Livestock Sector Transformation Plan (LSTP) 2022/23 - 2026/27

i THE UNITED REPUBLIC OF TANZANIA MINISTRY OF LIVESTOCK AND FISHERIES LIVESTOCK SECTOR TRANSFORMATION PLAN (LSTP) 2022/23 - 2026/27 February, 2022 ii EXECUTIVE SUMMARY Although Tanzania ranks the second in terms of cattle population in Africa, contribution of livestock sector into the national income is not enormous, as livestock-related activities contribute only 27% of the Agricultural Sector contribution to the economy and 7.1% to Tanzania’s GDP in particular; with sector growth at 5.0% (NBS 2020). This growth largely reflects increases in livestock numbers, rather than productivity gains. The low contribution of livestock in the economy is attributed to many factors, such as animal breeds with low productivity; presence of livestock diseases; shortage of water infrastructure and pasture; inadequate markets and value addition of livestock and livestock products; and inadequate extension services. Although the Agriculture Sector Development Plan phase two (ASDP II) has identified strategic interventions that should be implemented to increase agricultural production, productivity, and commercialization which is inclusive of the livestock sector; absence of a transformational plan for the livestock sector has persistently hindered successful implementation of previous investment initiatives for the sector. Thus, the Government has decided to formulate the Livestock Sector Transformation Plan (LSTP) which sets out livestock-sector investment areas, including productive high-quality livestock breeds; water, pasture and animal feeds; animal health; extension services; livestock research and training services; value addition of livestock products; and national ranching company. The key targeted investment areas for transformation of livestock sector will be implemented for a period of five years from fiscal year 2022/23 to 2026/27, and the LSTP is estimated to cost a total of TZS 1,949,671,644,815. If the identified investment areas will be successfully implemented, the anticipated transformation of the sector has potentially positive impact to the economy through increased supply of raw materials into the meat, milk and hides/skin processing industries, and rural livestock keepers in increasing their incomes while urban consumers will be assured of reliable supply of animal products. The success of the LSTP is also essential to the achievement of food and nutrition security at household and national levels. During the five years of its implementation, the LSTP intends to strengthen the livestock sector to be more productive, contribute to industrial economy and widening the extent of domestic and foreign market of livestock and livestock products. More specifically, it intends to improve livestock breeds in order to increase livestock productivity; improve access to pasture and water for livestock; strengthen animal health systems, veterinary public health, quality control of livestock inputs and facilitate achievement of safety standards of livestock products for domestic and foreign trade; enhance provision of extension services for commercialization of livestock farming; to strengthen provision of research and training services; to promote value addition of livestock products; and create enabling environment for business and investment in the livestock sector. iii SUMMARY OF FINANCIAL RESOURCES REQUIREMENT FOR IMPLEMENTANTION OF LIVESTOCK SECTOR TRANSFORMATION PLAN FOR A PERIOD 2022/2023 – 2026/2027 Table No.1: Summary of Financial Resource Requirements for Implementantion LSTP SN. AREA 2022/23 2023/24 2024/25 2025/26 2026/27 TOTAL (Tsh) 1 Productive Livestock Breeds 30,491,162,452 21,812,226,572 21,162,577,342 15,752,595,513 15,725,050,119 104,943,611,999 2 Pasture Feed and Water for Livestock 92,690,000,000 266,880,000,000 190,001,000,000 184,001,000,000 145,821,000,000 879,393,000,000 3 Animal Health 142,010,400,000 160,970,400,000 173,442,400,000 163,560,400,000 134,103,800,000 774,087,400,000 4 Livestock Extension Services 13,968,320,030 8,584,400,000 7,993,600,000 7,220,000,000 6,020,000,000 43,786,320,030 5 Livestock Research and Training 12,726,909,961 12,820,658,125 10,797,444,700 11,683,000,000 13,683,800,000 61,711,812,786 6 Value Addition of Livestock Products 11,850,000,000 11,948,000,000 2,940,000,000 2,940,000,000 540,000,000 30,218,000,000 7 National Ranching Company 19,407,500,000 19,415,500,000 10,469,500,000 1,969,500,000 4,269,500,000 55,531,500,000 TOTAL (TZS) 323,144,292,443 502,431,184,697 416,806,522,042 387,126,495,513 320,163,150,119 1,949,671,644,815 1 TABLE OF CONTENTS 1. INTRODUCTION .................................................................................................... 3 2. PUBLIC INVESTMENT IN LIVESTOCK SECTOR ............................................... 5 3. THE LIVESTOCK SECTOR TRANSFORMATION PLAN IN LINE WITH OTHER PLANNING DIRECTIONS .................................................................................................. 6 4. OBJECTIVES OF THE PLAN ............................................................................... 6 5. KEY AREAS OF THE LIVESTOCK SECTOR TRANSFORMATION PLAN ........ 7 5.1 Access to Livestock Breeds with High Productivity .............................................. 7 5.1.1 Artificial Insemination (AI) ............................................................................................................... 8 5.1.2 Use of Improved Bulls ..................................................................................................................... 8 5.1.3 Strengthening Livestock Multiplication Units (LMU) ................................................................... 9 5.1.3.1 Cost- Benefit Analysis on Investment at Mabuki Livestock Multiplication Unit ...................... 9 5.1.3.2 Cost- Benefit Analysis on Investment at Kitulo Livestock Multiplication Unit ................... 10 5.1.3.3 Cost-Benefit Analysis on Investment at Ngerengere Livestock Multiplication Unit ......... 11 5.1.3.4 Cost- Benefit Analysis on Investment at Nangaramo Livestock Multiplication Unit ......... 12 5.1.3.5 Cost- Benefit Analysis on Investment at Sao Hill Livestock Multiplication Unit ................ 12 5.2 Strengthening Pasture and Water Services for Livestock ................................... 13 5.2.1 Pasture ............................................................................................................................................ 13 5.2.2 Water for Livestock ........................................................................................................................ 14 5.2.2.1 Cost-Benefit analysis of Investing in Enhancing pasture and Water availability for Livestock 16 2 5.3 Strengthening Animal Health ................................................................................... 16 5.3.1 Control of Tick-borne Diseases ................................................................................................... 16 5.3.2 Availability of Vaccines in the Country ........................................................................................ 17 5.3.3 Strengthening Research and Production of Vaccines .............................................................. 18 5.3.4 Strengthening TVLA's ability to Test Livestock Pesticides and Chemical Residues on Livestock Products for Ensuring Drug Stability and Food safety .................................................................. 19 5.3.5 Ensure the Safety of Livestock and Livestock Products to Facilitate International Trade .. 19 5.3.6 Private Sector Involvement in Strengthening Livestock Health .............................................. 19 5.3.7 Strategic Activities for Improving Animal Health ....................................................................... 20 5.3.7.1 Cost-Benefit analysis of Investing in Animal Health ................................................................. 20 5.4 Improving extension services .................................................................................. 21 5.5 Strenghening Livestock Research and Training Services .................................. 22 5.5.1 Livestock Research ....................................................................................................................... 22 5.5.2 Livestock Training .......................................................................................................................... 24 5.6 Value Addition of Livestock Products .................................................................... 24 5.6.1 Leather Indutries ............................................................................................................................ 24 5.6.2 Meat Industries ............................................................................................................................... 25 5.6.2.1 Livestock Fattening ................................................................................................................... 25 5.6.2.2 Poultry and Piggery Farming ................................................................................................... 27 5.6.2.3 Livestock Markets ...................................................................................................................... 28 5.6.3 Milk Processing Industries ............................................................................................................ 29 5.6.3.1 Analysis of Cost-Benefit for Investing in Livestock Products Value Addition ................... 31 5.6.4 Livestock Development Fund ....................................................................................................... 31 5.6 Strengthen National Ranching Company ............................................................... 32 6 IMPLEMENTATION PLAN .................................................................................. 34 3 1. INTRODUCTION Tanzania ranks second in Africa after Ethiopia in terms of cattle stockpiling. According to National Sample Census of Agriculture 2019/20, Tanzania stocks 33.9 million cattle, other livestock species include 24.5 million goats, 8.5 million sheep and 87.7 poultry. In addition, the Economic Survey Report of 2020, indicates that the livestock sector accounts for 27% of the Agricultural Sector contribution to GDP, of which 40% arises from beef production, 30% from the dairy industry, and the remaining 30% is contributed by other livestock products such as eggs, hides and skin. The National Sample Census of Agriculture further indicates that approximately 33% of households in the country are engaged in both crops and livestock production. In addition, the proportion of the percentage of household income generated from animal husbandry come from chickens (53%), cattle (32%), goats (10%), pigs (4%); and sheep (1%). Despite recorded achievements, the sector in the country continues to face some challenges, including: (i) Animal breeds with low productivity: The national herd is dominated by indigenous cattle which are currently displaying low productivity, but they have much potential if feed, health and breed improvements can be made. The main breeds of beef cattle in the country include: Tanzania Shorthorn Zebu (TSHZ) characterized by small size mature body weight (200–350 kg); Longhorn Cattle (LHC) such as the Ankole which is characterized by large matured body weight (500–730 kg); and the Boran which has a large body weight (500–800 kg). On the other hand, milk production for native cow per day remains low at between 0.5 to 2 litres compared to pure dairy breed that could produce between 20 to 30 litres per day. Similarly, the productivity from local chickens stands at 45 eggs per hen per 4 year comparing to layers with capacity to produce an average of 250 eggs per hen per year. (ii) Presence of livestock diseases: Livestock diseases continue to impose huge operation costs on farmers and it is estimated that total cost from treating Foot and Mouth Disease (FMD), Peste des Petits Ruminants (PPR) and Newcastle Disease (ND) in the country stands at 101.8 Billion Shillings per year. Meanwhile, the loss estimates from Tick-borne diseases is estimated at 150 billion shillings per annum. In addition, the diseases not only affect human health but also deter meat trade; nationally and internationally. (iii) Shortage of water infrastructure and pasture: water and pasture shortages contribute greatly to livestock deaths and production of substandard livestock to meet market requirements especially in the meat and milk processing industry. During dry seasons, milk and meat production comes to minimum, hampering value chain. Also, search of water and pasture leads to conflicts between pastoralists and other users of land resources. (iv) Inadequate markets and value addition of livestock and livestock products: the livestock sector is facing critical shortage of appropriate infrastructure necessary to facilitate trade within domestic and foreign markets. There is also limited value additions to livestock products, thus limiting availability of various livestock commodities. (v) Inadequate extension services: shortage of Extension Officers at the Village, Ward and District Council levels as well as inadequate working tools and facilities; including transport and extension tool-kits remain a matter of concern in the livestock sector. The Extension Staff also do not undertake regular refresher training courses to acquire updated knowledge according to technological and economical changes. 5 2. PUBLIC INVESTMENT IN LIVESTOCK SECTOR Livestock sector in Tanzania is growing at a slow rate of 5.0% while contributing only 7.1% to the national GDP. That slow growth rate and little contribution of the sector to the GDP are attributed to low investment in the livestock sector, from both public and private stakeholders. Over the past five years (2017/18 to 2021/22), the amount of public financial resources allocated to the livestock sector has been insignificant compared to actual needs. It is estimated that an average of at least TZS 400 billion per year from public investments is needed in order to allow the livestock sector to optimally contribute to the economy. Over the past five years, the budget allocated to livestock sector has been at most 4 percent of its actual annual demand. Public investment in the livestock sector is shown in the graphs below: 80.00% 60.00% 40.00% 20.00% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 2,000,000,000.00 4,000,000,000.00 6,000,000,000.00 8,000,000,000.00 10,000,000,000.00 12,000,000,000.00 14,000,000,000.00 16,000,000,000.00 18,000,000,000.00 2017/18 2018/19 2019/20 2020/21 2021/22 Re so ur ce s A llo ca te d (T ZS ) Fiscal Year TREND OF PUBLIC RESOURCES ALLOCATED IN THE LIVESTOCK SECTOR OTHER THAN EMOLUMENT FOR FIVE YEARS PERIOD Other Chages (OC) Development Other Charges (OC) Development 6 3. THE LIVESTOCK SECTOR TRANSFORMATION PLAN IN LINE WITH OTHER PLANNING DIRECTIONS This plan, which aims at transforming livestock sector along with commodity value chains is being developed in line with the: § National Development Vision 2025; § National Long-term Development Plan (2011/12 - 2025/26); § The Five-Year Development Plan Phase III (2021/22 - 2025/26); § Agricultural Sector Development Program Phase II (ASDP II). § The National Livestock Policy of 2006 and § Tanzania Livestock Master Plan (TLMP), Procedures for financing, implementing and monitoring of strategic areas are guided by the structure and framework of the Agricultural Sector Development Program Phase II (ASDP II). The target is to improve livestock production and productivity in order to accelerate investment in livestock processing industries and livestock trade (both domestically and internationally). It is highly anticipated that implementation of this plan will increase productivity to the livestock sector through enhancing reliable market access for livestock and livestock products; increase employment opportunities; expand tax base and non-tax revenue; and improve food security and nutrition in the country. 4. OBJECTIVES OF THE PLAN The overaching objective of the plan is “Strengthening the livestock sector to be more productive, contributing to industrial economy and widening the extent of domestic and foreign market of livestock and livestock products”. 7 Specific objectives are to: (i) Improve livestock breeds in order to increase livestock productivity; (ii) Improve access to pasture and water for livestock; (iii) Strengthen animal health systems, veterinary public health, quality control of livestock inputs and facilitate achievement of safety standards for livestock products for domestic and foreign trade; (iv) Enhance provision of extension services for commercialization of livestock farming; (v) Strengthen provision of research and training services; (vi) Promote value addition of livestock products; and (vii) Create enabling environment for business and investment in the livestock sector. 