Annexes - DPG Tanzania
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Annexes Table of Contents Contents Annexes .........................................................................................................................................................1 Annex A1. Sunflower Value Chain Map, Southern Highlands. ...............................................................2 Annex A2: Generic Commercial Sunflower Value Chain Map ................................................................5 Annex B: Persons Met ...............................................................................................................................6 Annex C: Detailed Economic Calculations ...............................................................................................9 Annex C1: Indicative added values of the sunflower chain ..................................................................9 Annex C2: Indicative Sunflower Farm Crop Gross Margins Per Hectare ..........................................10 Annex C3 Processor Performance ...........................................................................................................12 Annex D: Stakeholder Analysis and Technical Discussions ...................................................................16 Annex E:. Suggested Commitments for a Public Private Partnership for the edible oils sub-sector. .....28 Annex F: References...............................................................................................................................29 Annex G: Maps ........................................................................................................................................31 document1Document1 Annex A1. Sunflower Value Chain Map, Southern Highlands. District / regional Consumption Markets Institutional Consumption National HH Consumption of edible oil & seedcake Shops/ superm arkets Export Edible Oil & Seedcake Export HH Consumption Market Retailer Retail Secondary Trader Integrated Small-Scale Farmer Channel 10 % Trade Processing Primary trade/ Collection Processors (Local & Regiona Rural Brokers/ Agents Sunflower Farmers households Production Inputs Supply Research Channel 1: Integrated Smallholder s farmer Importers Agro-dealers at district level (Stockist) >100 ARI-Ilong & Uyole Basic Seed Farms. ARA. Channel 2: Commercial S/flower Source SIDO document1Document1 Channel 3: Processors Imported Seeds: Channel 4: Brokers Input voucher system distributors (300) QDS produced by selected farmers Channel 5: Exports Channel 6: Animal Feeds Channel 1: Integrated Smallholders This channel consists of smallholder farmers cultivating an average of two acres primarily as a cash crop and source of extra income. It is called integrated system in the sense that farmers undertake production, harvest and transport to the selling points in small quantities (by bicycles, handcarts or on human heads). It produces the largest volume of sunflower. Backyard, district and regional processors are the main buyers. Other buyers are the brokers and agents of the processors. This channel accounts for approximately 60% of marketed produce. Channel 2: Commercial Sunflower Producers This is the second largest producer including contracted individual farmers, producer groups and institutions such as prisons and JKT farms. Some processors such as Mohamed Enterprises also produce part of the sunflower they process. Major processors include NJODECO and SHADECO and many of them use brokers to purchase additional quantities of sunflower oilseeds they need from the smallholders on their behalf. Wholesale markets for processed sunflower edible oil and seedcake are located at district, regional and national levels. Dar es Salaam is the largest market in the country. Dar es Salaam sunflower oil processors source sunflower oilseeds from upcountry regions such as Iringa, Mbeya, Morogoro, Dodoma, Singida, Ruvuma, Tanga and Arusha. Sunflower oil traded in SH markets and interregional markets accounts for about 70% of the sunflower oil business. Wholesale sunflower oil traders normally operate either as members of an association or as individual wholesale traders. The main sources of produce for these wholesalers are smallholders from sunflower producing areas in the country including the Southern Highlands. Retail Traders: Retailers buy sunflower oil from small processors which they package in plastic containers either gallons (5lts) or debe (20lts). Common transport used by retailers from the these processors to carry the sunflower oil to their respective kiosks include push carts, bicycles, passenger buses or a jointly hired pick ups. Suppliers to institutional consumers such as supermarkets, schools/colleges and hospitals normally buy refined sunflower oil wholesale directly from the large processors. Similarly, restaurants and hotels are key buyers from the processors and the amount purchased differs such that large hotels contract suppliers through tenders, smaller ones purchase sunflower oil on retail. Channel 3: Processors This channel accounts about 30% of the sunflower produced in the region. Trading of sunflower oilseeds commences at the farm-gate and two categories of buyers. The farm gate buyers are either primary buyers who buy and either sell to secondary buyers or process it themselves and sell the oil, or independent secondary buyers for their own factory in town. Some of these now have contractual agreement with farmer producer groups for the supply of seed. Reportedly processors are able to sell all sunflower oil they produce. During the off season processors source sunflower seeds from outside the SH especially Dodoma and Singida. All the sunflower produced in the country is processed into edible oil. Processing is done at various scales, from the backyard to large scale operators The main reasons for high growth in channel 3 is the high local demand for sunflower oil particularly due to growing health document1Document1 consciousness, an increase in purchasing power especially in the urban areas where incomes are relatively high, stable supply of sunflower oilseeds particularly due to improvement in the road infrastructure that has reduced transport costs from upcountry and low production costs (packaging materials, no ingredients or additives), low storage costs (both oilseeds and oil) which make it economically feasible to undertake processing throughout the year. However, stringent competition from cheaper imports is a barrier to entry. The bureaucratic and costly licensing and food safety certification procedures by the Tanzania Bureau of Standards (TBS) and the TFDA are some of the factors retarding the growth rate. Channel 4: Supermarkets Retail The supermarket retailers, including for example Shoprite and Uchumi have contracted a few brokers to supply sunflower oil. In this regard, the supermarkets enter into short-term contracts of three or four months based on pre-agreed amounts, quality standards and buying prices. The contracted brokers are often wholesalers or processors who are likely to have better quality refined oil. Most of the sunflower oil produced is sold and consumed locally with only small amounts exported Channel 5: Exports Sunflower oil and seedcake for export are procured either directly from the processors or through brokers. This channel is relatively small Export market for sunflower oil and seedcake include India, Zambia, Zimbabwe, Comoro and DRC. Channel 6: Animal Feed Processors The animal feeds industry is not fully organised but seed cake is purchased from processors in the Southern Highland and elsewhere. Seed cake from the big millers is mostly exported to