28th National Agriculture Show Theme: Fostering Resilient Commercial Agriculture for Agro Industrialisation and wealth creation 5th August,-14th2022 JINJAGROUNDSSHOW Supported By: Government to Boost commercial agriculture - Hon. Frank Tumwebaze Promoting Commercial Agriculture for Agro Industrialisation and wealth creation What to expect at the Source of the 28th National Agriculture Show? FEATURE INTERVIEWAGRO-INDUSTRIALISATION y Other Products Include: Okra, Watermelon, Tomatoes, Carrot, Onion, Sukuma Wiki, Eggplant, Cabbage & Others FORTUNE(FH5160) 6 (FH6150) LONGE MAIZEAVAILABLE9HVARIETIES Realise Agricultural Transformation through adoption of high yielding & quick maturity hybrid Maize varieties. SOURCE OF THE NILE NATIONAL
Contents Volume 003 | August 2022 What farmers should expect from researchers at the 28th National Agriculture Show? Government to Boost commercial agriculture Farmers to learn to interface with technology promoters at the Show Data and the Small Scale farmer conundrum in Africa Promoting Commercial Agriculture for IndustrialisationAgroand wealth Wherecreationfarmers can access agriculture credit to match the Agro industrialisation Agenda How the Government is positioning farmers for commercial agriculture 2/ 31/ 35/ 16/ 6/ 12/ 20/ FEATURE TECHNOLOGYINTERVIEWOPINIONAGRO-INDUSTRIALISATIONAGRO-FINANCING COMMERCIAL AGRICULTURE SOURCE OF THE NILE NATIONAL Published by; Slick Republic Limited Audry House, Kampala-UgandaNaalya +256 774 916 019, +256 703 slickrep256@gmail.com537402 Team Managing Director/ Coordinator Peter Mugeni Head Sales & Marketing Ariko Martin Business Development Managers Jessy Hamala, Martin Mangusho Writers/ Contributors Solomon Kalema, Prossy Lyaka, Kelvin Odoobo Disclaimer The views expressed in this publication are not necessarily those of the publisher. 5th -14th August, 2022 128th National Agriculture Show Magazine
What farmers should expect from researchers at the 28th National Agriculture Show?
Unfortunately, 68% of the popula tion in agriculture is mainly smallscale farmers. It is estimated by the Ministry of agriculture that those smallholder farmers in subsistence farming account for 39%. That means they only grow food for consumption and not for commer cial purposes. Because they have remained small-scale, they cannot access agro-inputs and technol ogies that would improve their productivity. However, all hope is not lost, be cause through the National Agricul ture Research Organisation (NARO) farmers can learn about the existing technologies that suit their needs. How can farmers access the technologies? Although many may find it hard to access such technologies, through Agriculture in Uganda is at crossroads. This is because it has to battle climate change, emerging challenges such as the high cost of agro-inputs like seeds, fertilisers, pesticides, and also a weak extension system. And yet the sector feeds close to 44 million Ugandans. By Prossy Lyaka
Besides, it is said to be the biggest contributor to the country’s export earnings.
Students learn about banana value addition at NARO stall during the 1st National Educational Agricultural Show held in Jinja.
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Geoffrey Ochieng shows the UH5051 maize variety on his farm in northern Uganda.
5th -14th August, 2022 FEATURE 328th National Agriculture Show Magazine agriculture shows and exhibitions, farmers can easily learn about the existing technologies. That is why at the 28th National Agriculture Show, NARO is set to showcase the latest technologies from research that farmers can adopt and improve their produc tivity. NARO’s Deputy Director General in charge of Agriculture Technology Promotion, Dr Sadik Kassim said NARO is set to exhibit all the 1000 researched and superior technolo gies that all farmers can access and improve their productivity. It is no longer an option to carry out farming the usual way because climate change is real, and has been witnessed by all of us, it’s high time we adopted improved crop varieties and other technologies to remain productive,” said Kassim.
The 28th Source of the Nile Na tional Agricultural Show will run from 5th to 14th August 2022, in Jinja, under the theme “Fostering Resilient Commercial Agriculture for Agro Industrialisation and wealth creation” Technologies to be displayed at the show Dr Kassim explained that they have selected crop varieties that can be considered in the second farming season. For maize, he advises farmers to plant drought tolerant maize like MM3, which are open-pollinated varieties, very early maturing, others are Bazooka, and Longe 10 hybrids UH5051 which are available in most seed compa nies including FICA Seeds, Simba Seeds and East Africa Seed, among Heothers.also advised farmers to look out for sweet potato verities, although most of these are early maturing, easily creates biomass hence for food security. Away from food security, he also advises that they should go for fortified varieties like Vitamin A-rich potatoes, commonly referred to as kipapapali by the farming communities. Another food item that farmers should look out for include cassava that matures early, like between 9 to 12 months, for both food con sumption and the market. Others include oil seeds like groundnuts, simsim, soybeans and sunflower. Conservation agriculture technologies He also advises farmers to consider Conservation Agriculture Practices now that the country is grappling with the effects of climate change. These include mulching, which is the covering of the soil with crop residues like grass, maize stovers, Dr Sadik Kassim, NARO’s Deputy Director General in charge of Agriculture Technology Promotion
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grass and dry banana leaves to prevent water from escaping from the soil for plants. When ploughing, farmers should use simple technologies like rippers, found at NARO’s machinery station of Namalere. These only open up holes for seed, leaving the portion of land covered, hence conserving nutrients and soil moisture. Also, terracing is another conser vation agriculture that traps water from the runoff, saving nutrients for the crop. Others include the use of permanent planting basins, a crop production method which enhances the capture and storage of rainwater and allows precision application and utilisation of limited plant nutrients. Water conservation Although the government is in the process of extending irrigation facil ities across the country, Dr. Kassim advises farmers to invest in water storage facilities for both domestic use and farm work For example, digging up under ground water tanks keeps water for livestock and irrigation of crops in the backyards, such as vegetables. Water harvested in tanks can be for domestic use among others. Those living around large water bodies and small water sources should go for irrigation using sim ple methods of fetching water in jerry cans or mineral water bottles like it was demonstrated by the President some time back, as they wait for the rains. “All we need is how farmers can program themselves to produce enough food and preserve them and also for livestock in form of hay and silage,” he added. NARO’s Deputy Director General, Dr Sadik Kassim said his organisation is set to exhibit all the 1000 researched and superior technologies that all farmers can access and improve their productivity.President Yoweri Museveni inspects some of the farm equipment made by Katwe-based Musa Body at Namalere Agricultural Referral Mechanisation Centre. Such equipment will help increase productivity, production, and marketable volumes of agricultural products.
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Kakira Sugar Ltd, flagship Company of The Madhvani Group, operating since 1930’s. Our prime asset is over 12,600 direct employees and indirectly supporting the livelihood of more than 150,000 citizens in South Busoga Region. Kakira provides social infrastructure such as staff housing, green electricity, safe drinking water , roads, a 75 beds hospital with modern diagnosis facilities and 16 schools making us one of the kind that is delivering amenities on such large scale to the employees and community at large. We also support and engage 9,500 registered farmers spread across 22 sub-counties to enhance their life in many ways. Our People - Our Wealth Kakira Sugar Ltd Jinja, Uganda . + 256414 444000 Email: sales@kakirasugar.com
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Kakira Sugar Ltd, flagship Company of The Madhvani Group, operating since 1930’s. Our prime asset is over 12,600 direct employees and indirectly supporting the livelihood of more than 150,000 citizens in South Busoga Region. provides social infrastructure such as staff housing, green electricity, safe drinking water roads, a 75 beds hospital with modern diagnosis facilities and 16 schools making us one of the kind that is delivering amenities on such large scale to the employees community large. also support and engage 9,500 registered farmers spread across 22 sub-counties to enhance their life in many ways. Our People - Our Wealth Kakira Sugar Ltd Jinja, Uganda . + 256414 444000 Email:www.kakirasugar.comsales@kakirasugar.com
Ton per Day BagasseFilterMolassesCake Steam+Power Kakira Sugar Ltd, flagship Company of The Madhvani Group, operating since 1930’s. Our prime asset is over 12,600 direct employees and indirectly supporting the livelihood of more than 150,000 citizens in South Busoga Region. Kakira provides social infrastructure such as staff housing, green electricity, safe drinking water , roads, a 75 beds hospital with modern diagnosis facilities and 16 schools making us one of the kind that is delivering amenities on such large scale to the employees and community at large. We also support and engage 9,500 registered farmers spread across 22 sub-counties to enhance their life in many ways. Our People - Our Wealth Kakira Sugar Ltd Jinja, Uganda . + 256414 444000 Email:www.kakirasugar.comsales@kakirasugar.com Carbon Neutral Vertical Integration DistilleryEthanol 22,000,000 Litres Extra Neutral Alcohol per Potableyear Spirits (Waragi Wild Crane, Kakira Gin, Rum, Vodka) Hand Sanitizer PlantationSugarcane 15,670 Hectares (KSL) 30,000 Hectares (Outgrowers) ProcessingSugarcane 185,000 tons per year Green GenerationElectricity 51 MW Total 32 MW to Grid Bio-Compost Ash 400PowerKW/hCane 8,000 Ton per Day BagasseFilterMolassesCake Steam+Power
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SOLOMON AgriculturalMUSISIKALEMAEconomist
Aside from remarkable growth in exports, Uganda’s capacity to feed both her people and the region was also weighed by the same shocks, simultaneously with climate
KnowledgeSpecialistManagement
Questioning Uganda’s pillars of de pendence during the 2020-2021 era is one aspect of COVID-19 that may pass as a blessing in disguise. Without a direct and historically unique adjustment to budgetary allocations to the sector, Agriculture, from analysts’ point of view appeared to prove a close to surprise level of resilience. This was showcased by most notably, among other sub-sectors, Coffee, where Uganda managed to export even more Coffee between March 2020 and Febru ary 2021 by hitting a total of 5.56 million bags worth $511.21 million, higher than the 4.74 million bags worth $459.47 million exported in the previous year.
