Tanzania Grains Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Tanzania grains market is expected to register a CAGR of 4.2% for the forecast period(2020-2025). Agriculture in Tanzania, the source of livelihood for the majority of the population, employing around 68% of the total employed population while contributing to 34% of total GDP. Maize and rice are the top cereals produced in the country. Pigeon peas and dry beans lead the pulses production. Groundnuts and sunflowers are the highest produced oilseeds. Cereal crops here are mainly grown for domestic consumption purposes in Tanzania. With increasing cultivation, and through the adoption of hybrid varieties and GM technologies, the country is expected to increase its share in the global grain trade in the coming years.
Key Market TrendsIncrease Demand of Animal FeedThe 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 an increasing livestock population, driving the demand from the feed industry. Commercial broiler feed-in Tanzania is very expensive and therefore it is not affordable for small-holder farmers. Maize and Protein concentrate traditionally comprise of more than 70% of farm-made diets. Increasing demand from the animal feed industry is accelerating the production of grains. This trend is expected to continue well into the forecast period and this factor is expected to drive the grains market for grains during the period.
Maize Dominates the Grain MarketAccording to FAO, Tanzania grain production was recorded as approximately 14 million, in 2018. Maize and Rice are the major grain crops grown in Tanzania with 41% and 20% of the overall grain production, respectively in 2018. The country witnessed 6 million tonnes of maize production in 2018. The main reason for such a huge conduction of maize is due to the demand from animal feed industries. Groundnut, sunflower, and barley are some other popular grains in Tanzania.
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