Haydom Development Company

Basotu Plantation was the first of the seven big wheat farms in the area to be established; 4 000ha (10 000acres) was planted every year. Wheat yields during the last 7 years of production varied between 0.8 and 1.9 tons/ha; rain fed and without use of fertilizers. The annual precipitation varies between 500mm and 800mm; with a bimodal distribution. The dominant clay soils are alkaline and rich in minerals; Nitrogen deficiency and unpredictable rainfall distribution and amount in each individual year seem to be major factors deciding yields and profit.

The Vision is to establish a sustainable and economic viable production of wheat at Basotu Plantation

The proposed strategy to achieve the target is “Conservation Agriculture” aimed at improved soil productivity and stable higher yields.

The proposed activity) for achieving and stabilizing yields of 2 500 – 3 000kg/ wheat/ha is an on farm “research and development unit” that works closely with other private and governmental research units. Among the tasks of this unit are:

Basotu is located right in the heart of a culture with large herds of cattle grazing and overgrazing land. There has been a long history of conflict between cattle owners considering that they have a right to use the land; classic way of solving the conflict is chasing the cattle and its herdsmen and penalizing “trespassers.” Latest strategies include burning off all grass, leaving the land black and exposed to wind and water erosion.

The overgrazing and the burning of vegetation is a threat to land productivity; it has an effect on animal health; starving cattle in thousands are trampling down and destroying the little what is left of ground cover. The land is left vulnerable for erosion and floods filling up Lake Basotu ; making people to flee their inundated homes.

Mono-cropping for more than 30 years has lead to a set of problems associated with the mono-cropping production system. The “Basotu die-back” or “Basotu yellowing[2]” and difficult weeds e.g. the introduced Mexican Poppy and various monocotyledons are examples.

The Vision for livestock development is to have an economic viable livestock production in the area that also benefits the crop production; in particular the wheat production.

The proposed strategy is to develop relevant on-farm competence in sustainable and profitable fodder production; including improved pasture, both on available non-arable land and on part of the arable land (“the green corridor”). “Phase 1” of this strategy could be for “the local marked,” renting out improved pasture or selling fodder against cash or against labour on the farm but also using the fodder for an on farm livestock unit.

The feasibility of introducing dairy cattle and establishing a core dairy unit for possible UHT (“long life”) milk production could be considered as a “phase 2” , making better use of the resources at Gawal Farm and water from Lake Basotu for the cattle and creating new employment opportunities for the people in the area.

The proposed target is to have the land to increase the productivity of fodder for livestock at least five times[3] by (“activities”):

The erratic rains in the area with frequent long dry spells limits crop production more than any other single factor. Poor food security in the area is a result.

The vision is to harvest most of the rain falling on the 5 318ha of Basotu Plantation in such a way that it benefits the crops, the people, and the livestock on the farm; sparing people living near Lake Basotu from some of the water causing floods.

Much of the farm has only a shallow layer of soil, limiting the amount of water that might be absorbed in the soil layer. One opportunity is to establish a system of contours and dams that make it possible to trap the water and use it for irrigation.

The target is to establish intensive commercial production of crops on the farm during 6-8 months; from November to June; making use of surface water trapped in dams. The type of crops and volume of production is determined by demands and opportunities in the market. The area is considered ideal for seed production; if sufficient and reliable source of irrigation can be provided. A number of vegetable crops; including onions are thriving there; provided some shelter from strong winds (windbreaks) can be established.

There is a secondary school situated on Basotu Plantation offering education from Form 1-4. Youth seeking further education have to search for such far away. The farm centre of Basotu Plantation has buildings and facilities that with minor costs can be developed for an upper secondary school.

The vision is to participate in developing further the local institutions for education and training. Being situated in a community of different religions and denominations much due to the “NAFCO history” bringing in people from other regions of

Tanzania

, the vision is to have an upper secondary school (Form 5-6) based on and respecting the values of these different religions and denominations[5].

The strategy is to facilitate such institutions with buildings and services; including local production of food for students and opportunities for the students to finance their education by employment opportunities during school holidays etc.

There is 4 000ha of arable land at Basotu; all of it used for mono cropping of wheat during the years NAFCO owned the farm.

It is proposed to put all this land back into efficient production; developing a sustainable production system with wheat on 2 000ha in rotation with other crops.