The year 2022, being the first year after the peak COVID-19 era, has come with the first of a new series of agricultural shows in Uganda. New in the sense that they are the first platforms to showcase whether the country picked or ignored lessons from COVID shocks.
Promoting Commercial Agriculture for Agro Industrialisation and wealth creation
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28th National Agriculture Show Magazine change and the fast-growing young population. And while recent headlines on cli mate and weather-related disasters, hunger and malnutrition suggest several gaps, agricultural shows organised around themes that match the times should serve to show how the country can thrive and sail above these hurdles. Why the drive for commercialisation
In the year 1993 when the first Source of the Nile National Agricul tural and Trade Show was held in Jinja, the proportion of Ugandans living in poverty was 56.4%, going by World Bank figures. That figure, seen through the Bank’s Poverty and Equity Brief dipped to 24. 5% in 2010, then 21.4% in 2016, averaged 27.5% in years closer to 2019 and then increased to 32.7% after the first lockdown in 2020.
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One common highlight across economic reports on the fight against poverty in Uganda is that “while the country has sustained a winnable fight against poverty, the biggest threat lies in the vulnerability of households that rise above the poverty line to return to levels below the same line.” As the theme of this year’s Agri cultural Show suggests, it is time for sector stakeholders to prioritise strategies for resilience and placing dependable income in the pockets of Ugandans engaged in agriculture. This remains a key factor for the success of major running plans like the third National Development Plan and development models like the Parish Development Model that was launched by His Excellency President Yoweri Museveni on the 27th of February 2022. With the right enterprises and enough knowledge to run them sus tainably, farmers have an opportunity in the Parish Development Model, as the design suggests. Water, Agricultural Technologies and the uptake hurdle The interventions for developing Ag riculture are being channelled through a multi-sectoral approach, but with one common objective of maximising production and productivity. Here, one of the sectors is the Ag ricultural Sector where the Ministry of Agriculture, Animal Industry and Fisheries takes a lead role from the side of the public sector. Through the Ministry, a national Irri gation MasterPlan has been complet ed, simultaneously with notable steps in improving irrigation to increase availability and access to water for Agricultural Production. This should serve as a step towards increasing resilience, especially against adverse effects of climate change and chang ing weather patterns. Out of 8 irrigation schemes planned for, 7 irrigation schemes were com pleted by the close of Financial Year 2020/21, adding to Mubuku I, Doho I and Agoro irrigation schemes that had already been completed. The 7 schemes include the Ngenge Irrigation Scheme in Kween district, Rwengaaju in Kabarole, Tochi in Oyam, Mubuku II in Kasese, Olweny in Lira, Doho II in Butaleja and Wade lai in Pakwach. With the completion of these schemes, the total area under formal irrigation has increased by 4,476 hectares and the growing of rice and horticulture (onions, green pepper, tomatoes, watermelons and cab bages) among other enterprises is being promoted through the same Thereschemes.isan opportunity in mobilising farmers rallied by these irrigation schemes to get a boost from the Parish Development Model, produce more and gain more profitability from commercial agriculture.
Caption: Agriculture Minister Hon. Frank Tumwebaze and MAAIF Permanent Secretary Maj. Gen. David Kasura-Kyomukama at the handover of two 75 Horse Power tractors to 2 women farmer groups, one from Karenga and the other from Bugweri on 18th July 2022.
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Across the country, more areas are set to benefit from these efforts aimed at increasing irrigation. Through the Ministry’s Department of Agricultural Infrastructure, Mech anisation and Water for Agricultural Production, feasibility studies and detailed designs have been complet ed for a new 3,300-hectare irriga tion scheme in Kabuyanda, Isingiro District. As a means of facilitating all-yearround agricultural research, model irrigation schemes have been devel oped to support technology irrigation at public research institutes with one 3-acre mini-irrigation scheme for Maize research in place in Namulonge and one 5-acre seed certification mini-irrigation scheme in Namalere. Another 3-acre scheme for rice research in Namulonge is nearing completion. Here, seven 5-acre solar-powered irrigation systems are also being constructed in 7 Zonal Agricultural Research and Development Institutes (ZARDIs). These ZARDIs are Bulindi, Kamenyamigo, Nabuin, Abi, Bugin yanya, Ngetta and Rwebitaba.
More recently, Government em barked on the rollout of the Uganda Intergovernmental Fiscal Transfers Programme Additional Funding for Ir rigation also known as UgIFT-AF-IRR, through which Micro and small-scale irrigation systems have been con Throughstructed. these systems, the pro gramme is promoting the application of Micro and small-scale irrigation technologies to increase community awareness on irrigation and to train farmers on irrigated agriculture. Here, MAAIF in partnership with 40 District Local Governments con structed 79 micro and small-scale irrigation demonstrations to show case mainly drip, sprinkler and drag hose pipe technologies using solar/ gasoline energy. These efforts were supplemented with the development of 48 so lar-powered water supply and smallscale irrigation systems in 48 parishes in 40 districts through the Ministry of Water and Environment. This move increased the area under irrigation by 965 acres benefitting 10,421 farmers who are dealing mainly in the commercial growing of cabbages, Irish, tomatoes, apples, on ions, pineapples, matooke, coffee, wa termelons, green pepper, eggplants, vanilla, grapes, mangoes, coffee, tea and pumpkins. The districts include Oyam, Omoro, Dokolo, Kitgum, Zombo, Nwoya, Agago, Kiryandongo, Luweero, Nakasongola Nebbi, Pader, Hoima, Kibaale, Kalangala, Buvuma, Mpigi, MAAIF Permanent Secretary Maj. Gen. David Kasura-Kyomukama with Ministry technical team representatives on a tour of ongoing works in completing irrigation schemes
Research has continued to make a major contribution in the form of the release of new crop varieties and improved animal breeds along with research.fisheries
More farmers are set to benefit from the completion of 35 solar-powered small-scale irrigation schemes close to completion in 35 parishes in 31 districts including Zombo, Oyam, Dokolo, Nwoya, Omoro, Agago, Nakasongola, Kiryandongo, Buhweju, Buvuma, Hoima, Ibanda, Isingiro, Ka langala, Kanungu, Kasanda, Kibaale, Kyankwanzi, Kyenjojo, Mbarara, Mpigi, Ntungamo, Rakai, Rukungiri, Soroti, Tororo, Namayingo, Sironko, Kapchorwa, Mayuge and Kayunga. Through the National Agricultural Advisory Services (NAADS), Gov ernment has also procured 44 sets of complete solar-powered wa ter-pumping irrigation systems (of 3 to 7 cubic meters per hour capacity) for 44 targeted sites in 41 districts across the country. The livestock sub-sector is also benefiting from the completion of 28 communal valley tanks in 28 parishes in 21 districts including Nabilatuk, Kotido, Amudat, Kaabong, Karenga, Soroti, Butebo, Kapelebyong, Kumi, Bukedea, Kaabong, Kotido, Lyan tonde, Bugiri, Luweero, Nakasongola, Omoro, Arua, Dokolo, Agago and ThisKayunga.increased water storage capacity by 517 million litres serving an esti mated 69,763 heads of livestock. To further benefit this sub-sector, 8 communal valley tanks are being con structed in 8 parishes in the districts of Nakapiripirit, Mbale, Tororo, Kiry andongo, Nwoya, Kibaale, Kiruhura, Isingiro and Sembabule adding to 35 valley tanks that were completed on individual farms using the Water for Production construction equipment in 9 districts including Kiruhura, Mbarara, Kazo, Ntungamo, Gomba, Sembabule, Rakai, Lyantonde and Mubende. To increase water for production on ranches under the National Animal Genetic Resources Center and Data Bank (NAGRC&DB), more infrastruc ture has been added. This includes water reticulation systems at Kasolwe and Bulago stock farms, 10 valley tanks of 1,600 cubic meter capacity each at Nshaara ranch and 10 valley tanks of 1,600 cubic meter capacity each at Aswa ranch.
The fact that Uganda is one of two countries with the youngest popu lation (with Niger), implies that the most effective means to deliver development through the initiatives highlighted here is through engaging that “massive resource.”
