249 Banana (Musa spp.) Processing Businesses: Support Environment and Role in Poverty Reduction in Rural Tanzania S.R.B. Mgenzi 1 , I.M. Mshaghuley 1 , C. Staver 2 and J.M. Nkuba 1 1 Maruku Agriculture Research Institute, P.O. Box 127, Bukoba, Tanzania 2 Bioversity International, Parc Scientifique Agropolis II, 34397, Montpellier, Cedex 5, France Keywords: by-products, income, marketing, policy, service providers Abstract This study identified the strengths and weaknesses of small banana (Musa spp.) processing businesses and their potential for poverty reduction in rural Tanzania. A workshop was organized that mapped and characterized the banana processing businesses, service providers and the general banana processing sector in Tanzania. Common banana products in the study areas are banana juice and local brew. Other banana by-products include hard alcohol (‘gongo’), wine, dried bananas, flour, breads and biscuits. In general, processing of bananas was observed to be very limited. It is estimated that 80% of bananas produced are cooking bananas, 10% beer bananas, 8% dessert bananas and 2% plantains. Processed bananas account for 5% of sales, while fresh bananas for 95%. Banana processing businesses are limited to locally made and locally consumed products. Tanzania policies favor postharvest and value adding technologies for many products, including banana products. Specific cultivars of bananas are needed for certain products. Different banana types produce different qualities of products. The price of bananas depends on the type of bananas, i.e., cooking bananas fetch higher prices than beer bananas. Banana processing businesses are mainly focused on soft and hard drinks with little confectioneries. Service providers in banana processing are limited. Banana processing still needs a lot of development for banana producers in Tanzania. INTRODUCTION The Kagera region is situated in the Northwestern corner of Tanzania, on the western shores of Lake Victoria. Geographically, it lies between 1º05’ S and 30º09’ E. The region borders Uganda in the north, Rwanda and Burundi in the west, and Kigoma, Shinyanga and Mwanza regions in the south. It covers an area of 39,168 km 2 , with 1,850,000 ha of arable land. Administratively, the region is divided into five districts (Biharamulo, Bukoba, Muleba, Karagwe and Ngara districts), which are divided into a total of 25 divisions, 150 wards and 540 registered villages. According to a 2002 census, Kagera region has a population of 2,033,888 people (URT, 2002). The climate of Kagera region is strongly influenced by its proximity to Lake Victoria. Prevailing winds from the east tend to bring higher rainfall to the lakeshore strip and the highlands. On the other hand, movements of air masses influence the climate of the western parts of the region. The region experiences a bimodal rainfall distribution. Mean annual rainfall varies from 850 to 1,400 mm. Areas along the lake have an annual average rainfall of 1,400 to 2,000 mm. Agriculture is the dominant preoccupation of the region’s inhabitants. Major food crops are bananas (Musa spp.), beans (Phaseolus vulgaris), maize (Zea mays), cassava (Manihot esculenta) and sorghum (Sorghum vulgare). Export crops are coffee (Coffea arabica and Coffea canephora), cotton (Gossypium hirsutum), tea (Camellia sinensis) and tobacco (Nicotiana tabacum). Livestock keeping and fishing are other activities in the region. The total area under agriculture is 625,500 ha (URT, 2001). Banana is by far the most grown food crop in the area. It covers 65% of the total land under agriculture. In the Kagera region, banana is a staple food for about 95% of the total population and it plays a very significant role in the regional economic development (Nkyeganaki et al., 1998). Since the crop is harvested Proc. IC on Banana & Plantain in Africa Eds.: T. Dubois et al. Acta Hort. 879, ISHS 2010