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The Challenge of Substituting Sunflower Oil for Imported Palm Oil: Evidence from Tanzania
Edible oil imports to Africa grew over 10% per year from 2006 to 2015, and accounted for 34% of the continent’s total growth in food imports over this period—the highest share of any food group. In the same period, several African countries experienced a boom in the local production and processing o...
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| Format: | Article |
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| Published: |
2018
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| LEADER | 00000njm a2000000a 4500 | ||
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| 001 | oai:repository.ui.edu.ng:123456789/9710 | ||
| 042 | |a dc | ||
| 720 | |a Olabisi, M. |e author | ||
| 720 | |a Tschirley, D. L. |e author | ||
| 720 | |a Nyange, D. |e author | ||
| 720 | |a Awokuse, T. |e author | ||
| 260 | |c 2018 | ||
| 520 | |a Edible oil imports to Africa grew over 10% per year from 2006 to 2015, and accounted for 34% of the continent’s total growth in food imports over this period—the highest share of any food group. In the same period, several African countries experienced a boom in the local production and processing of oil-seeds. The combination of import growth and domestic production booms reveals a gap in the literature on the characteristics of edible oil demand in Africa. We begin to fill this gap by estimating own-price, cross-price, and expenditure elasticities of demand for palm, sunflower, and other edible oils in Tanzania. We apply a QUAIDS model to detailed household level data - focusing on palm and sunflower oil, because for the most part, palm oil is imported and sunflower is domestically produced. Our main finding is a surprisingly low level of substitution between the domestic and imported edible oils. Simulated budget shares from our estimates suggest that a 10% tariff increase on palm oil leads to less than a 0.06% change in the budget share of domestically produced sunflower oil. We identify other potential policy implications from our findings and highlight steps for further research. | ||
| 024 | 8 | |a https://repository.ui.edu.ng/handle/123456789/9710 | |
| 245 | 0 | 0 | |a The Challenge of Substituting Sunflower Oil for Imported Palm Oil: Evidence from Tanzania |