MODERN SUGAR CANE AGRICULTURE INDUSTRY IN TANZANIA
The sugar cane agriculture industry in Tanzania is one of the main contributors to the country’s economy, providing employment, income and raw materials for various sectors. Here are some examples of how the industry operates and its challenges and opportunities:
- Sugarcane farming: Tanzania has about 40,000 hectares of land under sugarcane cultivation, mostly in the regions of Morogoro, Kagera and Kilimanjaro. The average yield is about 88 tonnes per hectare, which is lower than the regional average of 100 tonnes per hectare1. Sugarcane farmers are either smallholders who supply cane to the mills under outgrower schemes, or large-scale estate owners who have their own milling facilities2. Some of the challenges faced by sugarcane farmers include lack of access to quality seeds, fertilizers, irrigation, credit, extension services and markets. Some of the opportunities include adopting improved varieties, modern farming practices, mechanization, intercropping and diversification2.
- Sugarcane processing: Tanzania has four large sugar mills, namely Kilombero, Tanganyika Planting Company, Kagera and Mtibwa, with a combined crushing capacity of about 18,000 tonnes of cane per day. The mills produce both white and brown sugar, as well as by-products such as molasses, bagasse and ethanol34. Some of the challenges faced by the sugar mills include high production costs, low milling efficiency, poor infrastructure, power shortages, market distortions and competition from imports. Some of the opportunities include enhancing milling efficiency, diversifying into by-products, investing in cogeneration, upgrading technology and expanding capacity2.
- Sugar consumption and trade: Tanzania consumes about 710,000 tonnes of sugar annually, with a per capita consumption of 13 kg, which is lower than the regional average of 20 kg3. Sugar is used for domestic and industrial purposes, such as sweetening beverages, making confectionery, baking, brewing and distilling1. Tanzania exports about 50,000 tonnes of sugar, mainly to neighboring countries, and imports about 270,000 tonnes of sugar, mainly from Brazil, India and Thailand, to meet the domestic demand gap32.
- Some of the challenges faced by the sugar industry in terms of consumption and trade include smuggling, dumping, tariff and non-tariff barriers, price fluctuations and consumer preferences. Some of the opportunities include promoting regional integration and trade, increasing domestic consumption, developing niche markets and improving quality and branding2.
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