Source of the Nile Agriculture & Trade show 2018 by SLICK REPUBLIC LIMITED

OPINION

National Budget 2018/19

Why farmers should endeavor to attend the Agricultural Show

Will agriculture sector allocations deliver Ugandans to prosperity?

SECTOR UPDATE

Government on right track to agricultural modernization, value addition

Source of the Nile

& TRADE show Theme: Fostering Agricultural Value Chains Innovations for Farmer Led Food Security, Household income and job creation

13th - 22nd

July, 2018 JINJA SHOW GROUNDS Supported by:

Contents Volume 001, July, 2018

Sector progress

4 / Government on right track to agricultural modernization, value addition Value Addition

12 / Value addition is way to go for small holder farmers in Uganda Opinion

16 / Why farmers should endeavor to attend the Agricultural Show Analysis

18 / National Budget 2018: Will agriculture sector allocations deliver Ugandans to prosperity? Advertorial

Agricultural Insurance

24 / Protection farmers can get against natural disaster Agribusiness Tips

30 / How to establish a successful value added agricultural enterprise

20 / Uganda Prisons Service: Rehabilitating inmates through farming & industrial programmes

NEWS: dairy coMilkman, a new mpany launched

NEWS: dairy coMilkman, a new mpany launche d

u Chef

heRe we have thin that insp gs iRe us.

Cook Sm

art, Eat

COMING SOON...

ISSUE 01:

art, Eat

UGX 5,00

FoodS RICh IN PotaSS IUM

LETS ha vE

Chocolate

Money saving tips

FoodS RICh IN PotaSS IUM

Drink

Make yo u own

Banana-

s 250

kiTchen GADGeT S

Drink

Make yo u own

Smoothie

Try backya

Banana-13th - 22nd July, 2018 Chocolate Smoothie

rd farming

Smart

1,500 | Ksh

5 must ha kitchen ve cool appliance s

5 must ha kitchen ve cool appliance s LETS hav E

0 | Tshs

UGX 5,00 ad dic 0 |tiv Tshs e 1,500 | Kshs 250

HonEy G IC chic chicakrle n recipe for youken

kiTche n GADGeT S

26th Source the 916 Nile Agriculture & Trade Tel: +256of774 019, +256 755Show 555Magazine 978

Cook Sm

HonEy GarlIC

addictiv e

Raphae

Smart ISSUE 01:

recipe fo r you

For more information, please call;

u Chef

l, heRe we have thin that insp gs iRe us.

Raphael,

Money saving tips

Try backya

rd farming

Improve your agricultural productivity with our Agro-Business loan Whether you want to build storage facilities; buy agricultural equipment or inputs; process for value addition or any other agro-business related need just talk to us today. We may just have the better solution for you.

For more information, visit your nearest branch or call us on

Tel: 0417 803 000

Housing Finance Bank is regulated by Bank of Uganda. 2

13th - 22nd July, 2018

26th Source of the Nile Agriculture & Trade Show Magazine

housingfinancebank

housingfinanceU

0790 542 262

www.housingfinance.co.ug

Head Office: 4 Wampewo Avenue, Kololo, P. O Box 1539 Kampala

Publisher’s WORD

Source of the Nile

& TRADE show

Published by:

To great beginnings The Agriculture & Trade Show Magazine is an annual publication dedicated to providing a communication platform to the agriculture sector in Uganda and the East African region.

Slick Republic Limited JK Building, Behind Apex Building,Ntinda P. O. Box 26693, Kampala Tel: +256 774 916 019, +256 755 555 978 Email: slickrep256@gmail.com

It is therefore a joy and privilege to be part of the National Agriculture and Trade Show.

Team Managing Director Bellah Ruth Nankanja Project Coordinator Peter Mugeni Wanyama Business Development Manager Jessy Hamala Editorial Contributors Enoth Mbeine Erick Wakabi Joanne Kyozaire Kisaka Kefa Atubini Mariam Nalunkuuma Design & Layout Peter Mugeni/ Slick Republic Limited Sales & Marketing Martin Ariko Print Management Christine Namayindi

The show has been a staple on the Uganda National Farmers Federation calendar since its inception in 1993. This year’s show is being held under the theme “Fostering Agricultural Value Chains Innovations for Farmer-led Food Security, Household income and Job Creation.” This issue has an array of articles all geared at making us better agriculturalists. We extend our sincere gratitude to the sector players for the partnerships that will ensure that we are the most reliable, authoritative agriculture magazine in the region. We wish you a successful exhibition as we shape the future of the nation through agriculture. We appreciate feedback and do hope that you will drop us a line.

Copyright © 2018: All rights reserved. No sections of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means mechanical, electronic, photocopy, recording or otherwise without the written permission of the publisher and copyright owner.

Cheers

Peter Mugeni Project Coordinator

Disclaimer: The views expressed here are solely those of the author in his private capacity and do not in any way represent the views of SLICK REPUBLIC LIMITED, or any other entity. Neither the publisher nor any person acting on its behalf may be held responsible for the use of the information contained therein.

13th - 22nd July, 2018

Sector Progress

A coffee farmer in Kabarole distict. Uganda exported coffee worth nearly US$ 352m in Financial Year 2015/16.

Government on right track to agricultural modernization, value addition The work done by the Ministry of Agriculture Animal Industries & Fisheries (MAAIF) is guided by the Mission of transforming subsistence farming to commercial agriculture and is guided by the Agriculture Sector Strategic Plan, derived from the National Development Plan (NDP2). To date, Government has delivered the following through the Ministry of Agriculture as committed to in the Manifesto for 2016-2021 under the theme of “Taking Uganda to Modernity through Job-creation and Inclusive Development.”

n the commitment of strengthening Extension Services through a Single Spine Extension Service System, Government embarked on recruitment of Public Agricultural Extension Staff in Local Governments.

■■ As a result of this recruitment, the extension 4

13th - 22nd July, 2018

worker to farmer ratio has since been reduced from 1:5000 to about 1:1800 and the number of staff recruited has reached 3,032 extension workers which is 60% of the target. ■■ The target is at least 5,000 extension workers across the country.

