By Rajabu Juma Rajabu – Art in Tanzania internship

Marketing and Management

THE SCOPE OF AGRIBUSINESS:

Agribusiness is a business sector that encompasses farming and related commercial activities. It is sometimes referred to as Commercial Agriculture.

Definition: Agribusiness is a combination of two broader things or words “Agriculture “and “Business” and refers to any business related to farming and farming related commercial activities. This involves all the steps required to send agricultural products or goods to the required Market, as we know agribusiness issues start primary from Production and then followed by Processing, Transportation and Distribution up to the finally step of Consumption.

Agribusiness includes all activities within the agricultural food and natural resources industry involved in the production of food and fibre. Individual agribusinesses may sell items to farmers for production, provide services to other agricultural businesses, or market, transport, process, and distribute agricultural products or commodities.

DEFINIATIONS OF THE TERMS:

Agri Services are activities that are valuable to the user or buyer. They are intangible products.

Marketing – providing the products and services people want, when and where they want them.

Agribusiness processes input into outputs. An input is a resource used in production, and an output is the result of the production process after processing the inputs.

Production – Is an act of making products such as goods and services.

Agribusiness provides people with food, clothing, and shelter. It also creates millions of jobs in science, research, engineering, education, advertisement, government agencies, trade organizations, and community organisations.

Agribusiness can be performed by both small and large farmers. It is an important component of the country’s economy because it contributes a huge amount to the national GDP. The agricultural sector is fundamental to the economies of developing countries, especially in Tanzania.

According to the economics data in the National Data of Tanzania Mainland of 2013-2019 by the National Bureau of Statistics at the current market price, the agriculture sector contributes 29.1 per cent of the national GDP.

In November 2020, President Magufuli announced that its government will emphasise key economic sectors, especially agriculture, in the next five years.

Agribusiness sectors

Agribusiness can be divided into significant sectors like:

  1. The agribusiness INPUT SECTOR. This includes all resources involved in the production or production of farm commodities. I.e., includes seeds, fertilizer, machinery, fuel, and credit. Production efficiency can also be linked to improvement in these agricultural inputs.
  2. The agribusiness OUTPUT SECTOR includes any agribusiness that affects agricultural commodities or goods between production and the consumer. This includes transportation, selling, storing, and inspection. Millions of people are employed in this sector of agribusiness.
  3. The AGRI-SERVICE SECTOR includes people researching new ways of producing and marketing Agri-products. They protect food producers and provide specialised services to all areas of agriculture. Both public and private agencies are responsible for the actions of the Agri-services sector.

Economic Impact of the Agribusiness Industry in Tanzania

  • Creation of employment opportunities, both direct and indirect to agricultural activities
  • Expansion of trade and Market
  • Source of government earnings like taxes
  • Improvement of productivity performance
  • Improvement of living standards of the citizens
  • Development of Industrial sectors from raw materials obtained from agriculture
  • Poverty reduction.
  • Construction of infrastructure like roads, industries, and schools

AGRICULTURAL EXPORT IN TANZANIA.

Agribusiness is a vast scope that also looks into agricultural exportation.

Agricultural export means producing agrarian products for exportation or sale outside the country. Tanzania is one among many countries that export agricultural products to other countries. Examples of other countries are Kenya, Uganda, Rwanda, Mozambique, Congo, Zambia, Burundi, India, the United Arab Emirates, and China.

Tanzania’s major exports is of agricultural communities such as Coffee, Cotton, Tobacco, Cashewnuts, Tea, Cloves, Sisal, and Maize. Additionally, some farmers raise livestock exports, including cattle, goats, sheep, pigs, chickens, and small numbers of turkeys, ducks, rabbits, donkeys, and horses.

The most common foods and cash crops in Tanzania are maize, cassava, sweet potatoes, bananas, sorghum, and sugar cane.

Agriculture is a source of food, industrial raw materials, and even foreign exchange earnings from the countries where Tanzania exports agricultural products or commodities. Agriculture is a critical economic sector representing 29.1 percent of the National GDP, almost three-quarters of the productive workforce and more than 30 percent of export earnings. Agricultural exports have been growing at about 6 per cent per year, while food crops have grown at about 4 per cent yearly.

Importance’s of Agricultural exports in Tanzania Economy:

  • Employment opportunities, both direct and indirect
  • Provide taxes to support government services
  • Create International relationships
  • Market expansions and Trade growth, like forex markets
  • Improve productivity for the farmers

Similar Posts