative aims at facilitating the involvement of the Private Sector in agricultural activities which includes livestock farming. Thus, KILIMO KWANZA resolve is a government s commitment in promoting investment in the livestock sector. In order to promote private investment in the country, there has been established a Tanzania Investment Centre (TIC). TIC is the focal point for all investors inquiries and facilitation of project start-ups, encourage joint venture investment and dissemination of investment information. It also serves as a one-stop centre for providing information about land acquisition, taxes, exemptions and other investment incentives packages. 1

1.4.1 National Livestock Policy and Legal Framework The National Livestock Policy (2006) aims at stimulating development of livestock industry in order to exploit the available potentials to increase its contribution to the national economy while ensuring environmental conservation. Secondly, it recognizes the importance of the private sector in promoting commercialized livestock industry. In addition, the policy is amongst many of the initiatives that invites and opens wide the door to the private sector investments. Various acts have been enacted for effective policy implementation and regulation of the industry; these include Veterinary Act No. 16 of 2003; Animal Diseases Act No. 17 of 2003; Dairy Industry Act No. 8 of 2004; Meat Industry Act No. 10 of 2006; Hides and Skin Act No. 18 of 2008; Animal Welfare Act No. 19 of 2008; Livestock Identification, Registration and Traceability Act No. 12 of 2010 and Grazing-land and Animal Feed Resources Act No. 13 of 2010. (i) Meat Industry Act No. 10 of 2006 The Act supports Meat industry restructuring through establishment of proper organization and coordination of the meat industry stakeholders for the development of the industry. It also regulates the production of the meat and meat products within the meat value chain to ensure quality and standards of meat and meat products. (ii) Animal Diseases Act No. 17 of 2003 The Act makes provision for the surveillance, control and prevention of animal diseases and assurance of safety and quality of livestock products. It prescribes measures to be undertaken in the event of a disease outbreak, regulation of movement of animals and their products including trade, as well as public health measures to prevent spread of diseases from animals to humans. (iii) Animal Welfare Act Cap 154 (No 19 of 2008) (R.E 2010) Provides for the humane care of animals and incidental matters. (iv) The Livestock Identification Registration and Traceability Act No 12 Provides for the establishment of the national Livestock Identification Registration and Traceability (LIRT) System for the purpose of disease control, market accessibility, theft prevention and food safety. 1.5 Importance of the Livestock Industry Tanzania is endowed with abundant natural resources which include land and a huge livestock resource base. Out of 88.6 million hectares of land; 60 million ha are rangelands with a carrying capacity of up to 20 million Livestock Unit (LU) and providing over 90% of the feed resource for livestock. The livestock resources include 21.3 million cattle, 15.2 million goats, 6.4 million sheep. Other livestock kept include 1.9 million pigs, 35 million traditional chickens and 23 million layers and broilers (2010). Over 70% of livestock in the country is found in the lake, northern and central zones (Figure 1). These animals are kept under four farming systems which are; mixed farming, agro-pastoral, pastoral and commercial. The country ranks third in Africa in terms of cattle numbers after Ethiopia and Sudan. In 2009, the livestock sector contributed 4.0% of the GDP, of which 40% came from beef, 30% dairy and the remaining 30% from other livestock products. 2

Over 98% of cattle are of indigenous breed, mainly Tanzania Shorthorn Zebu (TSZ) that are known for their ability to survive and are productive even under harsh environment with poor feed resources and diseases challenge. Figure 1: Source: MLFD 2011 Investment potentials in the livestock sector exist in the meat, dairy, hides and skins, animal ; and veterinary biological and pharmaceuticals. 2.0 INVESTMENT ENVIRONMENT 2.1 Political Stability and Related Factors Tanzania has enjoyed political stability for about half a century since independence. This is due to the existence of democratic institutions which have contributed effectively towards good governance, human rights observance; rule of law; ethnic and diversity stability. Tanzania is, also, a signatory to various international conventions and protocols which, among others, call for observance of issues on human rights, good governance, gender and environment. 3

