New Market Report: Tanzania Agribusiness Report Q4 2013

From: Fast Market Research, Inc.
Published: Sun Nov 10 2013

We continue to favour the Tanzanian sugar and coffee industries over the medium term owing to their potential for growth on the back of strong investment in capacity. The grain industry in Tanzania will remain less competitive than other countries in the region, particularly South Africa and Zambia, and we see little potential for the country to become a major grain exporter.

Key Forecasts

* Rice production growth to 2016/17: 42.3% to 1.4mn tonnes. The rice sector will benefit from increased investment from foreign companies, which plan to cultivate rice in an effort to boost food security. New varieties also could boost yields in the medium term.
* Corn consumption growth to 2017: 30.5% to 5.4mn tonnes. A combination of enhanced yields (contributing to lower prices) and rising living standards is expected to drive corn consumption growth.
* Coffee production growth to 2016/17: 113.2% to 1.1mn 60kg bags. Although this eye-catching growth can partly be attributed to base effects, the sector is benefiting from investment in disease-resistant trees, and from incentives to small producers.
* 2013 real GDP growth: 7.2% year-on-year (y-o-y), up from 6.9% in 2012; forecast to average 7.5% over 2012-2017.
* Consumer price inflation: 8.2% average in 2013 (down from 16.1% average in 2012).
* BMI universe agribusiness market value: 5.6% y-o-y decrease to US$1.9bn in 2012/13, forecast to decrease by an annual average of 0.2% between 2011/12 and 2016/17.

Full Report Details at

Key Revisions To Forecasts

* 2013/14 corn production: revised up from 3.9mn tonnes to 4.2mn tonnes on the latest official estimates.
* 2012/13 coffee production: revised up from 918,000 bags to 1.0mn bags on the latest International Coffee Organization revisions.
* 2013/14 coffee production: revised up from 850,000 bags to 900,000 bags on strong first auctions and sharply moderating local prices.

Industry Developments

We have revised up our 2013/14 forecast for Tanzanian corn production to 4.2mn tonnes (from 4.0mn tonnes previously) as the latest official estimates show a smaller decrease in output than previously anticipated. This is because corn prices during plantings held up better than expected, encouraging production. In the coming 2014/15 season, we believe the impact of lower global corn prices will be more significant, and we expect production to fall back to 4.1mn tonnes.

About Fast Market Research

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- Australia Agribusiness Report Q4 2013
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