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Fortification of Vegetable oil and Sugar with Vitamin A in Uganda

Fortification of Vegetable oil and Sugar with Vitamin A in Uganda

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The cost <strong>of</strong> vegetable <strong>oil</strong> fortification is based on data obta<strong>in</strong>ed from <strong>oil</strong> fortify<strong>in</strong>g<br />

<strong>in</strong>dustries <strong>in</strong> Ug<strong>and</strong>a. To protect proprietary <strong>in</strong>formation, the cost estimates presented<br />

<strong>and</strong> discussed here are based on a hybrid <strong>of</strong> the two companies rather than actual separate<br />

costs <strong>of</strong> each company. The two companies’ output levels <strong>and</strong> the technology they use <strong>in</strong><br />

fortify<strong>in</strong>g their products are similar. The only difference is whether the company uses a<br />

vitam<strong>in</strong> A premix/dilution or adds the vitam<strong>in</strong> A directly to the <strong>oil</strong>. The calculations<br />

assume the company:<br />

• consists <strong>of</strong> one plant<br />

• produces six batches<br />

• annually produces 50,250 metric tons <strong>of</strong> vegetable <strong>oil</strong><br />

• uses one <strong>of</strong> two ret<strong>in</strong>ol palmitate <strong>Vitam<strong>in</strong></strong> A compounds:<br />

o 1 million IU/g, for which it pays 67,849 UGX (US$40.75) per kilogram<br />

(Table 4.2) or<br />

o 1.7 million IU/g, for which it pays 111,139 UGX (US$66.75) per kilogram<br />

(Table 4.3)<br />

• uses semi-quantitative chromogenic method for quality control<br />

• the exchange rate is 1,665 UGX per US$1.00 (the rate on May 1, 2008).<br />

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