Another commitment in the Manifesto was to enhance systematic distribution of improved seeds, planting and breeding materials through the National Agricultural Advisory Services (NAADS) and Operation Wealth Creation (OWC) initiatives. ■■ On this, the Ministry through NAADS in collaboration with OWC has procured and distributed inputs to promote the key strategic crops for income generation and export. 26th Source of the Nile Agriculture & Trade Show Magazine

Sector Progress

■■ As a result, the acreage planted for the perennial crops has increased substantially with tea spanning over 32,000 acres, 171,000 acres for oranges and 176,000 acres for mangoes.

■■ Government is also supporting 51 districts across the regions of Eastern, Northern, West Nile and Western Uganda to grow sunflower, soybeans, ground nuts and sim sim.

In the Manifesto, Government also promised to invest more and increase exports of specific commodities such as Coffee from 3.6 million 60 kilogram bags to 6 million 60 kilogram bags; Maize from 185,000 metric tonnes to 1.5 million metric tonnes; tea from 65,000 metric tonnes to 130,000 metric tonnes and Beans from 32,000 metric tonnes to 500,000 metric tonnes.

■■ The Ministry has since contracted 11 private extension service providers to provide oil seeds value chain services to the project beneficiaries.

■■ Prior to this 5-year term, Uganda exported 3,556,692 60 kilogram bags of coffee worth US$ 351,153,000 as a country in Financial Year 2015/16. ■■ However for Financial Year 2016/17, we managed to increase this to 4,186,606 60 kilograms bags worth US$ 490,250,000 which is an increase of 14%. ■■ Between July and March this Financial Year 2017/18 the country has already exported 3,521,850 60 kilogram bags US$ 391,590,000. ■■ It is evident that we are moving towards achieving the national target of 20 million bags by 2025.

In Kalangala, 10,924 hectares of Oil Palm have been cultivated by organised smallholder farmers supported by a Public Private Producer Partnership between Government, the International Fund for Agricultural Development (IFAD) and private sector players including BIDCO Uganda Limited. ■■ Two Palm Oil Mills constructed on the islands by BIDCO have so far received 92.3Mt of oil palm fresh fruit bunches from the smallholders alone. ■■ By December 2017/18, a total of 1,810 farmers (36% female) were benefitting from the oil palm smallholder scheme with 1,080 farmers already harvesting from 3,021 hectares of mature oil palms and earned Shs 1.2b each month. ■■ The private sector partner, BIDCO is currently producing 27,198 tonnes of crude palm oil per year and pays Government of Uganda taxes worth Shs 157.4 billion per year. 26th Source of the Nile Agriculture & Trade Show Magazine

Hon. Vincent Sempijja, Minister of Agriculture, Animal Industry and Fisheries

On this, the Ministry through NAADS in collaboration with OWC has procured and distributed inputs to promote the key strategic crops for income generation and export.

■■ As a result, the production of sunflower, soybeans, ground nuts and sesame has increased across the target area, leading to an increase in mill capacity utilisation from 34% in 2015 to 56% in 2018. ■■ Our oil seed farmers have also realized an increase in the sunflower yield per hectare from 0.9 tonnes per hectare in 2014 to 1.3 tonnes per hectare in 2017. ■■ The soybean yield per hectares has also increased from 0.6 tonnes per hectare in 2014 to 0.9 tonnes per hectare in 2017. This has increased the incomes of our oil seed farmers per unit area under production.

In the Manifesto, Government promised to support companies and individuals in livestock breeding in order to meet the demand for dairy products, beef, poultry and piggery. Here, the following milestones have been reached through the National Animal Genetic Resources Centre and Databank (NAGRC&DB) which is an Agency of the Ministry of Agriculture. ■■ Government is promoting crossing local animals, to F1-50% and F 2-75% which can produce 12 and 18 litres of milk per day respectively. With F1 a farmer with good management gets Shs 1.5m per animal per year. Six Cows of 75% dairy crosses bring in more than Shs 20m a year from milk. ■■ NAGRC has also improved the beef animal’s average daily weight gain to 250 gms per day with F150%. This has reduced the market age tremendously from 3-4 years to 1-1.5 years. ■■ Kuroiler chicken which are disease resistant and fast-growing have been introduced. The Kuroiler lays between 150-200 eggs in a year compared to the 40 eggs produced by the indigenous birds. Cocks weigh between 3-4 kg within four months. 13th - 22nd July, 2018

Sector Progress

■■ To ensure that Uganda benefits from this, 2, 305,194 kuroilers were distributed to 5,500 households and 40,000 birds have been exported to the regional markets. ■■ Through genetic improvement, NAGRC goats have been improved to reach an average daily weight gain (ADG) of 145g/day compared to 25 – 30 g/day for the indigenous goats. This has resulted in an increase in household income by 67% per goat from sales. ■■ The same Agency (NAGRC&DB) has also introduced early-maturing pigs which can produce at 10 months at an estimated weight of 80-90kgs live weight compared to the indigenous ones which do so at an average weight of 40-60kgs. Breeds such as Comborough can produce over 14 piglets (28 piglets/animal/year) and at market price of 150,000/- , this translates into 4,200,000/= per sow per year for the farmer.

On Government’s commitment to promote use of manure, organic fertilisers, inorganic fertilisers and appropriate irrigation technology to beat climate change challenges, we have done the following. ■■ Government has rolled out an e-voucher subsidy program to promote access to and use of fertilisers by farmers. ■■ Sukulu fertiliser factory is being constructed through a Public Private Partnership and will produce 300,000 tonnes of fertilisers; 300,000 tonnes of steel products; 200,000 tonnes of sulphuric acid; 300,000 tonnes of gypsum; 100,000 tonnes of Rare Earth Elements (REE) minerals; and 40,000 tonnes of Niobium annually. ■■ Makerere University will start testing and advising farmers which type of fertiliser is suitable per crop.

