When it comes to food security, NFRA is in control
Tanzania’s National Food Reserve Agency (NFRA) has expanded its reserves from 150,000 to 360,000 metric tons, aiming for 3 million metric tons by 2030. NFRA now includes sorghum, paddy, sunflower, and sugar in its reserves. It plans to buy 1.78 million metric tons from farmers this season and has nine zonal storage facilities. Despite challenges with dishonest traders, NFRA maintains competitive pricing and engages in regional and international markets to stabilize food supply and prices.
TANZANIA: TANZANIA is largely surrounded by neighbours with failed crop production because of various challenges, while globally the food supply chain has been gravely disrupted by wars and impacts of climate change.
To help Tanzanians have a glimpse on Tanzania’s food reserve capacity, whether it is growing or falling, our Correspondent PETER KEASI this week talked to National Food Reserve Agency (NFRA) Director General ANDREW KOMBA on various issues relating to food reserve management.
Dr Komba assured Tanzanians that NFRA’s reserve capacity has expanded from only maize when it was formed, to include sorghum, paddy and plans to add sunflower and sugar. The reserve capacity, he explained, has grown from 150,000 metric tons to 360,000 tonnes, with a goal of reaching three million metric tons by 2030.
This expansion, he said, allows NFRA to better manage food emergencies, stabilise prices and address shortages effectively. And he added, NFRA plans to buy from farmers 1,785,000 metric tonnes this season because the agency sets market prices that attract farmers and maintains a close relationship with them through procurement centres…
QUESTION: Let’s start with history. The English have a saying: ‘Keep something for a rainy day’. And Tanzania has always kept something for a rainy day; in form of food reserves. But this is not accidental and many people, more so people born after the 60s, do not know that Tanzania has a beautiful track record of ensuring food security at national level. For three years, starting 1973, Tanzania engaged in kilimo cha kufa na kupona (producing food crops as a matter of life and death). In this vein and for intellectual refreshment Botswana founder President Seretse Khama, told his host Mwalimu Nyerere in Dar es Salaam in a meeting of one of the three Southern Africa Frontline States in 1975 that “Tanzanians are not only gifted with high merit of caring for other suffering Africans, but internally you preserve enough food for emergencies.” Does this strike you?
ANSWER: It does positively, for Tanzania has historically been keen on the question of food security. Therefore, you will appreciate that the National Food Reserve Agency (NFRA) in Tanzania has evolved through various administrations to address food security.
Initiated after severe droughts in the 1970s, President Julius Nyerere’s establishment of the National Agricultural Produce Board (NAPB) and later the National Milling Corporation (NMC) laid the foundation for grain storage infrastructure. Under President Ali Hassan Mwinyi, the Strategic Grain Reserve (SGR) was moved to the Ministry of Agriculture in 1991 and the Food Security Department (FSD) was created. President Benjamin Mkapa restructured this in 2002, making SGR an independent unit and renaming FSD to the National Food Security Department (NFSD).
During President Jakaya Kikwete’s term, NFRA focused on improving food security through enhanced infrastructure. Under President John Magufuli, there was a significant upgrade in storage facilities and logistics. President Samia Suluhu Hassan has continued this progress, expanded storage capacity and maintained the focus on food security. Despite changes in administration, NFRA’s mission to ensure national food security has remained persistent.
QUESTION. We understand the Strategic Grain Reserve (SGR) is the forerunner of the National Food Reserve Agency (NFRA). The SGR was established in 1976 and the NFRA was established in 1997 under act of parliament No 30 of 1997, Cap 245. If that is correct, then how does Act No.13 of 2009 fit in this chain of changes relating to NFRA?
ANSWER: Act No. 13 of 2009 is the Executive Agencies Act, which aimed at transforming some government institutions to improve their performance and reduce dependence on the central government. As part of this reform, on June 13, 2008, the SGR was transformed into the National Food Reserve Agency (NFRA). Therefore, this Act initiated the transformation of SGR into NFRA, marking the beginning of its current structure and function.
QUESTION. Why did the government choose to switch from SGR to NFRA?
ANSWER: The government transformed SGR into the National Food Reserve Agency (NFRA) as part of public service reforms aimed at improving performance and reducing dependence on the central government. These changes were driven by several shortcomings in SGR’s structure and operations:
- SGR focused on storing only maize, despite other staple crops like sorghum, rice, wheat and cassava being widely grown and consumed.
