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POULTRY SECTOR COMMERCIALIZATION OF …

RLDC SLC SECTOR Development Strategy 1 POULTRY SECTOR COMMERCIALIZATION OF chicken production AND MARKETING IN THE CENTRAL CORRIDOR Team Leader: Ibrahim Kisungwe Advisor: Dr Ralph Engelmann Team Members:Braison Salisali and Ajuaye Sigalla RLDC SLC SECTOR Development Strategy 2 EXECUTIVE SUMMARY .. 3 ABBREVIATIONS AND 4 INTRODUCTION .. 5 production AND MARKET ANALYSIS .. 6 NATIONAL DEMAND AND SUPPLY .. 6 POULTRY VALUE CHAIN .. 8 MARKET SYSTEM .. 10 SLC IN CENTRAL CORRIDOR .. 11 CONSTRAINTS AND OPPORTUNITIES .. 12 production AND MARKET 12 production Constraints .. 13 Market Constraints .. 14 OPPORTUNITIES .. 15 BARIADI MODEL OF chicken REARING.

RLDC SLC Sector Development Strategy 1 POULTRY SECTOR COMMERCIALIZATION OF CHICKEN PRODUCTION AND MARKETING IN THE CENTRAL CORRIDOR Team Leader: Ibrahim Kisungwe

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1 RLDC SLC SECTOR Development Strategy 1 POULTRY SECTOR COMMERCIALIZATION OF chicken production AND MARKETING IN THE CENTRAL CORRIDOR Team Leader: Ibrahim Kisungwe Advisor: Dr Ralph Engelmann Team Members:Braison Salisali and Ajuaye Sigalla RLDC SLC SECTOR Development Strategy 2 EXECUTIVE SUMMARY .. 3 ABBREVIATIONS AND 4 INTRODUCTION .. 5 production AND MARKET ANALYSIS .. 6 NATIONAL DEMAND AND SUPPLY .. 6 POULTRY VALUE CHAIN .. 8 MARKET SYSTEM .. 10 SLC IN CENTRAL CORRIDOR .. 11 CONSTRAINTS AND OPPORTUNITIES .. 12 production AND MARKET 12 production Constraints .. 13 Market Constraints .. 14 OPPORTUNITIES .. 15 BARIADI MODEL OF chicken REARING.

2 16 DESCRIPTION OF THE ORIGINAL MODEL .. 16 LESSONS LEARNT FROM THE IMPLEMENTATION IN BARIADI .. 17 IMPROVEMENTS TO THE BARIADI MODEL .. 19 EXPECTED OUTCOMES OF THE IMPROVED BARIADI MODEL .. 21 PROPOSED STRATEGY FOR chicken SECTOR DEVELOPMENT .. 22 VISION FOR SECTOR DEVELOPMENT .. 22 PROJECT OBJECTIVES .. 23 Productivity Improvement .. 23 Market Development and Advocacy .. 24 PROPOSED INTERVENTIONS .. 24 Productivity Improvement .. 24 Market Development and Advocacy .. 30 RISK ANALYSIS .. 31 IMPLEMENTATION PARTNERS .. 32 CO-FACILITATOR AND TRAINING PROVIDERS .. 32 DEVELOPMENT PARTNERS .. 32 BIBLIOGRAPHY .. 34 ANNEXES .. 1 PROJECT BUDGET .. 1 IMPLEMENTATION SCHEDULE.

3 3 CAUSAL MODEL .. 5 List of Tables Table 1: Comparison of meat 6 Table 2: Percentage and number of households raising 11 Table 3: Estimated chicken sale and consumption in 11 Table 4: Regional focus of 22 Table 5: Diseases and drugs 26 List of Figures Figure I: POULTRY Value 7 Figure II: POULTRY Market 9 Figure III: Factors affecting chicken 13 Figure IV: chicken Productivity and Sales 14 RLDC SLC SECTOR Development Strategy 3 Executive Summary In its first phase, RLDC supported a project on Improved production and Marketing of POULTRY Products in Bupandagila and Mbiti villages in Bariadi District. The project served as a testing and demonstration by adapting the famous Bangladesh model into Tanzanian settings.

