Low smallholder participation in oil Source: Icons from Noun Project 4 In order to expand the edible oils industry, Tanzania should focus first on the sunflower value chain, as it is best positioned to serve strong demand given current production dynamics Source: IHS Markit; FAOSTAT; Dalberg analysis from calculations
Why are edible oilseed crops used in Tanzania?
The choice of edible oilseed crops is supported by the fact that Tanzania’s large national demand for edible oil requires imports to meet about 60% of demand [ 1, 11 ]. The demand for imported edible oils is increasing, resulting in about US $ 294 billion of foreign currency reserves being spent annually [ 1, 11, 12 ].
How much edible oil does Tanzania import a year?
Critical IOA Unit Tanzania imports 320,000 tons of edible oil per year. Tanzania’s annual demand for edible oil stands at 500,000 tons, whereas the country can supply only 180,000 tons, forcing it to import 320,000 tons each year, signaling major opportunities for import substitution (7).
What is the demand gap for edible oil in TZ?
Despite strong growth in sunflower seed production, the level of edible oil processing in TZ is low compared to prevailing demand (est. at 300,000 – 400,000 tons a year). Much of the demand gap is currently met by imported edible oil (60% across all edible oils, 55-70% for sunflower oil) (Salisali, 2017).