AgriExpert Guide

agri

Guide

Access AgriMarket Prices on MIBs Learn to manage and market a profitable Agro-Vet-Input Retail Shop Steps for establishing a Maize Milling Business Dos and Don’ts of Contract Farming How to start and expand a VSLA

sponsors

Forum: What should be done to encourage participation of Ugandan Youths in Commercial Agriculture?

aBi TRUST

AgaSha Where businesses grow

Other banks talk about growing their interests. We’re more interested in

WHAT YOU GROW. The agricultural businesses that bank with us value expertise tailored to their way of working, from specialists who put words into action. This is how we’re moving your business forward. For more information on agriculture finance, visit your local branch or contact us at: Stanbic Bank - Agriculture Financing 9th Floor, Short Tower, 17 Hannington Road, Crested Towers, P.O Box 7131, Kampala.

Tel +256 417 154 000/446/210/654/449/886

ENJOY IMPECCABLE SERVICE ON ETHIOPIAN’S

Contents AgroMarketing Accessing prices through AgriNet Market Information Boards........................................ 5 AgriFinancing How to Start and Expand Village Savings and Loans Associations (VSLAs).............. 11 Agro-Inputs How to start, manage and market a profitable Agro-Vet-Input Retail Shop .................. 19 Environment Soil and Water Coservation in Karamoja ............... 25 Agro-Processing Establishing a Maize Milling Business ................... 31 Farming and Production Contract Farming ................................................... 37 Discussion Forum What should be done to encourage Ugandan youth participate in Commercial Agriculture .......................................... 41 AgriMarket Corner .................................................. 44

They’re looking for your NAME AND PHONE NUMBER! Agribusiness Directory readers are – ready to buy They’re looking for a supplier, where to buy from Make sure they see your Name and Phone Number Use a display advertisement for them to find you fast Book Space: +256 779 791 780

The Agribusiness Initiative (aBi) Trust is supporting agribusiness development in the private sector to achieve the objective of the Government of Uganda’s Competitiveness and Investment Climate Strategy (CICS).

The Trust is a multi-donor entity jointly founded by the Governments of Denmark and Uganda. Other Development Partners include USAID, EU, Sweden, Belgium, Netherlands Embassy, DFID and KfW.

Mission: A competitive, private sector led agriculture in Uganda

Vision: To promote private sector agribusiness development to enhance wealth creation in Uganda

Supported value chains: aBi Trust provides both financing and technical support in selected agricultural value chains of maize, coffee, oilseeds, pulses, dairy, and horticulture for export. aBi Components: aBi Trust strengthens competitiveness of the agricultural and agroprocessing sectors through three interrelated components: Value Chain Development (VCD) including trade-related Sanitary and Phyto-Sanitary and Quality Management Systems (SPS/QMS), Financial Services Development (FSD) and a cross cutting Gender for Growth (G4G) Fund.

Investments: aBi Trust provides financing for agribusiness development and specific financial products for gender especially youth and women. The Financing is delivered through Financial Institutions (FIs) therefore aBi Trust does not provide direct financing.

Our Partners: Partnerships and collaboration with Farmers’ Organizations (FOs), Small and Medium Enterprises (SMEs), Financial Institutions (FIs), Business Development Service Providers, women, men and youth groups and other entities form the implementation vehicle that delivers support to agribusiness, and improved opportunities to access financial services.

Umoja House | Plot 20 Nakasero Road P.O. Box 29851, Kampala Uganda Tel: +256 (0) 312 351600 | Fax: +256 (0) 312 351620 Email: info@abitrust.com

www.abitrust.com

CEO’s Message To our esteemed readers, advertisers and business partners, Once again we at Agasha Group would like to express our heartfelt gratitude for your continued support, which is the secret behind our current rapid growth. In the 2014 Agribusiness Directory, we sought your opinion on what information you would want from an agriculture guide. It was reassuring to get your constructive feedback, within such a short time. This prototype is the result of your feedback.

As you can see, there is still plenty of room for improvement, so your feedback is still needed.

Basing on the performance of the prototype issue and your continued support, Agasha Group intends to publish Agri Experts Guide on a quarterly basis focusing on different topics. Please feel free to suggest topics that you would want us to tackle.

As part of our effort to link agriculture experts to the people who need their services, we shall be organizing open forums, where our readers, advertisers and other business partners will have an opportunity to interact with farmers and other stakeholders in the agriculture sector. It’s our hope that this approach will help the various stakeholders in the agriculture sector to acquire additional knowledge on modern farming and business management practices, join relevant networks that will help them improve their businesses.

You can now get a copy of Agribusiness Directory and AgriExperts Guide in leading bookshops such as Aristoc, Mukono and Uganda Bookshop. A user friendly online version of the Directory is also available on our website (www.agasha.com). You can also search for different companies and products in a preferred location and even edit your business contact information for the 2015 edition online.

Special thanks to ALREP/KALIP, our Platinum sponsor for the AgriExperts Guide prototype issue.

Thank you for believing in our idea, which has the potential to turn into a useful product for local and global use. We would also like to express our gratitude to our business partners and clients for taking the risk to advertise in our maiden issue. These include aBi Trust, Engineering Solutions, AgriProFocus Uganda, Global wide Publishers, Farm Engineering Industries Limited, Stanbic Bank and all our esteemed advertisers and directory subscribers.

Credit also goes to the AgaSha production and editorial team, suppliers, family and friends for the hard and innovative ideas which have made this project possible.

We look forward to working together on many other projects in future.

Thank you very much

Sharon Againe (Agronomist) CEO and Founder, Agasha Group Limited.

Editor’s Message

AgriExperts Guide is yet an information packed publication from the Agasha Group Ltd stable. The new born baby, whose maiden issue you are holding in your hands, is a direct result of your feedback about the kind of agriculture you need to improve your business.

The prototype issue features Guides, an Agri Market Corner plus Discussion Forums. A list of useful contacts is given after each guide, for further reference and networking purposes. Some of the issues tackled in the maiden issue include: AgroMarketing, AgriFinancing, Agro-Inputs, Environment, Agro-Processing, Farming and Production and Youth in Agriculture.

The editorial team welcomes criticism, suggestions and any form of feedback that can help improve this product.

Andrew Ndawula Kalema About the editor Better known as The Farming Journalist, Andrew Ndawula Kalema is one of the pioneers of agriculture journalism in Uganda. In a career spanning over two decades, on different media platforms, Andrew served in different areas of journalism reporting and editing including sports, before finally coming home to agriculture.

A practicing farmer, Andrew is the Managing Director of Talent Orchards, a mixed farm in Nakaseke. The farm operates a commercial nursery where seedlings of Bamboo, indigenous medicinal trees, including several endangered species, are propagated.

Email: akndawula@gmail.com Mob: 0700 984 963, 0772 414 047, Kampala, Uganda

Published by:

Agasha Group Limited Capital Shoppers-Nakawa P.O. Box 7133, Kampala-Uganda Mob: +256(0)779 791 780 +256(0)703 698 550 +256(0)776 791 780 Email: directoryagribusiness@gmail.com

Web: www.agasha.com

Disclaimer Opinions expressed herein represent views of the authors and do not necessarily reflect views of Agasha Group Limited. The Company does not accept responsibility for misleading or unethical advertising or errors/omissions/inaccuracies occurring in this Issue.

Copyright Š 2014 by Agasha Group Limited All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, graphically, electronically or mechanically, including photocopying, recording, taping, scanning, web distribution or information storage and retrieval system, without the written permission of Agasha Group Limited.

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Join our Innovation Communities to create new solutions to existing problems together with relevant stakeholder groups. We work on topics such as; farming as a business, market information, access to financial services, seeds business and food security.

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Agri-ProFocus is a unique network that links br e ok er ur different stakeholders in theltagri-business sector. in e r g u u c t Members are farmers’ organisations, traders,ul input c suppliers, processors and exporters, national and br e o international development agencies, research kerin ur t l g u institutes and governmentc agencies.

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Platinum Sponsor Profile Northern Uganda Agricultural Livelihoods Recovery Programme (ALREP) is a € 20 million Government

Information Boards managed by local entrepreneurs; increases farmers’ access to inputs by supporting local agricultural and veterinary input supply shops; supports local traders and processors with infrastructure and machinery; improves the access to rural finance; and strengthens the district production departments.

of Uganda programme funded by the European Union. ALREP’s aim is to enable the war affected population of northern Uganda to engage in productive and profitable agricultural and agri-business activities so as to ensure food security and increased household income. ALREP is operational in 15 districts of Acholi, Lango and Teso Sub-Regions, and covers 100 sub counties. It is executed by a Programme Management Unit, under the supervision of the Office of the Prime Minister.

For more information National Programme Coordinator ALREP Office of Prime Minister 8th Floor, Postel Building, Yusuf Lule Road P.O. Box 5244, Kampala Tel: +256 0414 25 83 72

ALREP trains farmers in modern farming techniques; builds productive infrastructure, such as roads, markets, stores and water facilities; enhances the availability of upto-date market prices and trends in rural areas through the establishment of Market

Programme Coordinator ALREP ALREP Programme Office Plot 1, Churchill Road P.O. Box 718, Gulu Tel: +256 471 43 21 12

www.opm.nulep.org Karamoja Livelihoods Programme (KALIP) is a €15 million Government

peace and security as means for productive activities in previously insecure areas of Karamoja region.

of Uganda programme funded by the European Union. KALIP’s aim is to protect and enhance food security and incomes of the agro pastoral communities and support them to build a productive asset base. KALIP is operational inthe 7 districts of Karamoja. It is executed by a Programme Management Unit, under the supervision of the Office of the Prime Minister.

For more information National Programme Coordinator KALIP Office of Prime Minister 8th Floor, Postel Building, Yusuf Lule Road P.O. Box 5244, Kampala Tel: +256 0414 25 83 72 Programme Coordinator KALIP KALIP Programme Office Plot 2, Adyebo Road P.O. Box 61, Moroto Tel: +256 751063150

KALIP trains farmers in modern farming techniques; builds productive infrastructure, such as roads, stores and water facilities; strengthens the district production departments and enhances viii

THE REPUBLIC OF UGANDA

Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP) and the Karamoja Livelihoods Programme (KALIP) are implemented by the Government of Uganda and financed by the 10th European Development Fund.

Contributors

Alastair Taylor

Mbayo Michael

Alastair first came to Uganda in 1989 to work in Arua with a church administered agricultural development programme. He then moved to Kampala where he established the Sustainable Agriculture Training Programme (SATP) with Kulika Trust, the National Organic Agricultural Movement of Uganda (NOGAMU) and brought to a successful conclusion the Swedish sponsored Export Promotion of Organic Products from Africa (EPOPA) programme which linked many 1000s of smallholder farmers to Ugandan based exporters and the global market for organic products. In 2010 he shifted to Karamoja and for the last four years has been the technical advisor to the GoU, EU supported, Karamoja Livelihoods Programme (KALIP).