Another commitment by Government was to promote agricultural mechanisation. ■■ This would be done through availing ma6

13th - 22nd July, 2018

chinery for hire at affordable rates for bush clearing, ploughing, harrowing, planting, harvesting and making silage and hay to make it easy for medium and large-scale farming. Government promised the delivery of 40 tractors and implements before the end of Financial Year 2015/2016. ■■ The 40 tractors and implements were delivered in time as committed and were given to organised farmers in 10 districts followed by an additional 50 tractors made available in FY 2016/2017. ■■ The Ministry procured earth moving equipment including tractors for dry hire to farmers for bush clearing, ploughing or digging up dams and valley tanks. These have been used to clear bushes and open 11,000 acres of farm land for agricultural production in various parts of the country and to rehabilitate 158 farm access roads (about 420Kms) in fourteen (14) districts countrywide.

research institutions carrying out research in agriculture together with other scientists at universities. The National Agricultural Research Organisation (NARO) has developed ■■ Two anti-tick vaccines to effectively control blue ear ticks (Boophilus decoloratus) ■■ Two bio-acaricide formulations to manage the emerging challenge of tick resistance to available acaricides. ■■ Three drugs botanical de-wormers for control of internal (Nematode, Cestode and Trematode worms) and external parasites in ruminants

■■ Government is set to open regional mechanisation centres to increase access to this machinery in various parts of the country. To this effect, the Ministry has recruited 33 Senior Agricultural Engineers in 33 District Local Governments. ■■ Government made a commitment to invest in the control of pests and diseases. This also came with another commitment to control and harmonise the levels of pesticides and acaricides that are internationally acceptable. ■■ The Ministry procured 1,300,000 dozes of assorted animal vaccines for Foot and Mouth Disease (FMD), Rabies and CBPP. The Ministry also carried out interventions for the control of the Fall Army Worm and Banana Bacterial Wilt (BBW) in 92 districts across the country.

Trials for a new acaricide (Vectoclor) to deal with resistant ticks was carried out and was 85% successful. The following has been done under the commitment by Government to support

Part of the 10,924 hectares Oil Palm plantation in Kalangala supported by a Public Private Producer Partnership between Government, the International Fund for Agricultural Development (IFAD) and private sector players including BIDCO Uganda Limited.

26th Source of the Nile Agriculture & Trade Show Magazine

Sector Progress

■■ A national tick distribution map to guide tick control programs and initiatives.

nutrition enhanced varieties to ensure increased production and productivity.

■■ African Swine Fever (AFS) diagnostic kit prototype, a rapid and cheap on-farm detection of ASF.

As regards Agricultural Finance, Government promised to kick-start the Agricultural Finance Credit scheme that was to be operated through commercial banks with support from Government.

■■ NARO-Ngu trap which captures 106 flies per day compared to 22 flies trapped by the pyramidal trap. ■■ A green protein feed Supplement for both poultry and fish feeds. It replaces the fish ingredient in poultry diets by 16% and the farmer saves 100 per KG of feed resulting into a total saving of 500 per bird.

■■ Government is currently implementing this Insurance Agriculture Scheme (UAIS) through the Ministry of Finance, Planning and Economic development, and it’s a Public Private Partnership between The Government of Uganda and Private sector (Insurance companies).

■■ And released 32 disease-resistant and

■■ Shs 5 billion was released as a subsidy for

mainly small-scale farmers to promote their interest in the agriculture risk management tool. The funds are for sensitisation and awareness on insurance basics, premium subsidy, data support and fostering lending to the agriculture sector by Financial Institutions. The uptake of agriculture insurance has increased from 3,000 beneficiaries to 65,000 beneficiaries.

Another commitment was to improve the quality of agricultural produce by investing in agricultural marketing infrastructure such as storage facilities and encouraging District Councils to pass by-laws that discourage drying of produce on open grounds. ■■ The Department of Agricultural Investment and Enterprise Development has been supporting Agro Processing and managing pests through customised Post-Harvest Management training, distribution of small farm post-harvest equipment to farmer groups at farm level in Western and Eastern Uganda. These include nine rice threshers, nine maize shellers and 500 tarpaullin mats which are 4 metres by 6 metres in size. They also include 18 moisture meters, 60 Sieve cleaners, 120 weighing scales, 5,000 standard woven storage bags of 50kg capacity. ■■ Farmers have been mobilised on the importance of forming farmer groups and this has led to the formation of nine groups which were also trained in post-harvest handling in the districts of Jinja, Iganga, Bugiri, Namutumba and Masindi. ■■ Training has focused on machine operation, group leadership dynamics, business and marketing skills and quality management. ■■ Small farm level Agro Processing equipment like maize shellers, rice threshers and peddlers have been distributed to farmers in the above mentioned regions to enhance productivity as well as manage pest and disease incidence. ■■ Pilot demonstration centres have also

26th Source of the Nile Agriculture & Trade Show Magazine

13th - 22nd July, 2018

Sector Progress

been installed with capacity of processing two million tonnes per hour; one for maize in Masindi district and another for rice in Jinja district ■■ The training has also brought results in delivering Government’s commitment to put in place measures to ensure that Good Agricultural Practices (GAP) are domesticated and complied with to attain internationally acceptable standards of our products.

In line with Government’s commitment to investing in value-addition, a fruit factory in Soroti has been completed other value addition factories are being set-up for products where response from the private sector is not forthcoming. ■■ For dairy, last year, two milk collection centres with total collection capacity of 8,200 litres of milk were rehabilitated and equipped in Kayunga and Masindi. More than 1,000 dairy farmers are already utilizing the two milk collection centres. ■■ Government also rehabilitated Soroti milk collection centre and Entebbe Dairy Training School aimed at skilling dairy stakeholders in Value addition and quality assurance. ■■ As a result of strategic interventions in the dairy value chain; milk production has increased from 2.08 billion litres in 2015/16 to 2.23 billion litres in 2016/17; representing 6% growth rate. ■■ The value of marketed milk has also increased by 5% from US$ 716m in 2015/16 to US$ 752m (about Shs 2.7 trillion) in 2016/17. Marketed milk stands at 80% of the total production and this is likely to increase even further. ■■ Between July 2017 and March 2018, the dairy exports stood at approximately US$ 130m. ■■ To increase the production of export grade cattle and meat exports, a modern holding ground (5 square miles in size) with 8

13th - 22nd July, 2018

An artistic impression of the Soroti Fruit Factory that will be opening soon. The government of Uganda is investing in agriculture value-addition. a quarantine station (4 square miles in size) have been constructed at Katonga farm in Kisozi to fatten bulls. These bulls will be supplied to the modern export abattoir in Bombo which is a joint investment between the Ministry and the National Enterprises Cooperation (NEC).