Most of the machinery and equipment on the farm need rehabilitation or is outdated; it is not fit for Conservation Agriculture the proposed new production for Basotu Plantation.

The condition of the machinery that is on the farm at present reduces the actual value of the property as an estimated 350 million T Shs is needed immediately to rehabilitate the tractors; rebuild the seeders and replacing the old “multi till” implements with “one till” implements.

Attachment 1 gives details of proposed expenditures for rehabilitation, modernization, and replacement necessary for establishing a sustainable crop production at Basotu Plantation with wheat as the major crop.

Increasing costs of fuel; value of land and labour costs makes it necessary to take out higher yield than before in order to break even. The strategy is to make use of better seeds, feeding the crop better[6] and providing efficient protection of the crops from pests, diseases, and weeds competing with the crop for moisture, nutrients, and light. Yield targets of 2.5 – 3 tons/ha requires inputs of about 300 000 T Shs/ha before the crop is sold and the revenue is banked.

Whilst about half of the working capital might be provided by short term credits from suppliers of inputs, the other half is needed as ready cash before the crop is sold.

A production target of 50 000 bags from 2 000ha requires at least 300 million T Shs as working capital, in addition to credit from suppliers of inputs.

On the neighbouring Mulbadaw Farm, Haydom Development Company Ltd (HDC Ltd) produced 3 200 tons of wheat in 2006[7], after rehabilitating the dilapidated machinery and implements found there when taking over. This management has been requested and has agreed to manage Basotu Plantation with a target to produce 50 000 bags of wheat annually.

Arable land ( 4 000 ha ) is proposed to be used for crop production for food as describes above; possibly also including some crops in rotations to be used as fodder for livestock.

In connection to erosion control; by contours and water ways; it is proposed to develop structures for water harvesting to be used for small scale irrigation during part of the year; creating opportunities for diversification into intensive horticultural production during part of the year.

Part of the arable land has been abandoned and/or exposed to cattle grazing and compaction during several years. Contours are partly destroyed. In order to bring such land back to productivity; there is a need of bush clearing and breaking by heavy machinery; contour making etc. Estimated costs of breaking compacted land; repair of contours, bush clearing etc are100 million T Shs.

“Less arable” land or land not previously used for wheat covers more than 1 000ha; land used for roads and buildings deducted. This land is proposed used for “permanent vegetation”; becoming part of a proposed “green corridor” managed as an “agro-forestry” zone. It is proposed to manage trees for fuel, fodder, and building materials and to develop improved pastures as a permanent soil cover; - preventing erosion and increasing productivity of the land. Part of this zone is also feasible for construction of dams, harvesting water for livestock and for small scale irrigation during some months of the year.

This part of the land, together with part of the arable land and land west of Basotu Plantation allocated for livestock development (Gawal Farm) is proposed to be the base for the proposed livestock development in the area.

Costs for developing this portion of the land have not been estimated for this bid.

There are office facilities; farm workshop and stores constructed more than 30 years ago. If these buildings are to be repaired and modernized to fit to acceptable 21^st century standard an estimated 100 million T Shs are needed; major repairs/replacement of water and sanitary equipment, sewage system, electrical wiring, ceilings and roofs etc are needed.

The “community hall”; abandoned before completion” is proposed to be completed to accommodate an “upper secondary school”; providing opportunities for Form 4 leavers to complete Form 6 in the area; after leaving the present Mulbadaw Secondary School; allocated on Basotu Plantation. Some of the office space can be made available for the administration of the proposed Form 5 and Form 6 classes. There are buildings and facilities that can be used as canteen, dormitories etc for the students; though it is assumed that additional structures might be needed if many of the students are recruited from areas too far away to continue to live at home.

Most of the residential buildings are at present being occupied by former NAFCO employees or relatives and dependants of these. No maintenance has been carried out for a very long time. The farm operations shall employ some of the occupants and they shall need some of the buildings.

All residential buildings are in need of major repairs and/or long overdue maintenance. An estimated 400 million T Shs are needed in order to upgrade the residential buildings to an acceptable standard. Major repairs of water and sanitary equipment, sewage system, electrical wiring, ceilings and roofs etc are needed on all 41 residential buildings and structures. Some of the old wooden houses might be beyond repair.

The proposed new production technologies require fewer and better trained permanent employees, and residential buildings can be made available for teachers of the proposed upper secondary school.

