Tanzania Grains Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Tanzania Grains Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Tanzanian grains market is expected to register a CAGR of 4.8% over the forecast period 2022-2027. The movement restrictions as part of the country’s control measures to combat the COVID-19 pandemic had implications on food security, as restrictions in movement coincided with planting periods for most of the staple crops, including maize, rice, and other grain crops. These measures are still affecting important staple crops in the region and are likely to exacerbate food security challenges. Achieving adequate food supply in the region requires developing better policies and packages to confront the challenge of reducing hunger post-COVID-19 pandemic. Planning after the COVID-19 pandemic will be very important as the administration seeks to rethink its strategies and policies for sustainable economic growth, as the pandemic had many significant impacts on the agriculture sector.

Agriculture in Tanzania is the source of livelihood for a majority of the population, employing around 68% of the total employed population while contributing 34% of the 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 are mainly grown for domestic consumption purposes in Tanzania. With increasing cultivation and the adoption of hybrid varieties and GM technologies, the country is expected to increase its share in the global grain trade over the coming years.

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 an increasing livestock population, which is driving demand for the feed industry. Commercial broiler feed-in Tanzania is very expensive and not affordable for small-holder farmers. Maize and protein concentrate traditionally comprise 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 drive the grains market.

According to FAO, Tanzanian grain production was recorded as approximately 15 million in 2020. Maize and rice are the major grain crops grown in Tanzania and accounted for 44% and 29.7%, respectively, of the overall grain production in 2020. The country witnessed 6.7 million ton of maize production in 2020. The main reason for such huge cultivation of maize is the demand from animal feed industries. Groundnut, sunflower, and barley are some other popular grains in Tanzania.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support