In addition to the above commitments, Government promised to promote cotton growing to sustain the country’s textile industry needs, including supporting the acquisition of ginning equipment by farmer cooperatives so as to increase earnings from cotton by the farmer. Promote cassava production in all parts of the country and seek investors to establish factories for value addition and production of cassava-related products. ■■ During FY 2017/18, a total of 2,647Mt of cotton seed, 1,230,700 one-acre units of pesticides, 5,156 litres of herbicides, 481Mt of fertilisers and 3,040 spray pumps were supplied to about 200,000 households. ■■ Under the tractor hire scheme, a total of 3,197 acres were ploughed for 852 farmers. These interventions resulted in the establishment of an estimated 270,000 acres of cotton which produced 201,841 bales of cotton lint in FY 2017/18.

■■ Over the last two years, cotton production has increased from 151,071 bales of lint in 2016/17 to 201,841 bales in 2017/18. As a result, the contribution of cotton to household incomes has risen from about Shs 136 billion in 2016/17 to Shs 187 billion in 2017/18. Lint exports have also risen from about US$ 39 million in 2016/17 to US$ 49 million in 2017/18. ■■ Government established the Lint Buffer Stock Fund in 2014/15 to avail raw materials (lint) to local cotton textile manufacturers to support domestic value addition. The Fund procured a total of 3,000 bales in 2016/17 and 11,500 bales in 2017/18 which were supplied to Southern Range Nyanza Ltd and Fine Spinners (U) Ltd. The two textile mills offer direct employment to more than 3,430 people and produce about 570,000 pieces of garments per month. ■■ Today, the country has six cotton wool manufacturing firms which include Mutuuma Commercial Agencies Limited, Nile Surgicot Limited, South Base Agro Industries Limited, Anik Industries (U) Limited, Viva Holdings Limited and Gulf Cotton Limited. These also produce absorbent surgical cotton wool and Mama Kits from locally grown cotton. They employ about 300 people and produce over 700Mt of surgical cotton wool annually.

26th Source of the Nile Agriculture & Trade Show Magazine

Sector Progress

■■ Nine oil mills (Nile Agro Industries Ltd, Mutuuma Commercial Agencies, Singo United Investments Ltd, Wamala Growers Cooperative Union Ltd, Ekirya Atabaala General Merchandise Ltd, Kasese Oil Mill Ltd, Pasha Oil Millers, Western Uganda Cotton Company Ltd and Twin Brothers Company Ltd) produce edible oil, cottonseed cake and soap stock from cottonseed. ■■ They employ a total of about 600 people and produce a combine total of over 2,000Mt of edible oil and approximately 12,000Mt of cottonseed cake use in animal feeds annually.

Butaleja; Mubuku II in Kasese; Wadelai in Nebbi District; Torchi in Oyam District and Ngenge in Kween District. The schemes are expected to be completed by June 2019. ■■ Detailed engineering designs have been completed for irrigation schemes in Sironko/ Acomai in Bukedea, and Bulambuli Districts, Atari in Kween/ Bulambuli District, and Namatala in Budaka/ Mbale/ Butaleja District to cover a total of 5,590 hectares. The Ministry has also constructed and rehabilitated 155 valley Tanks. Two of these have been constructed in Northern region, 75 in

the Eastern region, 20 in the Western and 58 in the Southern region of the country. ■■ The total capacity of these currently stands at 8,000,000 cubic meters in the drought and cattle corridor districts country wide.

Going into the future, the Ministry of Agriculture, Animal Industry and Fisheries will remain committed to delivering on the above and meeting the targets of our mission which is to transform subsistence farming into commercial agriculture.

■■ Government made a commitment to create more jobs and increase household incomes for farmers. In Kigezi sub region, the President called for the introduction of tea. The cash crop was introduced in the area and, two tea factories have so far been set up through Public Private Partnership in Kabale and Kisoro. These are areas which previously did not have any perennial crop being grown commercially by farmers. The factories were set up to not only provide market for the leaves but also create jobs and thereby increase household incomes as guided by the theme of the National Development Plan (NDP2) of “Strengthening Uganda’s Competitiveness for Sustainable. Wealth Creation, Employment and Inclusive Growth.”

Lastly, Government made a commitment to invest in water for production infrastructure to boost commercial agriculture and industrial activities. Here, the emphasis was to be placed on construction of large and small-scale water schemes for irrigation, livestock and rural industries. ■■ Another target here was to increase cumulative storage from 27.8 to 55 million cubic metres by 2019/20. ■■ Government has commissioned the construction of five irrigation schemes covering a total 4,038 hectares at Doho II in 26th Source of the Nile Agriculture & Trade Show Magazine

13th - 22nd July, 2018

Entebbe, opposite Entebbe Junior School Mbarara, High Street opposite Star Times Mbale, Nadoa Road next to Mbale Travellers Inn Jinja, Ghokale Street opposite Main Street Primary School Kabale, Main Street, next to Manhattan Hotel

LAYER CHICK MASH

LAYER GROWER MASH

LAYER MASH

BROILER STARTER CRUMBLE

BROILER GROWER PELLET

BROILER FINISHER PELLET

Our plant-based, wholesome nutritious poultry feeds are mixed and prepared at the state-of-the-art feed mill in Semuto, using only locally grown maize, soya cake and sunflower cake, supplemented with recommended vitamins - no animal-based proteins are added. We specialise in Mash, Crumble and Pellets for both Layers and Broilers. Buy a 50Kg or 25Kg sack at these outlets:

+256 792 782 782 www.yokuku.com

Value Addition

A farmer tends to coffee at Royal Plant and Nursery in Kyenjojo District.

Value addition is way to go for small holder farmers in Uganda

In Uganda, the majority of agricultural commodities are marketed in their raw forms, hence losing the opportunities for higher earnings and generating employment.

