Tanzania - Agricultural Adjustment Program Project (Vol. 3 of 3) : Supplementary volume two - export crop marketing and inputs

17 / /L~9 /i7 - e r;,) FILE COPY TANZANIA AGRICULTURAL ADJUSTHENT PROGRAM VOLUME II EXPORT CROP MAURKETING AND INPUTS Supplement to Report No. P-5200-TA Agricultural Adjustment Program (Credit 2116-TA, Approved March 30, 1990) Southern Africa Department Agriculture Operations Division Africa Regional Office  CURRENCY AND EQUIVALENT UNITS Currency Unit - TanaanSan Shilling (TSh) Dec. 1985 US$1 - TSh 17 June 1986 US$1 - TSh 40 June 1987 US$1 - TSh 63 June 1988 US$1 - TSh 96 June 1989 US$1 - TSh 145 Feb. 1990 US$1 - TSh 193 FISCAL YEAR Government - July 1 - June 30  MAIN ACRONYMS USED IN THE TEXT AISCO Agricult.iral and Industrial Supply Company BOT Bank of Tazxanis CRDB Cooperative and Rural Development Bank CSD Child Survival and Development Program DAFCO Tanzania Dairy Farming Company Dfl Dutch Guilder ZEC European Economic Community SIB European Investment Bank ERP Economic Recovery Programme ESAP Economic and Social Action Programme FAO Food and Agriculture Organization - UN IC Industrial Company (owns and operates cotton ginneries) ICO International Coffee Organization IDA International Development Association IFAD International Fund for Agricultural Development ILO International Labor Organization IM4F International Monetary Fund IRTAC Industrial Rehabilitation and Trade Adjustment Credit (Cr. 1969-TA of November 1988) IUCN International Union for Conservation of Nature and Natural Resources LSTG Pounds Sterling MRC Multi Sector Rehabilitation Credit (Cr. 1741-TA of November 1986) NAFCO National Agriculture and Food Corporation NAPOCO Nationtl Poultry Company NARCO National Ranching Company NBC National Bank of Commerce NNC National Milling Corporation (the grain parastatal) OGL Open General License Facility PCS Primary Cooperative Society (the first-tier cooperative society, within the RCUs) PER Public Expenditure Review PFP Policy Framework Paper PSAP Priority Social Action Programme RCU Regional (or subregional) Cooperative Union (the second tier cooperative society) SAP Structural Adjustment Facility SGR Strategic Grain Reserve SIDA Swedish International Development Authority * SPPF Special Project Preparation Facility TANSEED Tanzania Seed Corporation TCOM (Cashewnut) Tanzania Cashewnat Marketing Board TCMB (Coffee) Tanzania Coffee Marketing Board TCMB (Cottoni) Tanzania Cotton Marketing Board TFA Tanganyika Farmers Association TFC Tanzania Fertilizer Corporation UNDP Uufted Nations Development Program UNFPA United Nations Fund for Population Aitivitl.es UNICEF United Nations Children's Fund  WORKING AP-ERS (in two volumes) PREFACE In order to prepare the Agricultual Adjustment Program and develop the neces- say co s for the Program among the Government, IDA and the interested donors, seer missions were caried out during 1988 and 1989. These missions involved several consultants and donor personnel, and worked closely with the then Ministres of Agricultre and Livestock Development, arid of Local Governments, Coopeatives and Marketing. These two Volumes present the main working papers produced during that preparation period. Each paper reflects the situafion and findings as of the date of their preparaton and, as such, each of them is somewhat dated. In the meanwhile, the Govemment proceeded to implement its Agricultural Adjustment Progam, and the sector situation has been significantty modified. Many of the recommendations stmming from the working papers were implemented, while others were modified or posponed. It has been considered usefil, however, to make these working papers available as they contain much of the information, data and analyses on which the policy decisions have teen adopted. Much of the information contained in the papers is not otherwise avWailable. No atempt at updating these papers has been made. They are presented here as they were when Wr contents were used to substantiate decision proposals or to recom- mend additional sudies. Updating them would have required repeiion of most of the missions caried out te, requiring an enormous amount of time and money. Most of these papers will be superseded by the completion of the Long-Term Pespective Study the Government is preparing, and by the Agricultual Sector Report which the Bank is preparng in order to support the Goverment's LTPS and to update the analytical base for its policy and lending analyses. Volume One includes papers on land resources for rainfed production, economics of agricultural production, and grain marketing in nual and urban areas. Volume Two includes papers on the marketing of major exort crops (cotton, coffee and cashewauts) and on the supply and distribution of agricultural inputs. The report of the FAO/CP agricultal review mission, issued in March 1988, and its annxes are not included.  TANZANIA AGRICULTURAL ADJUSTMENT PROGRAM Contents of the Working Papers Working Paper Title Date VOLUME I LAND RESOURCES AND GRAIN MARKETING No. 1: Land Resource Potential for Rainfed Production 08/89 of Maize, Bunded Rice and Wheat No. 2: Economics of Agricultural Production 09/88 No. 3: Marketing of Basic Food Commodities 04/88 No. 4: Cereals Marketing Policy and Food Security 05/88 No. 5: Food Crops 07187 No. 6: Open Markets for Grain in Urban Areas 10/88 VOLUME II EXPORT CROP MARKETING AND INPUTS No. 7: Appraisal of the Cotton Marketing System 07/89 No. 8: Improving Cotton Marketing 10/88 No. 9: Policy and Action Program for Cotton Marketing 05/89 No. 10: Coffee Marketing Arrangements 03/89 No. 11: Improving Coffee Production and Marketing 08/89 No. 12: Cashew 4arketing and Processing 03/89 Mo. 13: Export Marketing of Tobacco 01/89 No. 14: Supply and Distribution of Agricultural Inputs 07/88 No. 15: Input Supply and Distribution 03/89 No. 16: A Strategic Assessment of the Fertilizer 05190 Industry in the SADCC Countries  Workint Paper No. 7 TANZANIA AGRICULTURAL ADJUSThENT PROGRAM WORKING PAPER APPRAISAL OF THE COTTC N MARKETING SYSTEM Southern Africa Department Agriculture Operations Division Africa Regional Office  Workins Paper No. 7 AGRICULTURAL ADJUSTMENT PROGRAM WoRKriG PAPER APPRAISAL OF THE COTTONHARKMETING SYSTEM Table of Contents PaLe No. INTRODUCTION 1 I. THE TENDER SYSTEM 2 II. IMPLEMENTATION OF SALES 4 III. THE DOMESTIC MARKET 5 rv. QUALITY CON5ROL 8 V. PRODUCTION AND LOGISTICAL PROBLEMS 11 VI. FUTUIR EYPORT MARKETING 13 Tenders .o 99999999090009000*** ..........*...o.. 13 Auctions ............... ...............*... 14 conclusions .. . . 15 VII. FUTURE DOMESTIC IBXAETING 18 Procurement is......... ................... 18 Deliveries * 18 Quaityn ...................... ....................... is Pricing 90009099000909 90999000 19 Credit Terms . . . . ......s****vv