India. document1Document1 Annex A2: Generic Commercial Sunflower Value Chain Map UGANDA COMMERCIAL SUNFLOWER VALUE CHAIN MAP MARKET FUNCTIONS MARKET PARTICIPANTS SUPPORTING MARKETS Consumers Retailing Retail Institutional Warehousing Processing Animal Feed Market Exports Wholesaling Packaging Materials Soaps & Detergents Edible Oils & Margarine Transport Refining, Blending & Packaging Financial Services Milling Meal Byproduct Crude Oil Buying Agents Solvent Extraction Expeller Extraction Bulking Machinery & Equipment Supplies Storage Procurement & Bulking Production & Post Harvest Handling Small Scale Farmers Input Supply Extension Producer Organizations Rural Stockists Medium Scale Farmers Inputs Suppliers Extension Service Providers ENABLING ENVIRONMENT document1Document1 Research & Development Development Partner Projects Annex B: Persons Met NAME Diana Tempelman Michael Winklmaier Martin Hilmi David Hitchcock Monica Gorman Gerald Runyoro Julius Wambura Dr Deus Ngaruko Dr William Pallangyo Nsanya Ndanshau David Hitchcock Martin Hilmi Fidelis Lubinza Ferdinand Mgaya Rashid Ali Mamu Enock Ndondole Hassan R. Mheto Enock Ugulumu Andes B. KakiKo Sebastian Mhanga POSITION OR OCCUPATION FAOR CTA Consultant LTO Programme Director Programme Assistant Chief Operating Officer Dean, Snr Lecturer Lecturer National Coordinator Lead Project Officer Consultant Managing Director Managing Director Sunflower processor Rosemarina W. Jima Secretary Officer Advisor – Value Chains Managing Director Ringo Iringo Chairman Tertula M. Swai (Terri) Beatrice Frank George Mboje Jeffrey Lewis Paulo Msangi Augustine Nyenza Cluster Development Specialist Intern Richard Hegera Ipyana Kabuje document1Document1 Propretor Livestock Officer Municipal Agriculture and Livestock Officer Extension Offier Trade Officer ORGANISATION FAO FAO FAO FAO OXFAM Dao FRABHO Enterprises Open University of Tanzania Open University of Tanzania FAO/SH Project FAO FAO FAO FAO TEOSA Shadeco Ltd MEOSA Edible Oils Seeds Actors Teosa MAFSC/DSM SNV LOCATION Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Rome Rome and Dar Es Salaam Iringa Mbeya Dodoma Iringa Morogoro Iringa Dar Morogoro Songela Ltd. Processing and contract farming Central Zone SF Processors. CEZOSPA TZ Private Sector Foundation MAFC ANSAF Korongo Ltd Regional Office Municipal Office Shingida Municipal Office Municipal Office Iringa Iringa Dodoma Dar es Salaam Dar es Salaam Dar es Salaam Kigamboni Iringa Iringa Gerard Mwamuhamila Alpha Mgimba Tito Mwanjala Wilma MtuiAdrian Mbiza Adrian Mbiza Agricultural Officer Municipal Office Iringa Alpha Agrochemicals Loan Officer (Agriculture) Project Coordinator Private Trader Iringa Anita Mwakyoma Victor Mgoo Zonal Research Coordinator Researcher (Sunflower) Research Assistant Country Programme Officer Director General Deputy Chief of Party Agricultural Economist Director, Seed Certification Marketing & Distribution Manager Admin & Finance Officer Marketing Manager Sunflower Agronomist Sunflower Processor Managing Director Salama Kilanji Small Farmer Kinyunyu Henry Private sunflower processor and trader Deputy CEO Director Food Safety Marketing Executive Ally Mbwando Eveta Maleo Mwatima Juma Mike Laiser Martin Mason Nyasebwa Chimagu Firoze Mwakitwange Philemon Kawamala Safiel Msovu Bernard Muga Aida Magelanga Jennifer Baarn Raymond Wigenge Joan Kimerei Julien Comoleante Alex Mangowi Fidelis J. Temu document1Document1 Commercial Manager Agricultural Officer Regulatory Service Manager National Iringa Microfinance Bank MUVI . Iringa (Coordination for rural entrepreneurship) ARI Research Station Ilonga ARI Research Station Ilonga ARI Research Station Ilonga IFAD Dar es Salaam SIDO Nafaka Dar es Salaam Morodoro Regional Agricultural Office TOSCI Mbeya ASA Morogoro Morogorro Tanseed International Morogoro Tanseed International Morogoro ARI Research Station Uyole, Mbeya Private sector Highland Seeds Producers Private VEKI General Supplies SAGCOT TFDA Frasal Intertrade Co Ltd Yara Tanzania Ltd DIFID Tanzania Warehouse Board Mbeya Mbeya Maskanza Village, Kilolo district, Iringa Morogoro Dar es Salaam Dar es Salaam Lindi Dar es Salaam Dar es Salaam Dar es Salaam Sura D. P. Ngatuni Robert Makungwa Prosper Nambaya Lakshmi Naryana Dinesh Khanna Twalib Njohole Leandro Kinabo Eng. Tumaini Mtitu Ridhiwani Ramadhani David Rohrbach Tonedeus Munganyizi Leonard Mususa Planning and Promotion Manager Service Manager, Corporate Banking Senior Relationship Manager, Corporate Banking General Manager Factory Managter Assistant to Head ofSeed Unit Director Standards Development Process Technology Standards Manager Senior Standards Officer Senior Agricultural Economist Director of Research and Policy Country senior Partner Onesmo Mbelle Stella Lugongo Genoveva Kilabuko Julius Mwambeso document1Document1 i/c Food and Beverages Ag. Assistant Director, Industry Support Promotion i/c Textile and Garments Tanzania Warehouse Board National Microfinance Bank National Microfinance Bank Dar es Salaam Murzah Oils Ltd Murzah Oils Ltd Ministry of Agriculture Food Security and Cooeratives. Tanzania Bureau of Standards Tanzania Bureau of Standards Tanzania Bureau of Standards World Bank Dar es Salaam Dar es Salaam Dar es Salaam Tanzania Revenue Authority Price Waterhouse Coopers Ministry of Industry Trade & Marketing Ministry of Industry Trade & Marketing Ministry of Industry Trade & Marketing Dar es Salaam Ministry of Industry Trade & Marketing Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Dar es Salaam Annex C: Detailed Economic Calculations Annex C1: Indicative added values of the sunflower chain (Based on field data) One bag of 65 Kg yields approximately 17 litres of crude oil Item Farmer Variable costs per bag Sales: 1 bag of 65 Kg of seed @500/Kg Value added Value added % Processor Purchase of one bag of seed at farmgate Operating costs (50% of sales) Total costs Sale of 17 Ltr oil @ TS 2500/Litre wholesale Sale of 45 Kg cake @ TS 200/Kg Total sales Value added Value added % TS 25,000 32,500 7,000 28% TS 32,500 9,500 42,000 42,500 9,000 51,500 9,500 22% Retailer Retailer purchases 17 litres @ 2500 Costs 10% of sales Total costs Sells 17 Litres @ 3000 per litre Value added Value added % TS 42,500 4,200 44,700 51,000 6,300 14% Farmer Share of retail price % 13.6% document1Document1 Annex C2: Indicative Sunflower Farm Crop Gross Margins Per Hectare Model No 1. Traditional using home saved seed. No fertiliser Per Hectare Unit Unit No of cost Units Gross Income Sales of crushing seed Kg 500 600 Variable Costs Seed (home saved) Fertiliser Bags Misc (lump sum) Sub Total Kg Kg Bag LS 0 0 1000 2000 Hired labour md Land clearance md Cultivations md 30 Planting md Fertilise application md Weeding md 20 Harvesting md 10 Threshing md Storage md Transport to home md Other md Sub-total variable costs Gross Margin with hired labour *Gross margin with family labour Source: various * Represents return to family labour Exchange Rate. US$ = TS 1574 at August 2012 document1Document1 0 0 6 1 2500 2500 2500 2500 2500 2500 2500 2500 2500 TZS USD 300000 190 0 0 6000 2000 8000 0 0 4 1 5 0 0 75000 0 0 50000 25000 0 0 0 0 158000 142000 292000 0 0 48 0 0 32 16 0 0 0 0 100 90 185 Model No 2. Using improved seed no fertiliser. Per Hectare Gross Income Sales of crushing seed Variable Costs Seed (home saved) Fertiliser Bags Misc (lump sum) Sub Total Hired labour Land clearance Cultivations Planting Fertilise application Weeding Harvesting Threshing Storage Transport to home Other Sub-total variable costs Gross Margin with hired labour *Gross margin with family labour document1Document1 Unit Unit cost No of Units TZS Kg 500 1500 750000 476 Kg Kg Bag LS 0 0 1000 2000 0 0 6 1 0 0 6000 2000 8000 0 0 4 1 5 0 0 