2. Edible Oilseeds Production in Tanzania: The Case of Sunflower and Sesame SEPTEMBER 2012 TEOSA

3. Tanzania Edible Oilseeds Actors Ltd(TEOSA) PRESENTATION OUTLINE Background Findings Conclusions Recommendations

4. 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.

5. 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)

6. Tanzania Edible Oilseeds Actors Ltd(TEOSA) FINDINGS 5 Imports of palm-based oils in Mt Source:TRA 2007 2008 2009 2010 2011 Crude oil3,00048,654126,151125,851146,473 Palm olein Fractions crude -17--- Other palm fractions crude217-128- Palm oil (excl.crude)&its fractns, refined or not but not chemically modified 74 367 57184- Palm olein,RBD For industrial use248,884103,17531,12566,93161,069 Palm stearin,RBD For industrial use63,24522,4391251- Palm olein, RBD6,2786,9507,05611,59324,861 Palm stearin, RBD3,348 4503,5504,2122,087 Other palm olein products1,1319461,4103,597423 TOTAL325,962183,016169,473212,496234,912

7. Tanzania Edible Oilseeds Actors Ltd(TEOSA) FINDINGS 6 Domestic : Sunflower & Sesame production trend Source: MAFC

8. Tanzania Edible Oilseeds Actors Ltd(TEOSA) FINDINGS - MAFC 7 Domestic : Sunflower production growth rates Source: MAFC

9. Tanzania Edible Oilseeds Actors Ltd(TEOSA) 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 56.1 29.2 27.4 21.1 11.8 3.3 3.1 10.1 2.8 2.6 1.1 0.49 0.34 0.3 0.27 0.08 0.03 0.02 FINDINGS – 2002/03 & 2007/08 CENSUS Sunflower Key 2002/03 2007/08 Change between Censuses Production1,289.0% Hectares210.0% Households164.0% Yield44.0%

10. Tanzania Edible Oilseeds Actors Ltd(TEOSA) FINDINGS – 2002/03 & 2007/08 CENSUS 9 0.30 2.79 0.42 9.39 0.84 3.19 2.3 0.55 9.84 0.53 6.67 1.54 3.87 4.65 11.01 4.35 0.07 0.04 0.01 0.88 7.12 0.1 0.03 0.82 0.09 0.19 3.2.1 7 2.05 2.37 0.026 1.1 0.02 0.27 0.03 0.04 0.31 0.03 5.14 0.98 Sesame Key 2002/03 2007/08 Changes between Censuses Production160.7% Hectares104.1% Households64.9% Yield27.7%

11. Tanzania Edible Oilseeds Actors Ltd(TEOSA) 792,086 0.34973 ANALYSIS 10 Projections from Inter-censal growth rates - Sunflower r = annual growth rate n = number of years Q 2002/03 = 53,278mt Q 2007/08 = 238,663mt r ≈ Using r = 0.34973 Q 2011/12 =

12. Tanzania Edible Oilseeds Actors Ltd(TEOSA) 0.2112 Projections from Inter-censal growth rates - Sesame r = annual growth rate n = number of years Q 2002/03 = 22,675 mt Q 2007/08 = 59,103 mt r ≈ Using r = 0.34973 Q 2011/12 = 127,196 mt ANALYSIS 11

13. Tanzania Edible Oilseeds Actors Ltd(TEOSA) ANALYSIS Edible oil account structure

14. Tanzania Edible Oilseeds Actors Ltd(TEOSA) Edible Oil Account (Quantity n Mt) Source: MAFC, TRA ANALYSIS 13 20072008200920102011 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 oiln.a. m.a..16,121n.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 sources26.5%41.1%24.2%35.5%48.7%

15. Tanzania Edible Oilseeds Actors Ltd(TEOSA) Movement in edible oil account (Quantity n Mt) Source: MAFC, TRA ANALYSIS 14

16. Tanzania Edible Oilseeds Actors Ltd(TEOSA) CONCLUSIONS: Opportunities in the Edible Industry 15 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.

17. Tanzania Edible Oilseeds Actors Ltd(TEOSA) CONCLUSIONS: Opportunities in the Edible Industry 16 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.

18. Tanzania Edible Oilseeds Actors Ltd(TEOSA) CONCLUSIONS : Challenges Facing the Sub- Sector 17 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.

19. Tanzania Edible Oilseeds Actors Ltd(TEOSA) CONCLUSIONS : Challenges Facing the Sub- Sector 18 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.

20. Tanzania Edible Oilseeds Actors Ltd(TEOSA) RECOMMENDATIONS : Recommendations for Short-term 19 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.

21. Tanzania Edible Oilseeds Actors Ltd(TEOSA) RECOMMENDATIONS : Recommendations for Short-term 20 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.

22. Tanzania Edible Oilseeds Actors Ltd(TEOSA) END TEOSA Towards a competitive Tanzania edible oil industry