Edible Oilseeds Production in Tanzania: The Case of Sunflower and Sesame

SEPTEMBER 2012

TEOSA

Tanz

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Edi

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Oils

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Act

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TEO

SA)

PRESENTATION OUTLINEBackground FindingsConclusions Recommendations

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BACKGROUNDImportance of Edible Oils

Essential for normal health of cells (body) growth.Intake is measured as Fat-to-energy ratio (FER)Findings by FAO – FER range between 7% - 40%Minimum recommended is 15% ≈ 21Kgs/capita per annum

NOTE: Excessive intake poses health risks too.

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BACKGROUNDSources of Edible Oils Tanzania

Imported o crude palm oils refined in Tzofinished palm oiloothers oils

Domestic sourceo Sunflower OiloCotton seed OiloPalm OiloOthers (E.g. Simsim)

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2007 2008 2009 2010 2011

Crude oil 3,000 48,654 126,151 125,851 146,473 Palm olein Fractions crude - 17 - - - Other palm fractions crude 2 17 - 128 -

Palm oil (excl.crude)&its fractns, refined or not but not chemically modified

74 367 57 184 -

Palm olein,RBD For industrial use 248,884 103,175 31,125 66,931 61,069

Palm stearin,RBD For industrial use 63,245 22,439 125 1 - Palm olein, RBD 6,278 6,950 7,056 11,593 24,861 Palm stearin, RBD 3,348 450 3,550 4,212 2,087

Other palm olein products 1,131 946 1,410 3,597 423 TOTAL 325,962 183,016 169,473 212,496 234,912

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FINDINGS

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FINDINGS - MAFC

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8

0.4

21.3

7.3

6.6 6.4

5.9

2.3

0.2

1.8

0.6

0.13

0.03

0.01

0.4

68.3

56.129.2

27.4

21.1

11.8

3.3

3.110.1

2.8

2.61.1

0.49

0.34

0.3

0.27

0.08

0.03

0.02

FINDINGS – 2002/03 & 2007/08 CENSUSSunflower

Key

2002/03

2007/08

Change between Censuses

Production 1,289.0%

Hectares 210.0%

Households 164.0%

Yield 44.0%

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0.887.12

0.1

0.03

0.82

0.09

0.19

3.2.17

2.05

2.37

0.0261.1

0.02

0.27

0.03

0.04

0.31

0.03

5.14

0.98

SesameKey

2002/03

2007/08

Changes between CensusesProduction 160.7%Hectares 104.1%Households 64.9%

Yield 27.7%

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792,086

0.34973

ANALYSIS

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Projections from Inter-censal growth rates - Sunflower

r = annual growth raten = number of yearsQ2002/03 = 53,278mt

Q2007/08 = 238,663mt

r ≈

Using r = 0.34973 Q2011/12 =

103/2002

08/2007

n

Q

Qr

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0.2112

Projections from Inter-censal growth rates - Sesame

r = annual growth raten = number of yearsQ2002/03 = 22,675mt

Q2007/08 = 59,103mt

r ≈

Using r = 0.34973 Q2011/12 =127,196

mt

ANALYSIS

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103/2002

08/2007

n

Q

Qr

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ANALYSISEdible oil account structure

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ANALYSIS

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2007 2008 2009 2010 2011Imports Palm-based 325,962 183,016 169,473 212,496 234,912 Other oils 37,256 28,347 33,205 47,166 51,787 Total imports 363,218 211,363 202,678 259,662 286,699 Domestic productionSunlfower (at 32.5% recovery rate) 120,186 135,953 52,656 113,385 255,743 Palm oil 10,667 11,797 12,040 13,268 16,110 Cotton oil n.a. n.a. m.a.. 16,121 n.a..Sub-total 130,853 147,750 64,696 142,774 271,853

Total 494,071 359,113 267,374 402,436 558,552 Percent of domestic sources 26.5% 41.1% 24.2% 35.5% 48.7%

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Industry

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Government Policies: Growing recognition of the strategic role of edible oilseeds in the economy by the Government e.g.

VAT waiver on domestically processed edible oilsSubsidy in planting seeds under ASDP Devising parallel standards for edible oils to allow SMEs access markets, etc; Agricultural Sector Development Strategy, Agricultural Marketing Policy, Tanzania Industry Strategy, Southern Agriculture Growth Corridor of Tanzania (SAGCOT) Kilimo Kwanza Resolution, etc.

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Industry

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Development partners: There is solid support by development partner NGOs e.g. RLDC, SNV, Aga Khan and VECO. Building value chain actors’ bodies to promote the sector.Private Sector: Growth in investment by private sector and emergence of actors associations e.g. CEZOSOPA, TASUPA, TEOSA, etc. Technology: Scalability of oil pressing technology allows broad/rural - based value addition.

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Sector

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Production: Yield is still very low, it is feasible to produce up to 2 – 3 times under good agriculture practices. Limited R&D activities on planting materials and plant health management.

Marketing: Trade is non-structured, seeds are not graded and there is rampant use of non-standard measurements and packages; High post-harvest losses due to lack of appropriate storage facilities; Sub-sector is not yet insulated from global supply shocks.

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Sector

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Processing Technology: Lack of standards and enforcement mechanism for oil expelling technology.Lack of small scale oil refining technology for products to conform to TFDA requirementsPackaging materials not readily accessible.

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for Short-term

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In the short-run: There is an urgent need to strengthen emerging edible oil seeds actor bodies especially TEOSA The sub-sector should have anchor departments at two key Ministries of Agriculture and Industry to have a common strategy. Build TEOSA’s capacity particularly on knowledge and information management which is pre-cursor to effective services to members, advocacy and dialogue with the Government.

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for Short-term

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In the medium and long-term: Position the domestic edible oil sub-sector in the regional (EAC and SADC) market for edible oils; Development of linkages e.g. to livestock and export market for seedcake. Advocate for establishment of Tanzania Edible Oil Development Board under PPP framework to oversee the growth of the sector.

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END

TEOSATowards a competitive

Tanzania edible oil industry