Uganda embarks on initiatives to revive declining edible oil production
Workers package edible oil at the Bidco plant. Before establishing the plant, first create a network of farmers who will be supplying you with seed to keep your plant running. PHOTO BY DOROTHY NAKAWEESI
What you need to know:
- The Ministry of Local Government (MoLG) has already embarked on the development of engineering designs for road construction and is collecting data through monitoring and evaluation processes from local communities to gain insights into market access challenges.
Uganda has initiated the rehabilitation of key access routes to oilseed projects in 81 locations in an effort to bolster its diminishing edible oil exports.
The nation is exploring strategies to revitalise its dwindling export earnings from edible fats and oils, which fell from Shs1.05 trillion in the same period last year to Shs338.2 billion in July 2023.
Uganda has been grappling with the production of this highly sought-after product, with a surge in global demand last year exacerbated by a conflict in Ukraine, one of the world's leading vegetable oil producers. This conflict disrupted supply chains and inflated prices in the local market.
The country currently satisfies less than 40 percent of the demand and is striving to enhance its output by rejuvenating oilseed projects in various districts across the nation, incorporating value addition, and upgrading transportation links to market centers.
The Ministry of Local Government (MoLG) has already embarked on the development of engineering designs for road construction and is collecting data through monitoring and evaluation processes from local communities to gain insights into market access challenges.
With an investment of Shs240 billion, this initiative encompasses 81 districts and aims to upgrade approximately 2,500 kilometers of community access roads across six hubs: West-Nile, Gulu, Lira, Eastern, Mid-Western, and Karamoja. It also intends to impart engineering design expertise to local government staff, equipping them to oversee forthcoming road projects in their respective Local Governments.
Dr Samuel Mugasi, the Executive Director of the National Agricultural Advisory Services (NAADs), expressed concerns to Monitor in March 2023, highlighting the shortage of oilseeds in the country and the difficulties in importing edible oil due to high domestic demand.
Uganda produces 80,000 metric tons of vegetable oil annually, while official data indicates a requirement of 410,000 metric tons of vegetable oil to meet domestic demand.
Despite Uganda's trade agreements with the European Union, the United States under the African Growth and Opportunity Act (AGOA), and China, which feature favorable terms like low tariffs and quotas for premium oilseed exports, local oilseed farmers continue to grapple with issues such as poor seed quality, low yields, and reduced oil content.
Analysts point out that smallholder farmers are the hardest hit due to limited resources. Hybrid seeds that offer higher yields come with increased costs and often need to be imported from countries like South Africa or Kenya.
The National Oilseeds Project (NOSP), one of the government's initiatives, supports oilseed farmers by promoting value addition and infrastructure development, including the construction of Community Access Roads.
Under a seven-year plan extending until July 11, 2028, the Ministry of Agriculture and Fisheries and the MoLG are collaborating on a Shs597.34 billion investment to bolster the oilseeds value chain.
Examples of oilseeds include sunflowers, soybeans, simsim, and groundnuts.
The project focuses on augmenting the production and productivity of oilseeds and their by-products, particularly oil cake, through efficient input utiliSation, mechaniSation, and private sector-led expansion.
It also aims to empower smallholders, enabling them to compete effectively in the sector, while enhancing access to credit within the industry.
The project, under the stewardship of Mr Christopher Gumisiriza, pledges to support farmers by providing them with improved seeds and technologies that can elevate the value of oilseed and vegetable oil production.
Mr Yassin Ssendawula, the Project Coordinator from the Ministry of Local Government, said, “NOSP will also engage in research and development support to create new and improved oilseed varieties in collaboration with the National Agricultural Research Organisation and Makerere University.”
