Farm Mechanisation using two wheeled tractors in Tanzania under the FACASI Project presented at the second review and planning meeting, Hawassa, Ethiopia, February 2014

1. Testing site- specific Commercial systems to
deliver 2WT-based mechanization
Progress report :FACASI Review meeting
Ethiopia
9th to 13th Feb 2015
Benesta Titus

2. Milestones Achieved.
Output 2.1:Market analysis of small
mechanization.
Methodology:
 Country level literature review
-Mechanization information and studies from different sources -
collected from primary and secondary information (i.e MAFC,
internet search and interviews).
 Interviews of national and local market actors
-Checklists and semi structured questionnaires : for interview with
different actors.
-One to one, key informant interviews and FGDs conducted
-Actors involved: importers, LMs, government departments
/Institutions, farmers and service providers.
 Round table discussions with different key group actors.
-Actors from farmer’s groups, individual farmers and dealers.

3. Sector profile and organization.
 Increased in number of 2WTs from 100 units in 2005 to
3325 units in 2010.
 Importation by private sector and some distributed by
government programs (AGITF), District Agriculture
(DADPs) and (DASIP).
 There are more than 50 FM dealers or importers of FMs
 Total 2WTs in the country is almost more than 6000
(MAFC)
 Market actors: Importers/dealers, distributors/branches,
business partners, agents, local manufacturers, service
providers, local mechanics, financial institutions and
farmers

4. Constraints and weaknesses of market
systems.
 Lack of quality and standards: Poor farm machinery
flooded the market-No so much restriction on poor
quality power tillers
 Poor marketing of suitable machinery packages to
farmers
 High cost of agricultural machinery though no import
charges on agricultural machinery.
 Limited access to agricultural finance
 Lack of well-trained operators and mechanics for farm
machinery.
 Limited management and entrepreneurial skills among
farmers and other supply chain actors.
 Competition.

5. Opportunities in the market systems.
 Population growth: 0ver 40ml people, 80% depend on
agriculture.
 Abundant natural resource (Land) which are suitable for
mechanization
 Government support through - TIB, AGITF and Agric.
Bank.
 Growth and engagement youth in agribusinesses and
medium to large-scale farms; Potential to find new
service providers in the districts.
 High demand of farm machineries due to farmers
movement from Oxen to small tractors( e.g. Arumeru,
Mbulu and Babati).

6. ..Opportunities in the market systems
 Involvement of commercial banks and financial
organization in the provision of FM loans (PASS Trust,
Equity bank, NMB, Equity-non bank org.)
 Favorable policies that promote mechanization in the
country.
 Availability of farm machinery local manufacturers:
Increased number of local farm machinery
manufacturers in Arusha and Manyara regions-7
identified (5 in Manyara and 4 Arusha regions)
 Opportunity for local manufacturer to manufacture 2WTs
with wheel drive or steering.

7. ..Opportunities in the market systems
 Commitment of FM dealers: Kishen and farm equip in
engaging in 2WTs business model.
 Partnership with PASS Trust and-financial services - in
collaboration with 7 banks(CRDB,TIB,NMB,FBME,BOA
and ABC Banks).

8. Output 2.2; Business Model Design.
Methodology:
 Identification of key drivers.
 Identification of existing business models
 Business model mapping
 Analysis of the performance of models
 Identification of critical success factors
 Preparation of an upgrading plan.

9. Key drivers identified:
 Local dealers: Kishen enterprises, Zana Bora, Farm equip
,Rihana Co, General Motor Investment.
 Branches: Kishen enterprises and farm equip-Arusha
 Business partners: Bhavya trading company Ltd-Arusha,
Rihana company and Tanganyika farmers association.
 Agents: Toyo companies: In various districts in Arusha
 Local Manufacturers: NANDRA Engineering, Elmi farm
equipment(Katesh), Bonge enterprises(Babati), Pamoja
Nguvu(Arusha) and Kavishe enterprises(Babati).

10. Identification and selection of
business models:
 Dealer-led vertically integrated business models: 2
business models-Kishen enterprise model, and Farm
equip model.
 Manufacturer-led vertically integrated models: Elmi farm
equipment model.
 Service provider models:
-Individual owner models : 4 business models: Seti
model(Shelling and LP), Petro model(Shelling and
transportation), Pissa model(Shelling and transportation)
and William model(transportation and LP).
-Group owner/operator models:2 models: Parachichi and
Amani groups.

