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Govt Invests Sh7b To Foster Vegetable Oil Production

by Jacquiline Nakandi
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By Herbert Musoke

The Government, through the National Agricultural Advisory Services (NAADS), has set aside sh7b to promote vegetable oil production.

Statistics from the agriculture ministry indicate that the national annual vegetable oil consumption in Uganda is 480 million tonnes, with only 80,000 tonnes produced locally and the rest imported.

It is on this basis that, in the current financial year, the Government allocated sh5b to procure sunflower seeds and sh2b to procure soya bean seeds that will be distributed to farmers.

Fifty-six co-operatives for smallholder farmers and 14 large-scale farmers will receive the sunflower seeds for this planting season.

Currently, the raw materials for domestic oil production, sunflower and soya seeds, are less than 20%. More than 80% of the raw materials for oil-based products, such as cooking oil and soap ingredients, are imported.

Reports by the agriculture ministry indicate that, annually, $370m (about sh1.14 trillion) is drained from the economy to import crude palm oil, refined sunflower, soya and olive oil into the country.

Dr Charles Aben, who is in charge of crop development at NAADS, explained that the government, through NAADS, set up a project this financial year in the Acholi and Lango sub-regions to increase production of vegetable oil crops in Uganda.

The project

Under the project, NAADS distributes quality hybrid seedsto farmers on a co-funding basis.

Farmers pay 30% of the seed’s cost, while the government pays 70% of the remaining cost.

Following the onset of rains in most parts of the country, the government, through NAADS, has started distributing oil seeds, specifically sunflower seeds, to farmers in northern Uganda.

The co-operatives receiving sunflower seeds include Agali Farmers’ Co-operative Society in Lira district, Alito Joint Farmers’ Co-operative Society Ltd. in Kole district and Ipala Co-operative in Dokolo district.

The hybrid sunflower seeds distributed are of good quality and high-yielding. The varieties distributed include Hysun 33, PAN 7057 and Aguara 6.

One acre requires 2kg of sunflower seeds that are projected to produce a harvest of 1,000kg. Aben said the soya bean seeds will be distributed in March next year, at the start of the first season.

Project goal

“The aim of the intervention is to produce at least 40 million tonnes of oil per year locally. The focus is put on increasing production of sunflower and soya beans in the Acholi and Lango sub-regions, working with farmers in co-operatives and large-scale farmers,” he added.

Aben remarked that the two oil crops have a maturity period of 90 days, with a substantial quantity of oil yield because sunflower has an estimated oil content of about 30% and soya bean about 15%.

“Vegetable oil seed is one of the key products not only for cooking, but also for industrial purposes like the manufacturing of soap. Also, the sunflower cake and soybean cake as by-products are used for a number of other value-added products, especially animal feeds, thus significantly contributing to household incomes,” he said.

Aben explained that Uganda has been producing only 20% of its vegetable oil demand, thus the need for the government to intervene and ensure increased production to meet the domestic demand.

The potential

According to the agriculture ministry, the vegetable oil industry in Uganda has 104 factories, with an installed capacity of over 3,000 tonnes per day, therefore requiring about 1.1 billion kilogrammes of grains at full capacity annually or 555 million kilogrammes at half capacity.

Denis Okwera, the executive secretary of Erute North County Oil Seed Farmers’ Cooperative Society Ltd. in Lira, said soya and sunflower are the co-operative’s major crops, but that seed prices have been challenging, with quality seed for a kilogramme from the market going for between sh75,000 and sh110,000.

“This makes farming non-profitable as the cost of production becomes high. But now, according to the arrangement, we are to pay sh21,000 for a kilogramme of quality hybrid seeds, which yield more and fetch higher prices on the market,” he said.

Okwera explained that the co-operative that started in 2019 now has 2,646 fully-subscribed members from the sub-counties of Ogur, Agweng, Aromo, Ayami and Agweng town council, with 17,822 acres of land under use.

Aben remarked that working with small-scale and large-scale farmers in an organised manner is the best way to go if Uganda is to substantively increase agricultural production.

Key points

  • 56 farmer co-operatives and 14 large-scale farmers will receive the sunflower seeds.
  • Reports indicate that, annually, about sh1.14 trillion is drained from the economy to import crude palm oil, refined sunflower, soya and olive oil into the country.
  • The government, through NAADS, set up a project in the Acholi and Lango sub-regions to increase production of vegetable oil crops.

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