A Case of Sunflower and Palm Oil

Tanzania rural areas are endowed with resources capable to increase edible oil supply in the country hence saving foreign currency spent on importation of oil. This requires rural oil ventures to be innovative in the production process. The main purpose of this study was to assess the extent of diffusion of innovations to rural sunflower and palm oil ventures. The study findings reveal that diffusion of innovation is more taking place in rural sunflower than palm oil ventures. Sunflower oil processors increased oil performance by adopting new types of machines to their equipment. Diffusion of innovation in rural ventures was facilitated by availability of electricity, increased quality of oilseeds, flow of information about new technologies from competitors, suppliers of machines, SIDO, media and technological centres. Sunflower oil benefited much from these factors as they had established along electricity line and had facilities to link with oilseeds business persons who further transferred knowledge about new machines and processes.

Whereas rural sunflower oil processors were constrained by lack of enough oilseeds that would stimulate need for advanced technologies, palm oil processors were mostly constrained by lack of power supply, lack of information on new technologies as due to poor communication channels between machine makers and rural oil processors, lack of linkages with refinery plants and poor funding of technological centres towards technology dissemination to boost up the industry in the rural setting. The government is therefore urged to stimulate, strengthen and coordinate linkages between rural oil processors, machine makers, refining plants and technological centres. Further, the government should train rural oilseeds farmers and oil producers on entrepreneurship in order to materialise growth among rural oil processing firms, and lastly, rural oil producers should establish and strengthen unions to deal appropriately with innovation challenges they are facing in production.