It is also not clear when the research system may be ready to release new varieties. The ROR analysis clearly demonstrated that even in Uganda, with its history of political instability, the potential returns to agricultural research are excellent for many commodities, even when the high costs of physical rehabilitation, training, and extension are included. However, the generally high returns to research need to be interpreted within a broader context. The profitability of research depends on technical improvements in other subsector stages, and improved coordination between different subsector stages, e.g., input production and distribution, product marketing, and processing. For example, a high ROR to sunflower and other oilseed research depends on a sustained increase in area and production.
Farmers now limit sunflower area, complaining of low prices and the lack of markets for sunflower.
At the same time, edible oil processors in Uganda complain bitterly about the lack of raw materials. The answer to this paradox is that processing throughput is constrained by lack of materials, resulting in a serious underutilization of production capacity and high unit costs of production for oil. Processors cannot simply raise prices to cover their costs of production because of the inflow of inexpensive Kenyan oil. High costs of processing are passed back to the farmers in the form of low farmgate prices offered for oilseeds. If sunflower yields remain low, the returns to oilseed production will be unattractive compared to alternative crops and raw material availability will continue to be a constraint.