Tanzania is one of the three targeted countries in Africa that will benefit directly from the project. At the national level, the MWIWATA of Tanzania will be the partner farmers' organisation that will lead in implementation of plans.
In Tanzania smallholder farmers account for over 70% of crop area under cultivation and 80% of employment. 85% of the area planted is for food crops. Smallholders' farm productivity tends to be low and variable. For instance, average yield for maize obtained by smallholder farmers in Tanzania is between 1.2 to 1.5 tonnes per hectare, when some smallholder farmers have been able to achieve yields of 3.5 tonnes per hectare when they have been supported by projects and programmes.
Legislation to support a warehouse receipt system (WRS) has been developed in Tanzania and this has facilitated agricultural export of commodities such as coffee and cashew. However, the limited capacity of the Tanzania Warehouse License Board to robustly enforce the law is constraining expansion of the WRS in the grain sector.
Establishing an agricultural commodity exchange has emerged as a priority in modernising agricultural marketing and improving access to private risk management in Tanzania.
The need to improve the existing market information system (MIS) was also identified.