Investment Guide for Poultry · There is a bright future, provided all components of the poultry...
10
INVESTMENT GUIDE FOR Prepared by the Tanzania Ministry of Livestock and Fisheries in collaboration with the Agricultural Department of the Embassy of the Kingdom of the Netherlands in Tanzania August 2020 POULTRY
Transcript of Investment Guide for Poultry · There is a bright future, provided all components of the poultry...
I N V E S T M E N T G U I D E F O R
Prepared by the Tanzania Ministry of Livestock and Fisheriesin collaboration with the Agricultural Department of theEmbassy of the Kingdom of the Netherlands in Tanzania
A u g u s t 2 0 2 0
I N T A N Z A N I A
POULTRY
Tanzania is endowed with abundant natural resources, whichinclude land, forage, and a livestock resource base. The Poultrysubsector is comprised of a large proportion of indigenouschickens, dual purpose chickens, and exotic (layers andbroilers) chicken. The sector has great potential for investmentconsidering the country boasts 38.5 million local chicken, 40.6million layers and broilers, and a growing population of dual-purpose chickens. This sector value chain offers lots ofinvestment opportunities.
The Ministry of Livestock and Fisheries operates several poultrydevelopment centers across the country to support theindustry in terms of extension services. The Ministry alsofacilitates a conducive business environment in terms ofpolicies, strategies, acts, and regulations for the sector. In 2019,
the Ministry launched a Livestock Masterplan and LivestockDevelopment Strategy to support the private sector.
In addition, together with private sector, the Ministry hasprepared this poultry investment guide. The investment guideserves as a sector informative tool for both local and foreigninvestors, geared to support investors in arriving at logicalinvestment decisions.
It should be noted that figures and costs provided are in theform of estimates. The actual costs may vary due to a numberof factors including type and source of materials used,
climatic conditions, infrastructure and technology, numberand size of chicken houses, etc. For this reason, it is importantfor any investor to start with a thoroughly-researched businessplan before investing.
The Government of Tanzania is grateful for the supportoffered by the Agricultural Department of the Embassy of theKingdom of the Netherlands in Tanzania towardsdevelopment of the investment guide.
I am confident that this investment guide will be useful to thebusiness sector. Again, the Ministry assures businesses fullsupport in facilitating the implementations towards poultrysector development.
Wishing you all success,
Prof. Elisante Ole GabrielPermanent Secretary - LivestockMinistry of Livestock and Fisheries
August 2020
The Tanzania Livestock Master Plan is available for download fromhttps://www.mifugouvuvi.go.tz/projects/2.
• CAPITAL CONSIDERATIONS •estimated initial investment by farm size and typecurrent situation and areas of potential growth
2.7BTSH
100,000 birds
125MTSH
5,000 birds
1.55BTSH
50,000 birds
Broiler and Layer farms are lucrativefrom 5,000 birds (considered a smallfarm)
Broiler Farm
Layer Farm
3.5BTSH
100,000 birds
125MTSH
5,000 birds
2.06BTSH
50,000 birds
Parent stock farms are lucrative from4,750 birds (considered a small farm)
Parent Stock Farm
POULTRY FARM• OUTLOOK •
• PROCEDURE & REGULATIONS •policies and requirements for investment*
Development of a Business PlanRegistration with BRELATaxpayer Identification Number (TIN) from TRA Land AcquisitionNEMC: EIA for Land UseRegistration with the Ministry of Livestock & Fisheries breeder farms onlyRegistration with Tanzania Meat Board commercial broiler & layer farms onlyLocal Government License (Permit)- Business LicenseCertificate of Compliance from OSHAFire Certificate from Ministry of Home Affairs
*see Procedure & Policy chart for detailed information
The biggest challengefor many farmers,
myself included, is thequality of day-old
chicks. Devising meansto ensure quality-
control would go a longway in growing our
poultry farms.
Dr. KelemaniAlphonce
Shamba Africa Limited
Working Capital:30M TSH
Note: Figures are given as a guide only. Investors are advisedto conduct feasibility studies to ascertain exact costs.
