Tanzania Block Farming
Introduction
In collaboration with our local partner, our agricultural services provider employs large-scale, modern farming and trading methods to produce and supply quality cash crops for export to the international market. We currently manage substantial orders for both local and export markets, supplying various agricultural products such as white maize, vanilla, sugar beans, soybeans, sesame, mung beans, cassava, peanuts, and avocados.
Our products are sourced from stakeholders in Tanzania, Zambia, and Malawi. Additionally, we collaborate with smallholder farms through groups known as “AMCOS,” providing them with essentials like seeds, fertilizer, reliable markets, training, and extension services to ensure their crops meet export standards. We purchase all goods produced by our smallholder farmers.
Projects for Cash Crops
We have model and large-scale out-growers farming projects located in various parts of Tanzania. We support farming activities for sugar beans, avocados, and vanilla in Ng’ara, Kagera region; maize, cassava, and African bird's eye chillies in Msata, Pwani region; and soybeans, mung beans, sesame, and chickpeas in Mpanda, Rukwa region. We also have upcoming projects for spices such as black pepper and cloves in the Tanga and Zanzibar regions.
Types of Cash Crops
We focus our intensive farming on four types of cash crops:
- Legumes (all varieties of beans)
- Vanilla
- Maize
- Fruits (avocados)
We have guaranteed export markets for beans and significant local demand for maize. Our farming operations emphasize mechanization and irrigation to increase yields. We work with agricultural experts from Tanzania, Zambia, and other parts of Africa.
Service Provided
Our local agribusiness partner provides the following services:
- Securing Crops: Offering competitive contract farming for cash crops in demand for both export and local markets.
- Cash Crop Trading: Trading various beans, vanilla, sesame, green mung beans, maize, and more.
- Youth Projects: Pioneering modern agricultural practices, including irrigation farming, for contracted clients for both local and export markets.
Project setup
Our projects primarily aim to empower youth by effectively utilizing them in producing high-demand cash crops under the close supervision of our experts. We plan to organize farming in blocks where youth will be assigned farms and supervised to ensure they cultivate 1,000 hectares of soybeans supported by irrigation.
The harvest will be sold to LongPing, Cereals and Produce Board (CPB), and other buyers, with funds raised from production belonging to the youth farmers. We will oversee project supervision, support, and market access.
We aim to involve stakeholders like investors and financial institutions to offer loans, fertilizers, machinery, and other farm implements to young farmers. Organizing and supervising farmers will streamline support to help them achieve their goals. Grouping farmers is expected to attract more interest and support from other stakeholders.
The farm will be divided into blocks of 100 acres, with each block accommodating up to 20 youth farmers. Each block will have dedicated engineers, mechanization, and irrigation systems. Accommodation for farmers and supervisors will also be provided. Blocks with the best performance in terms of harvest quality and quantity will be awarded and promoted.
Benefits
Youth:
- Training in commercial farming, impacting society with farming skills
- Reliable markets
- Organization and close supervision by experts
- Capital support for farm operations
- Irrigation-supported farms
- Farm insurance coverage
- Modern machinery like tractors and harvester
Financial Institutions:
- Large customer base of farmers
- High transaction volumes as payments to farmers will be through bank accounts
- Opportunities for further business with farmers, such as insurance
Government:
- Enhanced food security
- Youth employment
- Increased revenue from farmer harvest sales
- Capacity building for youth as crucial economic stakeholders
- Efficient utilization of government resources, especially neglected farms
- Participation in community development in villages
Invest in Us
With our local partner, we are dedicated to making farming a viable business for our stakeholders by ensuring reliable export markets and maintaining international standards for our products. We look forward to partnering with various investors and expanding commercial farming in Tanzania. Welcome to invest!
Return on Investment (ROI) for Block Farming in Tanzania.
Investing in block farming in Tanzania offers potential for significant returns, driven by the country's favourable agricultural conditions, supportive government policies, and growing demand for agricultural products.
Return on Investment (ROI) for Block Farming in Tanzania
Initial Investment
Market Access & Pricing
Initial Investment
Initial Investment:
- Costs include land acquisition or leasing, infrastructure development (irrigation, mechanization), seeds, fertilizers, labour, and technology.
- Investments in modern farming techniques and equipment can enhance productivity and efficiency, potentially increasing ROI.
Y and P
Market Access & Pricing
Initial Investment
Yield and Productivity:
- High yields can be achieved through the use of quality seeds, proper irrigation, and mechanization.
- Training and extension services for farmers can improve farming practices, leading to better crop quality and higher yields.
Market Access & Pricing
Market Access & Pricing
Market Access & Pricing
Market Access and Pricing:
- Establishing reliable market linkages and securing export contracts can ensure better prices for produce.
- Collaborations with local and international buyers, as well as participation in farmer groups like AMCOS, can enhance market access.
G P and Policies
Financial Projections
Market Access & Pricing
Government Policies and Support:
- The Tanzanian government supports agricultural development through subsidies, tax incentives, and infrastructure development, reducing operational costs for investors.
- Programs aimed at empowering youth and smallholder farmers can provide additional workforce and community support.
Risk Management
Financial Projections
Financial Projections
Risk Management:
- Diversification of crops can mitigate risks associated with market price fluctuations and climatic conditions.
- Insurance coverage for crops can protect against losses due to adverse weather or other unforeseen events.
Financial Projections
Financial Projections
Financial Projections
Financial Projections:
- Revenue: Revenue depends on the crop yield, market prices, and scale of operations. High-value crops generally offer higher revenue per hectare.
- Costs: Initial setup costs are significant, but operational costs can be optimized through economies of scale and efficient resource management.
- Profitability: Profit margins vary based on crop type, market conditions, and management efficiency. ROI can be calculated by comparing net profits to the total investment over a specific period.