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Silver bullet Agribusiness Incubation
28th National Agriculture Show Magazine Rakai, Kanungu, Rukungiri, Buhweju, Isingiro, Kasanda, Lwengo, Mbarara, Ntungamo, Kayunga, Kaberamaido, Serere, Napak, Bukedea, Busia, Mbale, Kapchorwa, Amuria, Budaka, Butebo, Kumi, Soroti and Kapelebyong.
More recently, research has benefit ed from infrastructural development to facilitate the delivery of these Thisoutputs.isin the form of an Aquaculture Diagnostic Laboratory established at Kajjansi and a Multipurpose Labora tory at the National Coffee Research Institute (NaCORI) in Mukono-Kitu za to support Coffee and Cocoa research where a Tissue Culture laboratory was also constructed.
These are some, among other infra structural changes that are contribut ing to research that delivers the kind of technologies showcased in the NARO Village at the show grounds.
The efforts to boost production and productivity have not only been delivered through irrigation but also through a national agricultural mech anisation drive kickstarted with the official commissioning of 12 pieces of earth-moving equipment and 284 tractors by President Museveni in March of 2019. To date, the government has contin ued to provide tractors to individual large-scale farmers and organised groups through an arrangement based on Memoranda of Under standing with obligations and strict monitoring and maintenance guide lines for the beneficiaries.
Central Role of research in boosting productivity Research has continued to make a major contribution in the form of the release of new crop varieties and improved animal breeds along with fisheries research.
This is being supplemented with the construction of an animal vaccine research and production facility at the National Livestock Resources Re search Institute (NALIRRI) along with a seed sorting plant in Mbarara.
The National Strategy for Youth Em ployment in Agriculture, designed for implementation through the Ministry of Agriculture, Animal Industry and Fisheries as the lead institution, calls for the establishment of an inno vation incubation fund for youth Throughgroups. this strategy, Government also commits to the training of more youth in food processing, packaging, branding and marketing through the support of incubation facilities such as the one at Makerere University known as the Food Science and Technology Business Incubation Centre (FTBIC), Uganda Industrial Research Institute (UIRI) and CURAD housed at Makerere University Agri cultural Research Institute, Kabanyo lo (MUARIK). If these commitments are sustained in investment decisions, Uganda stands a chance of becoming a model country for job and wealth creation through agribusiness incubation in Africa. Improving nutrition through a multi-sectoral approach Efforts to improve nutrition in Ugan da are visible in both private and public sector initiatives and projects.
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Commitments that could deliver jobs and wealth to the youth Going by the requirement for Government to facilitate growth in agribusiness and the creation of dependable jobs and wealth for the youth, much progress could be made if the following commitments from Government are realised. Through NDPIII Government com mits to supporting innovation and incubation through, among other means, strengthening the system of incubation centres to support the growth of SMEs in strategic areas and establishment of an oil and gas Incubation Fund to promote Local Entrepreneurs and SMEs as a way of enhancing local capacity to partici pate in oil and gas operations.
A tested approach to engaging the youth in dependable agribusiness across the globe is through agribusi ness incubation. This approach for a country which is home to the Uganda Industrial Research Institute which is a regional example in incubation and the Con sortium for University Responsive ness to Agribusiness Development (CURAD) which is the best incubator in Africa by African Agribusiness Incubators’ Network (AAIN) rankings could be a model country in this area. This is dependent on how stakehold ers interpret the urgency of investing in incubation in a country where the population is growing at a rate of 3% annually (meaning 1,200,000 Ugandans are born every year) and 10.9% young males aged between 10 and 24 years are heading house holds, 38.5% of young people aged 10-19 live in the two poorest wealth quintiles and 19.6% of young people aged 10-19 live in households where the head of household has no educa tion (This trend is as provided by the United Nations Population Fund).
The government is rolling out a part nership project known as the Uganda Multi-Sectoral Food Security and Nutrition Project supported by the Global Agriculture and Food Security Program (GAFSP) and supervised by the World Bank.
The project is being implemented through the Ministry of Agriculture, Animal Industry and Fisheries in collaboration with the Ministry of Health, the Ministry of Education and Sports and the District Local Governments with general oversight and guidance from the Office of the Prime Minister.
The objective for the rollout of the project currently involving 20 dis tricts, 1500 schools and 300 health facilities in 3000 communities is “To increase production and consump tion of micronutrient-rich foods and utilisation of community-based nutrition services in smallholder households in project areas.”
Plot No. 2981 & 888, Bombo Road, Kawempe, P.O. Box 3678, Kampala, Uganda, Tel: +256-392-773321/ +256-414-566 585, Email: info.ug@easeed.com, Website: www.easeed.com, BRANCH: Plot No. 5/7/8 “Farmers’ Mall” Shop No. ML:3 Nakivubo Road, Container Village Mob: 0700 399409, 0783 669109, VAN SALES: Eastern: 0704 223308, Western: 0704 223309, Northern: 0700 223314, Mid-West: 0700 223321, URBAN: 0700 223322 SYOVA SEED (U) LTD We deliver high quality inputs to the farmers (Seeds, Agro Chemicals, Tools & Equipments) An Integrated Solution Provider for Plant ProtectionI n n o v a t o n V a l u e P r o g r e s s EASEED KHBCOMPANIESGROUPARAKAF1500-43AR MAIZE LONGE 8H A Medium Maturity Hybrid Maize. LONGE 8H an indigenous Hybrid Maize developed by NARO Scientists. It is d h & CROP HYBRID MAIZE LONGE 8HLONGE 8H PAN GALLANT15 F1 WILLOSATE 360SL Glyphosate 360 gm litre HERBICIDES ASCOSATE 480SL Glyphosate 360 gm/l WINNER 72 WP Mancozeb 640g/kg + Metalaxyl 80g/kg INSECTICIDESFUNGICIDESPROFECRON 44 EC Profenofos 400 gms + Cypermethrin 40 gms litre CYPERSCOPE 5 EC Cypermethrin 50 gms ASCOZEBlitre 80 WP mancozeb 800gm/kg ASCORIS 48 EC Chlorpyrifos 480 gm/litre ASCOSULPH 80 WDG Sulpher 800 gm/kg EUREKA 72 WP Mancozeb 640 gm/kg + Metalaxyl 80gm/kg ASCOPPER 50 WP Copper Oxy Chloride 500 gms Kg THRASH 56 EC (2-4D amine 20% + Propanil 36%) (2-4D amine salt 720 g/L) RICOPE 2-4D VEGIMAX(FoliarFertilizer) The Natural Plant Food Supplement R FOLIAR FERTILIZER SICOMETRYN 500 SC Ametryn 500 g/l RAPID 50 SC Carbendazim 500 g/lt CONQUER 75.7 SG Glyphosate-ammonium 75.7% SG INSECTICIDE DIMETHRIN 28 EC (Dimethoate 25% + Cypermethrin 3%) SUKARI F1 FANAKA F1 BIG BELL RED SANGA F1 CYCHLORNEW55%EC I n n o v a t i o n V a l u e P r o g r e s s
The agricultural sector is the backbone of Uganda’s economy. It contributes 24 % to the country’s GDP. It is also estimated that the sector employs close to 80% of the population.
Where farmers can access agriculture credit to match the Agro industrialisation Agenda
By Prossy Lyaka
And yet the government is banking on the agriculture sector, as a path towards a middle-income country and also for the attainment of some of its objectives under Vision 2040.
diseases, Desert locusts in addi tion floods, mudslides, prolonged droughts, high cost of labour among This group also lacks collateral to tap into credit facilities under the Bank of Uganda, UDB, and the Microfinance Support Center, among others.
28th National Agriculture Show Magazine
Ag R o-Ind U s TRIA l I z ATI on
That is why through programs like Agro Industrialisation is group, the government wants to address the above challenges to lift such farmers
PIBID Products made from bananas.
President Yoweri Museveni at the commissioning of a mango fruit factory in Yumbe district. In this financial year, Uganda Development Bank (UDB) was capitalized to the tune of Shs. 636 billion and was disbursed by May 2022 at an interest rate of 12 percent per annum.
Agroindustral isation is one of the 18 programs, which seeks to address challenges such as low production, poor market access, low competitiveness, limited access to agricultural finance and services, among others. While reading the budget recently, finance minister, Matia Kasaija, said the government has set aside funds through the different channels to be accessed by all including farmers and the business community, termed as relief and recovery funds. These relief funds include the Small Business Recovery Fund; the Emy ooga Fund; Microfinance Credit to SACCOs; the Uganda Development Bank (UDB) and Uganda Develop ment Corporation (UDC). In this financial year, Uganda Devel opment Bank (UDB) was capitalized to the tune of Shs. 636 billion and was disbursed by May 2022 at an interest rate of 12 percent per annum. In addition, UDB plans to disburse further Shs. 351 billion by December this year; Funds under UDB Even though these finances are available, many farmers have no idea how to access them. But according to the financiers above, farmers can only access the funds as per the set Forrequirements.example,UDB currently funds projects in Agro-industrialisation, therefor the bank funds the pur chase of Agro-processing equip ment needed to add value to the agricultural produce; construction of factory warehouses, plants and machinery; provision of needed working capital to finance the operations of the business and fi nancing post-harvest handling such as storage equipment like silos. To effectively, deliver, they work with organised and registered farmer groups including cooperatives. Funds under UDC For private sector enterprises engaged in strategic industrial development of the country, such as agro-processing, manufacturing, and minerals beneficiation, the Uganda Development Corporation (UDC) received Shs. 160.7 billion this financial year to make equity joint venture investments. Under ACF The Agricultural Credit Facility (ACF) was set up by the Government of Uganda (GoU) in partnership with Commercial Banks, Uganda Devel opment Bank Ltd (UDBL), Micro Deposit Taking Institutions (MDIs) and Credit Institutions referred to as Participating Financial Institutions (PFIs). The aim was to provide medium and long-term financing to projects engaged in agriculture and agro-pro cessing, focusing mainly on com mercialisation and value addition. In the Financial Year 2021/2022, the Agricultural Credit Facility dis bursed a total of Shs. 67.42 billion to 1,057 borrowers as of June 2022. Cumulatively, the fund has financed a total of 3,120 farmers across the country to a tune of Shs. 737.30 billion.