286MTSH
4,750birds
1.5BTSH
10,000 birds
Working Capital:81M TSH
Working Capital:444M TSH
Foreign investors must also obtain: Work Permit from the Ministryof Labor Resident Permit fromthe Immigration Department,
Ministry of Home Affairs
Ms. AureliaG. MmbagaTusumuke Group
Hatcheries representa fundamental link in
the poultry valuechain. Any
investment in thisarea that addresses
and supports theavailability of reliableparent eggs will be a
game changer.
Includes: setters, hatchers,generators, land and building
HATCHERY• CAPITAL CONSIDERATIONS •• OUTLOOK •
estimated initial investment by hatchery sizecurrent situation and areas of potential growth
75,000birds hatched
per week
800MTSH
120,000birds hatched
per week
1.2BTSH
20,000birds hatched
per week
125MTSH
Hatchery-Specific:Inspection by an Officer from the Municipal GovernmentImportation Permit required to import parent stock (through TBS)
Development of a Business PlanRegistration with BRELATaxpayer Identification Number (TIN) from TRA Land AcquisitionNEMC: EIA for Land UseRegistration with Directorate of Veterinary Services hatcheries onlyLocal Government License (Permit)- Business LicenseCertificate of Compliance from OSHAFire Certificate from Ministry of Home Affairs
*see Procedure & Policy chart for detailed information
Strong need for geneticimprovement programs andoptimization of hatcherymanagement practices
Need for skilled labour with specificattention to hatcheries
Need for standardization, especiallyin the area of chick sorting
Note: Figures are given as a guide only. Investors are advised to conduct feasibility
studies to ascertain exact costs.
Working Capital:90M TSH
• PROCEDURE & REGULATIONS •policies and requirements for investment*
Foreign investors must also obtain: Work Permit from the Ministryof Labor Resident Permit fromthe Immigration Department,
Ministry of Home Affairs
FEED MILL• CAPITAL CONSIDERATIONS •• OUTLOOK •
estimated initial investment by feed mill sizecurrent situation and areas of potential growth
Feed Mill-Specific:Regulated by Animal Feed ActTBS Certification requiredRegistration of Premises with the Ministry of Livestock & Fisheries
*see Procedure & Policy chart for detailed information
Small-scale local farmers make theirown feed using locally availablematerials, and jeopardizing quality asmany lack knowledge of needednutrient combinations
Feed shortage remains a hindranceto industry growth with a demand of2 million tonnes/year and productionof 800,000 tonnes /year
Investment in feed storage andprocessing of affordable quality feedscould substantially improve theindustry
Note: Figures are given as a guideonly. Investors are advised toconduct feasibility studies to
ascertain exact costs.
Prof. FaustinP. Lekule
Professor at SUA /Director, Tanfeeds
The animal feedindustry can be
driven by afriendly taxregime and
relaxed exportlaws.
Feed concentrates are VAT exempt
50 tonsprocessed
per day
1.9BTSH
30 tonsprocessed
per day
1.2BTSH
5 tonsprocessed
per day
195MTSH
2 tonsprocessed
per day
45MTSH
WorkingCapital:10M TSH
WorkingCapital:
50M TSH
Development of a Business PlanRegistration with BRELATaxpayer Identification Number (TIN) from TRA Land AcquisitionNEMC: EIA for Land UseLocal Government License (Permit)- Business LicenseCertificate of Compliance from OSHAFire Certificate from Ministry of Home Affairs
• PROCEDURE & REGULATIONS •policies and requirements for investment*
Foreign investors must also obtain: Work Permit from the Ministryof Labor Resident Permit fromthe Immigration Department,
Ministry of Home Affairs
There is a bright future, provided allcomponents of the poultry subsector
work in collaboration with oneanother.