Karamoja Livelihoods Programme (KALIP) Tel: 0414 258 372. Mob: 0772 485 206 Email: a.taylor@opm.nulep.org Michael holds a Master’s degree in Development Studies and Bsc. in Agriculture (Economics). He has been working with Uganda National Agro-Input Dealers Association (UNADA) for the last five years where he participated in the implementation of Agricultural Livelihoods Recovery Programme (ALREP) as a project coordinator for training agro-input dealers. He implemented Voucher/Cash for work programmes under Restoration of Agricultural Livelihoods, Northern Uganda Component (RALNUC), a Danish funded project in Lango and Acholi sub regions. He has participated in different Agro-dealer development programmes through strengthening both supply and demand sides for seeds and associated agricultural inputs in the north. Additionallly, Michael has accumulated over 16 years of working experience with MAAIF, TILDA Uganda Ltd, Kibimba, AT Uganda, NAADS, ADRA Uganda and Eastern Uganda Field among other organizations.

UNADA. Tel: 0312 293 475. Mob: 0774 251 975 Email: mbayomichaeljohn@gmail.com Peter Dhamuzungu (Eng.)

Peter is the project engineer for BUDS-ALREP Match Grant programme implemented by PSFU funded

by European Union. The aim of the programme is to enhance processing capacity, quality and business performance in Acholi, Lango and Teso sub-regions. This includes building the capacity of agro-processors and produce traders through a matching grant facility.

Private Sector Foundation Uganda (PSFU) Tel: 0312 263 850. Mob: 0712314325 E-mail: pdhamuzungu@psfuganda.org.ug

Paul is the Managing Director of AgriNet Uganda Ltd which deals in providing market information services, contract farming as well as market brokering for agricultural inputs, commodities, animal feeds and services. AgriNet partnered with ALREP in establishment of Market Information Centres operated as business by the local entrepreneurs in northern Uganda.

Paul Nyende

Winfred Babirye

AgriNet Uganda Ltd. Tel: 0414 530 696. Mob: 0772 495 950 Email: pnyende@agrinetug.net

Winfred is a veterinary specialist and extensionist by profession with 14 years of experience. She owns an agro-input shop in Kampala and rears poultry on commercial scale. She is currently working as a Treasurer for UNADA in the South and Central Kampala region. Winfred also collaborates with MAAIF in trainings and meetings related to agro-input quality improvements. She is a director at National Intergrated Rural Development Initiative (NIRUDI) project that deals in marketing of agro-vet-inputs among other activities. Winfred is passionate about mentoring the youths to start up their own income generating projects in Tanzania, Congo, Rwanda, Uganda and Burundi.

Agro-input shop owner and member of UNADA Tel: 0312 293 475. Mob: 0774893925 Email: nirudifirm@gmail.com

Reint is the Chief Technical Advisor ALREP/KALIP and an Agricultural Economist by profession. He is a value driven, enthusiastic and effective international development practitioner with over 25 years working experience primarily in Africa, and some in Asia and South America.

ALREP/KALIP Tel: 0414 258 372 Mob: 0772 378 791 Email: r.bakema@opm.nulep.org

Reint Jacob Bakema

Discuss, share, and find out about the latest innovations in agriculture and food security on Agri-ProFocus online platform and by participating in networking events.

Join the Network Today: http://apf-uganda.ning.com/

AGRICULTURAL & NETWORKING EVENTS 2014

OCTOBER

SEPTEMBER

AUGUST

JULY

Date

Event

Location

Details

7th-13th

22nd Source of the Nile Agricultural and Trade Show

Jinja

Show Manager: 0772/0704 602 035

11th - 12th

Pig Farmers Training

Mukono

0703 712 828

24th - 26th

The PSFU International Trade Facilitation Expo 2014

UMA Lugogo

Eve Ekanya: 0700 100 101, 0312 261 850

30th - 31st

Agri-ProFocus Eastern Agribusiness Marketplace Event

Maluku Grounds, Mbale

Samson Musimbi: 0702 208 588, 0773 241 983

1st -2nd

EAGC Annual Agribusiness Expo

Mbale

Benjamin Aijuka: 0701 857 058, 0312 112 854

14th - 17th

SME & Business Cottage Industry fair 2014 USSIA

UMA Lugogo

Veronica: 0774 130 454

11th - 12th

5th Agri-ProFocus Annual Market Information Symposium

Kampala

Jacob Olanya: 0774 543 097, 0312 202758

18th

World Bamboo Day

Kampala

Andrew Kalema: 0772 414 047, 0700 984 963

25th - 26th

Western Agri-ProFocus Agribusiness Marketplace Event

Hoima

Marion Alyek: 0706580997/0781580997

26th-27th

Agri-ProFocus National Dairy Event

Kampala

Sylvia Natukunda: 0781 580997/0706 580997

28th

Agro Trip to Israel (8 days)

Israel

AgroMax: 0703 121884, info@agromaxug.com

30th -31st

Aviana International Expo Poutry and Livestock

UMA Lugogo

www.avianaafrica.com

For details: www.agasha.com

Tel: +256 312 297 499 Mob: +256 751 555 555

CONTACT US FOR: INDUSTRIAL REVIEW MAGAZINE; SOUTH SUDAN MAGAZINE; YEAR PLANNERS; CORPORATE PRINTED MATERIAL

AgriExperts Guide

Featured Experts Anja De Feijter Country Coordinator, AgriProFocus Uganda Plot 36, Luthuli Rise, Bugolobi, Kampala.

T: 0414 563 200. M: 0754 563 229.

E: adefeijter.agrihub@gmail.com W: http://apf-uganda.ning.com P/S: coordinates a fast growing network that promotes farmer entrepreneurship.

It consists of active online knowledge exchange platform with over 3,000 professionals working in Agriculture and other related supporting sectors.

Emma Naluyima (Dr) Veterinary Doctor, Farmer and Lecturer.

T: 0414 323 714. M: 0772 589 613.

E: emmanaluyima@yahoo.com.

P/S: expert in animal health, fodder making and hydroponics.

Christopher Mulindwa Production Manager, Pig Production and Marketing Uganda Limited Plot 929, Block 92B, Kitto, Matugga Town-Bombo Road, Wakiso.

T: 0414 694 465.

M: 0773 422 445, 0705 866 762.

E: chrismulindwa@pigfarmers.co.ug W: www.pigfarmers.co.ug P/S: sells pork and offers training in piggery rearing Farid Karama Managing Director, Sulma Foods Limited.

T: 0312 11 09 49. M: 0774 58 40 69 E: faridkarama@yahoo.com Web: www.sulmafoods.co.ug P/S: exporters of fresh and dry fruits, vegetables, honey, peppers, spices and herbicinal medicine and agro-tourism services.

Enoth Mbeine Principal Consultant, FIT Uganda Limited T: 0414 532 393. M: 0752 851 160.

E: enoth@fituganda.com W: www.fituganda.com P/S: experts in market information systems, agribusiness consultancy and business development services.

Ian Walker Director, Engineering Solutions (U) Limited T: 0312 26 42 21. M: 0758 701 238.

E: ian@engsol.co.ug. W: www.engsol.co.ug P/S: experts in supplying most reliable and original Agricultural equipment and Massey Ferguson tractors.

Irene Sekamwa Kajoro Technical Officer, Agricultural/Rural Finance, Financial System Development Programme, GIZ - GmbH Bank of Uganda, 37/45 Kampala Road P.O. Box 27650, Kampala T: 0414 253 840. M: 0772 408 611 E: irene.sekamwa@giz.de, isekamwa@bou.or.ug W: www.giz.de James Kanyije CEO, KK Fresh Produce Exporters Ltd. Plot 1567, Naalya (Opposite Northern By-pass), Kampala.

T: 0312 202 606. M: 0776/0753 748 799, 0772 748 807. E: james@kkfoods.co W: www.kkfoods.co.

P/S: exporter of farm fresh fruits, vegetables, cereals and grains to Europe 1

AgriExperts Guide

Joshua Akandwanaho Planning and Development Director, Frank Farm Estates Limited Lugushulu, Sembabule District.

P.O.Box 36467, Kampala.

M: 0776 304 000.

E: akandwanahojo@gmail.com W: www.frankfarm.net P/S: deals in beef and dairy production and offers artificial insemination services.

Med Mwiri Sales & Marketing Manager, Engineering Soultions (U) Ltd 7 Spring Close (off 5th Street).

P.O. Box 25349, Kampala.

T: 0312 264 221/3. M: 0776 575 005, 0752 701 239. E: medi@engsol.co.ug W: www.engsol.co.ug P/S: experts in supplying most reliable and original Agricultural equipment and Massey Ferguson tractors.

Joshua Kato Editor, Harvest Money-New Vision Plot 19/21, First Street Industrial area, Kampala T: 0414 337 000, 0312 337 000.

M: 0712 841 688.

E: jkato@newvision.co.ug W: www.newvision.co.ug P/S: edits a weekly publication of Vision Group that consists of Farm expert opinion, Farmers forum, Farming tips, Market Guide, Agricultural research and Success stories in farming among other interesting topics.

Paul Ssembeguya Managing Director, Ssembeguya Estates Uganda Limited (SEUL) Kakinga, Ntutsi , Sembabule.

M: 0782 374 174, 0752 647 812, 0753 343 283.

E: pssembeguya@gmail.com.

W: www.ssembeguyaestates.com.

P/S: specialist in rearing and breeding goats and cows in addition to distributing of agricultural equipments such as: sprayers, pumps, motorized wheelbarrows.

Robert Ocaya Coordinator, Agricultural/Rural Finance, Financial System Development Programme GIZ - GmbH Bank of Uganda, 37/45 Kampala Road P.O. Box 27650, Kampala T: 0414 253 840 M: 0772 308 992 E: Robert.ocaya@giz.de, rocaya@bou.or.ug W: www.giz.de

Asiimwe Jude Managing Director, Kyazanga Integrity Farms (Kyiefs) Ltd Kyazanga Sub-County, Lewngo District.

P.O. Box 76, Masaka.

M: 0782 386 112, 0706 713 919.

E: asiimwejude@yahoo.co.uk.

P/S: deals in farm supplies for beans and maize seed, produce marketing, poultry, livestock and tractor hire services

Robert Ojala (Dr) CEO, Uganda Veterinary Association (UVA) Plot 76, Buganda Road (near Wandegenya Police) P.O. Box 1650, Kampala.

T: 0414 251 762. M: 0782 051 939.

E: ugvetdaktari@gmail.com.

W: www.vetuganda.org.

Martin Maugustini Senior Partner, Agrotech Consult.

Kironde Rd. 924, Muyenga, Kampala.

M: 0776 888 424.

E: info@agrotechconsult.com.