5. KEY AREAS OF THE LIVESTOCK SECTOR TRANSFORMATION PLAN Key targeted areas for transformation of livestock sector over a period of next five years (2022/23 - 2026/27) are estimated at total cost of TZS 1,949,671,644,815 (Appendix No.1). These areas include: (i) Productive High-quality Livestock Breeds; (ii) Water, Pasture and Animal Feeds; (iii) Animal Health; (iv) Extension Services; (v) Livestock Research and Training Services; (vi) Value Addition of Livestock Products; and (vii) National Ranching Company. 5.1 Access to Livestock Breeds with High Productivity The national herd is dominated by indigenous livestock which are currently displaying low productivity, but they have much potential if feed, health and breed improvements can be made. Various interventions have been set; including Massive Artificial Insemination (AI), 8 the use of improved bulls, and strengthening production and dissemination of heifer for beef and milk. 5.1.1 Artificial Insemination (AI) The AI benefits include rapid dispersal of quality livestock breed, avoiding inbreeding, disease control and reduce breeding cost. However, the insermination programmes face some difficulties including shortage of modern equipment and machinery at the National Artificial Insermination Center (NAIC) in Arusha and 7 Zonal Artificial Insermination centers; shortage of extension Officers and limited knowledge from livestock farmers. In order to accelerate massive Artificial Insermination, the following strategies will be adopted: (i) Strengthening the NAIC to produce 1,500,000 doses of livestock siemens per annum and support seven (7) Zonal Artificial Insemination Centers by providing modern equipments including seven (7) motorcycles, 21 cylinders with a capacity of 35 and 50 litres of Liquid Nitrogen, pistolets and AI Tool Kits; (ii) Inseminating 500,000 cattle per year in strategic areas; and (iii) Providing training on Artificial Insemination to 920 Extension Officers in Local Government Authorities and the private sector. 5.1.2 Use of Improved Bulls The Ministry through its institutions and the private sector continue to produce and promote the utilization of improved bulls for enhancement of breeds. However, there are challenges persisting such as: (i) Limited statistics on improved bulls in the country due to weak registration systems; (ii) Expensive purchasing and caring costs of improved bulls comparing to Artificial Insemination technology; and (iii) Inadequate control among existing bulls over inbreeding. Strategies to be implemented to enhance the use of improved bulls include: 9 (i) Creating enabling environment for private sector engagement in importation of improved bulls as well as providing incentives and relieve levies involved in importation of improved bulls; (ii) Strengthening livestock identification, registration and traceability systems; (iii) Establishing and operationalizing bulls’ identification and selection from existing farms and farmers within Tanzania ; and (iv) Produce improved bulls from Livestock Multiplication Units and sale to livestock farmers. 5.1.3 Strengthening Livestock Multiplication Units (LMU) In order to step up production of beef and dairy cattle in 14 NARCO ranches and 5 Government Livestock Multiplication Units, the following strategies will be implemented: (i) Increasing breeding stock in five (5) Livestock Multiplication Units from 5,109 to 21,200; (ii) Constructing of water infrastructure; boreholes and charcoal dams for livestock in LMUs ; and (iii) Purchasing of farm machinery (bailers, choppers, mowers, hay rake, tractors and vehicles) for pasture production. The aim is to increase the population of pure and crossbreed’s heifer for sale to livestock farmers at affordable price. 5.1.3.1 Cost- Benefit Analysis on Investment at Mabuki Livestock Multiplication Unit The Costs and Benefits analysis performed at Mabuki Livestock Multiplication Unit (LMU) reveales that if the farms are invested at full capacity and efficiently utilized, it has the potential to make significant profit. These benefits are outlined in the following commercial indicators: 10 (i) Cost- Benefit Ratio Costs and Benefits analysis on investment provides that the Benefit Cost Ratio for Mabuki Livestock Multiplication Unit (LMU) is TZS. 2.51 of which every one shilling invested in Mabuki (LMU) will in turn produce two shillings and fifty-one only. (ii) Net Present Value - NPV The analysis reveales that, the Net Present Value is TZS. 17,653,657,877 and repayment period is 13 months. (iii) Internal Rate of Return – IRR Production costs analysis of Mabuki LMU and the revenue to be generated from the sale of cattle and milk also reveales that, the Internal Rate of Return (IRR) is 92%. 5.1.3.2 Cost- Benefit Analysis on Investment at Kitulo Livestock Multiplication Unit Costs and Benefits analysis on investment at Kitulo Livestock Multiplication Unit (LMU) reveales that the farm has huge potential to make a significant profitability as compared to the costs to be invested. Analysis indicates that even without the economic and social benefits considerations, strengthening the Kitulo Livestock Multiplication Unit, has the potential to generate profits for every Shilling invested, (attachment No. 1b). as outlined in the following indicators: (i) Cost- Benefit Ratio - BCR Costs and Benefits analysis on investment indicates that the Benefit Cost Ratio for Kitulo Livestock Multiplication Unit (LMU) is TZS. 2.21, which means for every one shilling invested in Kitulo (LMU) it will in turn produce two shillings and twenty-one cents. 11 (ii) Net Present Value – NPV The Net Present Value is TZS. 28,520,420,484 with the repayment period of 13 month. (iii) Internal Rate of Return – IRR Production costs analysis in the Kitulo LMU reveales that the Internal Investment Cost Rate (IRR) is 70%. 5.1.3.3 Cost-Benefit Analysis on Investment at Ngerengere Livestock Multiplication Unit Costs and Benefits analysis on investment at Ngerengere Livestock Multiplication Unit (LMU) reveales that even without the economic and social benefits the farm has the potential to generate profits for every Shilling invested, (attachment No. 1c). These benefits are outlined in the following indicators: (i) Cost- Benefit Ratio The Benefit Cost Ratio for Ngerengere Livestock Multiplication Unit (LMU) is TZS. 2.10. This reveales that for every one shilling invested in Ngerengere (LMU) it will produce two shillings and ten cents. (ii) Net Present Value - NPV The Net Present Value is TZS. 3,344,206,058 with the repayment period of 15 months. (iii) Internal Rate of Return – IRR Production costs analysis provides that the Internal Investment Cost Rate (IRR) is 43% 12 5.1.3.4 Cost- Benefit Analysis on Investment at Nangaramo Livestock Multiplication Unit Costs and Benefits analysis on investment at Nangaramo Livestock Multiplication Unit (LMU) revealed that if it is capitalized for full investment, using the resources available and utilized at full capacity, it has the potential to make a significant profit compared to the costs to be invested. Analysis also provides that even without the economic and social benefits of strengthening the Nangaramo LMU, still the farm has the potential to generate profits for every Shilling invested, (attachment No. 1d). These benefits are outlined in the following indicators: (i) Cost- Benefit Ratio The Cost- Benefit Ratio for Nangaramo Livestock Multiplication Unit (LMU) is TZS. 1.44, which means for every one shilling invested in Nangaramo (LMU) it will generate one shilling and forty-four cents. (ii) Net Present Value - NPV The Net Present Value is TZS. 2,297,209,701 and the repayment period is 18 months. (iii) Internal Rate of Return – IRR Production costs analysis in the Nangaramo LMU and the various revenue generated from the sale of cattle and milk reveales that the Internal Investment Cost Rate (IRR) is 23%. 5.1.3.5 Cost- Benefit Analysis on Investment at Sao Hill Livestock Multiplication Unit Like other farms, the Costs and Benefits analysis on investment at Sao Hill Livestock Multiplication Unit (LMU) also reveales that the farm has the potential to generate profits 13 for every Shilling invested, (attachment No. 1e). These benefits are outlined in the following indicators: (i) Cost- Benefit Ratio The Cost- Benefit Ratio for Sao Hill Livestock Multiplication Unit (LMU) is TZS. 4.52. This means that for every one shilling invested in Sao Hill (LMU) it will generate four shillings and fifty-two cents. (ii) Net Present Value - NPV The analysis shows that, the Net Present Value is TZS. 21,588,419,427 and the repayment period is 12 months. (iii) Internal Rate of Return – IRR Production costs analysis in the Sao Hill LMU and the various revenue generated from the sale of cattle and milk has revealed that the Internal Rate of Returns (IRR) is 180%, if the investment produces at full capacity. 5.2 Strengthening Pasture and Water Services for Livestock 5.2.1 Pasture A total number of Livestock Units (LU) in Tanzania is 41.2 million requiring a grazing area of 1031 million hectares. As of 2022, the grazing land dermacated from the villages through Village Land Use plan (VLU) is only 3.06 milions hactares. In order to meet pasture requirement for 41.2 milions Livestock Units per year, the grazing lands must be developed and managed through acts such as planting pastures, reducing shrubs/bush, clearing and removing invasive weeds. 1 This demand of grazing lands is based on the ratio of one Livestock Unit to 2.5 Hacters of grazing land. 14 While demand for Pasture seeds in the country is approximately 22,954 tonnes per year, the production of pasture seeds from Government and private farms is 11.41 tonnes per year, thus resulting in shortage of 22,943 tonnes per year. The following challenges continue to hamper efforts in pasture and pasture seeds production in the country: (i) Limited access to pasture seeds; (ii) Presence of prolonged drought; (iii) Presence of invasive weeds species in grazing lands; (iv) Most of Grazing lands have not been dermacated, registered and gazetted; and (v) Inadequate awareness of farmers on pasture farming to ensure availabilitiy of pasture throughout the year. Strategies for developing grazing areas and pasture seeds production include: (i) Increasing pasture seeds production in Government farms and encouraging the private sector to invest in pasture and pasture seeds production; (ii) Establishing commercialized Pasture Seeds production Farms such as Shishiyu Holding Ground (Maswa), Hanga Ngadinda Farm (Ruvuma) and Mivumoni (Pangani); (iii) Allocating, dermacating, surveying, issuing tittle deeds and gazzeting grazing areas; (iv) Certification of pasture seeds; (v) Undertaking researches and developing appropriate technologies for invasive weed control; and (vi) Establishing Farmers Field Schools for raising awareness on pasture farming and pasture varieties according to ecology. 5.2.2 Water for Livestock The production of healthy and productive livestock highly depends on the availability of reliable water sources. The 41.2 million livestock units consume an average of 15 5,263,300,000 liters of water per year equivalent to 35 liters of water per day per livestock unit. To date, the existing total number of charcoal dams are 1,384 compared to actual demand of 1,843 charcoal dams, creating a gap of 456 charcoal dams. Likewise, the existing bore holes are 104 while the actual demand stands at 225. Inadequacy of pasture and water has led to several deaths of livestock particularly in Arusha, Kilimanjaro, Manyara, Morogoro, Tanga and Coast regions. Challenges facing availability of water for livestock include: (i) Limited participation of livestock farmers and the private sector in construction and maintenance of water infrastructure for livestock; (ii) Inadequate management and sustainability of water infrastructures upon completion and handing over; and (iii) Presence of prolonged and severe drought in some areas. In collaboration with livestock farmers and other stakeholders, the following strategies will be implemented to improve accessibility to water: (i) Sensitizing and engaging livestock farming communities to contribute on construction of water infrastructure for livestock; (ii) Constructing 300 charcoal dams; (iii) Drilling 250 bore holes; (iv) Providing education to livestock farmers on water conservation and management ; and (v) Incorporating water requirements for livestock into water projects for human consumption. 16 5.2.2.1 Cost-Benefit analysis of Investing in Enhancing pasture and Water availability for Livestock Analysis of Benefits and Investment Costs using the 9% interest rate, on grazing area and water for livestock reveals that this area is not commercially viable compared to the costs to be invested. However, the area plays a key role in increasing productivity of livestock products and thus contributing to the availability of raw materials in the meat and dairy processing industries as well as food security in the country. The analysis is as outlined below: (i) Cost-Benefit Ratio The Cost Benefits Analysis set out in Appendix No.2 indicates that the ratio of Profit and Costs in the grazing and water area for livestock is 0.53. This means that every single shilling invested in strengthening availability of pasture and water for livestock will produce fifty-three cents. (ii) Net Present Value - NPV The Net Present Value is TZS (113,131,416,095). Thus, investment in the pasture production and water area for livestock creates a loss of shillings 113,131,416,095. However, the area has significant economic and social benefits (Socio-Economic Variability) such as increased productivity in livestock products especially dairy products as well as reduction of land conflicts between pastoralists and other land users. 5.3 Strengthening Animal Health 5.3.1 Control of Tick-borne Diseases Uncontrolled tick-borne diseases account for 72 percent of all cattle deaths in the country. These include East Coast Fever (ECF), Anaplasmosis, Babesiosis and Heart Water. The losses are at 150 billion shillings per year due to deaths and medical expenses. Other negative consequences include reduced quality products, leather value depreciation, weakening working of animals (oxenization); abortion and calf stunting. 17 Timely livestock dipping and vaccination in a period of three years could assist in reducing mortality from 72% to 36% and losses by 70% from 150 billion shillings to 45 billion shillings per year. In addition, other zoonoses diseases such as rabies, anthrax and Brucellosis, continue to affect human’s health. Therefore, intervention to vaccinate and eradicate these diseases remains crucial. Prevalency of Transboundary Animal Diseases (TADs) such as Foot and Mouth Disease (FMD) constraints trade in livestock and animal products locally and abroad, depriving revenue of the country. Through coordinated vaccination efforts nationawide, diseases such as Rinderpest has been eradicated in Tanzania. According to the World Animal Health Organization (OIE), up to 70% of existing livestock vaccines are needed in order to produce positive results in the control of Livestock diseases. Tanzania has attained only 10% of required livestock vaccination, and factors contributing to low rate include – (i) Unaccessible vaccines for some veterinary diseases when needed; (ii) The high cost of animal vaccines imported from abroad; (iii) Inadequate awareness of farmers on the importance of regular animal vaccination; and (iv) Lack of necessary infrastructure to facilitate international trade (eg. quarantine centers and holding grounds). 5.3.2 Availability of Vaccines in the Country Despite of producing vaccines from 3 factories, the imports continue to account 60% to 70% of the country’s demand. In reducing the burden of foreign exchange spending from importation, the country could benefit from the following massive internal production: (i) Obtaining vaccines that are consistent to parasites present in the country; (ii) Controlling the potential for introduction of new animal disease parasites into the country through imported vaccines; (iii) Building capacity of local experts; and 18 (iv) Selling at affordable prices and guaranteeing adequate coverage of vaccines to farmers. 5.3.3 Strengthening Research and Production of Vaccines The country’s production of vaccines stands at 65,000,000 doses per year compared to 841,104,000 doses required per year. Out of 13 critical identified diseases in the country, only seven (7) vaccines are being produced by the Tanzania Veterinary Laboratory Agency (TVLA) through its Tanzania Vaccine Institute (TVI) which are: (i) Anthrax; (ii) Black Quarter; (iii) Combination of Anthrax and Black Quarter (Blanthrax); (iv) New Castle; (v) Brucellosis; (vi) Contagious Bovine Pleuropneumonia (CBPP); and (vii) Contagious Caprine Pleuropneumonia (CCPP) Efforts to enhance production capability of existing vaccine and new vaccines must be complimented by strengthening of the Agency’s storage and distribution infrastructure. In addition, various concerted efforts are being deployed to enhance the Agency’s internal capacity to be able to produce vaccines for the following diseases: (i) Foot and Mouth Disease (FMD); (ii) East and Coast Fever (ECF); (iii) Peste des Petits Ruminants (PPR); (iv) Lumpy Skin Diseases (LSD); (v) Rabies; (vi) African Swine Fever; and (vii) Infectious Bursitis. 