1.5 Favourable conditions for investing in Uganda?s Cotton sector Investments in the cotton sector can be located near the cotton growing areas such as Gulu, Masindi, Nebbi or Arua and where big chunks of land can also be leased to grow own seed cotton.
How does low production of cottonseed affect operations in Uganda?
Shortage of cottonseed: The low production of cotton has resulted in low utilization of the installed capacity at all the cottonseed-based processing firms. This has adversely affected the operations and profitability of these firms in Uganda (IL&FS Clusters, 2014).
How is cotton grown in Uganda?
According to Baffes (2009), cotton is grown primarily by small farms with an average size of less than 0.5 hectares. He estimates that 250,000 households are engaged in cotton production. Cotton is grown across approximately two thirds of Uganda’s land area, as shown in Annex 1.
How many people are involved in cotton production in Uganda?
The Cotton Development Organization (CDO) estimates that the cotton value chain employs a total of 2.5 million people, directly and indirectly, in the production and marketing of its primary products, such as textiles and garments, as well as its by-products, such as soap, edible oil and animal feed. 2. Cotton in Uganda 2.1. History