W: http://agrotechconsult.com/ P/S: Your strategic Agribusiness partner.

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AgriExperts Guide

Samuel Kimbowa Business Development & Project Officer, Cycas International Ltd Plot 9, Luthuli Lane, Bugolobi, Kampala.

M: 0757 745 555.

E: kimbowasimon@yahoo.com.

P/S: international agribusiness consultancy specialized in horticulture; project development; marketing and sales; and strategic management among other services.

Sayed Kadri Marketing Manager, Farm Engineering Industries Limited (FEIL) Plot 127-131, 6th Street Industrial Area T: 0414 340 640/1. M: 0788 844 838.

E: marketing4@feilug.com.

W: www.feil.biz.

P/S: experts in supplying and manufacturing of Agriculture, Forestry and Construction Equipments & Generators, Heavy Plant hire and product support for the same.

Sharon Againe (Agronomist) CEO & Founder, Agasha Group Limited Capital ShoppersNakawa, Kampala.

M: 0779 791 780, 0703 698 550.

E: directoryagribusiness@gmail.com.

W: www.agasha.com.

P/S: deals in Agribusiness Consultancy and publishing of Agribusiness Directories and AgriExperts Guide.

P/S: competitive agribusiness consultant for marketing, agribusiness linkages, project planning and management among other services.

Titus Kasujja Director, Danish Agro Connect Uganda Ltd Hotel Equatoria, Mall, Level3, Suite 340, William Street, Kampala.

T: 0414 599 495, +4528 409 921.

M: 0775 563 484 E: info@danishagroconnect.com.

W: www.danishagroconnect.com.

P/S: agribusiness training and consultancy services in areas of: livestock additives for poultry and livestock, entrepreneurship, proposal writing and farm visit in Denmark among other services.

Washington Mugerwa Commercial Farmer. Fodder Solutions Ltd. Entebbe Road, Bwerenga, Wakiso.

T: 0414 323 714. M: 0772 413 273.

E: fodderuganda@gmail.com.

W: www.foddersolutionsafrica.com.

P/S: rears piggery, trains hydroponic fodder making for livestock feeds and manages an integrated farm.

Your Strategic Agribusiness Partner Contact: Martin Maugustini, Senior Partner.

Kironde Rd. 924, Muyenga, Kampala.

M: 0776 888 424.

E: info@agrotechconsult.com.

W: http://agrotechconsult.com/

Sylvia Natukunda CEO and Agribusiness Consultant, Farm Reap Limited Plot 128, Old Kira Rd, Bukoto-Kampala.

T: 0392 846 400. M: 0782 551 473, 0702 780 085. E: farmreap@gmail.com.

W: www.farmreap.com.

3

Agro-Marketing

Photo: The New Vision Library (www.newvision.co.ug)

AgriExperts Guide

ACCESSING PRICES THROUGH AGRINET MARKET INFORMATION BOARDS How does an Information Board look like?

AgriNet branded Information Board (IB) is a large “white board� written on using white board markers, placed in a busy public location. The Information Board Manager updates the board daily with agricultural market price information. Any other person can put advertisements for buying and selling produce, or any other information that is important for the community.

Everything on the Information Board is free for everybody to see. But people must pay to put an advertisement.

IBM mentoring on how to write on the Information Board

license from AgriNet so long he or she manages the Information Board well.

The Information Board Manager is part of a wider network in which he/she shares local market prices with AgriNet and other IBMs. He/she is therefore well informed about commodity prices which are shared with buyers and sellers, for them to make good business decisions. In that way, the IBM functions as a broker for agricultural produce trading.

Who is an Information Board Manager (IBM)?

The Information Board Manager is responsible for daily updating the Information Board. He or she has a business in a busy public place, where many people pass by. The Information Board Manager does the IB management as a side business to his/her main commercial activity. An Information Board Manager is trained to manage the Information Board as a licensed member of the AgriNet network. AgriNet employs a local Network Manager who regularly checks the quality of the information that is on the Information Board and the quality of the Information Board itself. The Information Board Manager keeps the

Who can become a successful Information Board Manager?

An IBM must already be engaged for sometime in a commercial activity, preferably, but not necessarily, related to agriculture. Good examples of such businesses are agricultural produce traders, agro-input dealers and general retail shops. The business must be 5

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

What kind of support is available to help in starting this business?

strategically located in a trading centre, for instance in or near a local market or busy area visited by people who are likely to have an interest in your IB. The core business must give you a reasonable source of income, as the IB will in the beginning not generate a lot of money for you. However, the IB will certainly attract people to your core business.

Information Board Managers are coordinated by AgriNet Uganda Ltd who trains and supports all the IBMs in the country. AgriNet also coordinates and trains the local Network Managers, who will provide the day-to-day support to the IBMs.

The IBM must be known and registered with the local authorities. This helps to get support and promotion from the local authority for the IB activities.

You must also know farmers’ groups, middlemen, processors and traders.

They are the ones who feed you with local information to put on the board.

Lastly, the IBM must own a mobile phone, which is kept operational and loaded with airtime.

A community member reading prices on MIB

AgriNet provides the mobile phone sms platform that links up all IBMs in the network with regular market information.

Agrinet sends several times a week market information to the IBMs, and in turn receives from all the IBMs the market prices at the location of the IBMs. In that way, information of agricultural commodity prices and the availability of produce across the country is widely shared, thereby creating an open and transparent agricultural commodity market.

If you want to be part of that exciting system, contact us: AgriNet Uganda Limited Plot 209 Upper Mawanda Road, Old Mulago Hill Kamwokya P.O Box 22130 Kampala, Uganda Tel/Fax: 0414 53 06 96. Mob: 0772 49 59 50 Email: admin@agrinetug.net.

Website: www.agrinetug.net

Mobile phone sms information sent to IBMs 6

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

Market Information Expert Paul Nyende is a Founder and Managing Director of AgriNet Uganda Ltd. Before retiring to private sector, Paul worked with various government and non-government organizations and projects for over 10 years, in the field of agricultural research, rural development and livelihood programmes. With a Master of Science in Agriculture degree from Makerere University, specializing in land and water use management, Paul has also acquired vast hands on experience in Good Agricultural Practices, agribusiness and marketing, farmer institutional development, capacity development and training, Participatory Development, Information, Communication and Networking and Project Monitoring and Evaluation.

As Managing Director of AgriNet Uganda Ltd, Paul runs a number of businesses including a food and animal feed processing plant in Tororo that produces high quality branded maize flour and animal feeds, a grain trading and supply chain management business with over 300 agents managing satellite collection points in the north, east and western Uganda, a web-based agricultural market intelligence service linked to mobile phones; and Oolux solar lantern distributorship business with Antenna Foundation Technologies, a Swiss company.

Paul has great experience working with big buyers and processors including Uganda Breweries, Agroways (U), Sigma Feeds Kenya Ltd and Kisenyi Traders among others sourcing various commodities including sorghum, maize, soyabean, ground nuts and cassava among others.

Paul’s dream and vision to a establish the largest and reliable network for market intelligence and agricultural commodity trade in East Africa and the western world Paul Nyende Managing Director AgriNet Uganda Ltd Telephone: +256772495950/0757495950 E-mail: pnyende@agrinetug.net Website:www.agrinetug.net

7

Â

AgriExperts Guide

Contacts W: www.excelhort.com.

P/S: Horticulture Value Chain Analysis and Development, Market Information Services, Project/Program design, implementation and evaluations, Impact Assessments, Strategic Planning and Institutional Development and Agribusiness Business Management services.

Â

Contact: Paul Nyende, Managing Director.

Mount Olive Country Mall 2nd Floor, Suite No.8, Ntinda - Naalya Road, Kampala.

M: 0772 495 950, 0701 495 950.

E: admin@agrinetug.net W: www.agrinetug.net.

P/S: market information service provider and market broker for agricultural inputs, commodities, animal feeds and services.

Farmgain Africa Limited Ntinda Shopping Mall, Plot 1, Kimera Road, K’la.

T: 0414 285 079.

E: info@farmgainafrica.org.

W: www.farmgainafrica.org.

P/S: agribusiness consultancy firm for market information, value chain development, market analysis, food security among other services.

It provides up-to-date commodity retail and wholesale prices per Kampala major vendor markets.

Bwera Information Centre (BIC) Contact: Mwirima James, Chairman.

Saad Cell, Plot 4, Bwera Hospital Road, Mpondwe Lhubiriha Town Council, Kasese.

T: 0392 707 151.

M: 0772 986 345, 0776 977 016.

E: bicbwera@yahoo.ca, jmwirima1@yahoo.com.

W: http://bicbwera1.blogspot.com/.

P/S: NGO that supports farmers to access, share and disseminate relevant information on agricultural production, marketing and produce prices.

Fit Uganda Plot 175/176 A, Kyadondo II Road Kagugube Zone, Makerere P.O. Box 24060, Kampala Tel: 0414 53 23 93 Email: info@fituganda.com Web: www.fituganda.com Products/Services: Market price information, consultancy and business trainings

Excel Hort Consult Ltd Contact: Alex Ariho, CEO. Plot 67, Buremba Road, Kakoba Division, Mbarara T: 0485 661 103.

M: 0702 512 943, 0703 904 344.

E: info@excelhort.com.

8

AgriExperts Guide

Grameen Foundation 6th Floor, Lourdel Towers, Plot 1, Lourdel Road, Nakasero, Kampala.

T: 0312 178 178, 0312 555 100.

Toll Free: 0800 208 178.

E: info.uganda@grameenfoundation.org W: www.grameenfoundation.org, www.ckw.grameenfoundation.org P/S: mobile agricultural products that support farmers to access market information.

Infotrade Uganda Plot 175/176 A, Kyadondo II Road Kagugube Zone, Makerere P.O. Box 24060, Kampala Tel: 0414 53 23 93, 0312 27 06 72 Email: infotrade@fituganda.com Web: www.infotradeuganda.com Products/Services: Market price information, consultancy and business trainings

Kabarole Research & Resource Centre (KRC) Contact: Muhammed Shariff, Dep. Director Mugurusi Road, Fort-Portal, Kabarole.

T: 0382 274 438. M: 0772 911 693 E: krc@iwayafrica.com; shariff@krc.org W: www.krcuganda.org.

P/S: CBO that offers Micro finance, market information and agro enterprises support to farmers.

Kyaka Rural Information Centre Contact: Kyomuhendo Stephen, Information Off. Kibira Cell, Kyegegwa Town Council, Kyegegwa

M: 0700 588 593, 0782 885 823.

E: kric.ricnet@gmail.com, kreps2012@gmail.com P/S: agricultural information sourcing, repackaging and dissemination to rural based farmers.

Mbale Business Information Centre Contact: Geoffrey Nabanfu.

Plot 60, Republic Street, Mbale T: 0774 630 000. E: epsedec@yahoo.com.

