Sunflower Value Chain Case Study

According to Kaplinsky and Morris (2002) cited by Webber and Labaste (2010), a typical value chain describes the full range of value-adding activities required to bring a product through the different phases of production, including procurement of raw materials and other inputs, assembly, physically transformation, acquisition of required services such as transport or cooling, and ultimately response to consumer demand.

According to KIT and IIRR (2010) a value chain refers to the entire system of production, processing and marketing of a particular product, from inception to the consumption with a series of chain actors, linked together by flows of products, finance, information and services. Figure 3 (KIT and IIRR 2010) shows a simple value chain for the benefit of all chain actors. Figure 3. Simple value Chain (KIT and IIRR 2010). KIT and IIRR (2008) states that a complete value chain must

Figure 4. Complete Sunflower Value Chain

2.1.2 Challenges in Sunflower Value Chain in Tanzania

According to Beerlandt et al (2013), Sunflower is the main cash crop for small households in Kongwa District and plays a major role in household food security, enabling households to buy food with the income they receive from sales of sunflower seeds and oil. However, the local markets and few small farmer producer or marketing groups for sunflower oil and seeds are considerable.

Tanzania Sunflower value chain is characterized by a booming number of medium to small processors for first pressing of sunflower seeds and for oil cake. The efficiency of most of these processors is suboptimal; they usually do not use their machine(s) at full capacity or year round (Beerlandt et al, 2013).

Beerlandt et al (2013) appeal that, apart from the institutional challenges described above, there are several functional challenges for the vertical integration of the edible oil value