Tag Archives: value addition

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

Grains Processing greatly improving in Uganda


Uganda is known for its competitive edge in agriculture. With 70% of the population being engaged in the agriculture industry, one cannot hide away from the fact that there is a lot of money to be made in this regard.

While growing up, I always frequented mills in order to process the maize and sometimes millet that my parents grew. The typical Ugandan mill is a rickety housed old and cranky machine that blows out dust at will leaving anyone in the vicinity with a ghostly look.

I was however taken by surprise recently when I visited Arise and Shine Maize Millers. Tucked away in the Kampala suburb of Kawempe is an ultra modern computerised mill of its own kind. Having specialised in Maize milling, the proprietors have taken time to grow their niche from the very rudimentary processing facilities that are typical of the Ugandan Food Processing industry. 

old_mill

The iron sheet structure old mill (Photo credit – Nabwiso Films)

Having operated for a number of years in a rudimentary fashion, it dawned upon them that there was a need to upgrade their operations to suit the changing times. They had some challenges that needed addressing as well as opportunities to take advantage of like the export market.

The primary challenges were, cleaning, drying, storage and safe food handling. Mr. Matia Mubangizi the Investment and Business Development Manager at the facility noted that, “the biggest challenge in the grains business is storage. Moisture content and impurities cause a lot of loss for the grain dealers and they have to be dealt with.

Armed with this in mind, the company took on the services of a consultant to help address the challenges. This consultant came on board courtesy of support from the Competitive and Enterprise Development Project (CEDP), a project under the Matching Grant Facility, funded by the Government of Uganda and the World Bank.

As a result of the consulting support, the company acquired new machinery with intent to modernise all its operations. They then applied for a Matching Grant Facility entitling them to a 50% reimbursement of expenses towards equipment installation.

This machinery upgrade helped improve the handling of grains thereby reducing aflatoxin presence which is a key impediment for the export market. The deployed equipment involved among others;

  • A weigh bridge

  • A 20 – 25 tonnes per hour drier

  • A cleaner with an hourly capacity of 25 Metric Tonnes

  • A 300 Metric Tonnes storage facility

  • Packaging lines

weigh_bridge

The new weigh bridge (Photo credit – Nabwiso Films)

During my visit to the mill, I witnessed first hand the delivery of maize and how dirty it can be upon arrival. The problem seems to start with the farmers who do so little in terms of proper post harvest handling. As the bags were being emptied, one could see maize cobs, leaves, stones and all sorts of chaff mixed up in the maize. This implies that if the maize miller buys the declared kilos without cleaning, a loss awaits them. It’s on record that Kenya has rejected maize from Uganda on quality grounds.

maize_delivery

Maize Delivery in Progress (Photo credit – Nabwiso Films)

With the new machinery, the maize is taken through an automated cleaner that removes all foreign matter. Once the moisture content of the maize is found to be insufficient, it’s then redirected into a dryer that dries it to the recommended level. This has tremendously increased the product quality of the mill.

part_of_mill

Storage Facilities for the newly installed mill (Photo credit – Nabwiso Films)

A comparison of the production matrix before and after the installation of the new mill reveals drastic progress.

Before

After

  • Used to handle 5 – 6 trucks of maize daily
  • Currently handle upto 30 trucks of maize daily
  • Used to receive 50 – 70 tons of maize daily
  • Currently receive 200 tons of maize daily
  • Supplied local market entirely
  • Currently supplying both local and foreign market

The process improvements as well as new markets have had a positive impact on the production and profitability of the mill. Aspects like automated weighing drastically reduced the turn around time of attending to each delivery truck. The export market was catalysed by the ability to produce premium products that meet international food safety standards.

On the Human Resource front, 30 graduates were invited to participate in the training during the installation of the machinery, upon completion, 11 of them were hired.

Without doubt, the story of Rise and Shine Maize Millers is worth sharing and confirms the potential Uganda has as a country in the value addition of agricultural produce.

James Wire is a Business and Technology Consultant based in Kampala, Uganda
Follow @wirejames on Twitter.
Email lunghabo [at] gmail [dot] com