The sunflower value chain : a case study in Babati, Tanzania

Sammanfattning: The aim of this bachelor thesis was to investigate how local farmers of sunflower and local processors of sunflower oil in Babati, Tanzania perceive constraints and possibilities to value chain upgrading by conducting a case study. Open-ended interviews were conducted during a period of eight weeks with local sunflower farmers, local sunflower processors and other actors with knowledge of the sunflower value chain. The results from the study show that the main constraints perceived by farmers were lack of capital and incentive to buy new seeds, lack of knowledge of how to re-plant old seeds, their lack of bargaining position and market knowledge which together put restrains on their market access. The main constraints, perceived by local processors, were lack of access to credit, lack of market access with regard to sunflower cakes, a bi-product of sunflower oil production, and a shortage of sunflower seeds on the local market. With regard to the shortage of seeds produced in the area this was discussed further with the respondents as it seems to be connected with actors need for diversification as a form of risk aversion. The main upgrading options as perceived by farmers were value addition by also processing and selling the sunflower oil and different forms of horizontal integration. The main upgrading option perceived by local processors of sunflower oil was an insourcing of the labelling and packaging of sunflower oil which would create access to higher value markets.