75000 0 0 50000 25000 0 0 0 0 158000 592000 742000 0 0 48 0 0 32 16 0 0 0 0 100 376 471 md md md md md md md md md md md 30 20 10 2500 2500 2500 2500 2500 2500 2500 2500 2500 USD Model No 3. With improved seed and fertiliser Gross Income Sales of crushing seed Unit Unit cost No of Units TZS USD Kg 500 2500 1250000 794 Kg Bag Bag Ha Ha Ha Ha Lit Ha Ha LS 4000 75000 2500 37500 112500 100000 125000 30000 75000 75000 50000 7 3 18 1 1 1 1 1 1 1 1 28000 225000 45000 37500 112500 100000 125000 30000 75000 75000 50000 0 903000 347000 Variable Costs Seed Fertiliser Bags Land rent Cultivations Planting Weeding 2 times Pesticides Harvesting Threshing Transport to home Other Sub-total variable costs Gross Margin Source: Iringa District Council Agri-Input Prices As of August 2012. Item Unit Sunflower Seed Kg Urea Bag of 50 Kg CAN Bag of 50 Kg DAP Bag of 50 Kg Minjingu Rock Bag of 50 Kg Phosphate Minjinggu RP plus N Bag of 50 Kg Source. Input Dealer, Iringa. Annex C3 Processor Performance Taxes paid by Registered Processors. document1Document1 Unit Price 5-6,000 65,000 45,000 75,000 14,500 30,000 18 143 29 24 71 63 79 19 48 48 32 0 573 220 Corporate tax - TAS 3,335,165 for year 2010 (30%), PAYE/SDL- TAS 67000 per month, VAT 18% (currently 0 rated), Fire TAS 200,000, Motor vehicle licences- 2 trucks @150,000 Property tax TAS 150,000, Service levy (0.3% of turnover), Crop cess TAS 1500 per bag, Garbage collection fees 60,000, Staff medical checkup @10,000. Labour Costs Labour cost averages based on a ten hours production per day: Part time daily labour rate (not official) 3000-4000 Tsh per day, Full time staff are paid TS 150-180,000 per month. The popular technology in use is Chinese. With expeller MODEL L95A with capacity 3000kg per day and the most popular machine among small processors we crush 3 bags per hour = 20 min. per bag of 65-70kg. With model 6YL 160 that has a capacity of 12-14 tons/24hrs we crush 10 bags per hour or one bag every six minutes. Usually only person at the filter and one person feeding the machine. (Source: SHADECO Iringa.) Indicative Processor Unit Costs Unit item Sunflower seeds Machinery maintenance Transport Electricity Water Food for workers Casual labour Fuel (Diesel & Petrol) Production cess TRA Tax Item cost per Total unit cost % of unit costs unit (Tsh) (Tsh) 2373.1 3131 75.8 15.8 3131 0.5 79.1 3131 2.5 39.5 3131 1.3 2.8 3131 0 14.2 3131 0.4 1.9 3131 0 18.9 3131 0.6 13.2 3131 0.4 7.9 3131 0.2 Total Variable costs Rent Salaries Machinery Depreciation Loan (Interest costs) 2566.4 47.5 13.7 29 474.6 3131 3131 3131 3131 3131 81.7 1.5 1 0.9 15.1 Total fixed costs 2566.4 3131 18.5 document1Document1 The following analyses are drawn from a series of analyses of processors undertaken by FAO in November 2011. The first is in detail, the other three in summary.Two are shown to be profitable whilst two are making a loss. Processor A Marginal Analysis Item Total (Tsh) annum Per Unit sold US$ (Total) (Tsh) A. Income 75 848L Sunflower oil @3000Tz/L 227 544 000 189 800 kg Seedcake@400Tsh/kg 75 920 000 216 000kg @90Tsh/kg processing 19 440 000 fee 322 904 000 Total Income B. Variable Costs Sunflower seeds 260 000@692.30 179 998 000 Machinery maintenance 1 200 000 Transport 6 000 000 Electricity 3 000 000 Water 216 000 Food for workers 1 080 000 Casual labour 150 000 Fuel (Diesel & Petrol) 1 440 000 Production cess (local tax) 1 002 000 Tanzania Revenue Authority (TRA) 600 000 Production Tax 194 686 000 Total Variable costs C. Fixed costs Rent 3 600 000 Salaries 1 040 000 Machinery Depreciation 2 200 000 Loan (Interest costs) 36 000 000 3000/L 400 90 3400 2373.1 15.8 79.1 39.5 2.8 14.2 1.9 18.9 13.2 7.9 2566.4 123,610.16 47.5 13.7 29 474.6 Total fixed costs 42 840 000 564.8 Total Costs (B+C) D. Net income (A – B – C) 237 526 000 3131.2 85 378 000 268.8 document1Document1 205,078.10 150,810.16 54,208.25 Profitability Analysis Net income per annum = 85 378 000 Tsh (including fee for service or 65 938 000Tsh for oilseed production business) Net income per unit sold = 268.8 Tsh Number of units sold/year =75848L sunflower oil and 189 800kg seedcake Return on Investment (%) = (Net income / total Variable and fixed costs) x 100% (65 938 000/237 526 000) x100 = 27.76% Break-Even Analysis Break-even price per unit = (Total costs minus sales of cake) / units sold = 2131 Tsh per Litre od sunflower oil Break-even sales volume = (Total costs minus sales of cake) / unit price (237 526 000/3000) = 53,869 Litres Processor B Item Total Income, (Oil, Cake & Services) Total Variable costs Total fixed Costs Net Income Return on Investment % TZ Shillings 10,870,000 8,960,000 2,250,000 -340,000 -3 US$ 6,901.59 5,688.89 1,428.57 -215.87 Processor C Item Total Income, (Oil, Cake & Services) Total Variable costs Total fixed Costs Net Income Return on Investment % TZ Shillings US$ 84,600,000 53,714.29 68,824,000 43,697.78 9,200,000 5,841.27 6,876,000 4,365.71 8.4 Processor D Item Total Income, (Oil, Cake & Services) Total Variable costs Total fixed Costs Net Income Return on Investment % document1Document1 TZ Shillings 61,920,000 US$ 39,314.29 59,960,000 38,069.84 8,836,670 5,610.58 -6,876,670 -4,366.14 -10 Annex D: Stakeholder Analysis and Technical Discussions The following is a presentation of some of the main stakeholders in the sunflower value chain which includes comments from actors interviewed by the mission. Ministry of Agriculture Food Security and Cooperatives. (MAFC) MAFSC has the responsibility for all crop production but not for the processing which is the responsibility of the Ministry of Industry Trade and Marketing. Further information is available at http://www.agriculture.go.tz/index.html. Its mission is to deliver quality agricultural and cooperative services, provide conducive environment to stakeholders, build capacity of local Government Authorities and facilitate the private sector to contribute effectively to sustainable agricultural production, productivity and cooperative development, The MAFC will this by: Formulating, coordinating, monitoring and evaluating the implementation of relevant policies in the agricultural sector and monitoring crop regulating institution; Collaboration with the private sector, local government and other service providers to provide relevant technical service in research, extension, irrigation, plant protection, crop promotion, land use, mechanization, agricultural inputs, information services and cooperative development; Undertaking crop monitoring and early warning, maintaining strategic food reserves and promoting appropriate post harvest technologies, and Encouraging, undertaking and coordinating research and development and training. However, it was apparent from visiting various institutions of the Ministry that most are without operational budget and are unable to fully deliver their statutory duties. Agricultural Research Institute, (ARI), Ilonga Research Station. ARI Ilonga has the mandate for research for all crops in the Zone and has been engaged with sunflower since 1985. There are only three persons engaged with sunflower and the senior Researcher is about to retire without any succession planning being undertaken. A successor is undertaking PhD studies but wants to leave the oilseeds department on graduation. Thus there is a danger that institutional memory may be lost. This situation is due to the moratorium on civil service recruitment which has resulted in a reduction of research staff in across the station due to retirement resulting in a reduction in capacity and institutional memory. Currently the station is not receiving any external support and relies entirely on the government budget which is inadequate for the station to operate