About 70,000 farmers in the Lango sub region will benefit as the Mukwano Group moves to increase the amount of cooking oil extracted from soya beans.
The project, run under the Ayago Agro Industries - a subsidiary of the Mukwano Group in northern Uganda, promotes value addition as well as exploiting other crops used in the manufacture of edible oil.
The initiative will also provide a market for soya beans as well as sunflower, maize and cotton among others.
Mr Robert Adwek, the Ayago Agro Industries operations manager, said in an interview early this week that farmers had started direct supplies for soya beans.
Soya bean growing becomes one of the crops that the Mukwano Group is investing in with the view of making it a tradition crop from which vegetable oil is extracted.
Mr Gideon Badagawa, the Private Sector Foundation Uganda executive director, welcomed the new development, urging the private sector to put more emphasis on value addition.
Mr Tony Gadhoke, the Mukwano Group chief executive officer, said the decision to go into soya bean processing was informed by currently good supply of soya beans in the Lango sub region as well as the need to add other varieties of edible oil.