1. BACKGROUND
The Tanzania Horticultural Association (TAHA) has become the most effective advocate for the horticultural industry with proven success in lobbying and international marketing of the industry. Horticultural industry is the fastest growing sub-sector of the national economy. Established in April, 2004, TAHA has made remarkable strides towards improving the status of the horticultural industry in Tanzania. TAHA is highly representative of the burgeoning floral, vegetable, fruit, seed and cutting exporters. TAHA is a result of reconstitution of the now defunct Tanzania Flower Association (TAFA). This was a necessary step as the defunct TAFA was only focused on the flower industry which is still quite small.

OVERALL OBJECTIVES OF TAHA
TAHA was established with the aim of promoting horticulture and addressing the general and specific needs of its members. This involves among several things providing a collective voicing platform for issues affecting the sector, providing a common front for promoting the members businesses in and outside the country, advocacy for the improvement of the environment in which the sector operates.

TAHA MISSION AND VISION
MISSION
To promote the Horticulture sector in Tanzania to become more profitable, sustainable and participate more effectively in the development of the country.

VISION
A vibrant, prosperous and sustainable horticultural production in Tanzania.

2.0 ACTIVITIES
Taha is a multi tasked organization but its activities are anchored on the four strategic activities namely:
1. Lobbying and advocacy

Representing TAHA members in various forums and defend the interests of its members from undue interferences
Work together with relevant partners/stakeholders and lobby for the interests of its members

To put in place a mechanism for sharing technology and expertise, etc.
ÒOne stop shopÓ where information about the horticultural industry can be obtained.
Update members and other stakeholders on various horticultural developments locally and globally.

Identify member's common problems and providing practical solutions
Organizing technical, working groups, seminars, and workshops on relevant issues
Empower members to attain international standards and certifications as will be deemed necessary and expedient for purposes of attaining and sustaining quality in production.
Developing project proposals, and securing funds for horticultural project implementation.
Coordinating various horticultural projects in Tanzania aiming at improving the competitiveness of the sector

Participation in various fora and trade shows both locally and internationally
Market research and advice to members on quality improvements and the right variety according to international standards
Identify possible development partners to develop relationship with them to secure TAHA of sufficient funds.

3.0 PARTNERSHIPS
TAHA runs programmes to address crosscutting horticultural issues to align governing agencies, policy makers, investment bankers, farmers, exporters, service providers together in a common effort to increase global market competition by pursuing a political and business environment that is dedicated to elevating the potential of the horticultural sector in Tanzania. In this effort, TAHA is receiving great support from the Dutch Government, Tanzanian Government and its various institutions, USAID, and BEST-AC. TAHA is also working with various consultancy firms both local and international to address various challenges impeding the industryÕs growth.

As a member based organization, TAHA has three categories of membership:
Comprehensive, Allied and Associate members. The first two groups share similar benefits except that the later do not have a vote.
Comprehensive: Producers, exporters and processors of horticultural related products - (18 MEMBERS)
Allied: Suppliers of argo inputs, and other service providers in the industry i.e. clearing and forwarding, insurance, security, etc - (7 MEMBERS)
Associate: Small growers' groups/associations, consultancy companies, development partners, individuals, etc. - (57 MEMBERS)

CURRENTLY TAHA HAS A TOTAL OF 82 MEMBERS ALL OVER TANZANIA and its still running a membership drive to expand the scope of its membership in the country

5.0 EMPLOYMENT
TAHA members employ over 10,000 people annually on permanent basis and many more on contract basis. We expect this number to double by year 2010. Out growers make a significant part of vegetable production creating employment opportunities in the rural area. This would increase significantly with expansion of the industry.

6.0 EXPORT INFORMATION
TAHA MEMBERS annual exports is estimated to be tons 9,600- 10,000 per year, equivalent to Euro 50 million. These figures are expected to double in the next five years due to on going farms expansion programmes and new investments in the industry.

Generally, the horticultural industry in Tanzania exports products valued at US $120 million per annum.