19 5.3.4 Strengthening TVLA's ability to Test Livestock Pesticides and Chemical Residues on Livestock Products for Ensuring Drug Stability and Food safety The Government’s role to test and register animals’ pesticides as well as monitoring the quality and effectiveness of pesticides, will be maintained and improved accordingly. Therefore, efforts by the Agency to provide quality services, to have laboratories capable of testing samples of animal pesticides, efficacy of dip wash and animal products, will involve building the capacity of human resources to function in internationally accepted standards. 5.3.5 Ensure the Safety of Livestock and Livestock Products to Facilitate International Trade In order to ensure safety of livestock and livestock products to meet international trade requirements we need to improve livestock facilities. The facilities will be improved to cater for needs of livestock health and animal products safety, including livestock holding grounds and quarantine stations in accordance to safety requirements of conducting foreign trade as articulated by the World Animal Health Organization (OIE) and World Trade Organization (WTO). 5.3.6 Private Sector Involvement in Strengthening Livestock Health The involvement of stakeholders including private sector, financial institutions, industrial investors, livestock farmers, traders, processors in areas of veterinary services, production of vaccines, as well as construction of veterinary infrastructure such as dips, fittings and veterinary clinics; will be emphasized. The government plan is to make bulk procurement of East Coast Fever; and Foot and Mouth Disease vaccines and distribute them to private sector at affordable prices for effective dissemination of vaccines and diseases control. 20 5.3.7 Strategic Activities for Improving Animal Health In order to improve animal health, quality control of livestock inputs and facilitate the achievement of safety standards for livestock and livestock products to meet domestic and international trade requirement, the following functions will be implemented: (i) Strengthening vector born disease control; (ii) Strengthening surveillance system, prevention and control of viral and bacterial diseases; (iii) Strengthening vaccines production institutions specifically TVLA and other private companies; (iv) Stregthening research on vaccines and animal diseases; and (v) Establishing comprehensive ICT systems for disease surveillance. 5.3.7.1 Cost-Benefit analysis of Investing in Animal Health Analysis of Profits and Investment Costs using the 9% interest rate in the area of livestock improvement, reveals that if this area is fully funded and invested by using available resources; then the area has the potential to make a profit compared to the costs involved as follows: (i) Benefit Cost Ratio Cost Benefits analysis provides that the ratio of Profit and Costs in the area of animal health improvement is 1.03 shillings, meaning that in every single shilling invested in improving animal health, it will generate one shilling and three cents. (ii) Net Present Value (NPV) Analysis also provides that, if the area to improve animal health is invested properly it is possible to repay the money within 37 months. In addition, the Net Present Value is TZS 24,487,410,006. Thus, investment in the livestock health 21 sector may increase the Livestock Sector's contribution to Government revenue and GDP as a whole. (iii) Internal Rate of Return (IRR) Analysis of production costs in improving animal health and the various benefits that can be gained from washing and selling vaccines for Foot and Mouth Disease (FMD), East Coast Fever (ECF), Rabies, Lumpy Skin Disease (LSD), Gumboro and PPR in Goat and Sheep indicates that the Internal Investment Cost Rate (IRR) is 13.8 percent. 5.4 Improving extension services Extension services are important to livestock farmers in learning and adoption of appropriate farming technology. The available data indicates that there are only 3,642 extension officers compared to the actual demand of 13,279 extension officers. This situation results in a shortage of 9,995 extension officers in the country. The provision of extension services is constrained by inadequate training centers, inadequate equipment and transport facilities especially motorcycles and vehicles, as well as limited availability of demonstration farms/farmer field schools to enable hands-on skills for professionals and extension officers in the country. Strategies to address challenges associated with extension services include: (i) Strengthening extension services delivery and increasing coverage to livestock farmers; and equipping extension officers with transport facilities including 4,016 motorcycles and 184 vehicles for extension officers in 184 Councils, 3,956 wards and 61 Ministry centers; (ii) Purchasing Artificial Insemination Kit for Livestock Extension Officers (WLEOs and VLEOs) in strategic areas of the Southern and Northern highlands, Central and Western regions, and Coastal and Lake Zones; (iii) Building capacity to farmers on commercial livestock farming; (iv) Building capacity to livestock extension officers through training and provision of extension delivery tool kits in Local Government Authorities; 22 (v) Strengthening forums with livestock stakeholders across the value chain; (vi) Facilitating establishment and strengthening of livestock cooperatives; (vii) Establishing and strengthening e-Extension services; (viii) Developing an electronic livestock registration system, provision and management of extension services; (ix) Strengthening extension services management systems including performance contract agreement; and (x) Strengthening Youth and Women Incubation Centres for commercial livestock farming in 3 areas (Lugoba, ZVC Sumbawanga and ZVC Iringa) and establishing 830 Livestock Farmers Field Schools (FFSs). 5.5 Strenghening Livestock Research and Training Services 5.5.1 Livestock Research Livestock research in the country is managed by the Tanzania Livestock Research Institute (TALIRI). TALIRI carries out its responsibilities through seven centres located in six ecological zones namely; Eastern Zone (TALIRI Tanga), Central Zone (TALIRI Mpwapwa and TALIRI Kongwa), Northern Zone (TALIRI West Kilimanjaro), Southern Zone (TALIRI Naliendele), Southern Highlands Region (TALIRI Uyole) and Lake Region (TALIRI Mabuki). Research in the livestock sector aims to enhance and improve livestock production and productivity, hence contribute to commercialized farming, food security and nutrition and reducing poverty. Currently, researches conducted in the country aim to identify and develop appropriate technologies that will contribute to the development of the livestock sector. In general, livestock research faces various challenges including: (i) Limited investment of financial and human resources to facilitate supportive infrastructures for conducting research activities (eg. modern laboratories and installation of tools and equipment); (ii) Inadequate innovative researches that are tailored to address main challenges in livestock sectors; 23 (iii) Inadequate dissemination of research findings; and (iv) Limited involvement of private sectors in investment on livestock research. The following results are expected to occur when training and research is strengthened: (i) Secure access to quality livestock breeds (cattle, goats, pigs and poultry) that enable productive and commercial farming by producing more and quality livestock products; (ii) Availability of quality animal feeds including animal feeds formulation skills based on a combination of natural and low-cost raw materials; (iii) Availability of quality fodder seeds which includes seeds from grass pasture, creeping legumes and tree fodders. Such studies will help to reduce the challenge of pasture and ensure secured and commercial livestock keeping; (iv) Increase productivity in goat meat production by using the best Bucks and Does that will be obtained through identification, analysis and selection of quality livestock; (v) Capacity building of local livestock researchers and facilitate networking and partnerships with other international researchers; and (vi) Increase productivity of livestock sector and stimulate investment to processing industries, contributing to an increase in the total GDP. The strategies to be implemented are: (i) Bulding capacity for livestock researchers; (ii) Strengthening livestock research institutions with appropriate reseach infrastructure and facilities; (iii) Dissemination of research information using simple language and methodologies; (iv) Establish mechanisms for research, training and extension linkages; (v) Organize monthly consultative meetings with stakeholders for experience sharing; (vi) Promoting innovative and action-based researches; and (vii) Strengthening livestock research collaborations. 24 5.5.2 Livestock Training Livestock training aims to develop human resources capacity for the livestock sector through training programs and skills development. Livestock Training Agency (LITA), private sector colleges and institutions of higher learning especially Sokoine University of Agriculture (SUA), and the Nelson Mandela African Institute of Science and Technology (NM-AIST) are major sources of expertise in livestock training in the country. Strategies for training improvement are as follows: (i) Strengthening livestock training institutions; (ii) Improving teaching and learning infrastructure to livestock training institutions; (iii) Curriculum for Livestock Training Institute reviewed in order to meet demand of the sector; (iv) Strengthening out-reach programmes; and (v) Dermacating and securing land of training institutions owned by the Ministry of Livestock and Fisheries to reduce land conflicts. 5.6 Value Addition of Livestock Products In adding value to livestock products, this plan focuses on creating a conducive environment for the private sector to invest in the value chain for production and processing of livestock products especially meat, dairy and hides/skin. The Plan focuses on facilitating investment in the livestock products industry. 5.6.1 Leather Indutries In 2022, Tanzania has four (4) Tanneries which include Himo Tanneries and Planters, Moshi Leather Industries Ltd, Ace Leather Ltd and Phiss Tannery. These tanneries have the capacity to process 2,196,000 pieces of hides and 14,538,000 pieces of goat/sheep skin per year. Also, there are six (6) leather goods factories which are Bora Industries Ltd, Himo Tanneries and Planters Ltd, Woiso Shoes, Ital Shoes Ltd, Kilimanjaro International 25 Leather Company Ltd and Small-Scale Enterprises (SMEs). These tanneries produce 3,051,000 pairs of shoes per year. Challenges of the leather processing industry include: (i) Poor quality of hides and skin produced as a result of poor animal husbandry that does not adhere to the principles of good husbandry especially improper branding and poor dehiding techniques; (ii) Inadequate awareness of traders on leather market standards and requirements; (iii) Inadequate drying and storage facilities of hides/skin; (iv) Presence of alternative markets for hides and skin which do not require quality graded hides and skin; and (v) Shortage of abattoirs with modern technology and equipment for handling of hides and skin. In order to facilitate the leather industries, the following strategies will be implemented: (i) Promoting marketing of livestock, hides and skin, and leather through electronic Warehouse Receipt System; (ii) Promoting quality of hides and skin through building capacity of livestock farmers, traders, Flayers, Hides and Skin Inspectors and Graders; (iii) Promoting value addition of leather products; and (iv) Strengthening policy and legal framework for leather industry development. 5.6.2 Meat Industries 5.6.2.1 Livestock Fattening In order to ensure availability of quality meat for existing meat processing industries in the country, the Government will embark into establishment of livestock fattening projects to empower employability to graduates in the livestock sector. The process will be implemented through Women and Youth Incubation Centres, whereas, the centers will be established in areas with resoanable proximity to meat processing industries such as Elia Foods Overseas Limited (Arusha); TanChoice (Pwani); Alpha Choice; and Chobo 26 (Mwanza). The fattening will be done under a semi-intensive grazing system where the animals will graze on existing natural pastures and be supplemented with additional feed including maize bran, sunflower cake, premix and salt. The project is expected to start with livestock weighing approximately 200 kg. At the end of the fattening period (approximately three months), the animals are expected to weigh an average of 290 kg following a daily increase of 1 kg per animal. In addition, the project will involve 60 groups of 40 young people per group where they will be provided with a capital of 23,302,750.00 shillings per group for facilitation of fattening. The funds will be in the form of a revolving fund to cover the costs specified in the table below: Table No.2: Operational and Investment Cost for Fattening Through Youth Incubation Centers S/N DESCRIPTION QTY WEIGHT(KGS) RATE (TSHS.) AMOUNT PER YEAR Expenses for buying beef cattle 1 Buying Cattle 40 200 400,000 16,000,000.00 Sub-Total 16,000,000.00 Other expenses 2. Vaccination FMD CBPP ECF 1 1 1 Vial/100 Vial/100 Vial/40 350,000.00 25,000.00 350,000.00 350,000.00 50,000.00 350,000.00 3. Dipping-Accaricide • Supona 1 Litres 95,000 95,000.00 4. Antibiotics i. Pen strep and OTC injections ii. OTC powder & spray 2(25 0mls) 2 Bottle Bottle 25,000 10,000.00 50,000.00 20,000.00 5. Ant inflammatory Dexamethazone 10 (30mls) Bottle 8,000.00 80,000.00 6. Anthelmintic Albendazole 10% 3 Litre 15,000.00 45,000.00 7. Antiprotozoal Butarex 2 Bottle 80,000.00 160,000.00 8 Beef house construction 500,000.00 9 Feed and water troughs 300,000.00 27 10 Cleanliness equipment Gun boots +overcoat/overall Brooms Slasher Spade Hand hoes 10 2 2 2 40,000.00 1000.00 5,000.00 10,000.00 5,000.00 80,000.00 10,000.00 10,000.00 20,000.00 10,000.00 11 supplement Cotton seed cake 1,06 3 kgs 1,000 1,063,000 Mineral block 90 3,000 270,000.00 Maize bran 2,126kgs 1,275,750.00 Salt 160 kgs 44,000.00 12 Wages for labours 2 Month 210,000.00 2,520,000.00 SUB- TOTAL (OTHER EXPENSES) 7,302,750.00 INVESTMENT CAPITAL 23,302,750.00 5.6.2.2 Poultry and Piggery Farming Poultry Farming Out of 35% of subsistence households in Tanzania, 53% of them are involved in poultry farming, while 1% are involved in pig farming. According to the analysis in the Tanzania Livestock Master Plan (TLMP) poultry farming can contribute to bridging the gap between meat production and consumption in the country. If there is sufficient investment in poultry farming, white meat production can close the meat supply gap, resulting a surplus of 35% of the white meat that can be exported to generate foreign currency. Investment in the poultry industry, with analysis on identification and selection of good quality poultry; control of poultry diseases especially Newcastle and Gumboro; extension services for poultry farmers; and mobilization of the private sector to invest in the production of chicks and poultry feed, will enable the poultry industry to contribute effectively to the development of society and the economy as a whole. The analysis revealed that, poultry industry has the potential to contribute to improving food security and nutrition for households and increase the poultry industry's contribution to GDP by 28 182 percent from 256 billion shillings to 723 billion shillings; contributing significantly in bridging the meat production and consumption gap in the country. Pig Farming Interventions to improve commercial pig production will increase pork production by 59%. Production could increase from 22,025 to 37,191 tons within five years (2022/23 2026/27). Commercial pig farming can enable households to increase income and enhance food and nutrition security, reducing poverty and contribute to social and economic development in general. Analysis has shown that, if pig farming is properly invested, it could contribute to GDP by 83%, generating 80 billion shillings from 44 billion shillings within five years (2022/23 - 2026/27). This will eliminate a deficit in pork production and consumption from 8,000 tonnes to an additional 1,350 tonnes by 2026/27. Moreover, an increase in pork production will reduce the country's meat prices and increase pork exports, which will contribute to an increase in foreign exchange earnings. The Ministry in collaboration with various stakeholders will provide education and encourage good husbandry in pig farming to increase meat production and consumption to bring leaven to industry and improve meat processing in the country. 