Grant

Trade and Agriculture Support Programme, Phase II Support to Horticulture Subsector in Tanzania

Funded by EuropeAid Co-operation Office - EuropeAID
Location Tanzania
Status
Deadline
Express interest by 01 Feb 2013

 
1.    TRADE AND AGRICULTURE SUPPORT PROGRAMME II1.1    BACKGROUNDAgriculture remains a key sector in Tanzania, instrumental in poverty reduction. It accounts for some 25% of Tanzania’s GDP and provides employment for the majority of the nation’s population.  The sector plays a significant role in inflation control as more than 95% of food requirements in the country are obtained from locally produced crops. It also provides 65% of industrial raw materials in the country and contributes 30% of export earnings.The European Union is a long standing partner of Tanzania in Agriculture and Food Security.  Under the National indicative Programme of the 10th European Development Fund covering the period 2008-13 special emphasis has been given to trade and regional integration with a clear focus on agriculture, in recognition of the critical importance of the sector as a key driver of poverty reduction and economic growth.In June 2009, the Government published the national vision “Kilimo Kwanza” – towards Tanzanian Green Revolution which emphasises the need to transform the agriculture sector in Tanzania through public- private partnerships that aim to improve the regulatory and policy environment. Within this strategy, the horticulture sub-sector has been identified as one of the priority sectors as key component in the diversification of the agricultural sector from overdependence on traditional primary agricultural products. With the recent adoption of a Tanzania Horticulture Development Strategy 2012-2021, the Government aims at developing a robust competitive horticultural subsector capable of making the country self-sufficient in nutrition, resulting in improvement of health and reduction of poverty while ensuring sustainable supply of high quality produce for national, regional and international markets.It is a demand-driven initiative of the horticulture stakeholders to exploit the fast growing demand and market opportunities available in the national, regional and international markets. The horticulture sub-sector has grown significantly in the last decade, but by volume still represents a small part of the overall agricultural industry. Horticulture makes significant contribution to food security, nutrition improvements and economic growth. It is mainly practised by small scale farmers with a few large scale operators. The sub-sector has a potential to become one of the main sources of foreign exchange earnings and a significant driver of economic growth. As pointed out in the Tanzania Horticulture Development Strategy,  “Despite the potential of the horticulture sector in terms of exports, the industry faces several universal challenges: weak production base, low productivity and quality, invisibility and marginalisation, limited access to finance especially long-term financing and investment, bottlenecks in land, policy and infrastructure, inadequate market development support, weak industry linkages, lack of entrepreneurship culture, and inadequate skilled and competent human resource.”  It recognized that there are still constraints in terms of trade development for most of the agriculture crops and that standards compliance and product quality requirements have increasingly become the key market drivers, in particular for horticulture products.In line with the above elements and the government strategy, the second phase of the Trade and Agriculture Support Programme aims at strengthening the capacity development with a focus on standards compliance and quality improvement interventions in five selected subsectors, as well as targeted value chain interventions in the horticulture subsector. This support is expected to contribute to the development of the horticultural industry, increasing production and consumption of fresh horticultural produce in Tanzania, improving nutritional status, increasing incomes and reducing poverty while increasing productivity and quality of the produce.
 

 

Trade and Agriculture Support Programme, phase II
Support to Horticulture subsector



Guidelines for grant applicants

 10th European Development Fund

Reference : EuropeAid/133685/L/ACT/TZ


Deadline for submission of Concept Notes :
1st February 2013
 
1.    TRADE AND AGRICULTURE SUPPORT PROGRAMME II
1.1    BACKGROUND

Agriculture remains a key sector in Tanzania, instrumental in poverty reduction. It accounts for some 25% of Tanzania’s GDP and provides employment for the majority of the nation’s population.  The sector plays a significant role in inflation control as more than 95% of food requirements in the country are obtained from locally produced crops. It also provides 65% of industrial raw materials in the country and contributes 30% of export earnings.

The European Union is a long standing partner of Tanzania in Agriculture and Food Security.  Under the National indicative Programme of the 10th European Development Fund covering the period 2008-13 special emphasis has been given to trade and regional integration with a clear focus on agriculture, in recognition of the critical importance of the sector as a key driver of poverty reduction and economic growth.

In June 2009, the Government published the national vision “Kilimo Kwanza” – towards Tanzanian Green Revolution which emphasises the need to transform the agriculture sector in Tanzania through public- private partnerships that aim to improve the regulatory and policy environment. Within this strategy, the horticulture sub-sector has been identified as one of the priority sectors as key component in the diversification of the agricultural sector from overdependence on traditional primary agricultural products.