2.2 Market Access With the estimated 40 million people, Tanzania offers sufficient market for agricultural products and in particular livestock and livestock products. The national economy has been growing steadily at around 5 6% annually between 2005 2009. In addition, to the domestic market, the East African Community (EAC), comprising Kenya, Uganda, Rwanda, Burundi and Tanzania offers potential market for investors. Beyond the EAC, there are at least three other markets to which investors in Tanzania have access. One is the Southern African Development Community (SADC) with its 215 million consumers; another is the European Union, to which Tanzanian exports have access arrangement under the EU s Everything But Arms (EBA) initiative; and the third is the United States, to which Tanzania has access under the provisions of the African Growth and Opportunity Act (AGOA). Also, Tanzania has seaboard, inland water ports; land and air links which provide it with reliable access to export markets. 3.0 LIVESTOCK INDUSTRY RESOURCES The meat industry is one of the important components in the livestock sector. Average meat production in 2010/2011 was estimated at 503,496 tones. Given the human population of Tanzania, that currently stands at 40 million and taking into consideration that FAO recommends 50 kilograms per capital consumption against the actual consumption of 12 kg therefore, there is sufficient demand for meat in the country. Most of the meat produced comes from indigenous cattle, sheep and goats. In addition, there is also a demand for investment in quality meat production to meet mainly requirements of the growing number of middle-income consumers, tourist hotels, mining centres and supermarkets in the country and for export. Currently, the country is exporting live animals and meat to foreign markets such as The Democratic Republic of Congo (DRC), Comoro and in the Middle East (Kuwait, United Arab Emirates and Oman). For instance, in 2010/2011, a total of 2,970 cattle, 657 goats and 403.3 tones of meat worth Tshs 1.6 were exported. Meat processing is not well developed with relatively few meat processing facilities such as Happy Sausage (Arusha), Health sausage, (Arusha), TanMeat Company (Dar es Salaam), Mkuza (Coast), Interchick (Dar es Salaam), VETA Dodoma (Dodoma), Manyara Ranch (Arusha), etc. Recent initiatives in attracting investment in the meat processing industry have resulted into the establishment of abattoirs in Dodoma (Tanzania Meat Company), Morogoro (Tanzania Pride Meat) and Rukwa (Sumbawanga Agricultural and Animal Feeds Industry). The installed slaughter capacity of these abattoirs ranges from 150 to 200 animals per day. Investment opportunities in the meat industry exist in the following areas; (i) Going into joint venture with National Ranching Company (NARCO) and other privately owned ranches to modernize the existing ranches; (ii) To invest in the establishment of new ranches (cattle, sheep, goats) and farms (poultry and piggery); (iii) Feed-lot/fattening programmes; and (iv) Slaughtering and processing. 4

3.1 NARCO Ranches, Multiplication Units and Other by Products 3.1.1 NARCO Ranches The National Ranching Company (NARCO) owns a total of 519,453 hectares of land. Out of these, NARCO operates a total of 8 ranches located in 7 regions of mainland Tanzania (Figure 2), which together cover an area of 230,384 hectares with carrying capacity of 80,000 to 90,000 cattle. However, the area currently holds a total of 27,619 cattle, 1,665 sheep and 978 goats (MLFD, 2010). The rest of the area, which is 289,069 hectares, has been sub divided into 124 small ranches and subleased to Tanzanian investors. The production coefficients of NARCO ranches are relatively good compared to other commercial ranches in the Tropics. However, the ranches are expected perform to the standard which are Conception rate (85%), Calving rate (80 %), Mortality rate (5 %), Weaning rate (95 %) and off take rate (25%). There is a great potential for joint venture investment in main ranches and with individual operators. Also, investors are invited to participate in the construction and operation of Ruvu abattoir and its processing plant. The installed slaughter capacity of this abattoir is 800 cattle and 400 goats/sheep per day. Figure 2 NARCO RANCHES Source: MLFD (2010) 3.1.2 Multiplication Units There are ample opportunities in investing in livestock multiplication to meet the increasing demand of the improved livestock (Cattle, goats, sheep and pigs,). Currently, production of the improved livestock concentrates on cattle where 10,000 dairy heifers are produced annually from small scale dairy producers and 5

government owned farms. Currently, capacity of livestock multiplication under the government is estimated to 624 heifers annually. The national demand for these dairy heifers is about 50,000. This demand is higher than the supply, a situation which necessitates investment in the production of improved heifers to the tune of 40,000 heifers per year. There is an opportunity to establish privately owned livestock multiplication units in Tabora, Manyara, Tanga, Morogoro, Coast, Lindi, Rukwa na Kigoma where there is an ample land and favourable environment for livestock farming. These multiplication units were established for the purposes of producing quality crossbred livestock for distribution to smallholder farmers and other commercial farms. Steers and bulls from these units are a source of quality animals for fattening. The holding capacity of the five farms under government is about 20,000 heads of cattle (Mabuki - 6,000, Sao Hill -3,000, Nangaramo -4,000, Kitulo -3,500 and Ngerengere -3,500). 3.1.3 The Hides, Skins and Other by Products The Hides, Skins, Leather and other livestock by-products include blood, bones, horns, hooves, hair, wool, glands, intestines, stomachs, feathers and gut contents Industry in Tanzania is one of the important industry in the economy of the country. 4.0 POTENTIAL AREAS OF INVESTMENT The main investment opportunities existing in the livestock industry are in the following areas; Production of various types of livestock including beef and dairy cattle, goats, sheep, pigs in partnership with NARCO ranches and with the already existing Livestock Multiplication Units together with establishment of new farms for the same. Areas of investment include meat and milk processing, value addition in livestock and other livestock products and by products such as hides and skins. Other areas include; construction and operation of new abattoirs and processing plants, establishment of breeder farms for poultry (grand parent stocks), establishment of commercial layers and broiler farms as well as establishment of broiler processing plants. Another very important area is the production of hay, compounded animal and vaccines. 4.1 The National Ranching Company (NARCO) The National Ranching Company (NARCO) owns a total of 519,453 hectares of land. These, NARCO operates a total of 8 ranches located in 7 regions of mainland Tanzania 4.1.1 Kongwa Ranch Location and Size Kongwa Ranch is located 80 km east of Dodoma Municipality along Dar es Salaam- Dodoma Highway. The ranch lies between latitude 600' and 60 6' South and between longitudes 26022' and 36030' East. The ranch has 38,000 hectares. 6

