Growth and development of the oilseeds-edible-oils value chain in Tanzania and South Africa1 Cornel Jahari and Blandina Kilama Policy Research for Development, REPOA
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[email protected] Shingie Chisoro-Dube and Tamara Paremoer Centre for Competition, Regulation, and Economic Development
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[email protected] Abstract This study evaluates the potential for regional value chains in agro-processing to drive regional growth, industrialisation and development. This follows growth in agricultural productivity and increased demand for processed food within the region, coupled with rising global agro- and commodity prices. Developing the agro-processing sector requires building linked industrial capabilities along with logistics, packaging and quality standards. Using the oilseeds-to-edible oils value chain, the study explores the potential for developing stronger regional linkages between Tanzania and South Africa. Tanzania has significantly increased production of oilseeds since 2010, but continues to import edible oil and processed oil-based products while South Africa has established capabilities in crushing, refining and manufacturing of oil-based products but imports oilseeds and edible oil mainly from Eastern Europe. Key findings from the study show that high logistics costs limit opportunities for increased trade in oilseeds, edible oil, and processed oil-based products between South Africa and Tanzania. In the short term, there are opportunities for increased trade in machinery and equipment for storage and processing and exchange of technical and advisory services to upgrade processing capabilities in Tanzania. JEL classification: L52, L66, O13, O14 Key words: value chain, production, trade, oilseeds, edible oil, Tanzania, South Africa 1 This study was undertaken as part of a series of research studies under the African Industrial Development and Integration Research Programme funded by the South African Department of Trade and Industry.