TANZANIA HONEY SECTOR SYNTHESIS REPORT & DEVELOPMENT ROAD MAP DECEMBER 2014
TRADE IMPACT FOR GOOD
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This document has not formally been edited by the International Trade Centre.
TANZANIA HONEY SECTOR SYNTHESIS REPORT & DEVELOPMENT ROAD MAP
Geneva, december 2015
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This value chain roadmap was developed on the basis of technical assistance of the International Trade Centre ( ITC ). Views expressed herein are those of consultants and do not necessarily coincide with those of ITC, UN or WTO. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited my ITC. The International Trade Centre ( ITC ) is the joint agency of the World Trade Organisation and the United Nations.
2 3 Digital images on cover (CC BY-SA 2.0) : 1-Don Hankins 2-Bob Peterson; 3-Vicky Brock 1
Street address : ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland Postal address : ITC Palais des Nations 1211 Geneva, Switzerland Telephone : + 41- 22 730 0111 Postal address : ITC, Palais des Nations, 1211 Geneva, Switzerland Email :
[email protected] Internet : http :// w ww.intracen.org
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CONTENTS Abbreviationsv INTRODUCTIONvi 1.
GLOBAL DEMAND
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2.
REGIONAL DEMAND
4
3.
NATIONAL DEMAND
4
4. GLOBAL
5
5. REGIONAL
5
6. NATIONAL
6
7. PRODUCTION
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8.
PROCESSING AND QUALITY
8
9.
TRADING ( TERMS AND CONDITIONS )
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10.
PRIVATE SECTOR ( INDIVIDUALS )
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11. BEEKEEPING GROUPS
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12. BEEKEEPERS COOPERATIVES
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13. BEEKEEPERS AND TRADERS / PROCESSORS AGREEMENTS
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14. TANZANIA HONEY COUNCIL
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15. OBJECTIVES OF THE HONEY TRADE DEVELOPMENT ROAD MAP
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16. LIST OF SUPPORT DOCUMENTS FOR THE WORKSHOP
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TABLES Table 1 : World Imports of Natural Honey ( All Types in Metric Tons )
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Table 2: Honey sub-sector, Tanzania, October 2014
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Strategic objective number 1 : Increase quantity and quality of bee products complying with international standards
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Strategic objective number 2 : Create access to relevant markets, disseminate market information and make the Tanzania honey visible at international markets
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Strategic objective number 3 : Improve and strengthen honey sector organization and inter-professional communication
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Strategic objective Number 4 : Provide adapted financial services to support producers and exporters capacities
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FIGURES Figure 1 : Secondary stakeholders in honey sector
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ABBREVIATIONS The following abbreviations are used: AMAGRO
Association of Mango Growers
BEET
Beekeepers for Economic Empowerment for Tanzania
CIF
Cost Insurance and Freight
EU
European Union
GS1
Global Standard 1
HACCP
Hazard Analysis & Critical Control Points
ICBT
Informal Cross Border Trade
ITC
International Trade Centre
LGA
Local Government Authority
MMA
Match Maker Associates
MIT
Ministry of Industries and Trade
SIDO
Small Industries Development Organisation
SMEs
Small and Medium Enterprises
SUA
Sokoine University of Agriculture
TANEXA
Tanzania Exporters Association
TCCIA
Tanzania Chamber of Commerce Industry and Agriculture
TIC
Tanzania Investment Centre
TFDA
Tanzania Food and Drugs Authority
TFS
Tanzania Forest Services
THC
Tanzania Honey Council
TRA
Tanzania Revenue Authority
TSI
Trade Support Institution
VETA
Vocational Education and Training Authority
UN
United Nations
UNDP
United Nations Development Programme
ZSTC
Zanzibar State Trading Company
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INTRODUCTION This road map is produced as a part of Promoting Intraregional Trade in Eastern Africa project funded by the Government of Finland. The project focuses on increasing exports from Kenya, the United Republic of Tanzania and Zambia. The three-year project launched in December 2013 is implemented by the International Trade Centre together with lead organizations in each country : the Export Promotion Council in Kenya, Small Industries Development Organization ( SIDO ) in the United Republic of Tanzania and Zambia Development Agency in Zambia. Enterprises working in the honey, mango and spice sectors are set to expand and become more competitive through this project. The objectives of the project are to increase the export competitiveness of small and medium-sized enterprises ( SMEs ) in selected agri-food value chains and to enhance the services delivered to SMEs by trade support institutions. In Tanzania ITC is working with local partners who include SIDO, Association of Mango Growers ( AMAGRO ), Tanzania Honey Council ( THC ) Ministry of Natural Resources and Tourism ( Forestry & Beekeeping Department ), Tanzania Forest Services and Zanzibar State Trading Corporation ( ZSTC ) to address values chain gaps in the honey, mango and spices sectors. This roadmap is produced to serve as a as guide for long-term sector development efforts of the honey sector in the United Republic of Tanzania. It addresses specific gaps identified to affect the development of the sector :
Low productivity in beekeeping practices Low or lack of business mind-set among the beekeepers Lack of differentiated products Inconsistencies in quality of processing and packaging Varied quality of packaging materials Lack of innovation Testing and certification regimes not harmonized and time consuming Private standards in the importing countries Poor trade facilitation Training on Entrepreneurship Uncoordinated training packages and delivery to beekeepers / processors Poor information provision and market linkages
The data used in this document has been confirmed by heads of the selected Trade Services Institutions ( TSIs ) shows that despite huge export market in the region and in the world, Tanzania has not been able to benefit from that opportunity by selling high volumes of honey and spices. Indeed, the exports of honey have been on decline in the past four years. Data availability on the national production of honey is limited. The data estimated that the potential of production of honey based on forestry area was 138,000 Metric tons of honey and 9,200 tons of beeswax per year. Forestry area has reduced over the years and hence capacity of production must have also reduced. Likewise the data for actual production of honey and beeswax is also not properly kept. The Ministry of Natural Resources & Tourism estimated that in 2011 annual production was 9,380 MT of honey worth the value of USD 17.1 million, ( T ZS 27 bill ) and average of 625.3 MT of beeswax worth USD 1,875,900 ( T ZS 2,813 bill ) was produced, which is 7 % of the national potential. What is clear is that the national potential for production of honey and beeswax is huge and production is way below the potential ( MMA, 2013 ). This work is based on previous work done in the United Republic of Tanzania in honey sector in recent years.
