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 ID: 415976
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Slide1
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 Slide2
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 )Slide3
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 etcSlide4
Technology supportSourcing 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 Slide5
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 Slide6
technologyDevelopment 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
)Slide7
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 Slide8
Working premises continueBecause 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 constraintSlide9
Cluster FormationEffective 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 Slide10
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
O
perate and Transfer arrangementSlide11
Financial supportSIDO 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 capitalSlide12
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