Improving Productivity and Structured Markets along the entire rice value chain In Momba Districts, Tanzania
Majinjah Logistic Company in their rice business and ADP-Mbozi in the facilitating the social-economic empowerment especially to the smallholder farmers the need of proposing the project named Productivity and Structured Market along the entire rice value chain in Momba District (PSM-Momba Consortium) is developed. This project is proposed to be implemented in six wards of Momba district council in Songwe region in the southern highland zone of Tanzania. These wards include Chitete, Chilulumo, Mkulwe, Kamsamba, Ivuna, and Msangano. The partners are motivated to undertake the interventions in the areas to respond on the alarm of poor rice farming practices that contribute significantly to inadequate supply of raw material for our milling machines (paddy) and directly endanger income and food security of the smallholder farmers in Momba district. The proposed project was implemented by the consortium which will involve about four partners namely the paddy offtaker Majinjah Logistics Limited, extension service provider ADP-Mbozi, Agricultural input supplier Obo Investment Company Limited and Farmers FBOs in which 53 FBOs are already identified and others was formulated during the project implementation period to meet the number of targeted farmers. Moreover, the project seeks to intervene in the area and contribute to increased yields and business relations among value chain actors along the rice value chain in Momba district. The project will collaborate with local government authorities and other stakeholders such as financial institutions and others who are crucial for success of the project
Goal and Objectives
The goal of the proposed project is to increase the competitiveness of the Momba rice through enhancement of productivity and quality rice produced by more than 5,000 rice farmers to enhance sustainable incomes and food security though adoption of environment friendly production practices by rice farming households.
Objective1: Increased paddy productivity of 5000 SHFs from 2 MT/ha to 4MT/ha through adoption of improved practices by March 2021.
Objective 2: Improved structured market linkages between the rice value chain actors and strengthen the regional market by March 2021.
Objective 3: Increased access to finance for SHFs and Pre-financed inputs for 1,500 SHFs by March 2021.
To attain these objectives, the project will address identified constraints by developing strong interventions that will increase competitiveness of rice as shown in the table.
Objective 1. Increased paddy productivity of 5,000 SHFs from 2 MT/ha to 4 MT/ha through adoption of improved practices by March 2021 | ||
Main Problem | Challenge(s) | Proposed Interventions/Activities |
Low paddy productivity and poor-quality paddy
| Ø Poor knowledge on sustainable paddy production Ø Limited access to improved farm inputs Ø Very little utilization of labor serving technologies that result to high production costs Ø Limited access to financial services for input pre -financing and production loan Ø Erratic weather condition Ø Unreliable paddy market Ø Use of unstandardized paddy measurements. Ø Inadequate business and entrepreneurship skills | Ø Capacitating the already existing farmers groups Ø Mobilizing individual rice SHFs to work in groups and support them to formulate groups Ø Establishment and working with 12 demonstration plots Ø Building capacity of 5000 SHFs in SRP practices Ø Conduct monitoring and evaluation programs to ensure farmers adhere to trained practices Ø Link 5000 SHFs with reliable input supplier Ø Support 1500 SHFs to access pre-financed inputs and production loan
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Objective 2: Improve structured market linkages between the rice value chain actors and strengthen the regional market by March 2021 | ||
Ø Underutilized the milling capacity of the machine by the Miller Ø Low price or margins by the miller and 5000 SHFs
| Ø Low supply of paddy from smallholder farmers Ø Poor quality of paddy supplied by SHFs Ø Unreliable paddy market for SHFs Ø Shortage of aggregations centres | Ø Promote contract farming or contractual business relationship between offtaker and SHFs and processor and rice customers Ø Sign 110 supply contract between offtaker and farmers’ FBOs Ø Identifying additional paddy aggregation centre in the project area Ø Sign at least 10 supply contracts between Processor and rice customers
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Objective 3: Increased access to finance for SHFs and Pre-financed inputs for 1,500 SHFs by March 2021. | ||
Ø Inadequate access to low cost credit, innovative financial and insurance products and services by rice smallholder farmers
| Ø Limited knowledge & skills on finance literacy Ø Poor linkage/ business relationship between rice farmers and input suppliers/financial institutions | Ø Train 5000 farmers on FBS and financial literacy skills Ø Support 55 farmer groups (FBOs) to register their groups with recognised registration board Ø Link 1500 farmers with the Inputs supplier and financial institutions to access pre-financed inputs and production loan Ø Conduct monitoring and evaluation programs to ensure farmers adhere to FBS and financial literacy skills |