W: www.mbalebic.co.ug Pearl Farming Information Centre Contact: Denis Mugabi. Kampala.

M: 0705 999 428.

Rwenzori Information Centers Network (RIC-NET) Fort Portal, Kabarole.

T: 0382 277 994. M: 0772 607 149.

E: info@ricnet.co.ug. W: www.ricnet.co.ug.

P/S: Market information Service for farmers.

Sinfa Uganda Ltd Contact: Wilfred Musinguzi, C.E.O. Plot 13B, Upper Churchill Road, Gulu.

T: 0471 432 597. M: 0776 758 863.

E: wmusinguzi@sinfauganda.co.ug.

W: www.sinfauganda.co.ug.

P/S: provides Commodity Resource Platform to local farmers so as to access information on market prices via phone and connect directly with the buyers and sellers.

Tec4farmers Contact: Deogratious Afimani, Product Manager/VP. Plot 90, Suite 304, 3rd Floor, Kanjokya Street, Kololo, Kampala.

M: 0793/0700 730 859.

E: hello@tech4farmers.com, deo@tech4farmers.com.

W: www.tech4farmers.com, P/S: promotes agriculture through ICT and mobile phone innovations Such as: Commodity exchange platform connecting farmers to traders & consumers; transparent market prices; genuine agricultural inputs; warehouse receipting & financial inclusion.

9

Agri Financing

Photo: ALREP/KALIP (www.opm.nulep.org)

AgriExperts Guide

How to Start and Expand Village Savings and Loans Associations (VSLAs)? through investments, such as constructing houses for rent, set-up and run a business, or buying stock.

Why should you save your money?

People save money for different reasons, but saving is always done to cater for expected and unexpected future events.

The expected events include things that we can foresee, prepare for, and are important in our lives. Think about: construction of a house, education, lowincome periods, childbirth, weddings, old age, festivals. The unexpected consist of events that may be difficult to predict, but are likely to happen once in a while, and require an immediate and adequate financial response. Typical examples are: accidents, sickness, funerals, crop failure, theft and other emergencies. We can also save money for purchases or activities that are not critical but enhance our lives. These optional expenses include: construction of a house, luxury items such as TVs, phones and other gadgets, vacations, gifts, cars. And lastly, money can also be saved for accumulating wealth

Where can you save your money?

Saving can be done in a formal, semi-formal and informal manner, depending on what is available in your community. Formal saving is when you put your money in an institution that is regulated by a government agency to ensure the safety of funds. These include: banks, microfinance institutions and credit unions. Semi-formal savings institutions are the ones that you manage in a community group. Examples are SACCOs, village banks, solidarity groups, cooperatives and Village Savings and Loans Associations (VLSAs).

Saving is informal when you manage it yourself, for instance by keeping cash, livestock or jewelry.

What are Village Savings and Loans Associations (VSLAs)?

VSLAs are saving groups formed and managed by community members. VSLAs support members to save their money in a relatively safe communal place, help them access small loans for economic and social activities (agriculture, schools, health, weddings) and as a source of funds in case of emergencies. They are especially useful in rural CARE VSLA meeting 11

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

• Selecting Members: Trust is a fundamental characteristic for the success of a VSLA. Before starting a VSLA, assess the trustworthiness of the group members. Only when you are all comfortable with each other, the group should be formed.

• Seek Knowledge, Mentorship and Training

X

CASH BO

As a group, take the initiative of learning and acquiring more knowledge about the activities and dynamics of running a successful VSLA. This can be done through attending local meetings with already established VSLAs or inviting established NGOs like CARE International that train and mentor VSLAs. The main objective is to learn how to define the purpose of VSLA, elect leaders, set terms for savings and loans, and determine interest rates, repayment schedules and penalties for defaulters. You should also obtain skills on recordkeeping that is suitable for both literate and illiterate group members.

VSLA group meeting

areas where access to formal financial service providers is often hampered by distance, language, costs, bureaucracy, and lack of appropriate saving products.

Since the VSLA is a local voluntary organization, its functioning is based on trust, the procedures involving transactions are kept simple, and the startup and running costs are low. The strict group rules on deposits help members to develop a saving discipline, and put money aside that otherwise would ‘disappear’ in many small expenses.

The VSLA also allows members to access micro-loans from the savings of other members, who in return get dividends from their savings. Eventually, when members are used to save and borrow funds in the informal but strict VSLA environment, they may reach a point when they are confident enough to access more formal financial services like rural microfinance institution or formal banks.

• Elect the leaders to govern the group After the training, the members should democratically choose the group executive committee. The committee consists of a chairperson, treasurer, secretary and two money-counters. Additionally, three members should be elected and entrusted with a key of the three locks on the cashbox where the money will be kept.

How to form VSLA in your area?

• Set the Rules and Policies for Finance Services The group determines each member’s shares in the VSLA, and agrees on the amount of money to save per week.

In the last 15 years tens of thousands VSLAs have been set-up in Uganda. Their success is based on a number of simple principles that need to be adhered to.

12

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

also help the group to access larger loans, or special products that some banks have developed for VSLAs.

Additionally, the group should determine the period when to disburse loans to members, and the interest rate for loans. This is often in the range of 5 to 10 percent per month. The amount of money to be set aside as social fund for emergencies should also be agreed upon by the members. The group can also decide on when to conduct audits. This is especially useful at times when money is needed most, such as at the beginning of the term for school fees or for purchasing agro-inputs.

Before opening a bank account, the members should have identified a clear need for keeping their savings in the bank rather than in the cashbox. Once decided, the VSLA members should again make a study as a group and find out which bank can offer them the most suitable and least expensive banking terms. The distance from the collection center to the bank should also be considered so as to determine the travel costs.

• Carry out regular meetings Meetings are usually held on a weekly basis. During the meeting, the VSLA collects the weekly savings and interest from members and provides loans. This should be done before all members to ensure transparency and accountability.

How can banks create relationship with VLSAs? Some VSLAs have accumulated millions of shillings in their cashbox and have built sufficient trust and financial literacy for making them potential clients for banks, MFIs and Credit Unions. However, the bank officers and managers should try to understand the background of VSLAs and the members that form them.

• Auditing and Distribution of funds After about nine to twelve months, the group carries out an audit, makes payments for savings and earnings from interest and fees, closes its books and breaks the cycle. This is also a period where some members can choose to leave the group and new members join.

The group can also revise its rules, policies and resumes the processing of savings and offering loans.

Finance products targeting this group should be developed in partnership with the local agencies and NGOs that are in close relationship with VSLA members. Barclays, Centenary Bank and Bank of Africa in partnership with Care International Uganda have over time developed systems and products suitable for VSLAs.

Why should VSLA have a bank account?

Under ALREP and KALIP, thousands of VSLAs have been formed and over 200 have been successfully linked to banks.

Once a VSLA is well-established and it has gone through a few cycles, it may consider opening a bank account and deposit the funds there. By banking the collected money, the group reduces on the risk of robbery and losing all their savings at once. An account with a formal bank can

A training manual on VSLA produced

by CARE International is available at the ALREP/KALIP website: www.opm.nulep.org 13

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Contacts Agribusiness Initiative Trust (aBi Trust) Umoja House, Plot 20, Nakasero Road P.O. Box 29851, Kampala T: +256 312 351 600 F: +256 312 351 620 E: info@abitrust.com W: www.abitrust.com

Care International in Uganda Contact: Melch Natukunda, VSL Project Advisor.

Plot 17, Maackinnon Road, Nakasero P.O. Box 7280, Kampala T: 0312 258 100.

E: Mnatukunda@co.care.org W: www.careuganda.org

aBi TRUST

Products/Services: aBi Trust is an entity set up by the Governments of Uganda and Denmark to promote private sector agribusiness development. It supports marketdriven enterprises using a value chain approach for coffee sub sector among other commodities. Both technical and financial support is extended to actors for improved efficiency, effectiveness and competitiveness. The support is provided in aspects that alleviate obstacles which would hinder the smooth flow of produce from production to the final consumers.

Mapeera House, Plot 44-46, Kampala Road, Plot 2, Burton Street (Opp. City Square), Kampala. T: 0417 202 315.

E: info@centenarybank.co.ug.

W: www.centenarybank.co.ug.

P/S: Agricultural financing.

Bank of Africa Head Office, Plot 45, Jinja Road (Next to Shell Petrol Station), Kampala.

T: 0414 302 001.

E: boa@boa-uganda.com.

W: www.boa-uganda.com

FORMA Co-operative Union Limited Mugurusi Road, Fort Portal, Kabarole.

M: 0772 562 665.

E: formalimited@yahoo.co.uk.

W: www.forma-ug.org.

P/S: offers finance training, mentorship and auditing services to about 800 farmer members in SACCOs, VSLAs, Producer Cooperatives and NGOs.

Barclays Bank of Uganda Ltd Plot 2/4, Hannington Road, Kampala.

P.O. Box 7101, Kampala.

T: 0417 122 000, 0417 120 000 E: barclays.uganda@barclays.com W: www.barclays.co.ug 14

AgriExperts Guide

GIZ Uganda Plot 23, Nakasero Road, Kampala.

T: 0414 303 901.

E: secretariat.giz-uganda@giz.de.

W: www.giz.de.

P/S: Technical Assistance to Agricultural and Rural Finance Institutions, Renewable Energy, Water and Sanitation among other projects.

Post Bank Uganda Plot 4/6, Nkurumah Road, Kampala.

T: 0414 258 551/3.

E: info@postbank.co.ug.

W: www.postbank.co.ug P/S: Agricultural loans, Ekyapa Loan for farmers.

Housing Finance Bank Contact: Patrice Ocungirwoth, Senior Manager Agro-Business, Corporate Department.

Investment H’se, Plot 4, Wampewo Av., Kampala.

T: 0414 259 651/2, 0312 262 614, 0417 707 771 M: 0772 699 761.

E: info@housingfinance.co.ug, Patrice.Ocungirwoth@housingfinance.co.ug W: www.housingfinance.co.ug.

P/S: Agribusiness loans.

17 Hannington Rd, Crested Tower Building P.O. Box 7131, Kampala Tel: 0417 15 40 00 Fax: 0414 25 42 93 Email: CCUG@stanbic.com Web: www.stanbicbank.co.ug P/S: Stanbic Bank has engaged in specific initiatives aimed at providing finance to agriculture. We are committed to the development of agriculture and to adding value to your business. We have a range of specialized products and services, including the support of our agricultural advisors and business managers. Our products range from Agricultural Production Loan (APL), Agricultural Asset Financing, and Structured Trade Finance to Loans for Agro-processing and Value addition.

Plan International Uganda Contact: Okwir Joel, Agriculture Development Country Officer. Luthuli Avenue, Bugolobi, Kampala. T: 0414 305 000.

M: 0782 838 627.

E: joel.okwir@plan-international.org.

W: www.plan-international.org.