Climate The climatic condition of Kongwa Ranch is typical of Savannah grassland with a unimodal rainfall pattern (November April). It receives 240 600 mm of rainfall per year with temperatures ranging between 27 0 C to 32 0 C during the day and 10 0 C to 18 0 C during the night depending on the season of the year. The dominant soils are sandy, loamy, black cotton and in some areas there are well drained red soils. The dominant grass species include Rhodes grass, panicum, cenchrus and star grass species. Livestock population Currently, the ranch has 8,032 cattle, 118 sheep and 768 goats with capacity to hold 14,000 heads of cattle. However, with optimal management and feedlot conditions the ranch has a capacity to hold up to 100,000 heads of cattle. Infrastructures The ranch is fairly developed with some basic livestock related infrastructure which is vital for livestock production as shown in the Table 1 below: Table 1: Kongwa Ranch infrastructure S.N Infrastructure Quantity S.N Infrastructure Quantity 1. Ground water reservoir 2 9. Roads and fire 20 km with capacity of 1.8 million litres Ground water reservoir with capacity of 1.2 million litres 1 breaks 2. Water reserve tanks 6 10. Office buildings 2 3. Cattle dip 13,000 litres 1 11. Abattoir (Mini) 1 Cattle dip 15,500 litres 1 4. Spray race 2,000 litres 1 12. Dispensary 1 5. Sheep/Goat sheds 2 13. Welfare house 1 6. Boreholes 12 14. School buildings 3 7. Church and Mosque 2 15. Residential 67 houses 8. Fencing 12 km Ranch performance Under Tanzanian conditions the ranch production coefficients shown below are relatively good and comparable to other commercial ranches in the Tropics. Conception rate: 90 % Calving rate: 85% Mortality rate: 1.5% Weaning rate: 75% Off take rate: 25% Existing potentials There is a suitable condition beef production including breeding and fattening of cattle, goats and sheep. These are:- 7

Presence of a nucleus herd of quality Boran cattle comprising 8.063 cattle, Grazing land of 38,000 hectares. Pasture availability throughout the year. The ranch is connected to the National Power Grid. Existing potential for wind and solar power generation; It is located within the livestock catchment area (Mpwapwa, Kongwa, Chamwino, Bahi, Manyoni, Kiteto, Kondoa and Simanjiro Districts) for ease sourcing of immature cattle for fattening; It shares an established Brand name Kongwa Beef with other NARCO ranches. There are skilled employees with a wide practical experience in ranching; It is within the reach of National Livestock Research Institute and Veterinary Investigation Centre; and The ranch has low livestock disease prevalence. 4.1.2 Mzeri Ranch Location and Size Mzeri Ranch is located in Korogwe and Handeni Districts in Tanga Region. The ranch lies between latitude 6 0 30' and 6 0 45' South and between longitudes 38 0 30' and 38 0 45' East. It is 48 km South-west of Korogwe town off Dar es Salaam Moshi Highway. The ranch has an area of 21,236 hectares. The dominant grass types are Panicum Maximum, Hyperenia Spps, Cenchrus spp., calopogonia spp and Sporobolus spp. Climate The ranch is on a ridge that is gently undulating at 1,305 metres above sea level in the humid lowland ecological climatic zone. The land is flat with the Pangani River permanently flowing through. Soils are mostly red and deep stone free ferruginous. The ranch has a bimodal rainfall pattern with long rain season from March to May and the short rains in October and November. Rainfall is approximately 760 mm per annum with temperatures ranging between 18 0 C to 32 0 C depending on the season of the year. 8

Livestock Population Currently, the ranch has 3,400 Cattle, 200 Sheep and 349 Goats. Under improved ranching management system, it has a carrying capacity of 7,080 heads of cattle. However, under feedlot conditions, it can hold up to 60,000 heads of cattle. Infrastructures The ranch is fairly developed with some basic livestock related infrastructures shown in table 2 below which are important for beef production: Table 2: Mzeri Ranch infrastructures No. Infrastructure Quantity No. Infrastructure Quantity 1 Charco/Dams 4 10 Spray race 3,000 3 litre 2 Water troughs 10,000 5 11 Roads and fire 24 km litres breaks 3 Water reserves tanks 10 12 Office building 1 with the total capacity of 950,000 m 3 6 Borehole pumps 8,000 1 13 Mini Butcher 1 to 10,000 per hour 7 Hay sheds 2 14 Garage 1 8 Water pipes 16 km 15 Dispensary 1 9 Welfare house 1 16 Residential houses 20 Ranch Performance The ranch has livestock production coefficients shown below; Conception rate: 80% Calving rate: 70% Mortality rate: 2% Weaning rate: 63% Off take rate: 17% Existing Potentials Mzeri ranch is accessible and close to Tanga City with port facilities for market and transportation; The ranch has 3,400 nucleus herd of quality Boran cattle; The ranch is connected to the National Power Grid; The ranch is within a livestock catchment area (Korogwe, Kilindi, Handeni, Simanjiro, Same, Kiteto) for ease sourcing of immature cattle; Available domestic market (Mining centres, tourist hotels, supermarkets) and export markets (Gulf countries, DRC, Rwanda, Burundi, Comoro and Uganda); Skilled and experienced human resource; It is within the reach of research and diagnostic facilities in Tanga (Tsetse and Trypanosomosis Research Institute and National Livestock Research Centre); and The ranch has low livestock disease prevalence. 9