effectively/ The department receives germplasm from external sources for adaptability testing before release by TOSCI. Currently only one sunflower variety, codenamed PI364860 is under test by TOSCI and has shown superior performance to Rekord and Kenya Fedha. Yet there is no programme for developing new varieties to replace these two. In addition to testing the main function of the unit is the production of Basic Seed for multiplication exclusively by ASA, but it is unable to meet the demand. document1Document1 Research/Extension linkages are very weak despite the establishment of the Zonal Information and Extension Liaison Unit, ZIELU, which is not yet functional. ARI, Uyole Research Station. Mbeya. Aida Magelanga, Sunflower Agronomist. The station is no longer testing sunflower due to a shortage of funding. They have the intention to undertake trials of rock phosphate on acid soils to determine its viability. Ministry of Industry Trade and Marketing. http://www.mit.go.tz/ The Ministry is responsible for all aspects of industrial activity including food processing. It has a mission to see that Tanzania becomes a competitive, export-led economy and semiindustrialized country by 2025. This is to be achieved through the creation of an enabling environment for sustainable growth of industry, Trade, Marketing and SME sectors through effective policies and strategies, private sector participation, entrepreneurship development, and facilitating diversification of production, services and markets. It has four sectoral divisions: Industry, Trade, SME and Marketing. The edible oil value chain comes under both Trade (for imports of CPO) and SME for local sunflower processing. The SME division has operates the Rural Micro Small and Medium Enterprises Support Programmes and the National Entrepreneurship Development Fund. However, as for other ministries it is short of operating budget. MIT issues trading licences through District Councils. MIT Has produced a report on Integrated Industrial development Strategy which includes sections on oilseeds.. MIT coordinates with MOA on an irregular ad hoc basis but realises that there may be a case for setting up standing committees for edible oils and other commodity crops. This is needed to reduce conflicts of interest between ministries and to harmonise laws and regulations procedures and policies. The ASDP is operated jointly with MOA but duplication of efforts has arisen.but MIT is unable to implement its action plan due to budget constraints. MIT to establish a cluster of processors based on the Mount Meru Factory in Singida.but has no knowledge of the Edible oils Roadmap produced with TEOSA Tanzania Official Seed Certification Institute, TOSCI Firoze Mwakitwange, Acting Director, Seed certification. TOSCI was established by the Seeds Act of 2003, under MAFSC, Crop Development Division, with Headquarters at Morogoro and branches at Njombe and Arusha. Its mandate is to control seed quality and to ensure that seed production systems meet established standards. In this it is responsible for variety testing, release and registration as well as undertaking inspection of all aspects of seed production in the country. The variety release process is a 23 year process which involves testing for Distinctiveness, Uniformity and Stability, (DUS), whilst the National Performance Trial assesses varieties for added value over existing varieties such as resistance to diseases and parasites. All varieties are approved by the document1Document1 National Seed Committee before release. TOSCI produces the Tanzania Variety Catalogue which provides all information on every officially released variety. The Agricultural Seeds Agency, ASA. Morogoro. Philemon Kawamala, Marketing and District Manager. ASA is an Agency of government for the multiplication of Certified Seed for sale to producers. District Councils may multiply Certified Seed for one generation as Quality Declared Seed, QDS. ASA has exclusive rights to multiply seeds produced by the Agricultural Research Institute. It produces seed on seven farms one of which is located at Dabaga in Iringa Region but there is also a facility adjacent to ARI Ilonga. Additionally it engages selected farmers to produce on contract. The agency’s main responsibilities are: the increase and distribution of seeds; facilitate private sector participation in seed production; create awareness among farmers to the benefits of using improved seeds and; collaboration with research stations. In SH Basic Seed is supplied by ARI, Ilonga and all seed multiplication is subject to inspection by TOSCI. It produces seed on seven farms one of which is located at Dabaga in Iringa Region but there is also a facility adjacent to ARI Ilonga. Additionally it engages selected farmers to produce on contract. ASA reports that the demand for sunflower seed is increasing especially in the central corridor where they are working with RLDC to promote the use of improved seed in 12 districts where 10 villages in each will receive demonstration plots. This is being undertaken in conjunction with local agro-input dealers to strengthen the link between farmer and dealer. Sunflower varieties are mainly OPVs of Black Rekord and Kenya Fedha. However, ASA is inviting other sompanies to participate with other varieties. Sunflower seed rates are 10 Kg/Ha or 3Kg/acre and the genetic potential for improved varieties is 2-3.5 tons per hectare. However, expected yields are 1500Kg/Ha or 600Kg/acre. Yields from unimproved seed are 150 to 300 Kg per acre, 360 to 700Kg per hectare. Problems are arising with soil degradation and high pH4 levels occur some areas which have the effect of reducing the uptake of phosphate . TFDA, Tanzania Food and Drug Authority Raymond D. Wigenge, Director of Food safety. Established in 2003 within the Ministry of Health, TFDA is responsible for the safety of food and drugs through the application of regulations. It works in association with the Bureau of Standards which is responsible for setting food standards. The Food Directorate is responsible for Inspection and environment of food chain facilities and products, Evaluation and Registration and, Food Risk analysis. The application of these responsibilities is devolved to Regional and District Administrations. In relation to edible oils the Authority is responsible for the licensing and inspection of processing facilities for hygiene as well as the registration and testing of products. The mission visited a number of registered sunflower processors and found them to be extremely filthy and with practices that could best be described as primitive. Clearly the Authority is not applying the regulations in respect to these as it is short of operational funds that reduce its capacity to undertake its statutory duties.. document1Document1 Standards require that all edible oils for sale to the public must be refined. This is clearly not being applied as, other than products from the very large processors such as Mount Meru, BIDCO and Muzah Oil, all locally processed sunflower oil is sold unrefined. Unrefined oil has a short shelf life and begins to deteriorate after about a month. Yet at least one processor is labelling his product with a sell by date 12 months from the date of labelling. TBS, Tanzania Bureau of Standards The Bureau was established as part of the efforts by the government to strengthen the supporting institutional infrastructure for the industry and commerce sectors of the economy. Specifically, TBS is mandated to undertake measures for quality control of products of all descriptions and to promote standardization in industry and commerce. Main functions relevant to the Edible Oils Sub Sector (EOSS) a. To undertake measures for quality control of commodities, services and environment of all descriptions and to promote standardization in industry and trade; k. To provide for the inspection, sampling and testing of locally manufactured and imported commodities with a view to determining whether the commodities comply with the provisions of the Standards Act or any other law dealing with standards relevant to those commodities; The Authority is short of operational funds that reduce its capacity to undertake its statutory duties.. Tanzania Warehouse Licensing Board. The board was established in 2007 by Act of Parliament as a corporate entity within the Ministry of Industry and Trade. The main purpose of establishing a system of warehouses and receipts was to enable smallholder farmers to store their crops until such time as they could realise a higher price. There are three categories of licence, A, B and C. A is for capacity of 5000 tons and over, B is for 1000 to 4999 tons and C for less than 1000 tons. Licence charges are TS 200 per ton for categories A and B and TS 50,000 for C, per year. Receipt books are supplied free of charge at a cost to the board of TS 50,000 per book of 50 receipts. Warehouse licenses are issued annually. Currently there are 53 warehouses licensed out of an estimated 400 warehouses that are in various states of repair, ownership and operation. Issued Warehouse Receipts are classed as non-negotiable and may only be transferred once. However, they are accepted by NMB and CRDB bans as collateral. From this there appears to be considerable scope for oilseed processors to make use of the warehouse system for storing stocks of crushing material in order to increase the usage of their capacity, thus reducing their costs. Use of receipts as collateral could also significantly improve liquidity and even out cash flow. Warehouse inspection has been contracted to 2 companies as well as to Region and District councils. The former charge TS 250,000 per day for inspection which is paid for by the board. document1Document1 The board has so far received funding by subvention from its parent ministry but this is being reduced as it is supposed to become self-financing. However it is not being run as a business and is virtually at a standstill due to a lack of funds and staff. Clearly this situation is unsustainable. Tanzania Revenue Authority. www.tra.go.tz Its responsibilities include customs and excise that is responsible for collecting import and export tariffs. It also records the volumes and values of all imports and exports. Tariffs 0% on raw materials 10% on Semi Processed goods 25% on finished products >25% on sensitive goods, Rice, Sugar, Cement and Textiles. EAC Tariff on rice is 75% but is currently waived. Currently there is no import tariff in imported edible oils and there is uncertainty as to what quality and standard of palm oils is being imported. SIDO. Small Industries Development Organisation, www.sido.go.tz SIDO is a parastatal organisation under the Ministry of Trade, Industry and Marketing and has twinning arrangements and exchanges with industries in Europe and Asia, SIDO has Regional Offices in every region of the mainland with professional staff. Most of these Regional offices have industrial estates with workshops available to local SMEs at economic rates. It manufactures a wide range of equipment for agriculture as well as other sectors. Lately it has developed a prototype Double Refining Unit for vegetable oils. SIDO is is responsible for six programmes including the Implementing Partner for the MUVI Programme funded by IFAD, that is operating in 6 Regions including two in the SH Corridor. SIDO has developed a 600 Lit/Hr double refining unit for edible oils that will cost about $30,000. Finance is being negotiated with the Tanzania Investment Bank. Rural Livelihoods Development Company (RLDC) Has established a successful sunflower model in the Central Corridor based on improving relations between processors and groups of contract farmers. This is now well established and RLDC is seeking to assist in the establishment of a refinery to absorb and market crude oil produced by CEZOSPA members. In addition they are also facilitating the supply of QDS seed as well as hybrids and promoting apiculture for pollination of the sunflower and the generation of an additional income. If this model is proved to be sustainable then it could be adapted and rolled out across the SHC. Rural Micro, Small and Medium Enterprise Support Programme (MUVI) MUVI is a 7 year government project, funded by IFAD and implemented by SIDO. The current phase is for three years and is being undertaken at Regional level in Iringa and Ruvuma in the Southern Highlands where it is targeted on sunflower production. The target group are smallholder farmers. document1Document1 The key issue has been identified as that of quality seeds which have not been taken up by farmers resulting in in poor yields. Methodology includes: Assistance to the formation of farmer groups, of which 45 have formed to link them into the value chain. These are registered as Produce Groups which enable them to open bank accounts. In each of the partner districts, Associations of Sunflower Producers has been established as a limited company. Assisting with contract farming by linking groups to Shadeco Processor in Iringa. Linking farmers with financial institutions including NMB which has provided training to groups. Provision of market information to farmers through village information boards, radio and SMS messaging. Establishment of an Actors Forum, chaired by the Regional Commissioner, to discuss policy issues of the value chain. Netherlands Development Organisation, SNV SNV Tanzania focuses on the development of the agricultural sector to foster economic development and poverty reduction. Our focus is on the development of the value chains of red meat, dairy, edible oilseeds (sunflower and sesame), and staple food (rice). These value chains have been selected because of the large outreach in terms number of households engaged in production, and potential for increased income and employment. Our services include: promoting Inclusive Business arrangements between small holders and larger enterprises, providing impact investment advisory services, knowledge development and networking, and facilitating alliances for industry voice and evidence based advocacy. SNV is focussing on the Sunflower Value Chain in the Central and Southern Corridors and is working in close association with the Rural Livelihood Development Company, (RLDC) which is undertaking complementary support to the value chain. They are supporting CEZOPA (Central Zone Oilseed Processors Association) which has 40 members Specifically it is assisting processors with forward and backward linkages and other Edible Oilseeds Actors for the past two years. It identifies 3 key issues as: unsatisfactory farm production, access to development services for processors, e.g. business development training and |access to finance. Songela Investment Co. Ltd. SNV has engaged a Singida processor, Rosmarina Jima, as a facilitator for Contract Farming through Farmer Groups. This has engaged seven other producers who have established contract farming arrangements with 97 producer groups totalling 4000 primary producers. Farmers have been introduced to hybrid seeds and it is reported that some are now producing hybrids from parent material. Advice is also being provided to processors to form associations for marketing and accessing services. The intention is to replicate the system in other areas including the Southern Highlands. TEOSA, Tanzania Edible Oils Sector