Master thesis by Sebastian Mahenge
The demand for edible oil is currently increasing in Tanzania. There is a great opportunity in investing in sunflower production due to its potentiality on improving the income of smallholder farmers and processors, and substituting imported edible oil. However, little is known in terms of local potentials for profitable commercial participation of smallholders in the sunflower value chain. This study was conducted to assess the rural agribusiness commercialization potential for value added products in sunflower value chain in Idifu village, Dodoma region in central Tanzania. It specifically sought to determine sunflower product lines in the local markets and the potential of linking these production lines with end markets of oilseeds and value added products. The study further aimed at analysing the profitability of sunflower product mix at both, local and urban-based end markets. Finally, the study looked at market requirements and conditions of sunflower product lines in the urban based end markets. The interviews were conducted between August and November 2016. A total of 70 farmers were randomly selected and number of 9 processors and 12 traders of sunflower products were randomly and purposively selected. A structured questionnaire was used in data collection. The findings show that it is apparently profitable for farmers to market sunflower seeds through the incoming middlemen than through local traders and urban markets. However, higher profits were realized by farmers involved in value addition to and commercialization of sunflower oil and cake through the local and rural centre based markets. Furthermore, processors demand for important requirements to be met before sunflower products can be accepted in the market; and these requirements included cleanness and dryness of sunflower seeds, maturity, and the use of improved seeds that yield more oil during processing. Traders at retail level required clean oil, double refined, packaged oil and certification by food iii quality and standards regulatory authorities. Based on these findings the paper recommended that rural road networks should be improved to facilitate transportation, promotion and collective action need to be taken among sunflower farmers in order to improve economies of scale and bargaining power, have increased access to affordable improved inputs especially sunflower seeds and agricultural education and training.