Photo: (CC BY-SA 2.0) toholio, Capped and uncapped honey.jpg
Following reports have served as background material in the development of this roadmap : i. Business Care Services Limited, ( 2006 ), Sector profiling report ii. Match Maker Associates Limited, ( 2007 ), Honey and beeswax value chain analysis iii. Valery Ng’atigwa, ( 2007 ), Assessment of traceability and quality discrepancies in the honey and beeswax supply chain in Tanzania iv. MNRT & TBS, ( 2014 ), Position paper v. Peter Widmer, ( 2010 ), The Competitive Position of Tanzania’s honey industry vis-à-vis other producing nations vi. Match Makers Associates Limited, ( 2013 ), BTC Kigoma Value Chain Report, vii. Josefynne Miingi-Kaiza and Vianey Rweyendela, ( 2 013 ), Baseline Report for Beekeepers for Economic Empowerment Tanzania Project ( BEET ) implemented by Traidcraft viii. Arbogast G. Mbeiyererwa, ( 2014 ), Honey value chain mapping in Njombe and Siha districts ix. S. Wren et al, ( 2014 ), Report on the global trade in bee-products, buyers and the distribution channels for selected products, including value chain activities in the selected products for Tanzania
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DEMAND AND MARKET FOR TANZANIAN HONEY
DEMAND AND MARKET FOR TANZANIAN HONEY 1. GLOBAL DEMAND The global demand for honey and beeswax and other products has been increasing over the past 10 years. The report titled “Honey : A Global Strategic Business Report” by Global Industry Analysts, Inc., proposes that the global market for honey is projected to exceed 1.9 million tons by the year 2015. This is primarily driven by increasing awareness levels and health consciousness among the consumers, leading to increasing demand for healthy and natural food products. The increasing trend of organic and healthy spreads is expected to continue giving rise to new variants and flavors in the global honey market. Increasing preference among consumers for honey-based products, is leading to a boost in the variety and assortment of honey based food products, baby products, yogurts and drinks. Moreover, honey contains antioxidants, minerals, vitamins and proteins, making itself an appealing ingredient as compared to artificial sweeteners. The major consumers and importers are the industrialized countries, led by Germany, Japan, USA and UK ( fao.org, 2014 ). The increased consumption over the last few years can be attributed to the general increase in living standards, and a higher interest in natural and health products. Western Europe as a whole imported approximately 140,000 tones which were about 55 % of the consumption. The average EU per capita consumption of 600 g per year varies widely amongst individual nations, from Greece with 300 g per capita; to Germany with 1,800 g per capita. Table 1 : World Imports of Natural Honey ( All Types in Metric Tons )
160,000 140,000 120,000 100,000
2006
80,000
2007 2008
60,000
2009
40,000
2010
20,000
2011
rs he Ot
d rla n tze
ra di A Sa u
Sw i
bia
**
pa n Ja
US A
EU
*
0
Source : UN Co MTrade, USDA-GATS, Eurostat, HS Code 0409.00.00, *Excludes Intra-EU trade, **2011 data estimates based on World exports to Saudi Arabia
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DEMAND AND MARKET FOR TANZANIAN HONEY
Photo: (CC BY-SA 2.0) Don Hankins, Busy Bees.jpg
2. REGIONAL DEMAND It is difficult to estimate the demand of honey exports within Africa continent or within Eastern and Central Africa. A paper presented by Board of External Trade ( now TanTrade ) at the 2 nd National Honey show in 2007, estimated that Africa share of global annual imports was 19 % with Morocco the highest importer at 8 %. Although the actual demand will not be known easily, and if the Board of External Trade ( BET ), now TanTrade report provide as guidance on African imports, it can be estimated that African demand of honey from outside is 190,000 MT or anywhere near that figure.
3. NATIONAL DEMAND The actual national demand is not known. It is estimated that 90 % all honey produced ( 10,000 MT ) in Tanzania is consumed within the country as food or input for making local beer known as wanzuki. It is also known that there is more supply in months of June-August which are main honey harvesting season after the long rains. Usually the prices of honey during these months decline to US $ 4.5 - 5.0 per kilo, but increases to about US $ 8.0 - 9.0 per kilo in months of January and May. This shows that the total annual demand for honey in the country is much more than 10,000 MT.
TANZANIA HONEY IN THE MARKETS
TANZANIA HONEY IN THE MARKETS 4. GLOBAL Tanzania honey on the global market has been on decline systematically despite the rise in global demand. At the same time, investment in beekeeping by various stakeholders has increased ! Today, the major producers of honey worldwide include Russia, China, USA, Mexico, Argentina, Canada, Brazil and Australia ( fao.org, 2014 ). The global demand for pure honey is constantly exceeding supply, and, honey is increasingly becoming valuable and an expensive commodity. For example, it is reported that the price of honey in the US is rising more than 6 % annually, and the market is globally expected to hit US$12 billion by 2015 ( unctad.org, 2012 ). The major exporters however are China, Mexico and Argentina. But again, the highest colony yields are recorded in Australia and Canada which have a favourable environment, as well as highly developed colony management ( fao.org, 2014 ). Processed Tanzanian honey is officially exported to Kenya, Uganda, Oman, India, Belgium and Germany. Honey that is exported to India is mainly for industrial use. Tanzanian exports has seen unabated decline in the past four years as for example, in 2010 only 291.5 metric tons were exported, in 2011 were 343.4 tons, in 2012 were 280.5 tons and in 2013 were 93 tons. Tanzanian exports to the EU declined from 385 MTs to 327 MTs, with Belgium and Germany being the primary buyers. It should be noted that in 2010, Zambia was the largest African supplier to the EU, exporting 518 MTs ( mostly to Belgium ). Tanzania has the potential of exporting more than 5,000 tons of honey and all of its beeswax produced. The beekeeping sector is still a virgin industry for rewarding investment. It is currently being handled by individual beekeepers that lack both adequate finances and appropriate beekeeping skills. There is no organized marketing system for both local and foreign markets to encourage the development and expansion of the industry. More than 90 % of honey produced in the country is consumed in the country as food, mainly for making refreshment and medicine with only 5 % of honey been exported, ( MMA, 2013 ).
5. REGIONAL Tanzanian honey is exported within Sub-Saharan region to Burundi, DRC, Rwanda, Uganda and Kenya. It is estimated that the honey export to the East African region could be over 500 MT taking Match Maker Associates study in Kigoma ( MMA, 2013 ) which estimated that 330 MT were exported informally from Kasulu and Kibondo districts. Honey exported to Burundi is mainly combed honey and producers lose beeswax with it. There is significant amount of honey exported to Burundi, Rwanda and DRC but not captured in the official statistics by MNR / TFS or TRA. This cross border trade is informal and is done mostly by men at night. The honey that is exported to Burundi, Rwanda and DRC is unprocessed comb honey. Ethiopia only exports a small amount to the international market, with the majority of exports being shipped to neighboring Sudan ( 531 MTs in 2011 ).
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TANZANIA HONEY IN THE MARKETS
6. NATIONAL It is estimated that 90 % of honey produced in Tanzania is consumed as food in Tanzania. A significant amount of honey is used to make local beer in areas where honey is produced in huge volumes. The main buyers of the honey are mainly : a ) Members of the community or the village who either buy for brewing ( 20 litres ) or for home use ( 1 litre ). b ) Traders who purchase honey at village level. They buy combed or semi processed honey mainly in the 20 litre containers. These either process the combed honey or pack for selling to markets or they resell unprocessed combed honey to processors. c ) Associations or beekeepers cooperatives that mainly buy combed honey and process this and pack for either wholesale or retail. d ) Processed and packed honey is transported to major cities of Mwanza, Arusha and Dar es Salaam to be sold in shops, supermarkets, exhibitions and sometimes at open air stalls.
Rukia Halfan has been a beekeeper for the last 8 years. She is a member of Motomoto Beekeeping Group in Kipo, Rufiji. When she started beekeeping the group had its own hives and they would work together. Currently she owns more than 20 hives. Rukia harvests honey twice a year and she sometimes will harvest 5-10 litres per hive depending on the season. She sells her honey at Tshs. 8,000 / – per litre and has used the income to open a new business selling African dress materials, has managed to take her first born daughter to college and she has a diploma and pay school fees for her other two children who are in form three and standard three respectively. She also engages in cashew nut production and at the time of interview had five tonnes of cashew worth Tshs. 6M ( Tshs. 1,200 per kg ) which she planned to sell through the cooperative. She said her biggest challenge in beekeeping is the bush burning that people are doing to clear the land, the theft of hives and honey and not having a proper market for their production.