There is a Lutheran Church located on the farm; near the farm centre and the residential area. This church shall continue to serve the Lutheran congregation and might; provided that the church leaders agree; partly serve also as a “community hall” when needed.

During the time of NAFCO, the employer provided medical services for the employees. Haydom Development Company Ltd intends to do the same in co-operation with one of the hospitals in the area; making use of the same building (“the dispensary”) as before.

It is mentioned above that an estimated input of 350 million T Shs is needed to create necessary production capacity for 2 000ha or more in 2008. These are costs for rehabilitation, modernization, and replacement of outdated or dilapidated equipment.

The tractors need overhaul. Out of the 20 tractors; 4 Versatile 836 tractors and 2 International 1486 tractors are regarded as repairable at acceptable costs. 14 are in need of complete rehabilitation or are regarded as scrap.

The 4 Versatile tractors expected to be repairable at acceptable costs are big enough to be fitted with “one till” implements. Two air seeders are considered to be useful as parts on “one-till” tool bars to be powered by Versatile tractors.

The 7 combine harvesters seems to be beyond repair; though it might be feasible to rehabilitate and modify one or more of the pull-type combine harvesters to be used stationary for leguminous crops. Legumes are likely to become part of a sustainable crop rotation system. One or more of the 7 swathers might also be rehabilitated for such uses. Utilization of straw and production of hay shall need a baler or equivalent equipment; the baler once owned and used for such purposes by Basotu Plantation was sold as non-core equipment.

It is proposed to repair all tractors that are deemed feasible to repair; creating capacity to serve the neighbouring farming communities. In particular, it is proposed that this capacity is used in an outreach program for production of e.g. kartam; making use of the “one till” implements providing transport services from farm to collection points for crops.

The economic growth and development of the company is mainly correlated to the volume of production and to the price obtained.

The major crop during the planning period is wheat. The yield per ha of wheat is the most important factor for the economic result; hence it is the most important issue to address for the company in order to obtain economic growth.

The prices of wheat in 2007 has increased in the World Market and is likely to remain high for some time due to the increasing demand for grains for production of bio-fuel; though this is mainly a demand for maize, it spills over on the demand for other grains.

Prices in

Tanzania

have passed the 400Shs/kg mark. It is expected to remain at this level or higher as long as world market prices remain high[8].

Traditional yield levels are varying with rainfall around 1,5tons/ha; just above breaking even with traditional production methods.

Research carried out with soils from the area indicates opportunities for huge yield responses to fertilizers; provided that appropriate technology for application can be available.

It is proposed to carry out further research and to invest in proper technology with a target of obtaining 3 tons/ha before 2010; which is the same yield level as the commercial wheat farms in West-Kilimanjaro are getting[9]. The research efforts is also regarded as investment in competence; building up local competence for improved crop production on the farm and in the communities interacting with the farm.

By 2012 it is proposed that 4 000 ha is used for crops. Assuming that the output of other crops can be compared with the value of the wheat; the target is to produce wheat and/or other crops equivalent to 100 000 bags of wheat in 2012; valued at 4 billion T Shs farm gate.

The East African market for wheat is increasing in volume. The demand in

Tanzania

is at present above 600 000tons annually; supply depending mainly on import.

Haydom Development Company Ltd is committed to supply the local millers with high quality raw wheat

[1] Equivalent to 10 bags/acre

[2] Possibly caused by soil living fungi associated with wheat; Rhizoctonia spp being one of the possible causing agents

[3] Studies (Dr Njoka, range management Univ. of Nbi ) from similar situations; West Pokot in Kenya , are documenting improvement potentials well beyond five times.

[4] Water harvesting is also a strategy for reducing flooding of Lake Basotu; acting as a buffer; letting the water absorb in the soil building up moisture that might keep water flowing in streams long after rains.

[5] A private ecumenical secondary school; based on common values found in Islamic and Christian traditions

[6] Applying right type and amount of fertilizers in efficient manners

[7] Mulbadaw Farm was managed by others; from HLH and Norway , in 2007; - with and output of not more than 800 tons of wheat.

[8] Tanzania has an opportunity to save huge amounts of foreign exchange by replacing some of the 600 000tons of wheat imported annually by home grown wheat that has equally high or better quality.

[9] Many commercial wheat farms in Europe are getting 9tons/ha; three times the target yield. Such yields are depending on proper irrigation and use of fertilizer.

Proposed future of Basotu Plantation 2008 -2012

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