TEOSA

Edible Oilseeds Production in

Tanzania:
The Case of Sunflower and
Sesame

SEPTEMBER 2012

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

PRESENTATION OUTLINE
Background
Findings
Conclusions
Recommendations

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

BACKGROUND
Importance 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.

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

BACKGROUND
Sources of Edible Oils
Tanzania
Imported
o crude palm oils refined in Tz
o finished palm oil
o others oils

Domestic source
o Sunflower Oil
o Cotton seed Oil
o Palm Oil
o Others (E.g. Simsim)

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

FINDINGS

Crude oil
Palm olein Fractions
crude
Other palm fractions
crude
Palm oil (excl.crude)&its
fractns, refined or not
but not chemically
modified
Palm olein,RBD For
industrial use
Palm stearin,RBD For
industrial use
Palm olein, RBD
Palm stearin, RBD
Other palm olein
products

2007
3,000

2008
48,654

17

17

74

367

2009
2010
2011
126,15 125,851 146,47
1
3
-

128

57

184

248,88 103,175 31,125 66,931 61,069

4
63,245 22,439
125
1
6,278
3,348
1,131

6,950
450
946

7,056
3,550
1,410

11,593 24,861
4,212
2,087
3,597
5423

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

FINDINGS

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

FINDINGS - MAFC

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

FINDINGS 2002/03 & 2007/08

CENSUS

Sunflower

Key

0.03

0.3
0.49

2007/08

2002/03

3.3
0.6

0.27

1.1

2.6

0.4

2.3

11.8
0.2

0.34

68.3
21.3

56.1
6.6

29.2

0.03

6.4

0.02
0.08

27.4

10.1

5.9

1.8

3.1

21.1

0.01

0.13

7.3

Change between
Censuses

Production

1,289.0%

Hectares

210.0%

Households

164.0%

Yield

44.0%

2.8
0.4

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

FINDINGS 2002/03 & 2007/08

CENSUS
0.03

Sesame
Key
2007/08

0.03

0.02
0.19
1.1

0.04

0.09

0.27
0.88

2002/03

7.12

0.1

2.05

0.31

0.03

3.2.17

0.82

5.14

Changes between
Censuses
Production
Hectares
Households

0.026

160.7%
104.1%
64.9%

2.37

0.98

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

ANALYSIS
Projections from Inter-censal
growth rates - Sunflower

Q
2007 / 08
r = annual growth rate
rn
1
Q 2002 / 03
n = number of years
Q2002/03 = 53,278mt
Q2007/08 = 238,663mt

0.349
73

792,0
Using r = 0.34973 Q2011/1286
=
10

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

ANALYSIS
Projections from Inter-censal
growth rates - Sesame

Q
2007 / 08
r = annual growth rate
rn
1
Q 2002 / 03
n = number of years
Q2002/03 = 22,675mt
Q2007/08 = 59,103mt

0.211
2

127,19
Using r = 0.34973 Q2011/12 6mt
=
11

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

ANALYSIS

Edible oil account structure

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

ANALYSIS
2007

2008

2009

2010

2011

Imports
Palm-based

325,962 183,016 169,473 212,496 234,912

Other oils

37,256 28,347 33,205 47,166 51,787

363,21 211,36 202,67 259,66 286,69
8
3
8
2
9

Total imports
Domestic production
Sunlfower (at 32.5% recovery
rate)
120,186 135,953 52,656 113,385 255,743
Palm oil
Cotton oil

10,667 11,797 12,040 13,268 16,110

n.a.
n.a.
m.a.. 16,121
n.a..

Sub-total

130,85 147,75
142,77 271,85
3
0
64,696 4
3 13

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

ANALYSIS

14

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

CONCLUSIONS: Opportunities in
the Edible Industry

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 oils
Subsidy 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.
15

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

CONCLUSIONS: Opportunities in
the Edible Industry
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.

16

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

CONCLUSIONS : Challenges
Facing the Sub-Sector
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.
17

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

CONCLUSIONS : Challenges
Facing the Sub-Sector

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 requirements
Packaging materials
not readily accessible.

18

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

Recommendations for Shortterm

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 TEOSAs capacity particularly on
knowledge and information management
which is pre-cursor to effective services to
members, advocacy and dialogue with the
Government.

19

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

Recommendations for Shortterm

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.

20

Tanzania Edible Oilseeds Actors

Ltd(TEOSA)

END

TEOSA

Towards a competitive
Tanzania edible oil industry