Business Case for Common Beans in Tanzania

Kilimokwanza.org Team

Common beans are fundamental to Tanzania’s agricultural landscape, contributing immensely to food security, nutrition, and economic stability for approximately 5.8 million rural households. As Africa’s top producer and the seventh globally, Tanzania harvests 1.2 million tons of beans annually. The demand for these beans encompasses both local consumption and regional exports, substantially boosting income and trade. Through targeted measures such as reducing post-harvest losses, enhancing productivity, and strengthening market access, Tanzania’s bean sector holds the potential for even greater economic and nutritional impacts.

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Key Financial Figures

Production and Consumption

• Annual Production: Tanzania produces about 1.2 million metric tons of common beans annually, establishing itself as Africa’s leading producer and ranking seventh worldwide (Common Bean Observatory).
• Domestic Consumption: Nearly 6 million Tanzanian households consume beans, with a per capita intake estimated at 19.3 kilograms annually (Common Bean Observatory).

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Economic Impact

• Export Revenue: Around 48% of Tanzania’s bean output is exported, generating substantial revenue. Notably, the trade potential for Tanzania’s yellow bean corridor alone is valued at over USD 200 million annually from 200,000 metric tons of yellow beans (Common Bean Observatory).
• Post-Harvest Losses: Post-harvest losses stand at 19.5%, with the most substantial losses occurring during storage (4.7%) and harvesting (4.4%). Addressing these losses could enhance availability for both domestic consumption and export, thereby increasing revenue (Common Bean Observatory).

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Market Prices

• Domestic Prices: In October 2024, the domestic price for dried common beans in Tanzania was reported at USD 1.19 per kilogram (Tridge).
• Global Prices: Global prices for beans vary by type and quality. For instance, Judia Helda beans in Spain were priced at USD 3.33 per kilogram as of October 2024 (Tridge).

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1. Market Potential

Global and Regional Demand:
Tanzania exports nearly half of its bean production to neighboring countries, with export volumes growing by 10% annually. Major importers include East African countries like Kenya, Uganda, and Rwanda. The yellow bean corridor alone has a trade potential exceeding USD 200 million annually from 200,000 MT.

Growing Domestic Consumption:
Beans are a staple for almost 6 million Tanzanian households, with per capita consumption averaging 19.3 kg per year. As the population is projected to grow from 62 million in 2022 to 80 million by 2030, the domestic market will likely expand.

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2. Economic Impact

Income for Smallholder Farmers:
Common beans provide a vital income source, particularly for rural households. Initiatives by PABRA and TARI have introduced high-yielding, resilient bean varieties, improving farmer productivity and profitability.

Job Creation and Value Addition:
Bean cultivation and value-added processing (such as bean-based snacks and porridge) create job opportunities, especially for women and youth. Between 2015 and 2021, the number of certified seed companies rose from zero to 15, thanks to PABRA’s support, and seed production increased fivefold, benefitting 2.3 million farmers.

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3. Key Challenges

Post-Harvest Loss (PHL):
PHL is high at 19.5%, with losses mainly occurring during storage (4.7%) and harvesting (4.4%). Only 7% of beans are stored in hermetic bags, leaving 93% vulnerable to pests. Enhancing storage practices could significantly reduce losses, increasing supply and farmer incomes.

Yield Limitations and Gender Inequality:
Average yields are 0.5 tons/ha, with variations such as 0.9 tons/ha in Mbeya Rural and 0.2 tons/ha in Rungwe. While beans are traditionally managed by women, only 15% of bean farmers in surveyed areas are women, highlighting a need for increased female participation.

Transportation and Processing:
Approximately 69% of beans are transported by motorcycles, leading to higher losses due to spillage and rough handling. Improved transport logistics and protective bags can enhance product quality and reduce losses.

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4. Opportunities for Growth

Technology and Mechanization Adoption:
The Feed the Future Tanzania Tuhifadhi Chakula project, funded by USAID, and other initiatives by SAGCOT and TAHA promote technologies that reduce PHL. Mechanization in harvesting and processing can improve efficiency and minimize losses.

Improving Seed Systems:
Seed companies and Quality Declared Seed (QDS) producers have significantly expanded, producing over 2,500 tons of certified seeds between 2015 and 2021. New high-yielding, pest-resistant varieties support farmers in achieving better productivity.

Enhanced Market Access through Bean Business Platforms:
PABRA’s bean corridor model connects value chain actors, enabling farmers, aggregators, and exporters to expand market reach and improve price negotiation, ensuring Tanzania’s growing role as a regional supplier.

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5. Strategic Recommendations

1. Invest in Post-Harvest Solutions: Expand hermetic storage options and educate farmers on best practices. Scaling SAGCOT’s initiatives with USAID is essential to reach more farmers.
2. Increase Women’s Participation in Bean Farming: Providing support and incentives for women to participate in bean production can improve productivity and diversify rural incomes.
3. Expand Export Markets and Diversify Products: Leverage PABRA’s platforms to explore new markets and value-added products, increasing export volumes and revenue.
4. Promote Mechanization and Sustainable Practices: Increased mechanization in planting, harvesting, and processing can boost productivity and reduce losses from manual labor.
5. Support Seed Quality and Distribution: Continue partnerships with seed companies to expand access to improved seed varieties for smallholder farmers.

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Conclusion

By addressing these challenges and capitalizing on growth opportunities, Tanzania’s common bean sector can further strengthen the nation’s economy, food security, and rural income generation. Continued support from partnerships with PABRA, SAGCOT, and other stakeholders will be vital in driving sustainable growth and ensuring long-term success for Tanzania’s bean industry.

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References

1. SAGCOT. (2024). Identification of Post-Harvest Loss Technologies and Adoption Barriers in Maize, Rice, and Common Beans Value Chains.
2. Pan-Africa Bean Research Alliance (PABRA). (2015-2021). Annual Reports and Initiatives on Bean Production and Marketing.
3. Feed the Future Tanzania Tuhifadhi Chakula Project, USAID. (Ongoing). Efforts to Reduce Post-Harvest Loss in Tanzania.
4. Bashe, H. M., Minister of Agriculture, Tanzania. (2022). Speech at the AGRF Pre-Summit Side Event on the Celebration of 25 Years of the Pan Africa Bean Research Alliance.
5. Tanzania Agricultural Research Institute (TARI) & PABRA. (2018-2021). High-Yielding and Climate-Smart Bean Varieties for Tanzania.
6. Alliance of Bioversity International and CIAT & PABRA. (2018-2021). Bean Business Platforms and Value Chain Development.
7. FAO. (Various Years). Agricultural Data and Statistics for Tanzania.
8. African Development Bank (AfDB). Technologies for African Agricultural Transformation (TAAT) Programs.
9. World Vision International, HarvestPlus, and Global Alliance for Improved Nutrition. Biofortified Bean Varieties for School Feeding Programs.
10. National Bureau of Statistics, Tanzania. (Various Years). Population Growth and Agricultural Sector Data.
11. Pan-Africa Bean Research Alliance (PABRA). The Bean Corridor Model and Market Linkages in Tanzania.
12. Bill & Melinda Gates Foundation (BMGF), Global Affairs Canada (GAC), and Swiss Development Cooperation (SDC). Funding Partnerships in Agricultural Development for Tanzania.