4.1.3 Ruvu Ranch Location and Size Ruvu Ranch is situated in Coast Region in Bagamoyo District. It lies between latitude 6 0 30' and 6 0 45' South and between longitudes 38 0 30' and 38 0 45' East. Its location is about 70 km North-west of Dar es Salaam city along the Dar es Salaam Morogoro Highway. The ranch has 43,000 hectares. Climate The ranch has a bimodal rainfall with short rains from mid October to December and long rains from February to May. It receives between 800 1,200 mm of rainfall per year with temperatures ranging between 25 0 C and 27 0 C. Soils are mainly black cotton, sandy, sandy clay and loamy. Dominant grass types Sporobolus spp, Eragrotis superba and star grass Livestock Population Currently, the ranch has 3,762 cattle but its carrying capacity is up to 10,238 heads of cattle. However, under feedlot conditions the ranch can stock up to 120,000 heads of cattle. Infrastructures The ranch has fairly developed infrastructures as shown in the table 3 below: Table 3: Ruvu Ranch infrastructures No. Infrastructure Quantity No. Infrastructure Quantity 1 Charcos/Dams with 4 10 Modern Butcher 1 the total storage capacity of 3,000,000 litres 2 Water troughs 3 11 Mini Abattoir 1 3 Water pipes 6 km 12 Dispensary 1 6 Spray race 2 13 Welfare house 1 7 Cattle dip 1 14 Primary School 1 8 Roads and fire breaks 20 km 15 Residential 25 houses 9 Office building 1 16 Ranch Performance The ranch production coefficients are relatively good and comparable to commercial ranches in the Tropics. Conception rate: 80% Calving rate: 70% Mortality rate: 2% Weaning rate: 75% Off take rate: 17% Existing Potentials Conditions suitable for breeding and fattening of cattle, goats and sheep; 10

It is accessible and close to Dar es Salaam City with airport and harbor facilities for market and transportation; The ranch is connected to the National Power Grid; Easily accessible along Dar es Salaam Morogoro Highway and central railway line; It is within a livestock catchment area (Bagamoyo, Morogoro, Handeni, Korogwe) for ease sourcing of immature cattle; Available domestic market (mining centres, tourist hotels, supermarkets) including the metropolitan Dar es Salaam and export markets (Gulf states, DRC, Rwanda, Burundi, Comoro and Uganda); There is ongoing construction of an export quality abattoir and a meat processing plant; Skilled and experienced human resource; It is within the reach of zoosanitary and diagnostic facilities in Dar es Salaam City and Kibaha Town (Central Veterinary Laboratory and Kwala Zoosanitary Facility respectively); and The Ranch has low livestock disease prevalence. 4.1.4 Mkata Ranch Location and Size Mkata Ranch is located 58 km from Morogoro Town off Morogoro-Iringa Highway. The ranch lies between latitude 10 0 14' and 10 0 19' South and between longitudes 38 0 53' and 38 0 58' East. It has 19,446 hectares with holding capacity of 7,000 heads of cattle. However, under feedlotting the ranch can hold up to 35,000 heads of cattle. Climate Mkata Ranch lies in the humid lowland ecological climatic zone at an elevation ranging from 400 460 meters above sea level. It lies within the area commonly known as Mkata Plain with Mkata River running across the ranch from North-east to South-west. It receives an average rainfall of about 731.4mm which is bimodal in pattern distributed between March May (long rains) and from October to December (short rains). The land is dominated by black cotton and red laterite soils. The natural vegetation is mainly of woodland and wooded grassland. The latter comprises Themeda, Hyperrhenia, cenchrus, sporobolus and brachiaria spp. and Cymbopogon species. Woodland includes Acacia and Combretum species. 11

Livestock Population Currently, the ranch has no livestock but its carrying capacity is up to 7,000 heads of cattle. However, under feedlot conditions the ranch can stock up to 35,000 heads of cattle. Infrastructures The ranch has fairly developed infrastructures as shown in the table 4 below: Table 4: Mkata Ranch infrastructures No. Infrastructure Quantity No. Infrastructure Quantity 1 Charco/Dams 5 10 Workshop 1 2 Water troughs 6 11 Roads and fire breaks 100 km 3 Borehole 1 12 Office building 2 6 Water tank 1 13 Hostel 1 7 Spray race 3 14 Primary School 1 8 Water pipes 3.0 km 15 Health centre 1 9 Fence 50 acres 16 Residential houses 30 Ranch Performance Production coefficients are as listed below: Conception rate: 80% Calving rate: 71% Mortality rate: 2 % Weaning rate: 65% Off take rate: 14% Existing Potentials Proximity to Tanzania Pride Meat Abattoir in Mvomero District, Morogoro Region; Conditions suitable for breeding and fattening of cattle, goats and sheep; A nucleus herd of quality Boran cattle - 2,329 cattle; Available grazing land - 19,446 Ha; The ranch is connected to the National Power Grid; Lies along Dar es Salaam Iringa Highway and central railway line; Is within a livestock catchment area (Kilosa, Mvomero, Morogoro Rural, Kongwa, Bagamoyo and Kiteto) for ease sourcing of immature cattle; Available domestic market (tourist hotels, power stations, Mtibwa and Kilombero Sugar Factories, Higher Learning Institutions, supermarkets) including Morogoro and the metropolitan Dar es Salaam and export markets (Gulf states, DRC, Rwanda, Burundi, Comoro and Uganda); It is within the reach of research and diagnostic facilities at Sokoine University of Agriculture in Morogoro; Access to sugar factories by-products for feedlotting; and The Ranch has low livestock disease prevalence. 4.1.5 Kikulula Ranching Complex Location and Size 12