- SGR’s involvement in commercial activities conflicted with government policy to divest from direct business operations.
- SGR’s dependence on limited annual government budget allocations hindered its ability to purchase the mandated 150,000 tons of maize.
- SGR’s infrastructure, such as warehouses and equipment, was outdated and inherited from NMC in 1991.
In July 2008, these issues led to the establishment of NFRA, designed to address these problems by diversifying stored crops, operating semi-autonomously, reducing budget dependence through commercial activities, employing its staff independently and expanding and modernising storage facilities.
QUESTION. As far as we know, NFRA has four statutory tasks. The main one, we hope, is to ensure there is always enough food to meet national needs. Does the NFRA always have enough food reserves to meet the needs?
ANSWER: Yes. NFRA was established to improve food reserve management by diversifying and increasing the quantity of reserved crops. Since its inception, NFRA has expanded its reserves from only maize to include sorghum, paddy and plans to add sunflower and sugar. The reserve capacity has grown from 150,000 MT to 360,000 MT, with a goal of reaching three million MT by 2030. This expansion allows NFRA to better manage food emergencies, stabilise prices and address shortages effectively.
QUESTION. How do you describe the food situation now?
ANSWER. According to statistics issued by the Ministry of Agriculture, Tanzania has attained Self-Sufficient Ration of over 120 percent for a number of years now, meeting the international food security standard for a stable food security situation. Despite this positive status, NFRA continues to maintain reserves to address emergency food requirements during disasters. Additionally, this situation presents an opportunity for NFRA to expand its market scope to regional levels, helping to meet food needs in neighbouring counties.
QUESTION. How many tonnes do you project to buy from farmers this farming season?
ANSWER. We are planning to procure from farmers about 1,785,000 MT in this season.
QUESTION. Do you have zonal storage facilities?
ANSWER : Yes. NFRA has nine zonal storage facilities, including a newly established zone in Mpanda. Mpanda has been upgraded following the President’s directive to have it upgraded. Each zone is equipped with storage infrastructure and sufficient staff to serve farmers and the general public. The zones are strategically located in areas of surplus grain production and deficit areas to facilitate the redistribution of grain, with total storage capacity of 360,000 MT.
QUESTION. How do you raise money with which you buy food crops?
ANSWER. According to Clause 7.1 of the Executive Agencies Act (The National Reserve Agency) (Establishment) Amendment Order, 2016, NFRA raises funds through several sources:
- Sales of food commodities
- Charges for services rendered
iii. Government subventions
- Loans from financial institutions
- Partnerships with the private sector
- Grants from development partners
QUESTION. But this is a liberalised economy; you find in the market private buyers; some of them very unscrupulous. How do you survive under conditions of highly dishonest competitors when your stores are half-empty?
ANSWER. NFRA operates on a strong foundation with a highly experienced team, ensuring reliability in business practices. We educate farmers about dishonest competitors and promote best practices, such as avoiding unauthorised measures and substandard grain quality. To stay competitive, NFRA sets market prices that attract farmers and maintains a close relationship with them through procurement centres. Despite high competition, our unique pricing mechanisms and focus on production costs help sustain farmers and outmanoeuvre competitors.
QUESTION. In the past, we were told some unscrupulous traders came from neighbouring countries and were deceitfully paying farmers before harvests. Are you still facing the challenge of local and foreign dishonest crop buyers in the market?
ANSWER. Yes. Challenges with dishonest traders persist. However, the Ministry of Agriculture, in collaboration with the Ministry of Local Governments and Regional Administration, have put in place measures to address these issues. Efforts include opening formal markets and conducting sensitisation programmes to encourage farmers to use official channels like NFRA for selling their produce. These efforts gradually eliminate these dishonest buyers.
QUESTION. A beautiful way of skirting around the problem.
ANSWER. Correct. The government has established formal markets managed by local authorities and cooperative unions with the formation of warehouse receipt systems, to offer attractive prices and encourage farmers to sell through these channels. NFRA also conducts annual sensitisation programmes to guide farmers towards selling their harvests in formal markets, especially to NFRA.
QUESTION. Is there auctioning on the market?
ANSWER. No. NFRA does not use auction for grain procurement. However, we occasionally use a tendering system for recycling grain, where the highest bidder may win the offer.
QUESTION. But you do not only buy and store crops. NFRA has to give food crops to districts in urgent need of foodstuffs, more so those hit by ‘disasters’. Are there bench marks for determining a disaster?
