Before 1968, Ugandan farmers depended on their saved seed and distributed it farmer to farmer. A formal seed system was initiated in that year under the Ministry of Agriculture through an agency called the Uganda Seed Project, established with the release of two maize varieties (Western Queen and White Star). The research component was also under the ministry. The government of Uganda therefore managed and controlled the whole sector. In 1996, the seed industry was liberalized, indigenous seed companies emerged, and multi-national seed companies were attracted. But indigenous seed companies face many problems. They depend entirely on public materials from the National Agricultural Research Organization (NARO). Investment in promotion thus becomes limited since competition is fierce and unethical. Non-governmental and relief agencies like the Food and Agriculture Organization (FAO) and World Vision buy seed and sometimes supply it free to farmers who would have bought seed. Their activities have had a repressive effect on the emergence of a vibrant commercialized and private-led sector. This has led to loss of market and some seed stockists have had to close their business, leaving seed companies counting losses. A weak seed regulatory system has not helped matters either. Unless the relief agencies change their methods and the national seed certification services are strengthened and made fully independent, it will take sometime before companies break even.

In a bid to improve sales by strengthening their business, the companies sought to identify customers’ needs with an aim of satisfying their demands. Those needs were inclined towards income generation and commercialization, and this information was passed on to researchers for their action. Unfortunately, research could not cope with the demand, which has greatly curtailed development of appropriate materials for the market. Thus the seed companies have deemed it necessary to establish their own research and development components with a focus on human resource development. But the absence of intellectual property rights implies that anybody can multiply and distribute seed. This has pushed up maintenance costs, leading to poor returns to investment in such seed.