Tag Archives: agribusiness

Govt. of Uganda, Do unto Rice what you did for Dairy


Uganda is a naturally gifted agricultural country. When you see the volumes of production under the largely subsistence approach that characterises our agriculture, the potential is immense. One sector whose potential has been proven is the Dairy Sector. It is therefore a pity that the successes registered on that journey have not been replicated for other agricultural sub-sectors.

In a this very well thought out article, Hon. Edward Baliddawa shares an opinion as to why Uganda needs to be deliberate about rice growing and it is within the same vein that I am reaffirming his point of view to show how there has either been negligence or a carefully crafted plan not to empower farmers in other sectors.

Dairy

Milk production in the country experienced a nose dive in the 1970s all the way through the 1980s. We relied alot on imports especially of milk products like powder milk, cheese among others. The Dairy Corporation used to collect and process 20 million litres of milk per annum in 1972 but this dropped to an all time low of less than half a million litres in 1983.

When the Government came up with the Diary Master Plan of 1993, it was a key turning point closely followed by the enactment of the Dairy Industry Act, 1998. As a result of these interventions, the industry monopoly enjoyed by the Dairy Corporation was removed, allowing other private players to venture into processing.

The Dairy production in Uganda is dominated by small scale dairy farmers who contribute 80% to the overall milk production in the nation followed by 20.0% from the large scale dairy farms. Their production is mainly based on low input traditional pasture production systems making the country one of the few low cost producers in the world.

Liberalisation of the sector has seen annual production grow from 9.3 million litres in 1990 to 2.81 Billion litres in 2021, just 200 Million litres shy of the anticipated 3 Billion litres target. This shows the high prospects the sector holds.

Today, numerous value added products from milk are exported to markets as far as Europe, Asia and the Americas. Thanks to the focused commitment to revamp the dairy industry in Uganda.

Rice

In Uganda’s Agricultural Strategic Plan (ASSP) after cotton, coffee and maize, rice is ranked 4th as a strategic crop for improving household food and income security in Uganda. While, in terms of production, it is the second most important cereal after maize.
Just like Dairy farming, rice is grown mainly by smallholder farmers strewn across in Eastern, Northern and selected parts of Western Uganda.

Tending to a rice garden in the Doho Rice Scheme, Butaleja District


Despite having a production of 350,000MT of rice, Uganda remains a net importer. While we have a sizeable acreage of land under rice cultivation, our productivity per hectare pales in comparison with the immediate neighbors. As a country, our climatic conditions are favourable for rice growing and these among others include;

  • There is readily available fertile land
  • The two rainfall seasons that allow for the production of two crop cycles annually
  • Decent average annual rainfall averaging 1,200mm/year
  • Ideal temperature ranges

The challenges faced in the rice sub-sector are common knowledge and evolve around;

  • Over reliance on rainfed agriculture hence exposing rice farming to risks of drought
  • Limited access by the large small holder farmers community to improved seeds
  • Limited use of proper agronomic practices mainly due to lack of knowledge.
  • Poor post-harvest handling leading to low grain quality thereby lowering the potential income and limiting market access
  • Limited Mechanisation
  • Poor Supply Chain infrastructure like roads, proper transport for produce, warehouses etc
  • Inadequate access to finance with farmers paying upto 100% interest through the informal money lenders.

It should be possible to propel the rice sub sector to the next level and turn Uganda into a net exporter of rice within a decade if only commitment can be shown in addressing the already known pitfalls.

The opportunities should also be another highly motivating factor and these include;

  • The local and international demand for rice and its byproducts is growing steadily
  • Rice enterprises are more profitable at the various levels of the value chain compared to other cereals like maize, sorghum and finger millet.
  • There are relatively high gross margins across all stages of the value chain therefore making it easier to maximise returns
  • The rice byproducts market is still highly undeveloped.

Measures have been undertaken to promote the growth of the rice sub-sector but either they are being implemented in a haphazard or half hearted way.