5th -14th August, 2022 Ag R o-Ind U s TRIA l I z ATI on 1328th National Agriculture Show Magazine still locked into subsistence to com mercial agriculture. This has already been highlighted in the National Development Plan (NDPIII) as one of the Accordingprograms.toNDPIII,
The Agricultural Credit Facility (ACF)
The Agricultural Credit Facility and Small Business Recovery Fund
Grainmanagement.tradeand agro-processing attract high loan amounts due to the need for high financing requirements by grain traders to be able to mop up the excess grain on the market. On the other hand, the on-farm activities constitute the highest number of MSMEs, which comprise the biggest majority of the agricultural sector and are the engine of job creation. The financing needs of farmers in this category include; farm expansion and improvement, installation of valley dams and acquisition of irrigation equipment, land opening (green fields), inputs for primary production such Promoting agro-industrialization through financing silos and agroprocessing equipment
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The ACF is a Government initiative that was estab lished in response to the second round of effects of the global economic crisis that manifested themselves through hiked food prices on the global and domestic markets amongst others. Annual food crops inflation rose from 1.7 percent in April 2008 to 48.3 percent in September 2009. On average, monthly annual food crops inflation for the two financial years 2008/09 and 2009/10 was 26.2 percent which necessitated an urgent intervention to forestall the spillover of these price increases into overall/headline inflation.
The ACF scheme was operationalized in October 2009 with the main objective of promoting the commercializa tion of agriculture by providing medium and long-term financing to projects engaged in agriculture and agro-pro cessing focusing mainly on value addition. The maximum loan tenure is 8 years including a grace period of up to 3 years. Although the facility was designed mainly to cater for commercial farmers and agro-processors, other Small and Medium Enterprises (SMEs) have also bene fited through farmer associations/groups that comprise out-growers. Most of the SMEs include those involved in poultry farming, fruit growing, acquiring tractors for land opening and milk coolers among others. There has been a concerted effort by the government to accommodate as many farmers as possible. Consequently, the terms and conditions of loan access have been modified during the operational years to facilitate the participation of Micro, Small and Medium Enterprises (MSMEs) engaged in the agricultural value chain, and the Grain Trade. The standard interest rate for ACF funds is capped at 12% per annum. As at March 31, 2022, the ACF had received 2,488 applications for UGX 1.04 trillion, out of which 2,063 projects were funded with UGX 669.88 billion. Of this loan portfolio, 74 percent were small and medium enterprises (MSMEs). Of the total funding disbursed, 37 percent was towards working capital for grain trade, 30 percent for on-farm activities and 19 percent related to Agro-processing and 14 percent for post-harvest
The Small Business Recovery Fund (SBRF) Please find further information, Please Contact: The Executive Director of Finance, Bank of Uganda Plot 37/45 Kampala, Uganda, Tel: 256-41-258441/9 Email: info@bou.or.ug or ACF@bou.or.ug and Or visit out website on; www.bou.or.ug
The eligible borrowers under SBRF include; Small businesses operated by individuals, groups, partnerships and companies, employing between 5-49 people and with the annual turnover of UGX 10 million to UGX 100 million.
In the same effort of revitalizing the economy, the GoU has recently launched a Small Business Recovery Fund (SBRF) to provide funding to small businesses that have suffered financial distress arising from the effects of the covid-19-Pandemic and can show potential for recovery if provided with financial support.
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Some pictures
Terms and conditions for SBFR loans include the following: Terms and Conditions Max. loan amount UGX 100 million* Max. loan period 4years Max. Grace period 1 year Min. loan period 6months Max. Interest rate 10% Facility fees 0.5% Interest to BoU 0 GoU Contribution 50% The SBRF, however, does not finance agri-businesses or agricultural activities that are eligible under the Agricultural Credit Facility (ACF) and those that have already been financed under ACF are not eligible for funding. The key role of BoU BoU’s role under the ACF and SBRF is that of the Fund administrator as spelt out in the respective Memoranda of Agreement signed between the Government of Uganda, the Participating Financial Institutions and BoU. How to access the loans Loans under the ACF & SBRF can only be accessed through the PFIs that include all the Commercial Banks, Credit Institutions and Micro-Finance Deposittaking institutions regulated by the Bank of Uganda. as improved seedlings, fertilizers, pesticides, farm restocking with improved breeds of goats, pigs and cattle for both dairy and beef production. Such agricultural funding initiatives are critical to prevent any threats to food security in addition to enhancing agricultural sector productivity.
Financing on-farm activitiesSupporting modernization through financing the acquisition of greenhouses Financing Modern poultry farming of projects
the ACF-funded
KELVIN ODOOBO CEO and Founder of Shambapro, an agritech startup that helps small-scale farmers in Africa build and run viable and sustainable farm businesses.
from generations, farm experts or advice from other farmers mainly. All these three sources of information are very valuable but are not enough and are sometimes very inaccurate. For example, a farmer needs accurate weather data to know when or even if to plant in the first place. They need accurate data about their inputs and outputs to check the financial health of their farm all the time and to know with certainty why the farm business is not profitable or if it makes business sense to produce whatever they want to produce. If they going to irrigate, spray or fertilize, they need accurate data of how much nutrients are lacking and what is enough to supplement, what amount of water needs their crops or livestock need or if it even makes economic sense to control a disease or pest through spraying. How do we find innovative ways of de livering this data and information into the hands of the farmer, in a simple, under standable and actionable format?
The age-old question of how to transform our small-scale farmers into thriving commercial farmers or farmers growing for the market, earning incomes that can transform farming families and communities is a complex one.
Whenever we speak about data, many people think about expensive complex technologies. Data is facts and statistics collected together for reference or analysis. A farmer needs accurate data to make important business decisions. Today farmers main ly depend on experience handed down
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The Importance of Data
Financing Farmers With time I have realised why bankers fear funding agriculture, especially small-scale farmers. First, we have to be clear that the business of banking is financing trans parent, measurable businesses. Without access to accurate data, it’s hard to finance agriculture unless it’s based on collateral or market contracts. Instead of pushing banks to increase the Data and the Small Scale farmer conundrum in Africa
One that governments, develop ment partners, private companies, and individual farmers grapple with every day. It is complex because farming in Africa has many moving parts which often cannot all be controlled by the small-scale farmer or one stakeholder in isolation. Sometimes, it just cannot make economic sense to try to solve it in the current way it’s being solved. However, we can’t run away from the Farmersproblem.need good and ready markets, ar able land, quality inputs, extension support and training on good agriculture practices. Ideally, if small-scale farmers were able to acquire all the above, then they would improve their chance of success. However, this is mostly beyond them because the problem of financing often stands in the way. We have to apply innovative, scalable, affordable solutions that can put these capabilities in the hands of the small-scale farmer.
Value Addition
The use of ICT will enable farmers to get relevant information and also promote the uptake of new technologies along the different value chains.
Scaling Up Small Scale Farmers Scale is a huge problem for smallscale farmers around Africa. Scale is the size required size to solve the problem. So in this case, delivering services or goods to very many farm ers with small plot sizes, dispersed in different rural areas with poor infrastructure, poor access to market information and little or no farm records is a huge challenge. Some actors have solved that by grouping farmers into cooperative associations to help them achieve scale and hence lower the average cost of serving one small-scale farmer individually which works in many ways. It solves the data problem and reduces the risk and cost of financing an individual farmer. At Shambapro, we are trying to approach that problem similarly but using a different angle where you can create scale by grouping farmers who do not necessarily live in the same lo cation but produce the same product.
One Purpose Approach
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Small-scale farmers in Africa primarily produce what the market requires in terms of quantity and quality for existing buyers. To increase their incomes, value addi tion comes in different ways. For example at the cottage industry level, a farmer can produce cheese or yoghurt in their kitchen. It can also be a level of scale for produce like maize, some critical infrastructure has to be put in place by the government to alleviate a post-harvest challenge or by big agribusinesses to tap a ripe opportunity. So at a national or regional level, it all boils down to getting accurate data on what can be added value and how it can spur innovation or investment around it.
ratio of agriculture lending, we need to focus more on helping the farmer to be bankable by mitigating the many existing risks and helping to lower the cost of processing, dis patching loans as well making repay ments in a manner that it’s friendly to the farmer and more cost-effective for the banker. Also by providing ready-made farmer data which shows how many farmers can produce and how much from which region, then you solve part ly the question of access to ready markets because off-takers need that data to be able to sign market contracts with farmers.
