Machines & Equipments Business in Tanzania – Food Processing Machines & Equipments

Food processing and handling machineries and equipments business in Tanzania has a high potential and demand.

SUMMARY: The food processing and handling machines & equipments business in Tanzania has a high potential and demand, as the country has a large and growing population, a rich and diverse agricultural sector, and a supportive and conducive government policy and environment for the development and growth of the agro-processing industry.

Food processors in Tanzania requires machines, equipments and tools for milling, grinding, sorting, pasteurizing, homogenizing, sterilizing, canning, bottling, labeling, etc as well as spare parts for the same. They also require services such as installation, commissioning, training, maintenance and repairs.

A. Market opportunity

1. Types of food processing machines used in Tanzania

The food processing industry in Tanzania is one of the largest and most diverse sectors in the country, accounting for 24% of the manufacturing sector.

The main sub-sectors are meat processing, fish processing, fruits processing, vegetables processing, oilseeds milling, dairy processing, grains and cereals processing, bakeries, sugar manufacturing, juice manufacturing, carbonated beverages manufacturing and animal feeds production.

As a result, the country has high demand for various types of food processing machineries & equipments. Below is a list of the type of food processing machines with high demand in Tanzania.

Pasteurizers, homogenizers, separators, and sterilizers for dairy products. Tanzania imported USD3.6million worth of dairy machineries in 2022 most of which came from Turkey, India and China.
Juicers, pulpers, extractors, and concentrators for fruit and vegetable processing
Canning, bottling, and packaging machines for preserving and packaging food products
Oil expellers, filters, and refineries for vegetable oil production
Mills, sifters, mixers, and ovens for grains processing and baking
Crushers, centrifuges, and crystallizers for sugar production
Pelletizers, extruders, and mixers for animal feed production
Grinders, bowl cutters, mixers, smokers, fillers, stunners, stuffers, deboning machines, vacuum tumblers, sealers, choppers, tenderizers, dehairs for meat processing.

2. Ideal prices

The prices of food processing machines & equipments vary depending on the type, size, capacity, quality, and brand of the products. However, some general factors that affect the pricing are:

  1. The exchange rate of the Tanzanian shilling (TZS) against major currencies, such as the US dollar (USD), the euro (EUR), and the Chinese yuan (CNY). The TZS has been depreciating in recent years, making imports more expensive.
  2. The import duties and taxes imposed by the Tanzanian government on food processing machines & equipments. According to the Tanzania Revenue Authority, the applicable rates are 0% for customs import duty, 18% for value-added tax (VAT), 0% for Excise Duty, 1.5% for railway development levy (RDL) and 0.6% for Customs Processing Fee (CPF).
  3. The transportation and logistics costs involved in importing and distributing the products from the source countries to the local markets. The main source countries for food processing machineries and equipments are China, India, Germany, Italy, and Turkey.
  4. The availability and affordability of spare parts, maintenance, and after-sales services for the products. The local suppliers and distributors of food processing machines & equipments should be able to provide adequate and timely support to the customers.

Based on these factors, the ideal prices of food processing machines & equipments in Tanzania should be competitive, reasonable, and affordable for the local customers, while ensuring a fair profit margin for the suppliers and distributors.

3. Ideal distribution method

The ideal distribution method for food processing machines & equipments in Tanzania is through a network of local agents, dealers, and distributors who have established relationships with the potential customers, such as food processing companies, cooperatives, farmers, and entrepreneurs.

The local distributors should be able to:

  • Identify and assess the needs and preferences of the customers and offer them suitable products and solutions.
  • Provide technical advice, training, and demonstrations on how to use and operate the products.
  • Arrange for the delivery, installation, and commissioning of the products.
  • Provide spare parts, maintenance, and after-sales services for the products.
  • Collect feedback and suggestions from the customers and relay them to the manufacturers or suppliers.

The local distributors should also work closely with the manufacturers or suppliers of food processing machines & equipments to ensure a smooth and efficient supply chain, as well as to keep abreast of the latest trends and developments in the industry.

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