Oikocredit Uganda Plot 52, ESAMI Building, Bombo Road, Kampala.

T: 0414 236 540, 0414 531 094.

E: office.ug@oikocredit.org W: www.oikocredit.org P/S: Lends working capital to microfinance institutions within Agriculture among other sectors.

SwissContact 19/20, Off Martyr’s Way Ntinda, Kampala P.O. Box 21153, Kampala T: 0414 222 431 E: info@swisscontact.co.ug W: www.swisscontact.org

For more contacts, visit www.agasha.com, or buy the Agribusiness Directory 15

Stanbic Bank Uganda Limited

The right financing for the right agribusiness

Richard Wangwe Head, Agriculture Uganda

Agriculture is a major source of livelihood in Uganda, to this effect Stanbic Bank Uganda Ltd has provided financial solutions to the agricultural sector for over 150 years in Africa and we are committed to the development of agriculture in Uganda. We understand agriculture and the needs of all types of agribusinesses.

No matter what size or type of financing need, you can count on Stanbic Agriculture finance, season after season, in good and tough times. We’ll work with you to find solutions that meet your needs.

Stanbic Bank provides credit for all types of agricultural-related enterprises. We’re experts in the field, with a long-term commitment to agriculture and commercial specialists who know how to work through the details. Our significant lending capacity and competitive cost of capital mean we can provide diverse loan packages for any size of business.

Stanbic Bank offers a wide range of finance, investment and risk management solutions across the entire agriculture value chain.

They range from primary production, agro processing, distribution and marketing that include but not limited to:

Agriculture Commodity trade and export, Stanbic Bank provides tailor made trade finance solutions to meet your specific needs including: - Trade finance export facility; - Collateral managed agric commodity ware housing facility; - Bills on collection; - Import and export trade.

Companies involved in the production of grain and oilseeds, cotton, vegetables, tobacco, and other fruits Companies that own and/or process poultry and other meat products; Agroprocessing machinery and specialised agricultural vehicles e.g tractors, milk coolers e.t.c; Construction e.g warehouses; Breweries and distilleries; Businesses involved in the production of flowers;

We’re experts in the field, with a long-term commitment to agriculture and commercial specialists who know how to work through the details.

Dairy processing and dairy product manufacturing (cheese, ice cream, yogurt, etc.) companies; Grain processing companies that produce food products or ingredients; Coffee and Cotton trade and warehousing companies; Fruit and vegetable packing or processing companies; Tobacco trade, warehousing and marketing companies.

Why talk to us Our sector specialists have in-depth knowledge of the agribusiness sector and its supply chain, with a particular focus on emerging markets.

Our dedicated relationship managers manage and coordinate access to all products, services and expertise throughout the bank to provide holistic financing solutions.

We customise innovative solutions to meet your specific needs.

Our extensive footprint across Africa and emerging markets globally positions us to facilitate financial solutions for agribusiness customers within and between continents We provide short term, medium term, long term and project financing at competitive interest rates as low as 12% for Ugx loans.

Contacts us at: Stanbic Bank - Agriculture Financing 9th Floor, Short Tower, 17 Hannington Road, Crested Towers Building.

P O Box 7131 Kampala. Tel +256 417 154 000/446/210/654/449/886 Stanbic Bank Uganda Limited A financial institution regulated by Bank of Uganda License Number A1. 013

Agro-Inputs

Photo: Engineering Solutions (www.engsol.co.ug)

AgriExperts Guide

How to start, manage and market a profitable Agro-Vet-Input Retail Shop?

Develop the Business Idea Agro-input shop ideas are based on the identified need in the community.

For instance: you may have noticed that there is no agro-vet shop in your

Like any other business, an agro-vet input shop begins with the realization that there is demand for agro and veterinary products in an area. These shops operate as any other retail business: They stock products, and sell them at a margin of between 25-30% to pay for operational expenses and generate a profit for the entrepreneur.

Demand for agro and vet inputs will definitely increase in the coming years as more and more farmers modernize and commercialize their agricultural practices. This rural transformation is being supported by Government efforts, through youth development and micro-finance programmes, and the penetration of formal banking in rural areas. Therefore start developing your agro-vet input business now, and grow your business with the expected growing demand. However, developing a profitable agro-vet shop requires the following steps:

Agro-Input Retail Shop

trading center or you could be having the passion, education and background in agro-vet-input products. To confirm whether your ideas are correct, start with market research. This also helps you to understand your potential customers, their needs, understand the industry of agricultural inputs, and know your competitors.

Typical market research questions are: Areas of research

Research questions

Customers

who are my customers; where do they live and what do they need; what are they willing to pay

Products

what is already on the market at what price; what are possible gaps in the market

Competitors

who are my competitors; their strengths and weaknesses; what can I learn from them; how can I be different, and preferably better than the others

Suppliers

who would be my suppliers, how reliable are they 19

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This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

You could further expand your market research by bringing a few products that look promising and offer them to your potential clients. At this stage, you don’t aim at a profit, but you look for your clients’ response to the products, and what they are willing to pay for it.

issues a three year operation license at a cost of 350,000 Ugx. Sharing the shop with other retailers is not allowed as some of your products are poisonous.

To bring your shop to the required standards, you may need to carry out some improvements, such as proper shelving, painting, ceiling, ventilation, counter, pallets, and a signpost. These cost UGX 3-5 million on average.

Make a Business Plan Once the market research shows that the shop is needed, make a business plan stating your goals, assets, needed investments, type and sources of your products, your marketing plan, your projected sales, margins, income and profit, for at least the next 3 years. It is important that your business plan is realistic, and takes into consideration unforeseen losses such as theft and price increases. The business plan will tell you how much you are likely to earn, and how these earnings will develop over the next years. A good business plan may also help you to get a loan from a bank or individual.

Stock your shop The initial capital to stock your shop is likely to be UGX 1-3 million. Agroinputs are bought from UNADA certified seed companies and other national and regional suppliers such as: Farm Input Care Centre (FICA) Seeds, Naseco, Pearl Seeds, General and Allied, Twiga Chemicals, Balton Uganda, Hangzhou Agrochemicals and many others. More companies are listed in the Agribusiness Directory sold in leading bookshops.

According to MAAIF regulations, veterinary drugs for animals must be kept separate from agro-inputs (seeds, fertilizers, herbicides, pesticides, fungicides) to avoid contamination.

Develop your Business Develop your expertise If you don’t know much about the agrovet business, start studying the topic. This will also help you to advise your customers professionally. UNADA offers courses in Business Development, agro-vet product handling and marketing.

The agro-input business is seasonal, so you need to adjust your stock and market strategy to match the season: ploughs and seeds at the beginning of the season, pesticides during the season, tarpaulins and gunny bags at the end of the season.

This reduces stock costs and avoids some stock to expire.

It is a requirement for all agro-vet dealers in Uganda to have a Safe Use and Handling of Agro-vet Inputs Certificate from MAAIF. The training is organized by UNADA, in partnership with Makerere University and MAAIF. A business registration, a trading license and TIN are also required.

Market your shop You have to aggressively and proactively market your business. For starters, put up a clear signpost. Talk to people about your products, lay-out demonstration gardens with improved seeds, organize farmer field days, or set up a network of local

Getting a shop Your shop should be at least 3.5 x 3.5 meters, with good ventilation, and a proper ceiling and roof. Before operating, a MAAIF inspector visits the shop and 20

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This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

• Maintain good and trustworthy supplier relationships. This will get you products on credit and better wholesale prices.

• Attend trainings and workshops to acquire more expertise and business skills.

• Enjoy what you are doing.

agents to distribute your products directly to farmers.

Pricing your Products Some importers provide a price structure indicating the wholesale and retail prices, which have a 5-10% margin. You can also visit neighboring shops to find out their current prices. You can try to be cheaper, or offer a better service, such as providing good advice or handing out product leaflets.

For more information, contact the Partner of ALREP/KALIP:

UNADA Secretariat Plot 16A, Martyrs Day/UNEB Road, Ntinda P.O. Box 7634, Kampala Tel: 0312 29 34 75, 0414 25 16 77 Fax: 0414 34 02 67 Mob: 0772 63 33 33 Email: unada@unada.org Website:www.unada.org

Operate your shop efficiently You need to manage it efficiently by keeping surroundings clean, maintain and track your stock, keep proper books of accounts, and provide excellent service to your customers.

Bookkeeping and stock keeping are the weakest parts of retail shops in Uganda.

But without a simple system to follow what goes in and out in terms of money and products, you cannot determine whether you are operating at a loss or at a profit.

You would also not be able to detect theft.

Expected Revenue and Profit Margins With an investment of UGX 6 million, a medium size agro-vet shop can generate revenues of UGX 2 – 3 million per month during the cropping season. If well managed, the gross profit would be around UGX 400 – 600 thousand, and a net profit of UGX 250 – 400 thousand per month for around 6 months per year.

Tips for being more successful • Acquire as much knowledge as possible about agro-input-vet retail business.

• Sell genuine agro-vet-input products with good expertise advice. Customer satisfaction is key to the success of your shop.

Agro-Inputs for stocking in the shop

21

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This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Contacts Equator Seeds Ltd Contact: Okello Tony, MD. Gulu-Kampala Highway, Gulu T: 0392 614 057.

M: 0772 626 203, 0782 620 830.

E: equatorseeds@yahoo.com.

W: www.equatorseeds.com.

Balton Uganda Limited

P/S: produces, processes and markets certified seeds (vegetables, cereals and legumes).

Contact: Jabber Abdul, General Manager - Agriculture Division Plot 47/51, Mulwana Rd., Kampala T: 0312 502 300.

E: balton@balton.co.ug.

W: www.balton.co.ug.

P/S: dealers in greenhouse structures; agro-chemicals; seeds; farming machinery and implements; fertilizers and fertigation equipments; cold stores; agricultural training and systems for fumigation, water management and irrigation.

Loroo Veterinary Drug Shop Contact: Moses Namangala Amudat. M: 0774 241 181.

General & Allied Ltd. Contact: B.N.S.Gowda.

Plot 14/18, G & B Complex, Container Village, Nakivubo Place, Kampala.

T: 0414 349 301. M: 0712 487 025.

E: gal@infocom.co.ug.

P/S: dealers in seeds and crop protection (vegetable seeds, herbicides, insectides, fungicides, public health, knapsack sprayers & fertilizers).

For more contacts, visit www.agasha.com, or buy the Agribusiness Directory 22

Environment

Photo: ALREP/KALIP (www.opm.nulep.org)

AgriExperts Guide

Soil and Water Conservation in Karamoja Karamoja is the driest region of Uganda, but it certainly isn’t a desert.

On average, rainfall is between 400 and 1000mm per year with more rain in the west of the region and less rain as you head east towards the border with Kenya. Most of the rain falls between April and October, with, on average, a small dip in June. The trouble is that when the rain does come in Karamoja, it is often as erratic heavy downpours.