For us to be able to help small-scale farmers to produce in quantity and retain most of the secondary value added in their pockets, we need a sin gle spine approach that looks at the bigger picture and coordinates exist ing or future initiatives in the specific value chains. It should also collect, organize and disperse accurate data to actors in the most palatable way. It is not an easy challenge but it is doable if there is a collaboration between governments, development partners, agribusinesses, agritech companies and farmer organizations. Cherry-picking small problems and solving them in isolation leads to the farmer literary being overloaded with solutions taking more time than the production itself. Yet it should be the other way round, farmer solutions should enable them to focus more on the parts of their business that require most of their effort to get good results. We have to start tackling the problem of commercialization and industrialization of our agriculture sector from the basic principles not from the approach of putting ban dages where it is bleeding most and praying that everything will be okay. And it all begins with collecting, or ganizing and disseminating accurate data in the easiest and most usable manner.
• May act as a receiver or liquidator of a financial institution, if appointed for that purpose by the Bank of Uganda.
Th
• Be a deposit insurance scheme for customers of contributing institutions.
DPF will nevertheless, ensure that depositors get their money earlier than that.
8. How soon can the customer get his/her money from a contributing institution which has been closed? According to the Financial Institutions Act, 2004 as amended, depositors will be paid within ninety (90) days of the closure of the contributing institution.
5. Who is covered by the Deposit Protection Fund of Uganda?
2. What is the mandate of the DPF?
• All depositors of contributing institutions.
4. Where does the DPF keep the money it receives from contributing institutions?
What you need to know about the DPF
• These monies are then invested in assets with minimal risks such as Government of Uganda treasury bills and treasury bonds. Income from the investment is reinvested.
• Joint account holders are treated as separate persons for payment of protected deposits.
• In the event of failure of a contributing institution, and subsequent receivership, a depositor of that contributing institution can lodge a claim with DPF.
7. How much compensation is one entitled to when a contributing institution closes?
The DPF is a legal entity created by the Government of Uganda to ensure that depositors are paid their protected deposits in the unlikely event of failure of a contributing institution.
• It should be noted that DPF determines the ‘protected deposit’ for payment purposes, by getting the total deposits of an individual in a particular contributing institution and deducting any non-performing loans.
• The coverage is per depositor per contributing institution.
3. What is a contributing institution? A contributing institution is one, which is licensed by the Bank of Uganda and periodically makes a financial contribution to the DPF. These include; Commercial Banks, Microfinance Deposit Taking Institutions and Credit Institutions.
6. Do all financial institutions contribute to the Deposit Protection Fund of Ugan- da? No. Only those financial institutions licensed and supervised by the Bank of Uganda contribute DPF.
• The money received from contributing institutions is deposited in an account held at the Bank of Uganda.
1. What is the Deposit Protection Fund of Uganda (DPF)?
• Currently, it is up to UGX 10,000,000 (ten million Uganda shillings only) per depositor per contributing institution.
9. Do depositors need to pay money to the Deposit Protection Fund of Uganda? No. It is only contributing institutions that are required to contribute to the DPF.
12. What kinds of deposits are covered by • the Deposit Protection Fund of Uganda?
• It also includes foreign currency deposits though these will be converted to Uganda shillings using BoU determined closing midexchange rate on the day the institution was closed.
DPF PUBLIC AW ARE NESS INITI ATIVES
• Contributing institutions endeavour to put in place adequate risk management systems to avoid penalties levied by the DPF.
11. What happens to the rest of my money? Deposits above the insured limit will be paid by the liquidator after the assets of the closed institution have been sold off. The amount paid out will depend on the recoveries made.
AHA T owers Plot 7 Lourdel Road, Kampala +256 312 206400 www dpf or ug
• DPF creates confidence in the financial sector by ensuring that customers are paid their deposits in time in the event a contributing institution is closed.
The Fund has held radio talk shows across the Country to sensitize the public about deposit protection and create awareness on its mandate De@DPFUganda posit Protection Fund of Uganda
AHA T owers Plot 7 Lourdel Road, Kampala +256 312 206400 www dpf or ug
• All types of deposits received by a contributing institution in the normal course of business are protected. These include savings, current accounts and fixed deposits.
10. How do I know if my deposits are insured?
DPF PUBLIC AW ARE NESS INITI ATIVES
13. How does the DPF contribute to financial sector stability?
The Fund has held radio talk shows across the Country to sensitize the public about deposit protection and create awareness on its mandate De@DPFUganda posit Protection Fund of Uganda
As long as your deposits are with a contributing institution, which is regulated by the Bank of Uganda, you will be paid up to Uganda shillings (UGX 10,000,000).
• DPF protects a large percentage of retail depositors. More than 90 percent of the depositors in the sector are fully covered by the UGX 10,000,000 limit.
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An example is Paul Mugweri, a soybean farmer from Namu tumba district. He grows Soybeans on two acres and ground nuts on half an acre, and then maize on the other half. In total, he practices farming on three acres of land. Of the three enterprises, soybean has been set aside for sale. While groundnuts and maize are for domestic use. According to Mugweri, from one acre, he can harvest 2000 kilograms, although the estimated potential, according to researchers on Soybean production from Makerere Soybean improvement program and the Vegetable Oil Development Project (VODPII), an acre can yield up to 3000kilograms.
By Prossy Lyaka Commercial agriculture is the practice of growing crops to earn from them. And when farmers earn from their agricul tural work, they will have money to provide necessities at the household level, but also plough back into farming, to con tinue earning. In the long run, employment will be created but also increase production for domestic consumption and later the market, hence eliminating incidences of hunger or starvation.
How the Government is positioning farmers for commercial agriculture
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To have these kilos, a farmer must have planted quality seed, used fertilisers, there was adequate rainfall, had access to pesticides and of course good post-harvest handling methods to attract the market. On average, a kilo of soybeans goes for between sh1500 to 2500 shillings. And if there is ready market, a farmer can earn good money in one cropping season. Markets for soybeans and their products include bakery, animal feeds, baby foods, and vegetable oil production, among others. Despite the good yields and esti mated earnings from soybeans from researchers, farmers like Mugweri feel that this will take time to be realised.
President Yoweri Museveni visits an exghibition stall during the launch of the Parish Development Model (PDM) at Kibuku Primary School, Kibuku District in Bukedi Sub-region.
28th National Agriculture Show Magazine 5th -14th August, 2022 21 Comm ERCIA l Ag RICU lTURE “Much as I harvest 2000 kilograms from one acre, it takes a lot of money and energy, said Mugweri. There are many counterfeit seeds so you have to either get them from Makerere University or projects like the Nether lands’ backed Integrated Seed Sector
To help farmers go commercial, government is fast tracking the implementation of initiatives such as the Parish Development Modal, which targets increased production of strategic commodities for domestic consumption and export.
President Museveni’s view on com mercial Accordingagriculturetothepresident, the country’s strategy is that anything ag ricultural that is not consumed fresh should be processed and preserved to be sold to distant markets. He said that this has been done for bananas in Bushenyi, through the Presiden tial Initiative on Banana Industrial Development (PIBID) headed by Prof Florence Muranga. The initiative is adding value to bananas into products that are being exported including banana flour, snacks, wine, and vacuumed-sealed fresh bananas among others, hence reducing wastage of bananas at the post-harvest stage. He adds that this has been done for milk, cotton and some fruits through the Soroti Fruit factory, sugar cane, tea, sugar, ethanol and industrial sugar among others. Through the commercialisation of agriculture, Mu seveni hopes to create 50 million jobs based on the assumption that five million households are engaged in small-scale agriculture, each employ ing 10 people. So how is the government interesting in farmers into commercial agriculture? While presenting the 2022/23 bud gets estimates, finance Minister Matia Kasaija, said that the government was committed to transforming agricul ture, as one of the sectors, poised to grow the country’s economy. The sector, according to the minister, is projected to grow by 4.3 percent, as a result of growth in food and cash crop production, livestock as well as recovery in fishing. Now, to help farmers go commercial, the government is fast-tracking the implementation of initiatives such as the Parish Development Modal, which targets increased production of strategic commodities for domes tic consumption and export. The modal is fast targeting the 3.5 million households locked into subsistence farming to start growing for commer cial purposes.
WeDevelopment.arefacedwith fake agro-chem icals including fertilisers, pesticides, and weed controllers, in addition to unpredictable weather patterns, the tarpaulins are there but labour costs to harvest may affect them. Sometimes we harvest at the same time, forcing buyers to offer lower prices. And then when we try to access loans, the charges are higher so farming may not be as good but it is now our source of employment,” adds Mugweri. He is now calling on the government to support farmers along the entire value chain to produce for home and the market, as emphasised by Pres ident Museveni, during the State of the Nation Address of this year,2022.
