AATIF | Camel Flour Outgrower Program
The Africa Agriculture and Trade Investment Fund (AATIF) is an innovative public-private partnership dedicated to improving food security and employment for farmers, entrepreneurs and laborers by investing in efficient local value chains. In 2019 AATIF invested in Camel Flour, a flour milling company in Tanzania. Camel Flour has a total annual requirement of 180,000MT of wheat which at this moment in time is largely imported. In Tanzania, there is a large gap between the total demand of wheat and the local production of the grain.
In order to become self-sufficient in wheat production, the Government of Tanzania developed a strategic plan, requiring all wheat mills to source at least 50% of their wheat requirements locally. In order to meet this requirement, Camel Flour intends to source a large portion of their annual wheat requirement from outgrowers. The AATIF TA fund is supporting Camel Flour in developing a sustainable outgrower program to enable this local sourcing.
Aidenvironment was hired by the AATIF TA facility to assess what interventions and resources are needed to implement the Camel Flour outgrower program, enabling sustainable sourcing of 67,500 tons of wheat annually from local small, medium and large wheat farmers.
The Aidenvironment project team assessed the Camel Flour mills and the wheat producing areas in the North of Tanzania. The key interventions identified were:
- Camel Flour should provide a steady and transparent market through clear contracts with outgrowers.
- Outgrowers require training on Good Agricultural Practices such as using quality declared seed and applying crop rotation with at least one other crop such as sunflower.
- Small and medium farmers, who will become part of the outgrower program through farmer groups, need support and training on group formation, group dynamics, leadership and group management to ensure stable and cohesive farmer groups.
- The outgrower project should cooperate with local financial institutions, such as the Tanzania Agricultural Development Bank, to facilitate farm financing for the outgrowers
Camel Flour plans to establish a dedicated outgrower unit which will receive technical assistance from a team of outgrower development specialists. Based on the project documentation, developed by the Aidenvironment project team, the AATIF TA facility is preparing a support package which will be provided to Camel Flour for the implementation of their outgrower program.
For more information, please contact Rommert Schram.