GAPS IN COMPETITIVE ELEMENTS ( QQTC )
GAPS IN COMPETITIVE ELEMENTS ( QQTC ) 7. PRODUCTION Within Africa, Ethiopia is the largest producer of honey. From 2005-2010, Ethiopian honey production increased 26 % from 36,000 MTs to 45,300 MTs. Ethiopia produces dozens of honey varieties based on pollen source, season, and agro-ecological region of production1. Tanzania is the second largest honey producer in Africa and biggest African supplier to the EU. FAO stat data of 2010 states that Tanzania produces 34,000 MT and in 2012 are 28,500 MT ( #14 global producer ) of honey per year yet Tanzanian own estimates are 10,000 MT per year. Whichever the case, the production is far below the potential that exists in Tanzania. More than 20 years ago it was estimated that Tanzania had a potential of producing 138,000 MT of honey and nearly 10,000 MT of beeswax. Since then a lot of forests have been cleared for farming, fuel and by bush fires. However, there is lot more farming now compared to 20 years ago and therefore together with forest potential for natural honey, there is also increase in potential for producing crop honey. This is to say that even in the worst case scenario; the potential has not decreased by 50 %. Therefore, the current production of honey is less than 10 % of the potential. This partly explains why the internal prices of honey are very high. A number of production constraints are identified by the beekeepers including : 1. In most honey producing areas beekeeping is secondary or even a third economic activity. A result of this is that once hives are placed on trees or in an apiary, the management is left to natural forces. 2. Large majority of beekeepers use traditional log hives which produce less honey ( 5 -15 kgs ) depending on season and forage. 3. In some parts of the country, bee-keeping areas were now being encroached by farming, livestock and sometimes charcoal burning. This has then created a situation where a beekeeper has to move further away in order to set up hives as the bees tend to shift to more a conducive place. The further the hives are located the harder it is for the beekeepers to monitor the hives closely. 4. Drought due to climatic changes that makes bees not to produce enough honey due to lack of water and flowers for nectar. Other situations have been too much rain and in other instances too little which has affected production considerably. 5. Production is also constrained by attacks and theft of the honey by destructive insects, animals and human beings. 6. There is a lack of a proper organized market that would motivate them to increase production.
1.– www.ethiopia-ciafs.org |
[email protected] | www.fintrac.com | Market Survey #01 | September 2012.
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GAPS IN COMPETITIVE ELEMENTS ( QQTC )
8. PROCESSING AND QUALITY The best quality honey is made by bees and kept in honey comb. To get a near bee quality honey, processing must be done is such a way to preserve the quality as it was in the combs. Quality of honey can be compromised During feeding if not natural forage, by way of using pest control and chemicals in production During harvesting by using excessive smoke During processing by using dirty or contaminated equipment and storage During transport and storage in very high temperatures Over the past 7 years the quality of processed and packed honey has improved considerably. A the first Honey Show held in Dodoma 2007, honey was brought in good packaging but bulky was packed in used water and whisky bottles. Most honey had particles in them visible by naked eyes. After several national shows and training conducted by MNRT, Trace-T, BTC, SELL, VECO, Traidcraft and Africare ( to mention but few ) the quality of processed and packed honey has very much improved. Used bottles are no longer seen in markets, shops or exhibitions. Known issues in quality are : Lack of skills and knowledge of food safety and hygiene among beekeepers and processor Lack of entrepreneurship knowledge and relate quality and high price in the market Use of dirty and contaminated containers from harvesting areas to storage in household Few high quality processing facilities Lack of suitable transportation services Lack of facility for checking the entire quality parameters of honey before pumping it to market subject to bulk honey to a danger of being spoiled. Lack of proper storage and transport containers so that honey is not kept too long in the steel drums encourages for increased HMF. Lack of adequate quality assurance system that will create a business name for Tanzania ( apart from testing and certification, an industry body whose mark will be recognised by the markets
9. TRADING ( TERMS AND CONDITIONS ) Trading in bee products, mainly honey is done in three main channels. The first channel is from individual beekeepers to the market. This happens in two ways; either the beekeepers sell harvested honey in combs to traders who then sell to processors or exports as is. The second way is by beekeepers processing ( using different technologies, hence different qualities ) honey from the comb and sell to either traders in 20 litres containers, or pack in different retail containers of 200 gms, 460 gms or 1 litre bottles and sell to consumers in the village, local market or high end urban markets. The terms of trade in this channel are on cash and carry basis. The second channel involves beekeepers selling to their own cooperative societies which process using good quality technologies and pack for retail to consumers in local markets, urban markets or exporters. The cooperatives also buy combed honey from beekeepers who are not their members. The terms of trade in this channel are a mix of cash and carry basis or supply on credit based on trust and loyalty to the cooperative to which the beekeepers are members.
GAPS IN COMPETITIVE ELEMENTS ( QQTC )
Photo: (CC BY-SA 2.0) Don Hankins, 522426199_f2cef734fe_o.jpg
The third channel involves medium and large companies that buys combed honey from beekeepers in 20 litre containers and do primary processing at their collection centres. Thereafter, liquid honey is transported to urban facilities for final processing, packing, labeling and sell to retailers or exported to international markets. The terms of trade in this channel are on cash and carry basis or sometimes by means of an advance supply of harvesting and packaging materials with an advanced agreed price. In areas bordering neighbouring countries, there is a specific channel where agents ( traders ) buy combed honey from beekeepers and export the same to the masters in the neighbouring countries. The terms of trade in this channel are on cash and carry basis and in seasons where yield is anticipated to be low, an advance payment is made for honey in the hives. On their side the agents are paid commission per container of 20 litre purchased and delivered !
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STAKEHOLDER ANALYSIS
STAKEHOLDER ANALYSIS Figure 1 : Secondary stakeholders in honey sector
Banks, NEEC, SACCOS, VICOBA
TFS, LGA DBO, Tabora BTI, MAFSC, SIDO, Olmotony,
Input ! Supply
Financial Services
Input Supply
MNRT, SIDO, TanTrade, COOPs MIS
Market Linkages
Extension
! Aggregation
! Production
MNRT"!#$%"! #&'"!! %()$*$"! #+,-)!
BDTL, NBSL, TAWIRI, Carpenters, Artisans, SIDO, Joint Ventures
! Processing
! Trading
Policy Development
! Wholesaling
Chain Governance
Standards
TBS, TFDA, TOAM, GS1, TANCERT, Trace-T
Laws and By-laws
Faida MALI, RUDI, THC, SIDO, TCCIA, TanTrade
! Retailing
Cooperative Organisations, THC, NEEC
Parliament, MNRT, MIT, LGAs, TOAM, MoHSW, TCCIA
Source : Adapted from MMA, 2013
Halfan Athuman Mezera is a member of JUHUDI beekeepers group at Ntanzansona village in Rufiji. Halfan is disabled as he lost the use of his right hand and lost his right leg in a crocodile attack when he was crossing the Rufiji River to take care of his hives. Despite his disability, every season he produces 60-70litres of honey on average although last season he had the good fortune to harvest 140litres. Halfan owns 20 hives. Halfan sells to small traders who come to the village to buy and to his neighbours who do not keep bees. He also engages in cashewnut and simsim farming where he produces an average of I tone and 200kgs per crop respectively. Mr. Halfan notes that their biggest challenge has been a stable market.
STAKEHOLDER ANALYSIS
10. PRIVATE SECTOR ( INDIVIDUALS ) Beekeeping in Tanzania can be traced back to 1949 when a department was created by colonial government and the ministry of agriculture. However, it is known that some societies like Ndorobo and others did collect honey from the trees in their environment. With years communities around the country manufactured log hives, bark hives and hides hives for beekeeping. All this time beekeeping has been practiced as a family affair. With enactment of National Beekeeping Policy in 1998, and national beekeeping programme in 2001, the positive development of the sector started. The beekeeping Act, No 15 of 2002 and beekeeping regulations of 2005, paved the way for government and development partners to invest in developing the sector. The private sector investment into the sector then started to increase aided by marketing opportunities. At the moment over 80 % of beekeeping is done using traditional hives ( TanTrade, 2007 ) and large part of this is still family activity led by heads of the family. The beekeeping development projects by government, NGOs, and development partners use group approach in organising and supporting the sector which has led to existence of many beekeeping groups.