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Away from PDM, the Government through the Ministry of Agriculture Animal Industry and Fisheries has de veloped key commodity value chains that will be promoted among the sub sistence farmers to go commercial. These include coffee, beef and dairy cattle, poultry, fish, piggery, fruits, and food crops for intensive farming. The rest of the enterprises including cassava, bananas, rice, Irish potatoes, millet, cotton, tea, and cashew nuts, among others, will also be supported but for relatively big farmers; The government is also expanding ir rigation schemes and providing com munity and individual on-farm water for production to minimise reliance on rain-fed agriculture, and ensure sustained agricultural production; Enhancement of research, breeding and appropriate technology devel opment through the National Animal Genetic Resources Centre and Data Bank (NAGRC & DB) and the Nation al Agriculture Research Organisation Investment(NARO); in, and effective regula tion of production, multiplication and certification of quality agricultural inputs including seeds, seedlings, stocking materials, and fertilisers; Enhancement of enterprise selection through enhanced farmer education and general agricultural extension, as well as pest and disease control at the Parish level; H.E President inspects produce at the Busia High-value Addition Faculty, constructed under the MATIP project.
That is why in the financial year ending June 2022, Shs 234 billion was provided for the implementation of the PDM. More efforts have been focused on preparatory activities to prepare for the full implementation of the Thesemodel.include recruitment of Parish Chiefs by all districts; data collec tion, verification of beneficiaries, the establishment of SACCOs; setting up of the PDM Management Unit in the Ministry of Local Government; and sensitisation and mobilisation, among others. In the new financial year, the gov ernment has set aside a total of Shs.1.059 trillion for the full imple mentation of the Model. Each of the 10,594 Parishes in the country will receive Shs.100 million as a revolving fund, earmarked for the purchase of agricultural inputs by households still in subsistence. The modal according to the minis ter, will be complemented by other Government programs such as the Emyooga Fund; the Microfinance Support Centre credit to SACCOs and Village Savings Groups; the Small Business Recovery Fund; and other wealth creation initiatives.
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THE SMARTER WAY OF FARMING www.shambapro.com Download the Shambapro App Today
Also, the plan is to use waters from Kagyera River to support irrigation in Isingiro, the water of Lake Kyoga to support irrigation in Nakasongola, and the water of the Nile to support irrigation in Pakwach, Nebbi, Ma di-Okolo and Obongi districts. Areas of Busoga, Teso, Bukedi and Lango, will in the meantime depend on wetlands, although these are al ready being used for rice production.
Promotion of appropriate land use, mechanisation, cooperatives, and development of partnerships with large-scale farmers to produce for ex port and industrial value addition; and supporting fishing communities by developing hatcheries, and fish ponds and equipping them with engines, and nets, among others. Water for production Working with the private sector, the government is to produce solar-powered water pumps that the rich farmers can buy and engage in mini-irrigation on their farms Once the solar-powered irrigation pumps are on the market, the Government will buy them for some of the co-op eratives or farming villages, where one pump can be shared by several small farmers. This will continue to develop the me ga-irrigation schemes of the Mobuku type. Currently, 150 solar-powered water pumps have been imported. By the end of next year, 687 solar-pow ered water pumps will have been Meanwhile,imported. the private sector is building a factory for producing so lar-powered water pumps and panels and will be ready by the end of this year. Once complete, it will produce 160,000 pumps per year, adds finance minister, Matia Kasaija. Other initiatives under water for production include continuing works to repair and expand the old irrigation schemes and also build new ones. As of now, the following irrigation schemes are ready: Wadelai (Pak wach); Mubuku (Kasese); Ngenge (Kween); Doho (Butaleja); Rwengaaju (Kabarole); Agoro (Kitgum); Olweny (Lira); and Tochi (Oyam). Acomoi in Bukedea and Ataari in the district of Bulambuli and Lopei in the district of Moroto is being worked on.
v) Establishing a system for issuance and management of internation ally recognised product bar codes, branding, packaging and labelling of Uganda’s products for visibility;
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Starting with Western Uganda, head ed by the Agriculture Minister, Frank Tumwebaze. The aim is to increase on-farm productivity to increase vol umes of commodities such as beans, maize, cassava, rice and coffee.
The above initiatives will be supplemented with the AgroIndustrialisation agenda, which takes care of standards and market entry. This according to the finance minister will enforce product standards and enable market access and entry. That is why the government has prioritised the following in this financial year: i) Expanding storage and processing capacity for agricultural commodities within the 18 zones of the country; ii) Enhancing the use of the Ware house Receipt System to improve commodity storage, reduce post-har vest losses, improve value chain management, and increase income for farmers
Agriculture Minister Hon. Frank Tumwebaze touring farm access road works with the ACDP team led by Dr. Henry Nakelet Opolot the Project Coordinator. The Minister officially commissioned works on farm access roads.
Toacres.improve the quality of agricultural produce for the market, Kyomukama adds that the long-term plan is to construct storage facilities, renovate and also establish mobile laborato ries in addition to constructing fa cilities that will ensure the quality of agricultural produce at border posts to ensure that what is exported is of quality. Agro industrialisation for Commercial Agriculture
iii) Providing funds for private sector investment in key commodity agro-processing value chains through soft and patient debt from UDB, and equity from UDC;
Under mechanisation, the perma nent secretary in the ministry of Agriculture, Maj Gen David Kasura Kyomukama adds that procurement of appropriate technology is ongo ing for tractors big and small, to suit all agroecological zones. He adds piloting of some tractors is ongoing in selected districts in western and eastern Uganda, to understand the strength of the soil. Some of the tractors to be imported include walking-tractors, like an im proved ox plough, with an engine at the front, for smallholder farmers and bigger ones for those with vast land. Already two tractors have been given to farmer groups, one in Bugweri, headed by area MP, Abudu Katuntu, to increase rice, maize and sugar cane production in the area the farmer groups, among others. The tractor program is being implemented by the ministry and private sector including farmers and will go on for the next three years. At the moment, there are about 80 tractors, that were imported last year, and about 200 are to be imported this year, and these will supplement the over 2500 tractors already in the country, added Kyomukama. Priority will be farmers with 50 and above
vi) Enhancing implementation of the Export Development Strategy including carrying out negotiations for access and entry to regional and international markets; for this to be implemented, the government has allocated Shs1.449 Trillion to promote agro-industrialisation, standards and market entry.
Construction of feeder roads
For farmers to ably transport their produce to the market, the Ministry through the Agriculture Cluster De velopment Project, (ACDP) funded by the World Bank, has embarked on the construction of access roads in about 59 districts.
iv) Strengthening of standards for quality assurance to improve access to markets;
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The future is bright for the agricultural sector
State of the agricultural sector According to the 2014 Uganda National Household Survey 2019/2020, 68% of Uganda’s working population is engaged in agriculture-related activities. With a working popula tion of around 16.4 million people, this means that at least 12 million people are directly engaged in agri culture. This shows how important the sector is to the country. In 2016, the agriculture sector was growing at less than 2.9%. Accord ing to the agriculture ministry statis tics, it is now growing at around 3%. According to the Uganda National Bureau of Statistics, the agricultural sector’s contribution to the econo my stood at around 23.7%. Pro duction of staple foods like maize increased from around 2.4 million tonnes in 2013 to around 5 million tonnes in 2020 Production of cash crops such as coffee, tea, fruits and flowers has also risen in the last few years. In the fight against hunger, Uganda has maintained its position as the regional food basket. According to the 2020 World hunger Index, Uganda’s hunger index dropped to 14 points from 19 in 2011, making the country less likely to suffer from hunger and famine across the east and central African region. In late 2021, the poultry sector was affected after Kenya imposed trade barriers, banning the sale of eggs, chicks and chicken to Kenya os tensibly to protect Kenyan farmers Over 72% of Ugandans live and work in rural areas, these are largely smallholder farmers who engage in peasant farming for home consumption. The 2014 National Population and Housing Census found that 68.9% of Ugandans (that is, seven in every 10 Ugandans) engaged in subsis tence farming with hardly any surplus for the market. According to the census, out of the 6.9 mil lion homesteads in Uganda doing farming, 4.8 million produced entirely for their consumption. For such families, any marketable surplus comes as a surprise.
