] MAGU AGRIBUSINESS DEVELOPMENT CENTRE LTD (ADC)]

The immediate obstacle for agribusiness growth in the Lake region is the lack of capacity in smallholder farming and supply chain management. If the supply chain were better managed and the quality of the produce ensured to be high, then small holder farmers would be in a much better position to participate in commercial activities. As such, the primary function of the centre will be to provide the following consulting related services to Magu area smallholders at agreed fee of 10% on their sales.
 Obtain and disseminate market information to farmers;
 Obtain and make available relevant policies to farmer groups;
 Facilitate relations between input suppliers, farmers and buyers;
 Research, coordinate and implement identified training programmes designed to improve production practices;
 Credit brokering and guarantee facilitation;
 Accounting & finance services for farmer groups;
 Advise farmers on group creation, formalization and management;
 Advise farmers on cross cutting issues (HIV/AIDS; environment; women etc.);
 Facilitate the use of appropriate technologies eg. tractor hiring.
Over time, as the centre develops and evolves it shall take on and offer services to farmers growing different types of crops and dealing with different agribusiness products. The centre will also expand its services into the areas of production, post-harvest handling, processing, transport and marketing. In phase I, the centre will provide consultation, management, strategy and contract services. In phase II, the centre will look to promote post harvest technology and marketing chains for domestic and export marketing. For this phase, the key market segments that the centre should operate in are: nutritious, high-end specialty foods, and organics. Production of services will be carried out by the ADC staff themselves and, by the ADC contracting-out what cannot be offered from within. For the ADC to be able to deliver the services efficientlly it will employ the following staff with the required qualifications

Business Manager: University graduate in Business in Administration/economics/Marketing.

Social Scientist: University graduate in social work related displines.

Agronomist: University graduate in agriculture science

Accountant : Degree/Diploma in accountancy

Farm Manager: Diploma in agriculture science/crop management

Initially, the centre will focus solely on individuals and groups that deal with crops that exist within the current agricultural sector. More specifically, the centre will be working with farmers on soybeans, chickpeas and cotton. In the the centre will be free to look at applying their expertise and services to different crop types, livestock, forestry and/or fisheries in the Magu area.
The ADC’s initial client base will be drawn from Tujikomboe project participants. Through a series of stakeholder engagement meetings, and workshops..
In the second phase, the centre will actively pursue clients with proposals for partnerships, and tenders. The centre will advertise itself via the internet and at trade shows in the future to seek out new client interest in its product development capabilities and supply chain management within Tanzania.

The agribusiness consulting industry in the Lake region is limited. There is one private sector agribusiness development centre that offers market information research and dissemination services (Cromabu). NGO’s and government bodies offer agribusiness services in this area as well
In the foreseeable future, the ADC will be the only agribusiness development consulting firm in the region focused on business and entrepreneurial development

The uniqueness of the ADC and its services is its ability to contribute to community economic development initiatives through innovative and market based approaches to social enterprise development for poverty reduction. The Model consolidates and links to the markets smallholders into powerful groups with big potential of poverty reduction.

I am a Certified Public Accountant holding an MBA. My dissertation was about linking smallhoders to the markets - a case study of Magu area. During my research I gathered a lot of data and experience on products and services of Magu area. Magu area is also located in the lake zone where I was born hence I know the products and people of the area.
I have created a consulting company known as Tanzania Multiconsult Company limited through-which I have acquired experience in business planning and agribusiness management. These skills and experience are relevant to the planned business.
The lesson from my business experience is the need for effective cashflow planning management and management to mitigate chances of illiquidity and the attendant business risks. Another lesson is that production should be based on clear market demand.

The economic impact of the proposed Agribusiness centre to the community is in two main areas.. First, the Centre is expected to provide direct employment to 11 people and indirect employments to many other people. Its operations are expected to boost farming activity and incomes of about 5,000 farmers in the reference area through improved agricultural production. The short-run impact will be reduced poverty leading to improved village life for the reference area. Among the long term impacts will be checking of youth exodus from rural to urban areas. Second, the operations of the proposed Centre are expected to generate various taxes to the government.

The capacity building done will improve the technical know-how of the people in the reference area. Again the impact of training in cross-cutting issues will be healthier population living in a better environment. Increased and improved food production will do away with nutrition problems.

The more organized approach to the market and application of modern farming methods including organic farming, will enable the farmers under the reference area to access sophiscated export markets like the European Community. In the long run this will have a positive impact on the country’s balance of payment.
By applying modern farming methods with its attendant efficiencies, farmers will in the long run tend to shift from subsistence activities like environmental –unfriendly ways of fishing, keeping a lot of tamed animals which are less productive but having serious impact on the environment. The long term impact is better environment.