Reducing Edible Oil Import Dependency in Tanzania: A Computable General Equilibrium CGE Approach

Abstract

Reducing food imports and promoting domestically produced food commodities are long-standing goals for policymakers and other stakeholders in sub-Saharan African countries. For instance, Tanzania, after a long period of dependency on imported food commodities, such as sugar and edible oils, intends to meet its demand for these commodities through domestic production by transforming its agriculture sector to achieve this goal. Applying a general computable equilibrium (CGE) model, this study determines the multiplier effects of technological progress that is assumed to foster domestic edible oilseed crop production, other crops, and Tanzania’s economy in general. Findings from the model establish an increase in domestic production not only for the edible oilseed crops but also for other commodities from other sectors of the economy. In addition, there is a decrease in prices on domestically produced commodities sold in the domestic market, and an increase in disposable income is predicted for all rural and urban households, as well as government revenues. Based on model results, we recommend that the Tanzanian government invests in technological progress and interventions that increase production in sectors such as agriculture, where it has a comparative advantage. Interventions that increase smallholder farmer’s production, such as the use of improved seed and other modern technologies that reduce costs of production, are critical for reducing food imports and improving food security.

Institutional Factors Influencing Sunflower Productivity in Mkalama District

“…Sunflower accounts for about 40% of the national cooking oil supplied in Tanzania [3]. Despite favorable conditions for sunflower production in Tanzania, the average production is below its potential of about 3 tons per hectare, and the country imports 60% of its oil demand, which costs about US$ 294 billion of foreign currency annually [4], [5]. Smallholder farmers who cultivate one to ten acres per household are the main producers of sunflowers, and efforts have been taken by the government and non-government organizations to increase production [3], [6], [7].…”

“…The central corridor, which includes Singida and Dodoma regions, leads in production [4]. Efforts have been made to increase production by implementing protectionist policies, breeding, certifying, promoting, and distributing improved varieties, and strengthening research and extension services [3], [5], [7]. However, at Mkalama District, which is regarded as a leading district in sunflower production in the Singida Region [9], the average sunflower production is 350 to 600 kg per acre, which is lower than the optimum yield of 900 kg per acre.…”

Assessment of the degree of rancidity on reused oils in university cafeterias, and public awareness

“…Frying is among the most common methods used for food preparations in all places of the world (Okparanta et al., 2018; Susan et al., 2018). Recently, fried foods are very popular everywhere around the world and can easily be noticed by the increasing number of fast‐food restaurants (Peter Mgeni et al., 2019). Most of the frying methods are achieved through deep‐frying which involves submerging foods in extreme temperature oils till cooked to the craved sensory attributes (taste and texture) (Farrokhzadeh et al., 2013).…”

The Hindrances to Income Growth of Smallholder Sunflower Farmers in Tanzania: A Market Knowledge Aperture Cause?

“…In some cases, they sell oil to larger processors. It is estimated that locally produced-sunflower oil can satisfy approximately 35%–40% of the local demand for edible sunflower oil (Food Business Africa 2018; Mgeni et al 2019).…”