E-Malt.com News article: Tanzania: Tanzania Breweries Limited to purchase 4,000 tonnes of malting barley from local farmers next year

A least 570 small scale farmers engaged in malting barley production in the Southern Highlands have signed a contract with Tanzania Breweries Limited to produce and supply the crop to the brewing firm, The Guardian reported on December, 14.

“This is a new strategy designed to support smallholder producers to access reliable market for their produce, improve their livelihoods and at the same time assist both parties to increase their incomes,” Cleopa Msuya, the TBL board chairman, said.

The agreement on integration of small scale farmers into modern malting barley value chain was signed by TBL managing director Robin Goetzsche for the company and Khalidi Kasanga, a farmer in Njombe District for the farmers.

In the course of implementation, farmers will obtain extension officers who will train them how to farm the crop, advise them on agricultural inputs and loan facilities.

Stanbic Bank has agreed to provide loan facilities to organised groups or cooperative unions to enable the farmers meet their intended goals, Msuya said.

“TBL needs a total of 50,000 tonnes of malting barley for beer production in its firms located in Dar es Salaam, Mbeya, Arusha and Mwanza regions,” he said.

He implored on the farmers to use the initiatives to produce more malting barley saying TBL will guarantee them access to loan facilities from the bank and at the same time purchase their produce.

On the other hand, extension officers from Agriculture, Food Security and Cooperatives ministry including those from local government councils will continue to improve their skills in order to raise the quality of barley production to meet TBL’s requirements.

According to Msuya, this is an agreement which was reached by the organised groups of smallholder farmers in the Southern Highlands who will produce and supply approximately 4,000 tonnes of malting barley to TBL starting next year.

“We request Stanbic Bank to issue loans to us as soon as possible so that we can help raise malting barley production,” he said.

Speaking on farmers involved in the project, he said currently the groupings own 3917 hectares of land intended for malting barley production.

“Currently poor technology, lack of capital and poor skills on such farming as well as transport facilities are the major impediments facing the farmers,” he said.

Meanwhile, TBL's Managing Director Robin Goetzsche added that this is a new strategy designed to support the farmers to get reliable market for their produce.

“Producing high quality produce, will prevent us to import barley from overseas and use our funds to purchase your cash crops,” he said.

“Tanzania Breweries Limited is in the forefront to support this initiative by way of working with small scale farmers to produce malting barley and guarantee them a reliable market,” he concluded.


17 December, 2010