Market Trends of Grains Industry in Tanzania
This section covers the major market trends shaping the Tanzania Grains Market according to our research experts:
Increasing Demand for Animal Feed Accelerating the Grain Market
- The rising scale of urbanization due to changing consumer preferences in meat products and growing awareness of nutrient management in cattle, sheep, and goats by livestock raisers are projected to boost the demand in the feed market in the coming years. Thus, the demand for cereals such as soybean, wheat, and maize is increasing due to a significant increase in animal feed demand.
- Production of crops like maize has significantly increased due to the increasing livestock population, which drives demand for the feed industry. For instance, according to the Food and Agriculture Organization (FAO) report, in 2020, there were 29.97 million cattle, which increased and reached 30.72 million in 2021 in Tanzania.
- Since commercial broiler feed in the country is very expensive and not affordable for small-holder farmers, Maize and protein concentrate traditionally comprise more than 70% of farm-made diets. Which, in turn, is expected to boost the revenue of grains in the market studied.
- Recently, The International Institute of Tropical Agriculture, in collaboration with Wageningen University and Catholic Relief Services (CRS), promoted soybean production in the Southern Highlands of Tanzania (SH), aiming to improve household nutrition and cash income and enhance soil fertility.
- The increase in soybean production in Tanzania is primarily driven by increasing demand for animal feed. Therefore, increasing demand from the animal feed industry is accelerating the production of grains, which is expected to further fuel the growth of the market studied over the forecast period.
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Maize Dominating the Grain Market
- Maize is one of the staple crops grown in Tanzania, providing over 45.0% of the country's daily calorie consumption. To meet the domestic demand, most farmers grow maize on their farmland. It is one of the largest agricultural commodities in terms of production volume. Maize is also important for poultry feed and a substitute for the brewing industry. It is cultivated under hybrid varieties and GM technologies.
- Maize in Tanzania is grown in unimodal and bimodal areas. However, the leading producing areas are mainly in the Iringa, Morogoro, and Ruvuma (southern highlands), Tanga and Arusha (northern highlands), and Kagera (Lake Zone) of the country. According to Food and Agriculture Organization (FAO), maize production was 5,652,005 metric ton in 2019, which increased and reached 7,039,000 metric ton in 2021. It is expected to increase further in the forecast period to meet the export and domestic demand.
- Furthermore, about three-quarters of maize consumption in the country is from its local production. As per the United States Department of Agriculture (USDA), in 2021, Tanzania's annual per capita consumption of maize was around 135 kilograms, and white maize is the most popular variety. Maize provides 80 percent of dietary calories and more than 35 percent of utilizable protein in the country. On average, maize purchases account for 16 percent of household food expenditures, but this figure varies dramatically by region. Therefore, the growing demand for maize among the population is expected to drive the grain market in Tanzanian over the forecast period.
