Transcript 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
•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
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 )
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
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
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
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)
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
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
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
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
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
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