Home East Africa A multibillion-shilling malting plant in Tanzania: To boost barley cultivation

A multibillion-shilling malting plant in Tanzania: To boost barley cultivation

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Tanzanian Minister of Agriculture, Hussein Bashe, announced a multibillion-shilling investment by Tanzania Breweries Limited. This will put Tanzania in the right direction which leads to the export of barley once the plant is fully operational. This was announced during the recently concluded investment launch ceremony in Dodoma.

Tanzanian Minister of Agriculture, Hussein Bashe, announced a multibillion-shilling investment by Tanzania Breweries Limited. This will put Tanzania in the right direction which leads to the export of barley once the plant is fully operational. This was announced during the recently concluded investment launch ceremony in Dodoma. Speaking during the launch, the Minister stated that the Kilimanjaro Malt Plant will be in Moshi, where some 17,500 farmers will be engaged in contract farming to cultivate barley as raw material to supply to TBL for further processing.

Tanzania is not among Africa’s top 10 barley producers. But, by establishing a facility that will be able to malt the barley using modern technology, the odds are in Tanzania’s favour to increase the production of barley and become a major exporter on the continent. This potential lies in the fact that the revival of the malting facility will see the plant’s capacity for processing barley, a key ingredient in the production of beer, shoot up to 32,000 tonnes a year from 15,000 tonnes previously. Bashe echoed this optimism, which rings positive for the agricultural sector. He said that he will personally see to it that the barley production target is met. What this means is that the concerted efforts between the government and TBL can potentially change the fortunes of the entire crop that was plagued with uncertainty.

Apart from benefiting farmers, the new plant will set the stage for Tanzania to benefit from the Africa Continental Free Trade Area as a signatory member. The trade bloc provides a wide market for the product and ensures Tanzania not only becomes a major exporter of malted barley but also a leader in the use of modern technology. Supporting this ambition, Bashe said plans are ahead to ensure that in the coming three years, Tanzania will not be importing any more malted barley but instead will be exporting it to other countries. Tanzania exported $81.4k in barley in 2021, making it the 64th largest exporter of barley in the world. In the same year, barley was the 499th most exported product in Tanzania. The main destinations and fastest-growing export markets for barley from Tanzania are Uganda and Ireland.

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TBL’s Moran said the Kilimanajro Malting Plant project will be implemented in phases, where the first for 2023-24 fiscal year will involve investing 10.5 million US dollars to produce the 12,000 metric tonnes of malt. This phase will automatically boost local production and raise the morale of farmers to cultivate more, especially by building their capacity and providing seed variety testing support from the company. Phase two, which will be implemented in the 2024-25 fiscal year, will involve scaling up the project’s construction to produce 16,000 metric tonnes of malt with an investment of about 6.3 million US dollars.