Tanzania’s ambition to revitalize its sunflower sector has encountered hurdles in the form of a delayed seed subsidy scheme, casting a shadow on the industry’s growth prospects for the 2023/2024 season. This setback is primarily linked to challenges in sourcing the promised 700 tonnes of high-yield hybrid seeds, funded by the African Development Bank.
The government’s initiative aimed to provide one million sunflower farmers with hybrid seeds, promising yields and oil content up to 65% greater than traditional varieties. With a focus on reducing hefty edible oil imports (valued between $90 million and $250 million annually), Tanzania sought to boost its sunflower processing capabilities. Initiatives such as tariffs on edible oil imports and VAT exemptions on sunflower oil processing equipment underscored the commitment to support local oil producers.
Despite substantial investments in sunflower processing, processors are grappling with limited domestic raw materials due to farmers’ low yields. The introduction of four hybrid seeds over the past decade failed to gain traction. The current hurdle revolves around the selection of a new entrant to the seed industry, offering an Indian hybrid seed with uncertain yield and oil content data.
Seed Selection Controversy – the Tanzanian government’s choice of a new hybrid, lacking yield and oil content information and not recommended by the Indian Directorate of Oilseeds Development (DOD), has raised eyebrows. This seed, while available in large volumes and competitively priced, has faced delays in arriving in Tanzania. Negotiations are ongoing, adding uncertainty to the seed supply.
Farmers are expected to face challenges as the seed purchase is unlikely to be available before the planting season concludes in early 2024. Storage will be necessary for the new supply until the 2024/2025 season. The stockpiles of the selected Indian seed, estimated at 500 tonnes, further complicate the fulfillment of the 700-tonne order.
While challenges persist, opportunities for growth in Tanzania’s sunflower industry remain. The resolution of the seed subsidy scheme will require collaborative efforts and strategic planning to overcome delays and ensure a sustainable supply chain. The industry’s resilience will be key as stakeholders navigate these complexities in pursuit of a thriving sunflower secto