Commercialization of the Tanzania's Food systems to catalyze growth and resilience

Mpango Maalum

Oilseeds / Nuts

Mnyororo wa thamani na maelezo ya kina kuhusu mazao ya oilseeds / nuts — Tier 2

Maelezo ya Jumla

Kuhusu Oilseeds / Nuts

Mafuta na karanga ni mazao muhimu ya biashara yenye thamani kubwa. Tanzania inazalisha aina mbalimbali za mbegu za mafuta na karanga kwa ajili ya matumizi ya ndani na nje.

Mnyororo wa Thamani

Mnyororo wa thamani unahusisha wakulima, wachakataji mafuta, wafanyabiashara na wasafirishaji nje. Sekta hii ina uwezekano mkubwa wa kuongeza thamani kwa njia ya usindikaji.

Oilseeds / Nuts

Kipaumbele Tier 2

Idadi ya Mazao 2

Jumla ya Mikoa 7+

Mazao

Maelezo ya Kina ya Mazao — Tier 2

Bonyeza zao kuona taarifa za washiriki katika msururu wa thamani

1. Input & Service Supply

Sunflower farmers access inputs through multiple channels:

Seed supply: TARI develops improved high-oil varieties. ASA multiplies seeds through commercial farms. TOSCI certifies seeds before release. Local suppliers (e.g., Galio) and recycled seeds from other farmers also dominate.
Fertilizer & agrochemicals: Limited use of fertilizer in sunflower; most farmers rely on soil fertility without purchased inputs.
Equipment: SIDO, TEMDO, and TIRDO manufacture local processing equipment. Larger processors (Mount Meru, Pyxus) have industrial-scale machinery.
Financial services: TADB credit guarantee scheme, CRDB/NMB/TPB bank loans to farmer organizations, VSLAs providing internal financing.

2. Production (Cultivation)

Sunflower is grown by smallholders across central Tanzania:

Growing regions: Dodoma, Singida, Manyara, Mbeya, Morogoro, Simiyu. Singida alone has ~32,265 farmers organized in 915 groups.
Farm size: Average 4 acres per farmer.
Yield: ~0.6 tonnes per acre under rainfed conditions.
Planting: Seeds sown at onset of rains; varieties include open-pollinated and hybrid types.
Harvest: Manual harvesting of sunflower heads, followed by drying and threshing.

Tanzania produces both confectionary sunflower (for snacking) and oilseed sunflower (for cooking oil). The government has designated pilot models in Dodoma, Singida, and Simiyu to boost production.

3. Aggregation & Trading

Sunflower seeds move from farms to processors through intermediaries:

Local traders / middlemen: Buy seeds at farm-gate (~TZS 40,000/bag) and sell to processors (~TZS 50,000/bag). Often double as input suppliers and financiers. ~60% of farmers regard prices as unsatisfactory.
AMCOS: Primary cooperatives aggregate and market sunflower at village level. 632 groups registered as CBOs in Singida; 101 registered as AMCOS.
SACCOS: Provide credit inputs to farmers for sunflower production.

Middlemen dominate market access, capturing ~20% margin between farm-gate and processor prices. Organized farmer groups (AMCOS) can improve farmer bargaining power.

4. Primary Processing

Processing transforms seeds into crude oil and cake:

Large-scale: Mount Meru Millers (110,000 MT/yr, Arusha — 44% of exports), Pyxus Tanzania (120,000 MT/yr, Dodoma — contract farming with seed loans).
Medium/small-scale: Singida Sunshine, Sekenke Kwetu, JJ Oil Mills, Nuru Oil Mills (Singida region).
Products: Crude sunflower oil (for refining), sunflower seed cake (animal feed), and packaged cooking oil.
Equipment: SIDO, TEMDO, TIRDO manufacture local processing equipment for small-scale processors.

5. Distribution & Logistics

Oil and seed products reach markets through established channels:

Export: Mount Meru Millers accounts for ~44% of Tanzania's sunflower oil exports (51 shipments). Jielong Holding T Ltd also exports (9 shipments).
Domestic: Processed oil distributed to urban markets through wholesalers and retailers.
Seed cake: Sold to animal feed manufacturers and livestock farmers.
Quality compliance: TBS oversees product standards; TFDA ensures food safety.