11. Criteria for selection of business
models:
 Interest of the private sector and readiness to invest and
share risks.
 Location of the business model in the project area
 Potential impact on number of smallholder farmers
 Travel times that allows regular support
 Opportunity to upgrade the business model with
available project resources
 Potential demand for small mechanization.

12. BM design: Mapping
Model Stakeholders Functions/ Services
Interventions for upgrading
Service provider Government/
donor/ project
BM1
Parachichi
(Meru)
- Arumeru dealers
- Farm machinery
and spare parts
agents,
- Local mechanics
- VCBs
- Custom hire services
to group members
and other farmers
(land preparation and
transportation)
- Group organized by
the district farm
machinery programme
- Supplied 2WT farm
machinery = trailer +
plough
- Link to dealers (Kishen)
- Link to local mechanics
- Link to spare part stockists
- Access to loans and working capital
- Develop market linkages
- Business management training
- Upgrade link with extension
BM2
Amani (Mbulu) - Dealer (district
council)
- Machinery
operators
- Local mechanics,
- Village
community banks
Not operating at
present but planning
to provide hiring
services
Organized by the
district farm machinery
programme
Extension service
support in
mechanization
Mbulu district council
supplied the 2WT
trailer , disc plough,
rotovator
- Linkage to dealer agents for spare
parts (Kishen)
- Access to loans and working capital
- Business management training and
support
- Operational training and support
- Link to market buyers
- Develop linkage with extension
service
BM3
Seti (Meru)
- Dealer (Rihana)
- Manufacturer
(Pamoja Nguvu)
- Mechanics
- Farm machinery
and spare parts
agents in Meru,
- Village
community banks
- Maize shelling
service and
transportation
- Supported by
workshops and local
mechanics
- Strengthen links with dealers and
local manufacturers
- Facilitate establishment of local spare
parts agents
- Identify and upgrade the capacity of
local mechanics
- After sales services
- Access to finance
- Business management support
- Develop links to markets

13. BM design: Mapping
Model Stakeholders Functions/ Services
Interventions for upgrading
Service provider Governme
nt/ donor/
project
BM4
William
SP (Meru)
- Farm equip,
(Autosokoni)
-Local mechanics,
- Village community
banks
-Extension services
Service provider model
– transportation and
some cultivation of rice
(located in Meru out of
the project area)
- Supported by village
banks and local
mechanics for R&M
Some limited
extension
support
- Link to dealer
(Autosokoni/ Kishen) for spare parts
- Access to finance
- After sales services through local
technicians
- Training in 2WT operations
- Broaden range of services offered
- Develop linkages with financial institutions
BM5
Petro post
harvest
(Mbulu)
- LM of maize
sheller (Pamoia
Nguvu)
- FM and spares
supplier (Kishen)
- Local mechanics
(Mbulu)
- Financial and
business services
providers
-VCBs
- Maize shelling service
and transportation
- Financial support
through NMB
- Links to local
workshops and
mechanics
Some limited
extension
support
- Links to dealers and local manufacturers
- Access to finance (Equity/ Pass)
- Establish cadre of local mechanics
- After sales services
- Business management and technical training
- Links to market buyers
- Links to extension mechanization services
BM6
Pissa
Post-
harvest
(Mbulu)
- Manufacturer
(Bonge, Camartec),
- Suppler (SARI),
– Local mechanics
- Multi-crop maize
sheller service and
some transportation
- Support by local
mechanics and R&M
services
SARI provided
a 2WT and has
set up a
leasing
arrangement
- Links to dealers and local manufacturers
- After sales services
- Access to finance (Equity/ Pass)
- Farm machinery and spare parts agents
- Upgrade cadre of local mechanics
- Business management and technical training
- Link to finance

