Business

Villagers to earn over 110m/- on barley sales

TANZANIA Breweries Limited (TBL) is expected to purchase 150 tonnes of barley worth over 110m/- compared to 180 tonnes supplied during the 2010 and 2011 seasons by farmers in ‘Kambi ya Simba’ village in Karatu District, Manyara Region. 

TBL’s Agricultural Project Manager Bennie Basson said in Dar es Salaam that the cultivation and export of barley that began two years ago has earned farmers over 85m/-.  “This year we expect to buy 150 tonnes of barley worth 110m/- from farmers and the figure is expected to rise,” Dr Basson said.  

TBL entered into a formal contract farming scheme with farmers in Karatu District at “Kambi ya Simba” village in 2010. The contract is different from other agreements, which the company had signed with other barley growers. The agreement was signed between TBL and the leadership of “Kambi ya Simba” Village, where the village agreed to use 200 acres of its farm for the cultivation of barley that would be purchased by the brewery.   

Dr Basson said that the company had gone through all procedures concerning the provision of the village land for commercial farming.   For many years, farmers in ‘Kambi ya Simba” village have been using one tractor owned by a village and hoes for their farming activities.

While this is the first contract farming venture for TBL, it already has a two-year-old collaborative farming project in “Kambi ya Simba’ village, where it provides farmers with seeds and other inputs.  “We give them a slightly better price than the market and they are more inclined to sell to us,” he added. Tanzanian traders export barley to other countries at huge premiums because of a global shortage.

This has disrupted expansion plans of local breweries.  The village Chairman, Mr Damian Anatoli, explained that each year the village council submits recommendations to the village assembly to approve crops to grow. The village owns one tractor, one plough, one hoe pulled by oxen, one harrow and a trailer, he said. 

He noted that the village faces many challenges, including shortage of agricultural inputs, hence they plant barley by hand and during the harvest season they rent barley harvesting machine.  Kambi ya Simba Village is located approximately seven kilometres Eastern district of Karatu. It has a population of 6,644 people.