Kikulula Ranching Complex is a consolidated business unit comprising three ranches (Kagoma, Kikulula and Mabale) as well as a Farmers Training Centre with a capacity of training an average of 60 livestock farmers annually. The ranch is located 80 km from Bukoba Town along Bukoba-Karagwe Road. It lies between latitude 2 0 42 and 2 0 46 South and longitude 31 0 17 and 31 0 22 East. It has an area of 42,083 hectares. Climate The ranch receives an average annual rainfall of about 800mm 1,000mm with bimodal pattern between October January (short rains) and March May (long rains). Temperatures range from 15 0 C to 28 0 C. The soil ranges from reddish brown sandy to loamy of moderate fertility. The natural vegetation is mainly of Savannah type with a variety of grass such as Themeda triandra, Cenchurs ciliaris; Panicum, Brachiaria, and Setaria species. Livestock Population The ranch has 8,730 heads of cattle but its carrying capacity is up to 21,030 heads of cattle. However, under feedlotting, the ranch can hold up to 150,000 heads of cattle. In addition, the ranch produces 319 dairy heifers annually. Infrastructures The ranch has fairly developed infrastructures as shown table 5 below: Table 5: Kikulula Ranch infrastructures No. Infrastructure Quantity No. Infrastructure Quantity 1 Charco/Dams 11 10 Workshop 1 2 Water troughs 3 11 Roads and fire breaks 300 km 3 Water tank 9 12 Office building 1 6 Spray race 1 13 Welfare house 1 7 Fence 13 km 14 Residential houses 27 8 Water pipes 15 Hostel 1 9 Cattle dip 3 16 Ranch Performance The ranch production coefficients are as shown below: Calving rate: 51% Mortality rate: 2% Weaning rate: 75% Off take rate: 28% Existing Potentials Suitable weather conditions for breeding and fattening of cattle, goats and sheep; It is within the reach of the abattoir which is under plan; A nucleus herd of quality Boran cattle; Available grazing land of good quality pasture; The ranch is connected to a reliable power supply; The ranch is within a livestock catchment area (Karagwe, Ngara, Missenyi, Muleba, Bukoba Rural, Biharamulo, Geita, Kasulu and Chato Districts) and 13

neighbouring countries (Uganda, Burundi, and Rwanda) for ease sourcing of immature cattle; Available domestic markets in Mwanza, Kagera and Shinyanga regions (mining centres, tourist hotels, Kagera Sugar Factory and supermarkets) and export markets proximity to neighbouring Uganda, Rwanda, Burundi, Democratic Republic of Congo; Skilled and experienced human resources; It is within the reach of research and diagnostic facilities at Mabuki (Misungwi District) and Veterinary Investigation Centre (VIC) in Mwanza City; Access to Kagera Sugar Factory by-products for feedlotting; and The Ranch has low livestock disease prevalence. 4.1.6 Missenyi Ranch Location and Size Missenyi Ranch is located 95 km west of Bukoba Town at the border with Uganda. It lies between latitude 2 0 42 and 2 0 46 South and longitude 31 0 17 and 31 0 22 East. On the south it is adjacent to both Kagera Sugar Factory and Kagera River. The ranch has an area of 23,998 hectares. Climate The ranch has brownish, sandy and loamy soils supporting good quality grazing pastures. The dominant vegetation is savanna type with scattered bushes and trees to the southern part along the Kagera River. Major grass species include Cenchrius ciliaris, Themeda triandra; Seteria and Brachiaria species. Rainfall is bio-modal with on set in September to January and March to May. It ranges between 600mm 900mm per annum with temperature ranging between 14 C to 25 C. Livestock Population The ranch has 7,309 heads of cattle but its carrying capacity is up to 9,599. However, under feedlotting, the ranch can hold up to 68, 466 heads of cattle. Infrastructures Missenyi ranch is fairly developed with some basic livestock and social infrastructures which are important for beef production and recreational services. The ranch has total of 15km internal roads, two concrete water tanks, cattle handling facilities which include one plunge dip, spray race, water troughs and six dams (Table 6). Table 6: Missenyi Ranch infrastructures No. Infrastructure Quantity No. Infrastructure Quantity 1 Charco/Dams 6 8 Office building 1 2 Water troughs 1 9 Welfare house 1 3 Water tank 2 10 Residential houses 6 Spray race 2,200 litres 1 11 Hostel 1 7 Roads and fire breaks 15 km 12 Cattle dip 17,000 litres 1 Ranch Performance 14

