Tanzania’s meat exports increased by 41 percent as the leather sector declined

Dar es Salaam. Arab countries account for a significant share of foreign markets driving the growth of Tanzania’s meat industry, with exports rising 41.1 percent to $86.31 million (£220.52 billion) last year.

According to the new 2023 State of the Economy Report, the country exported 14,701.2 metric tons of meat last year compared with 10,416.0 metric tons of meat worth $42.5 million (98.9 billion pounds) that was exported in the previous year.

“The increase in meat exports was due to an improvement in the business and investment environment, as well as strengthening meat markets in countries such as Hong Kong, Vietnam, Kuwait, Qatar, the United Arab Emirates (Dubai), Oman, Jordan, Bahrain, Kenya and the Comoros,” we read in part report.

Meanwhile, the leather industry slowed down last year as 4,933 metric tons of leather items were exported compared to 7,472 metric tons in 2022.

During this period, exports of leather items were valued at £6.11 billion compared to £10.05 billion in 2022, a decline of 39.2%. Leather export destinations include Nigeria, Ghana, Togo and Pakistan.

“The decline was due to some traders suspending leather exports to Nigeria due to the general elections in the country, which accounts for over 90 percent of Tanzania’s leather exports,” the report said.

Minister of State in the Chancellery of the President for Planning and Investments, prof. Kitila Mkumbo, during his speech in Parliament on June 13, 2024, also noted that the government would review the sales system for agricultural, livestock and forestry products to simplify and enable the creation of a business environment in rural areas.

“The government also plans to create special conditions to attract the construction of small-scale industries in rural areas to start primary processing in strategic sectors, including agriculture, animal husbandry, fisheries and forestry,” he said.

Moreover, the development of Tanzania’s domestic meat processing industry has significantly increased the live animal trade, leading to a significant reduction in live animal exports.

According to the report, while the domestic livestock market almost doubled to 99.8 percent, the value of live animal exports declined by 28.8 percent.

The report showed that the domestic livestock market was valued at P3.47 trillion in 2023, up from P1.74 trillion in the previous month. In total, 2,957,724 cattle, 2,554,266 goats and 273,982 sheep were sold on the market.

In 2022, 2,194,937 cattle, 1,879,623 goats and 201,610 sheep were traded.

However, the live animal export market recorded a decline; last year this included 20,536 cattle and 37,157 goats and sheep worth £44.4 billion. This is down from 23,356 cattle and 39,951 goats worth £62.4 billion sold in 2022.

The report highlights that the decline in live animal exports is attributed to an increase in domestic meat production for export and government efforts to seek new international markets for processed meat.

“Export-oriented expansion of local meat industries, coupled with government initiatives to find new markets overseas such as Hong Kong, Vietnam, Kuwait, Qatar, United Arab Emirates (Dubai), Oman, Jordan, Bahrain, Kenya and Comoros, has shifted the focus from the export of live animals to the export of processed meat,” the report reads.