Such sudden big amounts of water cannot be absorbed quickly enough by the soil. The run-off water causes flash floods and soil erosion, and much of it eventually ends up in the swamps of Teso. That water is therefore not available for the Karamojong’s cattle and crops. To make matters worse, tree cutting for fencing, firewood and charcoal, and overgrazing around kraals has reduced the vegetation cover in many areas. This has further reduced the soil’s capacity to absorb water, and makes it more prone to erosion.

Karamojong Manyatta’s from the air. All fencing is wood. Note the eroded area in top right of picture where animals are taken for grazing.

A Kei apple living fence planted around a community pond. The hedge will protect the pond once the wire and pole fence is broken.

So what can be done to conserve water and soil in Karamoja? The possible actions range from simple farmer managed interventions to trap water, to large water storage infrastructures. This article gives some examples.

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THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Increasing vegetation cover The Karamojong need trees to sustain their livelihoods, and in principle, tree cutting is not necessarily a problem. It becomes an issue when the off-take surpasses the regrowth. In such cases, areas lose their vegetation cover. Therefore, cross cutting through all soil and water conservation measures must be actions to increase vegetation cover. This can be done by reducing tree cutting, just cutting branches, supporting tree rejuvenation (eg protecting from bush fires) and by planting trees.

Trees can be planted around water sources, along contours, around homes or simply scattered through rangelands. If carefully selected for the ecological zone in which they are being placed they can provide fuel wood, building poles, fodder, fruits, oil, medicines, shade and many other benefits, aside from protecting the environment and supporting soil and water conservation.

The Manyatta’s of Karamoja use large quantities of wood in their fence construction, but with peace now assured across the region Manyatta’s can consider gradually replacing wooden fences with live fencing using Kei Apple or Euphorbia (milk bush) which can develop into strong and secure barriers. Where there are fewer trees, such as across the drier plains of central Karamoja, it is important to maintain grass cover. Bush burning should be kept under control, and its frequency reduced, so that vegetation has a chance to re-establish after a fire.

Trapping water For the soil to be able to absorb water, it needs time to sink into the earth. This can be done by trapping water on the land behind simple heaps of soil and crop residues running along the contour, or in hand-made depressions. By slowing down run-off, soil erosion is reduced and water penetrates the earth. Practical examples of such structures include contour lines, trenches along the contour(“fanya juu – fanya chini”), and “semi-circular catchments” to support especially fruit trees. On a larger scale, “trapezoidal bunds” trap water in a plot such that it is retained for crops to use. All these structures can be built easily by individual households with very little labour input.

Trees planted behind a trapezoidal bund in Amudat District

Pokot farmers pleased with their fruit trees planted within semi circular catchments

26

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Community desilting a village dam - labour is supported by Cash for Work

Water from a treadle pump being used to irrigate sukuma wiki in Amudat District

Micro-ponds and small irrigation systems To capture larger amounts of water, village members can unite to construct village ponds or micro dams. Their size is around 20 x 20 meters and 2-3 meters deep, and they are normally dug by hand using voluntary community labour. Such ponds provide water during “gaps” in the rain and for a month or two into the dry season. Water from these ponds can be used to support vegetable gardens, whereby water is extracted using a treadle pump and then being fed to the crops either through drip irrigation or water hoses. To maximise the returns on investment in such small irrigation systems, often highvalue vegetable crops are cultivated using good crop husbandry practices, such as correct spacing, composting and mulching.

These measures ensure that the soil is kept cool, water is preserved and plant growth is optimal.

Micro ponds need to be properly managed.

The banks need to be protected with a life fence, and livestock should not enter the pond but drink water from troughs. Ponds also need to be desilted every year in the dry season. A small community water user committee is usually set-up to organise the desilting and for the management of the pond and the use of its water.

Subsurface dams A suitable water harvesting technique for sandy riverbeds is a subsurface dam. The dam is built on the river bedrock and traps water in the riverbed sand behind the dam. The water can be extracted by digging watering holes or by pumping it from a shallow well. Sub surface dams are relatively cheap, but designing and building them requires technical expertise. Their water yield depends on the characteristics of the riverbed material. It ranges from 100 – 350 litres of water per cubic meter of sand.

Valley tanks and dams A valley tank is a large dug-out that can store between 5,000 -20,000m3 of water.

A 10,000m3 tank holds enough water for a few thousand cattle for 4 to 5 months.

Valley tanks are expensive (UGX 250 – 350 million), and require extensive site 27

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This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

validation and technical designs by hydrologists and water engineers. The design must include stone pitched cattle ramps, a silt trap, an overflow and a life fence planted around the tank. Excavation is usually done by machines. To make the investment last, valley tanks require careful management by a community water user committee. The committee ensures that the fence is maintained, cattle only enter through the cattle ramp, and that the tank is desilted during the dry season.

A valley dam is a barrier in a pronounced valley with high seasonal runoff volumes. Dams are usually much bigger and more expensive than tanks, and their construction is more complex and expensive. If large enough, dams can also be used for downstream irrigation. The management and maintenance of dams requires a highly qualified technical team, which may mobilise local communities for labour intensive maintenance, such as desilting.

Conclusion There are many possibilities to increase water availability in Karamoja.

All of them require cooperation between the local community, districts and national governments.

Simple structures can be built and maintained entirely by communities.

Larger structures require technical inputs from specialists, and often a substantial financial input from the government. In all cases successful soil and water conservation measures must include actions to maintain or increase vegetation cover. Effective community based water user committees are needed for regular desilting and small repairs.

The Government of Uganda’s Karamoja Livelihoods Programme (KALIP), financed by the European Union has been supporting all these types of soil and water conservation measures. More information can be found on the KALIP website: www.opm.nulep.org

Heavy machinery excavating the valley tank in Kaigenoi, Amudat District

Cattle drinking from the cattle ramp which descends into the tank to allow water access 28

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This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Contacts Agro-Machinery Services (AMS) Ltd Plot 2986, Kisota Road, Kisasi (Off Northern Bypass), Kampala.

M: 0712 832 708, 0783 657 910.

E: agromachineryservices@gmail.com.

P/S: Water harvesting technology, Green house construction and Farm land preparation machinery.

Silta Uganda Limited Contact: Ekadu Silas, Irrigation Engineer.

Jubilee Block YMCA, Wandegeya, Kampala T: 0200 900 817.

M: 0777 434 129, 0754 434 129.

E: silasekadu@yahoo.com W: www.siltauganda.com P/S: Land scape and irrigation systems.

AgroMax (U) Ltd Plot 92, Lutette, Gayaza Road, Kampala.

T: 0414 666 030. M: 0756 622 465.

E: info@agromaxug.com.

W: www.agromaxug.com P/S: Seedlings, Drip irrigation and Green House.

Siraco (Sustainable Irrigation and Consultancy) Contact: Mubangizi Aloysius, Irrigation Engineer. Ntinda, Kampala.

M: 0701/0775 487 750, 0778 609 102.

E: aloysius@siracoirrigation.com, info@siracoirrigation.com.

W: www.siracoirrigation.com P/S: Design, installation & maintenance of irrigation systems and water harvesting technologies

Crestanks Ltd Contact: N.Sureh, Regional Marketing Director.

Plot No.265, Jinja Rd, Bweyogerere, Wakiso.

T: 0312 262 015. M: 0772/0752 720 560.

E: suresh@crestanks.co.ug.

W: www.aquasantec.com.

P/S: quality tanks for water harvesting and biodigester equipments.

Davis & Shirtliff Ltd Kitgum House, Jinja Road, Kampala T: 0414 346 337/8, 0414 346 335.

E: d&s@ug.dayliff.com. W: www.dayliff.com P/S: Manually operated irrigation pumps and Solar Products.

Smile Plast Ltd Contact: Vishal Shah, Director.

Behind Quality Chemicals, Luzira Industrial Park, Kampala.

T: 0759 520 520.

M: 0751 890 890, 0776 890 891.

E: sales.smileplast@gmail.com, vishal@smileplast.com W: www.smileplast.com P/S: manufacturers of quality water tanks, septic tanks, pit slabs and pallets.

Multiple Industries Limited Plot 13/23, 8th Street, Industrial Area (Near Total Head Office). Kampala.

T: 0414 236 021/2, 0414 250 486.

E: sales@multipleindustries.com.

W: www.multipleindustries.com.

P/S: Agricultural irrigation system, Pipes & fittings, Water tanks, and Roof Insulation for poultry.

29

Agro-Processing

Photo: The New Vision Library (www.newvision.co.ug)

AgriExperts Guide

Establishing a Maize Milling Business Opportunities in the Maize Milling Industry

Setting up the structure A well-designed maize processing unit consists of the actual mill, the raw material store and the final product store.

Maize is widely grown in Uganda on subsistence and commercial farms.

Cooked maize flour (posho) is an important local staple food, and maize bran is an essential ingredient in animal feeds. The consumers of maize products, such as schools and poultry farms, are steadily increasing, creating a growing market for processed maize products.

The processing unit should be at least 15 meters from the storage units and at least 50 meters from residential areas, to avoid unnecessary noise and vibration disturbances. The unit size should have enough space for safe working and maintenance of the machines. The minimum size for a small plant is 50 m2.

If you have identified an opportunity for maize processing in your locality, for instance because of the long distance that people have to travel to buy maize flour, or because of the establishment of new schools and hospitals in your area, you may consider starting up a maize processing plant. This article provides some basic information about this type of business.

The storage unit for maize grain and the final products must be dry and well ventilated. The floor should be cemented or smeared with clay/dung, and the grains should be stored in sacks on pallets. A well-lit store helps to avoid moulding of the raw and finished product. The size of the storage units depends on the milling capacity of your plant, the source of your raw materials and your operating strategy.

In any case, you should be able to store enough grain for at least 2 weeks of mill operations. For a small mill that means that you want to store at least 10 tons (200 bags of 50 kg) of maize.

Registration, Licenses and Certification You should register the business name of the maize mill and acquire a trading license from the local authorities. These documents can be used when applying for contracts or tenders to supply products to schools, hospitals and animal feed dealers among others. It is also recommended to acquire certification from the Uganda National Bureau of Standards (UNBS) or inquire from their local offices on the food safety requirements of setting up a maize mill processing unit and store.

Start-up Costs If you have little money, you can start with a small unit (100 kg/hour) and save on buildings and engines. If you have a power connection, you can use motors.

The investment costs for such a set-up are below UGX 20 million for a functional set.

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This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

If you can afford it, you may set-up a fully professional outfit with a medium capacity of 700 kg/hr, proper buildings and engines for all the machines. This may cost you around UGX 40 million.