By Enoth Mbeine FIT Uganda Ltd

ccording to a World Bank Report of 2012, the value of Ugandaâ&#x20AC;&#x2122;s value-added products in 2011 was standing at US$ 3.8 billion, while that of Tanzania stood at US$ 5.7 billion. In the East African region, Kenya has the highest agricultural value added standing at US$ 8.3 billion. The main constraints that face Ugandaâ&#x20AC;&#x2122;s agro processing industry include the high operational costs mainly due to the high prices of imported fuel and spare parts, unavailability of appropriate processing machines and spare parts, and the limited knowledge in operation of the machines. However, despite these constraints, agro pro-

12 13th - 22nd July, 2018

cessing has a tremendous potential for increasing income through value-addition and increasing shelf life and access to food security through the establishment of small scale agro processing enterprises and rural based industries. Once these commercial agro industries are efficiently run and are responsive to the ever-changing market demands, this will be a precursor for overall economic growth of the country.

What is value addition?

Value addition is the process of changing or transforming a product from its original state 26th Source of the Nile Agriculture & Trade Show Magazine

Value Addition

to a more valuable state. Value addition also is simply the act of adding value to a product, whether you have grown the initial product or not. It involves taking any product from one level to the next. For farmers in Uganda, value addition has a particular importance in that it offers a strategy for transforming an unprofitable enterprise into a profitable one. In fact, there are very few items that a Ugandan small holder farmer can produce and sell profitably at the first open wholesale market. Therefore, a value-addition strategy is critical to the long-term survival of most small farms in Uganda.

The amount of value to be added to a farm product is limited only by imagination. Still using the example of coffee, a coffee farmer could produce or market coffee in a fundamentally different way.

being sold to roasters or is roasted and packaged at the farm for retail sales.

Agricultural tourism

The coffee farmer can also add more value by opening the farm to visitors who can tour the farm and learn about the whole process of growing, harvesting, pulping, drying, milling, grading, roasting, packaging and, ultimately, tasting the coffee. Taking the coffee enterprise to the agricultural tourism level allows those farmers that are entrepreneurial to operate a retail shop and sell over the internet to those who have already visited the farm. Once the small holder farmer has added value than just coffee- he or she is also selling a visitor experience.

A good example is say, a coffee farmer who simply grows and harvest coffee cherries, and then sell them “as is” to a local processor. Here, they usually sell at a price below the cost of production. This marketing strategy may be viable in the short run, because it covers the cash costs involved in producing the crops.

The amount of value to be added to a farm product is limited only by imagination. Still using the example of coffee, a coffee farmer could produce or market coffee in a fundamentally different way.

This is, however, a poor strategy because it usually does not cover the total costs of production, and, therefore, the coffee enterprises will not be sustainable.

Currently, while organic production is the most obvious method of differentiating a product, many other methods can be effective. Coffee, in addition to being labelled as “organic” can be marketed as “shade tree coffee”, bird-friendly coffee or “fair trade coffee”.

This coffee farmer, however, has a range of options other than immediately selling to a processor. The farmer can remove the cherry pulp and wash and dry the coffee beans to create “parchment”. The coffee parchment can then be either sold or stored for some time in this form. When there is good storage, the farmer will be able to keep his produce for longer periods until the market price is good for him. The farmer will now have added value to the coffee he/she initially harvested. By choosing to sell at this next level of parchment, the grower can often obtain enough extra income to make coffee production an economically feasible enterprise. Many coffee farmers are now choosing to hold on to their parchment longer and add further value to it. They are now increasingly getting involved in milling the parchment; this in turn is 26th Source of the Nile Agriculture & Trade Show Magazine

President Museveni talks to a CURAD incubatee. CURAD has encouraged young people to engage in small scale agro-processing. 13th - 22nd July, 2018

Value Addition

Drying of coffee beans before processing at Kawacom (U) Ltd at Sipi, Kapchorwa District.

These different methods of branding usually have extra costs associated, so they must be more than offset by increased prices. The fact that coffee is grown in a particular region e.g. Mbale, Kasese etc can also add enormous value.

Other value addition strategies

The example of coffee has been heavily used here, but other key value addition strategies can be highlighted. ■■ ■■ ■■ ■■ ■■

Changing the physical state of the product. Producing enhanced value products. Differentiating products Bundling products Producing more products that improve efficiency up the supply chain.

These value addition strategies could also be easily drawn from the production of tropical fruits, vegetables, livestock, grains and other commodities. Many small holder farmers should be encouraged to increase their profitability by vertically integrating their operations 14 13th - 22nd July, 2018

rather than simply expanding horizontally to increase their volume of production.

been processed, transformed, packaged and labelled.

Here, they are adding value to their crops by taking their product one or more steps up the vertical ladder of processing and marketing rather than staying at the same level and trying to increase quantity.

The agro-industrial products where value has been added tend to enjoy a higher profit margin than basic commodities.

Agribusiness support agencies should be seen to support the promotion of rural agro industries. This is mainly crucial because of the following reasons;

In conclusion, for those in agribusiness, as markets become more competitive, it is important for mainly small holder farmers and other value chain actors to seek ways of taking advantage of the value adding opportunities to be able to increase the incomes of the rural producers.

Agro –industrial products, unlike the basic commodities, do not exhibit a long-term real-price decline so they are more effective in increasing local incomes.

Deliberate efforts should be put in place in establishing market research teams to help in investigating both fresh and processed markets.

Value addition activities in the rural areas tend to increase local employment and income and usually have a positive impact on the local economy mainly due to forward and backward linkages.

The value added products can be those that are traditional or those that already exist in the rural areas, or can also be new products, which can be processed using new, low cost technologies.

