Why is the demand for sunflower oil increasing in Tanzania?
Widespread adoption of improved seed is one important driver of increased production of sunflower oil in Tanzania, already one of the largest producers of the crop in Africa. And with sunflower processors investing in more than 50,000 metric tons of processing capacity, demand for sunflower from farmers is increasing. Setting up for change at scale
Why is sunflower oil important in Tanzania?
One reason for encouraging the greater production and processing of sunflower oil in Tanzania is thus its potential for import substitution, which could generate income and jobs at home and have a beneficial impact on foreign- exchange outflows. Also it is healthier than other types of oil, for example palm oil and groundnut oil.
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).
Why is Tanzania transforming the sunflower industry?
These tax and tariff changes have put Tanzania on the path to transforming the entire sector by prompting investors to pursue hybrid seed production, processing and other investments in the sunflower space. Dalberg was able to draw on its coalition of funders to obtain the private investment needed for essential technologies.
