Analysis of Technical Efficiency of Sunflower Oil Production in Tanzania A Case of Small Scale Processors in Singida Region

Most developing nations, including Tanzania, consider agro processing as a key to industrialization. Despite an attractive sunflower seed yield, Tanzania's sunflower oil processing and production has been staggering over the years. Sunflower oil production is inefficient and low output. So, this study studied sunflower oil production Technical Efficiency (TE) in Singida. The study examined the social and economic factors that affect TE in small scale sunflower oil producers. The study applied cross sectional design and secondary data for year 2016/2017 were collected from central zone sunflower oil processors association and small industrial development organization based on Singida small scale sunflower oil producers. It used stochastic frontier analysis and multiple linear regressions to find the empirical economic relationship between the variables. Sunflower oil producers averaged 30.1% less TE as the average TE was 69.9%. It revealed that Labor, seed, capital and electricity also affected production. Age, experience, education and locality also mattered. Finally, processing techniques, socio economic and demographic differences affect sunflower oil production. So, producers must increase capital inputs to be technically efficient. Consider boosting producer capacity and abilities and observing a minimum number of productive staff