5.6.2.3 Livestock Markets Livestock auctions are conducted in accordance by the Meat Act No. 10 of 2006 and the Animal Diseases Act No.17 of 2003 and their regulations. In addition, there are three types of livestock markets which are primary (504), secondary (14) and border (12) markets. In order to enable the livestock trade to be successful in livestock market, there is a need to build appropriate infrastructure, rehabilitate existing infrastructure to bring it to the required standards by the country's meat processing industry, as well as the export markets. Many livestock markets in the country have inadequate necessary infrastructure for facilitating livestock trade including perimeter fencing, barns and water infrastructure. As a 29 result, it reduces service delivery efficiency and increase revenue loss. Challenges facing livestock marketing include; (i) Inadequate awareness to livestock farmers on the fattening system to ensure the best raw materials for cattle processing industries; (ii) Inadequate information on market opportunities for livestock, livestock products and low integration between livestock farmers, producers, processors and modern abattoirs especially those on exporting facilities; (iii) Inadequate quarantine stations that meet the requirements of the World Trade Organization (WTO) and World Animal Health Organization (OIE); and (iv) Existence of nuisance levies/taxes affecting competitiveness of meat produced from Tanzania for foreign markets. To a large extent, the strategies to develop the meat industry involve creating a conducive environment for better livestock production and trade. Thus, the following strategies will be implemented to facilitate the meat processing industry: (i) Promoting value addition through processing and fattening of livestock for domestic and export markets; (ii) Enhancing and strengthening digital market information sharing for livestock and livestock products; (iii) Reviewing fees and levies on livestock products that are nuisance for investment in value addition of livestock products; and (iv) Constructing and improving livestock markets. 5.6.3 Milk Processing Industries Tanzania has a total of 105 dairy factories with a capacity of 711,000 litres per day, of which five factories (ASAS, Milkcom, Tanga Fresh, AZAM Milk and Kilimanjaro Creameries) process milk that can be stored for six months without spoiling (UHT). The milk processed in 2020/21 were 75.9 million litres. Despite of the increase in milk production from year to year, the processing capacity is low (3%). In addition, the livestock sector's goal is to increase the number of dairy cows through Artificial 30 Insemination of 1,000,000 cows annually in order to facilitate supply of raw materials for industrial processing. Existing Milk Collection Centers are managed and operated by cooperatives of dairy livestock farmers, processors and vendors or traders who collect milk and sell it to factories or to consumers directly. There are currently 69 milk collection centers operating in the country. These centers are estimated to collect 97,319,306 litres of milk per year which is equivalent to 55% of the milk that enters the formal market system. About 30% are equipped with milk coolers. Inadequate milk collection centers with appropriate facilities contributes to existing dairy processing plants in the country using an average of 5% of the installed capacity. The dairy industry faces the following challenges: (i) Shortage of milk collection centers with appropriate facilities and equipment; (ii) Informal market systems which take more than 97% of locally produced milk; (iii) Inadequate Dairy Technologists; and (iv) Shortage of milk supply in areas with dairy processing industries. Strategies to facilitate milk processing includes: (i) Improving business environment for dairy industry; (ii) Expanding milk market demand by promoting milk consumption including school milk feeding programs; (iii) Establishing and promoting the use of milk collection centers; (iv) Establishing and strengthening dairy farmers' cooperatives; and (v) Encouraging the private sector to construct processing plants for strategic dairy commodities (including powdered milk). 31 5.6.3.1 Analysis of Cost-Benefit for Investing in Livestock Products Value Addition The analysis of profitability and cost of investment using 9% interest rate, in the area of value addition of livestock products has revealed that if this area is efficiently invested and available resources are optimally utilized, the area has the potential to make a profit compared to costs to be invested as follows: (i) Cost-Benefit Ratio Cost Benefits Analysis shows that the ratio of benefits and costs in the area of value addition is 3.09 shillings. This means that every single shilling invested will produce three shillings and nine cents. (ii) Net Present Value - NPV The analysis revealed that, if the value addition is properly invested, it is possible to repay the money within 2 years. In addition, Net Present Value is TZS 57,835,038,927. Thus, public investment in the area of value addition could increase the contribution of the livestock sector to Government revenue. (iii) Internal Rate of Return – IRR Analysis of the cost of investment in strengthening livestock infrastructure has revealed that the Internal Investment Cost Rate (IRR) is 83%. 5.6.4 Livestock Development Fund In order to ensure availability of funds for the development of the livestock sector, Livestock Development Fund (LDF) will be strengthened. Sources of revenue for the fund will include levies arising from the livestock trade and its products. In addition, 15% of the revenue collected by Local Government Authorities from the livestock sector will be included in the LDF. Among other responsibilities, the Fund will be used to carry out the following functions: 32 (i) Improving pastures and water for livestock; (ii) Improving livestock marketing infrastructure; (iii) Improving animal health facilities; (iv) Equipping and retooling livestock Extension Officers; and (v) Capacity building of livestock farmers in modern and commercial farming. The strategies to strengthen and operationalize LDF will be: (i) Institutionalizing LDF into policy and legal framework; and (ii) Engaging stakeholders including livestock farmers in mobilizing financial resources for LDF. 5.6 Strengthening National Ranching Company The number of livestocks in the National Ranch Company (NARCO) has been declining between the period of 2003/04 to 2013/14 from 39,187 cattle to 14,405 cattle. In addition, between the period 2013/14 to 2021/2022 the number of livestocks increased from 14,405 to 16,601 cattle. Also, the Company has started a dairy cattle project at Kikulula Ranch where there are currently 72 dairy cows. However, there are various challenges facing NARCO including: (i) Decreased production after lack of investment for approximately 14 years (1992 2006) the period under which the Company was placed under Bankrupt; (ii) Lack of capital which leads to sale of livestock in order to raise funds for various activities of the Company which hinders restocking rate; (iii) Frequent droughts resulting in shortages of pasture and water due to NARCO's limited investment; and (iv) Invasion of ranch areas from other land users which has led to a decrease in ranch areas, resulting in frequent outbreaks of livestock diseases. In order to address the challenges facing the National Ranch Company, significant investment is needed in enhancing quality livestock production to increase trade in meat, dairy and livestock products. In strengthening livestock production, the Company will construct and rehabilitate various infrastructures including livestock fattening, purchase of 33 machinery, tools and farm machinery at eight (8) out of fourteen (14) ranches owned by NARCO. If NARCO is enabled to invest fully (production at full capacity), it can make a significant contribution into the development of the livestock sector to benefit livestock farmers and other livestock stakeholders. Some of the benefits of strengthening NARCO include: (i) Increase in the number of livestock farmers receiving education on fattening and pasture farming from 324 pastoralists to 600 pastoralists per annum thus increasing productivity. (ii) Increase meat production from 400 tons to 800 tons per year. (iii) Increase milk production from 20,000 to 1,800,000 litres per year (iv) Number of cattle bought for fattening will increase from 1,500 to 5,800 cattle per year. Over the next 10 years from 2022/2023, it is envisaged that, NARCO will increase production and marketing of livestock and livestock products. The investment benefits are outlined as follows; (i) Cost-Beneft Ratio Analysis of the benefits and investment costs of strengthening the National Ranch Company has revealed that if the Company is provided with capital for full investment and utilizing 100% of the available resources, the Company can make a significant profit compared to the costs invested. Analysis has shown that even without including the economic and social benefits of strengthening the National Ranch Company (Appendix No. 6), it can make profit on every shilling invested. These benefits are outlined in the following indicators: (ii) Profit Cost Ratio Using the 9% interest rate, Cost-Benefit Analysis shows the Benefit-Cost Ratio of TZS 2.14 for the Company. This means that for every shilling to be invested in the Ranch Company it will generate two and fourteen shillings. 34 (iii) Net Present Value - NPV Funds invested for NARCO can be returned within two years and one month. The Net Present Value is TZS 68,627,296,690.32. Thus, NARCO will be able to make a budget contribution to the Government instead of being dependent to the Ministry. (iv) Internal Rate of Return (IRR) An analysis of the trend in production costs and the various revenues that can be obtained from sale of cattle, sheep, goats, hay, pasture seeds, milk, skin and other livestock products have revealed that the IRR is 40%. Thus, NARCO is highly productive if the investment is done at its optimal capacity. 6 IMPLEMENTATION PLAN The Livestock Sector Transformation Plan (LSTP) will engage all stakeholders for financing and implementation. The Ministry will develop action plan in collaboration with stakeholders for effective implementation. For effective communication, the Ministry will develop a profile of livestock stakeholders, conduct monthly online dialogue and collect feedback from stakeholders’ activities in quarterly basis. Furthermore, the plan will involve monitoring and evaluation according to developed performance indicators and milestones. 35 Attachment No.2 Cost for Implementation of the Transforamtion Plan for the period of 2022/23-2026/7 AREA ACTIVITIES TO BE IMPLEMENTED 2022/23 2023/24 2024/25 2025/26 2026/27 Total Access to Quality Livestock breeds 1.1 Inseminating 1,000,000 cows annually for five (5) years. 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000 60,000,000,000 1.2 Strengthening the National Artificial Insemination Center (NAIC) Arusha by providing improved and equipment including 3 Nitrogen Cold rooms and seed cooling machines. 1,005,000,000 1,880,000,000 645,000,000 405,000,000 225,000,000 4,160,000,000 1.3 Strengthening Mabuki Livestock Multiplication Unit 3,925,747,203 1,965,484,243 1,994,244,627 823,837,622 854,545,974 9,563,859,669 1.4 Strengthening Kitulo Livestock Multiplication Unit 6,238,070,879 4,480,541,781 4,822,304,081 1,758,029,443 1,804,430,809 19,103,376,993 1.5 Strengthening Ngerengere Livestock Multiplication Unit 1,590,414,174 191,960,284 199,823,414 208,017,245 216,556,064 2,406,771,182 1.6 Strengthening Nangaramo Livestock Multiplication Unit 2,507,396,432 657,524,265 758,585,283 252,884,908 282,766,909 4,459,157,797 1.7 Strengthening Sao Hill Livestock Multiplication Unit 3,224,533,765 636,715,998 742,619,937 304,826,294 341,750,364 5,250,446,358 Sub total 30,491,162,452 21,812,226,572 21,162,577,342 15,752,595,513 15,725,050,119 104,943,611,999 Strengthening Water services, pasture and feeds for livestock. 1.8 Construct 300 livestock charcoal dams in areas worst affected by drought and predominantly livestock regions. 36,000,000,000 144,000,000,000 72,000,000,000 72,000,000,000 36,000,000,000 360,000,000,000 1.9 Drilling 250 boreholes for livestock in drought-affected areas and predominantly livestock regions 20,000,000,000 10,000,000,000 10,000,000,000 6,000,000,000 4,000,000,000 50,000,000,000 1.10 Allocating and measuring 3,000,000 hectares of lands including livestock holding ground and grazing land. 30,000,000,000 105,000,000,000 105,000,000,000 105,000,000,000 105,000,000,000 450,000,000,000 36 1.11 Bush pruning of 2500 Hectares of Government and institutions including Langwira and Vikuge LMU AND 360,000,000 360,000,000 360,000,000 180,000,000 1,500,000,000 1.12 To purchase pastures seeds 175,000,000 25,000,000 1,000,000 1,000,000 1,000,000 203,000,000 1.13 To purchase tractor and its equipment 1,250,000,000 1,250,000,000 0 0 0 2,500,000,000 1.14 To purchase 10 bailers, 10 Mower and 10 hay rakes 725,000,000 725,000,000 0 0 1,450,000,000 1.15 To install irrigation system for seed and pastures at Langwira and Vikuge Livestock Multiplication Units 3,000,000,000 2,200,000,000 100,000,000 100,000,000 100,000,000 5,500,000,000 1.16 To construct warehouses for storage of seed and pasture in 10 Livestock Multiplication Units of Government institutions. 1,000,000,000 2,000,000,000 2,000,000,000 5,000,000,000 1.17 To purchase 2 vehicles (Land Cruiser) for office operations at Vikuge and Langwira Livestock Multiplication Units 0 400,000,000 20,000,000 20,000,000 20,000,000 460,000,000 1.18 To purchase feed trucks 0 420,000,000 20,000,000 20,000,000 20,000,000 480,000,000 1.19 To procure fertilizers and herbicides 300,000,000 500,000,000 500,000,000 500,000,000 500,000,000 2,300,000,000 Total area 92,690,000,000 266,880,000,000 190,001,000,000 184,001,000,000 145,821,000,000 879,393,000,000 2 Strengthening livestock health 2.3 To construct 8,657 cattle dips in 184 Local Government Authorities 12,500,000,000 50,000,000,000 75,000,000,000 50,000,000,000 28,925,000,000 216,425,000,000 2.4 To purchase 84 liters of acaricides per dip per year 13,910,400,000 22,310,400,000 34,910,400,000 43,310,400,000 48,169,800,000 162,611,400,000 2.5 To construct, retool and install equipment for viral and bacterial diseases (Rabies, Skin rash, Gumboro and Pest des Petits Ruminants - PPR) and production 10,500,000,000 4,500,000,000 4,432,000,000 11,150,000,000 14,059,000,000 44,641,000,000 37 2.6 To procure equipment for filling and packaging of vaccines (automation machines) 4,000,000,000 4,000,000,000 8,000,000,000 2.7 To purchase 6 cooling vehicles; and vaccination storage facilities for 160 Local Government Authorities. 0 1,060,000,000 0 0 0 1,060,000,000 2.8 To strengthen and equip the Research and Immunization Development and Operation Unit 2,000,000,000 1,000,000,000 1,000,000,000 800,000,000 4,800,000,000 2.9 To purchase East Coast Fever (ECF) vaccines through bulk procurement and sell with reasonable price to pastoralists through private companies. 60,000,000,000 36,000,000,000 24,000,000,000 24,000,000,000 12,000,000,000 156,000,000,000 2.10 To purchase Foot and Mouth Disease (FMD) vaccines through bulk procurement and sell with reasonable price to pastoralists through private companies. 45,000,000,000 45,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 180,000,000,000 2.11 To capacitate 64 livestock professionals on vaccine production and biological waste management. 100,000,000 100,000,000 100,000,000 100,000,000 150,000,000 550,000,000 Total area 142,010,400,000 160,970,400,000 173,442,400,000 163,560,400,000 134,103,800,000 774,087,400,000 3 Improving extension services 3.3 To purchase 4,016 motorcycles for Village, Ward Extension Officers and non tax revenue collection centers. 5,934,000,030 3,560,400,000 2,373,600,000 11,868,000,030 38 3.4 To purchase Artificial Insemination Kit for four (4) Livestock Extension Officers in each District Council at Local Government Authorities in two strategic zones. 364,320,000 1,104,000,000 500,000,000 600,000,000 800,000,000 3,368,320,000 3.5 To develop electronic livestock registration system, provision and management of extension services and Procurement of Computer facilities and accessories at the Regional and Council level 600,000,000 - 1,500,000,000 1,500,000,000 3,600,000,000 3.6 To facilitate computer facilities, telephones and accessories for extension services in Local Government Authorities. 