[ad_1]
The edible oil sector in Tanzania amounts to 676.2 billion Tanzanian shillings ($ 294 million), with players such as Bidco Oil and Soap Ltd., the Murzah Oil Mills and Alaska factories in Tanzania.
The sector is in dire need of investors to fill the current supply gap of 320,000 tonnes and substantially reduce the import bill of Tsh 191.1 billion (83.19 million) in 2018. The country's annual demand for edible oil is 500 000 tonnes and an annual supply of 180 000 tonnes, leaving the country with no choice but to import the remaining 320 000 tonnes.
Demand forecasts indicate an increase of 500,000 tons to 700,000 tons of edible oil by 2030 and Tanzania is guaranteeing market growth to investors in the near future.
The main sources of edible oil in Tanzania are sunflower, palm, peanuts, sesame, soya and cotton. Oilseeds are produced in almost all parts of Tanzania. The main crop for the production of edible oil in Tanzania is sunflower because it can be grown in most parts of the country because it is drought-resistant, less susceptible to diseases and less expensive to grow than other crops oleaginous crops. However, sunflower production remains low and the benefits of its value chain have not been adequately realized.
For this reason, the Bank of Tanzania (BoT) conducted a study on the potential of the sunflower subsector and its contribution to the economy. The study was conducted in sunflower growing areas, covering all areas of the Bank of Tanzania, including the central zone (Dodoma, Iringa, Singida and Tabora regions); Eastern Zone (Lindi, Morogoro and Mtwara regions); Lake zone (Geita, Kigoma, Mara, Simiyu, Shinyanga, Kagera and Mwanza regions); Northern zone (Manyara, Kilimanjaro, Tanga and Arusha regions); and the southern uplands area (Katavi, Rukwa, Ruvuma, Mbeya, Njombe and Songwe regions).
Overall, the results indicate that there is huge potential for production of sunflower seeds in Tanzania. This includes strong demand for sunflower oil, large suitable areas, availability of market / demand, presence of water bodies, favorable policies and regulations, availability of energy in rural areas ( Rural electrification program through the Rural Electrification Authority (REA), and the possibility of a wide range of products that can be produced in the sunflower value chain.
Other results indicate that the performance of this sub-sector does not reflect the underlying opportunities. Production is characterized by a small area of cultivation and a low yield. On average, the crop is small scale, with an average farmer growing only 4 hectares producing only 0.6 tonnes of sunflower seed per hectare. This level is well below productivity, which is between 2.0 and 3.0 tonnes of sunflower seed per acre.
The role of farmers in the sunflower value chain is limited only to the production and sale of sunflower seeds. The treatment is characterized by small and medium size transformers and is limited to sunflower oil and animal cakes. It has been found that the poor performance of this sub-sector is related to a number of constraints. These included; poor agricultural practices, inadequate extension services, insufficient access to finance, low prices of on-farm sunflower products, inadequate processing facilities, threat of imported edible oils, and inadequate technology.
To meet these challenges, the following measures have been recommended. capacity building of farmers, improvement of extension and processing services; meet the financing needs of the sunflower value chain, especially farmers; meet the information needs of farmers; encourage public-private partnership in the sub-sector and strengthen the marketing infrastructure for sunflower-based products.
However, Tanzania believes it has the capacity to produce enough edible oil required and has therefore taken steps to increase its production. During the fiscal year 2018/19, the country increased tariffs on crude palm oil to 25% in order to promote local production of oilseeds. The country also increased duties on semi-refined and refined / refined / double edible oils, including sunflower oil, palm oil, peanut oil, olive oil, corn oil, rising from 25% to 35%.
exchange.co.tz
Source link
