CLUSTER DEVELOPMENT- DODOMA

ANNUAL PROGRESS REPORT-2015

 

1.0 Introduction

This year has been a season of selection and trying different ways towards achieving LIC desired objective which is improved business environment. Very different means for selection were employed to come up with the right prioritization of value chains and eventually right clusters to support. Some of them were; value chain studies, meetings and workshops, secondary data and local authorities’ declarations. The outcome of these methods cluster support was directed towards Sunflower, horticulture (Irrigated horticulture and mushroom projects), livestock (Chicken, skins and hides, cattle), grapes and onions. Some of the selected and supported clusters or clusters in creation (Pull factor) are mushroom, irrigated horticulture, Dodoma sunflower oil and onions. In the coming year LIC is looking for possibilities to support in livestock, grapes, improvement of mango fruits and products, sugar cane and waste management. Of most important among these is management of water, input supply and advancement of technology. 

 

There has been some improvement in the areas supported as described fully in the report. In a nutshell; We have managed to produce Cluster development guideline and of course the Dodoma sunflower cluster, there has been some improved water management through drip irrigation system which has increased production of vegetables profoundly, CEZOSOPA laboratory furnishing is one of the outstanding endeavor in the sunflower sector, collection of processors information has improved information in the sector as well as other like-minded stakeholders and of cause streamlined ways to supporting the sector, development, eventual launch and support of the Dodoma sunflower oil cluster and of cause scrutinizing a number of  SIFF/cluster concept notes has helped streamlined our thinking towards what to support and what not.

 

 

2.0 Implementation Progress 

 

This section offers description over actual physical achievement as well as a light to implemented activities that were not planned for.  A section of expenditure against annual work plan budget will be highlighted in the financial part.

The table below gives a summary of planned activities and their status of implementation.

 

 

 


A summary report of activities implementation 2015

 

Sn

Activity

Status of implementation

Remarks/Challenges

3.1.1

To conduct detailed study for selected value chains (at least 2 VCs)

Conducted Sunflower and Onion VC's

Authentication of secondary data was challenging and therefore triangulation through feedback meetings were necessary

I

To prepare cluster development plan

Prepared, printed and distributed

 

II

To support clusters development

Irrigated horticulture, mushroom, Dodoma sunflower Oil clusters have been supported. Initial discussions with onion vc, grapes vc and wate management cluster has been taking place.

 

There have been efforts to engage interested parties in the irrigated vegetable production but the challenge has been access to irrigation. We have identified some areas where they can now tap and use rain water at the natural dams.

 

There have been at least 20 meetings for vision building with the sunflower cluster members to arrive to the Dodoma Sunflower Oil cluster. During the meetings there were awareness creation and building up strategic plan for the cluster as whole and later each unit.

 

We have had several discussions with PASS and the Mpwapwa district council which resulted into the study for onion market in Mpwapwa, provision of village land tittles to almost 200 onion farmers at Lumuma valley and plan is to have a business plan with PASS for further support.

 

In Dodoma Urban, actors in the waste management in urban have been fully engaged in the understanding of the present situation and come up with the proposal of what can be done. The first draft report of the situation from the team and they are working on LIC comments.

 

Diseases and avaialability of water in irrigated project was challenging.

 

Actualization of full working mushroom lab for spawn production has been slow.

 

Bringing together stakeholders for sunflower cluster has been very involving. There were an association which linked them but this was not clustering. Clustering necessitated commitment from some processors to forgo their crushing roles and assume other roles in the cluster such as stocking alone.