14. BM design: mapping
Model Stakeholders Functions/ Services
Interventions for upgrading
Dealer/
Manufacturer
Governme
nt/ donor/
project
BM7
Elmi
Manufac.
(Katesh
Manyara)
- Steel Centre Arusha
(dealer)
- Operators/ service
providers
- Financial service
providers (NMB)
- Extension services
- Local manufacturer of
implements (planters,
ploughs, threshers,
shellers)
- Provides after sales
services
Extension
support in
farm
machinery
maintenance
- Extension
support in
farm
organization
- Access to finance NMB, CRDB, PASS and Equity)
- Link to local mechanics
- Training on how to manufacturer different farm
machineries
- Business development service support
- Market linkage support
BM8
Kishen
Dealer
(Arusha)
- Arusha-dealer
branch,
-Toyo company
- Local mechanics,
Financial providers
(NMB, CRDB, Equity,
PASS),
- Supply of 2WT farm
machineries and spare
parts
- Promotion of
machinery to farmers
- Facilitates access to
finance
Support in
organizing
farmers into
groups
- Access to finance NMB, CRDB, PASS and Equity)
- Linkages to output markets
- Linkages to SPs
- Access to spare parts by strengthening Arusha
branch
- Branding (Toyo)
- After sale services and guarantees to customers
BM9
Farm
equip
Ltd.(Arus
ha)
- Local farm
machinery and spare
parts agents (Meru,
Babati, Karatu,
Mbulu),
- Financial service
providers (EQUITY-
Moshi, Equity bank,
PASS)
- Sales of agricultural
machinery including
2WTs
- Stocks and dsitributes
spare parts and tools
and equipment
- Provides after sales
services
- Local level agent
- Extension
support in
farm
machinery
maintenance
- Extension
support in
farm
organization
- Establish field agents in Mbulu and surrounding
areas
- Provide after sales services and R&M support
- Link to local mechanics, operators/service
providers
- Training and extension support in farm
machinery
- Financial assistance in developing a leasing
product

15. Business model analysis
Performance assessment:
Farmer led SP
models
Private sector led SP models Dealer/ manufacturer led
supply chain models
BM1
Parachich
i
BM2
Amani
BM3
Seti
BM4
William
SP
BM5
Petro
post
harvest
BM6
Pissa
Post-
harvest
BM7
Elmi
Manufac.
BM8
Kishen
Dealer
BM9
Farm
equip
Ltd.
Infrastru
cture
++ +++ +++ ++ ++++ + +++++ +++++ +++++
Offering
(Product
/
service)
++ +++ ++++ +++ ++++ ++ ++++ +++++ +++++
Custome
r
++ ++ ++++ +++ ++++ ++ +++ ++++ ++++
Monetiza
tion
++ ++ ++++ +++ ++++ ++ ++++ +++++ +++++
Sustaina
bility
+++ +++ ++++ +++ ++++ ++ ++++ +++++ +++++

16. Critical success factors
 Reliable market for farmers crops
 Availability of financial services .
 Training on how to operate 2WTs
 Business development services:
 Cost/price of tractors and equipments
 Quality of machine and implements
 Availability of spare parts
 Customer satisfactions
 Farm machinery extension services to farmers.
 Availability of farm technologies(planters, shellers and
threshers).
 Innovation to farm technologies e.g. 2WTs.
 Deliverance and timeliness
These critical success factors used to upgrade the models

17. New models.
 Kilimo market –Market hub model, located at Babati
rural- Endachani village: link farmers to the market
 Maweni Young Vegetable Growers Association Model-
Market hub model, located at Maweni village Arumeru.
 Bonge enterprises model (Local farm machinery
manufacturer.),located at Galapo Babati
 Sylvester model: Fitarelli (single row) and Disc plough
model; located at Bashay Mbulu.
Pissa model (Double rows and VMP model):this is part of
upgrading strategy of the model-to diversify the model
he brings in a double row and VMP planters.

18. How to operationalize and implement
these models:
 Link service providers to dealers(Kishen & Farm
equip):have agreed to supply and connect SPs to
FSPs.
 The project advised to support local
manufacturers(Elmi, Bonge in Babati) to manufacture
equipments and lease them to SPs: to supplement the
existing models
 Work closely with PASS and Equity banks for
financial support to SPs.
 The project to contribute much in strengthening the
existing models through various interventions.

19. ..How to operationalize and implement
these models:
For the new models:
 Options to provide loans for 2WTs and trailers
-Project to buy 2WTs and give farmer through lease
basis or payback approach.
 To connect new models to financial services
 Dealers to give out to service providers as lease
basis:(Farm equip is working on this approach)

20. Other achievements
 Training on CA equipments and business skills for hire
services
 Identification of 7 local farm machinery manufacturers
and 23 Service providers in Arusha and Manyara regions
(Identification still on-going).
 Connecting 7 local farm machinery manufacturers and
23 service providers to PASS for financial issues
discussion.
 Collaboration with PASS Trust, Equity bank and Equity
Tanzania to provide financial services/ support.
 Readiness of farm machinery dealers to collaborate.

21. Thanks for Listening