Association. document1Document1 The Tanzanian Edible Oil Sector Association, TEOSA, now in its third year, was formed to provide advocacy to government on behalf of the sub-sector stakeholders and to engage with policy and strategy issues with respect to improving the business environment for oil processors. In this it collaborated with the Ministry of Industry and Trade to formulate the roadmap for sunflower. TEOSA is registered as a Limited Company and has 20 members from farmers, processors and Community Based Organisations, CBOs. Membership fee is TS100,000 per year. Branches are being formed in all Regions of the Southern Highlands. Tanseed International, Morogoro. Tanseed International is a private company supplying maize, sunflower and other seeds. They have been producing Certified Black Rekord sunflower for 8 years and currently have 4 tons ready for the next season. This is produced by contract farmers with inspection from TOSCI and is cleaned, graded and dressed ready for sale. Most demand is in Central Zone where it is partnering with SNV/RLDC in the value chain. Retail price is TS2500 per Kg. The current price of crushing seeds is from 400 to 800 per Kg and for cake is TS300 per Kg whole or TS5-600 per Kg ground. VEKI General Supplies, Morogoro, Sunflower Processor Kinyunyu Henry, Proprietor. A registered processor with three machines, 2 based in Morogorro and 1 elsewhere, with a total capacity of 105 bags per day or 6.8 tons. They work 8 months at full capacity and 4 months at a lower rate. They also provide a crushing service to individuals keeping cake in payment. The company has three retail outlets in Morogoro where they sell their branded and labelled filtered oil. Not much crushing seed is available in Morogoro except for Kilosa District so most is purchased from Dodoma, Singida and Manyara. They provide Rekord seed to farmers through village leaders and recover the cost from the purchase price. Seed is purchased through their own agents at village level. Now paying 600 per Kg for seed and selling oil at TS 15.000 for 5 litres. Cake is selling at TS 150/Kg. An annual loan is obtained from NMB for purchasing seed but without a 1 month grace period required between purchase and first sales which has an effect on cash flow. The proprietor has benefitted from FAO training which led him to brand and label the oil which has resulted in significantly increased sales. He is also keeping records as advised which enable him to control costs such as transport. For example transport costs TS 70/Kg from Morogoro to Dar. He would like follow up training from FAO. Alpha Agrochemical Agro Input Dealer, Iringa A registered business, one of 25agro input suppliers in Iringa. Stocks sunflower seed sourced from Kibo Seed Company in Arusha , a branch of the Kenya Seed Company, and Rekord from the Highland seed company. Also stocks a range of fertilisers and a wide variety of imported vegetable seeds Alpha has been in operating for 19 years and has received training from various agencies including some of his agrochemical suppliers. This enables him to advise clients on their use and application. He operates on a bank loan at 24% annual interest to finance some of his stock Some trusted clients are provided goods on credit but he also has agents at village level who sell on commission. document1Document1 Pays statutory taxes and licence fees. TPRI are supposed to inspect his business four times a year but they have only ever visited once. SHADECO Ltd, Oil Processor, Iringa Enock Ndondole, Managing Director A medium sized processor based in Iringa with a capcity of 26 tons per day but is only operating at a fraction of that. He is paying between TS35 and 40,000 per bag during the current harvest season which he thinks indicates that demand exceeds supply.He is also providing a service to external customers for which he retains the cake in payment of which he has 400 tons in stock but complains that the market price is low. There is a problem of the large number of small unregistered processors who are able to undercut the registered operators as they pay no taxes, 5% cess or licence fee. Thus they are able to offer more for crushing material. He suggests that all processors should be registered but that senior government officials are completely out of touch with reality. He explains that one the one hand the Government is establishing Produce Boards for all crops but on the other they have passed a law on Public Private Partnership which he feels is contradictory as one is in competition with the other. He has received training from FAO and is requesting the promised follow-up. Processor Mbeya. Anita Mwakyoma, Proprietor. She is a registered processor having 3 expellers with a single shift capacity of 260 bags or 17 tons but is only processing about 55 bags per day, 3575 Kg. Thus, the mill is running at only 20% of capacity. She is also crushing seed for others and keeping the cake in payment. Oil is filtered and stored in 200 litre drums for sale to buyers who purchase in lots of 20 litres with their own containers. Crushing seed is obtained from a wide range of sources including from church groups who sell seed for church income. However, when big buyers arrive, such as Mohamed Enterprises, they drive the price up beyond the affordability of local producers as these buyers are filling empty trucks for return journeys to Dar. Purchasing is done per debe of 20 litres regardless of weight, but averages 9.5 Kg. Thus 7 debes fill one bag to 66Kg on average. Crop cess of the equivalent of TS 2500 per bag is paid directly to the Village Council. Prices for seeds are TS 5,500 per debe (580/Kg) in Sumbawanga and 6,000 (630/Kg) in Iringa. This equates to TS 37,700 to TS 41,000 per bag, at which price she says she can make a profit. However, although there is no shortage of seed she does not have the cash to be able to buy in stocks to keep the machines running. She is selling oil for TS 1700 per litre and cake at TS 800 per 100Kg (80/Kg) but at TS 100.Kg for small quantities. With assistance from her engineer husband she has installed a double refining unit which will begin operations later in the year. Her intention is to purchase crude oil from micro producers for refining and wholesaling to the registered market which is prevented from selling single document1Document1 processed oil. This will be to her advantage when a regulation comes into force whereby only double refined oil may be sold for human consumption. Murzah Oil Mills Limited Murzah Oil Mills Limited is a very large operation producing a wide range of vegetable oils and oil based products for the Tanzania and local export markets. It is a fully vertically integrated operation. 