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SIDO to intervention to sunflower industry sector

SIDO to intervention to sunflower industry sector. Approach :Value addition through a resources based strategy. About 43 different commodities based on local available resources in the district have been identified in 133 districts in mainland Tanzania

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SIDO to intervention to sunflower industry sector

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  1. SIDO to intervention to sunflower industry sector Approach :Value addition through a resources based strategy. About 43 different commodities based on local available resources in the district have been identified in 133 districts in mainland Tanzania 29 district have selected sunflower as their main commodity There are other districts that cultivate sunflower not as their main commodity under this strategy MUVI program implement sunflower value chain in 6 districts in MUVI pilot regions

  2. SIDO interventions SIDO offers intervention in four main areas: • Technology and technical support services • Marketing linkages • Training in various aspect leading to product improvement and enhanced entrepreneurship. • Financing ( direct through micro & small loans and/ or linkages to banks and financial institutions )

  3. Marketing support • Linking processors to markets • Organize zonal exhibitions where sunflower products are displayed • Placing sunflower products on newsletters like SIDO habari • Linking entrepreneurs to external trade exposes etc

  4. Technology support • Sourcing of machinery and equipment and make the information available to entrepreneurs through the network of 21 regional offices( figures). Machines are sought locally or from out of the country • Provide technical backup support using technical officers in the region to assist in Machinery installation, trial production and day to day technical support as may be required

  5. Quality improvement Training • Training on GMP ( Good manufacturing practices • Training on good hygiene practices during production • Training on procedures to follow to get TBS/TFDA certification • Making awareness campaign on edible oil standards requirements ( local & export ) to processors and consumers to clear the current confusion on standard

  6. technology • Development and upgrading of Sunflower processing technology through 2 technology development centers( Iringa, • Development of Sunflower refinery capacity of 5 tones per day at final stages of optimization ( Iringa)

  7. Working premises • One of the major problem facing the sunflower manufacturing industry at micro and Small enterprise level is lack of well prepared working premises for them to start grow and sustain businesses • Most of micro entrepreneurs in sunflower processing businesses operate at the backyards of houses or by the streets producing in constrained very unhygienic areas • 145 industrial location set aside by local government since 2003 in different district but not developed

  8. Working premises continue • Because of lack of investment capital most of them do not afford to build warehouse for storage of raw materials ( seeds) and at times processing become seasonal due to lack of raw materials • SIDO is trying to solve this through organized innovative sunflower oil cluster formation in selected regions of Dodoma ,Singida, and Manyara but the funding is becoming a constraint

  9. Cluster Formation Effective support of sunflower processing and marketing requires environment where common facilities are available and enterprises can work together to maximize the Economic of scale: Formation of innovative industrial clusters is being implemented in five regions namely Morogoro ,Dodoma, Singida, Manyara and Moshi focusing on sunflower processing and metal works clusters to support the sunflower clusters. • Storage of raw materials and ware houses is • Food Laboratories • Oil refinery and ; • BDS provision facility etc

  10. Models of cluster • Rural models Rural model cluster in Mtinko village where land is offered by community and SIDO and LGA support the community in cluster formation • Urban Model SIDO offers the land and work with other partners to develop the cluster . Private sector can participate in Build Operate and Transfer arrangement

  11. Financial support • SIDO offer financial support through direct lending of micro and small loans ranging between $500 to $6000. sunflower processors have benefitted from this loan schemes but the loan size is small for meaningful investment • Loan requirement higher than the amount are linked to banks. • Most of the banks require collaterals in the form of immovable assets and most SMEs can not afford this condition s thus continues suffer from lack or inadequacy of funds for investment as well as working capital

  12. Future direction • Development of affordable infrastructure to stimulate establishment of new industries and expansion of existing ones. This will be done focusing on cluster formation • Setting aside acceptable land for cluster formation in all district • Mass production sunflower machinery on equipment to cut down the costs of production and bring down prices • Transform all ODOP based commodity into industrial cluster formation • Advocate for incentive schemes to attract investment in sunflower industry • Conduct awareness campaign to processors traders and consumers on required quality and standards

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