IFAD designed this project in response to a Government request for support in developing national vegetable oil production to decrease the country’s dependence on imported oil. While providing a readily available source of vegetable oil and improving both health standards and food intake, domestic production also generates employment and helps increase smallholder farmer incomes.

The project contributed to the establishment of a Vegetable Oil Development Fund for investment in production and cooperated with the Government to create the Vegetable Oil Development Council, a consultative body. The Vegetable Oil Development Fund supported vegetable oil production in general and helped local institutions build up their capacity to coordinate and conduct research, promote further investments and development, and implement measures for natural resources management.

Growth in traditional vegetable oil production has stimulated private development, as demonstrated by the increased number of mills in the northern part of the country, from six at project start-up to more than 30 today. This is the first IFAD-funded project to have attracted substantial investment from a private-sector partner. With the collaboration of that partner, oil palm production has been introduced to Uganda and a modern, environmentally-friendly palm oil built within the country.

The project encouraged participating farmers and farmers’ groups to put increased earnings from their productive activities into savings. As a result, savings and credit cooperatives have been established and now finance investments in improvements and in farmer group activities.

The project has also stimulated development of the national research capacity, particularly for sunflower production, and, through its work with the Uganda National Bureau of Standards, has introduced food safety standards for traditional village-level processing. As a result of the project, household oil consumption in the production areas has increased from 2.3 kg per capita in 1998 to about 6 kg today, which is close to the 7 kg considered adequate for nutrition. IFAD took over direct supervision of the project in December 2008.
 

Source: IFAD