Expansion of Warehouse Receipt Programs for rice and maize in Kilombero, Iringa Rural and Handeni districts of Tanzania

The project is implemented by Rural Urban Development Initiatives (RUDI) and is funded by USAID COMPETE. The primary objective of the grant is to assist three associations in the three districts to establish collective marketing through Warehouse Receipt Systems (WRS), procure milling equipment, and convert paddy to milled rice and maize to flour at the source. The project has made significant progress in the first quarter of 2011. In April, the Mang'ula "A" rice milling machine was established and started operations on May 26, 2011. The machine was officially inaugurated by the USAID Mission Director on May 27, 2011. The operation and management of the milling machine are overseen by a milling committee composed of 7 people, with a hired machine manager and a technician assisting with the operation. The association has also made progress in establishing a warehouse receipt system. The association has opened a special bank account to keep the money earned from milling services. However, the association faces challenges, including poor road linking the machine site with the main road, which is discouraging traders from using the machine to mill their paddy. The association was advised to prepare a business plan and financial reports to show whether they are making a profit or loss. In addition to the progress made by the Mang'ula "A" association, the Mkasu Farmers Association has also made significant progress. The association has 220 members and has held discussions with the cooperative UKICU to use their idle warehouses in their village. They have already renovated one warehouse with a capacity of 100 tons and have acquired another warehouse for the installation of a milling machine. The association has formed a milling committee of 6 people and has requested RUDI to assist them in getting a reliable buyer of their rice when it starts operations in July 2011. The Mbasa Vijana Farmers Association has also made progress, with 45 members and experience in rice milling operations. They have installed a new machine supplied by USAID COMPETE and have started construction of a new warehouse for storing rice after processing. The association has a long experience in the management of rice milling machines and has subscribed to the idea of subcontracting the management of the milling machine to an individual who would provide milling services at a fee. The project has also received support from the AKIRIGO apex, which has been active in supporting the associations. They participated in the negotiations with the cooperative UKICU and witnessed the official signing of the handover contract with UKICU. AKIRIGO has also included the association in the bank loan to pay for advance payment to farmers. The Engineer is expected to install the machines in the third week of July 2011, ready for operations in August 2011. The project has made significant progress in the first quarter of 2011, with the establishment of the Mang'ula "A" rice milling machine and the progress made by the Mkasu Farmers Association and the Mbasa Vijana Farmers Association. However, the associations face challenges, including poor road linking the machine site with the main road and the need for a reliable buyer of their rice. The project is expected to continue making progress in the coming months, with the installation of the milling machines and the establishment of a warehouse receipt system.