Product differentiation as a value addition strategy is easier for goods that have

The writer is a senior consultant, Business Development Services, FIT Uganda Ltd

Agribusiness support

26th Source of the Nile Agriculture & Trade Show Magazine

Value Addition

UIRI’s Efforts in value addition yielding remarkable results Uganda Industrial Research Institute (UIRI), a government parastatal under the Ministry of Science Technology and Innovation (MoSTI), is celebrated nationally and internationally as a Centre of Excellence for industrial and technological Research. It has achieved this through sustained investment in cutting edge research, technology, innovation and strategic collaboration. In line with Uganda’s Vision 2040, which highlights the enormous opportunities for economic transformation through agricultural value addition, UIRI has developed various technologies and products to enhance production in different agricultural value chains. These include the aflatoxin testing kit which detects toxin levels in grains; a thermostable vaccine (KUKUSTAR) that protects against Newcastle disease in poultry; a grain moisture meter that measures moisture content in grains( beans, maize, groundnuts etc) and a solar drier for drying fresh produce. Other product development initiatives include production of cosmetics from shea butter and cow ghee, production of lactic acid from cassava, jewellery from cow horns and bones. These exemplify the diverse potential of value addition technologies to promote agricultural value chains in Uganda’s predominantly agrarian economy. The institute has an ever-growing national footprint through its various satellite processing facilities where agro-processing, skills training and appropriate technology services are delivered to the respective communities. Examples include fruit juice processing plants located in Arua, Mpigi and Ntungamo; Wine processing plants in Mbarara and Kabale; Peanut butter production plant in Lira; an essential oils production pilot

Product development to promote Agricultural value chains.

project in Luweero and Palm oil processing plant in Kanungu. Consequently, UIRI supports a number of indigenous agribusiness small and medium enterprises (SMEs) which have commercialised most of the institute’s product development innovations in different value

chains. These include Infinity fish products, Lechem corn bread products, Premier dairies (Mega milk and yoghurt), Bella Wine, Amagara skincare Ltd and Livara cosmetics to mention but a few. These enterprises, under the business incubation program at the Institute, produce for both local and regional export market.

Uganda Industrial Research Institute Plot 42A, Mukabya Road, Nakawa Industrial Area 26th Source of the Nile Agriculture & Trade Show Magazine P.O. Box 7086, Kampala-Uganda Website: uiri.go.ug Uganda Industrial Research Institute

@UIRI2017

13th - 22nd July, 2018

Opinion

Why farmers should endeavor to attend the Agricultural Show Key stakeholders in the agricultural sector have yet again converged here, in this leafy suburb of Jinja town, to participate in the 26th Source of the Nile Annual Agricultural and Trade Show. Under the theme, Fostering agricultural value chain innovations for farmer-led food security, household income and job creation, the show which is jointly coordinated by the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and the Uganda National Farmers Federation (UNFFE) is intended to disseminate agricultural knowledge, information, technologies, innovations and improved practices.

he show sets a platform for displaying and identifying innovations made by both local and foreign companies through improved technologies for better production, marketing and poverty eradication.

By Kefa Atibuni National Agricultural Research Organisation

For this year, the exclusivity of this show, in my view, is not only in the diversity of stakeholders involved, but also in the choice of theme that embraces the evolving views on agricultural innovation.

However, an increased recognition of the importance of the context for agricultural development has led to different schools of thought about the

In the past, an innovation was regarded as a new technical device or principle, like a photovoltaic cell or a new seed variety. The conception was that such an innovation was either adopted or rejected by an individual, depending on various social conditions. As such, science and technology were considered the most important avenues towards agricultural development. However, over the years, the linear idea that innovations are developed by scientists, disseminated through intermediaries and then put into practice by users has been criticised by many for a number of shortcomings. In this model, the researchers propose, design and transfer innovations to farmers through agricultural communication workers or extension staff regarded as intermediaries. Researchers are considered as the origin of the inventions, while farmers are only deemed receivers or implementers of the innovations. This thinking is called â&#x20AC;&#x2DC;the linear model of innovationâ&#x20AC;&#x2122; as it draws a one way between science and practice. Here, researchers are supposed to specialise

16 13th - 22nd July, 2018

in the generation of innovations, extension and education, whereas the farmers are expected to utilise the innovations, regardless of the prevailing circumstances.

Pupils of Kigulu Girls Primary School, Iganga, demonstrate to the public on how to grow fodder through hydroponics during the 2015 Agriculture and Trade Show. 26th Source of the Nile Agriculture & Trade Show Magazine

Opinion

meaning of innovation. This is because numerous studies showed that innovations developed by research were often not adopted. To the contrary, successful innovations were usually based on an integration of ideas and insights not only from scientists, but also from users, intermediaries and other societal agents. This modern approach is called the â&#x20AC;&#x2DC;agricultural innovations systemsâ&#x20AC;&#x2122; approach. The World Bank defines an innovation system as a network of organisations focused on bringing new products, processes and forms of organisation into social and economic use, together with the institutions and policies that affect their behaviour and performance. The innovations systems approach moves away from the traditional linear research and development model in which research is completed and results are passed on to users through extension. Instead, it emphasises the need to nurture the demand for knowledge and technologies among a range of actors, including farmers, researchers, extension officers, policymakers, private-sector companies, entrepreneurs, agro processors and nongovernmental agencies. The approach is, there-

Through the show, farmers learn from their colleagues on what they are doing differently to cope with the changing circumstances.

fore, meant to encourage participants to demand relevant knowledge. It puts farmers and users at the centre of the innovative practices. So, why should farmers endeavour to attend the agricultural show? First of all, although many farmers still complain about limited knowledge on improved technologies, very few are actively seeking information. The rest are passively waiting for it from the comfort of their farms. Considering that extension workers, for example, are sometimes faced with logistical problems, such as means of transport to the field, farmers should take the initiative to seek knowledge from other sources, such as this agricultural show. The beauty of attending such a show is that through interactions, farmers will be able to learn from their colleagues what they are doing differently to tackle farming challenges. This type of learning is very powerful because studies have shown that conclusions drawn by people themselves, on the basis of their own experiences, tend to have a greater impact than insights formulated by researchers who farmers cannot identify with. Secondly, since last year, most organisations, including the National Agricultural Research Organisation (NARO) are using the commodity approach of exhibition where various processes along the entire value chain of a given commodity are clustered and presented in a logical order. This means farmers can look at them and identify opportunities, including markets, agro-processing and management practices, among others. I have also learnt that the organising committee of the show will hold short trainings in various areas, such as coffee, dairy, poultry, piggery, pumpkin and banana production. There will also be trainings in passion fruit, bamboo and mushroom growing. Other areas in which participants in the show will be trained include horticulture, bee keeping, fish farming and agri-financing. I believe that through this show, farmers will enhance their capacities and competences and those of their households and thereby improve their livelihoods. The writer is a Development Communication Officer at NARO secretariat Email: atibunik@yahoo.com Tel: 0774133724

