Coconut, palm kernel or babassu oil and fractions market in Tanzania

Earlier Report Observations

Between 2018 and 2023, the market volume for coconut, palm kernel or babassu oil in Tanzania showed notable fluctuations. Following a modest increase to 17 762 t in 2019, the market contracted to 17 460 t in 2020. A strong recovery followed, with the market expanding to 18 848 t in 2021 and reaching a peak of 19 261 t in 2022, before moderating to 18 884 t in 2023.

In 2024, a key policy shift partially reduced the import duty on crude palm and sunflower oils, which corresponded with a significant rise in imports to 1 665 t. Concurrent structural challenges in domestic production persisted, including a low oil palm yield of 1.6 t per hectare due to underdeveloped farming systems and limited access to agricultural information for small-scale farmers, constraining output growth.

Consumer preferences in the market continued evolving toward cleaner, safer, and more environmentally sustainable products. Government initiatives to identify improved palm varieties and develop the value chain for edible oils and biofuels presented longer-term opportunities for the sector.

Production coconut, palm kernel or babassu oil and fractions in Tanzania

In kind, 2017-2020, t

From 2017 to 2020, Tanzania ranked as the 25th largest global producer of coconut, palm kernel, or babassu oil and fractions.

Top producers of coconut, palm kernel or babassu oil and fractions, 2017-2020

World map of production of coconut, palm kernel or babassu oil and fractions, 2017-2020

Tanzania's production of coconut, palm kernel, or babassu oil and fractions declined for the second year in a row. In 2020, the country produced 16 633 tonnes, marking a modest year-over-year decrease of 3.1%. Over the 2017-2020 period, production fell by 2.7%, with a compound annual growth rate of 0.9%. The highest production level was recorded in 2018 at 17 700 tonnes, which also saw the largest increase of 3.5%.

Annual dynamics of production in Tanzania in kind, 2017-2020, t

Exports coconut, palm kernel or babassu oil and fractions from Tanzania

Exports in kind, t

The market displayed significant volatility during the observed period. Exports reached their peak in 2018 at 329.5 tonnes and dropped to their lowest point in 2019 at 10.0 tonnes, showing a 33-fold difference between these years. In 2020, Tanzania's exports of coconut, palm kernel, or babassu oil and fractions amounted to 62.6 tonnes, a sharp increase of 524.7% compared to 2019. The largest decline occurred in 2019, falling by 97.0%.

Annual dynamics of product's exports from Tanzania in kind, 2017-2020, t

From 2017 to 2020, Burundi, Russia, and Rwanda formed the core export destinations in kind, accounting for 92.5% of total flows. Burundi led with 60.9% of exports, followed by Russia at 19.0%, and Rwanda at 12.6%.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Tanzania in kind, 2017-2020

Exports in value, K $ US

The data shows irregular changes, pointing to a volatile market environment. Exports in value terms peaked in 2018 at 1 061 thousand US dollars and hit a low in 2019 at 4 thousand US dollars, reflecting a 261-fold gap. In 2020, cross-border shipments registered 69 thousand US dollars, a sharp increase of 1,610.2% compared to 2019. The largest decline was in 2019 at 99.6%, while the largest increase occurred in 2018, rising by 3,319.9%.

Annual dynamics of product's exports from Tanzania in value, 2017-2020, K $ US

During 2017-2020, Oman and Russia were the dominant destinations for exports in value terms, together accounting for 91.1% of total flows, with the remainder going to other markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Tanzania in value, 2017-2020

Imports coconut, palm kernel or babassu oil and fractions to Tanzania

Imports in kind, t

Market behavior was characterized by volatility in these years. Imports reached their lowest point in 2018 at 348.1 tonnes and peaked in 2020 at 889.3 tonnes, showing a 2.6-fold difference. In 2020, Tanzania's imports amounted to 889.3 tonnes, indicating a steep increase of 46.1% compared to the previous year. The largest decline was in 2018 at 44.8%, while the largest increase occurred in 2019, rising by 74.9%.

Annual dynamics of product's imports to Tanzania in kind, 2017-2020, t

From 2017 to 2020, Indonesia, India, and Malaysia stood out as the main sources for imports in kind, together representing 73.4% of total flows. Indonesia led with 34.0%, followed by India at 26.4%, and Malaysia at 13.0%.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Tanzania in kind, 2017-2020

Imports in value, K $ US

After a two-year decrease, Tanzania's imports of coconut, palm kernel, or babassu oil and fractions increased in 2020, reaching 629 thousand US dollars, up by 56.6% compared to the previous year. Over the 2017-2020 period, imports decreased by 25.4%, equating to an annualized rate of 9.3%. The lowest value was recorded in 2019 at 402 thousand US dollars, with the largest decline in 2018 at 36.9%.

Annual dynamics of product's imports to Tanzania in value, 2017-2020, K $ US

From 2017 to 2020, Indonesia, India, and Malaysia headed the ranking of suppliers in value terms, with a combined share of 68.3% of total imports. Indonesia accounted for 32.9%, India for 17.9%, and Malaysia for 17.5%.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Tanzania in value, 2017-2020