11. BEEKEEPING GROUPS Beekeeping groups are in every district that is known to do beekeeping. The group approach is a model preferred by government and its agencies as well as donor projects for ease of delivering training, extension services and other support to beekeepers. Indeed, it would be very difficult to support individual beekeepers as it would be very costly and time consuming. Besides in rural setting, communal approach to problem solving is a well-accepted practice. Again, through beekeeping groups it is easier to organise micro credit and other forms of revolving funds like VICOBA and Saccos. Again it is easier to organise aggregation, processing and storage in collection centres.
12. BEEKEEPERS COOPERATIVES Beekeepers cooperatives are higher form of organisation than groups. Cooperatives operates as district ( Kasulu Beekeepers Cooperative Society ) or regional ( Tabora Beekeepers Cooperative Socieity ) are registered and regulated under specific laws. Usually, cooperatives are able to handle large quantities of honey, invest in processing technologies and deal with market forces than an individual would be able to.
13. BEEKEEPERS AND TRADERS / PROCESSORS AGREEMENTS Medium and large honey processors have means to enter into commercial agreements with beekeepers either individually or as groups. Traders in this arrangement may provide hives or packaging materials ( 20 litres buckets ) to beekeepers to pack semi processed honey at agreed price.
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STAKEHOLDER ANALYSIS
Photo: (CC BY-SA 2.0) Karen and Brad Emerson, 4715826104_b9abc8978a_o.jpg
14. TANZANIA HONEY COUNCIL THC was established with the goal of improving value chain coordination and regulation to improve the communication and efficiency of coordination by designing a uniform system of protocol. This protocol would outline domestic steps for legal packaging and labelling, local testing requirements, production standards to reduce health threats from contamination, and other measures associated with third party export requirements. However, THC has failed to fulfil this role because it has no core funding to fully operate its secretariat and to provide services to its members. It is currently managed by a few volunteers, but committed staff.
ROAD MAP FOR UPGRADING HONEY SECTOR IN TANZANIA
ROAD MAP FOR UPGRADING HONEY SECTOR IN TANZANIA The sector generates about US $ 19 million per annum, employs some 2 million people and helps in bio-diversity and in increasing agricultural production through pollination. Beekeeping is carried out using traditional methods; using logs and barks hives, apiaries are in the forest areas – far from residential areas and it is largely a man’s business. According to various reports ( Traidcraft 2013, BTC 2013, SCF 2007, 2010, UNIDO 2014 ) confirms that investing in the sector is profitable along the value chain. What is needed is a road map that will guide stakeholders to development and strengthen selected value chains. In the short run ( 3-5 years ) it is recommended that two value chains are focused for development. These are : 1. Production, processing, trading to urban and high end markets within the country. 2. Production, processing, trading to export markets in African region. These two are selected on basis of price differentials and realistic chance of upgrading the value chains to meet buyers’ requirements. Cost Insurance and Freight ( CIF ) prices for importers in the EU are similar or lower than the local prices at the urban and high end markets. In addition, to the price factor, exporting to EU and USA require additional compliance with EU or USA food standards ( product, systems, labeling ), as well as meeting cost of testing and certification by laboratories accredited by private importers. Furthermore, the terms of trade are payments after delivery and acceptance. There is a potential of a third value chain targeting production, processing and trading to specialty honey including organic and fair trade markets. However, before intervening on this chain, it is important to investigate and evaluate feasibility of trying this route. It is believed that the cost of fair trade certification is in the range of US $ 6,000 without counting cost of preparation and audit visits. Traidcraft tried to support fair trade certification in Tabora ( 2007 to 2011 ) with mixed success.
15. OBJECTIVES OF THE HONEY TRADE DEVELOPMENT ROAD MAP The proposed road map / implementation plan is based on the national beekeeping policy, programmes and strategies, recent studies on the sub-sector and activities of key stakeholders in the bee products value chain in Tanzania. This roadmap is produced to serve as a as guide for long-term sector development efforts of the honey sector in the United Republic of Tanzania. The main findings and recommendations and the implementation plan are divided in four key strategic areas relevant for the strengthening of the Tanzania beekeeping sub-sector. 1. Increase quantity and quality of bee products within the country and niche markets 2. Create access to relevant markets, disseminate market information and make the Tanzania honey visible at various markets 3. Improve and strengthen honey sector organization and inter-professional communication 4. Provide adapted financial services to support producers and exporters capacities.
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ROAD MAP FOR UPGRADING HONEY SECTOR IN TANZANIA
16. LIST OF SUPPORT DOCUMENTS FOR THE WORKSHOP In the following tables summarize the key aspects in the honey sector
Annex 1 - Map of Tanzania showing Honey producing areas Annex 2 - Generalized honey value chain map for Tanzania Annex 3 - Generalized Supply chain map Annex 4 : Honey Market segmentation table Annex 5 - Honey sector improvement Road map and implementation plan
ANNEX 1 : HONEY PRODUCING AREAS IN TANZANIA
Annex1: 1:Honey Honeyproducing producingareas areasininTanzania Tanzania Annex
Honeyproducing producing areas inTanzania Tanzania Honey producing areas Honey areas in in Tanzania
ROAD MAP FOR UPGRADING HONEY SECTOR IN TANZANIA
ANNEX 2: GENERALISED HONEY AND BEESWAX VALUE CHAIN MAP
Export Market
Burundi, Uganda, Rwanda, Kenya, DRC
EU, Middle East
EU, Middle East
Cross border trade
Consumption Urban / town consumers
Rural consumers
Retailing
Wholesaling
Dar es Salaam, Arusha Distributors
Supermarkets
Beekeepers Cooperative societies
Grocery shops
Exporting Traders
Beekeeping groups
Trading Exporting Companies
Honey from abroad
Town market retailers
Fairs
Village Traders
Town Traders Big Companies
Town traders
Processing
Aggregation
Individual beekeeper
Beekeeping groups
Beekeepers Cooperative societies
Honey used for brewing Individual Beekeepers
Production
Individual Artisans
Input supply
Channel 1
Sub-contractors
Channel 2
NGOs
TFS and LGA
Channel 3
SIDO
Channel 4
ANNEX 3 : TANZANIA HONEY SUPPLY CHAIN MAP
Local Consumers
Retail Wholesale
Processing
Trading
National Consumers
Kiosk / Grocers
Household Exhibitions
Medium Scale Urban Processors
Local Traders
Regional Consumers
Input supply
International Industries
Honey Imports from UK, Australia, UAE
S / Markets
Packaging Suppliers
Processors and Exporters
Testing Certification
Local Processors Medium Scale Beekeepers
Production
International Consumers
Fair Trade and Organic Beekeepers
Individual / Group Beekeepers
Carpenters, Tailors, Metal
Extension Services
Traceability and Barcode
Business Training
Financing
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ROAD MAP FOR UPGRADING HONEY SECTOR IN TANZANIA
ANNEX 4 : HONEY MARKET SEGMENTATION Definitions 1. Natural honey is extracted from the comb just after the bees are done with it. After submitting honey to the comb, the bees ennoble honey and extract excess water for almost two weeks. It is preserved throughout the extraction, packaging and transport to a temperature of under 42 degrees C, so that honey can retain its natural healing properties intact. 2. Table honey is one which is made by bees and meets national and international standards such as water content, HMF levels, minimum residual levels, etc. 3. Industrial honey is one made by bees but is suffering pasteurization and packaging processes in industrial plants
Table 2: Honey sub-sector, Tanzania, October 2014 Product
Current markets
Target markets
- Table Honey
Local
- Table Honey
- Table Honey
Table Honey
Urban and High end
Regional markets, Kenya, Uganda, Rwanda, DRC
International EU, UAE, Oman, Iran
-Honey and beeswax for manufacturing
India
- Organic Honey
UK, Belgium Not exported
- Fair Trade Honey
UK, Belgium Not exported
Buyers Requirements
Key success factors
Value Chain implications
Same
Ordinary packaging in used bottles, small containers. Price lower than US$3.00 / kg
Taste, colour and naturalness.
