Uganda’s oilseed processing is growing faster than raw material production

Uganda’s oilseed processing sector is expanding faster than domestic raw material production. Processors are finding it increasingly difficult to secure sufficient volumes of soybeans and groundnuts needed to fully utilize their capacity.

The shortage is already affecting the production of edible oil, animal feed and groundnut paste. As demand grows, processors are facing a lack of adequate supplies from local farmers.

AgriNet in Tororo District illustrates the scale of the problem. The company needs around 1.44 thsd tons of oilseeds per year to operate at full capacity, but over the past year it increased purchases only from 120 tons to 240 tons.

This means AgriNet’s actual purchases cover only around 17% of its annual raw material needs. The gap between processing capacity and oilseed supply is limiting further expansion of production.

Low crop yields and significant post-harvest losses are cited as the main causes of the shortage. Without higher soybean and groundnut production, raw material constraints are likely to continue limiting the development of Uganda’s edible oil and feed industries.

Tags: oilseeds, peanuts, Уганда, soybean