Local Investment Climate Sunflower Value Chain for Dodoma and Kigoma regions Presented to Stakeholders on 28/08/14 By Charles Ogutu (MRA Management Associates Ltd

Study Area

Methodology Multi dimensional approach Interviews with different actors Focus group discussions Literature reviews Observations Synthesis and analysis of information

Background Consumption of Vegetable Oils

Global Production of Sunflower

Sunflower Value Chain There are constraints at all levels of the Chain Sunflower Value Chain There are constraints at all levels of the Chain. Process and product upgrading currently missing Inputs Agro dealers Producers processors Traders Retailers Consumers

Constraints-1 Quality of inputs Access to and distribution of inputs Access of finance Extension services Subsistence farming- Limited knowledge on GAP Pests and diseases Weather

Constraints-2 Limited trust between producers and traders/processors Storage facilities Road infrastructure GMP issues Branding No wholeselling -direct selling

Supporters of Sunflower GOVT Central Government: Supports subsidy through voucher, training and setting, enforcing and monitoring of standards through its agencies such as TBS and TFDA Local Government Authority: Tasks with improvement of the local infrastructure and extension services NGO/Private International/Local and CBOs. Supports farmer groups/AMCOS strengthening trainings, market linkage, advocacy, provides some extension, Value chain development, agronomic knowledge, linkage for financial access grant provision etc Provision financial credits by banks, MFIs and NGOs Research Undertakes research on new breeds, soil analysis and certification of new sunflower breeds

Sunflower & oilseeds Production Trends in Tanzania (MT) 2009 2010 2011 2012 2013 % Sunflower 162,019 348,877 786,902 1,125,000 2,625,000 51% Groundnuts 256,401 320,582 651,397 810,000 1,425,000 28% Sesame 72,932 65,557 357,162 456,000 1,050,000 20% Palm Oil 17,000 24,880 40,500 .79% Soya 3,900 4,300 2,500 3,490 5,830 .11%

Production in Kongwa and Dodoma ? Dodoma Urban-2010-14 Kongwa-2010-14 ?

Sunflower oil production –Estimates for 09-2013 (MT) 2009 2010 2011 2012 2013 Seed Kernels produced 162,019 348,877 786,902 1,125,000 2,625,000 Exports 50 130 146 778 Est. PHL and Recycled 15% 24,303 52,332 118,035 168,750 393,750 Processed kernels 137,716 296,495 668,737 956,104 2,230,472 Sunflower oil 41,314 88,949 200,621 286,831 669,142 1 bag of 70 Kg produces 20 Liters of Oil . Tanzanian average consumption is 14 Liters of sunflower oil PA

Edible oil Imports (TRA records) Year 2009 2010 2011 2012 2013 Quantity (MT) 169,987 156,268 248,479 223,076 221,858

Importation of Edible Oil (BIDCO)

Price Trends for Seed Kernels (70KG bag, Cake (45kgs) and 20 Liter Oil (source: CEZOSOPA, farmers and traders) 2009 2010 2011 2012 2013 Kernels 15000 35000 25000 38000 40000 55000 50000 58000 Oil 44000 48000 60000 Cake 4500 6750 9000 11250 13500

Sunflower oil Processing in Kongwa and Dodoma Processors: There are 61 Processors in Dodoma Urban and 29 in Kongwa district. Only 33 have ever registered with CEZOSOPA. Processing is at an average of 90 man days/PA Processors process average of 20 bags of 70kgs in a day during production. Chinese y105 is mostly used. Avg. Sunflower processed is 7,560 MT of kernels = 2,268 MT sunflower oil in Dodoma and 3,654 kernels in Kongwa= 1,096 MT Sunflower oil, PA. Kasulu District has only 4 processors

Certifications and Oil refining 4 Processors have received TBS certification in Dodoma: Nyemo Investment, Jackma Enterprises, Heshima ya Jiko and Kisasa Supplies. There are 2 Mini refineries installed by Nyemo and Heshima ya Jiko 2 Complete refineries delivered for installation at Uncle Milo and Jackma Enterprises (support by USAID-PCP)

Marketing of Sunflower- Oil and Cake Processors sell oil directly to consumers and to retailers. No Whole sellers were seen. No oil from Dodoma was found in supermarkets in Dar Cake mainly bought by Traders to different destinations. In Kongwa, road side selling of oil is rampant. Farmers are slowly selling oil instead of kernels

Whole sale trend of Korie (palm oil) in Dodoma Urban

Prices for Sunflower oil in Dar es salaam- Imalaseko Supermarket (July 2014

Exports of Sunflower Products/seed meal and cake via Namanga border Source: PHS Namanga)

Exportation of Sunflower Seed kernels (flowers) Source: PHS Northern Zonal Office

Margin % share amongst the actors per bag of 70kg kernels Dodoma and Kongwa Kasulu

THANK YOU FOR LISTENING Conclusion Competitiveness of the commodity is only possible with Value addition. THANK YOU FOR LISTENING