Uganda's Oilseed Processing Sector Struggles with Raw Material Shortage

Uganda's oilseed processing sector is experiencing rapid growth, but it's facing a significant challenge - a shortage of raw materials. Processors in the country are struggling to secure sufficient volumes of soybeans and groundnuts needed to fully utilize their capacity.

The shortage is affecting the production of edible oil, animal feed, and groundnut paste. According to AgriNet, a company based in Tororo District, it needs around 1,440 tons of oilseeds per year to operate at full capacity. However, over the past year, its purchases only increased from 120 tons to 240 tons.

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