6. Retail & End Markets

Sunflower oil reaches consumers through diverse channels:

Retail: Packaged cooking oil sold in supermarkets, shops, and open markets across Tanzania.
Institutional: Hotels, restaurants, schools, and food processors purchase in bulk.
Export markets: Regional (EAC, SADC) and international buyers of crude and refined sunflower oil.
Byproducts: Sunflower seed cake sold as livestock feed; hulls used for fuel or mulch.

7. Consumption

Sunflower oil is a staple cooking oil in Tanzania:

Household cooking: Preferred cooking oil for frying and food preparation across East Africa.
Food manufacturing: Used in processed foods, snacks, and baked goods.
Animal feed: Seed cake is a high-protein ingredient in livestock and poultry feed.
Snack food: Roasted sunflower seeds consumed directly as a snack.
Industrial: Potential for biodiesel production and cosmetic applications.

Value Distribution Across the Chain

The economic value captured at each stage of the sunflower value chain:

35%Farmers

10%Traders / Brokers

30%Processors

25%Retailers & Export

Farmers receive the smallest share relative to the final retail price. Middlemen capture ~20% margin between farm-gate and processor prices. AMDT's program (2016–2021) aimed to raise incomes of 150,000 sunflower farmers by 50% through better market linkages and improved seed varieties.

Value Chain Flow

Input Suppliers Farmers Traders / AMCOS Processors Wholesalers Retailers Consumers

Wadau

Wadau Wakuu katika Mnyororo wa Thamani wa Alizeti

Mashirika na kampuni muhimu katika sekta ya alizeti nchini Tanzania

Large-Scale Processors / Exporters

Company	Details
Mount Meru Millers Ltd	Largest sunflower oil processor and exporter. Capacity: 110,000 MT/yr. HQ: Arusha. ~44% of Tanzania's sunflower oil exports (51 shipments).
Pyxus Tanzania Limited	Major processor. Capacity: 120,000 MT/yr. HQ: Dodoma. Engages in contract farming; provides seed loans.

Medium & Small-Scale Processors

Company	Location
Singida Sunshine	Singida
Sekenke Kwetu	Singida
JJ Oil Mills	Singida
Nuru Oil Mills	Singida
Jielong Holding T Ltd	Exporter (9 shipments)

Industry Associations & Regulatory Bodies

Organization	Role
TASUPA / TSMPA	Sunflower Processors Association — lobbies for sector improvements.
Tanzania Edible Oil Association	Industry body for the edible oil sector.
TCCIA	Chamber of Commerce representing businesses.
TBS	Oversees quality standards for sunflower products.
TOSCI	Certifies sunflower seeds before release.

Input Suppliers & Research Institutions

Organization	Role
TARI	Develops improved high-oil sunflower varieties. Collaborates with AMDT.
ASA (Agricultural Seed Agency)	Multiplies seeds through commercial farms.
Ilonga & Uyole Institutes	Research on improved oil seeds.
Local Seed Suppliers	Galio and recycled seeds from farmers dominate supply.

Financial Service Providers

Institution	Role
TADB	Credit guarantee scheme for commercial bank financing.
CRDB, NMB, TPB Banks	Provide loans to farmer organizations.
VSLAs & SACCOS	Community-level financing for farmers.

Development Partners & NGOs

Organization	Program
AMDT	Program 2016–2021: raised incomes of 150,000 sunflower farmers by 50%.
AGRA	YEFFA project promoting sunflower value chain.
Farm Africa	13,064 farmers in 267 groups in Manyara.
Farm Concern International	Programs targeting sunflower.
One Acre Fund	Programs targeting sunflower.
FAIDA Mali	Value chain financing.
TechnoServe	Working in the sector.

Government Institutions

Institution	Role
Ministry of Agriculture	Rules, guidelines, pilot models in Dodoma, Singida, Simiyu.
Ministry of Industry and Trade	National edible oil strategy.
TCDC	Registers AMCOS cooperatives.
TFDA	Food safety compliance.

Equipment & Technology Providers

Organization	Role
SIDO	Local manufacturer of processing equipment.
TEMDO	Local manufacturer of processing equipment.
TIRDO	Local manufacturer of processing equipment.

Key Production Regions

Region	Status
Dodoma	Major production, government pilot model
Singida	Significant production, 32,265 farmers in 915 groups
Manyara	Growing production area
Mbeya	Production region
Morogoro	Production region
Simiyu	Government pilot model

Tanzania's sunflower sector is dominated by smallholder farmers (~32,000+ in Singida alone) supplying a mix of large industrial processors (Mount Meru, Pyxus) and small-scale mills. The government's edible oil strategy prioritizes sunflower to reduce import dependence. Key challenges include low yields (~0.6 t/acre), limited access to improved seeds, and dominance of middlemen in market channels.

