1. ENHANCING THE AGRICULTURAL VALUE CHAIN THROUGH INNOVATION D ISCUSSION P OINTS ON THE P APER BY D. M UGWASA ON “T HE EXPERIENCE OF W INERY I NDUSTRY IN T ANZANIA ” D ISCUSSANT : H. B OHELA L UNOGELO, P H.D A GRICULTURAL ECONOMIST AND ED-ESRF Email: Lunogelo@esrf.or.tz) The Economic and Social Research Foundation (www.ESRF.or.TZ)

2. T HE P APER HAS BROUGHT FORTH INTERESTING EXPERIENCES WORTH RECAPPING ” Five main points have come from David Mgwasa’s presentation: 1. Non-traditional crops such as grapes can have an unexpected good impact on rural livelihoods but also come with some impressive products such as bottled wine 2. Industry, as demonstrated by TDL can be as effective in reviving abandoned crops and enhancing productivity through research –extension. Yields: increased from 3 to 10t/acre 3. Innovations in packaging can stimulate local consumption of products—and transmit the gains to increased production 4. Private sector intervention, if well handled, can lead to leaps in productivity and production changes as witnessed by the doubling of TDL wine production from 411,890 litres in 2008 to 927,730 litres in 2011 5. Among the key challenges: irrigation technology May/16/2012 2 H.B.Lunogelo- ESRF (www.esrf.or.tz)

3. C REATING A CONDUCIVE ENVIRONMENT FOR AGRICULTURAL INVESTMENT Conducive environment for local and foreign investors is key to attracting investments in commercial farming and in the agro-processing industry Message 1- need to have an effective land tenure system free from conflict of interest Message 2- administrative support from local government for facilitating setting up business is important. In some instances, tax rebates might be part of the incentive packages for investors who, for example, open inaccessible areas or set up own extension or research system May/16/2012 3 H.B.Lunogelo- ESRF (www.esrf.or.tz)

4. M AIN P OLICY P OINTS P ICKED FROM THE W INERY G ROWTH E XPERIENCE IN T ANZANIA Six main policy recommendations to be taken on board by the government and the private sector in Tanzania. TEN Policy messages are built around the following: 1. Creating a conducive environment for agricultural investment 2. Research and extension linkage 3. Enabling agro-processing for value addition 4. Infrastructure as a facilitator and driver for the sector 5. Promoting the local market by consuming local wines May/16/2012 4 H.B.Lunogelo- ESRF (www.esrf.or.tz)

5. R ESEARCH AND EXTENSION LINKAGE Enhanced financing of research and establishing effective research=extension- farmer linkages Message 3: Outgrower schemes supported by agro-processors and commodity marketing agencies is key to promoting technology transfer and assuring a market for smallholder farmers Message 4: Promoting a pluralistic extension system: e,g, government secondment of extension agents with commercial producers or the later providing transport facilities and training to government extension agents May/16/2012 5 H.B.Lunogelo- ESRF (www.esrf.or.tz)

6. E NABLING AGRO - PROCESSING FOR VALUE ADDITION Agro-processing for value addition of local commodities is key to successful adoption of yield enhancing technologies and production methods including building a vibrant rural financial system. Message 5: GoT to continue refining and adopting policies and regulations that encourage agro-processing. Message 6: GoT to enhance efforts in promotion of rural financing May/16/2012 6 H.B.Lunogelo- ESRF (www.esrf.or.tz)

7. I NFRASTRUCTURE AS A FACILITATOR AND DRIVER FOR THE WINERY SECTOR Infrastructure support is necessary: electricity, water and road network is necessary for successful expansion of commercial production of commodities. Message 7: For the grape industry, there is a chance to expand the crop along newly improved transport corridors: Dodoma-Iringa; Dodoma-Babati and Dodoma-Manyoni clusters Commercial farmers to take an active role in maintaining established infrastructural facilities Message 8: PPP framework operationalised at district and village levels May/16/2012 7 H.B.Lunogelo- ESRF (www.esrf.or.tz)

8. P ROMOTING THE LOCAL MARKET BY CONSUMING LOCAL WINES Consume local products: The success and sustainability of the wine industry will to a large extent depend on how serious as Tanzanians we promote consumption of locally produced wines. Message 9: The Corporate sector, Government and Families should adopt policies that give preference to locally produced and packaged wines. Message 10: The corporate world to invest in awareness creation to urge Tanzanians to consume what is produced locally THANK YOU FOR LISTENING May/16/2012 8 H.B.Lunogelo- ESRF (www.esrf.or.tz)