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Tanzania: Pigeon pea processing plant

General information
Project location: Arusha, Tanzania
Consortium: Export Trading Company
Project Budget: USD 2.1 million
External financing: USD 1.0 milllion by AECF
Project period: January 2009 - December 2010

Export Trading Company is a commodity trading and processing firm based in Tanzania. Through its extensive infrastructure of warehouses and partnerships with farmers, Export Trading Company purchases commodities at farm gate, cleans, processes, markets and mobilizes to meet the needs of the domestic and international markets. By providing a reliable outlet for their produce, Export Trading Company is instrumental in encouraging the agricultural sector in general and the farming communities in particular. Through its existing processing facilities the company is helping impart skills, transfer technology, build local capability and create avenues for local employment. Export Trading Company in Tanzania is part o a network of companies covering ten different countries in East and Southern Africa, including Kenya, Malawi, Mozambique, Sudan and Uganda. Grains, pulses, spices and agricultural inputs are the main products dealt with.

Building on its existing role and position in the supply chain as one of the main pigeon pea buyers and exporters in Tanzania, Export Trading Company will further strengthen the cooperation with smallholder growers (particularly in Northern Tanzania) and add value to pigeon peas through the establishment of a processing plant in the Arusha area. With co-financing of the Africa Enterprise Challenge Fund Export Trading Company will establish the required infrastructure for sorting, cleaning, de-hulling, oiling and packing the pigeon peas in the main production region of the country nearby Arusha. To increase the production levels improved pigeon pea cultivars will be promoted through seed supplies and agronomic support to smallholder growers in Arusha and Manyara regions.

On average the planned processing will add a net value of around USD 100 for each ton of pigeon pea exported. The additional income will be shared between smallholder growers, intermediate traders and Export Trading Company and thus will provide a clear incentive to all stakeholders to invest in further productivity improvements. In addition to 105 new jobs created at the processing plant, the project will thus also provide extra income to thousands of smallholder growers.

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