Services

Challenges in oils sub-sector value chain

Production: Limited accessibility and usage of productivity enhancement inputs by the majority of the producers, less than 1% using fertilizer in their production (PSFU report, 2012), limited supply of quality improved planting seeds 95% of sunflower hybrids seed being grown in the country is imported from outside Uganda (South Africa, Zimbabwe, India and France). Limited mechanization and credit is not smallholder farmers’ friendly thus most producers cannot access credit to boost production. Farmer’s ability to open more land is limited to hand labour and could be enhanced by the re-introduction of oxen in short term or mechanization in long term to increase labour productivity

Processing

There is inadequate working capital for small and medium scale processors leading to processing capacity being underutilized (45%), there is insufficient mill management and operation skills and utilities (electricity) is expensive and unreliable.

Provision of soft loan to processors plus provision of technical support to the operators and oil processing industry owners would increase productivity

Research

Insufficient variety development, low funding of national research network, limited private sector support to research institutions, limited researcher to extension and farmer linkage

Policy

Low levels of government policy implementation especially on planting seed quality assurance resulting into increase poor quality seeds in the market.

Institutions

Weak farmer organizations, weak processor organizations while financial services not attuned to farmers’ need.