Leave segment as it is
Same
Light coloured in appealing package with information of origin, and expire date, bar code Price equal to or less than US $ 6.00 / kg
Increase production of honey to balance demand and supply Increase capacity for high level processing Testing and certification
Make credit available to invest in more modern hives, Facilitate market linkages for improving access to processing technologies
Combed / processed honey of minimum 5+ tons Prices of US $ 2.50 / kg at farm gate
Increase productivity using technology ( modern hives, processing to reduce waste, etc.
Increase modern hives to increase Quantity, Use clustering approach to increase innovation
Requires Quality ( light colour, taste, HMF ) Sufficient Quantity ( 100 tons or above ), CIF price of $4,500 / MT or less Private retailer standards
Increase production of honey and beeswax in the hope of reducing price by balancing demand and supply factors
Make credit available to invest in more hives, Increase full service collection and processing centres quality utilising cluster approach
Ordinary quality honey and beeswax in tons Prices of beeswax US$3.00 / kg or less
Increase production to reduce local prices versus export market prices
Make credit available for purchasing modern hives across the country
Certification by accredited agent ( Tancert / Africert, usually very difficult
Meet costs of accreditation requirements Intern. standards
Quality, standards, traceability, volume, price
Group organisation, training, putting governance in place, management systems, community projects, etc. Then Certification by Fairtrade network costs US $ 6,000 or higher
Meet buyers’ organisational requirements, meet certifications costs, Packaging Volume Transport, Carbon mileage
Investigate viability and profitability in the long run, and if positive then : Organise beekeepers in fair trade guidelines, Train groups, management , Board, Apply for certification, standards, traceability, volume, price
Same
Same
Consumption Volumes
World : 1 million MT1 ( 2012 ) honey Tanzania : Exports 350 MT of honey out of estimated annual 9-10,000 MT produced Exports 410 MT of beeswax
India
Not known
Not known
ROAD MAP FOR UPGRADING HONEY SECTOR IN TANZANIA
Product
Current markets
- Food ingredients products ( milk, juice )
Local markets Dar es Salaam
Cosmetics and body care
Few companies has started in this segment
Local Regional and International
- Honey Beer
Local
Same
- Beeswax
Belgium, Germany, China, Israel Not yet exporting
Same plus USA,
None
Regional ( Kenya and South Africa )
None
Local and regional ( Kenya and South Africa )
- Royal Jelly
- Propolis
Target markets
Consumption Volumes
Buyers Requirements
Key success factors
Value Chain implications
Very low
Availability of honey Affordable prices of US $ 3.00kg or less
Availability desirable
Not desirable
Refined and accredited honey and beeswax
Quantities of 5+ tons and above Prices less than US $ 4.5 / kg CIF
Does not need to be first grade quality Teach product diversification Investment in refining facilities in Kigoma, Tabora and Dar
Quantity only
None
Leave segment as is
Collect sufficient qualities of good quality beeswax
Study trade-off between increase traditional hives where beeswax is high, and increasing modern hives which increases honey without wax
7 %-40 % of production in some areas
100+ MT per year required
Not known
Not known
5-10 MT consignment of good quality and clean beeswax. Traceability system
To be established
Work from market requirements, profitability to determine value chain implications
To be established
Work from market requirements and profitability to determine value chain implications
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tanzania honey road map / implementation plan
TANZANIA HONEY ROAD MAP / IMPLEMENTATION PLAN Below is the Road map / implementation plan based on the national beekeeping plan, recent studies on the sub-sector and activities of key stakeholders in the bee products value chain in Tanzania. The main results are indicated in the charts below. The main findings and recommendations have been integrated under the four key strategic objectives following the charts. The implementation plan is also divided into these four key strategic areas relevant for the strengthening of the Tanzania beekeeping sub-sector. 1. Increase quantity and quality of bee products within the country and niche markets 2. Create access to relevant markets, disseminate market information and make the Tanzania honey visible at various markets 3. Improve and strengthen honey sector organization and inter-professional communication 4. Provide adapted financial services to support producers and exporters capacities
QUALITY
18
FIRST: GET ORGANISED & COMMUNICATE
ORGANISATION COORDINATION COLLABORATION DELEGATION e.g: shared learning and procurement groups
TFS, SIDO + Project to create outreach to collectors to raise standards Simply relationship with beekeepers Collection centre start of traceability Segment collectors and train to add value MAP, DEFINE ROLES,ORGANISE
Differential pricing – HIGHER for quality handling and packaging
Upscale workable solutions Find win-win with district officers to develop training materials Find mechanism to communicate to rural beekeepers
Develop training to LGA BDOs and TFS BDOs
Find mechanism to communicate to rural beekeepers
Honey Council coordination across all levels DEFINE REQUIRED RECORDS
MEET AND DEVELOP WORKPLAN & BUDGET, include harvesting tools and packaging Upgrade Tabora Beekeeping Training Institute – LAB, FACILITIES, TRAINERS
Audio-visual training of beekeepers, $8K and Training Pack
Involve communities Learn from successful approaches
Train beekeeper – ‘en masse’ LGA BDO Beekeeping Training Institute Tabora
10,000 MT
30,000 MT
Reinforce Honey quality testing
MAP
Beekeepers Collectors ?? Processing
VALUE
19
tanzania honey road map /implementation plan
Business, trade and extension support services
Value Chain Map
Channel 1- Domestic market
BEE PRODUCTS PROPOLIS, ROYAL JELLY, POLLEN
Export
TFS , TFDA, TBS, THC, SIDO, TANTRADE, TRACET, GS1
Retailing
TFDA, TBS, THC, SIDO, BTC, BANKS, TANTRADE, TRACET
2a
Wholesale
TFDA, TBS, THC, SIDO, BTC, BANKS, TRACE-T
3a
Town markets
2b
Grocery shops/Kiosks
2c
Direct selling to consumer
2d
Supermarkets
2e
Street hawkers
Whole sale market and distibuters in Dar es Salaam and Arusha
Honey Based beverages, Honey wine ,honey beer
Bee products R&D
Processing / packaging
TFS , TFDA, TBS, THC, SIDO, BTC, BANKS, TANTRADE, TRACE-T, GS1, TCCIA, NEEC
4a
Local Processors
Trading and Transportation
PROCESSORS, TRACE-T, TFS, NEEC, TCCIA
5a
Town / Local Tradersmiddle men
4b
Medium Scale Urban Processors
4c
5b
Large processors
5c
Collection Centres
Religious, Parastatal beekeeping projects
Production
MNRT, TFS , LGAs, TFDA, TBS, SIDO, BTC, BANKS, EQUITY, TRACE-T, GS1, NEEC
6a
Individual Beekeepers
6b
Beekeepers in Cooperative or association
6c
Medium Scale Beekeepers, RETIREES
7b
Honey collection material suppliers
7c
Extraction material suppliers
Women/Men Beekeeper groups
6a
Ease Controls
Inputs
MNRT, TFS, SIDO, PROJECTS, EQUITY, THC, R&D
7a
Extension & Hive suppliers, QUEEN REARING
7d
Processing /packaging material suppliers
7a
20
tanzania honey road map /implementation plan
Value Chain Map
Channel 2: exportation
BEE PRODUCTS PROPOLIS, ROYAL JELLY, POLLEN
1a
1b
1c Middle East, India
Burundi, Uganda, Rwanda, Kenya, DRC
EU, USA, JAPAN
1d
U GERM
Belgium
Export Testing Certification Export testing & certification 2d
Supermarkets
2e
Street hawkers
lower cost than Uganda
GERMANY JAPAN
Exporting traders
3b
BEESWAX
Large processors
4d
5c
n s
Industrial Honey
Large processors Honey Care, Mohamed Enterprises, Fidalhussein, etc
Exporting companies
Religious, Parastatal beekeeping projects
Women/Men Beekeeper groups
7d
Processing /packaging material suppliers
6a
7a
Individual Beekeepers
6b
Extension & Hive suppliers
7b
Beekeepers in Cooperative or association
Honey collection material suppliers
6c
Large & Medium Scale Beekeepers
6d
Fair trade and Organic Beekeepers
7c
Extraction material suppliers
7d
Accreditation requirements & Terms of engagement
tanzania honey road map /implementation plan
21
Problems & weaknesses
1c
1,1
1d Middle East, India
Competiveness (QQTC)
1,2
Knowledge of the distribution channel and their requirements to export
1,3
Low volumes and Su
UK GERMANY
Belgium
Export Testing and Certification 2,1
Supply inconsistency (quantity)
2,2
Supply quality
2,3
3,1
No fully accredited lab for honey testing, Nearest accreditd lab is in Uganda, Time to get quality results is longer, Private standards required by importers
3,2
Inadequate volume
3,3
Contamination foun
4,1
Lack of motivation to use accredited local lab a traders need cheap and quicker results; Limited number of inspection officers and advisory services; limited resources to conduct training and inspection
4,2
Lack of knowledge of how to comply with international standards. Lack of TBS standards by SMEs. Poor access to standards by private sector.