4 After successful adaptations the model has now been modified into the current Bariadi model. The SECTOR strategy proposed here is to some extent a replication strategy of the positive results of the Bariadi Model. Based on lessons learnt from Bariadi model as well as further local POULTRY SECTOR assessment, RLDC wants to now replicate the model into a wider area in the central corridor. Through this project, RLDC is envisioning at both improving local POULTRY products consumption as well as commercializing of the local POULTRY industry in the next five years. While consumption levels are already higher in the rural areas than in urban centre, RLDC anticipates that urban consumption will increase by at least 10% per annum if prices of local chicken will be closer to those of exotic breeds.

5 To achieve the above, the project at hand is planning to work into two different levels, the productivity improvement and market development and advocacy levels. Within the productivity improvement level, the following two replication interventions will be devised, 1. creation of awareness to improved commercial chicken rearing as well as raising the interest of traders and communities for replication and, 2. After awareness has been created there will be actual introduction of improved commercial local chicken rearing with a view to attain high sustainability by providing basic training on improved commercial local chicken rearing for communities. In regard with the market development and advocacy, the project is intending to carry out the following three interventions, 1.

6 Organizing workshops for traders from regional and urban traders associations 2. organizing topical workshops for traders of interested regional and urban traders associations on technical issues like improved transport, slaughtering and marketing of chickens 3. promoting establishment of a national chicken producers and traders association The project is expected to reach a total of 8,100 households in about 135 villages in 9 districts of 6 regions in the central corridor and spend a total of Tshs millions in the next 18 months. POULTRY keepers in all 135 villages will benefit from interventions during the project period, however most of the outcomes will only be realised in 2011.

7 Based on the achievements of 2010 there might be an additional funding request for extension services and market linkage at the end of the project. RLDC SLC SECTOR Development Strategy 4 Abbreviations and Acronyms BMO Business Member Organisation CRDB Cooperative and Rural Development Bank CVL Central Veterinary Laboratory DANIDA Danish International Development Agency DOC Day Old chick EC Executive Committee FAO Food and Agricultural Organisation FDG Focused Group Discussion GDP Gross Domestic Product KIPOCOSO Kisutu POULTRY Cooperative Society LGA Local Government Authority LITI Livestock Training Institute MITM Ministry of Industry Trade and Marketing MLD Ministry of Livestock Development MoU Memorandum Of Understanding NMB National Microfinance Bank RFA Radio Free Africa SACCOS Savings and Credit Cooperative Society SLC Scavenging

8 Local chicken SUA Sokoine University of Agriculture TVA Tanzania Veterinary Association TOT Training of Trainers VETA Vocational Education Training Authority VIC Veterinary Investigation Centres VSL Village Saving and Lending RLDC SLC SECTOR Development Strategy 5 Introduction It is estimated that Tanzania had about million chickens by 2008, out of which almost 95% are local chickens and the rest are exotic breeds and most of these local chickens are reared by rural households. In the central corridor it is estimated that there is about million chickens kept by 60% of the rural households (or about million households) of which the vast majority (98%) is local breeds. Most of these rural households keep local chicken for subsistence and income generation.

9 In particular, relatively poor rural households and women keep chicken as chicken rearing does not require much resources and investment and in fact the local scavenging chickens (SLC) almost take care of themselves and still provide food and limited income for the family. Because of its character as subsistence activity, keeping SLC faces a number of problems and challenges. In particular the high mortality of local chickens makes chicken rearing a risky venture that most rural households mitigate by only maintaining a relatively small stock of chicken . Based on the lessons learnt from a successful Bariadi model, which was tested in Mbiti and Bupandagila villages in Bariadi district, this paper proposes to use the experience gained to solve the above problems and challenges and replicate the strategy to the wider region of the central corridor.

10 Bariadi model has proved to be a useful tool in modernising traditional way of keeping local chickens as well as increasing income levels of village households and hence potential for the reduction of rampant poverty in the central corridor. In this paper, RLDC takes a different view and looks at the production and marketing of local chicken (kuku wa kienyeji) from a business perspective. In the first part, supply and demand of SLC is analysed as well as the current market system with its constraints and opportunities. In the second part of this document, the experiences of RLDC in Bariadi are reflected with a view to use an improved version of the so called Bariadi model for replication to about 8,100 households in the Central Corridor.


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