With the recent adoption of a Tanzania Horticulture Development Strategy 2012-2021, the Government aims at developing a robust competitive horticultural subsector capable of making the country self-sufficient in nutrition, resulting in improvement of health and reduction of poverty while ensuring sustainable supply of high quality produce for national, regional and international markets.

It is a demand-driven initiative of the horticulture stakeholders to exploit the fast growing demand and market opportunities available in the national, regional and international markets. The horticulture sub-sector has grown significantly in the last decade, but by volume still represents a small part of the overall agricultural industry. Horticulture makes significant contribution to food security, nutrition improvements and economic growth. It is mainly practised by small scale farmers with a few large scale operators. The sub-sector has a potential to become one of the main sources of foreign exchange earnings and a significant driver of economic growth.

As pointed out in the Tanzania Horticulture Development Strategy,  “Despite the potential of the horticulture sector in terms of exports, the industry faces several universal challenges: weak production base, low productivity and quality, invisibility and marginalisation, limited access to finance especially long-term financing and investment, bottlenecks in land, policy and infrastructure, inadequate market development support, weak industry linkages, lack of entrepreneurship culture, and inadequate skilled and competent human resource.”  It recognized that there are still constraints in terms of trade development for most of the agriculture crops and that standards compliance and product quality requirements have increasingly become the key market drivers, in particular for horticulture products.

In line with the above elements and the government strategy, the second phase of the Trade and Agriculture Support Programme aims at strengthening the capacity development with a focus on standards compliance and quality improvement interventions in five selected subsectors, as well as targeted value chain interventions in the horticulture subsector.

This support is expected to contribute to the development of the horticultural industry, increasing production and consumption of fresh horticultural produce in Tanzania, improving nutritional status, increasing incomes and reducing poverty while increasing productivity and quality of the produce.
 
1.2    OBJECTIVES OF THE PROGRAMME AND PRIORITY ISSUES
The global objective of this Call for Proposals is: to increase agricultural production, development and trade in view of economic development and reduction of rural poverty in Tanzania.

The specific objective of this Call for Proposals is: to increase smallholder farmers’ income through better access to markets (national, regional and international markets), strengthening value chain linking smallholder farmers to markets, in view of increased productivity, competitiveness and income in the horticulture subsector .

The expected result of the interventions is to strengthen the horticultural (fruits, vegetable and spice) value chain from smallholder farmers to the market, with particular focus on technical know-how and market support service.
The main activities to be implemented should be in line with the Tanzania Horticulture Development Strategy 2012-2021 which aims at developing a robust competitive horticultural subsector capable of making the country self-sufficient in nutrition, resulting in improvement of health and reduction of poverty while ensuring sustainable supply of high quality produce.

The priorities areas of intervention will be the following:
1.    Support of post-harvest handling & packaging and processing activities in view of value addition
2.    Strengthening the use of Good Agriculture Practices (GAPs) and reduce losses in domestic horticulture (to include capacity building)
3.    Increasing market access and linkages between value chain actors
Interventions should target at least one of the above priority areas, focusing on technical know-how and market support services, as they have a strong pro-poor orientation, with results achievable within the time and resources available.
Highly specialised technical skills are needed at all the steps of the value chain, from production to harvest and post-harvest activities. Intervention will try to bring the technology and know-how to small-holder farmers working in the horticulture sector. This will include hands-on training on good agriculture practices and certification, as well as multidisciplinary partnerships and clusters (with local organisations/universities, research organizations, private sector, other civil society organisations and local authorities). Market support services should aim at providing practical support for Tanzanian smallholder farmers to access markets and capture market growth opportunities in the domestic, regional and international markets.

Illustrative activities (indicative, not exhaustive) that could be funded to support and/or contribute to:
1.    Support of post-harvest handling & packaging and processing activities in view of value addition
    Strengthening market centres with small scale infrastructure such as produce handling facilities, pack houses and cold storage facilities to enable preservation of perishable produce;
    Develop practical training modules and packages on post-harvest handling;
    Enable farmers to reduce post-harvest losses during transport of produce from the farms to the markets;
    Increased access to proper packaging equipment and technologies for both fresh and processed horticultural produce;
    Increased farmers’ knowledge and access to crop varieties with longer shelf life to reduce post-harvest losses;
    Value-addition operations from basic preservation to full processing procedures.

