The 969- hectare farm is projected to play key role in boosting production of edible oil in the country.
ASA's Production Manager, Benjamin Mfupe said the agency will also initiate another production farm in Kilosa, Morogoro.
"Our plan is to ensure we are producing abundant palm oil seedlings in a bid to sensitize more farmers to cultivate the crucial economic crop," he expressed.
Tanzania stands among countries within the continent with a major challenge of shortage of production and availability of edible oil.
As per the available statistics, the country annually spends 675bn/- to import between 400,000 and 570,000 tonnes of edible oil.
Moreover, in effort to improve the situation, recently, the agency supplied 200 seedlings of palm oil to farmers in Kasulu District, Kigoma Region to revive cultivation of the cash crop.
Prime Minister Kassim Majaliwa had directed all agricultural institutions in the country to invest on production of hybrid seeds of edible oil producing crops.
"We have also opened a vast project for the raising of pre-germinated palm oil seeds at Bugaga seed farm in Kigoma Region," Mfupe added.
To add up the production muscle, the Tanzania Agricultural Research Institute (TARI) launched a special center in Kigoma region, christened (TARI-Kihinga).
The regions that support cultivation of palm oil in Tanzania include Kigoma, Morogoro, Tanga, Coastal region, Mtwara, Mbeya, Mpanda, Rukwa, Lindi, Geita, Bukoba (Karagwe) and Tabora.
Mbeya, Tabora and Coast are leading for having large plantations of palm oil.