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
Does Tanzania import cooking oil?
Given a shortfall of 360K metric tons, Tanzania imports over 60% of the country’s cooking oil. This costs USD 250M in palm oil imports every year, making it the sector with the second highest foreign exchange transactions by value. However, the country has a large and growing refined sunflower oil industry that can substitute these imports.
Does Tanzania have a shortage of edible oil?
While the local and regional market for edible oils is large and growing, local supply in Tanzania is not keeping up. Given a shortfall of 360K metric tons, Tanzania imports over 60% of the country’s cooking oil. This costs USD 250M in palm oil imports every year, making it the sector with the second highest foreign exchange transactions by value.
Which oil is most popular in Tanzania?
sunflower have the strongest global demand of oils with significant production in Tanzania While palm has the highest demand globally, current production dynamics in Tanzania strongly favor sunflower only Land access and significant patient capital required to ramp up production Dependent on seed cotton production trends.