Investigating Value Addition Activities in the Palm Oil Supply Chain in Kigoma Region, Tanzania.

ABSTRACT The purpose of this paper was to investigates value addition activities of palm oil supply chain in Kigoma region, Tanzania. A case research design was adopted in which questionnaire and interview was used to collect data from 130 respondents. The study findings revealed that main actors in Kigoma palm oil supply chain are farmers (46%) followed by processors (38.2%) and traders while non-governments (6.3%) and government agents (9.1%) being the minority. Seed production, nursery, cultivation and harvesting are main upstream (production) supply chain activities. At Midstream (Processing), main activities include processing of crude palm/kernel oil by refining, fractionating and distilling into marketable forms which are suitable for manufacturing food and non-food products. While in downstream activities includes marketing of food and non-food products from refined and crude palm and kernel oil. Study further revealed that palm oil sub-sector create employment, increase income, promote other sector development and improve living standard of majority farmers in Kigoma Region. Though several challenges like shortage of capital among small farmers in Kigoma, unreliable local and international market, poor infrastructure network in Kigoma rural areas and low level of technological application in palm industry as main constrains. The study recommended that government support is more required for enhance capacity building among small farmers, invest in research and development, improve Infrastructure Network and increase support to farmers through its agents like SIDO, TBS, TFDA, financial institutions, ministry of industry and other public institutions.