Start-up Costs for Maize Mill with the capacity of 100 and of 700 kg per hour (UGX)

Description

100 kg/hr

700 kg/hr

Legal Requirements

Business Registration

15,000

15,000

Trading Licenses

100,000

250,000

You are operating from an existing building

15,000,000

Maize thresher with diesel engine (7 H.P)

2,300,000

2,300,000

Maize Huller

3,600,000

5,000,000

Diesel Engine for huller

2,500,000

3,200,000

Construction of Structure Processing Unit (6 x 7 x 4m) Store for Raw material (6 x 5 x 4m) Store for maize flour (5 x 4 x 4m) Machines and Equipment

Maize Mill

3,200,000

5,000 ,000

Diesel Engine for Mill

Shared with engine for huller

3,200,000

Base Frames and Bolts

500,000

750,000

1,000,000

Transportation and installation

3,200,000

4,590,000

Moisture meter, weighing scale and safety equipment

1,700,000

2,500,000

Total costs

17,115,000

43,415,000

Bag Closer

Operating costs The operating costs to keep a mill going are usually underestimated. Your mill will literary grind to a halt when you have no funds to pay for the maize, the fuel, salaries and machine maintenance costs. The table below shows that you need almost UGX 900,000 to mill 1 ton (1000 kg or 20 bags) of maize, which is the maximum daily capacity of a small mill. The highest expense is the maize itself, which you may not incur when you mill somebody else’s maize.

32

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Operating costs (all costs in UGX per ton of maize) Maize

UGX/ton 800,000

Power/fuel

50,000

Salaries

20,000

Depreciation (10%/year on investment)

2,500

Service and Maintenance (20%/year on investment)

5,000

Pest control

50

Stationary and printing

25

Marketing

10

Sacks

17,000

Cost per ton including maize

894,585

Cost per kilo excluding maize

95 maize market: you buy the maize cheap, store it well, mill at your own pace and sell flour when the price is high. This requires additional capital, and increases the risks of your enterprise, for instance if the maize price does not go up as much as you had anticipated.

The cost of fuel is also considerable, irrespective of using diesel engines or electrical motors. The power costs can be minimized by keeping your machine in good condition. This means regular service and replacing parts as soon as they are worn out. Although many mill operators are trying to save costs by delaying machine maintenance, in actual fact it increases your costs due to inefficient machine operations, and reduces the quality, and therefore price, of your final product.

You can increase your turnover by trying to win supply contracts from big companies and organisations, such as schools, hospitals and the World Food Programme. Such contracts can be more profitable because of economies of scale, but usually demand high quality and delivery standards.

Pricing The pricing of your maize flour depends on your operating costs. The cost of milling does not fluctuate much over the year, but will slowly increase with the general price increases of fuel, salaries and other operational items. The table above shows that the minimum cost of milling will be around UGX 100 per kg, but can go as high as UGX 130 per kg for milling alone if the machines are worn out. To make a profit you would have to price your milling at UGX 130 to 150 per kg, excluding the cost of maize itself.

Payback period With a small unit that is efficiently operated you may be able to mill around 200-250 tons maize in a year, which will give you an income of around UGX 6-10 million and a pay-back period of 2-3 years.

The larger outfit when fully operational and well maintained can mill around 1,500 tons per year. This would give you a pay-back period of 1-2 years.

For more information, contact the partner of ALREP/KALIP: Private Sector Foundation Uganda www.psfuganda.org.ug

When you buy and mill maize, you can make an additional profit by playing the 33

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Contacts M: 0772 621 223, 0781 551 624.

E: huangpai@utlonline.co.ug.

P/S: Wheat & maize milling equipments, rice hullers, cooking oil and juice extractors, walking tractors and other machines.

Plot 27, Luthuli Avenue, Bugolobi (Opposite Uganda Batteries Ltd) P.O. Box 8338, Kampala T: +256 414 221 363. M: +256 783 145 518 F: +256 414 221 363 E: brazafric-ug@brazafric.com, W: www.brazafric.com

Musa Body Machinery (U) Ltd Contact: Hadad Ssebunza, Tech. Supervisor.

Plot 1080, Katwe, Kampala.

T: 0312 283 351, 0312 515 438.

M: 0772/0702 917 518.

E: musabody2000@yahoo.com.

W: www.musabodygroup.com.

P/S: deals in Agro-Processing Machinery, carpentry machinery, animal feed machinery, construction machinery, food processing machinery, small scale business machinery, equipment supply, metal fabrication & steel works.

P/S: Coffee and grain processing equipment China Machines Jinja Road, Lugogo Show Ground, Kampala T: 0414 223 740.

M: 0772 621 223, 0781 551 624.

E: huangpai@utlonline.co.ug.

P/S: Wheat & maize milling equipments, rice hullers, cooking oil and juice extractors, walking tractors and other machines.

China North Machine Co. Ltd Plot 24, Jinja Road (Opp. Bank of Africa), Kampala. M: 0702 226 282, 0776 288 555.

E: cnmuganda@yahoo.com.

W: www.cnmuganda.com.

P/S: Tractors, Ox-plough, Water equipments, Irrigation systems, Generator, Maize mills, Rice Thresher, Peanut huller, Chaff cutter etc.

Tonnet Agro Engineering Co.Ltd Plot 699, Gayaza Road, Kyebando (Behind Fish Factory), Kampala.

T: 0414 373 324, 0312 299 176.

M: 0772 413 754.

E: jmkavuma@yahoo.co.uk, info@tonnetagro.com.

W: www.tonnetagro.com.

P/S: Manufacturers of agro/food processing machines, spare parts and agro-implements (coffee pulper machine, rice thresher, hydraulic cassava press, grain drier, cob milling machine e.t.c.).

China Huangpai Food Machines (U) Ltd Jinja Road, Lugogo Show Ground, Kampala T: 0414 223 740.

Zuru Model Farm Ltd. Contact: Fred Kigozi. M. 0712 432 773 P/S: Miller for maize mill and brand.

For more contacts, visit www.agasha.com, or buy the Agribusiness Directory 34

Farming and Production

Photo: ALREP/KALIP (www.opm.nulep.org)

AgriExperts Guide

Contract Farming • The buyer often provides the agroinputs and advisory services to guarantee the quality and quantity of the produce.

What is Contract Farming?

Most farmers in Uganda plant a crop and start looking for a buyer after harvesting.

In contract farming, a farmer agrees in advance to grow and supply a specified quantity, quality and variety of the produce and the buyer commits to buy the crop at a pre-set price. The agreement is laid down in a formal contract, which is usually signed before the farmer plants.

Based on the contract, the farmer can often access technical support services, finance loans, seeds, fertilizers, tools and other agro-inputs. At the same time, the buyer gets a guaranteed and steady supply of produce and has control over the quality of the final product.

Sun flower contract farming

Buyers gain the following benefits from contract farming:

In Uganda, contract farming is practiced for sorghum, sunflower, sugarcane, soya beans, simsim, barley and maize. Companies that offer crop contracts include: AgriNet Uganda, AfroKai Ltd, Gulu Agricultural Development Corporation (GADC), Mukwano Industries Ltd, Uganda Breweries Limited, East African Breweries Limited and Mt. Meru Millers among others. Some of these, such as AgriNet, are brokers for other companies.

• The buyer is assured of specified quantities, qualities and delivery times of his raw materials. Just like the farmers, it helps him to plan his investments and operations. It allows him to start looking for markets early, and close forward contracts with his clients.

• Because in contract farming the volumes are usually large and concentrated in specific locations, the delivery of inputs and other services, and the collection and transportation of produce can be done more efficiently. This reduces production costs for the farmer and the buyer, and eventually the cost of the final product for the consumer.

What are the benefits of Contract Farming?

Farmers benefit in the following ways: • Farmers are assured of a buyer and a price. This helps the farmer to plan and project his income and profit margins, and make informed decisions about his farming strategy and investments.

• The crop contract usually gives the farmer access to loans from banks, which can be used to make the required investments in seeds and inputs to meet the agreed quantity and quality of product.

How to become a successful contract farmer?

The basis for a successful contract farming operation is the crop contract between the farmer and the buyer. If you are a farmer, 37

THE REPUBLIC OF UGANDA

This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

this is what you need to know before you sign a crop contract:

you are not sure seek technical or legal advice;

• Have full knowledge the contracted crop. You should understand all aspects of crop husbandry, such as the best varieties, inputs, soil type, season, weather, yields, and how to control pests, diseases, and weeds; • Make sure you have the labour or machinery to grow the agreed quantity;

• Be aware that a cropping contract is a formal agreement, which is legally enforceable. It is illegal not to meet the obligations under the contract.

After receiving and confirming the contract, store it in a safe place. Ensure that any contract changes are confirmed in writing. Internalise the general conditions to the contract.

• Make sure you have access to cash to pay for all the husbandry practices;

Be aware of the pitfalls!

Contract Farming has also been associated with some challenges by both farmers and buyers. Typically, farmers may be tempted to side-sell their crop to another buyer who offers a higher price on the spot. This short-term gain comes at a very high longterm cost. Apart from a possible court case, the buyer will stop doing business with the farmer in future, and the farmer will not only lose a secure source of income, but also access to loans, inputs and advice.

• Before contract negotiations, make sure you understand the prevailing market, varieties, grades, buyers and prices. This helps you to negotiate the best possible deal; • During negotiations note down every aspect of the agreement, and make sure that the final contract is in conformity with the outcome of the negotiations.

• Study the contract carefully. It must mention at least: the parties and their contacts; the date of signing; two witnesses; the crop (including the variety); the quantity and tolerance for overshooting or missing the target quantity; the unit of measurement (bags or kgs); the price per kilo (inclusive or exclusive of taxes and duties); the grade (such as colour and size of grain, moisture content, % foreign bodies); the delivery terms (farm gate or warehouse, transport and handling charges); the payment terms; broker fees if any; the services from the buyer (such as credit, inputs, advice); premiums or discounts applicable, rules for amendments, arbitration and termination and sanctions and penalties for breach of contract;

The contract must be a simple as possible, and protect the interest of the buyer and the farmer. Buyers need to explain the full content of the contract to the farmers, including the small print. Only when both parties feel that they have benefitted from the deal, a longer term and profitable relationship can develop.

For more information, contact the partner of ALREP/KALIP: AgriNet Uganda Limited Plot 209 Upper Mawanda Road, Old Mulago Hill Kamwokya P.O Box 22130 Kampala, Uganda Tel/Fax: 0414 53 06 96.

Mob: 0772 49 59 50 Email: admin@agrinetug.net.

Website: www.agrinetug.net

• Weigh the advantages and disadvantages of contract farming. If 38

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This article is sponsored by the Northern Uganda Agriculture Livelihoods Recovery Programme (ALREP), and the Karamoja Livelihoods Programme (KALIP). ALREP and KALIP are implemented by the Government of Uganda and financed by the 10th European Development Fund.

AgriExperts Guide

Contacts Â

Contact: Paul Nyende, Managing Director.

