SPEECH BY HON. ABDISALAAM I. KHATIBU (MP), DEPUTY MINISTER FOR FINANCE,

ON THE OCCASION OF THE OFFICIAL INAUGURATION OF THE FOOD PROCESSING PROGRAMME TRAINING CUM PRODUCTION UNIT AT SIDO INDUSTRIAL ESTATE –

DAR ES SALAAM ON 19 NOVEMBER, 2001

Your Excellency, Mr. Felix Ugbor,- UNIDO Representative,

Your Excellencies Member of the Diplomatic Corps,

Distinguished Guests,

Ladies and Gentlemen,

I feel honoured to have been accorded the opportunity to officiate at the inauguration of this unique unit of the food-processing programme. On behalf of the Government, the people of Tanzania and on my own behalf, I take this opportunity to express our appreciation to the different parties who have played a

direct or indirect role in the initiation and implementation of the Food Processing Programme since its inception nine years ago. Their untiring efforts and determination has made it possible, for all of us to be here today and to take part in this opening of this very important facility for the programme.

Distinguished guests, most if not all of us here today are familiar with the basic features of the Tanzanian economy and the unique position and role of the agricultural sector in the growth and development of Tanzania. The sector contributes 50% of our GDP and accounts for about 75% of export earnings. Agriculture also provides livelihood to about 80% of the population. We are aware of the linkages between industry and agriculture. The agricultural sector is a source of raw materials and inputs for the industrial sector provides effective demand or market for industrial output. Also the industrial sector creates opportunities for adding value to agricultural output prior to marketing.

Apart from adding value, processing creates major benefits through the preservation of fresh agricultural produce to avert spoilage and extend storage for long periods that would otherwise not be possible; thereby contributing to food security.

Ladies and Gentlemen, it is estimated that about 70% of Tanzanian grain harvests are stored at the household level in traditional storage facilities; most of which are technologically inadequate for long storage. Poor storage alone accounts for losses of between 25% and 30% of grain harvested per annum. The situation is much worse in the case of horticultural produce, where at least 40% of fruits and vegetables output is lost due to poor market access and lack of preservation capacity and facilities. In comparative terms, available data indicates that Tanzania's achievement in food processing is limited to a mere 1% in some produce categories and in some exceptional categories up to 20%.

Given the above scenario, we appreciate and welcome initiatives to combat food losses and add value to agricultural resources for the domestic as well as export markets. The ongoing food-processing programme of SIDO is an attempt towards supporting the food-processing sector in Tanzania. The food processing cum training unit being launched today is yet another step forwards towards facilitating the development of the sector. When I was going around I noted that the equipment available can process various foods. These include equipment that are used for fruits and vegetables processing, meat processing, pasta making, baking, mixing and milling of flour and grinding of nuts and several others. In addition there are facilities for packaging and storage, a quality control laboratory and a shop where the products made will be placed for display and sale. And I am also told that the water flowing into the unit is of drinking quality. It is therefore evident that this is a facility of its kind in Tanzania and

of crucial importance to the food processors. The unit will provide the much-needed demonstration in food processing, currently lacking, and an important backstop to the industry. This concurs with the Tanzania development vision 2025 which recognises agro-processing as important requirement for industrial growth.

As most of you may know, Tanzania is actively involved in the process of creating free trade areas within the framework of SADC and the East African Community. The US African Growth and Opportunity Act (AGOA) is also presenting opportunities. If we fully exercise our rights within the SADC and EAC markets, and if we are to seize opportunities presented by AGOA and similar programmes, then we need to realize our potential. Such potential definitely exists in food processing for export. We do realize that the export market is a demanding and difficult one but experience shows that many successful exporting activities have started as

modest domestic market oriented projects. Good performance in the domestic market is necessary to provide the experience and learning process necessary to establish the competitive capacity for successful performance in the export market.

We all hope that this centre will be a nucleus for food industrial park to a level similar to those we have been hearing from developed countries. Tanzania entrepreneurs and especially those at the micro and small scale level need this form of development and the government will strive to see that it gets maximum support.

My statement would not be complete without a word to the Consumer. We have witnessed the hard struggle the programme has undergone to promote the sector. In the final analysis the outcome of any production initiative or programme is the choice of the consumer.

The consumer is the ultimate target and the producer has to cater for his/her taste and desire. But perhaps the Tanzanian consumer should at times also take into consideration the noble objective of promoting "made in Tanzania." Where the producer has been able to meet the rigorous health and quality standards and struggles to meet competitive pricing, we should endeavour to promote our entrepreneurs by building the culture of consuming locally manufactured goods. There are occasions when we have chosen imported goods solely for the sake of the very attractive packaging or the mere belief that imported goods are superior to local brands. We need to change that culture. Let us be proud of our own products.

Distinguished Guests, allow me, on behalf of the Government and people of Tanzania, to thank all those who have participated in one way or another in the initiation and implementation of the food processing programme to-date. Our sincere thanks go to the

bilateral donors, the Governments of Austria, Denmark and the United Kingdom for providing financial support to the programme and not forgetting TCCIA. Sincere appreciation is also due to international organizations that have provided technical support to the programme, particularly UNDP and UNIDO. The management and staff of SIDO and of TAFOPA also deserve special thanks for steadfast programme implementation. I wish also to extend our deepest appreciation to the pioneer entrepreneurs who have taken the numerous business and financial risks involved and whose modest success amounts to the success of the programme that has made the establishment of this unit.

In this regard let us support them by eating what they produce. Let us start right here today. On this note I welcome all participants in the hope that you all will enjoy the shopping opportunity that is availed to you. Having said that, may I now declare this food processing programme unit officially opened.

THANK YOU.

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