This paper explores factors that constrain the flow of innovation ideas among downstream actors in the food value chain in Tanzania. Prior focus was on the improvement of products, but the influence of downstream actors has received little attention from the researchers in Africa. Qualitative method was deemed to be adequate and advantageous because the study was on understanding the challenges of innovation flow among downstream actors in the food value chain in Tanzania. Food suppliers were selected from international or local retailers using contact information of the processers provided on the packaging. The empirical findings of this study indicate that trade credit, government requirements, counterfeit products, consumers’ preference and lack of skilled staff limit the flow of innovation in the food value chain in Tanzania.