TANZANIA AGRICULTURE MARKET

Tanzania Agriculture Market is expected to witness a CAGR of approximately 6.1% during the forecast period, 2024-2031 primarily supported by favorable government initiatives and the growing need for food products.

Major Tanzania Agriculture Market Drivers and Emerging Trends

Tanzania agriculture market share contributes approximately thirty percent to the country’s GDP and employing about 75 percent of the workforce. Agriculture is the most significant sector of the economy which benefits from a wide-ranging production base that consists of livestock and food crops. Despite this, productivity levels are still low with only slight advancements made in the past two decades largely due to smallholder farmers who depend on rain for irrigation.

Several significant challenges confront farmers and various stakeholders as they strive to modernize the industry to boost yields and exports. The challenges include difficulties with land acquisition and smallholder farmers’ struggles to find economically feasible technology along with proper storage solutions.

To address these issues, the government is taking steps which includes providing subsidies for investors and farmers while also eliminating burdensome levies that are perceived to obstruct the sector’s growth. Additionally, the government is seeking foreign investment for its key initiative which is the Southern Agricultural Growth Corridor of Tanzania or SAGCOT that is designed to accelerate agricultural development in the country. These extensive initiatives are expected to result in increased production levels of essential crops in the years ahead which contributes to a rise in value-added processing within the sector.

In addition, collaborative research activities with local institutions contribute to developing the essential capacity needed for continuous agricultural growth. The Agriculture Ministry and the World Vegetable Center have signed an agreement to enhance development in crops production which aims to improve food security in the country. Consequently, private investments and policy efforts could stimulate market growth in the years ahead.

Another factor contributing to Tanzania agriculture market size expansion is the rising food demand which is fueled by a growing population and increasing incomes. To meet production needs farmers must increase crop output by expanding the amount of farmland or improving productivity on existing fields through fertilizers and new techniques such as precision farming.

However, several challenges such as urbanization and inadequate investment will make it difficult to produce sufficient food and might limit the agriculture in Tanzania market size expansion. Water scarcity caused by climate change along with increasing global temperatures and severe weather will also significantly impact crop yields in the long run.

According to the product type, the market is divided into Food Crops/Cereals, fruits, vegetables, and other categories with the fruit segment being the most dominant particularly with the widespread cultivation of popular fruits like bananas and watermelons. The banana sector has grown rapidly owing to exports and local consumer demand as bananas are a staple food and among the top ten important food crops in Tanzania. Corn is also the leading food crop in terms of cultivation and consumption in the country. It is famously utilized to make ugali which is a popular dish in Tanzania and many other African countries.

Segments covered in the Report:

The Tanzania Agriculture Market has been segmented on the basis of Type. Based on the Type, the market is segmented into Food crops/cereals, fruits and vegetables.

Market Segmentation

Tanzania Agriculture Market by Type

• • Food crops/cereals
  • Fruits
  • Vegetables