Advertise
Uganda's oilseed processing industry is expanding at a pace that domestic agricultural production cannot match, leaving manufacturers struggling to source sufficient soybeans and groundnuts to operate at full capacity.
The widening gap between processing capability and raw material availability is already disrupting output of edible oil, animal feed, and groundnut paste. As consumer demand rises, processors report an increasingly inadequate flow of supply from local growers.
The situation is exemplified by AgriNet, a processor based in Tororo District. The company requires approximately 1,440 tons of oilseeds annually to run at full capacity, yet over the past twelve months it managed to raise its purchases only from 120 tons to 240 tons.
In practical terms, AgriNet's actual procurement covers just 17 percent of its yearly raw material requirements. The shortfall between installed processing capacity and the oilseeds arriving at the plant is curbing the company's ability to scale up production.
Industry observers attribute the bottleneck primarily to low crop yields on farms and significant post-harvest losses. Unless soybean and groundnut output increases materially, raw material constraints are expected to keep constraining the development of Uganda's edible oil and animal feed sectors.
Source: UkrAgroConsult