4,3
Lack of capacity to Lack of knowledge o bee products. No in procedures for bee p (product) knowledge
5,1
Problem with different qualities brought to the collection centres, Competition between traders and collection centres, Low sustainability/profitability of collection centres, Lack of contract agreement, contaminations with pesticides
5,2
Limited system to rech all beekeepers information, communication, tools. Limited training of TBT to beekeepers. Need for common training materials to train beekeepers.
5,3
Investment needed fo of training onhow to e information, platf knowledge of bee p collector level
6,1
Traditionnal hive with low yield: Honey Badger-Proof, Hives enclosures : Need to share information
6,2
Harvesting methods - collections and tools. Lack of sufficient training to beekeepers
6,3
Research instituio research agenda to s Lack of local resourc
7,1
High Cost of material: High cost of hives, Lack of access to finance, Issues of availability of Material for harvesting
7,2
Big differences between hives performance in different ecological zones. Information on hive performance not colected.
7,3
ANY AN
WAX
Industrial Honey
ocessors y Care, amed prises, ssein, etc
Medium le epers
tion rial iers
6d
7d
Fair trade and Organic Beekeepers
Accreditation requirements & Terms of engagement
22
tanzania honey road map /implementation plan
tribution channel and export
1,3
y quality
2,3
ate volume
3,3
Contamination found in the exported wax.
3,4
4,3
Lack of capacity to supply bee products. Lack of knowledge or research for extracting bee products. No inspection and sampling procedures for bee products. Lackof market (product) knowledge for honey sector actors.
4,4
rech all beekeepers nication, tools. Limited beekeepers. Need for g materials to train eepers.
5,3
Investment needed for bee products. Lacking of training onhow to extract bee products. No information, platform for sharing. No knowledge of bee products. Storage at the collector level. Wastage of wax
- collections and tools. aining to beekeepers
6,3
Research instituions not linked. Lack of research agenda to submit to reseach funds. Lack of local resources to conduct research.
een hives performance l zones. Information on nce not colected.
7,3
of how to comply with ndards. Lack of TBS MEs. Poor access to y private sector.
Low volumes and Supply inconsistency
1,4
Cost of compliance to International standards and regulations confirmity (HACCP etc)
2,4
Lengthy and costly certification
Expand PG from TNBS to larger members of SMEs for standards. Testing of quality of regional honey (project). Build capacity of existing Lab & Inspection and monitoring. Mobile Inspection Bus. service.
Group packaging material ord deal. Standards creation of Cu Certification collection centres
5,4
Strengthen THC to benefit bee products players
All interventions to provide tot (Knowledge, technology, Qual market information, trade facil facilities)
6,4
Additional resurces required to support Research and coordinate across projects; TBS produced bee hive standards- Performance evaluation underway
Involve LGAs; Framework for s production technology & desig enforcement
7,4
Drop technology regulation, better to share perorformance nd market intelligence; Reseach for innovation in processing hive design
Integrate R&D institutions; link sector and research; establish sharing issues and research id conference, publication, socia for thematic research
tanzania honey road map /implementation plan
Expand PG from TNBS to larger members of SMEs for standards. Testing of quality of regional honey (project). Build capacity of existing Lab & Inspection and monitoring. Mobile Inspection Bus. service.
Group packaging material orders to get a better deal. Standards creation of Curriculum. Certification collection centres
Strengthen THC to benefit bee products players
All interventions to provide total solution (Knowledge, technology, Quality infrastructure, market information, trade facilitation, credit facilities)
Additional resurces required to support Research and coordinate across projects; TBS produced bee hive standards- Performance evaluation underway
Involve LGAs; Framework for sharing hive and production technology & design and enforcement
Drop technology regulation, better to share perorformance nd market intelligence; Reseach for innovation in processing hive design
Integrate R&D institutions; link between privat sector and research; establish platform for sharing issues and research ideas; Start annual conference, publication, social media: bursery for thematic research
packing centre
beekeeprs. DisseminateReinforce training material Honey Council to beekeepers as a BODY for information and communication and coordination
in produce rural areas. basedTraining on GAP,on GMPbefore Beee BIOLOGY HACCP not only on hives management. Training beekeeping in agro eco environment. Provide training kits to beekeepers. Assist Tabora Beekeeping Training Institute
curriculum Research (COSTECH)
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24
tanzania honey road map /implementation plan
ANNEX 5 - HONEY SECTOR IMPROVEMENT ROAD MAP AND IMPLEMENTATION PLAN Strategic objective number 1 : Increase quantity and quality of bee products complying with international standards Activities
Activity №
Type of activity
Potential Progress Direct implementing measures Recipients partners ( indicators )
External support required
Production
Producers
TFS, SIDO, UNDP, FAO, BTC, LGAs, TASAF, Private sector companies, BANKS, FSDT, NEEC, THC, TaFF, TanTrade, ITC, TWCC, Other Dev Partners
Financing through matching grants, loans ( VICOBA, SACCOS )
Quality / Production
Number of trained beekeepers, beekeepers groups in quality management, TFS, SIDO, increase volUNDP, FAO, ume of quality Producers, BTC, LGAs, traded nationProcesTASAF, Private ally, inspecsors, Exsector comtions, number porters panies, THC, of samples ITC, TRACE-T, and rejected SUA, BTI benchmarked to current situation, regular meetings of stakeholders on quality management
1. Increase production of bee products : a. Increase number of beekeepers in areas rich with honey potentials b. Increase number of 1.01 modern bee hives 3. Increase hive occupancy rate ( eg by queen rearing ) 4. Research and teach new products ( propolis, royal jelly )
2. Quality management : a. Improve the harvesting and post-harvest handling ( smoking techniques, use of protective equipment, use of containers, honey grading and pressing, storage ) b. Establish Traceability 1.02 system in every step of the value chain c. Improve quality awareness of producers through buyers, NGOs and government extension services along the value chain
Number of new beekeepers, beekeepers groups, number o new hives purchased, number of subcontracting agreements
Financing through projects grants
3. Quality Assurance : a. Bring TFDA, TBS, GS1 and Traceability-T services down to the processing facilities through the provision of training and 1.02 accessibility. b. Introduce HACCP safety standards and good manufacturing practices. ( GMP ). c. Bring specialty honey ( organic, unique flora ) certification
TBS, TFDA TFS, SIDO, UNDP, FAO, Food BTC, LGAssafety and Producers, Trade Offices, Quality ProcesLGA-Health standards sors, offices, PriSpecialty vate sector Traders certificacompanies, tion THC, NEEC, GS1, Trace-T, Tancert
Number of trained beekeepers, processors and traders
Financing through World Bank or Number of donors, processors and technical packers with capacity quality marks, building Traceability IFAD / FAO system and Bar codes