The ranch production coefficients are relatively good as shown below: Conception rate: 80% Calving rate: 80% Weaning rate: 70% Mortality rate 2% Off take rate: 29% Existing Potentials The ranch is served by Kagera River which can be used for watering livestock and pasture development as well as for domestic use; Suitable weather conditions for breeding and fattening of cattle, goats and sheep; Proximity to the proposed Kyaka abattoir approximately 25Km from the ranch; A nucleus herd of quality Boran cattle; Available grazing land of good quality pasture; The ranch is connected to a reliable power supply; The ranch is within a livestock catchment area (Karagwe, Ngara, Missenyi, Muleba, Bukoba Rural, Biharamulo, Geita, Kasulu and Chato Districts) and neighbouring countries (Uganda, Burundi, and Rwanda) for ease sourcing of immature cattle; Available domestic markets in Mwanza, Kagera and Shinyanga regions (mining centres, tourist hotels, Kagera Sugar Factory and supermarkets) and export markets proximity to neighbouring Uganda, Rwanda, Burundi, Democratic Republic of Congo; It is within the reach of research and diagnostic facilities at Mabuki (Misungwi District) and Veterinary Investigation Centre (VIC) in Mwanza City; Skilled and experienced human resource; Access to Kagera Sugar Factory by-products for feedlotting; and The Ranch has low livestock disease prevalence. 4.1.7 West Kilimanjaro Location and Size West Kilimanjaro Ranch is located within an important wild life corridor linking Kilimanjaro National Park and Momela Game Sanctuary at a vicinity of Mount Kilimanjaro and Mount Meru. The ranch is located 70 kilometers North-west of Moshi Municipality off Moshi-Arusha Road. It lies between latitude 2 0 53 and 3 0 7 South and longitude 36 0 45 and 36 0 58 East and covers an area of 19,910 ha. 15

Climate West Kilimanjaro Ranch is located in a dry and cold climate zone. The annual rainfall is 303 mm. The dry seasons extends for about six months from May to October. Despite of relative low annual average rainfall, the ranch lies within a comparatively productive area. This is due to the underlying fertility of the volcanic soils implied by the prevalence of grasses from the Cynodon genus. Livestock Population Currently, the ranch has 967 cattle and 772 Sheep, with capacity to hold 8,000 heads of cattle. However, with optimal management and feedlot conditions the ranch has a capacity to hold up to 60,000 heads of cattle. Infrastructures The ranch is fairly developed with some basic livestock related infrastructures which are important for meat production and social amenities as indicated in table 7 below: Table 7: West Kilimanjaro Ranch Infrastructures No. Infrastructure Quantity No. Infrastructure Quantity 1 Roads and fire breaks 5 Borehole 1 2 Water troughs 2 6 Office building 1 3 Water reservoir 20,000 litres 1 7 Workshop 15 4 Dip Tanks operating one with 18,000 and 15,000 litres. The non operational 15,000 litres 3 Residential houses Ranch Performance The ranch production coefficients are relatively good and comparable to commercial ranches in the Tropics as shown below: Conception rate: 80 % Calving rate 90% Weaning rate 75% Mortality rate 2% Off take rate 22% Existing Potentials Climatic and weather conditions are suitable for beef and mutton production; The ranch is served by Ngarenanyuki River which flows permanently across the ranch from north to south that can be used for watering and pasture development. The ranch is within the tsetse free zone with low livestock diseases prevalence, thus it can easily be turned into a disease free compartment; The ranch is within proximity to Kilimanjaro International Airport and is close to the Arusha Meat Company as well as Arusha City and Moshi Municipality; The ranch is within a livestock catchment area (Monduli, Longido, Hai and Simanjiro Districts) whereby immature cattle can easily be sourced for fattening; Skilled and experienced human resource. 16

4.1.8 Kalambo Ranch Location and Size Kalambo Ranch is in Rukwa Region, located 45km South-west of Sumbawanga Municipality, close to the southern tip of Lake Tanganyika and the border with Zambia. It lies between latitude 29 0 56 and 30 0 8 South and longitude 6 0 0 and 6 0 9 and covering an area of 23,588 ha. Climate The ranch has flat grassland with pockets of undulating surfaces characterized by hills and escarpments to the far western side. There are some localized swamps in the western and south western sides. Soils are mainly sand loamy with some black cotton and clay soils to the east especially around the swamp. The dominant grass species include Themeda triandra, Exotheca aristida, Digitaria spp, Sporoborus spp with some Erogrotus spp. The ranch has one long rain season from November to May and dry season from June to October. Annual rainfall varies from 800mm to 1300mm depending largely on elevation and temperatures ranges from 20 C to 26 C. Livestock population Currently, the ranch has 1,733 Cattle, 25 Sheep, 35 Goat, and 8 Horses. It has a carrying capacity of 8,730 heads of cattle. However, under optimal management and feedlot conditions, it can hold up to 80,000 heads of cattle. Infrastructures Kalambo Ranch is fairly developed with some basic livestock infrastructures which are important for meat production and social amenities as indicated in table 8 below: Table 8: Kalambo Ranch infrastructures N0. Infrastructure Quantity No. Infrastructure Quantity 1 Charco/Dam with the capacity 1 5 Primary school 1 of 200,000 liters 2 Water troughs 12,000 litres 3 6 Pipe work 5 km 3 Water tank 1 7 Roads and fire breaks 4 Cattle Dip 17,000 litres 2 8 Dispensary 1 5 Residential houses 9 Ranch Performance The ranch production coefficients are relatively good and comparable to commercial ranches in the Tropics as shown below: Conception rate: 65% Calving rate: 80% Weaning rate: 76% Mortality rate: 2% Off take rate: 38 % Existing Potentials Climatic and weather conditions are suitable for beef production; 17