2,800,000,000 1,400,000,000 1,400,000,000 5,600,000,000 3.7 To capacitate pastoralists, professionals and livestock stakeholders on the use of the electronic system to provide information and business 500,000,000 600,000,000 400,000,000 400,000,000 400,000,000 2,300,000,000 3.8 To strengthen t Farmers Training Centers (FTC) in 3 areas; Lugoba, ZVC Sumbawanga and ZVC Iringa; and establishing 830 Livestock Farmers Field Schools (LFFSs) 3,770,000,000 3,320,000,000 3,320,000,000 3,320,000,000 3,320,000,000 17,050,000,000 Sub Total 13,968,320,030 8,584,400,000 7,993,600,000 7,220,000,000 6,020,000,000 43,786,320,030 4 Strengthening livestock research and training 4.3 To conduct research on livestock, grazing and diseases to increase production and productivity. 5,026,909,961 6,920,658,125 6,197,444,700 9,683,000,000 13,683,800,000 41,511,812,786 39 4.4 To facilitate LITA to improve teaching and learning environment by building six (6) new lecture halls; seven (7) new hostels; eight (8) new laboratories; eight (8) new libraries; and 120 houses for LITA staff 6,500,000,000 4,000,000,000 3,500,000,000 2,000,000,000 16,000,000,000 4.5 To strengthen practical training for LITA graduates through outreach programs and excursions to increase competence, resilience and self-employment by purchasing 8 buses in 8 LITA campuses. 1,200,000,000 900,000,000 300,000,000 2,400,000,000 4.6 To construct and strengthen three training centers in dairy and processing industries of Dairy products at Tengeru (Training for dairy production and processing); Leather at Morogoro (Training in production and processing of leather products); and Meat at Mabuki (Training on production, live livestock trade, meat inspection and meat processing). 1,000,000,000 800,000,000 1,800,000,000 Sub total 12,726,909,961 12,820,658,125 10,797,444,700 11,683,000,000 13,683,800,000 61,711,812,786 5 Facilitating Value Added Livestock Products. 5.3 To build infrastructure at the National Veterinary Inspection Centre and Holding ground for export market in Kwala Coast Region 200,000,000 0 60,000,000 60,000,000 60,000,000 380,000,000 40 5.4 Construction of 31 new secondary livestock markets according to Model Drawings in areas with the pre-upgraded market. 7,500,000,000 8,000,000,000 372,000,000 372,000,000 372,000,000 16,616,000,000 5.5 Develop an electronic system for registration, inspection, approvals, licensing and quality control of Dairy and its products. 250,000,000 48,000,000 48,000,000 48,000,000 48,000,000 442,000,000 5.6 To build 100 milk collection centers in strategic areas. 3,600,000,000 3,600,000,000 2,400,000,000 2,400,000,000 12,000,000,000 5.7 To build and rehabilitate six (6) National holding ground with infrastructure facilities for the purpose of domestic and foreign markets 300,000,000 300,000,000 60,000,000 60,000,000 60,000,000 780,000,000 Sub total 11,850,000,000 11,948,000,000 2,940,000,000 2,940,000,000 540,000,000 30,218,000,000 6 To Strength National Ranching Company (NARCO 6.5 To purchase 15,000 breeding herds for cattle 7,500,000,000 9,000,000,000 6,000,000,000 22,500,000,000 6.6 To purchase 5,200 breeding herds for goats 600,000,000 440,000,000 1,040,000,000 6.7 To purchase 5,200 breeding herds for sheep 600,000,000 440,000,000 1,040,000,000 6.8 To construct 40 livestock shading 60,000,000 60,000,000 120,000,000 6.9 To construct 48 paddocks 480,000,000 480,000,000 144,000,000 144,000,000 144,000,000 1,392,000,000 6.10 To construct 21 feedloting/ fattening infrastructures 160,000,000 176,000,000 1,680,000,000 1,680,000,000 1,680,000,000 5,376,000,000 6.11 To construct 16 charcoal dams 4,800,000,000 8,000,000,000 12,800,000,000 6.12 To drill 3 Deep boreholes and establish its infrastructure 600,000,000 600,000,000 6.13 To purchase 1 buldozer D6 type 500,000,000 12,000,000 12,000,000 12,000,000 12,000,000 548,000,000 6.14 To Purchase 8 tractors and their accessories 240,000,000 400,000,000 96,000,000 96,000,000 96,000,000 928,000,000 6.15 To purchase 8 bailers, 8 mowers and 8 rakes. 1,160,000,000 1,160,000,000 41 6.16 To purchase 3 refrigerated vans for handling meat 200,000,000 400,000,000 30,000,000 30,000,000 30,000,000 690,000,000 6.17 To enhance 3,000 hectares for pasture by purchasing 375 kg annually 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 37,500,000 6.18 To Slash 10,000 hectares of shrubs 2,500,000,000 2,500,000,000 2,300,000,000 7,300,000,000 Sub total 19,407,500,000 19,415,500,000 10,469,500,000 1,969,500,000 4,269,500,000 55,531,500,000 Grand total 323,144,292,443 502,431,184,697 416,806,522,042 387,126,495,513 320,163,150,119 1,949,671,644,815 42 Appendix No.2a Cost-Benefit Analysis in Heifer Production - Mabuki Farm Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back period 0 1 2 3 4 5 6 7 8 9 10 Interest 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% COST Fixed cost 3,220,500,000 1,200,000,000 1,200,000,000 - - - - - - - Parent breeds for cattles 1,200,000,000 1,200,000,000 1,200,000,000 Deep borehole 45,000,000 Charcol dams 500,000,000 Drum disc 12,000,000 Hay baller 75,000,000 Tractor and its implements 501,000,000 Stall barn (Livestock shading) 140,000,000 Calf Pens 10,000,000 Dip tanks 25,000,000 Land cruser pickup 120,000,000 TRUCK 160,000,000 Motorbycles Yamaha DT 36,000,000 Rehabitation of worker’s houses 214,000,000 Electrical installation to workers houses 44,000,000 (Frisian bulls) 60,000,000 (Boran bulls) 16,000,000 To remove bush encroachment in 250 hacters 62,500,000 Variable Cost 705,247,203 765,484,243 794,244,627 823,837,622 854,545,974 886,412,336 919,481,023 953,798,074 989,411,326 1,026,370,4 82 1,064,727,1 84 Payment for casual labour 64,800,000 68,040,000 71,442,000 75,014,100 78,764,805 82,703,045 86,838,198 91,180,107 95,739,113 100,526,068 105,552,372 43 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back period 0 1 2 3 4 5 6 7 8 9 10 Interest 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% Personal Emoluments 390,333,408.9 8 425,071,400.1 5 440,526,576.3 5 456,385,533.1 0 472,815,412.2 9 489,836,767.1 4 507,470,890.7 5 525,739,842 .82 544,666,477 .16 564,274,470 .34 584,588,351 .27 Supplies; Goods, Works and Services 236,571,373.5 2 257,625,206.2 0 266,992,204.2 0 276,603,923.5 6 286,561,664.8 0 296,877,884.7 4 307,565,488.5 9 318,637,846 .18 330,108,808 .64 341,992,725 .75 354,304,463 .88 Development 13,542,420.09 14,747,637.11 15,283,846.63 15,834,065.11 16,404,091.45 16,994,638.74 17,606,445.74 18,240,277. 78 18,896,927. 78 19,577,217. 18 20,281,997. 00 Total cost 3,925,747,203 1,965,484,243 1,994,244,627 823,837,622 854,545,974 886,412,336 919,481,023 953,798,074 989,411,326 1,026,370,4 82 1,064,727,1 84 Revenue Revenue Estimates: 802,858,342 1,736,295,575 612,074,354 2,600,279,780 2,731,240,972 2,868,797,928 3,013,282,840 3,165,044,6 29 3,324,449,7 90 3,491,883,2 75 3,667,749,4 25 Heifer 574,286,572 1,307,008,609 - 1,957,378,748 2,055,960,699 2,159,507,657 2,268,269,683 2,382,509,4 29 2,502,502,7 76 2,628,539,5 00 2,760,923,9 72 Bulls/Steers 228,571,770 387,261,810 552,155,181 579,964,073 609,173,540 639,854,121 672,079,906 705,928,720 741,482,304 778,826,518 818,051,547 Culled cattle - 42,025,156 59,919,173 62,936,959 66,106,733 69,436,150 72,933,251 76,606,481 80,464,710 84,517,256 88,773,906 Esimated Revenue from dairy milk and its products 668,042,235 1,131,842,507 1,613,773,132 1,695,049,637 1,780,419,574 1,870,089,105 1,964,274,777 2,063,204,0 41 2,167,115,8 06 2,276,261,0 10 2,390,903,2 33 Dairy Milk 668,042,235 1,131,842,507 1,613,773,132 1,695,049,637 1,780,419,574 1,870,089,105 1,964,274,777 2,063,204,0 41 2,167,115,8 06 2,276,261,0 10 2,390,903,2 33 Yogurt Cheese Total Revenue 1,470,900,577 2,868,138,082 2,225,847,487 4,295,329,417 4,511,660,546 4,738,887,033 4,977,557,617 5,228,248,6 70 5,491,565,5 95 5,768,144,2 85 6,058,652,6 58 Raw Profit/Loss (2,454,846,62 5) 902,653,838 231,602,860 3,471,491,796 3,657,114,572 3,852,474,697 4,058,076,594 4,274,450,5 96 4,502,154,2 69 4,741,773,8 03 4,993,925,4 74 Present Profit /Loss value (2,454,846,62 5) 828,122,788 194,935,493 2,680,628,616 2,590,792,163 2,503,844,221 2,419,698,483 2,338,270,8 54 2,259,479,4 13 2,183,244,3 83 2,109,488,0 89 Net Present Value 17,653,657,87 7 Benefit - Cost Ratio 2.51 Payback Period 1.12 44 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back period 0 1 2 3 4 5 6 7 8 9 10 Interest 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% PV of Benefits Expected 1,470,900,577 2,631,319,341 1,873,451,298 3,316,782,417 3,196,174,074 3,079,951,419 2,967,954,975 2,860,031,0 63 2,756,031,5 95 2,655,813,8 65 2,559,240,3 58 PV of Costs Expected 3,925,747,203 1,803,196,554 1,678,515,804 636,153,802 605,381,912 576,107,198 548,256,491 521,760,209 496,552,181 472,569,482 449,752,269 Assumptions: Calving Rate 75% Cattle Death Rate 3% Productive Age of Cattle 9 Years Sales of aged cattle (culling) starting 2023/24 20% Production of Milk per day (Liters) 20 Inflaltion Rate 4% Price for Selling of Pregnant Heifer 1,500,000 Price for selling Bull 400,000 Price for selling fresh milk (Liter) 900 Price for selling culled cattle 300,000 Depreciation of farm machines (year) 10% 45 Appendix No.2b Cost-Benefit Analysis in Heifer Production- Kitulo Farm Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% COST Fixed Cost 5,172,390,000 3,073,000,0 00 3,073,000,0 00 - - - - - - Parent breedsof cattle (Friesian) 3,073,000,000 3,073,000,0 00 3,073,000,0 00 Pasture seeds 4,800,000 Deep boreholes Charcol Dams Mowers Tractor with it impliments 440,000,000 Stall barn (Livestock shading) Calf Pens 14,190,000 Dip tanks 100,000,000 Motor vehicles 320,000,000 Motorcycles 14,000,000 Staff houses Office Premises Milking Machine 200,000,000 (Milk Cooling Tank 56,400,000 Truck – 7 tons 250,000,000 Weeding 700,000,000 Variable cost 1,065,680,87 9 1,407,541,7 81 1,749,304,0 81 1,758,029,4 43 1,804,430,8 09 1,852,502,6 23 1,902,305,0 23 1,953,900,3 09 2,007,353,0 26 2,274,770,0 40 2,332,140,6 27 Techinician wages 181,440,000 190,512,000 200,037,600 181,440,000 181,440,000 181,440,000 181,440,000 181,440,000 181,440,000 181,440,000 181440000 46 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% Assitant Techinician wages 75,000,000 78,750,000 82,687,500 75,000,000 75,000,000 75,000,000 75,000,000 75,000,000 75,000,000 75,000,000 75000000 Supporting staff Wages 95,400,000 100,170,000 105,178,500 95,400,000 95,400,000 95,400,000 95,400,000 95,400,000 95,400,000 95,400,000 95,400,000 Payment for Casual Labor 70,680,000 88,350,000 106,020,000 106,020,000 106,020,000 106,020,000 106,020,000 106,020,000 106,020,000 318,060,000 318,060,000 Artificial Insemination (A.I) 7,843,111 11,581,973 15,320,834 15,872,384 16,443,790 17,035,766 17,649,054 18,284,420 18,942,659 19,624,594 20,331,080 Bank charges 1,662,038 2,454,343 3,246,647 3,363,526 3,484,613 3,610,059 3,740,021 3,874,662 4,014,150 4,158,659 4,308,371 Building repair 8,704,482 12,853,965 17,003,447 17,615,571 18,249,732 18,906,722 19,587,364 20,292,509 21,023,040 21,779,869 22,563,944 Concentrates/miner als 192,212,743 283,841,787 375,470,830 388,987,780 402,991,340 417,499,029 432,528,994 448,100,037 464,231,639 480,943,978 498,257,961 Dairy expences 6,275,158 9,266,566 12,257,974 12,699,261 13,156,434 13,630,066 14,120,748 14,629,095 15,155,742 15,701,349 16,266,598 Detergent 3,610,487 5,331,630 7,052,772 7,306,672 7,569,712 7,842,222 8,124,542 8,417,025 8,720,038 9,033,960 9,359,182 Diesel 136,275,928 201,239,534 266,203,140 275,786,453 285,714,765 296,000,497 306,656,515 317,696,149 329,133,211 340,982,006 353,257,358 Electricity 22,453,934 33,157,867 43,861,801 45,440,826 47,076,696 48,771,457 50,527,229 52,346,210 54,230,673 56,182,977 58,205,565 Farm infrastructure repair 20,071,906 29,640,312 39,208,717 40,620,231 42,082,560 43,597,532 45,167,043 46,793,056 48,477,606 50,222,800 52,030,821 Farm machinery repair 31,234,282 46,123,864 61,013,445 63,209,929 65,485,487 67,842,964 70,285,311 72,815,582 75,436,943 78,152,673 80,966,169 Farm structure 10,767,760 15,900,820 21,033,880 21,791,100 22,575,579 23,388,300 24,230,279 25,102,569 26,006,262 26,942,487 27,912,417 Fence repair 8,029,909 11,857,818 15,685,727 16,250,413 16,835,428 17,441,503 18,069,397 18,719,896 19,393,812 20,091,989 20,815,301 Fertilizer/pasture improvement 36,308,489 53,616,977 70,925,466 73,478,783 76,124,019 78,864,483 81,703,605 84,644,935 87,692,152 90,849,070 94,119,636 Fire break 2,651,475 3,915,450 5,179,425 5,365,885 5,559,057 5,759,183 5,966,513 6,181,308 6,403,835 6,634,373 6,873,210 Hay 108,925 160,851 212,776 220,436 228,372 236,593 245,111 253,935 263,076 272,547 282,359 Human drugs 2,214,187 3,269,704 4,325,222 4,480,930 4,642,243 4,809,364 4,982,501 5,161,871 5,347,698 5,540,215 5,739,663 Loading/offloading 5,758,717 8,503,935 11,249,152 11,654,122 12,073,670 12,508,322 12,958,622 13,425,132 13,908,437 14,409,141 14,927,870 Lubricant oil 4,963,753 7,330,005 9,696,258 10,045,323 10,406,955 10,781,605 11,169,743 11,571,854 11,988,440 12,420,024 12,867,145 Motivation/incentiv es 4,204,141 6,208,282 8,212,422 8,212,422 8,212,422 8,212,422 8,212,422 8,212,422 8,212,422 8,212,422 8,212,422 Motor vehicle repair 67,171,074 99,191,955 131,212,835 135,936,497 140,830,211 145,900,099 151,152,502 156,593,992 162,231,376 168,071,706 174,122,287 47 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% Nanenane exhibition 3,860,166 5,700,331 7,540,497 7,811,955 8,093,185 8,384,540 8,686,383 8,999,093 9,323,060 9,658,691 10,006,403 Office machine repair and accessories 114,658 169,317 223,975 232,038 240,392 249,046 258,011 267,300 276,923 286,892 297,220 Office supplies 1,865,301 2,754,502 3,643,702 3,774,876 3,910,771 4,051,559 4,197,415 4,348,522 4,505,069 4,667,251 4,835,272 Pasture establishment 1,012,816 1,495,631 1,978,447 2,049,671 2,123,459 2,199,904 2,279,101 2,361,148 2,446,150 2,534,211 2,625,442 Petrol 5,876,280 8,677,541 11,478,801 11,892,038 12,320,152 12,763,677 13,223,169 13,699,204 14,192,375 14,703,300 15,232,619 Phone charges 993,706 1,467,412 1,941,118 2,010,998 2,083,394 2,158,396 2,236,099 2,316,598 2,399,996 2,486,396 2,575,906 Postage 435,113 642,535 849,956 880,554 912,254 945,095 979,119 1,014,367 1,050,884 1,088,716 1,127,910 Rates/rents 3,451,217 5,096,435 6,741,652 6,984,352 7,235,788 7,496,277 7,766,143 8,045,724 8,335,370 8,635,443 8,946,319 Security Services 114,658 169,317 223,975 232,038 240,392 249,046 258,011 267,300 276,923 286,892 297,220 Silage 687,950 1,015,901 1,343,851 1,392,230 1,442,350 1,494,274 1,548,068 1,603,799 1,661,536 1,721,351 1,783,319 Stationaery/Printing 2,052,003 3,030,206 3,030,206 3,030,206 3,030,206 3,030,206 3,030,206 3,030,206 3,030,206 3,030,206 3,030,206 Transport charges 29,788,248 43,988,497 58,188,745 60,283,540 62,453,748 64,702,083 67,031,358 69,444,486 71,944,488 74,534,489 77,217,731 Vetty drugs 18,524,018 27,354,535 36,185,053 37,487,715 38,837,272 40,235,414 41,683,889 43,184,509 44,739,151 46,349,761 48,018,352 Water system maintanence 1,598,529 2,360,558 3,122,587 3,235,000 3,351,460 3,472,113 3,597,109 3,726,605 3,860,762 3,999,750 4,143,741 Workshop tools and Accessories 263,714 389,429 515,143 533,688 552,901 572,805 593,426 614,790 636,922 659,851 683,606 Total Cost 6,238,070,87 9 4,480,541,7 81 4,822,304,0 81 1,758,029,4 43 1,804,430,8 09 1,852,502,6 23 1,902,305,0 23 1,953,900,3 09 2,007,353,0 26 2,274,770,0 40 2,332,140,6 27 Revenue Estimated Revenue: 1,067,726,40 0 1,633,480,2 62 2,238,584,6 29 2,319,173,6 76 2,153,866,6 05 2,419,652,2 95 2,224,323,3 52 1,943,914,5 36 2,003,510,1 79 2,065,251,2 66 2,129,215,0 31 Heifer 734,061,900 1,123,017,68 0 1,539,026,93 3 1,594,431,90 2 1,365,981,75 8 1,564,509,84 9 1,270,777,85 7 820,557,883 850,097,967 880,701,494 912,406,747 Bulls/Steers 333,664,500 510,462,582 699,557,697 724,741,774 710,604,847 777,862,447 805,865,495 834,876,653 864,932,212 896,069,772 928,328,284 Aged/Culled cattle - - - - 77,280,000 77,280,000 147,680,000 288,480,000 288,480,000 288,480,000 288,480,000 48 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% Estimated revenue from diary and its products 1,618,785,00 0 2,969,367,6 60 4,415,094,3 26 5,683,659,5 54 5,572,793,2 02 6,100,249,0 64 6,319,858,0 31 6,547,372,9 20 6,783,078,3 45 7,027,269,1 65 7,280,250,8 55 M Milk 1,618,785,000 2,969,367,66 0 4,415,094,32 6 5,683,659,55 4 5,572,793,20 2 6,100,249,06 4 6,319,858,03 1 6,547,372,92 0 6,783,078,34 5 7,027,269,16 5 7,280,250,85 5 Yogurt Cheese Total revenue 2,686,511,40 0 4,602,847,9 22 6,653,678,9 56 8,002,833,2 30 7,726,659,8 07 8,519,901,3 60 8,544,181,3 83 8,491,287,4 56 8,786,588,5 24 9,092,520,4 31 9,409,465,8 86 Raw Profit/Loss (3,551,559,4 79) 122,306,141 1,831,374,8 75 6,244,803,7 87 5,922,228,9 98 6,667,398,7 37 6,641,876,3 60 6,537,387,1 46 6,779,235,4 98 6,817,750,3 91 7,077,325,2 60 Present Profit/Loss Value (3,551,559,4 79) 112,207,469 1,541,431,5 92 4,822,134,3 20 4,195,456,3 28 4,333,351,7 04 3,960,333,8 63 3,576,174,6 41 3,402,269,6 99 3,139,081,6 74 2,989,538,6 74 Net Present Value 28,520,420,4 84 Benefit - Cost Ratio 2.21 Payback Period 1.11 Present Value of Benefits Expected 