90% of its production is based on imported Crude Palm Oil from Malasia, the balance being made up from soft oils of Palm Kernel (for soap), sunflower and soya. It sources as much local sunflower crushing material as possible but also imports crude sunflower and soya oils from Ukraine. CPO is fractionated into Olein (70%), for edible oils and fats and, Stearate (30%) which is used in soap production, with a plant capacity of 300 TPD. It has a refining capacity of 300 TPH plus 150 TPH at the ex-Mukwano factory which it recently took over. Currently it is investing US$6 million in an additional refinery of 400 TPH. For sunflower it has an expeller crushing capacity of 50 TPD of decorticated seed. Decorticated cake is mostly exported to India whilst there is a disposal problem with the shells. This has been working at about 150 days per year but, owing to increased supply of crushing material, is anticipated to run up to 300 days in 2012/13. Sunflower is yielding 25% oil with 50% cake and 25% husk. Refined sunflower oils is sold wholesale at TS 58,000 for a 20 litre tub, or 2,900 per litre to dealers and distributors. Sunflower refining capacity is 100 TPD and they bare producing 4-500 tons per month which is branded as SUNOLA and packed into 1,3,5, and 20 litre containers. It is sourcing most sunflower from Dodoma, Singida and Manyara through traders and agents using trucks that would otherwise return to Dar empty, thus saving on transport costs. Interest was expressed in working with farmer groups and contract farming. However, they are not willing to purchase crude sunflower oil from small processors due to quality concerns. All their products are registered with TFDA and comply to statutory standards and traceability requirements. They do have a problem of storage for sunflower and will have to hire warehousing at $5 per square metre rent. However, they are concerned about the proliferation of unregulated and untested crude sunflower oil being retailed as especially in large supermarkets. This is being touted as organic and healthy cholestorol free product but is of dubious provenance as, according to the Tanzania Agricultural Trade Information Centre, there are no registered producers of organic sunflower oil in Tanzania. In addition they are labelled with a expiry date 12 months from packaging. Yet crude oil begins to deteriorate after one month. A number of these brands were on display at Uchumi Supermarket at the Quality Centre in Dar at prices from 5,500 for one litre and up to 4,800 per litre for 5 litres. National Microfinance Bank, Iringa Branch Tito Mwanjala- Loan Officer- National Microfinance Bank, Iringa. (NMB is part owned by Rabobank of the Netherlands). The branch is not yet lending to agriculture but is preparing to do so in collaboration with MUVI through registered farmer groups. document1Document1 The bank will offer the following types of loans: Outgrowers loans for estate crops of tea, sugar etc. Agro-Dealer loans Cashew nut farmer loans, and Equipment investment laons These are divided into: Micro and small enterprise loans with a minimum of TS100,000 and a maximum of TS 7.5 million at 24% interest. SME loans from TS 7.5 million to 1 Billion at 19% interest for a minimum of 12 months. These are only for registered businesses with at least 12 months experience with collateral double the amount of the loan which may include both fixed and loose assets. Rural Farmer, Iringa A female small farmer from Mashanza Village, Kilolo District. She farms 3 acres and has been growing sunflower for as long as she can remember but only from self-saved seed which, by observation, is very mixed and genetically degenerate. She intercrops with maize planting every 6th row with sunflower. Lately she harvested 3 bags of seed, (200Kg approx.), which equates to a yield of 400Kg per acre which is hard to believe. She gets enough seed processed for her family needs and sells the surplus at TS 5000 for 20 litres or about 500 per Kg. The processor keeps the cake in payment for processing. Twenty litres of seed produces 3 litres of unfiltered oil. She only applies fertiliser to maize because that is her staple crop, but her priority would be to afford to purchase more fertiliser. She has no idea about improved sunflower seed and has never received a visit from extension staff. Highland Seed Producers, Mbeya. Victor Mgoo, Managing Director Bernard Baso, Financial Manager. Kulia Magaf, Accountant. Established in 2000 it started producing certified maize seed in 2002 and now produces 1000 tons per year from basic seed obtained from ASA. They are also producing a range of maize hybrids. It began producing sunflower seed in 2006 and is currently producing from 50 to 100 tons only of Rekord, for sale mainly in Rukwa and Mbeya through the agro dealer network. Basic seed of Rekord is obtained from ASA and is multiplied by contract farmers. SAGCOT, Southern Agricultural Growth Corridor of Tanzania. Dar es Salaam. The Southern Agricultural Growth Corridor of Tanzania (SAGCOT), registered as a Limited Company, is an inclusive, multi-stakeholder partnership to rapidly develop the region’s agricultural potential. SAGCOT was initiated at the World Economic Forum (WEF) Africa document1Document1 summit 2010 with the support of founding partners including farmers, agri-business, the Government of Tanzania and companies from across the private sector. It has 60 registered partners of which 20 are founders one of which is FAO. SAGCOT’s objective is to foster inclusive, commercially successful agribusinesses that will benefit the region’s small-scale farmers, and in so doing, improve food security, reduce rural poverty and ensure environmental sustainability. The risk-sharing model of a public-private partnership (PPP) approach has been demonstrated to be successful in achieving these goals and SAGCOT marks the first PPP of such a scale in Tanzania’s agricultural history. SAGCOT will identify existing and potential project opportunities in the corridor in the infrastructure and agriculture sectors. Six cluster developments have been identified along the southern corridor of Tanzania at Sumbawanga, Ihemi, Kilombero, Mbarali, Ludewa and Rufiji. The company is just emerging from its formative stages and is essentially a facilitation service for companies looking to invest in Tanzania and for those already established to expand their businesses. It is about to launch a Catalytic Fund ……………… SAGCOT may be conceptually sound and confidence in it was expressed by one businessman interviewed. However, it needs to develop a work programme and budget with clearly defined and monitorable objectives for it to be credible. At the moment its immediate future is uncertain with staff unpaid and pledges of money unfulfilled. DFID DIFID has a pipeline to fund projects in the Southern Highlands. This is no yet defined but has a priority to raise incomes.. YARA Tanzania Ltd. Fertiliser dealers. The company imports a range of fertilisers both compound and straight and is able to produce blends according to crop requirements. They also manufacture Urea and DAP but these cause acidification and are no longer recommended as NPK types are showing better results. The company has invested US$20 million in a fertiliser terminal at the port together with a bulk storage facility. They consider this to be their contribution to SAGCOT. Fertilised is bagged at the port and sent to agro dealers around the country. Favoured dealers get 30 days credit. In the field they employ 5 sales agronomists and considers the knowledge of government extension workers to be antiquated. The government policy of ensuring cheap food together with an import ban on maize and taxes is a disincentive to increased production and thus a self-defeating policy. There is an intention to begin demonstrations on sunflower in the coming season. Tanzania Farmers Association TFA is organised into four divisions, Trading, Property, Finance and Corporate Affairs, with each headed by a Division Manager. document1Document1 The Trading and Property Divisions are the commercial operating units. The Finance and Corporate Affairs divisions and the Audit and Sales & Marketing departments provide service to the operating divisions. Each division is responsible for developing coordinated annual business plans to support the Corporate Strategic Plans and achieve objectives that ensure the growth and development targets are met and ultimately Members'/shareholders' needs are achieved. World Bank The Bank is supporting 3 programmes with GOT. The Input Voucher Scheme and the Input Subsidy Programme over 3 Years with the objective to build up farmers capital