More recently, additional uses for this crop have developed, such as local soap production using palm oil. Oil palm production in Tanzania is carried out primarily by smallholder farmers living in Kigoma Region (Kigoma Rural District), as well as in Mbeya Region (mostly Kyela District) and some parts of Tanga and Pwani regions.
Can Tanzania develop oil palm plantation & processing?
Tanzania has the potential to develop oil palm plantation and processing The main oil palm planting areas in Tanzania include Kigoma, Kyela District and Tanga. Due to the suitable soil and climate, the Kigoma area undertakes more than 80% of Tanzania’s palm oil production tasks.
Which areas are suitable for oil palm production in Tanzania?
There are many (other than Kigoma, Mbeya and Pwani) suitable for oil plam production in Tanzania. Areas that have the potential to grow oil palm include: Tabora (Urambo & Kaliua), Katavi, Morogoro, Tanga, Lindi, Mtwara, Kagera and Mbeya (Kyela)9.
Where does Kigoma palm oil come from?
Kigoma region accounts for over 80 percent of the palm oil produced in the country, the remaining 20 percent comes from Kyela District in Mbeya region. In the Kigoma region palm oil is grown on smallholder farms and processed manually. The main point of sale for Kigoma palm oil is local and in crude form.
What is the palm oil value chain in Tanzania?
The palm oil value chain in Tanzania – Diagnostics, investment models and action plan for development and innovation (2019) Tanzania`s edible oil sub-sector stands at Tshs 676.2 billion (US$294 million) with players like Bidco Oil and Soap Ltd, Murzah Oil Mills and Alaska Tanzania3.
Does Tanzania produce enough edible oil?
However, Tanzania believes it has the capacity to produce enough of the required edible oil and so undertook measures to boost production. In the 2018/19 financial year, the country increased the tariffs on crude palm oil to 25% to promote local production of oil seeds.