2,686,511,40 0 4,222,796,2 59 5,600,268,4 59 6,179,655,6 14 5,473,760,6 05 5,537,351,3 02 5,094,616,1 94 4,645,025,0 21 4,409,692,4 94 4,186,448,9 92 3,974,660,0 78 Present Value of Costs Expected 6,238,070,87 9 4,110,588,7 90 4,058,836,8 66 1,357,521,2 94 1,278,304,2 77 1,203,999,5 98 1,134,282,3 31 1,068,850,3 80 1,007,422,7 95 1,047,367,3 18 985,121,40 4 Assumptions Calving Rate 75% Cattle Death Rate 3% Productive Age of Cattle 9 Years Sales of aged cattle (culling) starting 2023/24 20% Production of Milk per day (Liters) 20 Inflaltion Rate 4% Price for Selling of Pregnant Heifer 2,200,000 Price for selling Bull 1,000,000 49 Price for selling fresh milk (Liter) 900 Price for selling culled cattle 800,000 Depreciation of farm machines (year) 10% Appendix No.2c Cost-Benefit Analysis in Heifer Production -Ngerengere LMU Farm Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 COST Fixed costs 1,406,000,000 - - - - - - - - - Parent breeding herdsof cattle 960,000,000 Hay bailer 85,000,000 Carf Pens 15,000,000 3 Motorcycles 9,000,000 Staff houses 60,000,000 Office building 55,000,000 Hay ban 30,000,000 Cattle Crush 6,000,000 Water intake 10,000,000 Tractor 60,000,000 Disc Plough 10,000,000 Harrow 20,000,000 Trailer 20,000,000 Hay rake 10,000,000 Chisel plough 6,000,000 Mower 50,000,000 Variable costs 184,414,174 191,960,284 199,823,414 208,017,24 5 216,556,06 4 225,454,78 9 234,729,00 4 244,394,983 254,469,724 264,970,982 275,917,302 Casual labour wages 64,800,000 68,040,000 71,442,000 75,014,100 78,764,805 82,703,045 86,838,198 91,180,107 95,739,113 100,526,068 105,552,372 50 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Working Gear 736,000 762,496.00 789,946 818,384 847,845.73 878,368.17 909,989.43 942,749.05 976,688.01 1,011,848.78 1,048,275.34 Animal feeds 7,514,500 7,785,022.00 8,065,283 8,355,633 8,656,436 8,968,067.4 5 9,290,918 9,625,391 9,971,905 10,330,894 10,702,806 Annually Leave 1,636,000 1,694,896.00 1,755,912 1,819,125 1,884,614 1,952,460 2,022,748 2,095,567 2,171,008 2,249,164 2,330,134 Bank charges 1,064,024 1,102,328.86 1,142,013 1,183,125 1,225,718 1,269,844 1,315,558 1,362,918 1,411,983 1,462,814 1,515,476 Casual laboures 28743825 29,778,602.7 0 30,850,632 31,961,255 33,111,860 34,303,887 35,538,827 36,818,225 38,143,681 39,516,854 40,939,460 Contribution to Ngerengere 500,000 518,000.00 536,648 555,967 575,982 596,718 618,199 640,455 663,511 687,397 712,144 Development Activities 16,335,470 16,923,546.9 2 17,532,795 18,163,975 18,817,878 19,495,322 20,197,154 20,924,251 21,677,524 22,457,915 23,266,400 Extra duty 5,023,000 5,203,828.00 5,391,166 5,585,248 5,786,317 5,994,624 6,210,431 6,434,006 6,665,630 6,905,593 7,154,194 Farm machinery service 7,209,900 7,469,456.40 7,738,357 8,016,938 8,305,547 8,604,547 8,914,311 9,235,226 9,567,694 9,912,131 10,268,968 Fuel,Oil & Lubricants 9,766,345 10,117,933.4 2 10,482,179 10,859,537 11,250,481 11,655,498 12,075,096 12,509,800 12,960,152 13,426,718 13,910,080 General Overhead 4,192,300 4,343,222.80 4,499,579 4,661,564 4,829,380 5,003,238 5,183,354 5,369,955 5,563,273 5,763,551 5,971,039 Hay Making Materials cost 392,500 406,630.00 421,269 436,434 452,146 468,423 485,286 502,757 520,856 539,607 559,033 Nane Exhibitation 9,171,000 9,501,156.00 9,843,198 10,197,553 10,564,665 10,944,993 11,339,012 11,747,217 12,170,117 12,608,241 13,062,137 Proceeding and Conference 820,700 850,245.20 880,854 912,565 945,417 979,452 1,014,712 1,051,242 1,089,087 1,128,294 1,168,912 Travelling Allowances 8,635,000 8,945,860.00 9,267,911 9,601,556 9,947,212 10,305,311 10,676,303 11,060,649 11,458,833 11,871,351 12,298,719 Utility; Stationary and Electricity 4085500 4,232,578.00 4,384,951 4,542,809 4,706,350 4,875,779 5,051,307 5,233,154 5,421,547 5,616,723 5,818,925 Veterinary Drugs 13,788,110 14,284,481.9 6 14,798,723 15,331,477 15,883,411 16,455,213 17,047,601 17,661,315 18,297,122 18,955,818 19,638,228 Total Cost 1,590,414,174 191,960,284 199,823,414 208,017,24 5 216,556,06 4 225,454,78 9 234,729,00 4 244,394,983 254,469,724 264,970,982 275,917,302 Revenue Estimated revenue from: 290,858,647 325,077,569 368,822,124 418,453,23 3 474,763,02 7 538,650,23 3 611,134,51 9 693,372,762 984,251,418 1,033,822,52 2 1,085,890,23 8 Sales of Heifers 207,158,317 224,518,705 254,731,405 289,009,72 327,900,75 372,025,21 422,087,35 478,886,179 740,902,123 778,217,117 817,411,454 51 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 3 4 6 4 Madume/Maks ai Sales of Bulls/Steers 83,700,330 90,714,628 102,921,780 116,771,60 5 132,485,15 3 150,313,21 9 170,540,34 5 193,489,365 219,526,555 230,582,849 242,195,986 Sales of Aged/Culled cattle 9,844,235 11,168,940 12,671,905 14,377,119 16,311,798 18,506,820 20,997,218 23,822,741 25,022,556 26,282,798 Estimated revenue from diary and its products 181,206,900 196,392,494 222,820,348 252,804,50 6 286,823,52 8 325,420,37 1 369,211,05 6 418,894,502 475,263,676 499,199,983 524,341,826 Sales of Milk 181,206,900 196,392,494 222,820,348 252,804,50 6 286,823,52 8 325,420,37 1 369,211,05 6 418,894,502 475,263,676 499,199,983 524,341,826 Yogurt Cheese Total revenue 472,065,547 521,470,063 591,642,472 671,257,73 9 761,586,55 4 864,070,60 4 980,345,57 5 1,112,267,26 3 1,459,515,09 4 1,533,022,50 5 1,610,232,06 4 RawProfit / Loss (1,118,348,62 7) 329,509,778 391,819,058 463,240,49 3 545,030,49 1 638,615,81 5 745,616,57 0 867,872,280 1,205,045,37 0 1,268,051,52 4 1,334,314,76 2 Present Profit/LossValu e (1,118,348,62 7) 302,302,549 329,786,262 357,706,65 6 386,113,34 0 415,056,46 2 444,586,79 9 474,755,857 604,771,637 583,846,147 563,628,975 Net Present Value 3,344,206,058 Benefit - Cost Ratio 2.10 Payback Period 1.25 Present Value of Benetits Expected 472,065,547 478,412,902 497,973,632 518,334,13 7 539,527,11 5 561,586,60 5 584,548,03 5 608,448,283 732,481,410 705,846,148 680,179,425 Present Value of Costs Expected 1,590,414,174 176,110,353 168,187,370 160,627,48 0 153,413,77 5 146,530,14 4 139,961,23 6 133,692,425 127,709,774 122,000,001 116,550,450 52 Assumptions Calving Rate 75% Cattle Death Rate 3% Productive Age of Cattle 9 Years Sales of aged cattle (culling) starting 2023/24 20% Production of Milk per day (Liters) 20 Inflaltion Rate 4% Price for Selling of Pregnant Heifer 2,200,000 Price for selling Bull 1,000,000 Price for selling fresh milk (Liter) 1000 Price for selling culled cattle 300,000 Depreciation of farm machines (year) 10% Appendix No.2d Cost-Benefit Analysis in Heifer Production – Nangaramo LMU Farm Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 COST Fixed cost 2,374,433,333 492,433,333 492,433,333 - - - - - - - Removal of Bush encroachment in1,000 Ha. 125,000,000 Parent breeding herds for cattles 492,433,333 492,433,333 492,433,333 1 Charcoal dam 850,000,000 Tractors and its impliments 166,000,000 53 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Vehicles 160,000,000 2 Motorcycles 6,000,000 Dip tanks rehabilitation 10,000,000 Completion the Construction of Grade B Houses 50,000,000 Rehabilitation of staff houses 290,000,000 Office buildings 50,000,000 Deep boreholes 120,000,000 stall barn (livestock shading) 35,000,000 Calf Pens 20,000,000 Gharama Zinazobadilika Variable cost 132,963,098 165,090,932 266,151,950 252,884,90 8 282,766,90 9 281,241,27 6 297,139,76 1 309,031,82 7 345,584,38 9 344,614,62 0 373,668,16 2 Casual labour wages 64,800,000 68,040,000 71,442,000 75,014,100 78,764,805 82,703,045 86,838,198 91,180,107 95,739,113 100,526,06 8 105,552,37 2 AI equipment & training 4,477,961.17 6,760,255.59 13,282,500 13,760,670 14,256,054 .12 14,769,272 .07 15,300,965 .86 15,851,800 .63 16,422,465 .46 17,013,674 .21 17,626,166 .48 Animal feeds (Hay and maize brane) 581,553.40 877,955.27 1,725,000 1,787,100 1,851,436 1,918,087. 28 1,987,138 2,058,675 2,132,788 2,209,568 2,289,113 Antihelminths/Albendazo le/Nilsan/Milsan (lts) 108,556.63 163,884.98 322,000 333,592 345,601 358,043 370,933 384,286 398,120 412,453 427,301 Anti-inflammatory (bottles) 48,462.78 73,162.94 143,750 148,925 154,286 159,841 165,595 171,556 177,732 184,131 190,759 Antiseptic (Lt) 19,385.11 29,265.18 57,500 59,570 61,715 63,936 66,238 68,623 71,093 73,652 76,304 Anti-theileria (bottles) 940,177.99 1,419,361.02 2,788,750 2,889,145 2,993,154 3,100,908 3,212,540 3,328,192 3,448,007 3,572,135 3,700,732 Antivirus 77,540.45 117,060.70 230,000 238,280 246,858 255,745 264,952 274,490 284,372 294,609 305,215 Automatic syringe (pc) 348,932.04 526,773.16 1,035,000 1,072,260 1,110,861 1,150,852 1,192,283 1,235,205 1,279,673 1,325,741 1,373,468 Battery (doz) 232,621.36 351,182.11 690,000 714,840 740,574 767,235 794,855 823,470 853,115 883,827 915,645 Battery (wet cell) (pc) 290,776.70 438,977.64 862,500 893,550 925,718 959,044 993,569 1,029,338 1,066,394 1,104,784 1,144,556 Calcium (bottles) 38,770.23 58,530.35 115,000 119,140 123,429 127,872 132,476 137,245 142,186 147,305 152,608 54 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Check book (pc) 145,388.35 219,488.82 431,250 446,775 462,859 479,522 496,785 514,669 533,197 552,392 572,278 Clinical thermometer (pc) 38,770.23 58,530.35 115,000 119,140 123,429 127,872 132,476 137,245 142,186 147,305 152,608 Cotton/Sunflower Seed cake 3,721,941.75 5,618,913.74 11,040,000 11,437,440 11,849,188 12,275,759 12,717,686 13,175,523 13,649,841 14,141,236 14,650,320 Dehorning wire (roll) 38,770.23 58,530.35 115,000 119,140 123,429 127,872 132,476 137,245 142,186 147,305 152,608 Diesel (Lt) 7,269,417.48 10,974,440.89 21,562,500 22,338,750 23,142,945 23,976,091 24,839,230 25,733,443 26,659,847 27,619,601 28,613,907 Diminazene diaceturate (sachet) 1,507,386.41 2,275,660.06 4,471,200 4,632,163. 20 4,798,921. 08 4,971,682. 23 5,150,662. 79 5,336,086. 65 5,528,185. 77 5,727,200. 46 5,933,379. 68 Drenching gun (pc) 193,851.13 292,651.76 575,000 575,000 575,000 575,000 575,000 575,000 575,000 575,000 575,000 Ear tags (pc) 387,702.27 585,303.51 1,150,000 1,191,400 1,234,290 1,278,725 1,324,759 1,372,450 1,421,858 1,473,045 1,526,075 Engine oil (Lt) 271,391.59 409,712.46 805,000 833,980 864,003 895,107 927,331 960,715 995,301 1,031,132 1,068,253 Eye/ear drop/ointment (pc) 23,262.14 35,118.21 69,000 71,484 74,057 76,723 79,486 82,347 85,312 88,383 91,565 File cover, envelope, stamp, pen, ledger books, office pins etc 969,255.66 1,463,258.79 3,085,726 3,196,812 3,554,646 3,682,613 3,815,188 General service 1,938,511.33 2,926,517.57 5,750,000 5,957,000 6,171,452 6,393,624 6,623,795 6,862,251 7,109,292 7,365,227 7,630,375 Gumboot (pc) 581,553.40 877,955.27 1,851,436 1,918,087 2,132,788 2,209,568 2,289,113 Imizol (bottles) 29,077.67 43,897.76 86,250 89,355 92,572 95,904 99,357 102,934 106,639 110,478 114,456 Inlet hose pipe (m) 77,540.45 117,060.70 230,000 238,280 246,858 255,745 264,952 274,490 284,372 294,609 305,215 Isometadium chloride (gm) 3,814,990.29 5,759,386.58 11,316,000 11,723,376 12,145,418 12,582,653 13,035,628 13,504,911 13,991,087 14,494,767 15,016,578 Leave grant 2,035,436.89 3,072,843.45 6,037,500 6,254,850 6,480,025 6,713,305 6,954,984 7,205,364 7,464,757 7,733,488 8,011,894 Liquid paraffin (Lt) 48,462.78 73,162.94 143,750 148,925 154,286 159,841 165,595 171,556 177,732 184,131 190,759 Maize bran: 2kg x 25 animals x 365 days 7,075,566.34 10,681,789.14 20,987,500 21,743,050 22,525,800 23,336,729 24,176,851 25,047,217 25,948,917 26,883,078 27,850,869 Mask (pc) 19,385.11 29,265.18 57,500 59,570 61,715 63,936 66,238 68,623 71,093 73,652 76,304 Minerals (kg) 969,255.66 1,463,258.79 2,875,000 2,978,500 3,085,726 3,196,812 3,311,897 3,431,126 3,554,646 3,682,613 3,815,188 Needles (doz) 77,540.45 117,060.70 230,000 238,280 246,858 255,745 264,952 274,490 284,372 294,609 305,215 New computer (laptop) purchases 2,907,766.99 4,389,776.36 8,625,000 8,935,500 9,257,178 9,590,436 9,935,692 10,293,377 10,663,939 11,047,840 11,445,563 Otc 10% (bottles) 174,466.02 263,386.58 517,500 536,130 555,431 575,426 596,142 617,603 639,836 662,870 686,734 55 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Otc 20% (bottles) 155,080.91 234,121.41 460,000 476,560 493,716 511,490 529,904 548,980 568,743 589,218 610,430 Oxymast (doz) 23,262.14 35,118.21 69,000 71,484 74,057 76,723 79,486 82,347 85,312 88,383 91,565 Paddock, dip tank & calf pen rehabilitation 5,815,533.98 8,779,552.72 17,250,000 17,871,000 18,514,356 19,180,873 19,871,384 20,586,754 21,327,877 22,095,681 22,891,125 Paranex 1,938,511.33 2,926,517.57 5,750,000 5,957,000 6,171,452 6,393,624 6,623,795 6,862,251 7,109,292 7,365,227 7,630,375 PD gloves (pc) 96,925.57 146,325.88 287,500 297,850 308,573 319,681 331,190 343,113 355,465 368,261 381,519 Penstrep (bottles) 333,423.95 503,361.02 989,000 1,024,604 1,061,490 1,099,703 1,139,293 1,180,307 1,222,798 1,266,819 1,312,425 Pessaries (pc) 116,310.68 175,591.05 345,000 357,420 370,287 383,617 397,428 411,735 426,558 441,914 457,823 Petrol 96,925.57 146,325.88 287,500 297,850 308,573 319,681 331,190 343,113 355,465 368,261 381,519 Post charges (Prepaid services) 387,702.27 585,303.51 1,150,000 1,191,400 1,234,290 1,278,725 1,324,759 1,372,450 1,421,858 1,473,045 1,526,075 Printer and cartilage 387,702.27 585,303.51 1,234,290 1,278,725 1,421,858 1,473,045 1,526,075 Pusture plot management 775,404.53 1,170,607.03 2,300,000 2,382,800 2,468,581 2,557,450 2,649,518 2,744,901 2,843,717 2,946,091 3,052,150 Pyegrease (kg) 29,077.67 43,897.76 86,250 89,355 92,572 95,904 99,357 102,934 106,639 110,478 114,456 Rain coat (pc) 581,553.40 877,955.27 1,851,436 1,918,087 2,132,788 2,209,568 2,289,113 Sargical kit (pc) 135,695.79 204,856.23 402,500 416,990 432,002 447,554 463,666 480,358 497,650 515,566 534,126 Service and repair 387,702.27 585,303.51 1,150,000 1,191,400 1,234,290 1,278,725 1,324,759 1,372,450 1,421,858 1,473,045 1,526,075 Services 6,978,640.78 10,535,463.26 20,700,000 21,445,200 22,217,227 23,017,047 23,845,661 24,704,105 25,593,453 26,514,817 27,469,350 Staff houses rehabilitation 3,877,022.65 5,853,035.14 11,500,000 13,724,503 14,218,585 14,730,454 15,260,750 Stethoscope (pc) 58,155.34 87,795.53 172,500 178,710 185,144 191,809 198,714 205,868 213,279 220,957 228,911 Sulfur powder (kg) 48,462.78 73,162.94 143,750 148,925 154,286 159,841 165,595 171,556 177,732 184,131 190,759 Torch (pc) 193,851.13 292,651.76 575,000 595,700 710,929 736,523 763,038 Tyres (pc) 3,877,022.65 11,500,000 12,342,904 13,247,589 14,218,585 15,260,750 Vitamins (bottles) 116,310.68 175,591.05 345,000 357,420 370,287 383,617 397,428 411,735 426,558 441,914 457,823 Wound spray (pc) 271,391.59 409,712.46 805,000 833,980 864,003 895,107 927,331 960,715 995,301 1,031,132 1,068,253 Total Cost 2,507,396,432 657,524,265 758,585,283 252,884,90 8 282,766,90 9 281,241,27 6 297,139,76 1 309,031,82 7 345,584,38 9 344,614,62 0 373,668,16 2 56 Projected Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Pay back Period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 MAPATO REVENUE Makadirio ya Mapato kutokana na: Revenue estimated from 262,632,956 451,508,927 663,286,868 696,692,82 7 731,781,25 2 768,636,88 1 807,348,71 6 848,010,24 4 890,719,66 0 935,580,10 5 982,699,91 4 Mitamba Sales of Heifer 202,602,566 339,876,495 499,293,818 524,440,387 550,853,444 578,596,775 607,737,379 638,345,628 670,495,439 704,264,452 739,734,217 Madume/Maksai Sales of bulls 60,030,390 100,704,147 147,938,909 155,389,744 163,215,835 171,436,081 180,070,335 189,139,445 198,665,315 208,670,949 219,180,509 Ngombe Wazee/ Sales of Culled cow 10,928,285 16,054,141 16,862,696 17,711,973 18,604,024 19,541,002 20,525,170 21,558,906 22,644,704 23,785,188 Makadirio ya Mapato kutokana na Maziwa na Bidhaa Zake Estimated revenue from diary and its products 129,962,700 218,019,287 320,280,113 336,410,78 6 353,353,87 0 371,150,28 0 389,842,99 2 409,477,15 0 430,100,16 7 451,761,84 8 474,514,50 3 Milk 129,962,700 218,019,287 320,280,113 336,410,786 353,353,870 371,150,280 389,842,992 409,477,150 430,100,167 451,761,848 474,514,503 Mtindi Jibini Cheese Total revenue 392,595,656 669,528,213 983,566,981 1,033,103, 614 1,085,135, 122 1,139,787, 160 1,197,191, 708 1,257,487, 394 1,320,819, 828 1,387,341, 953 1,457,214, 417 Faida/Hasara Ghafi Profit/Loss (2,114,800,77 5) 12,003,948 224,981,698 780,218,70 5 802,368,21 4 858,545,88 4 900,051,94 7 948,455,56 6 975,235,43 9 1,042,727, 333 1,083,546, 256 Faida/Hasara ya Sasa Present Value (2,114,800,77 5) 11,012,796 189,362,594 602,471,99 5 568,417,87 1 557,995,91 7 536,671,56 8 518,837,67 5 489,437,78 2 480,100,63 1 457,701,64 8 Faida Kamili kwa Sasa Net Present Value 2,297,209,701 Benefit - Cost Ratio 1.44 Payback Period 1.48 Present Value of Benetits Expected 392,595,656 614,246,067 827,848,650 797,745,54 4 768,737,07 8 740,783,44 9 713,846,29 9 687,888,66 7 662,874,93 3 638,770,77 5 615,543,11 8 Present Value of Costs Expected 2,507,396,432 603,233,271 638,486,056 195,273,54 8 200,319,20 7 182,787,53 2 177,174,73 1 169,050,99 2 173,437,15 1 158,670,14 4 157,841,47 0 57 Assumptions Calving Rate 75% Cattle Death Rate 3% Productive Age of Cattle 9 Years Sales of aged cattle (culling) starting 2023/24 20% Production