Fortification of Vegetable oil and Sugar with Vitamin A in Uganda

14,000
12,000
11,797
10,000
SITC2-43: Animal or vegetable oils and fats, processed
Thousands of US$
8,000
6,000
4,000
Average Annual Growth Rates: SITC2-43: 66%
4,080
2,457
7,285
2,000
1,561
-
2002 2003 2004 2005 2006
Figure 4.2 Evolution of the growing value of Ugandan export of oils and fats. Source:
Elaboration of data from UBOS 2008, Table 4.2.1, page 195. Based on total national output.
B. The Vegetable Oil and Fat Industry of Uganda
In 2007, Uganda imported 285 million tons of vegetable oil; 99.6 percent of the imported
oil consisted of crude or degummed palm oil, the base input into most of the refined
vegetable oil and fat produced in Uganda. Data on the volume, value, and source of
vegetable oil imports is presented in Table 4.1. 8
As Table 4.1 shows, most of the palm oil imported by Uganda comes from Malaysia (or
from Malaysia via Singapore) and is purchased by Mukwano and BIDCO. BIDCO’s
entire production line—comprised of four vegetable oil brands (Ufuta, Golden Fry,
Kornogold, and Fortune) and four vegetable fat brands (Kimbo, Chipsy, Chipo, and
Cowboy)—is based exclusively on imported palm oil. Most of Mukwano’s raw material
is also Malaysian palm oil, although it also uses some sunflower and cottonseed oils
derived from crops grown in Uganda. Mukwano has four brands Three Star, Mukwano,
Roki, and Nice Fry. This last brand is sold as a high end, pure sunflower oil product that
is not fortified with vitamin A. 9
Both Mukwano and BIDCO produce vegetable oil-based cooking fat in addition to
cooking oil, although in both cases the fat is of much lesser commercial significance.
Ninety-five percent of Mukwano’s output is vegetable oil, with the remainder comprised
of fat. BIDCO’s proportionate shares are about 85 and 15 percent, respectively.
8 This information was obtained from the Uganda Revenue Authority (URA), and was assembled by URA
at the request of A2Z.
9 The sunflower product has a container machine that produces only transparent plastic bottles and thus
would not protect a vitamin A – fortified product from direct light. Nice Fry represents a small share of
Mukwano’s oil products.
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