The ranch is served with numerous permanent water springs and rivers which provide water throughout the year for cattle, watering and pasture development; Market for livestock is readily available as the ranch is within proximity to Sumbawanga Agricultural and Animal Feeds Industry (SAAFI) with a modern abattoir; Available domestic markets in Mbeya, Rukwa and Katavi regions (mining centres, tourist hotels, cement and beer factories, supermarkets) and export markets proximity to neighboring Zambia, Malawi and Democratic Republic of Congo; Tanzania Zambia Railway line and the Mbalizi International Airport which is under construction in Mbeya Region providing gateway to other markets; Kalambo ranch is within a livestock catchment area (Sumbawanga, Nkasi, Chunya, Mpanda and Mbozi Districts) where immature cattle can easily be sourced for fattening; and Skilled and experienced human resource. Proposed Investment Requirements All ranches in the country are operating below their respective carrying capacities. Therefore, investment plans aim at increasing livestock population in each of the ranches in order to attain their maximum carrying capacities. This would entail purchase of quality breeder animals, purchase of immature animals for feedlotting, infrastructure development, pasture and water facility improvement. 4.1.9 Privately Owned Ranches Out of 219,930 ha of NARCO ranches, 134 satellite ranches of 2000-4000 ha each have been demarcated and privatized (Table 9). Only 35 of the satellite ranches with a stocking of 48,301 head of cattle and 7,182 head of goats and sheep are operational while 99 have not been developed so far. When fully developed and utilized, the combined capacity of NARCO and the satellite ranches is 183,700 cattle. Table 9: Privatization of Ranches under NARCO No Name of Ranch Total Area (Ha) Area in Ha under Main Ranches Satellite Ranches No. of Satellite Ranches Livestock under NARCO, Sept. 2010 Number of livestock under Satellite Ranches Cattle Goats/ Sheep 1 Mkata 62,530 19,446 43,084 11 0 3,210 873 2 Usangu 43,727 0 43,727 16 0 2,206 677 3 West 30,364 19,910 10,354 10 209 0 0 Kilimanjaro 4 Uvinza 56,175 0 56,175 21 0 13,702 0 5 Mzeri 41,246 21,236 20,010 9 3,054 3,304 3,411 6 Kalambo 64,650 23,588 41,062 13 1,442 6,220 593 7 Misenyi 60,851 23,998 36,853 21 5,475 2,678 253 8 Kitengule 41,700 0 41,700 9 0 4,877 322 9 Kikulula 76,940 30,752 46,188 22 6,068 12,104 1,053 Complex* 10 Kongwa 38,000 38,000 0 0 8,032 0 0 11 Ruvu 43,000 43,000 0 0 3,340 0 0 18

12 Dakawa 49,981 0 49,981 2 0 Total 609,164 219,930 389,134 134 27,619 48,301 7,182 *Kikulula complex includ Kikulula, Mabale and Kagoma ranches Source: MLFD 4.2 Other Animal Production Resources Sheep and Goats Sheep and goats farming is one of the activities being done by livestock farmers in the rural areas of Tanzania. It is estimated that the country has 13.7 million goats and 3.6 million sheep (2009/2010) and about 30% of rural households in Tanzania are engaged in sheep and goats keeping. These animals adapt well in nearly all agro-ecological zones in the country and are raised mainly under traditional production system whit a limited number under commercial farming system. Sheep and goats available are mainly of indigenous types and are kept for meat production. Sheep types include, Red Maasai, Sukuma (East African Black Head), Pare and Gogo (Tanzania Long Tail) while Goats types include Maasai, Gogo, Newala, Ujiji and Sukuma. These types of sheep and goats are well adapted to the environment and perform well when raised under commercial system where management is good mainly in terms of feed, shelter, water and disease control. Sheep for wool production exist in some parts of the country mainly in the Southern Highlands (Iringa and Mbeya Regions) and West Kilimanjaro. They are in small numbers which were introduced into the country during the colonial period. The demand for sheep and goats has been increasing over years for the domestic and export markets. It is estimated that between 2006 and 2008 about 11,880 sheep and goats have been exported. Currently the demand for sheep and goats meat for export is over 16 tons per week. However, about six tons are exported due to unavailability of quality sheep and goat. The areas for investment in sheep and goats include: Partnership with National Ranching Company in the production of goats, sheep; Establishment of large scale sheep and goats farm for meat production; Establishment of Dairy Goats Multiplication Unit; and Contract farming between export agents and goat and sheep farmers. Pig Production More than 90% of the 1.9 million pigs in Tanzania are kept by small-scale farmers mostly in Southern and Northern Highlands under traditional production system. In addition, pork demand is increasing in urban and peri-urban areas due to the increasing customer s preference for its delicacy. However, the current production does not suffice the increasing demand for the domestic and export markets. Therefore, pigs production can be improved through proper husbandry practices, adequate support services, diseases control and appropriate slaughter and marketing infrastructure. Intensive pig production for commercial purposes is limited 19