3.1.2

To support training of actors in the selected value chains

This has been rescheduled to next year

This process depended on the previous which took longer than expected to bring stakeholders together

3.1.3

To prepare and distribute learning material that address weaknesses on selected value chain

This has been rescheduled to next year

Just as above mentioned

3.1.4

To prepare existing farm maps based on baseline data

This has been rescheduled to next year

Just as above mentioned

3.1.5

To use handheld GPS to mapping farmers farms and enter into DBDBD for the preparation of farm map for issuing of (CCRO) and for soil test

This has been rescheduled to next year

Just as above mentioned


2.1 Physical achievement

 

2.1.1 To conduct detailed study for selected value chains (at least 2 VCs)

It was planned to conduct detailed study for at least two selected value chains in Dodoma. Through the sub-component document as well as stakeholders meetings, a number of potential value chains to support through cluster support were identified and selected. Sunflower ranked first and others were grapes, livestock (chicken, cattle (hides and skin, beef), horticulture, groundnuts and onions. Detailed value chain analyses were subsequently conducted within sunflower and onion to verify productivity, market potentials and clustering opportunities therein. The sunflower value chain analysis was carried in Dodoma urban and Kongwa districts as well as districts of Kigoma region while onion only covered Mpwapwa district of Dodoma region. The outcome of the these reports is the decision of LIC to support Central Zone Sunflower Processors Association (CEZOSOPA), an association which of sunflower oil processors in the central corridor meant to make them work together; on upgrading first membership status, its laboratory for oil testing so as to improve oil quality to adhere to TBS standards as well as clustering Dodoma sunflower oil cluster through improvement of input supply (availability of proper seeds), improving post harvest handling (storage facilities) and improving the quality of oil through improvement of technology (Crushing technology and oil TBS and TFDA standards).

 

LIC supported CEZOSOPA to upgrade its membership status along side with the aim of increasing membership base. LIC supported a survey of CEZOSOPA members and in due course met non members/potential members to the association. This was done and much awareness was raised to non-members and ceased members started remitting their contributions to CEZOSOPA since non members got to understand the benefits of fighting together in the association as well as clustering approach benefits. This in a way gave way to understanding the operational level of our beneficiaries which mostly are middle and small scale enterprises who contribute significantly to oil production in the country. At least 10,000 metric tons of sunflower kernels are produced from Dodoma and Kongwa districts alone while Tanzania is producing up to 1.8 MT of sunflower kernels a year.

 

Some of the CEZOSOPA laboratory equipments have been purchased and stored safely at the Laboratory designated place, SIDO building. The second and third installment will be used to finalize all required equipments. This laboratory will be the only food testing lab with such a capacity in the central corridor of Tanzania and therefore will change significantly the quality of all foodstuffs entering the market but will also increase the ability of CEZOSOPA serve its members.

 

IMG_4731Dodoma sunflower oil cluster was launched in 11th, November 2015 by Hon. Chiku Galawa, the Dodoma Regional Commissioner. Although the process took long time to actualize but it was a great success to have all members in one forum claiming the same vision, Sundom refined sunflower oil by September 2016 produced through cluster initiative. Sunflower oil cluster is made up of cluster units divided by their functions in the cluster such as stocking unit, crushing unit, refinery unit, marketing and packaging unit. There are a number of cluster units which some will receive direct cluster support (those which are non SIFF related) while others will either SIFF/PASS support (such as storage facilities). LIC has supported to purchase record sunflower seeds from ASA to be supplied on subsidy arrangement. While the stockiest cluster unit will oversee supply of seeds and return of 65% of the price for LIC re-use into other cluster activities, the Chamwino district council on its part will provide technical advice to the Zajilwa village producers who have a contract with Dodoma Sunflower Oil Cluster stockiest unit members to sells back seeds to them. This arrangement will ensure enough supply of sunflower grains to the SunDom a new sunflower envisioned refined sunflower oil to be produced through clustering approach.

 

 

 

2.2.2 Cluster development plan

 

A cluster development plan was prepared jointly by the two cluster advisors receiving useful inputs both from rest of the LIC team as well as from other stakeholders such as the ministry of science and technology (COSTECH) and TPSF. The plan was later agreed to be called guideline. Initiative is taken to make the guideline, useful at the national level and COSTECH have volunteered to take a lead as this is its mandate to revise it to fit to the national demand and later be used as such.

 

 

 

2.2.3 To support clusters development

The initial cluster approach was support the clusters identified from the two value chain studies and, in addition, the already identified clusters through concept note received by the SIFF. Out of this endeavor, the Dodoma sunflower Cluster came into being alongside the support rendered to mushroom and irrigated horticulture projects as cluster pull factors.

