Does Tanzania have a potential in the sunflower oil sector?
Tanzania has great potential in the sunflower oil seeds sector, which can be scaled-up as one of its key sectors for industrial development.
How much does sunflower oil cost in Tanzania?
Sunflower oil comprises 83% of total edible oils produced in Tanzania but meets only 30% of demand. Sunflower farmer in Tanzania While consumers prefer refined sunflower oil over imported palm oil, they find the cost differential prohibitive (USD 2.2/L vs. USD 1.5/L, respectively).
Will reducing the cost of refined sunflower oil help meet local demand?
Reducing the cost of refined sunflower oil will help meet local demand. Based on this, the Tanzanian Planning Commission (housed in the Ministry of Finance Planning) asked USAID to help bring industrialization to life and help identify reforms that would catalyze investment to stimulate local production of edible oils.
How to attract investors to refining local sunflower oil?
In response, the USAID/Tanzania Mission found that the country needs to attract investors with an interest in refining local sunflower oil for low-income consumers. Such investors would require USD 10M in start-up capital for a 12,000MT/year capacity plant and a strong aggregation and distribution network.
Which country produces sunflower oil?
Tanzania is one country among others in the world producing sunflower oilseeds for raw materials in processing cholesterol-free edible cooking oil with a by-product used as livestock feeds. Currently sunflower oil makes about 13% of the world edible oil production.
How much sunflower oil is produced a year?
While the production of sunflower oil seeds varying between 75,000 to 100,000 tons from year 2001 to 2005, it increased in the last two seasons dramatically to more than 350,000 tons since 2006 (Figure 1).