Business 25 September 2026 Daily Monitor (Uganda)
Uganda's Oilseed Processors Grapple with Severe Raw Material Shortages
Uganda's booming oilseed processing industry is facing a significant challenge as processors struggle to secure adequate supplies of groundnuts and soybeans. This shortage is impacting the production of essential goods like cooking oil, animal feed, and groundnut paste. Source: https://www.monitor.co.ug/uganda/news/national/uganda-s-oilseed-processors-face-growing-raw-material-shortage-5608506
The burgeoning oilseed processing sector in Uganda is encountering a critical bottleneck: a severe shortage of raw materials. Industry leaders report that companies are finding it increasingly difficult to procure sufficient quantities of groundnuts and soybeans to meet the escalating demand for consumer products.
This scarcity is directly affecting the production of vital commodities, including cooking oil, animal feed, and popular groundnut paste. Processors are caught between ambitious expansion plans and the stark reality of insufficient agricultural output.
AgriNet, a prominent agribusiness firm located in Tororo District, exemplifies the challenges faced by the sector. The company requires approximately 1,444 tonnes of oilseeds annually to operate at its maximum capacity. However, over the past year, AgriNet has only managed to increase its purchases from 120 tonnes to a mere 240 tonnes, highlighting the significant gap between supply and demand.
Experts attribute this crisis to a combination of factors, including poor crop yields and substantial post-harvest losses. These issues hinder farmers’ ability to supply the quantities needed by the processing industry, creating a ripple effect throughout the value chain. The situation threatens the continued growth and stability of Uganda’s oilseed processing sector.