 

The Dodoma Sunflower Oil cluster has just received support to purchase 7500 kg of sunflower seeds from ASA. The seeds will be provided to farmers at Zajilwa village in Chamwino district under a contractual arrangement to solely sell back to the stockiest members of the cluster. The Chamwino district will provide technical support to make sure that best agronomic practice is adhered to. Other areas of support such as ware house, funds for purchasing seeds, marketing support, improvement of crushing and refinery machines and of the like are still under negotiation with the cluster leadership. Cluster development support has taken longer period than expected since there has been a number of team building meetings ( At least two each month including their own discussions) with actors in the value chain to make sure that they all see the same objective. November was the launch of the cluster while communications started early March 2015.

 

The Mushroom cluster was initiated with a pull factor, a producer of spawn and with technical knowledge of production. Bwahama enterprise was supported to improve the laboratory to be used to produce and supply spawns which otherwise would be sought from Morogoro or Iringa. Transporting spawn from this far has always created problems of less germination and so the need for lab would be unavoidable for success of mushroom production in Dodoma.  Refurbishment of the old mushroom house and construction of a new one was successfully done to enable the increase area of production which will be used for practical training. Other mushroom producers will access training with a small fee from this place. Unfortunately we have noted that since the owner does not fully depend on mushroom, there has been little investment in terms of time and therefore slow pace of implementation has been noted. To date, there is little improvement in the production where we supported construction and refurbishment of the mushrooms and even spawn has not been able to mature to its last stage the reason being power cuts. Nevertheless we still hope that this second attempt will yield better results by the end of February. We are in discussion with the owner for LIC to task another mushroom producer who is a beneficiary of the spawn to be produced to be engaged in the production of spawn first to tap the knowledge but second to make sure that the lab has produced desired results.

 

Within Irrigated horticulture, a pull factor approach is tested and LIC supports Mercy Agrobusiness with drip irrigation, water storage facility, solar power generation to run irrigation, and a cooling facility to increase shelf life of vegetables. There have been remarkable changes in terms of production as a result of drip irrigation combined with the linkage created to input suppliers, such as Syngenta, a private company. Production has gone up from 200 kg of tomatoes per week to at least 2000kg. We are still pursuing possibility of installing solar power generation since the previous dealer could not manage.

 

Many farmers in Dodoma, including this farm were invaded by a deadly disease commonly known as “kantangaze”. Mercy Agrobusiness lost about 5 tons of tomatoes in a month period. But the owner has managed to averse the disease through technical advice from Syngenta. In this coming year the plan is to upgrade into processing of tomatoes to reduce post harvest loss which is common in vegetables as well as increase shelf life of the products to be able to reach regional markets in the future.

 

LIC has decided to use Mercy Agrobusiness in a pull factor approach where the success of one business (experience and best practices) and the links created to other cluster actors (support institutions, schools etc) attract other likeminded businesses (farmers) to create an interest in being part of a cluster by showing clear and up front benefits from participating. This approach will be compared with the approach where cluster in their entirety are supported from the outset, but where it has proved difficult to attract members and get them to work constructively together. In the coming year, efforts will be made to attract other similar business and test the approach.

 

The support for an onion cluster in Mpwapwa is also underway. There has been a series of meetings between the three partners, LIC, PASS and the Mpwapwa district council (MDC). A detailed study was a result of these meetings. LIC was mandated to undertake a through market study while PASS will do feasibility and business plan and MDC undertake improvement of land owenership aas well as clustering support. Civil land tittles have been issued, LIC has undertaken the study, results have been shared and prioritisation has been made. PASS is now to undertake another feasibility study and or business plan for CRDB to finance the project.

 

I have been focal in shaping up and eventual preparation of most SIFF projects. Most of the SIFF concept notes have emerged from meetings with stakeholders and found myself more and more engaged in providing technical support, reviews and eventual involved in the development of their contractual documentations with LIC.

