About the Project
Oilseed production in the Northern Region of Uganda, comprised of sunflower, soya bean, and sesame, is promoted as a smallholder cash crop. Under the right conditions, oilseeds can—like cereals—be stored to exploit higher market prices between harvests.
Oilseeds in Uganda are medium-value cash crops, with no strong market premium for quality.
Demand and production of oilseeds have been growing. Increases in production have been achieved through area expansion, not intensification through improvements in productivity. There is also increasing competition on the buyers’ side, between independent traders, agents for the industrial processors, and Farmers Group.
So, there is good potential for improvements in farmer income and inclusive economic development through oilseed Value Chain Development (VCD).
SOWI FARM FOUNDATION (U) LTD shall use all four types of intervention in VCD that use a different entry point in the market/value chain system:
(1) support to Farmers Cooperatives as a ‘push’ into the market
(2) strengthening of service and finance provision via value chain financing
(3) Market information and Business development services (BDS); a receptive private sector buyer as a market ‘pull’; and a favorable business climate that provides the necessary institutions.
Northern Uganda has a long history in producing oilseeds including as subsistence food crops. There are large expectations from the commercialization of oilseeds as a cash crop. The basic inclusiveness of the market is very much driven by location, with the regions such as around Lira having enough critical mass of demand from processing and trading to become commercial hotspots. The different hubs vary with regard to value chain configuration and type of oilseed crop. The Lira hub, which has the most developed oilseed value chain, attracted most VCD interventions.
Farmers in Uganda are most hit with price fluctuation during harvest by traders and Middle Men as a result of Produce Prices not set by The Government. Produce prices are determined by Demand and Supply leaving Smallholders' farmers in the Mercy of Buyers who are mostly cheats.
SOWI under SOWI FARM FOUNDATION shall, train, engage, and monitor farmers into production of the three oil seeds: crops, maize, and peanuts. The Company sets a fair market price for the farmers and buy their produce, store and wait for the market to raise and sell—and the profits gained shall be used for sustainability of the SOWI Project and the scale-up of the projects, while supporting our expanded project activities.