Meat Industry

Background

The urge to develop the Meat Industry is a historical event; way back before independence in the year 1951, the Government mandated Tanganyika Packers Limited (TPL) to oversee development of the Meat Industry until when it was nationalized in 1974. Thereafter (1974), the Meat Industry was legally put under the authority of Livestock Development Authority (LIDA) established by the Meat Act No. 13 of 1974 as a holding company with the following subsidiary companies;

(i)  National Cold Chain Company (NCCC), which was responsible for cold storage, refrigerated transport and retail facilities of meat and meat products for the domestic and export market, Tanzania;

(ii)  Livestock Marketing Company (TLMC), which was responsible for marketing of livestock,;

(iii) National Ranching Company (NARCO), responsible for producing beef in large scale ranches;

(iv) Dairy Farm Company (DAFCO), which was responsible for the production of milk;

(v) Tanzania Dairies Limited (TDL), which was responsible for the collection, processing, marketing and distribution of milk and milk products,

(vi) National Poultry Company (NAPOCO), which was responsible for the breeding, hatchery and commercial layer and broiler operations;

(vii) Tanzania Feeds Company (TAFCO), which was responsible for the production of compounded animal feeds;

(viii) Tanzania Hides and Skins (THS), which was responsible for developing leather industry through improved production, processing and marketing of hides and skins and

(ix) Tanganyika Parkers Limited (TPL) which was responsible for meat processing;

 

However, the government disbanded the law which established LIDA in 1984; as a result LIDA was liquidated. The TPL continued to operate until 1993 when it was closed down. Between 1993 and 2000, when the above parastatal organizations were not functioning, the meat industry operated under the informal sector without any control mechanism.

In early 2000, the government in collaboration with Meat Industry stakeholder realized the need to revitalize the industry. The government organized a Livestock Sector Stakeholders Workshop which was held in Arusha from 2-4th April 2001, under the chairmanship of former President of the 3rd Government Hon. Benjamin W. Mkapa, it was in this workshop, where major constraints for performance of the sector were identified and outlined measures. Livestock Products Processing and Marketing was identified as one of the major constraints and noted that, there is little value addition in the livestock value chains characterized by lack of grading of livestock and livestock products, lack of fattening of animal to improve quality prior to marketing, inadequate infrastructure for processing and poor handling, presentation and packaging of most livestock products. Also processing, packaging materials costs were observed to be high, inadequate quality control and inadequate knowledge and skills among actors in the livestock value chains. The challenge therefore was how to improve value addition in the livestock value chains at low cost.

In the other hand, livestock and livestock products marketing and trade face several constraints and challenges which include:

  • Poor market infrastructure for livestock and livestock products;
  • Poor and costly transportation system for livestock and livestock products;
  • Poor or little knowledge (inadequate information) of the markets (domestic and export) for livestock and livestock products;
  • Weak livestock producers organizations, which limits the exploitation of economies of scale in marketing of livestock and livestock products, leading to high transaction costs, wastage and inefficiencies;
  • Weak linkages or coordination among actors in the livestock value chains;
  • Inadequate entrepreneurship and business skills including negotiation skills especially among smallholder resource-poor livestock producers;
  • Competition from other livestock exporting countries for existing and new markets for livestock and livestock products;
  • Compliance with livestock trade regulations and international code;
  • Overcoming barriers to trade especially non-tariff barriers including bans on import of live animals and products of animal origin;
  • Competition from subsidized livestock products imported from outside the country that discourage investments; and

Low local demand for livestock products

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Language :Kiswahili