of Milk per day (Liters) 20 Inflaltion Rate 4% Price for Selling of Pregnant Heifer 2,200,000 Price for selling Bull 1,000,000 Price for selling fresh milk (Liter) 900 Price for selling culled cattle 800,000 Depreciation of farm machines (year) 10% Attachment No. 2e: Cost-Benefit Analysis in Heifer Production– Sao Hill LMU Project period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Payment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Cost Fixed Cost 3,049,362,667 426,666,667 426,666,667 - - - - - - - Friesia 426,666,667 426,666,667 426,666,667 Clearing shrubs 700,000,000 Tractor and its Implements 80,000,000 Staff houses 110,000,000 Lorry 7 tones 160,000,000 Charcoal dams 850,000,000 Vehicles (Pick up) 265,000,000 58 Project period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Payment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Office Building 200,000,000 Deep bore holes 170,000,000 Livestock stallbarn 42,696,000 Carf stabres 45,000,000 Variable costs 175,171,098 210,049,332 315,953,270 304,826,294 341,750,3 64 338,573,9 04 362,834,0 20 371,205,8 00 416,362,0 60 412,126,1 75 451,050,2 94 Casual labour 101,808,000 106,898,400 112,243,320 117,855,486 123,748,2 60 129,935,6 73 136,432,4 57 143,254,0 80 150,416,7 84 157,937,6 23 165,834,5 04 AI equipment & training 5,477,961 6,760,256 14,282,500 14,760,670 15,256,05 4.12 15,769,27 2.07 16,300,96 5.86 16,851,80 0.63 17,422,46 5.46 18,013,67 4.21 18,626,16 6.48 Animal feeds (Hay and maize brane) 1,581,553 1,877,955 2,725,000 2,787,100 2,851,436 2,918,087 .28 2,987,138 3,058,675 3,132,788 3,209,568 3,289,113 Antihelminths/Albendazo le/Nilsan/Milsan (lts) 208,557 263,885 322,000 433,592 345,601 458,043 470,933 484,286 498,120 512,453 527,301 Anti-inflammatory (bottles) 48,463 73,163 143,750 148,925 154,286 159,841 165,595 171,556 177,732 184,131 190,759 Antiseptic (Lt) 19,385 29,265 57,500 59,570 61,715 63,936 66,238 68,623 71,093 73,652 76,304 Anti-theileria (bottles) 940,178 1,419,361 2,788,750 2,889,145 2,993,154 3,100,908 3,212,540 3,328,192 3,448,007 3,572,135 3,700,732 Antivirus 77,540 117,061 230,000 238,280 246,858 255,745 264,952 274,490 284,372 294,609 305,215 Automatic syringe (pc) 348,932 526,773 1,035,000 1,072,260 1,110,861 1,150,852 1,192,283 1,235,205 1,279,673 1,325,741 1,373,468 Battery (doz) 232,621 351,182 690,000 714,840 740,574 767,235 794,855 823,470 853,115 883,827 915,645 Battery (wet cell) (pc) 290,777 438,978 862,500 893,550 925,718 959,044 993,569 1,029,338 1,066,394 1,104,784 1,144,556 Calcium (bottles) 38,770 58,530 115,000 119,140 123,429 127,872 132,476 137,245 142,186 147,305 152,608 Check book (pc) 145,388 219,489 431,250 446,775 462,859 479,522 496,785 514,669 533,197 552,392 572,278 Clinical thermometer (pc) 38,770 58,530 115,000 119,140 123,429 127,872 132,476 137,245 142,186 147,305 152,608 Cotton/Sunflower Seed cake 3,721,942 5,618,914 11,040,000 11,437,440 11,849,18 8 12,275,75 9 12,717,68 6 13,175,52 3 13,649,84 1 14,141,23 6 14,650,32 0 Dehorning wire (roll) 38,770 58,530 115,000 119,140 123,429 127,872 132,476 137,245 142,186 147,305 152,608 Diesel (Lt) 8,269,417 14,974,441 27,562,500 29,338,750 31,142,94 5 31,976,09 1 32,839,23 0 33,733,44 3 34,659,84 7 35,619,60 1 36,613,90 7 Diminazene diaceturate (sachet) 1,507,386 2,275,660 4,471,200 4,632,163.20 4,798,921 .08 4,971,682 .23 5,150,662 .79 5,336,086 .65 5,528,185 .77 5,727,200 .46 5,933,379 .68 59 Project period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Payment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Drenching gun (pc) 193,851 292,652 575,000 575,000 575,000 575,000 575,000 575,000 575,000 575,000 575,000 Ear tags (pc) 387,702 585,304 1,150,000 1,191,400 1,234,290 1,278,725 1,324,759 1,372,450 1,421,858 1,473,045 1,526,075 Engine oil (Lt) 271,392 409,712 805,000 833,980 864,003 895,107 927,331 960,715 995,301 1,031,132 1,068,253 Eye/ear drop/ointment (pc) 23,262 35,118 69,000 71,484 74,057 76,723 79,486 82,347 85,312 88,383 91,565 File cover, envelope, stamp, pen, ledger books, office pins etc 969,256 1,463,259 3,085,726 3,196,812 3,554,646 3,682,613 3,815,188 General service 1,938,511 2,926,518 5,750,000 5,957,000 6,171,452 6,393,624 6,623,795 6,862,251 7,109,292 7,365,227 7,630,375 Gumboot (pc) 581,553 877,955 1,851,436 1,918,087 2,132,788 2,209,568 2,289,113 Imizol (bottles) 29,078 43,898 86,250 89,355 92,572 95,904 99,357 102,934 106,639 110,478 114,456 Inlet hose pipe (m) 77,540 117,061 230,000 238,280 246,858 255,745 264,952 274,490 284,372 294,609 305,215 Isometadium chloride (gm) 3,814,990 5,759,387 11,316,000 11,723,376 12,145,41 8 12,582,65 3 13,035,62 8 13,504,91 1 13,991,08 7 14,494,76 7 15,016,57 8 Leave grant 2,035,437 3,072,843 6,037,500 6,254,850 6,480,025 6,713,305 6,954,984 7,205,364 7,464,757 7,733,488 8,011,894 Liquid paraffin (Lt) 48,463 73,163 143,750 148,925 154,286 159,841 165,595 171,556 177,732 184,131 190,759 Maize bran: 2kg x 25 animals x 365 days 7,075,566 10,681,789 20,987,500 21,743,050 22,525,80 0 23,336,72 9 24,176,85 1 25,047,21 7 25,948,91 7 26,883,07 8 27,850,86 9 Mask (pc) 19,385 29,265 57,500 59,570 61,715 63,936 66,238 68,623 71,093 73,652 76,304 Minerals (kg) 1,969,256 2,463,259 2,875,000 2,978,500 3,085,726 3,196,812 3,311,897 3,431,126 3,554,646 3,682,613 3,815,188 Needles (doz) 77,540 117,061 230,000 238,280 246,858 255,745 264,952 274,490 284,372 294,609 305,215 New computer (laptop) purchases 2,907,767 4,389,776 8,625,000 8,935,500 9,257,178 9,590,436 9,935,692 10,293,37 7 10,663,93 9 11,047,84 0 11,445,56 3 Otc 10% (bottles) 174,466 263,387 517,500 536,130 555,431 575,426 596,142 617,603 639,836 662,870 686,734 Otc 20% (bottles) 155,081 234,121 460,000 476,560 493,716 511,490 529,904 548,980 568,743 589,218 610,430 Oxymast (doz) 23,262 35,118 69,000 71,484 74,057 76,723 79,486 82,347 85,312 88,383 91,565 Paddock, dip tank & calf pen rehabilitation 5,815,534 8,779,553 17,250,000 17,871,000 18,514,35 6 19,180,87 3 19,871,38 4 20,586,75 4 21,327,87 7 22,095,68 1 22,891,12 5 Paranex 1,938,511 2,926,518 5,750,000 5,957,000 6,171,452 6,393,624 6,623,795 6,862,251 7,109,292 7,365,227 7,630,375 PD gloves (pc) 96,926 146,326 287,500 297,850 308,573 319,681 331,190 343,113 355,465 368,261 381,519 Penstrep (bottles) 333,424 503,361 989,000 1,024,604 1,061,490 1,099,703 1,139,293 1,180,307 1,222,798 1,266,819 1,312,425 60 Project period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Payment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Pessaries (pc) 116,311 175,591 345,000 357,420 370,287 383,617 397,428 411,735 426,558 441,914 457,823 Petrol 96,926 146,326 287,500 297,850 308,573 319,681 331,190 343,113 355,465 368,261 381,519 Post charges (Prepaid services) 387,702 585,304 1,150,000 1,191,400 1,234,290 1,278,725 1,324,759 1,372,450 1,421,858 1,473,045 1,526,075 Printer and cartilage 387,702 585,304 1,234,290 1,278,725 1,421,858 1,473,045 1,526,075 Pusture plot management 775,405 1,170,607 2,300,000 2,382,800 2,468,581 2,557,450 2,649,518 2,744,901 2,843,717 2,946,091 3,052,150 Pyegrease (kg) 29,078 43,898 86,250 89,355 92,572 95,904 99,357 102,934 106,639 110,478 114,456 Rain coat (pc) 581,553 877,955 1,851,436 1,918,087 2,132,788 2,209,568 2,289,113 Sargical kit (pc) 135,696 204,856 402,500 416,990 432,002 447,554 463,666 480,358 497,650 515,566 534,126 Service and repair 387,702 585,304 1,150,000 1,191,400 1,234,290 1,278,725 1,324,759 1,372,450 1,421,858 1,473,045 1,526,075 Services 6,978,641 10,535,463 20,700,000 21,445,200 22,217,227 23,017,047 23,845,661 24,704,105 25,593,453 26,514,817 27,469,350 Staff houses rehabilitation 3,877,023 5,853,035 11,500,000 13,724,503 14,218,585 14,730,454 15,260,750 Stethoscope (pc) 58,155 87,796 172,500 178,710 185,144 191,809 198,714 205,868 213,279 220,957 228,911 Sulfur powder (kg) 48,463 73,163 143,750 148,925 154,286 159,841 165,595 171,556 177,732 184,131 190,759 Torch (pc) 193,851 292,652 575,000 595,700 710,929 736,523 763,038 Tyres (pc) 4,977,023 12,500,000 16,342,904 19,247,589 20,218,585 22,260,750 Vitamins (bottles) 116,311 175,591 345,000 357,420 370,287 383,617 397,428 411,735 426,558 441,914 457,823 Wound spray (pc) 271,392 409,712 805,000 833,980 864,003 895,107 927,331 960,715 995,301 1,031,132 1,068,253 Total 3,224,533,765 636,715,998 742,619,937 304,826,294 341,750,3 64 338,573,9 04 362,834,0 20 371,205,8 00 416,362,0 60 412,126,1 75 451,050,2 94 Revenue Estimated revenue 629,445,731 812,169,071 1,026,466,871 1,078,164,12 5 1,132,465 ,074 1,189,500 ,850 1,249,409 ,191 1,312,334 ,773 1,378,429 ,555 1,447,853 ,152 1,520,773 ,219 Sales of Heifer 485,572,421 611,365,935 772,680,099 811,595,568 852,470,98 6 895,405,06 5 940,501,48 7 987,869,15 7 1,037,622,4 65 1,089,881,5 63 1,144,772,6 52 Sells of Bulls 143,873,310 181,145,462 228,942,252 240,472,761 252,583,99 6 265,305,20 4 278,667,10 7 292,701,97 2 307,443,69 3 322,927,87 0 339,191,89 7 Sales of culled - 19,657,674 24,844,520 26,095,796 27,410,092 28,790,581 30,240,598 31,763,643 33,363,396 35,043,719 36,808,670 Revenue estimated from milk and its products 1,557,391,500 1,960,852,941 2,478,240,869 2,603,055,66 0 2,734,156 ,656 2,871,860 ,459 3,016,499 ,613 3,168,423 ,413 3,327,998 ,743 3,495,610 ,969 3,671,664 ,862 61 Project period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Payment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Milk 1,557,391,500 1,960,852,941 2,478,240,869 2,603,055,66 0 2,734,156 ,656 2,871,860 ,459 3,016,499 ,613 3,168,423 ,413 3,327,998 ,743 3,495,610 ,969 3,671,664 ,862 Youghurt Cheese Total revenue 2,186,837,231 2,773,022,012 3,504,707,740 3,681,219,78 5 3,866,621 ,730 4,061,361 ,309 4,265,908 ,805 4,480,758 ,185 4,706,428 ,298 4,943,464 ,121 5,192,438 ,081 Faida/Hasara Ghafi Profit/Loss (1,037,696,534) 2,136,306,014 2,762,087,803 3,376,393,49 1 3,524,871 ,366 3,722,787 ,405 3,903,074 ,784 4,109,552 ,386 4,290,066 ,238 4,531,337 ,946 4,741,387 ,786 Present Value (1,037,696,534) 1,959,913,774 2,324,794,044 2,607,195,27 6 2,497,107 ,742 2,419,556 ,379 2,327,275 ,968 2,248,065 ,886 2,153,039 ,583 2,086,353 ,869 2,002,813 ,441 Net Present Value 21,588,419,427 Benefit - Cost Ratio) 4.52 Payback Period 1.046 Present Value of Benetits Expected 2,186,837,231 2,544,056,892 2,949,842,387 2,842,577,10 4 2,739,212 ,315 2,639,606 ,186 2,543,622 ,040 2,451,128 ,170 2,361,997 ,661 2,276,108 ,209 2,193,341 ,959 Present Value of Costs Expected 3,224,533,765 584,143,118 625,048,343 235,381,829 242,104,5 74 220,049,8 07 216,346,0 72 203,062,2 84 208,958,0 78 189,754,3 40 190,528,5 19 Assumptions: Calving Rate 75% Cattle Death Rate 3% Productive Age of Cattle 9 Years Sales of aged cattle (culling) starting 2023/24 20% Production of Milk per day (Liters) 20 Inflaltion Rate 4% Price for Selling of Pregnant Heifer 2,200,000 Price for selling Bull 1,000,000 Price for selling fresh milk (Liter) 1000 Price for selling culled cattle 800,000 Depreciation of farm machines (year) 10% 62 Cost-Benefits analysis on Investment in Animal Feeds and Water Resources for Livestock Project year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Repayment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% Cost Fixed cost 37,617,500,000 55,807,500,000 52,041,000,000 57,041,000,000 51,461,000,000 18,001,000,00 0 6,381,000,000 6,181,000,000 6,181,000,000 5,681,000,000 5,681,000,000 Build 150 charcoal dams in the areas with persistant drought and with large number of livestock 12,000,000,000 36,000,000,000 36,000,000,000 42,000,000,000 42,000,000,000 12,000,000,00 0 Drilling 250 livestock bore holes in drought prone areas and 11 predomina ntly livestock regions 18,000,000,000 9,000,000,000 9,000,000,000 9,000,000,000 3,600,000,000 - - - Allocating and measuring 3,000,000 hectares of lands including livestock holding 3,000,000,000 5,000,000,000 6,000,000,00 0 5,000,000,00 0 5,000,000,00 0 5,000,000,0 00 5,000,000,0 00 5,000,000,0 00 5,000,000,0 00 5,000,000,0 00 5,000,000,0 00 63 Project year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Repayment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% ground and grazing land. Bush pruning of 2500 Hect in Langwira and Vikuge LMU 240,000,000 360,000,000 360,000,000 360,000,000 180,000,000 To procure pastures seeds 175,000,000 25,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Kununu treka na vifaa vyake Procureme nt of tractor and its equipments 1,250,000,000 1,250,000,000 - - - - - 500,000,000 500,000,000 - Procureme nt of 4 bailers, 4 mowers and 4 rakes 320,000,000 320,000,000 - - - 320,000,000 320,000,000 - - - Establishme nt of an irrigation system for Langwira and Vikuge farms 2,000,000,000 2,200,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 To Build warehouses for storage of seed and 332,500,000 332,500,000 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 64 Project year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Repayment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% pasture in farms To procure 2 vehicles (Land Cruiser) for office operations at Vikuge and Langwira LMU 0 400,000,000 20,000,000 20,000,000 20,000,000 20,000,000 400,000,000 20,000,000 20,000,000 20,000,000 20,000,000 Procureme nt of feed trucks 0 420,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 Procureme nt of fertilizers and herbicides 300,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 Total Cost 37,617,500,00 0 55,807,500,00 0 52,041,000,0 00 57,041,000,0 00 51,461,000,0 00 18,001,000, 000 6,381,000,0 00 6,181,000,0 00 6,181,000,0 00 5,681,000,0 00 5,681,000,0 00 Revenue Revenue from Sales of 206,280 hei bales from Langwira and Vikuge (573Ha) per year 618,840,000 618,840,000 653,220,000 661,815,000 670,410,000 687,600,000 687,600,000 687,600,000 687,600,000 687,600,000 687,600,000 Revenue from Sales of pasture 78,750,000 78,750,000 84,000,000 78,750,000 78,750,000 78,750,000 78,750,000 78,750,000 78,750,000 78,750,000 78,750,000 65 Project year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Repayment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% seeds (Langwira and Vikuge) Sells from leguminous seeds in (Langwira and Vikuge) 95,000,000 104,500,000 114,000,000 118,750,000 118,750,000 118,750,000 118,750,000 118,750,000 118,750,000 118,750,000 118,750,000 Revenue from Sales of cuttings in (Langwira and Vikuge) 1,260,000,000 1,285,200,000 1,285,200,00 0 1,285,200,00 0 1,285,200,00 0 1,285,200,0 00 1,184,400,0 00 1,184,400,0 00 1,184,400,0 00 1,260,000,0 00 1,260,000,0 00 Provision of drinking water services from the established Chacroal dams is TZS. 30 per cattle 1,642,500,000 1,806,750,000 1,806,750,00 0 1,806,750,00 0 1,806,750,00 0 1,806,750,0 00 1,806,750,0 00 1,806,750,0 00 1,806,750,0 00 1,806,750,0 00 1,971,000,0 00 Provision of drinking water services from the established Chacroal dams is TZS. 30 per goat 410,625,000 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 492,750,000 Provision of drinking water 410,625,000 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 451,687,500 492,750,000 66 Project year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Repayment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% services from the established Chacroal dams is TZS. 30 per sheep Provision of drinking water services from the established bore hole TZS. 100 per cattle 8,212,500,000 8,212,500,000 8,212,500,00 0 8,212,500,00 0 8,212,500,00 0 8,212,500,0 00 8,212,500,0 00 8,212,500,0 00 8,212,500,0 00 8,212,500,0 00 8,212,500,0 00 Provision of drinking water services from the established bore hole TZS. 100 per goat 2,053,125,000 2,053,125,000 2,053,125,00 0 2,053,125,00 0 2,053,125,00 0 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 Provision of drinking water services from the established bore hole TZS. 100 2,053,125,000 2,053,125,000 2,053,125,00 0 2,053,125,00 0 2,053,125,00 0 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 2,053,125,0 00 67 Project year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Repayment period 0 1 2 3 4 5 6 7 8 9 10 Interest rate 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% per sheep Total revenue 16,835,090,00 0 17,116,165,00 0 17,165,295,0 00 17,173,390,0 00 17,181,985,0 00 17,199,175, 000 17,098,375, 000 17,098,375, 000 17,098,375, 000 17,173,975, 000 17,420,350, 000 Profit/Loss (20,782,410,00 0) (38,691,335,0 00) (34,875,705,0 00) (39,867,610,0 00) (34,279,015,0 00) (801,825,00 0) 10,717,375, 000 10,917,375, 000 10,917,375, 000 11,492,975, 000 11,739,350, 000 Discount Factor at 9% 1.00000 0.91743 0.84168 0.77218 0.70843 0.64993 0.59627 0.54703 0.50187 0.46043 0.42241 Present Value (20,782,410,00 0) (35,496,637,6 15) (29,354,183,1 50) (30,785,109,8 32) (24,284,118,4 36) (521,131,23 4) 6,390,420,5 42 5,972,177,9 89 5,479,062,3 75 5,291,684,9 59 4,958,828,3 06 Net Present Value (113,131,416,0 95) Benefit Cost Ratio 0.53 Payback Period 6.02 Present Value of Benetits Expected 16,835,090,00 0 15,702,903,67 0 14,447,685,3 80 13,261,008,0 55 12,172,151,3 50 11,178,283, 651 10,195,202, 355 9,353,396,6 56 8,581,097,8 50 7,907,375,1 75 7,358,544,1 00 Present Value of Costs Expected 37,617,500,00 0 51,199,541,28 4 43,801,868,5 30 44,046,117,8 86 36,456,269,7 87 11,699,414, 885 3,804,781,8 13 3,381,218,6 67 3,102,035,4 75 2,615,690,2 15 2,399,715,7 94 Attachment No.4: Cost-Benefit Analysis for Investiment in Strenthening of Animal Health Years 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Interest Rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Payment Peiod 0 1 2 3 4 5 6 7 8 68 Project Year 1 2 3 4 5 6 7 8 9 COST Construction of 8,657 dip tanks in 184 Local Government Authorities 12,500,000,000 50,000,000,000 75,000,000,000 50,000,000,000 28,925,000,000 - 0 0 0 Purchasing 84 liters of acaricides for each dip tank per year 13,910,400,000 22,310,400,000 34,910,400,000 43,310,400,000 48,169,800,000 48,169,800,000 48,169,800,000 48,169,800,000 48,169,800,0 00 Construction and installation of equipment at TVLA Laboratory for production of vaccines for treatment of viral and bacterial diseases (Rabies, Lampy Skin Disease, Gumboro and PPR) 10,500,000,000 4,500,000,000 8,432,000,000 11,150,000,000 14,059,000,000 16,608,000,000 19,226,000,000 21,354,000,000 21,354,000,0 00 Procurement of automated equipment and machines for filling and packaging of vaccines 4,000,000,000 4,000,000,000 Bulk procurement of Vaccines against East Coast Fever (ECF) and sell them at affordable price to livestock farmers through private companies. 