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28th National Agriculture Show Magazine 5th -14th August, 2022 27 Comm ERCIA l Ag RICU lTURE and enable them to recover from Covid-19 disruptions. In Decem ber however, Kenya’s Agriculture Secretary Peter Munya and his Trade counterpart Betty Maina met Ugandan Minister for Agriculture Frank Tumwebaze and they agreed to immediately remove any admin istrative measures that had hitherto inhibited trade in poultry and poul try Sinceproducts.2019,Kenya had also im posed a ban on the diary sector which produces 2.6billion litres of milk daily of which only an 800mil lion litres are consumed by Ugan dans. According to Kenya, Uganda was repackaging imported milk as locally produced and exporting it to Kenya. Under the Customs Union Protocol, local produce is consid ered so only if more than two-thirds of the main ingredients are sourced locally. The ban was however lifted in May this year, though partially after Ken ya cleared four Ugandan milk-pro ducing enterprises to export dairy products to Kenya. According to Samson Akasinza, the acting Executive Director, Diary Develop ment Authority, Uganda lost up to sh100B of revenue. Akasinza how ever adds that all was not lost for Uganda since they have gone ahead to procure alternative markets to make up for the revenue lost. We have already obtained two big mar kets in Zambia and Algeria to absorb all that produce. We are already exporting to Zambia as we wait for the completion of paperwork for the Algerian Market. The sector also received a shock in form of the African armyworms that invaded up to 40 districts in Uganda, ravaging farms and threatening the liveli hoods of people in those districts. The most affected crops included maize, millet, sorghum, wheat, and sugarcane as well as pastures. These were however contained after concerted efforts from all stakeholders most notably the gov ernment that dispatched inspectors to aid in surveillance and provide guidance on pest control, and mil itary personnel to support ground spraying. These had earlier been trained to fight the locust invasion. The promises In the 2021 manifesto, President Yoweri Museveni promised to im prove many aspects of the agricul ture NRMsector.understands that transforma tion of the rural economy is going to be driven by demand-creating supply, and not the other way round. Therefore, using the parish model, over the next five years, NRM is going to scale up its efforts to provide incentives and support to smallholder farmers to use their land more productively to boost household incomes, escape from poverty and set in motion the industrial revolution. “Over the next five years, our com mitment is to transform subsistence agriculture to market-oriented or commercial agriculture. The NRM will do this by increasing invest ments in several areas as contained in the five-year agriculture develop ment plan,” the manifesto stated. The promises include improving agricultural production and pro ductivity, improve on post-harvest handling and storage, promoting agro-processing, and invest in agri cultural mechanisation, revamping the irrigation sector, creating an ag riculture funding facility for farmers and enhancing value addition. Oth er promises are improving extension services and improving the road network to enable farmers to move to produce to markets easily. Post-harvest handling and storage Efforts to boost production have caused a temporary ‘good problem’. The country is now overflowing with agricultural produce that needs proper post-harvest manage ment, value-addition and markets.
Annually, post-harvest losses stand at 2.8m MT of maize, 214,000MT of millet, and 230,000MT of rice. For horticulture produce, the losses are even higher. According to Agricultural Minister Frank Tumwe baze, through OWC, Uganda has now moved from being a country of deficit into one of the surplus agricultural commodities. Tumwe baze says, this has led to low prices paid to farmers and outright waste due to inadequate technologies for proper post-harvest management and value addition. In the manifesto, the NRM pledges to educate farmers on the right post-harvest handling practices, In this financial year, Uganda Development Bank (UDB) was capitalized to the tune of Shs. 636 billion and was disbursed by May 2022 at an interest rate of 12 percent per annum.
28th National Agriculture Show Magazine5th -14th August, 202228 Comm ERCIA l Ag RICU lTURE acquire appropriate technology for post-harvest handling of fish, beef, dairy and horticulture products, finalise and implement the fisher ies and aquaculture law including, regulation, guidelines and statutory instruments to streamline the fish maw value chain. “We will also en sure regulatory authorities perform their role. UNBS, UCDA, Dairy De velopment Association (DDA) and Cotton Development Organisation (CDO), should enforce adherence to quality standards by the private sector players. For instance, UCDA should ensure buyers/traders buy good grades of coffee to enforce discipline. As farmers fail to sell lowgrade coffee due to poor post-har vest handling, they will self-regulate and improve post-harvest handling. This should also be applied to all grain handlers,” reads part of the Themanifesto.NRMalso pledges to acquire appropriate technology and physical infrastructure for post-harvest han dling of cereals and grains. Construct community grain stores in Busoga and Bukedi sub-region. So far, eleven community grain stores have since been constructed in 10 districts across the country and are now complete and operational. Set by NAADS, the secretariat in tends to continue the establishment of additional community stores and capacity building for the beneficiary Accordingfarmers. to Minister Tumweba ze, the support is in line with the government initiative to reduce post-harvest losses and improve the quality of grain produced in Uganda. “It is also in line with the WFP 2018 – 2022 Country Strategic Plan for Uganda and in pursuit of an integral programming approach to address food gaps and strengthen the resil ience of vulnerable, food insecure communities and populations,” he says. Value addition Value addition has been touted as the big leap to better farm earnings. Value addition on agriculture prod ucts accounts for over 35% of the processing industry in Uganda. However, for the small farmer, most of his produce is still sold as raw food. In the 2021 manifesto, NRM promised to promote value-addition in agricultural products by providing milk coolers, rice hullers and maize mills, among others, at the sub-coun ty level. “NRM shall promote the use of local materials and by-products of maize, soya beans, cotton, sunflower, wheat and rice, among others, in the fast-growing animal feeds industry,” it said. They promised to utilise all other cotton by-products for oil, paper production, and many other special ised uses
Agricultural mechanisation As part of the broader agriculture mechanisation programme, the Government has distributed 320 tractors and matching implements to farmers’ groups in 123 district local governments to scale up farm production for the commercialisation of Theagriculture.Government has set up a bush clearing unit under the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) to be accessed by farmers on reasonable terms. Furthermore, the Ministry of Water and Environment (MOWE) has units for hire by the private sector to construct private valley dams/tanks. These efforts will be strengthened to enable those who can afford to hire equipment to easily do so. Incentives to private sector players investing in agricultural equipment for hire will be Furthermore,considered.working with the pri vate sector, we will support a tractor assembly plant to avail affordable and user-friendly tractors for the farmers using the parish model.
Uplifting small holder farmers: Hon. Frank Tumwebaze, the Minister of Agriculture, Animal Industry and Fisheries hands over tractors to His Majesty Oyo Nyimba Kabamba Iguru Rukidi IV, the King of Tooro Kingdom.
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Why is the Government emphasising commercial agriculture? The President of Uganda Yow eri Museveni is the champi on of commercialisation of agriculture. The President identifies commercial agriculture as among the four critical pillars essential in job and wealth creation, income generation and socio-economic transformation. The other pillars are industry, information, commu nication and technology (ICT) and Commercialisingtourism.
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agriculture will enable the farmers to process quality produce but also produce substantial volumes. We are, therefore, imple menting programmes to increase the current production and productivity, quality, and quantity of volumes; and boosting efforts to ensure that the product is handled properly (post-harvest handling) to avoid contamination (aflatoxins and other substances). We also need to ensure that we use appropriate and cost-ef fective technology to minimise pro cessing costs and make our products more competitive and profitable. The government is rolling out pro grammes to ensure that the business community involved in commercial farming has access to support ser vices such as credit finance, and also their businesses are well secured and insured, i.e. reduced risk in agro-in Wevestment.areworking to ensure that our produce adequately taps into the domestic, regional, and internation al market by ensuring we and our target countries have convenient frameworks for trade. Most impor tantly, we are boosting our capacity to ensure that there is adequate accreditation in terms of the quality of our products, to access these markets. How is the Government helping farmers get involved in commercial agriculture? These farmers are being targeted and supported under the multi-sec toral coordinated agriculture in dustrialisation policy framework. The Ministry of Trade, Industry and Cooperatives (MTIC) will coordinate and support the development of appropriate and business-sensitive laws, regulations, and regional or Government to Boost commercial agriculture
Uganda has the potential to become Africa’s food basket, thanks to its vast arable land and favourable climate. As the NRM begins its second year of the sixth term, Frank Tumwebaze, the Minister of Agriculture, Animal Industry and Fisheries, who doubles as a successful commercial farmer explains the government policy on commercial farming as outlined in the last NRM Manifesto.
Hon. Frank Tumwebaze, Minister of Agriculture, Animal Industry and Fisheries
The Ministry of Energy and Mineral Development will ensure that the various farmers or farmer groups and other value chain actors have quick, easy and affordable access to energy either through the national grid or through alternative sources.
The Ministry of Local Government and the district local government administrations will ensure that the farmers and agri-business dealers at the grassroots are appropriately mobilised to produce and participate in the selected value chains.
The Ministry of Finance, Plan ning and Economic Development, National Planning Authority and the Office of the Prime Minister will ensure that the various initiatives of the other sectors are funded using investments by both private and public sectors through existing financing frameworks. These will include direct funding from the treasury, assisting private agro-processors to access cheap credit through financing windows of multilateral lenders such as East African Development Bank (EADB), African Development Bank (ADB) and World Bank among others, as well as ensuring that appropriate funding portfolios are negotiated through both bi-lateral and multi-lat eral lenders so that cost-effective loans and grants support the agro-in dustrialisation agenda. The government will make sure that all these functions happen in harmony and that there is a good policy mix for agro industrialisation in Uganda. This will also include mutual accountability to ensure the different sectors understand and carry out their respective contributions.
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international trade protocols. MTIC will also ensure that standards are maintained for our products through agencies such as the Ugan da National Bureau of Standards to meet the regional and international accreditation standards.
Who is financing agro-commercialisationUganda’sdrive?
