Why focusing on Sunflower Oil?
1. As an effective mean to the rural industrialization
- An excellent model of Agriculture Development led Industrialization
- An easy entry for entrepreneurs with low technology and little capital
2. Large market potential
- In TZ, edible oil is the 2nd largest importing item after petroleum.
- Over US$ 100 million in domestic market with large export potential
3. Growing supply of sunflower seeds as the raw material
- increasing to 787,000 ton in 2011 from 98,000 ton in 2005.
- 19 districts of 11 regions selected sunflower oil as target of ODOP
4. Direct effects to poverty reduction
- Major cash crop of 500,000 small farmers in semi-dry area.
- Essential goods for human.
- Suitable item of local production for local consumption
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Agriculture Development Led Industrialization
Growing Production of
Sunflower Seeds
1000 ton
Source : 2003-07 MAFS
2008-11 The Economic Survey
Contract
Farming
Entry
of
Entrepr
eneurs
2003
2004
2005
2006
2007
2008
2009
2010
2011
800
700
600
500
400
300
200
100
0
Positive Linkage from Seed
Production to Industrialization
Increase of
Seed
Production
19 districts of 11 Regions adopt sunflower as ODOP
Arusha, Dodoma, Iringa, Kagera, Kilimanjaro, Manyara,
Rukuwa, Shinyanga, Singida and Tabora
2
Overview
Scene
Recovering edible oil market from imported palm oil.
Structure
One large oil mill and 1000 newly born small-scale processors.
Crude Oil
Good for human consumption if consumed immediately after extraction.
Required to be refined to avoid oxidization for long life.
TBS Standard
TBS maintains two standards as temporal measures (TZS 50:2010)
-
- Crude sunflower oil for immediate consumption
- Refined sunflower oil for long-life consumption
Current Stage
Crude oil has fulfilled village demand and now needs distant markets with refined
quality.
3
Positive & Negative Chain of Agriculture and Industry
Improvement of yields
through promotion of
quality seeds and
fertilizer
Short Supply
Increase of
Entry of
Shut Down
Supply
entrepreneurs in
Over Supply
3 bags
oil processing Biz.
12-15 bags/acre
Stop Prod’n
Price Crash
Needs of
Collaborations
Demand
Supply of Agriinput and tractor
tilling through
contract farming
Formation of cluster
& Association
Construction of oil refinery
4
Challenges
1. Operating at improper business premises
- Majority of processors don’t have proper premises.
- Environmental issues + little space for expansion.
2. Poor quality of products
- Very few enterprises fulfill TBS standard.
3. No refining capacity
- Crude oil is good for human consumption if consumed
immediately after the extraction.
- Need to be refined if marketed to distant markets
4. Little credibility and finance access
- Little working capital to maintain seed market when bump harvest.
- Little capital for expansion and up-grading the facilities.
5. Dependency on Chinese/Indian made machineries.
- Frequent machine trouble without maintenance support
5
Challenges of Local Machinery Industry
Chinese made processor has
low quality iron gear for power
transmission.
Locally made processor adopts
easy maintenance application
but expensive due to non-mass
production.
Mini Oil Refinery with capacity
of 500 litter per hour developed
by SIDO Iringa. Budget price at
TZS 55 million.
Needs cluster formation to upgrade the oil for distant markets.
6
Proposed Intervention
• Providing industrial spaces at regions.
=> Micro Manufacturing Enterprises(MME) Parks at every region
=> Cluster development with oil refining unit at the core.
• Fostering local agro-machinery industry
=> Commercialization of SIDO mini refinery
=> Mass production of local made processors
• Improvement of management and quality
=>TBS quality up-grading campaign
 KAIZEN for quality and management improvement
 UNIDO up-grading operation for 5 model firms.
• Financial Support Programs
=> Warehouse Receipt System launched
=> SIDO Credit Guarantee system planned
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Joint campaign of SIDO, TBS and TFDA
Increase qualified suppliers by notify SMEs the eligibility requirement of
TBS/TFDA standard and promote remote registration through SIDO.
To provide
- A check-list of facility requirements to pass TFDA inspection
- A check-list of quality requirements to pass TBS standard
- A leaflet of remote application for TBS certificate through SIDO offices.
To hold workshop at
- Northern circuit (Dodoma, Singida, Babati, Moshi)
in Nov. 2012
- Southern circuit (Morogoro, Iringa, Makambako and Mbeya)
in Dec. 2012
To target
- 100 TBS Certificates by June 2013
- 300 TBS Certificates by June 2014
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