Fortification of Vegetable oil and Sugar with Vitamin A in Uganda

) Vegetable oil fortified with Retinol Palmitate 1.7 million IU/g
Assuming the price per liter of fortified vegetable oil is 3,133 UGX (US$1.88), the retail value of
all fortified vegetable oil in Uganda net of fortification costs using Retinol Palmitate 1.7 million
IU/g is:
[(3,133 UGX) x (105,000 tons) x (1,098.9 liters/ton)] – [(453,968,313 UGX) x 2] =
398,155,390 UGX
Assuming, all fortification costs were shifted onto the consumer through an increased price (i.e.,
assuming the maximum price increase scenario), it may be estimated that the maximum retail
price increase attributable to fortification is:
[(453,680,704 x 2 UGX) / {(105,000 tons) x (1,099 liters/ton)}]
= 7.86 UGX/liter
which is the equivalent of : (7.86 / 3,133) = 0.25 percent of the retail price of one liter of
vegetable oil.
Making the same assumptions as above regarding vegetable oil consumption, the average person
who purchases vegetable oil consumes 6.14 liters of oil per year and pays an additional 48 UGX
(US$0.029) per year for fortified oil (as opposed to non-fortified oil, other things being equal).
Given an average household size of 5.2 persons, the average Ugandan household that purchases
vegetable oil pays an estimated additional 250 UGX (US$0.150) per year for fortified oil, or 48
UGX (US$0.029) per year per person.
The cost differences from using different vitamin A compounds are not large for individual
plants, for the private vegetable oil industry as a whole, or for consumers.
33