soybean oil processing plant edible oil production line in tanzania

                                               
                                               
                                               
                                               
                                               
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  • How much edible oil does Tanzania import a year?
  • Critical IOA Unit Tanzania imports 320,000 tons of edible oil per year. Tanzania¡¯s annual demand for edible oil stands at 500,000 tons, whereas the country can supply only 180,000 tons, forcing it to import 320,000 tons each year, signaling major opportunities for import substitution (7).
  • How can the got reduce Tanzania's dependence on imported edible oil?
  • The GoT wants to reduce Tanzania¡¯s dependence on imported edible oil by boosting domestic oil seed production and downstream oil processing capacity. In 2016 the GoT implemented a 10% tariff on imports of CPO as one mechanism to support this objective, but stakeholder views on the merits of the tariff policy are mixed.
  • What is the demand gap for edible oil in Tanzania?
  • Much of the demand gap is currently met by imported edible oil (60% across all edible oils, 55-70% for sunflower oil) (Salisali, 2017). The GoT wants to reduce Tanzania¡¯s dependence on imported edible oil by boosting domestic oil seed production and downstream oil processing capacity.
  • What challenges are facing the edible oil industry in Tanzania?
  • While early developments in the edible oils industry in Tanzania are promising, particularly in sunflower oil production, a few challenges have emerged in the value/production chain. These, in turn, present opportunities moving forward: Current lack of seed and working capital means processors are at 45% capacity in-season and 5% off-season.
  • Why is edible oil a strategic commodity in Tanzania?
  • Policy priority: The government of Tanzania has identified edible oil as a strategic commodity for reducing food imports and promoting domestically produced food commodities. The choice of the product is supported by the fact that Tanzania¡¯s large national demand for edible oil requires imports to meet about 60% of demand (5).
  • 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.