60,000,000,000 36,000,000,000 24,000,000,000 24,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,0 00 69 Years 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Interest Rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Payment Peiod 0 1 2 3 4 5 6 7 8 Project Year 1 2 3 4 5 6 7 8 9 Bulk procurement of Vaccines against Foot and Mouth Diseases (FMD) and sell them at affordable price to livestock farmers through private companies. 45,000,000,000 45,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,0 00 Procurement of 6 refregirated vans and installation of cold chain infrastructure for storage of vaccines in 160 Local Government Authorities. 0 1,060,000,000 0 0 0 0 0 0 Strengthening and installation of equipment in Vaccine Research Unit of TVLA 2,000,000,000 1,000,000,000 1,000,000,000 800,000,000 800,000,000 800,000,000 800,000,000 800,000,000 Capacity building to 64 experts on vaccine production and management of biological waste. 100,000,000 100,000,000 100,000,000 100,000,000 150,000,000 150,000,000 150,000,000 150,000,000 150,000,000 TOTAL COST 142,010,400,00 0 164,970,400,00 0 177,442,400,00 0 159,560,400,00 0 134,103,800,00 0 107,727,800,00 0 110,345,800,00 0 112,473,800,000 112,473,800, 000 REVENUE Sales obtained from livestock dipping services 23,842,425,600 38,240,025,600 59,836,425,600 74,234,025,600 82,563,037,200 82,563,037,200 82,563,037,200 82,563,037,200 82,563,037,2 00 70 Years 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Interest Rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Payment Peiod 0 1 2 3 4 5 6 7 8 Project Year 1 2 3 4 5 6 7 8 9 Sales from rabies vaccines 3,000,000,000 4,500,000,000 6,000,000,000 6,750,000,000 9,000,000,000 9,750,000,000 9,750,000,00 0 Sales from Lampy Skin Disease vaccines 6,400,000,000 8,000,000,000 10,000,000,000 12,000,000,000 12,800,000,000 14,000,000,000 14,000,000,0 00 Sales from Gumboro vaccine 440,000,000 550,000,000 605,000,000 660,000,000 770,000,000 880,000,000 9,350,000,00 0 Sales from PPR Vaccine 5,250,000,000 7,000,000,000 8,750,000,000 10,500,000,000 12,250,000,000 14,000,000,000 15,750,000,0 00 Sales from vaccines against East Coast Fever (ECF) 60,000,000,000 36,000,000,000 24,000,000,000 24,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,0 00 Sales from vaccines against Foot and Mouth Diseases (FMD) 45,000,000,000 45,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,0 00 TOTAL REVENUE 128,842,425,60 0.00 119,240,025,60 0.00 128,926,425,60 0.00 148,284,025,60 0.00 149,918,037,20 0.00 154,473,037,20 0.00 159,383,037,20 0.00 163,193,037,200.0 0 173,413,037, 200.00 Net Profit/Loss 13,167,974,400. 00 45,730,374,400. 00 48,515,974,400. 00 11,276,374,400. 00 15,814,237,200. 00 46,745,237,200. 00 49,037,237,200. 00 50,719,237,200.00 60,939,237,2 00.00 Discount factor at 9% 1.00000 0.91743 0.84168 0.77218 0.70843 0.64993 0.59627 0.54703 0.50187 Discounted Net Cashflow (Present Value) (13,167,974,400 ) (41,954,471,927 ) (40,834,925,006 ) (8,707,430,027) 11,203,204,326 30,381,196,816 29,239,302,343 27,745,159,621 30,583,348,2 60 Net Present Value 24,487,410,006 Benefit - Cost Ratio (BCR) 1.03 IRR 13.8% Payback Period 4.07 Discounted Cost 142,010,400,00 0 151,348,990,82 6 149,349,718,03 7 123,209,904,95 2 95,002,512,820 70,015,678,397 65,795,595,198 61,527,020,248 56,446,807,5 67 Discounted Benefit 128,842,425,60 0 109,394,518,89 9 108,514,793,03 1 114,502,474,92 5 106,205,717,14 6 100,396,875,21 3 95,034,897,541 89,272,179,868 87,030,155,8 26 71 Assumptions Cost for construction of one dip tank is TZS 25,000,000 Cost for procurement of acaricide is TZS 50,000 per Liter At the end of the year 2022/23, a total of 2,812 dip tanks will be established, and will increase up to 11,308 dip tanks Each dip tank will be supplied with 84 liters of acaricides per year Cost for dippig one cattle is TZS 100 Initial production of vaccines against rebies will be 2,000,000 doses, cost of production is TZS 720 and sellig prince will be 1,500 Initial production of vaccines against Lampy Skin Disease will be 16,000,000 doses, cost of production is TZS 230 and sellig prince will be 400 Initial production of vaccines against Gumboro Disease will be 40,000,000 doses, cost of production is TZS 7.80 and sellig prince will be 11 Initial production of vaccines against PPR Disease will be 15,000,000 doses, cost of production is TZS 200 and sellig prince will be 350 Initial production of vaccines against ECF will be 12,000 doses and FMD is 3,000 Revenue collected from dipping services will be returned to the Central Government in order to support livestock sector 72 Attachment No.5: Cost-Benefit Analysis for Investiment in Strenthening Marketing Infrastructure of Livestock and Livestock Products Implementation period Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Repayment period 0 1 2 3 4 5 6 7 8 9 10 Cost Construction of 31 new secondary livestock market in accordance with Model Drawings in areas where primary markets are supposed to be upgraded 7,500,000,0 00 8,000,000,0 00 372,000,00 0 372,000,00 0 372,000,00 0 372,000,00 0 372,000,00 0 372,000,00 0 372,000,00 0 372,000,00 0 372,000,00 0 To build infrastructure at the National Veterinary Inspection Center and Kwala holding grounds to faciliate supply of quality livestock to the processing plants for international market. 200,000,00 0 60,000,000 60,000,000 60,000,000 60,000,000 30,000,000 30,000,000 30,000,000 30,000,000 Develop an electronic system for registration, inspection, approvals, licensing and quality control of Dairy and its products. 250,000,00 0 48,000,000 48,000,000 48,000,000 48,000,000 48,000,000 48,000,000 48,000,000 48,000,000 48,000,000 48,000,000 Building of 100 milk collection centers in strategic areas 3,000,000,0 00 3,000,000,0 00 2,000,000,0 00 2,000,000,0 00 Construction and rehabilitatation of (6) National Livestock holding grounds and its supportive infrastructure for domestic and foreign markets. 300,000,00 0 300,000,00 0 60,000,000 60,000,000 60,000,000 60,000,000 30,000,000 30,000,000 30,000,000 30,000,000 TOTAL COST 11,250,000, 000 11,348,000, 000 2,540,000, 000 2,540,000, 000 540,000,00 0 540,000,00 0 480,000,00 0 480,000,00 0 480,000,00 0 480,000,00 0 420,000,00 0 REVENUE Estimation of Revenue from: Movement Permit fees 727,200,00 1,939,200,0 3,757,200,0 3,151,200,0 3,151,200,0 3,151,200,0 3,151,200,0 3,151,200,0 3,151,200,0 3,151,200,0 3,151,200,0 73 Implementation period Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Repayment period 0 1 2 3 4 5 6 7 8 9 10 0 00 00 00 00 00 00 00 00 00 00 Market fee 1,116,000,0 00 2,976,000,0 00 4,836,000,0 00 6,270,804,0 00 6,270,804,0 00 6,270,804,0 00 6,270,804,0 00 6,270,804,0 00 6,270,804,0 00 6,270,804,0 00 6,270,804,0 00 Accomodation fee 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 3,600,000,0 00 Registration fee 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 Examination fee 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 120,000,00 0 Total Revenue 5,623,200,0 00 8,695,200,0 00 12,373,200 ,000 13,202,004 ,000 13,202,004 ,000 13,202,004 ,000 13,202,004 ,000 13,202,004 ,000 13,202,004 ,000 13,202,004 ,000 13,202,004 ,000 Net Profit/Loss (5,626,800, 000) (2,652,800, 000) 9,833,200,0 00 10,662,004, 000 12,662,004, 000 12,662,004, 000 12,722,004, 000 12,722,004, 000 12,722,004, 000 12,722,004, 000 12,782,004, 000 Discount Factor 9% 1.0000 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 0.4224 discounted net cash flow (Present Value) (5,626,800, 000) (2,433,761, 468) 8,276,407,7 10 8,233,023,3 53 8,970,082,8 56 8,229,433,8 13 7,585,715,3 18 6,959,371,8 51 6,384,744,8 17 5,857,564,0 53 5,399,256,6 23 Net Present Value 57,835,038, 927 IRR 0.68 Benefit - Cost Ratio 3.09 Discounted cost 11,250,000, 000 10,411,009, 174 2,137,867,1 83 1,961,346,0 39 382,549,61 4 350,962,94 9 286,208,31 7 262,576,43 8 240,895,81 4 221,005,33 4 177,412,53 9 Discounted Benefit 5,623,200,0 00 7,977,247,7 06 10,414,274, 893 10,194,369, 393 9,352,632,4 70 8,580,396,7 62 7,871,923,6 35 7,221,948,2 89 6,625,640,6 32 6,078,569,3 87 5,576,669,1 62 Total Discounted Benefit 79,940,203, 165 Total Discounted cost 27,504,420, 862 Paback Period 2.04 Assumptions Construction of 15 livestock markets in the fisrt year Construction of 16 livestock markets in the second year A total of 31 livestock markets will have been constructed in the third year. Each livestock market will cost TZS 500,000,000 to be constructed. 74 Cost for operating livestock market per month will be TZS 1,000,000 x 12x 31 =372,000,000 Cost for construction and rehabilitation of National Veterinary Inspection Center and Kwala holding grounds is TZS 200,000,000 Cost for developing an electronic system for registration, inspection, approvals, licensing and quality control is TZS 4,000,000 for each month x12 Cost for constuation of 100 milk collection centers in strategic areas, each MCC will cost TZS 100,000,000. First year 30 MCC, second year 30 MCC, Third year 20 MCC and Fourth year 20 MCC, Cost for construction of 6 livestock holding grounds, each will cost 100,000,000 for two phases, Return Period for cost of project investiment will be one year and four months after that, the project will start making profit Benefit cost - ratio; for each 4 TZS invested in the project will produce 10 TZS Accomodation fee TZS. 1000/=Per cattle and TZS 500 Per goat (GN478) Registration fee TZS. 500 Per cattle and TZS 200 Per goat (GN 478) Examination fee niTZS.1000 Per cattle and TZS.500 Per goat (GN 478) Total Discounted cost < Total Discounted benefit, this project is commercially viable, as the retuns are higher than investiment cost 75 Attachment No.6: Cost-Benefit Analysis for Strengthening National Ranching Company (NARCO) Implementation period Expenditure 2022/2023 (Y1) Expenditure 2023/2024 (Y2) Expenditure20 24/2025 (Y3) Expenditur e 2025/2026 (Y4) Expenditure20 26/2027 (Y5) Expenditure20 27/2028 (Y6) Expenditure20 28/2029 (Y7) Expenditure20 29/2030 (Y8) Expenditure20 30/2031 (Y9) Expenditure20 31/2032 (Y10) Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Repayment period 0 1 2 3 4 5 6 7 8 9 Procurement of 15,000 breeding herd for cattle 7,500,000,00 0 9,000,000,00 0 6,000,000,000 Procurement of 5,200 breeding herd for goats 600,000,000 440,000,000 Procurement of 5,200 breeding herd for sheep 600,000,000 440,000,000 Build 40 Livestock shed 60,000,000 60,000,000 Build 48 paddocks 480,000,000 480,000,000 144,000,000 144,000,00 0 144,000,000 144,000,000 144,000,000 144,000,000 144,000,000 144,000,000 Build 21 fattening units for livestock 160,000,000 176,000,000 1,680,000,000 1,680,000,0 00 1,680,000,000 1,680,000,000 1,680,000,000 1,680,000,000 1,680,000,000 1,680,000,000 Digging of 16 charcoal dams and its infrastructures 4,800,000,00 0 8,000,000,00 0 Drilling of 3 deep bore holes and its infrastructure 600,000,000 76 Implementation period Expenditure 2022/2023 (Y1) Expenditure 2023/2024 (Y2) Expenditure20 24/2025 (Y3) Expenditur e 2025/2026 (Y4) Expenditure20 26/2027 (Y5) Expenditure20 27/2028 (Y6) Expenditure20 28/2029 (Y7) Expenditure20 29/2030 (Y8) Expenditure20 30/2031 (Y9) Expenditure20 31/2032 (Y10) Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Repayment period 0 1 2 3 4 5 6 7 8 9 Procurement of 1 buldozer (D6) 500,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 Procurement of 8 tractors and its equipments 240,000,000 400,000,000 96,000,000 96,000,000 96,000,000 96,000,000 96,000,000 96,000,000 96,000,000 96,000,000 Procurement of 8 bailers, 8 mowers and 8 rakes 1,160,000,00 0 Procurement of 3 refregirated vans for meat handling 200,000,000 400,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 Producing pasture in 1,000 hectares farm 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 Bush pruning (Hectares) 2,500,000,00 0 2,500,000,000 2,300,000,000 2,200,000,000 2,100,000,000 2,000,000,000 1,900,000,000 TOTAL COST 19,407,500,0 00 19,415,500,0 00 10,469,500,00 0 1,969,500,0 00 4,269,500,000 1,969,500,000 4,169,500,000 4,069,500,000 3,969,500,000 3,869,500,000 Sales of cattle (No.) - 8,700,000,000 9,000,000,0 00 9,150,000,000 10,370,000,00 0 10,540,000,00 0 11,520,000,00 0 12,350,000,00 0 14,000,000,00 0 Sales of meat (MT) 6,400,000,000 6,480,000,0 00 7,290,000,000 7,380,000,000 7,650,000,000 8,700,000,000 8,800,000,000 9,000,000,000 Sales of Milk (Litre) 1,890,000,00 0 1,890,000,000 1,890,000,0 00 1,890,000,000 1,890,000,000 2,079,000,000 2,268,000,000 2,457,000,000 2,646,000,000 Revenue from selling goats 945,000,000 945,000,000 945,000,00 0 945,000,000 1,260,000,000 1,260,000,000 1,260,000,000 1,260,000,000 1,260,000,000 Revenue from selling Sheep 810,000,000 810,000,000 810,000,00 0 810,000,000 1,080,000,000 1,080,000,000 1,080,000,000 1,080,000,000 1,080,000,000 Revenue from Hay 2,250,000,00 0 2,250,000,000 2,250,000,0 00 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 Revenue from hides (PCs) 4,515,000 9,372,000 10,388,000 12,264,000 15,806,000 21,672,000 29,160,000 35,424,000 47,680,000 TOTAL REVENUE - 5,899,515,00 21,004,372,00 21,385,388, 22,347,264,00 24,245,806,00 24,880,672,00 27,107,160,00 28,232,424,00 30,283,680,00 77 Implementation period Expenditure 2022/2023 (Y1) Expenditure 2023/2024 (Y2) Expenditure20 24/2025 (Y3) Expenditur e 2025/2026 (Y4) Expenditure20 26/2027 (Y5) Expenditure20 27/2028 (Y6) Expenditure20 28/2029 (Y7) Expenditure20 29/2030 (Y8) Expenditure20 30/2031 (Y9) Expenditure20 31/2032 (Y10) Interest rate 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Repayment period 0 1 2 3 4 5 6 7 8 9 0 0 000 0 0 0 0 0 0 Net profit / Loss (19,407,500, 000) (13,515,985, 000) 10,534,872,00 0 19,415,888, 000 18,077,764,00 0 22,276,306,00 0 20,711,172,00 0 23,037,660,00 0 24,262,924,00 0 26,414,180,00 0 Discount factor at 9% 1.0000 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 Discounted net Cash flow (Present value) (19,407,500, 000.00) (12,399,986, 238.53) 8,866,990,994. 02 14,992,627, 964.32 12,806,743,77 7.29 14,478,070,44 0.19 12,349,395,16 4.98 12,602,388,94 1.06 12,176,743,40 1.86 12,161,822,24 5.14 Net Present Value 68,627,296,6 90.32 IRR 0.4 Benefit - Cost Ratio (BCR) 2.14 Discounted Cost 19,407,500,0 00.00 17,812,385,3 21.10 8,811,968,689. 50 1,520,815,3 63.98 3,024,621,438. 64 1,280,039,865. 31 2,486,136,619. 42 2,226,155,859. 39 1,992,158,197. 16 1,781,625,292. 84 Discounted Benefit 5,412,399,08 2.57 17,678,959,68 3.53 16,513,443, 328.30 15,831,365,21 5.93 15,758,110,30 5.50 14,835,531,78 4.40 14,828,544,80 0.45 14,168,901,59 9.02 13,943,447,53 7.98 Total discounted Benefit 128,970,703, 337.68 Total discounted cost 60,343,406,6 47.36 Pay back period 2.12 Assumptions; (i) Price of one catte is TZS 1,500,000; Price of beef per Metric Tone is TZS 8,000,000 (ii) Price of Milk per liter is TZS 1,500; Price of hides and skin per piece TZS is 5,000 (iii) Price of goat is TZS 150,000 - 200,000 (iv) Price of sheep is TZS 150,000 - 200,000 (v) Price for Hey bal is TZS. 3,000 78 (vi) Price of tractor is TZS is 80,000,000 (vii) Price for construction of cattle shed is TZS. 3,000,000 (viii) Cost for drilling a bore hole is TZS. 200,000,000 (ix) Cost for purchasing 1 Buldozer is TZS. 500,000,000 (x) Cost for procurement of refrigerated van is TZS. 200,000,000 (xi) Cost for construction of 1 paddock is TZS. 20,000,000 (xii) Cost of 1 Bailer is TZS. 85,000,000 (xiii) Cost of 1 piece of Mower is TZS. 50,000,000 (xiv) Cost of Rake per piece TZS. 10,000,000 (xv) Mating ratio ni 1:25 (xvi) Male-Female calving ratio is 1:1 (xvii) Cost for construction of feedloting infrastructure is 1 is TZS. 16,000,000 (xviii) Cost for digging 1 charcoal dam and its infrastructure is TZS. 800,000,000 (xix) 10% of Breeding Cows are Heifers