Tanzania’s meat processing industry is growing steadily, driven by a growing population, increased urbanization, and rising incomes. Most of the meat consumed in Tanzania passes through the following value chain.
From livestock owners to livestock agents, then to livestock transporters, and subsequently to abattoirs, meat vans, butchers, and finally to the end consumer, it becomes evident that most of the meat consumed in Tanzania does not undergo advanced processing such as mincing, grinding, sausage making, or bacon production.
I: Introduction
Is meat processing a good business to pursue in Tanzania
o begin with, is meat processing a good business to pursue in Tanzania? The short answer is yes. However, for a more comprehensive understanding, let’s delve into the details. The growing consumption of meat in Tanzania presents an excellent opportunity for entrepreneurs to venture into the meat processing business. If you’re considering starting such a business in Tanzania, this guide will equip you with valuable insights and actionable steps to set you on the path to success.
Meat Products Supply Chain in Tanzania
The value chain of the red meat industry in Tanzania involves various stages such as livestock farming (involving sheep, goats, and cattle), transportation, animal slaughtering and butchering, meat transportation, meat product processing, and the creation of by-products for both local consumption and international export. It is estimated that approximately one-third of the population is directly or indirectly involved in different aspects of red meat production and distribution. This includes diverse range of roles, from livestock owners, market intermediaries, traders, animal transporters, inspectors, butchers, processors, researchers, extension workers, wage labourers, exporters, importers, meat vendors, eateries, restaurants and supermarkets.
Importance of meat processing to the Tanzanian economy
Below are some key points highlighting the importance of meat processing in Tanzania:
- Contribution to GDP: The livestock sector, including meat processing, contributes substantially to Tanzania’s GDP. In 2019, the livestock sector contributed approximately 7% to the country’s GDP, according to the National Bureau of Statistics.
- Employment: Meat processing is a labor-intensive industry, and it provides employment opportunities to a significant portion of the population. In 2020, the Tanzanian livestock sector provided livelihoods to about 2.4 million people, according to the Food and Agriculture Organization (FAO).
- Livestock Population: Tanzania boasts a substantial livestock population, making it a key player in the meat processing industry. As of 2020, the livestock population in Tanzania included approximately 25 million cattle, 24 million goats, and 6 million sheep, according to the FAO.
- Export Potential: Meat and meat products represent a potential source of export revenue for Tanzania. The country has the capacity to export meat to neighboring countries, such as Kenya, and further processing of meat products can open up opportunities for export to international markets.
- Rural Livelihoods: Meat processing and related activities often occur in rural areas, where the livestock is primarily raised. This helps support rural livelihoods and can contribute to poverty reduction.
- Food Security: Meat processing is essential for preserving and adding value to meat products, which can be stored and transported more easily, contributing to food security within the country.
- Value Addition: Meat processing allows for the production of a variety of products, including sausages, canned meats, and other value-added products. This adds value to the meat and creates more diverse market opportunities.
Meat Production and Consumption in Tanzania
II. Meat Processing Regulatory Environment
Overview of regulatory bodies and their functions
Here’s an overview of some of the key regulatory bodies and their functions in the Tanzanian meat sector:
- Ministry of Livestock and Fisheries Development (MLFD):
- Function: The MLFD is the principal government ministry responsible for the overall development and regulation of the livestock and fisheries sectors in Tanzania. It formulates policies, strategies, and regulations to guide the entire sector.
- Tanzania Meat Board (TMB):
- Function: TMB is responsible for the development and promotion of the meat industry in Tanzania. It regulates and oversees various aspects of the meat sector, including meat processing, marketing, and quality control.
- Tanzania Bureau of Standards (TBS):
- Function: TBS is responsible for developing and maintaining standards for various products, including meat and meat products. It ensures that meat products meet specified quality and safety standards.
- Tanzania Veterinary Laboratory Agency (TVLA):
- Function: TVLA provides diagnostic and laboratory services related to animal health and disease control. It plays a crucial role in ensuring the health of animals and, by extension, the safety of meat and meat products.
- Livestock Training Agency (LITA):
- Function: LITA is responsible for providing training and education to individuals involved in the livestock sector, including meat processing. It helps improve the skills and knowledge of workers in the meat industry.
- Local Government Authorities (LGAs):
- Function: LGAs at the district and municipal levels play a role in regulating and supervising meat-related activities within their jurisdictions. This includes meat inspection, abattoir management, and licensing.
Regulations on meat processing in Tanzania
Compliance requirements for meat processing businesses
Importance of adhering to regulations
III. Registering a Meat Processing Business in Tanzania
Steps to register a meat processing business in Tanzania
Required documents and fees
Timelines for registration
IV. Best Locations to Locate a Meat Processing Factory
Overview of the best locations to set up a meat processing factory in Tanzania
Factors to consider when selecting a location
Availability of infrastructure
V. Potential Domestic Market
Overview of the domestic market for meat products in Tanzania
Demand for meat products
Pricing and marketing strategies
VI. Potential Export Market
Overview of the export market for meat products in Tanzania
Popular export destinations
Export regulations and compliance requirements
VII. Exporting Meat Products from Tanzania
Steps to export meat products from Tanzania
Export documentation and fees
Transportation options
VIII. Availability of Skilled Labor to Work in Meat Factory
Overview of the availability of skilled labor in Tanzania
Training and capacity building opportunities
Strategies to attract and retain skilled labor
IX. Availability of Domestic Finance from Banks
Overview of the financing options available to meat processing businesses in Tanzania
Requirements and eligibility criteria
Interest rates and repayment terms
X. Immigration Laws for Foreign Investors
Overview of the immigration laws for foreign investors in Tanzania
Visa requirements
Work permits and residency permits
XI. Conclusion
Summary of the key points covered in the article
Future prospects for the meat processing business in Tanzania
Recommendations for prospective meat processing investors.
Kessy Juma is the founder of Miamia Trading Company (miamiatz). He is a Techpreneur with roots in accountancy. He believes that any business is good as long it caters the right market using the right strategy. |