FACTORS AFFECTING THE PRODUCTION EFFICIENCY OF SUNFLOWER OIL IN LARGE PROCESSING INDUSTRIES: A CASE OF SELECTED INDUSTRIES IN SINGIDA REGION-TANZANIA

Abstract

ABSTRACT Sunflower oil is one of the most key edible oils in Tanzania, and the Singida Region serves as a leading hub for its production due to favorable climatic conditions and widespread cultivation of sunflower. Despite its potential, the sunflower oil sector continues to face production inefficiencies that limit output and competitiveness. This study examined the factors affecting sunflower oil production efficiency in large processing industries within the Singida Region of Tanzania. Specifically, it investigated the influence of technological, financial, and environmental factors on production efficiency of sunflower oil. The study targeted a sample size of 186 respondents. Out of these, 164 participants including production, finance, marketing, and quality control managers completed the questionnaires for quantitative analysis, while 14 respondents provided in-depth insights through semi-structured interviews. The quantitative data were analysed using descriptive statistics, Pearson correlation, and multiple linear regression technique whereas qualitative data were subjected to thematic content analysis. The multiple linear regression analysis confirmed that technological factors had the strongest effect on production efficiency (p = 0.000 < 0.05) implying that the effective utilization of modern technology as well as minimizing technological challenges such as machinery breakdowns and operator skill gaps, substantially improve efficiency. Financial factors also had a significant effect (p = 0.000 < 0.05), implying that access to adequate financial resources, proper planning, and cost management enable industries to maintain equipment, procure quality inputs, and manage operational expenses effectively. Similarly, environmental factors were significant (p = 0.000 < 0.05), implying that favorable climatic conditions, proper waste management, and compliance with environmental regulations enhance production efficiency while promoting sustainable practices. The study conclusively demonstrates that sunflower oil production efficiency depends on a balanced integration of technological, financial, and environmental improvements. Strengthening the adoption of modern processing technologies, ensuring reliable financial support systems, and enforcing sound environmental practices are essential steps toward achieving sustained efficiency gains. Together, these interventions provide a clear pathway for advancing productivity and promoting long-term sustainability within the sunflower oil industry.