There are many sources of funding. One is the government through various institutions and initiatives in cluding the Agriculture Credit Facility under the Micro-Finance Support Centre, the Uganda Development Bank (UDB), and other multi-sectoral lenders including the ADB, EADB and World Bank. However, we are focusing on the private sector as a key strategy to fully develop and support agricul ture industrialisation. The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) have in the past supported the private sec tor to undertake comprehensive and cost-effective value addition, creating job opportunities for our youths and contributing to import substitution and export promotion. Some examples are the coffee value chain where we adopted a strategy of supporting and giving Poultry keeping in common is Uganda
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incentives to agro-processors, including tax holidays and direct support through UDB and the NAADS programme. This has greatly improved the quality of Uganda’s coffee and the volumes for exports. Under the vegetable oils value chain, the government partnered with the private sector and provid ed some concessions which have contributed to the reduction in vegetable oil imports. We have also started exporting to the region. This has also contributed to job creation right from the plantations (both nucleus and smallholder), the factories and the marketing and distribution of these products, their Underbi-products.thedairy sub-sector, Gov ernment took a strategic decision to divest the former National Dairy Cooperation and also provided in centives to other dairy processors. Currently, 90% of Ugandans are consuming domestically-produced dairy products and the country is currently producing 2.7 billion litres of milk per year. The Uganda dairy industry is competing favourably in the Underregion.tea, the Government took a strategic decision to provide tea seedlings in new tea growing areas to avail enough leaf for processing. This has led to the mushrooming of many tea factories and has im proved value addition for tea. The government is carefully studying how to regulate these factories while supporting them to diversify brands and improve the quality of the final products. How are farmers mobilised into production, processing and value addition under the agro-industry? We are studying how to improve financed agriculture, create coop erative-based financial institutions, farm, and appropriate agro-based SME platforms, as well as appropri ate ICT platforms, rigorous advo cate for appropriate domestic and regional farmer sensitive laws and also regional laws and other incen tives, all geared towards increasing production and productivity, value addition and easy access to regional and international markets. Most farmers are grappling with post-harvest handling. Explain how the government is mitigating this challenge. Post-harvest handling is a major challenge affecting farmers and the general agricultural economy. It is estimated that farmers lose up to 60 percent of their produce through post-handling challenges. As men tioned earlier, post-harvest handling is among the elements in the first pillar of the Parish Development Model (PDM). Under the framework of agro-processing, the farmer will be supported at each stage of the value chain with appropriate technology Uganda’s dairy industry is competing favourably in the East African region
• Increased total export value of processed agricultural commodities (coffee, tea, fish, dairy, meat, and maize from $0.935b to $2.7b.
Key results expected in the agro-industrialisation agenda
• Reduced total value of imported cereals and cereal preparations, vegetable fats and oils, and sugar preparations from $931. m to $500m.
• As the government, we have set our priority targets in the next five years (2020/21 to FY 2024/25 as far as agri-industrialisation is concerned, and these include among others;
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It is estimated that of the 68% population involved in agriculture, poised to contribute to the transformation of the country, more than half (39%) are into subsistence farming.
I am happy also to note that Pres ident Museveni is drumming up support for commercial agriculture as one of the avenues of jobs and wealth creation and socio-econom ic transformation. On the issue of attitude, the Government, under the Parish Development Model is implementing the pillar of Mindset Change with a view of redirecting the thinking of our young people towards agriculture. In conclusion, agriculture industrialisation is one of the key pillars that the Government is streamlining to provide more jobs for our youths and increase the national GDP. However, we need to ensure that it is developed through a multi-stake holder-sensitive policy environment. We shall continue to engage with the Government coordinating agen cies such as the National Planning Authority, Office of the Prime Min ister and the Ministry of Finance, Planning and Economic Develop ment to ensure that this is urgently done and that there is adequate information flow and stakeholder engagement in the processes.
• Increased agricultural sector growth rate from 3.8 percent to 6.0 percent. Increased labour productivity in the agro-industrial value chain (value-added, US dollar per worker) from $2,212 to $3,114.
• Increased the number of jobs in the agro-industry along the value chain by 180,000.
• Reduced the percentage of households dependent on subsistence agriculture as a main source of livelihood from 68.9 percent to 55 percent.
innovations, strategic investment action plans and policies geared toward the full growth of agriculture in Uganda can only be actualised if there is adequate budget allocation to the Wesector.also have the challenge of land fragmentation which is because of the increasing population. People have continued to divide their land into smaller holder plots which cannot support meaningful agricul ture. This has forced the majority of our population to remain subsis tence farmers “working for only the stomach”. There is also the challenge of atti tude and mindset change among our people, especially the youth. Most of our young people, despite the full support and interventions of government, are still shunning agriculture, labelling it a “dirty job”. How do you intend to sort out the above barriers as MAAIF? The solutions to some of these bottlenecks can only be solved us ing a multi-pronged approach that involves other stakeholders. We are reaching out to the private sector and other funders to invest more resources in agriculture.
• Increased proportion of households that are food secure from 60 percent to 90 percent.
In TERv IE w and equipment to manage their pro duce after harvest. What are the bottlenecks your ministry is facing toward full-scale commercialisation of agriculture in Uganda? According to the Maputo Declara tion, the agriculture sector alloca tion is supposed to have about 10% of the annual national budget. This is something that the government has not realised because of other strategic However,priorities.allthegood
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According to the deputy CEO at UNFFE, Perezi Kawumi, the above Farmers to learn to interface with technology promoters at the Show By Prossy Lyaka Of late, there has been talk of the need to increase agriculture production, for food security and household income in Uganda. That is why in the just launched Parish Development Mod al, a government program, aimed at transforming the country from a peasant to a commer cially oriented society, is prioritising agriculture activities.
farmers usually produce food for home consumption. Some of the reasons that have been advanced include limited land, cannot access agro-inputs or improved technologies, have no financial muscle to invest in some improved technologies that can promote intensive agriculture. That is why the Uganda National Farmers Federation, is imploring farmers especially those in subsis tence farming to take advantage of the upcoming 28th National Agricul ture Show to learn about the different technologies that can increase the productivity of their smaller pieces of Theland.show, that is running under the theme Fostering Resilience for Commercial Agriculture will take place from the 5th to 14th August 2022, in Jinja. It will bring together stakeholders in the agriculture sector, including suppliers of fertilisers, machinery, research technologies, and extension services among others. Key exhibitors include the National Agriculture Research Organisation (NARO); Makerere University, Kyam bogo, Busitema among other higher institutions of learning. Present at the show will be suppliers of farm machinery like Engsol, Irrigation equipment including e smaller solar powered irrigation machinery, im proved seed among others.
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NAGRC&DB staff give showgoers tips on improved animal breeds for wealth creation during the ongoing National Agriculture Show in Jinja
Confirmed foreign exhibitors include Malaysia and Chinese companies that will show case machinery and other technologies that are suitable for small holder farmers.
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The transformation, according to the modal will come from Agriculture. In the last financial year 2020/2021, agriculture account ed for about 23.7% of GDP, and 31% of export earnings, according to the Uganda Bureau of Statistics (UBOS). However, it is estimated that of the 68% population involved in agri culture, poised to contribute to the transformation of the country, more than half (39%) are into subsistence Subsistencefarming.
Away from the 28th National Ag riculture Show, the farmers organi sation plans to work with different companies to help farmers, whose productivity is struggling due to past effects of Covid 19 coupled with high fertiliser prices due to the war in Ukraine and Russia, which are leading fertiliser manufacturers and suppliers, they are already working with Uganda Communications Commission (UCC) to promote ICT in agriculture. This will promote the uptake of technologies along the different value chains. The program is also considering ICT tech nologies that can easily be adopted by youth and women farmers. They are also working with Master card foundation, through the Master card farmer network, aimed at en suring that whatever is produced by farmers can be marketed in addition to accessing other related activities. Show goers view maize hullers (left) and irrigation kits (right) on display during the 27th National Agriculture Show in Jinja Perezi Kawumi, UNFFE Deputy CEOUganda National Farmers Federation
T EC hnology technologies were carefully selected to suit the needs of farmers especially now, that the country is faced with prolong drought, coupled with the high cost of agro-inputs. He explained that their decision was based on a study they conducted at the beginning of this year, that found that most farmers were faced with effects of climate change, like prolonged drought, lack of storage fa cilities, had not readily adopted tech nology instead many were still locked into traditional farming methods. Findings also revealed that farmers had limited knowledge about existing research for higher yields.” It is there fore important that different exhib itors come to show, and showcase the different technologies that will support farmers in ensuring that they become more resilient in the chang ing environment,’ said Kawumi. In addition to exhibition materi als, farmers will be taken through training sessions including formation of groups, in order to benefit from government programs. “We are encouraging farmers to form groups, because that is the channel through which government is using to support farmers. It is becoming more difficult for a farmer to get services from any government institution when you don’t belong to any farm ers group and that will be emphasised in one of the training sessions at the upcoming show,” added Kawumi.
How UNFFE is preparing farmers for Agro Industrialisation To support government’s call for agro industrialisation, Kawumi explained that they are mobilsing farmers in addition to organising them into groups, link them to providers of in puts and services needed to improve production so as to have enough for domestic and industry. This is being tackled through the promotion of the use of ICT. “One of the avenues we are trying to promote for farmers to produce more is the use of ICT; so they can easily access timely weather information, price changes in the market, available market, commodities on demand among others,” he added.
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