26th Source of the Nile Agriculture & Trade Show Magazine

13th - 22nd July, 2018

Analysis

National Budget 2018: Will agriculture sector allocations deliver Ugandans to prosperity? By Eric Wakabi

The overall figures of the 2018/19 budget allocation for agriculture sector show an increment of about sh28b compared to the just concluded financial year. Figures from the budget paper indicate that the agricultural budget allocation for financial year 2018/2019 is Shs 892b up from Shs 865b in financial year 2017/2018. But what exactly does this translate to and what does it mean to the sector always referred to as the back bone of Ugandaâ&#x20AC;&#x2122;s economy?

ccording to the FY 2018/19 ministerial policy statement for the agriculture sector, a good percentage of the agriculture budget is going to cover wage and non-wage recurrent expenditure, amounting to about Shs 270b. Whereas many departments will see several cuts others will witness some increments. Sectors such as crop resources, directorate of animal resources, agricultural extension and skills management, among others have suffered huge cuts and realising their potential will be determined by how frugality and maximum utilisation of the small resource envelope. The government through the Agriculture Sector Strategic Plan says a competitive, profitable and sustainable sector transformed from subsistence farming to commercial agriculture will drive up employment opportunities for the youth and women. This will also increase household incomes and ensure food security. However, the breakdown of the agriculture sub-sector budgetary allocation is likely to limit the performance of some key sectors whose funding has been reduced. The budget indicates that about 50 percent is allocated for domestic development, with government contributing Shs 681b, while donor contribution amounts to Shs 211b.

18 13th - 22nd July, 2018

Allocation according to sub-sectors Agriculture and animal industry is perhaps one of the biggest winners in this financial yearâ&#x20AC;&#x2122;s budget taking Shs 355.7b, up from Shs 107b the previous financial year.

The National Agriculture Advisory Services (NAADS) had a budget cut from Shs 279.7b to Shs 249.98b while the National Agricultural Research Organisation (NARO) financing was reduced from Shs 85.9b to Shs 62b. Uganda Cotton Development Organisation was allocated Shs 5b, Uganda Coffee Development Authority Shs 73.6b, while the Local Government agriculture and commercial services got a bigger share of Shs 122.97b. Dairy development and regulation was given Shs 5.7 billion down from Shs 6.6b in 2017/18 financial year. Under urban farming, Kampala Capital City Authority was allocated Shs 6.7b down from Shs 8.4b while the National Animal Genetic Resource Centre and Data Bank got Shs 11b down from Shs 12.1b. With the National Development Plan II (NDPII) identifying agriculture as one of

26th Source of the Nile Agriculture & Trade Show Magazine

Analysis

the primary growth sectors in the coming years employing up to 65 per cent of the population, it remains to be seen how the government will transform the Ugandan society from a peasant to a modern prosperous society while having significant cuts in the key areas including NAADS. Agriculture remains a core sector of the economy and the main source of livelihood for most of the population. The sector employs about 69% of the labour force, 77% of who are women and 63% are youth, mostly residing in the rural areas. Furthermore, this sector is the biggest earner of export revenues, contributing to 26% of Gross Domestic Product in 2015.

National Budget Allocation FY 2018/2019

Shs 892b

Budget Allocation according to sub-sectors

Shs 6.7b

Shs 5.7b

Kampala Capitla City Authority (Urban farming)

Dairy development and regulation

Shs 11b

National Animal Genetic Resource Centre and Data Bank

Shs 249.98b

The National Agriculture Advisory Services

Shs 122.97b Local Government agriculture and commercial services

The continued dreary budgetary allocations to the sector, however, only indicate how its importance is undermined.

According to the Civil Society Position Paper on the agriculture sector budget 2018/19, the performance of the sector has consistently been exhibiting poor growth over the last three financial years, with sector performance growth indicated at

Budget allocation for Agriculture and animal sub-sectors

National budget allocation for the agriculture sector

The sector was singled out as one of the growth sectors in the NDPII for the achievement of Vision 2040. Strategic and solid investment in the sector, therefore, is transformational and inclusive, capable of bringing returns on every cent invested. The annual budget plays a pivotal role in guiding this form of financing while specifying the results to be achieved, all of which can be consolidated to measure the progress of achieving NDPII and eventually Vision 2040.

The implementation of the NDPII is annually reflected in the National Budget. The compliance of the 2018/2019 agricultural sector budget vis a vis the estimates of the NDPII shows that the current budget allocation to the agriculture sector is still below the NDPII costing of Shs 1.08 trillion by over Shs 200b.

Shs 355.7b

Shs 73.6b

Coffee Development Authority

Shs 5b

Uganda Cotton Development Organisation

1.3% against the NDPII growth estimates of 6.4% for the financial year 2017/2018. The paper also indicates that the agriculture sector growth trajectory and financing remain significantly below the African Union Malabo commitment of 6% growth and 10% budget allocation. The agricultural sector being primarily funded through the national budget, with

26th Source of the Nile Agriculture & Trade Show Magazine

Shs 62b

National Agricultural Research Organisation

additional resources from donors in form of project support, the sector allocations for the last three financial years under NDPII have consistently been stunningly below 6%. Yet the sector remains key to Ugandaâ&#x20AC;&#x2122;s economic growth, it is critical that if the sectoral goals have to be achieved, budget allocation increments like the one in financial year 2018/2019 need to be consistent until the 10% of the national budget threshold is achieved. 13th - 22nd July, 2018

Advertorial

UGANDA PRISONS SERVICE VISION

MISSION

MANDATE

To be a centre of excellence in providing human rights-based correctional services in Africa

To contribute to the protection and development of society by providing safe, secure, and humane custody of offenders while placing human rights at the centre of their correctional programmes

1. Uganda Prisons is mandated to keep custody of prisoners and rehabilitate offenders. 2. Assigned responsibility of cotton, seed and furniture production for Government

Uganda Prisons Service: Rehabilitating inmates through farming & industrial programmes With a total of over 40,000 acres, the Uganda Prison Service (UPS) is undertaking various farming enterprises. The crop and animal farms are not only intended for food production, but also to transform the lives of inmates by involving them in various farming activities. The inmates participate in agroforestry, crop production, poultry and cattle rearing. Some of the crops grown include maize grain, seed maize, cotton and oil crops. UPS also equips inmates with industrial skills such as carpentry and joinery, art and craft, tailoring, among others.