Mr. Manase Mrindwa,Secretary,
Poultry Association of Tanzania
LOGISTICS• CAPITAL CONSIDERATIONS •• OUTLOOK •estimated initial investment for a mid-size operationcurrent situation and areas of potential growth
Development of a Business PlanRegistration with BRELATaxpayer Identification Number (TIN) from TRA Land AcquisitionNEMC: EIA for Land UseLocal Government License (Permit)- Business LicenseCertificate of Compliance from OSHAFire Certificate from Ministry of Home Affairs
80 ton cold roomfully installed
Blast Freezer
Refrigerated TrucksThree 4-ton trucks
295M TSH
Generator
175M TSH
35M TSH
50M TSH
35M TSH
Cold chain, a key component oflogistics, enables farmers to prolongthe shelf life of their harvest andcontrol the timing of their sales
Holds the potential to open domesticand international markets as access islimited by the absence of cold storeinfrastructure, forcing farmers to sellquickly to local markets for sub-optimal prices
*see Procedure & Policy chart for detailed information
Logistics-Specific:Vehicle Registration required for all transport vehiclesAll delivery vehicles must carry Electronic Fiscal Device (EFD) machines
Need for behavior change campaignfor the market to adopt frozenchicken
A mid-size business operation example;items are imported
Note: Figures are given as a guide only. Investors are advisedto conduct feasibility studies to ascertain exact costs.
• PROCEDURE & REGULATIONS •policies and requirements for investment*
Foreign investors must also obtain: Work Permit from the Ministryof Labor Resident Permit fromthe Immigration Department,
Ministry of Home Affairs
PROCEDURE & POLICY
KEY ORGANIZATIONSG O V E R N M E N TO R G A N I Z A T I O N SMinistry of Livestock and Fisheries (MLF)
www.mifugouvuvi.go.tz [email protected]
Business Registrations and Licensing Agency(BRELA)
www.brela.go.tz [email protected]
Ministry of Home Affairs www.moha.go.tz - [email protected]
Ministry of Lands www.lands.go.tz [email protected]
National Environment Management Council(NEMC)
www.nemc.or.tz [email protected]
Occupational Safety and Health Authority(OSHA)
www.osha.go.tz [email protected]
President’s Office-Regional Administrationand Local Government (PO-RALG/TAMISEMI)
www.tamisemi.go.tz [email protected]
Tanzania Bureau of Standards (TBS) www.tbs.go.tz [email protected]
Tanzania Meat Board www.tmb.go.tz [email protected]
Tanzania Investment Centre (TIC) www.tic.go.tz [email protected]
Tanzania Revenue Authority (TRA) www.tra.go.tz [email protected]
I M P A C T C L U S T E R'Kukua na Kuku' Impact Cluster
A S S O C I A T I O N SPoultry Association of Tanzania (PAT)
L E A R N I N GI N S T I T U T I O N SKilacha Agriculture Training Institute (KALTI)
Sokoine University of Agriculture (SUA)[email protected]
Tanzania Poultry Education Centre (TPEC)[email protected]
A G R I C U L T U R A L B A N K S Tanzania Agricultural Development Bank(TADB)
Financial Sector Deepening Trust (FSDT)[email protected]
P A R T N E R SEmbassy of the Netherlands in Tanzania
www.www.netherlandsworldwide.nl/countries/tanzania/doing-business/[email protected]
Private Agricultural Sector Support Trust(PASS)
As a cluster of Dutch companies, the ‘Kukua naKuku’ (Growing with Chicken) partnership promises
farmers to increase their efficiency, productivity, and
quality of their product by learning from the cluster’s
agricultural expertise and experience. The cluster
aims to improve farm management, animal health,
and marketing, and ensure the availability of quality
feed and suitable equipment.
INVESTMENT GUIDE FOR
POULTRY IN TANZANIA
AUGUST 2020
Disclaimer: All prices and costs are indicative only. Any financialinformation shared in this guide must be used solely as a tool.It is recommended to develop a business plan. Investors areresponsible for the development of their own business plans
which should include capital and working financialrequirements applicable to their specific situations.
