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
Imports of palm-based oils in Mt
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, 74 367 57 184 -
refined or not but not chemically
modified
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

Source:TRA
5
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
FINDINGS
Domestic : Sunflower & Sesame production trend
800 787

700
Metric000 toones

600
500 418
373 370 357
400 349

300 221
200 156 162
104 112 106 89
81 75 73 66
100 55 49 47
26 22
0
2003/04
2000/01

2001/02

2002/03

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11
Sunflower Sesame Expon. (Sunflower) Expon. (Sesame)
Source: MAFC
6
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
FINDINGS - MAFC
Domestic : Sunflower production growth rates
500%
445%

400%
320%
Annual Change in %

300%

195%
200%
114% 119% 115% 126%

100% 56%
53%
29%
8% 13%
-5% -1% -10%
-16%
0% -30%
2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10
-59% -70% -61%

-100%

Sunflower Sesame
Source: MAFC
7
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
FINDINGS 2002/03 & 2007/08 CENSUS
Sunflower
Key 0.03 0.3
0.49
3.3
2007/08 0.6 1.1 2.6
0.4 2.3
2002/03 0.27
11.8
0.2 0.34
68.3
29.2 0.03
21.3 56.1 6.4
6.6

0.02
0.08
27.4 10.1
3.1 0.01
5.9 1.8 21.1
0.13
7.3

Change between Censuses

Production 1,289.0%
2.8
Hectares 210.0% 0.4

Households 164.0%
8
Yield 44.0%
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
FINDINGS 2002/03 & 2007/08 CENSUS 0.03

Sesame 0.03
0.01
0.02
0.07
0.04

0.19

Key 0.53
1.1
0.30
0.026
2.3
0.04
2007/08 0.09
0.27
0 .55 0.88 1.54
0.1
2002/03 2.79 7.12
0.84
9.39

2.05 0.31
0.03
9.84 3.2.1 3.87
3.19 0.82 7
6.67
0.42

5.14 11.01

Changes between Censuses 2.37 0.98

4.65 4.35
Production 160.7%
Hectares 104.1%
Households 64.9%
9
Yield 27.7%
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
ANALYSIS
Projections from Inter-censal growth
rates - Sunflower
Q 2 00 7 / 0 8
r = annual growth rate rn 1
n = number of years Q 2 00 2 / 0 3
Q2002/03 = 53,278mt
Q2007/08 = 238,663mt

r 0.34973

Using r = 0.34973 Q2011/12 = 792,086

10
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
ANALYSIS
Projections from Inter-censal growth
rates - Sesame
Q 2 00 7 / 0 8
r = annual growth rate rn 1
n = number of years Q 2 00 2 / 0 3
Q2002/03 = 22,675mt
Q2007/08 = 59,103mt

r 0.2112

127,196
Using r = 0.34973 Q2011/12 = mt

11
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
ANALYSIS
Edible oil account structure
Cotton oil - Palm oil -
domestic domestic
4% 3%

Sunlfower oil -
domestic
28% Palm-based
imports
53%

Other oils imports

12%
Tanzania Edible Oilseeds Actors Ltd(TEOSA)
ANALYSIS
Edible Oil Account (Quantity n Mt)
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
Total imports 363,218 211,363 202,678 259,662 286,699
Domestic production
Sunlfower (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%

Source: MAFC, TRA

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Tanzania Edible Oilseeds Actors Ltd(TEOSA)
ANALYSIS
Movement in edible oil account (Quantity n Mt)
400
363
350
287
Mt- rounded to 000

300
260 288
250
212 203
200
163
146 143
150

100 80

50
2,007 2,008 2,009 2,010 2,011

Imports Domestic Expon. (Imports) Expon. (Domestic)

14
Source: MAFC, TRA
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 : Recommendations
for Short-term
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.

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Tanzania Edible Oilseeds Actors Ltd(TEOSA)
In the medium and long-term:
RECOMMENDATIONS : Recommendations
for Short-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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Tanzania Edible Oilseeds Actors Ltd(TEOSA)
END

TEOSA
Towards a competitive
Tanzania edible oil industry