Mount Olive Country Mall 2nd Floor, Suite No.8, Ntinda - Naalya Road, Kampala.

M: 0772 495 950, 0701 495 950.

E: admin@agrinetug.net W: www.agrinetug.net.

P/S: market information service provider and market broker for agricultural inputs, commodities, animal feeds and services.

Afro Kai Ltd Contact: Chris Kaijuka. Plot 12-1, Wilson Road, Nande Towers, Kampala.

M: 0783 657 910.

P/S: maize and sorghum traders.

East African Breweries (EABL) Contact: Kawuki Joseph, Agribusiness Manager.

Plot 3-17, Port Bell Road, Luzira, Kampala.

T: 0312 210 011. M: 0772 720 360.

E: joseph.k.kawuki@diageo.com.

W: www.eabl.com.

P/S: Promotion of sorghum and barley production through growing and supply contractual arrangements.

Janet Akii Bua Farmer, Lira M. 0752 656 692, 0704 311 530 E: janet.akiibua@gmail.com P/S: Sorghum contract farming with Nile Breweries

Mukwano Industries (U) Ltd. Plot 30, Mukwano Rd, Ind. Area, Kampala T: 0414 313 200/3 Toll Free: 0800 200 070.

E: noorali.m@mukwano.com.

W: www.mukwano.com P/S: buyers of oil seeds (sunflower and soya beans) to produce quality edible vegetable cooking oil; and maize to process maize flour; the by-products are used to make oil seed meals as animal feeds.

Mount Meru Millers (U) Limited Contact: Agnes Eyotaru, Extension Officer.

Lira. M: 0774 429 050.

W: www.mtmerugroup.com.

P/S: buyers of sunflower and soyabeans directly from farmers.

Nile Breweries Limited Plot 6-10 Portbell Road, Kampala T: 031 2 210 008, 0332 210 009 E: corporateaffairs@ug.sabmiller.com W: www.nilebreweries.com. P/S: buys sorghum, maize, barley and other agricultural produce as raw materials for beer brewing

Transfarm

AFRICA Your Business Partner in Large-Scale Farming TransFarm Africa Services Kironde Rd., Plot 924, Muyenga, Kampala.

Tel: +256 776 888 424.

Email: info@transfarmafrica.co Web: http://www.transfarmafrica.co Services: independent agriculture investment management firm and advisory services provider in large-scale farming

39

Youth in Agriculture

Photo: Sulma Foods Ltd. (www.sulmafoods.co.ug

Discussion Forum What should be done to encourage Ugandan youth to participate in commercial Agriculture?

Uganda’s population is dominated by the youth, most of which are unemployed or underemployed. At the same time, Uganda is often described as the food basket of East Africa and Agriculture ranks among the major economic activities in the country. However, most youth prefer other jobs to farming. In your opinion, what should be done to encourage Ugandan youth to participate in commercial Agriculture?

To participate in the discussion, visit AgriProFocus Uganda online platform and post your opinion: http://apf-uganda.ning.com/ forum/topics/what-shouldbe-done-to-encourageparticipation-of-ugandanyouth

Andrew Kiggundu, Executive Director, Papyrus Biotechnology Modernize agriculture using all the available high-tech. Youth will then see it as cool. For instance, use of high tech irrigation and computer aided farming can help this young person to make a small office and farm with ICT. That way it will be clean, cool and rocks!!

Arnest Sebbumba, Programme Coordinator, Countryside Youth Foundation Inspire the youth by showcasing successful youths using online facebook platforms. We could borrow a leaf from the young farmer’s platform in Kenya-Mkulima Young.

Brian Tayebwa, Youth from Kanungu The youth should start saving in order to go into agribusiness. We should stop begging government (Tusaba Gavumenti Etuyambe). This is a serious handicap stopping for the youth to engage in agriculture.

Charles Ssekatawa, self-employed young farmer Study Tours and Farm visits will awaken the minds of the Youth to take up Agriculture.

For example, I made several visits to Mr. Paul Ssembeguya’s farm in Ssembabule before starting up and I am now a successful farmer Danny Jibril, already commercial youth farmer There must be market for the products of the enterprises they engage in, their capacities should be built in terms of business planning so that they have access to credit with documentation about their direction.

Elizabeth Asiimwe, Agriculture Advisor, Superchem Agro Centre Giving the youth information through Videos. For example instead of showing only Arsenal Vs Man-U in a local kibanda (cinema), extensionists could liase with Kibanda owners and show videos on all levels of the value chain of an agriculture enterprises and then have some youths share success stories on the benefits of engaging in commercial agriculture.

Discuss, share, and find out about the latest innovations in agriculture and food security on Agri-ProFocus online platform and by participating in networking events.

Join the Network Today: http://apf-uganda.ning.com/

Enoth Mbeine, Principal Consultant, FIT Uganda You need to talk the language of the youth and they don’t need to all be in production.

Many can play an active role at the higher end of the value chain i.e. brokerage, transport, processing & marketing. Use of attractive ICT services could go a long way in encouraging them to participate in the value chain Joy Mary Lwanga, Farmer, Shalom Organic Farm Ltd I can’t see the youth engaging in commercial agriculture soon because there are so many gaps that still need to be filled. For example, how can one cultivate five or ten acres of land? We still depend on a hoe and the youth are not used to digging. We no longer have cheap labour. Hiring a tractor is so expensive between Shs.100,000/= to 150,000/= per acre. Irrigation system is still a dream that only a few can afford. The banks are hesitant to lend to small farmers and if they do, the interest rate is between 20 to 28% payable in two years with collateral. No grace period and the risk of losing your land to the bank is very high.

Norbert Onek, NBT Farms The reality on the ground is that youth shun agriculture because there are other alternative businesses that offer returns with fewer risks unlike agriculture. Many youth have currently invested in boda boda because they are sure of daily cashflow which is not the case in agriculture. If we compare an investment of 3million in agriculture and 3 million on a boda boda, where will you put your money if that was all you had?

Omia Razak Iganachi, Agriculture Student, Makerere University As a student and a youth, success stories of fellow youth are paramount to youth involvement in Agriculture. Market for agricultural products and fluctuating prices as well as vagaries of weather are some of the challenges stopping the youth involvement in agriculture.

Contract farming should be encouraged to provide ready market to youth’s products, processing firms to add value and fetch better prices, media support through showcasing stories of successful youth and improved access to agribusiness incubators such as CURAD LTD which offer support to youth agricultural entrepreneurs both technical and financial. But most of all mindset change is important to enable the youth look at agriculture as a profitable venture and not an occupation for the poor and uneducated.

Steve Hodges, Consultant, African Agriculture Risk Management Services Youth should be helped to see agriculture as a small business opportunity with potential for success if it is carefully planned, that includes targeted toward high-value agricultural products or services with profit potential that don’t require high levels of initial financing.

Discuss, share, and find out about the latest innovations in agriculture and food security on Agri-ProFocus online platform and by participating in networking events.

Join the Network Today: http://apf-uganda.ning.com/

Agri-Market Corner To Buy Dry Spilt Ginger Tanzanian based exporters wants dry split ginger from Uganda.

Contact: Silas Ng’habi, +255 785 059 852. singhabi@yahoo.com Maize Grain buyer Wants maize for export Call: 0751 555 555 Fressian Cow 3 pregnant quality fressian cows needed. Call: 0772 641 813 50kg of Barley Seeds needed I want 50kgs of barley seeds in Kampala. Call: 0784 542 889.

For Sell Looking for Agricultural Contacts, Buyers or Suppliers?

Pick a copy of Agribusiness Directory 2014 at Aristoc, Mukono and Uganda Bookshops @10,000/= Imported Milk cooler Selling 2 milk coolers of 3800L and 3500L with a 30kva generator all imported from Netherlands.

Only serious buyers contact Joshua: 0756 304 000.

Fresh Ginger 8 sacks of fresh ginger for sale Call: Byaruhanga-0750 391 070.

Quality Maize Meal and Bran Contact: Fred Kigozi, Zuri Model Farm: 0712 432 773.

Pig Water Nipples Save water by buying pig water nipples. Call: 0773 422 445 Agricultural Land 20 acres land for sale in Oyam that includes a swamp (4km off Oyam district Head Quarters.

Contact Willy: 0776 005 387, willyok39@gmail.com Farm land in Mityana 32 acres of cleared farm land at Kitebere (10km before Mityana town) with a small farm house.

Call: 0751 555 555 Grade 1.5 Maize Meal Large orders preferred.

Call/Whatsapp James: 0752 794 612/0776 784 612 Groundnuts 50 tons of White groundnuts for sale.

Details: 0704 617 781/0755 678 388.

Agri Jobs Looking for a Mechanical Engineer to manage a saw mill, cold room and workshop as well as maintain machinery at farm in Mubende. Agronomist required.

Call or Whatsapp James: 0752 794 612/0776 784 612.

Send CV: jssemwanga@yahoo.com

Register Your BUSINESS in Agribusiness Directory Uganda 2015 Easy, Simple and Free In order to help us improve Agribusiness Directory and serve you better, kindly complete the form below to Register your Business/Organization/Agency or Update the information in this edition for 2015 Agribusiness Directory. Return the form to us before 31st August 2014 by Scanning and E-mailing to directoryagribusiness@gmail.com or Send it to Agasha Group Limited P.O. Box 7133, Kampala-Uganda or Give it to the Data team during Agricultural Events or Bring it to our office: Capital Shoppers - Nakawa, Kampala or visit our web: www.agasha.com REGISTRATION FORM FOR BASIC LISTING IN AGRIBUSINESS DIRECTORY 2015 EDITION FOR BUSINESSES/ORGANIZATIONS/FARMER GROUPS Business Name Contact Person and Title e.g.

CEO, Manager Physical Address (Plot, Street, Town) District of Operation Office Landline Tel. No. (only if active & in use) Mobile Phone No. (1) Mobile Phone No. (2) Email Addresses (use capital letters) Website (if applicable) Facebook Page/Blog Products/Services Description Specialized Sectors Do you want a Premium Listing? Yes ____ No____ Maybe _____ (Tick Option) Do you want to Advertise/Sponsor (Email us for Rates)? Yes __ No ___Maybe ___ (Tick Option) Name of the person submitting information: _________________________________________ Phone: ___________________________________ Signature: ____________________________ Comments: ____________________________________________________________________

Visit us at Capital Shoppers - Nakawa, Kampala - Uganda or call: +256 - 703-698-550, +256-779-791-780 or email: directoryagribusiness@gmail.com www.agasha.com

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Pick a copy of Agribusiness Directory at Aristoc, Mukono and Uganda Bookshops OR, Book advertising space in the 2015 edition Visit us at Capital Shoppers - Nakawa, Kampala, Uganda or call: +256-779-791-780, +256-703-698-550 or email: directoryagribusiness@gmail.com www.facebook.com/directoryagribusiness www.agasha.com

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