7.0 MARKETS
The main market for horticultural products is Europe.

75% -80% of fresh flowers, for example, goes to the auctions in Holland
The members are trying to venture into other markets e.g. USA, Japan and the Middle East
Other markets for the horticultural products mainly fruits and vegetables include regional market i.e. the EA and SADC countries

8.0 ACHIEVEMENTS
In the past three years of operations, TAHA has registered tremendous achievements some of them being:

Promoting the horticultural industry and members products internationally and locally through active participation in various events i.e. international and local meetings, trade shows, establishment of various promotional materials to include the TAHA website www.tanzaniahorticulture.com, banners, fliers, posters, etc.
Market diversification of our members products
Attraction of new investments in the industry
Establishment of the strong link between the industry and the government and also the various development partners
Successfully 1 initiation and implementation of development projects to include the WSSD Public Private Partnership projects, USAID funded projects, Advocacy Projects addressing the infrastructural constraints which is funded by BEST-AC, and Small growers capacity building project under Tanzania Private Sector Foundation (TPSF) Support Programme
Wider membership network in the country.
Increased members production capacity
Members Technical Capacity building through various technical training programmes
Branding of the industry and TAHA locally and internationally especially through media sensitization initiatives.
Formation of HODECT- Horticultural Development Council of Tanzania which is a Public Private Platform (Policy Body) seeking to fast truck horticultural issues for socio-economic growth.

9.0 CHALLENGES
9.1 FINANCE
unfavorable financing terms

Access to Bank Loans: Most Banks consider the horticultural sector as a high risk sector so there is general unwillingness to advance loans to the sector
Interest: Interest rates are high even though world interest rates and Tz. Inflation are low
Tenure: Agriculture requires long terms to repay finance. Long term loans (7-10 years) are not available.

Sectoral Viability: There is no dedicated cargo flight from Tanzania and this negatively impacts the sector in terms of ability to portray itself positively.
Transport costs and access: With limited number of flight at present many exporters have problems accessing freight out of Tanzania and this necessitates trucking to NRB which is an extra cost. Nairobi flights are expensive particularly for the exporters who have low volumes of produce.

ROADS: The growth of horticulture requires accessing more and more suitable land. This at present is very difficult because of the bad roads
AIRPORT: With airfreight being targeted as a key constraint to resolve, careful consideration of the appropriateness and competitiveness of KIA should be taken.
WATER: Tanzania has considerable water resources. These resources are underutilized and ineffectively managed. Horticulture requires irrigation and there is considerable competition for water. Where the law is fairly clear the management and application of the law is lacking.

TRAINING: There is unavailability of properly trained people for the industry. These include skilled workers for irrigation, spray application, quality control, extension and small grower training.
LAND: It is very difficult to obtain land. Illegal squatting is rampant. Land and security authorities rarely exercise their authority to sort out land problems and reference to the courts is very time consuming
SECURITY: Squatting, land invasion (cattle) and various types of theft are serious problems in developing a horticulture business. An inordinate amount of time is spent on insuring ones business is secure relative to these risks.
EXTENSION: The GoT runs an agricultural extension service. However, it is difficult to access this service to promote small grower projects. The service seems designed to help small growers but often takes an adversarial view to interaction with business.
PROJECTS:The GoT runs a number of projects for agricultural development like PADEP and AMSDP. However these projects are difficult to access and seem to be structured in a way that precludes private sector participation.
INPUT AVAILABILITY: Poor supply and high costs of inputs locally is a major problem making the sector less competitive. Bureaucratic procedures and high costs involved in registering products in the country demotivates manufacturers to register a wider range of effective products
MARKET CONDITIONS: Stringent market conditions in the importing countries are a strain on the exporters. Evolution of multiple standards resulting to increased compliance costs has been a stumbling block for many growers in accessing new markets.

10.0 HORTICULTURAL INVESTMENT OPPORTUNITIES

Air frieght operators
Manufacturing of raw materials (packaging materials, agro inputs, driplines, planting troughs, etc)
High value vegetable exporting
Processing and canning of fruits
Flower farming
Laboratory-testing and analysis

11.0 WHY SHOULD SOMEONE THINK OF INVESTING IN THE HORTICULTURAL INDUSTRY IN TZ
The following are some of the comparitive advantages:

Favorable climate - from tropical to temperate climate
Wide network of rivers and lakes
Competitive labor costs
Political stability and peaceful people of Tanzania
Existence of a vibrant Association - TAHA
Support from the government