to very few farmers with a regular income, mainly to meet the high cost of concentrate among other requirements. The breeds of pigs found in the country are crosses of large white, landrace, saddleback and Hampshire; while pure breeds are very few. These stocks have been circulating within the different farms in the country. The areas for investment in pig industry include: Establishment of breeder s farms Establishment of commercial farms Establishment of slaughter and processing plants. Poultry production The poultry production system in Tanzania is of two type s i.e. traditional and commercial production. The current production is estimated at 58.0 million chickens (indigenous 23.0 and commercial 35.0) and 1.2 million ducks. Poultry production has a lot of opportunities for the private sector investment. The Small and Medium Enterprises have managed to increase numbers of local chicken from 27 million in 2001 to 30 million in 2006 while the commercial stock increased from 20 million to 25 million. On average 5.5 million hatching eggs and 1 million Day old parent chicks are imported annually to produce a total of 25 million Day Old Chicks for commercial purposes. This figure is low compared to the current requirement of 60 million Day old chicks per year. Egg production has increased from 2.4 million in 2007/2008 to 2.9 billion in 2009/2010. The observed increase is due to sensitization on good poultry husbandry practices and use of thermo stable New Castle Disease vaccine. The per capita consumption of eggs has increased from 50 eggs to 75 eggs per person per year. The rising demand for day old chicks, meat and eggs calls for more investments. The hatcheries and their capacities are as indicated in table 10 below: Table 10: Hatcheries and Their Production Capacities in Selected Regions No. Region Hatchery Capacity (No. of chicks for 3 Weeks) 1 Arusha Tanzania Poultry Farms 180,000 2. Dar Es Salaam Euro poultry 160,000 Interchick 260,000 Twiga hatcheries 120,000 Ideal Chiks 120,000 3 Coast Kibaha E.C 120,000 Ruvu KJT 30,000 Kiluvya Poultry Products 30,000 Mkuza Chicks 360,000 4. Kilimanjaro Kilacha 30,000 Kibo Hatcheries 60,000 5. Mbeya Songwe Hatcheries 20

The areas for investment in poultry industry include: Establishment of breeders farms for grand and parent stock Establishment of commercial layers and broiler farms Establishment of broiler processing plants 4.3 Livestock Multiplication Units (LMUs) The profile for each LMU is as follows:- 4.3.1 Mabuki LMU The farm is located in Misungwi District along the Shinyanga Mwanza Highway, about 62 km from Mwanza city. It can be accessed by road (900 km) from Dar es Salaam or by air via Mwanza. The farm lies between latitude 2 0 59 S and longitude 33 0 11 E and has a land area of 9,793 hectares capable of supporting about 6,000 Livestock Units. Currently, the farm has 2,684 cattle (mainly of Friesian, Boran and Tanzania Shorthorn Zebu crosses), 79 buffaloes and 70 goats. The farm is within sub-humid to semi arid agro-climatic zone and has a bimodal pattern of rainfall. The short rains (October December) and long rains (February May). The rainfall ranges between 700 mm 800 mm, with a dry spell in January. 4.3.2 Sao Hill LMU The farm is located in Iringa Region about 572 km from Dar es Salaam and it 13 km off Dar es Salaam Mbeya Highway. The farm lies between longitude 35 0 20 East and Latitude 80 0 20 South at an altitude of 1,800 meters above sea level. It receives an average rainfall ranging from 800-1200 mm. The farm covers an area of 6,500 ha with a holding capacity of about 3,000 cattle. Currently, the farm has 1,759 cattle of Boran and Ayrshire breeds and their crosses. 4.3.3 Nangaramo LMU The farm is located in Masasi District, Mtwara region about 630 km from Dar es Salaam and has land area of 6,175 ha capable of supporting 4,000 Livestock Units. The farm lies between latitude 11 S and longitude 38 E. The area is under coastal zone of humid to sub-humid climate, temperature ranging from 25 C -35 C. The area receives rainfall ranging from 350-1000mm per annum. Currently, the farm has 441 cattle of Boran, Ayrshire and their crosses. 4.3.4 Kitulo Dairy Farm The farm is located in Makete District, Iringa Region 980 km from Dar es Salaam and 70 km from Mbeya City. The farm is at an altitude of 2,900 meters above sea level and receives an average rainfall of 1300 mm annually. Temperatures range from 5 0 C to 17 0 C. It has an area of 5,000 ha with a capacity of supporting 3,500 Livestock Units. Currently, the farm has 970 Friesian dairy cows. 4.3.5 Ngerengere LMU The farm is located in Morogoro Region, 150 km from Dar es Salaam off Dar es Salaam-Morogoro Highway. The farm lies between longitude 920-930 South and Latitude 360-380 East and receives an average rainfall of 1200 mm annually. Temperatures range from 28 0 C to 30 0 C. It has an area of 4,562 ha with a holding 21