SUNFLOWER SUBSECTOR COLLABORATION BETWEEN SUNFLOWER OIL PROCESSORS AND RLDC FOR IMPROVED SUNFLOWER SECTOR IN TANZANIA

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1 SUNFLOWER SUBSECTOR COLLABORATION BETWEEN SUNFLOWER OIL PROCESSORS AND RLDC FOR IMPROVED SUNFLOWER SECTOR IN TANZANIA Bw. RINGO IRINGO TEOSA, TASUPA AND CEZOSOPA NMDF 2013

2 Introduction Sunflower sector is one of the important cash crops in central corridor regions and the national economy as a whole. The sector contributes about 32% of national cooking oil in the country and 60% is being imported from outside while 8% is filled by other oil seeds Since its inception in 2006, RLDC has collaborated with a number of stakeholders, mostly private sector, in sunflower value chain to improve the sector for meaningful impact to poor farmers and country economy

3 Introduction cont This include oil seeds producers (farmers) in rural areas, oil seeds processors in the urban and peri- urban centers of the central corridor and the government, particularly LGAs In responding to the increasing demand for edible oil in the country, which is currently around 350,000MT, RLDC has succeeded to join the efforts of rural sunflower producers and sunflower oil processors as well as the sector apex associations such as CEZOSOPA, TASUPA and TEOSA

4 What has been done so far? RLDC has linked sunflower farmers direct to their market by linking them with sunflower oil processors who are partnering in implementing contract farming (this year 7 oil processors are implementing it reaching around 28,000 farmers in Singida, Dodoma and Manyara, while other 2 processors engages with conservation agriculture and block farming, and agricultural mobile based agriculture information system (Kongwa and Shinyanga respectively). In 2010 there were 9 processors and in 2011 there were 13 processors engaged into contract farming (CF).

5 What has been done so far RLDC has collaborated with a number of processors, LGAs and farmers in production of sunflower Quality Declared Seeds (QDS) (in swahili mbegu za kuazimia ubora) in 5 districts of Kondoa, Singida Rural, Iramba, Mpwapwa, Kongwa. For the past 4 years through this arrangement QDS farmers have managed to produce about 100MT of QDS in Singida and Dodoma regions In 2010, RLDC knowing the challenge faced by the processors to access working capital, it facilitated and linked them with CRDB bank whereby 43 processors obtained loans totaling TZS. 7.4 Billion to buy sunflower seeds from famers

6 What has been done so far In 2011 RLDC in collaboration with CRDB bank facilitated a study tour to 8 processors to India and China to get exposure of competitive technology to respond to the challenge of poor processing technology. RLDC has been the first pioneers to encourage processors to establish apex associations, and through this it helped sunflower processors to establish CEZOSOPA in the central zone (in 2007) and TASUPA which is a national association in 2011

7 What has been done so far 2012 RLDC facilitated CEZOSOPA, TASUPA and TEOSA to lobby to government on removal of importation taxes to the machines and spare parts, as well as reintroduction of taxes to imported palm oil. Finance Minister announced later in his budgetary speech that Govt will remove the taxes and is planning to impose taxes on the imported crude and refined oils RLDC is currently helping to strengthen TASUPA capacity for lobbying and advocacy (reviewing constitution, formulating 5 years strategic plan and internal control systems)

8 What has been done so far RLDC is currently facilitating a joint intervention between sunflower oil processors implementing CF, LGAs, Agricultural Seed Agency (ASA) and Mount Meru Seeds/Mount Meru Millers of Arusha to raise awareness on the usage of improved seeds and proper agronomic skills on the production of sunflower to farmers through demo plots/farmer field schools (FFS) in Singida, Dodoma and Manyara and Morogoro regions

9 Achievements so far Small holder farmers being beneficiaries of good agronomics skills imparted to them through CF, their income too has gone up. Improved sunflower seeds ( QDS and Certified) is now available easily to the farmers and the quality of sunflower seeds reaching processors is good RLDC interventions have stimulated sunflower oil seeds cultivation in other areas outside central corridor and now the production in the country has been on increase annually, from 25,056 MT in 2000 to 418,317MT in ,831 MT in 2009, 348,877MT in 2010 and 786,902MT in 2011

10 Achievements so far Through CF processor are getting good quality and adequate seeds at a much less cost than before. Some processors have now acquired new and competitive technologies for processing oils Through various sensitization workshops like action learning program, some processors have obtained TBS, TFDA certification as well as Bar Codes. Local production of sunflower oil has also increased More partners are working in the subsector now and still some who interesting to venture into sector.

11 Way forward Oil quality is still low. There are some initiatives among processors and development partners to install the edible oil refinery, to tackle the challenge of oil quality The sector still uncompetitive and still faced with a lot of challenges, including poor processing technology, lack of working and investment capital, poor oil quality, inadequate supply of raw materials, low productivity, inadequate supply of inputs etc, which calls for collaboration and joint efforts from various stakeholders like private sector, central and local government, NGOs, development partners and regulation and supporting services partners

12 NDAGA FIJO NA LOLI