ANSWER: Yes. Before releasing food for disaster relief, the Office of the Prime Minister’s Disaster Management Department and the Ministry of Agriculture assess the affected areas and households. The results are communicated to NFRA, which then acts based on these directives.
QUESTION. Do people in districts hit by disasters get free foodstuffs?
ANSWER. Yes. The Disaster Management Department assesses and designates beneficiaries who receive free food, while others may receive food at reduced prices.
QUESTION. We are told one of your duties is to look for food markets in order to contain inflation. Tell us something on how you go about fulfilling this task.
ANSWER. NFRA uses reserved stocks to address food shortages caused by supply issues or regional shortages. We monitor price trends and conduct annual assessments with the Ministry of Agriculture to identify areas needing intervention. We use direct sales, sales centres and agents appointed by Local Governments Authorities (traders and millers) serve these areas to reduce the magnitude of food inflation.
ANSWER. Yes. NFRA actively seeks external markets as part of its regional strategy. We have partnered with the World Food Programme (WFP) and countries like Congo DRC and Zambia. We also promote our high-quality, non-GMO grains through embassies, advertising and international forums. We are continuing to hunt for more markets in the region and outside the region to cover Africa.
QUESTION. Suppose there have been extremely bad harvests countrywide, do you import foodstuffs for storage?
ANSWER. Yes. NFRA can import food for storage if domestic reserves are insufficient due to poor harvests. The last import was in 2013. Kipawa Zone has been established strategically ready to receive imported grain through the Dar es Salaam port should the need arise.
QUESTION. The agency is allowed to offer services in order to earn income. What kind of services are those?
ANSWER. NFRA provides services such as vehicle weighing, fumigation and warehouse leasing. With recent expansions, we now also offer grain cleaning, drying, packaging and consulting services, as a result of completion of capacity expansion projects in Mpanda, Sumbawanga and Babati.
QUESTION. You have taken over the leadership of the NFRA at a time when everything is being done to implement the national slogan of: Let’s feed Africa by 2030’ and President Samia’s vision to transform Tanzania into a global food hub. At personal level, what are you expected of; what is the NFRA expected of?
ANSWER. As NFRA’s leader, I am expected to manage the Agency effectively and support the national goal of “Let’s feed Africa by 2030” and give full support to implementation of President Samia’s vision to make Tanzania a global food hub. NFRA aims to expand its storage capacity to three million metric tons by 2030, enhance infrastructure and widen market scope. Personally, I must ensure effective management, strategic planning and efficient operations within the Agency.
QUESTION. How heavy is the responsibility put on your shoulders?
ANSWER. The responsibility is indeed heavy, particularly as the Agency faces challenges such as financial constraints. But we brainstormed and set a plan to overcome these challenges by making good preparations to issue a food security bond to source necessary funds. Not only that, but the Agency also plans to increase engagement with the private sector, financial institutions and other stakeholders to allow more dynamic and efficient operations.
QUESTION. Who are your dependable suppliers on the market, cooperatives or commercial farmers?
ANSWER. The Agency depends primarily on smallholder farmers who are major suppliers and they form a large percentage of our supply base. We also source from cooperative unions and have recently engaged a significant segment of commercial farmers to be part of our grain supply chain.
QUESTION. Does the farming community have enough knowledge about your operations?
ANSWER. The farming community has some awareness of our operations, but it’s not always comprehensive. NFRA is working to improve this by using various media channels, including platforms like yours, to reach and educate farmers and stakeholders about our activities. We conduct annual sensitisation campaigns to further inform the farming community and ensure they understand how to engage with NFRA effectively.
QUESTION. What is the relationship between NFRA and the Cereals and Other Produce Regulatory Authority (COPRA)?
ANSWER. NFRA (National Food Reserve Agency) and COPRA (Cereals and Other Produce Regulatory Authority) have a complementary relationship in Tanzania’s grain market. NFRA is tasked with procuring, storing and distributing food reserves to ensure national food security. It manages strategic grain reserves, including maize, paddy and sorghum, to stabilise supplies during shortages.
COPRA acts as the regulatory authority overseeing the cereals and produce sector. COPRA’s responsibilities include regulating the grain market, setting quality standards, ensuring compliance with food safety regulations and promoting best practices in grain production and storage. This regulatory framework ensures that NFRA operates within established standards and contributes to overall market stability.
Source Link : https://dailynews.co.tz/when-it-comes-to-food-security-nfra-is-in-control/
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