You wake up one morning only to hear drums sounding for the importation of tax free rice with someone blaming inadequate production and the poor quality of locally produced rice as a reason for allowing in the tax free imports. The same team of minds worked so hard over the decades to ensure that the quantities and quality of dairy milk produced in western Uganda improved immensely including the mindset change that led the pastoralists settling down.

What was done for the dairy sub-sector can be done in the rice sub-sector by;

  • Encouraging the smallholder farmers to associate in cooperatives and benefit from scale
  • Setting up appropriate infrastructure in the rice growing areas to make produce transportation much easier
  • Setting up warehouses and encouraging their use
  • Promoting investment into value addition initiatives
  • Enforcing standards, among others.

It is therefore prudent that we use our success stories to uplift other sectors of the economy as opposed to addressing each with a silo approach. This therefore is a reminder call to the Ministry of Agriculture to handle all other key agriculture sub-sectors with the kind of attention that the Dairy Sub-sector got. Only then can we see a nationwide impact of progress reaching the bottom of the pyramid.

James Wire
Business & Technology Consultant
Twitter: @wirejames
Blog: https://wirejames.com

CURAD, Where your Agribusiness Value Addition dream is realised


Agriculture is steadily gaining prominence as a key investment sector in Uganda. Initially left for the despised peasantry in the rural areas, the fast growing urbanisation trend is demanding that more food be availed in the right form at the right time and with the right quality.

This has led to a growth in the interest expressed in value addition. For the uninitiated, Value Addition simply implies the transformation of a product from its original state to a more valuable state. Take the example of Milk being transformed to Cheese, Irish Potatoes transformed into Crisps, Maize transformed into flour among others.

With the increasing urbanisation, it implies a growing non agricultural workforce that still relies on feeding off agricultural produce. Enterprising individuals have now taken advantage of the supply gap to package food products appropriately for this elite market.

In 2009 when I first ventured into this value addition space with my wife, we faced a lot of hurdles and they were largely rotating around the processing of the produce. Not only was it lack of appropriate knowledge but also the affordability of the machinery required.

This took us on a longer than necessary learning curve to achieve our dream. While there existed a Government supported incubation facility, it just did not suit us due to the many hurdles it erected that simply pushed away the small producers like us.

We however soldiered on through a brutal learning and investment process to eventually get to our current stable operations.

However, recently I picked interest in establishing what an organisation whose name had been on my radar for a long time was all about. That organisation is CURAD. The Consortium for enhancing University Responsiveness to Agribusiness Development Ltd (CURAD) that I learnt is an innovative autonomous agribusiness incubator established by Makerere University, National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE) and National Agricultural Research Organization (NARO).

A visit to the CURAD facility at Namanve Industrial area was very revelational. I stumbled across a facility that I can authoritatively state that it is a facility that offloads an agribusiness of the initial equipment and technical hurdles associated with processing and enables a business to focus on acquisition of raw material as well as market access and trade.

Food processing to acceptable standards is not a walk into the park for any business. It involves lots of investment in machinery, human labour and compliance requirements. However, if that headache is removed from an entrepreneur and they are left to focus on raw material acquisition and market access, there is likely to be a lot of output registered by any Small and Medium business enterprise.

Dealing with them is as simple as delivering your raw material, say in this case irish potatoes. They get into the facility, are cleaned (thoroughly), sliced by machines, taken through a series of machine powered steps ending up with the ready to pack crisps that eventually go through an automated packing machine. Isn’t this cool?

They have a vast array of machinery from Slicers, cleaners, drier, cold storage, vacuum sealers, packaging among many others. These guys are the real deal.

All one needs to do is register with the facility and then pay a fee based on the kind of work you expect them to do for you on a per consignment basis.


Some of the machinery at the facility is as seen in the slideshow below.

With such a facility in existence, it gives one no reason not to pursue their Agribusiness dream especially one that entails Value Addition. If you have been intrigued by this information, you can always check out CURAD Online for further details.

A visit to their facility is one you will never live to regret.

James Wire
Agribusiness & Technology Consultant
Twitter: @wirejames