Proposed activities to be Priority carried out by the sector & current status 1. Train beekeeping as business 2. Training artisans to make appropriate modern hives 3. Increase the number of beekeepers 4. Promote bee queen Very rearing high 5. Increase beekeeping 2014activities near forest 2016 reserves as a conservation measure 6. Research on hive productivity per ecological zone 7. Strengthen and upgrading Tabora Beekeeping Training Institute
Very high 20142016
Very high 201416 Very high 201416 Medium 201517
1. Train beekeepers groups on GMP, GAP, quality and traceability : video kit 2. Introduce traceability in groups that are already processing quality products 3. Facilitate market linkages through commercial agreements and exhibition 4. Increase awareness and education among the public 5. Introduce clustering approach to act as innovation system
1. Prepare standard modular training to be used countrywide 2. Train processors on Hygiene and safety ( TFDA ) requirements along with certification ( TBS ) procedures 3. Train beekeepers and processors on GMP and HACCP certifications to allow greater access high end urban and regional markets 4. Promote Honey Processing centre at SIDO Singida 5. Identify and facilitate organic and specialty honey ( Pemba natural spice, acacia, Itigi thicket )
tanzania honey road map /implementation plan
Activities
Activity №
4. Packaging : a. Encourage establishment of local industry and traders for plastic and / or 1.03 glass containers of retail size for honey b. Encourage production quality packaging by local manufacturers
External support required Financing business Producers, Plastic or glass develTFS, SIDO, Procesjars of retail opment ITC, national Packaging sors, size available, especially packaging Design of Exporters industry, Pri- attractive retail matching / p rocespackage deinvestors requisite vate input supsors sign, number ready to labels pliers, BTC, of retail sales open retail Supply UNDP, THC overseas packaging traders in regional capitals Type of activity
Potential Progress Direct implementing measures Recipients partners ( indicators )
5. Storage and Logistics : a. Identify strategic points in existing production areas and develop or improve collection centres b. Train storage technician on storage, logistics and management
1.04
Storage, BeekeepLogistics ers, proand transducers port
1.05
Export procesprocesors and dures and Exporters policies
6. Export procedures a. Simplify the process of export documentation 7. Locally available inputs a. Train local craftsmen in providing critical inputs to the 1.06 beekeeping sector at reasonable prices ( including hives, centrifuges, protective clothing ).
Procurement
TFS, BTC, UNDP, WWF Beekeepers Associations, NEEC,LGAs, SUA, TCCIA
Proposed activities to be Priority carried out by the sector & current status
High 201517
FinancCollection cen- ing of new tres renovated / renovated or newly estab- collecHigh lished, trained tion or Collection processing 2015center manag- centres, 16 ers, reduction Training of transport of center costs managers
TFS, Tanzania Honey Council, TIC, Simplified proTanTrade, cedures TANEXA, ITC,TCCIA,TRA Prices and local availability of modern hives, protective Producers, TFS, SIDO, clothing, centricraftsmen THC, NEEC, fuges, number and exVETA, BTC, of craftsmen porters Africare, supplying the honey sector, domestic sales / import ratios in procurement
Low 201516
Financial support for developing business support services BTC, Bees for Development
Very high 201416
Facilitate establishment of packaging retailing at regional level where SIDO or TFS is not doing the service.
MNRT, SCF and RLDC supported building of collection centres 3. Assist and support improvements in security and hygiene measures at collection centres 4. Create new collection centers for remote areas 5. Train center personnel on storage, logistics, and business management. Export prices are lower or equal to national prices so no need to invest much on this
Train locals to improve capacity to make the necessary beekeeping equipment at cheaper prices than imported goods
25
26
tanzania honey road map /implementation plan
Strategic objective number 2 : Create access to relevant markets, disseminate market information and make the Tanzania honey visible at international markets Activities
1. Market and Product diversification : a. Determine target markets and tailor branding and marketing behaviour to the particular needs ( labeling, packaging, taste, safety ) b. Ensure compliance to international quality standards, especially organic food standards c. Introduce new products, e.g. royal jelly, propolis, foods
Proposed activities to be Priority carried out by the sector & current status 1. Conduct nationwide mapping of beekeeping current beekeeping potential, forage, floral and trade aspects to identify unique strengths 2. Identify buyers and Exports of buyer’s requirements specialty prodof the identified target ucts to new TFS, SIDO, market for honey and markets, bee NEEC, UNDP, ITC exhoney-by products Marproducts' port- pertise, Very Exporters, FAO, BTC, ( quality, labelling, ket and folio develop- Financing high Traders, LGAs Private certification, packaging product ment, share Processector comof interetc. ) 2015diversifiof organic sors panies, THC, national 3. TanTrade and Diplomatic 16 cation exports GS1, TBS, donors missions to collect TFDA, TanTrade Number of market intelligence and consistently provide new products these to TFS, SIDO and developed THC to work on supply side 4. Train producers, processors how to make new products from honey or based on honey 4. Organise geomapping activities to identify and locate Tanzanian beekeepers by type of flora. This should be done jointly with activity 1, of the preceding Numbers Exporters, section of informaProces1. Train and assist tion centres, sors, TFS, SIDO, / equip THC to run and numbers IT exVery Traders, NEEC, UNDP, update the database of Market of informapertise, high Producers, Bees for Demembers & disseminate information requests funding TanTrade, velopment, information 2014tion / subscribers for infraTanzania BTC, THC, 2. Train & assist THC to 16 to services, structure Honey TanTrade offer additional services coverage of Council, to its members once information SIDO fully identified and system, registered 3. Use ICT technology ( mobile applications ) to disseminate technical and market information to THC members and other beekeepers. 1. Train and support Number of Tanzania honey participants stakeholders to visit and in fair and exparticipate international Exporters, change visits; trade fairs. TFS, SIDO, ITC, Bees Procesnew orders 2. Assist and train the THC NEEC, BTC, for Devel- High Promo- sors, Tradgenerated, to include processors in THC, TWCC, opment, 2015tion ers, Tanzasales volume their target customers TanTrade, TCApitrade 16 nia Honey to new mar3. Assist and train THC CIA Africa, Council kets, recognito develop its service tion of Tanportfolio to suit needs zania Honey of new / additional Council members ( processors, etc. ).
Activity Type of № activity
2.01
2. Market and supply information : a. Create a unified system for collection and dissemination of market information based at Tanzania Honey Council in collaboration with TanTrade and SIDO. b. Develop suitable ways 2.02 to spread the market, prices and availability information to the provinces, e.g. through LGAs information centres, mobile information services c. Create a database of producers and buyers within the Tanzanian honey sector
3. Trade promotion : a. Promote Tanzanian products in target markets by active participation of Tanzanian exporters in 2.03 trade fairs, study tours, regional shows, etc. b. Strengthen the Tanzania Honey Council to become the leading representative of Tanzania bee products.