so that they would continue to invest. It is also assisting the Agricultural Sector Development Programme, ASDP, across all sectors with an emphasis on decentralisation to Districts (which is unsustainable), providing District Agricultural Plans and support to irrigation. The justification being to offset the cost of importing maize. However, none of these projects have performed satisfactorily and need to be re-defined including a reduction to the subsidy from 50 to 35%. A number of sectoral problems are identified: Assistance is needed in the provision of accurate agristats to include an annual survey. To support this a team is arriving to re-write the statistics strategy funded by USAID and FAO. High transport costs are an impediment to getting inputs in and outputs out. Contract farming works well in single channel supply chains but falls down when there are many buyers competing for a crop, as in sunflower. Expansion of production needs to be matched by increased productivity. The Government is still of a socialist mindset and has no meaningful policy for agriculture and no vision of the future for Agricultural Research. Conflict over water resources is envisaged as a forthcoming problem. The economy is growing at 7.5% and population at 2.9% thus standard of living is increasing. Growth in agriculture must come from investment in supply chains. The SAGCOT catalytic fund is only a concept so far with an established board. It is to be funded by DFID and USAID with the balance from Government which has no capacity to contribute. The function of SAGCOT is as a PR facility to build commercial relations through the TIC and is a controversial component of the WB portfolio. CEZOPA (Central Zone Oilseed Processors Association). With support from RLDC, CEZOPA has accessed a TS:7 Billion loan, at 12% interest, from CRDB to purchase crushing seed to be stored in a central warehouse. The loans are disbursed to individual farmers by CEZOPA. However, the facility has had to be re-scheduled due to unforeseen marketing conditions. Filtered oil is the minimum standard that may be sold but in two years all oil must be refined and labelled. Thus processors are also being linked to the Tanzania Food and Drugs Authority (TFDA) to produce oils to the required standards and obtain certification. However, in the SH there is yet no organisation of processors and no equivalent of CEZOPA document1Document1 Annex E:. Suggested Commitments for a Public Private Partnership for the edible oils sub-sector. Public Sector Commitments The public sector will provide a business friendly environment through the following: Private Sector Commitments Invest in the development of a profitable and competitive value chain ensuring a fair return on investment for all actors. Apply an import tariff to edible oils. Enable government agencies to undertake their statutory duties to defined levels that will ensure conformity to standards, protect consumers, and technological improvements. In particular, TBS, TFDA, TOSCI, ARI. Establish an agency to coordinate the value chain, potentially with TEOSA. This may require donor support on a declining basis until it becomes self-financing after about 5 years. Make provision for private sector Pay For Service providers of services. Banks to cooperate with the sub-sector to facilitate lending with less stringent collateral requirements. Developing a policy for the edible oils subsector. Facilitate horizontal linkages between farmers and also between processors. Convene an inter-ministry Working Group between Agriculture and Industry, under the Prime Minister’s Office, to coordinate programmes for the sub-sector. Facilitate vertical integration between farmers and processors, and between processors and consumers. Establish a system of land tenure and land use rights for farmers and herders. Comply with statutory regulations and standards. Develop an authorised warehouse receipting Simplify convoluted and lengthy bureaucratic system. procedures that are a disincentive to business. Farmers to practice conservation agriculture. Simplify the taxation system. Provide tax breaks for investments in agricultural and processing machinery. document1Document1 Annex F: References Competitive Analysis of Sunflower in Sumbawanga District. Development Alternatives Inc. Private Enterprise Support Activities Project: Tanzania Final Report, April 2004. SIDO. Subsector / Value Chain Analysis Draft Report For Sunflower . Economic Research Bureau University of Dar es Salaam. September 2009. SIDO. Iringa Sunflower Value Chain Analysis for Local (National) Market and Value Chain Development Investment Plan. Business Care Services Limited And Centre For Sustainable Development Initiatives. World Bank. Agribusiness Experience in Tanzania. Sokoine University of Agriculture SIDO. Subsector / Value Chain Analysis Draft Report For Sunflower , Manyara Region. Economic Research Bureau University of Dar es Salaam. September 2009. SIDO. Consultancy Services to Study, Diagnose and Recommend Value Chains and Concomitant Support Activities. Price Waterhouse Coopers. September 2009. Subsector / Value Chain Analysis Report For Sunflower Edible Oil Or Local Market Tanga Region. SIDO-IFAD MUVI PROGRAMME. Rural Business Support Services (RBSS) Sub Component.. Match Maker Associates Limited, July 2009 RLDC: Sunflower Sector Market Development Strategy. November 2008 MAFSC: NATIONAL SAMPLE CENSUS OF AGRICULTURE 2007/2008 SMALL HOLDER AGRICULTURE Volume II: CROP SECTOR – NATIONAL REPORT, April 2012. TEOSA: A proposal submitted to the Ministry of Industry and Trade (MIT) for improving Sunflower Oil processors business competitiveness (tax relief Support). Prepared by: CEZOSOPA, TASUPA and TEOSA With a technical support from RLDC. Dodoma. MARCH, 2012 Project Documents GCP/URT/132/GER, and GCP/URT/133/GER REFINED SUNFLOWER OIL GENERAL SPECIFICATIONS. SNV: edible oil seeds multi-stakeholder workshop, 24 FEBRUARY 2012 Michigan State University: Subsector Analysis: Its Nature, Conduct and Potential Contribution To Small Enterprise Development. 1986. Iringa Municipal Council: Sunflower Agronomy. 2012. SNV: Quick Scan Study on Sunflower oilseeds in Iringa. 2010 document1Document1 SAGCOT: Value Chain and Market Analysis – Sunflower FAO: Agribusiness Handbook – Sunflower Crude and Refined Oils. 2010 Shetto & Owenya: Conservation Agriculture as practised in Tanzania. 3 Case Studies. MAFSC/ Mligano Research Station: Rainfed Agricultural Crop Suitability for Tanzania. World Bank: & IFC Doing Business. Economic Profile Tanzania, 2012. FAO: Fats and Fatty Acids in Human Nutrition. 2010. FAO: Guidelines for Rapid Appraisal of Agrifood Chain Performance in Developing Countries. 2007. FAO: An analysis of the Myanmar edible oil crops sub-sector. Action for Enterprise: Sub sector approach to enterprise development.1999 FAO/SHFS: Food Chain Innovation and Business Development Report. 2011. NEPAD: Improving Market Access and Value Chain Addition for Sustainable Agricultural Development in Tanzania. ODRC/FAO: Oilseeds Post Harvest Value Chains in Tanzania. World Bank: Tanzania Country Brief. 2012. Round Table Africa: Sunflower Value Chain in Tanzania. USAID: An Industry VALUE Chain Approach to Economic Growth and Poverty Reduction. 2006. GEMINI: A Field Manual for Sub Sector Practitioners. FAO, SHAIF, SMAE Business Appraisal Workbooks, November 2011. Ministry of Industry and Trade: Integrated Industrial Development Strategy 2005 FAO: The growing role of contract farming in agri-food systems development: drivers theory and practice.2005. document1Document1 Annex G: Maps Map of Tanzania. document1Document1 Map of the Southern Highlands. document1Document1
