By Rajabu Juma Rajabu – Art in Tanzania internship
THE SCOPE OF AGRIBUSINESS:
Agribusiness is a business sector encompassing farming and farming related commercial activities. It can be sometimes referred to as Commercial Agriculture.
Definition: Agribusiness is a combination of two broader things or words “Agriculture “and “Business” and refers to any business related to farming and farming related commercial activities. This involves all the steps required to send agricultural products or goods to the required Market, as we know agribusiness issues start primary from Production and then followed by Processing, Transportation and Distribution up to the finally step of Consumption.
Agribusiness include all activities within the agricultural food and natural resources industry involved in the production of food and fibre. Individual agribusinesses may sell items to farmers for production: provide services to other agricultural businesses: or be engaged in the Marketing, transportation, processing, and distribution of agricultural products or commodities.
DEFINIATIONS OF THE TERMS:
Agri Services – is the activities of value to the user or buyer. The activities are an intangible product.
Marketing – providing the products and services that people want, when and where they want them.
Agribusiness process inputs into outputs – An input is a resource used in production and an output is a result of the production process after processing the inputs.
Production – Is an act of making products such as goods and services.
Agribusiness provides people with food, clothing, and shelter. It also provides jobs for millions of people in science, research, engineering, education, advertisement, government agencies, trade organizations, and community organisations.
Agribusiness can be performed by both small farmers and large farmers. This is important component of the economy in the country because it contribute the huge amount to the national GDP. The agricultural sector is fundamental to the economy of developing countries especially in Tanzania.
According to the economics data included in the National Data of Tanzania Mainland of 2013-2019 by the National Bureau of Statistics at the current market price, the agriculture sector contributes 29.1 percent of the national GDP.
In November 2020, President Magufuli announced that in the next five years its government will put great emphasis on key economic sectors especially agriculture.
Agribusiness can be divided into major sectors like:
- The agribusiness INPUT SECTOR. Includes all resources involved in production or producing farm commodities. I.e., includes seeds, fertilizer, machinery, fuel, and credit. Production efficiency can also be linked to improvement in these agricultural inputs.
- The agribusiness OUTPUT SECTOR. Include any agribusiness that effects an agricultural commodities or goods between production and the consumer. I.e., include transportation, selling, storing, and inspection. Millions of people are employed in this sector of agribusiness.
- The AGRI-SERVICE SECTOR includes people who research new ways of producing and marketing of Agri-products. They protect food producers and provide specialised services to all areas of agriculture. Both public and private agencies are responsible for the actions of the Agri-services sector.
Economic Impact of the Agribusiness Industry in Tanzania
- Creation of employment opportunities both direct and indirect to agricultural activities
- Expansion of trade and Market
- Source of government earnings like taxes
- Improvement of productivity performance
- Improvement of living standards of the citizens
- Development of Industrial sectors from raw materials obtained from agriculture
- Poverty reduction.
- Construction of infrastructure like roads, industries, and schools
AGRICULTURAL EXPORT IN TANZANIA.
Agribusiness is a very wide scope that also looks into the agricultural exportation.
Agricultural export means the way a country produces agricultural products for exportation or to sell them outside the country. Tanzania is the one among many countries that engage in exportation of Agri-products to other countries. Examples of other countries are; Kenya, Uganda, Rwanda, Mozambique, Congo, Zambia, Burundi, India, United of Arab Emirates, and China.
Tanzania’s major export are of agricultural communities such as Coffee, Cotton, Tobacco, Cashewnuts, Tea, Cloves, Sisal, and Maize. Additionally, some farmers raise livestock exports including cattles, goats, sheep, pigs, and chickens as well as small numbers of turkeys, ducks, rabbits, donkeys, and horses.
Most common foods and cash crops in Tanzania are maize, cassava, sweet potatoes, bananas, sorghum, and sugar canes.
Agriculture is a source of food, industrial raw materials, and even foreign exchange earnings from the countries that Tanzania exports the agricultural products or commodities. Agriculture is a critical economic sector representing 29.1 percent of the National GDP and almost three quarters of the productive workforce and more than 30 percent of export earnings. Agricultural export have been growing at about 6 percent per year while food crops have been growing about 4 percent per year.
Importance’s of Agricultural exports in Tanzania Economy:
- Employment opportunities both direct and indirect
- Provide taxes to support government services
- Create International relationships
- Market expansions and Trade growth like forex markets
- Improve productivity for the farmers