info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from Mid-Atlantic Day Trips
The current potato chips market belongs to retailers, hotels, restaurants, and homemade. As there is lack of cold storage facilities and finance support, no big industries exists in Tanzania. There is a big potential for potato chips in Tanzania.
Proposed Location
According the the pre-feasibility study, the project can be set up in any industrial area. It is recommended to establish the plant in an area where raw material is easily available, such as the north part of Tanzania. The suggested location for this proposed project is Arusha. For building a potato chips industry, the total land required is approximately 20,600 Sq.ft.The total cost is USD 75thousands.
Market Information
Tanzania is is one of the largest potato producing countries in eastern Africa countries, yet it has very limited storage and processing facilities, as a result of that a substantial proportion of production is wasted. Due to inadequate storage and an less developed processing industry, prices fluctuates and not all of the excess production can be stored or processed for consumption during the off-season.
Tanzania Potato Production
Potato is an important food and cash crop in Tanzania and other eastern African countries. Potato production is growing faster than other major root crops and cereals.
With population doubling every 25 years and urbanization continuing to grow by 13% in the next 10 years, feeding habits are rapidly changing in favor of easy-to-prepare foods such as chips. There is good potential for the growth of processing industry and also good market access for both fresh and frozen potato chips in the region.
Tanzania produces potatoes not only for domestic but for exportation. Every year, Kenya will import lots of fresh potatoes from Tanzania. Therefore, processed potatoes can be great potential in this country as there are so many material supply。
Africa Potato Exports
Reports have shown that potato sub-sector in Africa is expanding faster.Over 18 million metric tons of potato worth over USD 1.9 billion was produced in Burundi, D.R. Congo, Eritrea,
Ethiopia, Kenya, Madagascar, Rwanda, Sudan, Tanzania and Uganda. Potao production has also expanded to non-traditional areas. Adoption of improved varieties has also significantly improved household food security and income. It was also reported that regionally released varieties are being used for processing instead of imported ones in a few cases, substituting for imports. For instance, the use of processing potato varieties, such as Asante and Tigoni in Kenya resulted in an aggregate annual net benefit of Ksh 10 million. These varieties covered approximately 10% of all the area under potato production in 2002.
Demand and Supply
Through amounts of market research, the demand for potato chips is increasing in Tanzania and other eastern African countries and central African countries. 63% of the outlets in Tanzania said that the annual demand for chips is steadily increasing over the years. The demand in Tanzania is showing a net increment as evidenced by 47% of retail outlets.
The supply of potato chips has two channels in Tanzania, which is simple chips processing and not a developed industry.
Retail outlets
Retail outlets cover mostly hotels, bars and restaurants, mobile box retails. The retail outlets process and prepare ready-to-eat chips themselves and sell to consumers directly.
Imports of frozen chips
The second source of chips in Tanzania is imports. As five star hotels and some high income group need international standard and high quality potato chips, imports is the only way to sole it, though the import chips has a higher price than local chips.
Main Equipment
The potato chips manufacturing industry should b equipped with the following machinery:
Washing & Peeling Machine
Potato Chips Machine
Potato Chips Blanching Machine
Potato Chips Dehydration Machin
Potato Chips Frying Machine
Potato Chips De-oiling Machine
Potato Chips Seasoning Machine
Nitrogen Filled Potato Chips Packaging Machine