1. Input & Service Supply

Sesame farmers access inputs through:

Seed supply: TARI develops improved varieties. ASA multiplies certified seeds. TOSCI certifies varieties before release. Local suppliers and recycled seeds from farmers also dominate.
Fertilizer & agrochemicals: Limited use in sesame; most farmers rely on soil fertility without purchased inputs.
Financial services: CRDB Bank provides loan facilities to cooperative unions. VSLAs and SACCOS offer community-level financing.

2. Production (Cultivation)

Sesame is grown by smallholders across southern Tanzania:

Growing regions: Lindi, Mtwara, Songwe, Ruvuma, Morogoro, Dodoma, Singida. Lindi is the largest producer, known for white sesame.
Farm size: 0.5–2 hectares per farmer.
Production: ~99.8% of national output comes from smallholders under rainfed conditions.
Planting: Seeds sown at onset of rains; varieties include white, brown, and mixed types.
Harvest: Manual harvesting, followed by drying and threshing. Women are heavily involved in harvesting and post-harvest processing.

Tanzania is a significant sesame producer in East Africa, with Songwe Region having 1.9 million hectares suitable for sesame farming. The crop is a key income source for smallholders in southern Tanzania.

3. Aggregation & Trading

Sesame moves from farms to exporters through intermediaries:

Local traders / middlemen: Buy at farm-gate and sell to larger exporters. Often criticized for lack of contract adherence and buying at lowest prices.
AMCOS: Primary cooperatives aggregate sesame at village level, affiliated with cooperative unions.
Cooperative unions: Ilulu Cooperative Union (ICU) in Lindi/Mtwara — 88 AMCOS, ~20,000 farmers, ~25,000 tons/yr capacity. Massi Mtwara Cooperative Union (MAMCU) — 80 AMCOS, ~15,000 farmers, ~20,000 tons/yr capacity.
Warehouse receipt system: Songwe Regional Cooperative Union (Sorecu) operates 12 warehouses for sesame auctions in Songwe Region (2026/27 season).

Cooperative unions face challenges with debt, business management skills, and international market access. Middlemen capture significant margin between farm-gate and export prices.

4. Export & Marketing

Most sesame is exported raw with limited local processing:

Major exporters: MeTL Group (largest buyer, vertically integrated), Olam Tanzania, Fida Husein & Company, Abbasi Exports, JKT Foods EUROPE DMCC.
Export markets: Asia, Middle East, Europe, Africa — through global commodity traders.
Quality compliance: TBS oversees export quality standards. TanTrade regulates export trade and promotes sesame internationally.
International brokers: Aggregate cargo from multiple African sources including Tanzania for export to Asia and the Middle East.

Value-added processing remains very limited. There is growing advocacy for local processing into sesame oil, tahini, and packaged food products to capture more value domestically.

5. Retail & End Markets

Sesame reaches consumers through diverse channels:

Export: Raw sesame seeds exported to Asia, Middle East, and Europe for oil extraction, confectionery, and food manufacturing.
Domestic: Small quantities used in local cooking, baking, and traditional foods.
Value-added products: Sesame oil (Agrex Import & Export in Mwanza), tahini, packaged snacks — minimal production currently.
Byproducts: Sesame seed cake used as animal feed.

6. Consumption

Sesame products are used in food and industrial applications:

Food: Sesame oil for cooking, tahini for sauces and spreads, whole seeds for baking and confectionery.
Industrial: Potential for biodiesel production and cosmetic applications.
Animal feed: Seed cake is a high-protein ingredient in livestock feed.
Traditional medicine: Sesame used in some traditional health preparations.

Value Distribution Across the Chain

The economic value captured at each stage of the sesame value chain:

30%Farmers

15%Traders / Brokers

25%Exporters

30%International Buyers

Farmers receive approximately 30% of the final export value. Middlemen and traders capture ~15% margin. Cooperative unions face challenges with debt and market access, limiting their ability to secure better prices for farmers. Most value is added outside Tanzania in destination markets where sesame is processed into oil, tahini, and confectionery products.