Potential Direct implementing Recipients partners
Progress measures ( indicators )
External support required
tanzania honey road map /implementation plan
Activities
Activity Type of № activity
Potential Direct implementing Recipients partners
Progress measures ( indicators )
External support required
Logo established, registered users of logo, communication road map ready, higher international awareness of Tanzanian bee products.
Expert to create communication 1. Create communication road map road map for Tanzanian and logo honey sector design, ( differentiation, new quality target niche ) Medium require2. Identify possibility ments of 2015of developing new leading 16 brand / logo Support importsector’s actors ers, ITC, ( processors, exporters ) Bees for in their branding and Developpositioning efforts ment, European Commission
4. Marketing : a. Create a communication road map for Tanzanian honey b. Develop a logo / brand / trademark registered and operated by the Tanzania Honey Council and TanTrade on voluntary basis and financed by 2.04 users contributions c. Create awareness for the unique quality features ( unique selling propositions ) of Tanzanian honey and bee products ( e.g. Royal jelly, propolis, bee's wax ) in key markets ( Japan, EU, UAE, South Africa ) 5. New distribution channels : a. Establish stable linkages with partners in target market countries and build mutually beneficial alliances for distribution or partnership with renowned international retail networks ( one-toone matchmaking ) b. Establish a warehouse receipt system for honey at rural markets in Tanzania.
2.06
Exporters, ProcesCommu- sors, nication Producers, and pro- Internationmotion al consumers, Supermarkets
TFS, NEEC, THC, TWCC, TanTrade, leading honey importers, TCCIA
Numbers of new partnerships or alliExporters, ances, number ProcesTFS, NEEC, of matchmakDistribu- sors, THC, TanTrade, ing events tion Traders, leading honey organized, Producers, importers, ITC new business Importers generated, number of rural commodity exchanges
Proposed activities to be Priority carried out by the sector & current status
Market analysis services, financing Low for net2015working 17 events, commodity exchanges
1. Identify potential new supply source, matching the needs of the Tanzanian honey actors’ customers ( i.e. in terms of quantity, quality, price and certification required... ) 2. Assess economic viability of establishing collection centres for honey in rural areas in Tanzania with adequate packaging
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tanzania honey road map /implementation plan
Strategic objective number 3 : Improve and strengthen honey sector organization and inter-professional communication Activities
Activity №
Type of activity
Potential Progress Direct implementing measures Recipients partners ( indicators )
1. Make the Tanzanian Honey Council an effective apex body : Organize a unifying meeting of the THC with all stakeholders of the sector to discuss the future organization of the sector;
3.01
• strengthen the organization; • have a regular distribution of information on sectorial issues;
2. Strengthening the local beekeepers capacity to bargain better prices • through capacity building on delivering key services, • resource inputs, • organizing district meetings
3.02
Sector organization
4. Further develop Public and Private Partnership 3.04 for the honey sector in Tanzania
5. Develop a regional and international network and partnerships • with established honey sector associations in 3.05 main target markets; • to promote information on changes in market preferences
TFS, SIDO, NEEC, TWCC, TCCIA, BTC, THC, UNDP, ITC
Proposed activities to be Priority carried out by the sector & current status
Tanzania Honey Council is functioning as a PPP apex body of Tanzania's honey sector,
Build capacity of THC adVery ministratively, high fund raising 2015 and service Market informa- portifolio tion provided regularly
Sector Organization
Producers, Processors, Exporters, Support service providers
TFS, SIDO, NEEC, TCCIA, TWCC, BTC, THC, UNDP, FAO
Increasing outreach of local beekeeping cooperatives, more services delivered to beekeepers, regional meetings organized regularly
Coordination
Ministries, MDAs, Tanzania Honey Council
All ministries dealing with aspects of beekeeping, Tanzania Honey Council, Donors
Regular meetings organized with representatives of different ministries to exchange information on honey sector;
Coordination
Exporters, Processors, Traders, Producers, ZDA
MNRT, MIT, NEEC, MAFSC, LGA, TWCC, TCCIA, TanTrade, SIDO Tanzania Honey Council,
regular meetings are planned and held involving all the value chain stakeholders
Interprofessional Coordination and Communication
Tanzania Honey Council; producers, Exporters
MNRT, MIT, NEEC, TanTrade, Tanzania Honey Council
Membership agreement; exchange visits organized; new contacts established
3. Improve communication and coordination for beekeeping issues between ministries • through Tanzania 3.03 Honey Council with support from the NEEC and • Improve information flow from markets to producers through Information Centres
All stakeholders of the honey sector
External support required
Expertise on meso-level organizational and financial management strengthening; financial resources to support beekeepers associations
Best practice
Beekeepers Cooperatives are preferred to groups or associations.
Very high 201517
Very high 2015
Best Practice
Very High 2015
Membership fees, cost of travel and exchange visits
1. Establish Tanzania Honey website 2. Conduct organization assessment 3. Establish THC “virtual” presence in honey production districts 4. Establish sustainable market information infrastructure 5. Support review and update of its Strategic Plan
Medium
1. Conduct organization assessment 2. Establish flexible membership recruitment and development 3. Establish collection centres 4. Improve by training organizational and management capacity of Cooperatives 1. Facilitate meetings of stakeholders 2. Establish apiforum for Tanzania, this workshop could be just the beginning and maintain academia, private and public sectors presence. 3. Revive the Tanzania Honey Expo which contributed to changing the mindset and quality issues 1. Facilitate meeting of Multi Stakeholders forum relevant agencies ( stating with the workshop ) 2. See above 1. Tanzania already participates in Apitrade Africa and Apimondia meetings 2. Establish partnership with Asian Beekeeping network, and European beekeeping network
tanzania honey road map /implementation plan
Strategic objective Number 4 : Provide adapted financial services to support producers and exporters capacities Activities
Type Potential Activity Direct of implementing № Recipients activity partners
Progress measures ( indicators )
External support required
Priority
1. Micro-credit and savings schemes : • Expand SIDO National Entrepreneurship Development Fund to offer microcredit to beekeepers • Simultaneously develop SACCOs and VICOBA 4.01 lending and saving schemes based with beekeepers cooperatives • Develop innovative small loan schemes for beekeepers in rural areas in order to purchase hives, bulk packaging, harvesting tools, bicycles 2. Improved access to formal credit : • Tanzania Honey Council and SIDO to help 4.02 beekeepers / processors / exporters on how to approach banks for formal credits
Beekeepers' Associations Micro- Producers, / cooperatives, finance Processors Banks, Private companies
Savings and credit schemes created; number of beekeepers having access to microcredit schemes, Amount of loans given,
Exporters Bank/ procesing and sors, local credit craftsmen
Number of beneficiaries approaching banks ITC consuccessfully, sultancy amount of formal credit given
Tanzania Honey Council, SIDO, NEEC, Banks, PASS, ITC
AfDB, BTC, DFID??, ITC support in securing funds
Very High 201416
Proposed activities to be carried out by the sector & current status 1. Organise beekeepers into cooperatives 2. Train cooperatives in VICOBA, SACCOs 3. Train cooperatives in warehouse receipt system 4. Attract banks to partner with cooperatives 5. Request additional budget allocation into NEDF 6. Promote or scale up equity and venture capital into the sector
Medium 1. THC, SIDO and NEEC to partner with banks 2015to train processors 16 and traders
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30
Prepared by: Sosthenes Sambua
Sponsored by:
Street address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland Postal address: ITC, Palais des Nations, 1211 Geneva 10, Switzerland Telephone: +41-22 730 0111 Fax: +41-22 733 4439 E-mail:
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