 

3.0 Lesson learned (Success Stories. Case studies)

 

One of the major lessons through this support is from the CEZOSOPA laboratory support. Even before we have finished furnishing the same, CEZOSOPA has a received a number of visitors wanting to either use the lab or even partner in other projects. There are people from Germany interested to make groundnuts business with Mpwapwa farmers who see the equipments will easy their testing of groundnuts before they are traded to Germany. Several processors have already visited seeking for the service. The ministry of trade is now planning to allow all testing be undertaken by the private sector before they are taken to TBS and TFDA. This is an achievement.

 

There has been significant increase in production with the irrigated horticulture project. Drip irrigation has reduced water loss and eventually increased water usage and of cause proper amount of water required per tree. The linkage forged to Syngenta has reduced prevalence of diseases and therefore increase of productivity. To date, Mercy Agrobusiness can produce up to 2000 kg of tomatoes per week from previous 200 kg.

 

Proper selection of partners is a lesson to be anchored. We are having challenges implementing with Bwahama enterprises only because the sole owner is employed somewhere else and this is not her main

 

 


4.0          Recommendation & Way Forward (key plans for 2016)

Cluster development in Dodoma is planning to undertake the following activities in the next year.

 

 

LIC area of operation

TIME LINE

MODALITY

Sn

Activity

DMC

KDC

MDC

KODC

CDC

BDC

 

 

1

To conduct detailed study for selected value chains at least 3 (Livestock, horticulture, grapes).

3 VC

Livestock

Livestock

Livestock

Livestock & Horticulture

Grapes and Livestock

Jan- Sept

Consultancy

2

Stakeholders validation workshops for the 3 value chains findings

3 VC

1 VC

1 VC

1 VC

2 VC's

2 VC's

April- Oct

Validation workshops

3

Facilitate development of cluster implementation plan (through workshops)

6 WS

2 WS

1WS

1WS

2WS

2WS

April- Sept

Meetings & Workshops

4

Findings sharing with other stakeholders (pull resources and stakeholder participation) - LIC visits

3 meetings

3 meetings

3 meetings

3 meetings

3 meetings

3 meetings

Jan- Dec

stakeholders' Meetings

5

Consultation cluster meetings to identify cluster facilitators

3 meetings

1meeting

1 meeting

1 meeting

2 meetings

2 meetings

 

Meetings

6

Engagement of cluster facilitators

Identify & engagement

Identify & engagement

Identify & engagement

Identify & engagement

Identify & engagement

Identify & engagement

March- July

Consultation

7

Capacity building of selected cluster facilitators

Training facilitators

Training facilitators

Training facilitators

Training facilitators

Training facilitators

Training facilitators

April- Dec

Consultation

8

Facilitation of cluster members in identification and prioritization of  cluster bottlenecks  (Facilitator)

Bottlenecks identification

Bottlenecks identification

Bottlenecks identification

Bottlenecks identification

Bottlenecks identification

Bottlenecks identification

March- July

Workshops

9

Support/facilitation of cluster activity planning (i.e. cluster units business plan development) - Consultancy

1 business plan

1 business plan

1 business plan

Preparation for business plan

Preparation for business plan

Preparation for business plan

April- Sept

Consultancy

10

Cluster launching (at least  2) - investment strategy plan

2 clusters launch

1 clusters launch

Preparation for launch

Preparation for launch

Preparation for launch

Preparation for launch

April- Sept

Consultation

11

To support actual investment to stimulate cluster development i.e. ware house construction, irrigation systems, market linkages etc. (procurement, construction contracting)

Identify & facilitate support

identify & facilitate

identify & facilitate

identify & facilitate

identify & facilitate

identify & facilitate

Jan-Dec

Consultation

12

Follow up on implementation (done by LIC + cluster facilitator) – Documentation of best practices, lesson learnt and case studies

M & E

M & E

M & E

M & E

M & E

M & E

Jan- Dec

Visits

It is expected that this is the year of results in cluster development since last year was the year of laying the foundation, lot of learning. The guideline prepared will be very instrumental to shaping our understanding and focus.