Value Chain Flow

Input Suppliers Farmers AMCOS / Unions Traders / Brokers Exporters International Buyers Consumers

Wadau

Wadau Wakuu katika Mnyororo wa Thamani wa Ufuta

Mashirika na kampuni muhimu katika sekta ya ufuta nchini Tanzania

Major Exporters & Buyers

Company	Details
MeTL Group	Largest diversified conglomerate and agri-exporter. Major sesame buyer with policy influence. Operates storage, processing, and vertically integrated farms. Exports to Asia, Middle East, Europe, Africa.
Olam Tanzania Ltd	Leading global supply chain manager. Active in sesame sourcing and export from Tanzania.
Fida Husein & Company Ltd	Large buyer with significant market power in the sesame sector.
Abbasi Exports Ltd	Major buyer/exporter with policy influence.
JKT Foods EUROPE DMCC	Indian-based global trader. Trades 40,000+ MT of sesame annually (2–3% of world trade). Sources from East Africa including Tanzania.

Cooperative Unions & Farmer Organizations

Organization	Details
Ilulu Cooperative Union (ICU)	Lindi/Mtwara. 88 AMCOS, ~20,000 farmers, ~25,000 tons/yr. Challenges: debt, business management, market access.
Massi Mtwara Cooperative Union (MAMCU)	80 AMCOS, ~15,000 farmers, ~20,000 tons/yr. Challenges: extension support, business management, market access.
Massi High Quality Farm Products (MHQFP)	Farmer-owned. 6 associations, 800 farmers. Input supply and quality production focus.
Songwe Regional Cooperative Union (Sorecu)	Manages warehouse receipt system and sesame auctions in Songwe. 12 warehouses for 2026/27 season.
Subagro	Private sector trader, key driver in southern Tanzania sesame sector.

Local Traders & Brokers

Type	Details
Local Traders / Middlemen	Numerous small and medium traders operate at farm-gate and village market levels. Criticized for lack of contract adherence and buying at lowest prices.
International Brokers	Aggregate cargo from multiple African sources including Tanzania for export to Asia and the Middle East.

Regulatory & Government Bodies

Institution	Role
COPRA	Oversees sesame trading season, sets guidelines, manages auctions. Director General: Irene Madeje Mlola.
TanTrade	Regulates export trade and promotes sesame in international markets.
Ministry of Agriculture	Supports sesame as strategic crop, invests in quality seed distribution and extension services.
TBS	Oversees quality standards for sesame exports.
TOSCI	Certifies improved sesame seed varieties.

Research & Input Supply

Organization	Role
TARI	Conducts research on sesame varieties and agronomic practices.
ASA	Multiplies and distributes certified sesame seeds.
Local Seed Suppliers	Private sector sources including recycled seeds.

Development Partners & NGOs

Organization	Program
SNV Netherlands Development Organisation	Unlocking sesame farmers' potential for fair trade in southern Tanzania. Partner: FLO.
Fair Trade Labelling Organization (FLO)	Partners with SNV to integrate southern Tanzania sesame into mainstream edible oilseed value chains.
ROSDO	Local capacity builder working with SNV and FLO on sesame sector development.
CIMMYT	Works on market-led breeding approaches for sesame as an opportunity crop in Tanzania.

Financial Service Providers

Institution	Role
CRDB Bank	Provided loan facilities to cooperative unions (e.g., Ilulu) for sesame purchasing.
Other Commercial Banks	Provide financing to traders and exporters for working capital and export operations.

Smallholder Farmers

Details
~99.8% of national sesame output comes from smallholders farming 0.5–2 hectares under rainfed conditions. Primary producers in Lindi, Mtwara, Songwe. Women heavily involved in harvesting and post-harvest processing.

Key Production Regions

Region	Status
Lindi	Largest producer, known for white sesame
Mtwara	Coastal production hub with good rainfall
Songwe	Major growing area, 1.9m ha suitable for sesame
Ruvuma	Inland growing zone
Morogoro	Inland growing zone
Dodoma	Drier central region with increasing cultivation
Singida	Drier central region with increasing cultivation

Value Addition & Processing

Company	Details
Agrex Import & Export	Sesame oil and cashew nut processing. Based in Mwanza.

Tanzania's sesame sector is dominated by smallholder farmers supplying major export trading companies. Most sesame is exported raw with minimal local value addition. The government recognizes sesame as a strategic export crop, with COPRA overseeing the trading season and auctions. Key challenges include limited access to improved seeds, dominance of middlemen, cooperative union debt, and lack of domestic processing infrastructure.