2.    Strengthening the use of GAPs and reduce losses in domestic horticulture (to include capacity building)
    Expand the use of good/innovative agricultural practices and reduce losses in domestic horticulture;
    hands-on training on GAPs and certification -including organic farming-;
    Enable the farmers to produce safe food through compliance to Maximum Residual Limits (MRLs) and introduction of organic agricultural techniques;
    Strengthen linkages between agricultural research and extension services including government research institutions, universities, private companies and producer groups;
    Increased practical learning opportunities for smallholder farmers including demonstration plots, farmer field days;
3. Increasing market access and linkages between value chain actors
    Strengthening institutional capacities of existing smallholder farmers’ associations and horticultural umbrella associations to enhance their marketing, lobbying and advocacy functions for policy and regulatory reforms that will support horticultural production and marketing;
    Increased economies of scale and economies of learning through farmers groups mobilization and strengthening;
    Supporting smallholder farmers’ organizations in their work to link smallholders (especially women) to traders and exporters with a view to facilitating timely and consistent supply of produce to the markets and inputs to the farmers;
    Strengthened linkages between processors and smallholder farmers;
    Increased linkage to high segment domestic markets including hotels, lodges and supermarkets;
    Support and strengthen organisational arrangements for interactive market information (e.g. to continuously give smallholder farmers and traders access to information on demand for types of crops, packaging, timing and pricing) and contract arrangements between commercial operators and smallholder farmers, which have a great potential for poverty reduction (e.g. contract farming and related services for smallholders, including training, transportation and support to contract negotiations);
    Increased farmers bargaining power through timely access to relevant market information and calendared production;
    Increased farmers entrepreneurship capacities to include consistency, reliability, required quality and quantity of supply to the markets;
    Increased transparency among the value chain actors and maximized benefits for the smallholder farmers especially in local and regional vegetables trade;
1.3    FINANCIAL ALLOCATION PROVIDED BY THE CONTRACTING AUTHORITY
The overall indicative amount made available under this Call for Proposals is EUR 4,500,000
The Contracting Authority reserves the right not to award all available funds.
 
Size of grants
Any grant requested under this Call for Proposals must fall between the following minimum and maximum amounts:
•    minimum amount: EUR 700 000
•    maximum amount: EUR 1 500 000
Any grant requested under this Call for Proposals must fall between the following minimum and maximum percentages of total eligible costs of the action:
•    Minimum percentage: 50 % of the total estimated eligible costs of the action.
•    Maximum percentage: 80 % of the total estimated eligible costs of the action (see also Section 2.1.4).
The balance (i.e. the difference between the total cost of the action and the amount requested from the Contracting Authority) must be financed from the applicant’s or partners’ own resources, or from sources other than the European Union budget or the European Development Fund.

2.2    HOW TO APPLY AND THE PROCEDURES TO FOLLOW

Prior registration in PADOR for this Call for Proposals is not obligatory. Information in PADOR will not be drawn upon in the present Call.
2.2.1    Concept Note content
Applications must be submitted in accordance with the instructions on the Concept Note included in the Grant Application Form annexed to these Guidelines (Annex A).
Applicants must apply in English.
In the Concept note, the applicants must only provide an estimate of the amount of contribution requested from the Contracting Authority. Only the applicants invited to submit a full application in the second phase will be required to present a detailed budget. The elements assessed on the basis of the concept note may not be modified by the applicant in the full application form. The EU contribution may not vary from the initial estimate by more than 20%. The applicant is free to adapt the percentage of co-financing required within the minimum and maximum amount and percentages of co-financing, as laid down in the present Guidelines under section 1.3.
Any error or major discrepancy related to the points listed in the instructions on the Concept Note may lead to the rejection of the Concept Note.
Clarifications will only be requested when information provided is unclear, thus preventing the Contracting Authority from conducting an objective assessment.
Hand-written Concept Notes will not be accepted.
Please note that only the Concept Note form will be evaluated. It is therefore of utmost importance that this document contain ALL relevant information concerning the action. No additional annexes should be sent.
 

 

 

The above is a summarized version of the Original Procurement Notice.                          

 

More Resources

Procurement Notice Page

Email this Report

Please note that the recipient's access to view reports that you send them is dependent on their Devex membership level.

Trade and Agriculture Support Programme, Phase II Support to Horticulture Subsector in Tanzania

EuropeAid Co-operation Office - EuropeAID

or