Sunflower growing at Rwimi Prisons Farm.

Uganda Prisons Service is member of Justice, Law & Order Sector (JLOS) 20 13th - 22nd July, 2018

26th Source of the Nile Agriculture & Trade Show Magazine

Advertorial

Prison Farms Maize grain production

Cotton production

Uganda Prisons Service cultivates an average of 5,000 Acres of maize per season on over 20 prison farms across the country. Its average output per acre is of 18 bags of maize grain. The purpose of growing maize is to sustain the Uganda Prison Service food needs as well as to rehabilitate prisoners through involving them in modern farming practices.

UPS is currently growing 4,600 Acres of cotton with the aim of reviving the textile industry. At the beginning of the cotton project in 2016, the commissioner general of Prisons, Dr Johnson Byabashaija, said growing cotton was a strategic move that would boost textile industries in Uganda, thereby enabling the country to reduce importation of used/second hand clothes.

A maize field at the Uganda Prisons Farm in Ibuga

A cotton harvest at the Uganda Prisons Farm in Ragem

Seed maize multiplication project

Agroforestry & fruit growing

UPS is also running a maize seed multiplication project to address the challenge of inadequate supply of quality seeds. Currently, two varieties of certified seed maize are being multiplied, namely; the Hybrid UH 5051 and the Longe 5D (open pollinated variety). The seed maize is of the African variety series, which is high yielding, drought resistant and resilient to maize streak virus, can be grown in all regions of the country and is a unique source of protein.

In 2013, the UPS embarked on the expansion of afforestation. So far, 837 acres of local eucalyptus, clonal eucalyptus, pine and other trees species have been planted for restoration of the environment and for wood fuel. UPS has also planted 391 acres of oranges, mangoes and avocado.

Certified seed maize produced by the Uganda Prisons Service

A tree plantation at Uganda prisons Service Lugore Farm

The Uganda Prisons Service Plot 13/15 Parliament Ave., P.O.Box 7182 Kâ&#x20AC;&#x2122;la

Tel: +256414342136, +256 414 256 751 Fax: +256 414 343 330 +256 414 344 014

Email: info@prisons.go.ug Website: www.prisons.go.ug

Uganda Prisons Service is member of Justice, Law & Order Sector (JLOS) 26th Source of the Nile Agriculture & Trade Show Magazine

13th - 22nd July, 2018

Advertorial

Mechanisation

Livestock

UPS is advancing its level of mechanisation by investing in heavy machinery in terms of horse power like heavy duty tractors, combine harvesters, minimum tillage planters and self-propelled boom sprayers in order to improve on production and productivity.

Uganda Prisons Service as has 1,700 heads of cattle kept for both fattening and breeding in order to realise Non-Tax revenue. UPS also has 500 goats, 327 sheep and engages in poultry farming as well.

Mechanisation at Ibuga Prisons Farm.

A herd of cattle at the Uganda Prisons Farm in Lugore.

Prison Industries Under the Uganda Prisons Service industrial programme, inmates are trained in Carpentry and Joinery, Metal work and Fabrication, Art and Craft, Tailoring, carpentry, Performing Arts among many others. Recently, in a bid to promote the Buy Uganda, Build Uganda policy, President Yoweri Museveni directed all government Ministries, Departments and Agencies (MDAs) to purchase furniture from UPS. An inmate receives skills training in Carpentry and Joinery.

Art and Craft

The Uganda Prisons Service Plot 13/15 Parliament Ave., P.O.Box 7182 Kâ&#x20AC;&#x2122;la

Carpentry and Joinery

Tel: +256414342136, +256 414 256 751 Fax: +256 414 343 330 +256 414 344 014

Tailoring

Email: info@prisons.go.ug Website: www.prisons.go.ug

Uganda Prisons Service is member of Justice, Law & Order Sector (JLOS) 22 13th - 22nd July, 2018

26th Source of the Nile Agriculture & Trade Show Magazine

Agriculture Financing

Provide farmers soft loans as means of boosting agriculture Uganda’s economy has continued to grow at a steady rate of 6.5 per cent annually for the past several years. And of all the four sectors - ICT, industry, and services - have and continue doing well, while agriculture seems to be stagnating and struggling. During the State-ofNation Address on June 6, the president said agriculture employs 38 per cent of Uganda’s work force and contributes nearly 37 per cent of the GDP.

ith naturally endowed resources such as ample fertile soils, warm climate and relatively regular rainfall, agriculture would by far, be the most successful sector in the economy, had it not been for government’s neglect of the sector. This is evidenced by the meagre allocation of Shs832b in the 2018/19 financial year Budget. This is 3.8 per cent of GDP, which is way below the 10 per cent recommended by the Abuja Declaration to which Uganda was signatory. The challenges in the agriculture sector range from top policy makers, who make all the decisions down to the disgruntled grass roots farmers or households. I picked out two major ones that need to be addressed: There is a ministry for Agriculture with a budget for designing frameworks that should propel the sector, but a lot is left to the imagination as to whether plans are fully implemented. First, the lack of efficient credit facilities to provide farmers with soft loans and capital, has limited application of technology in agriculture. The few existing credit facilities are either far away in urban centres or they ask for collateral securities, which many farmers can’t afford. The good news is that government can revive by recapitalising Saccos to provide these farmers with capital to invest in Agriculture as well as providing tax incentives, including low taxes on agricultural inputs and machinery, tax holidays for industrialists dealing in agricultural inputs and

The challenges in the agriculture sector vary from top policy makers, who make all the decisions down to the disgruntled grass roots farmers or households.

machinery, which in turn could attract more investments in the sector. Putting in place insurance programmes to safeguard farmers against loss in times of natural disasters is an additional mechanism that would augment inclusiveness in the sector.

level with little or no technical instructions on how to handle and care for such crops during and after planting. For example, in Soroti District, treated maize seeds were distributed to the locals, but they opted to boil it to get rid of chemicals used in treating them before they eat them.

Secondly, there have been targeted government interventions such as seed distribution and provision of extension services, but these have not yielded much.

Operation Wealth Creation has since sidelined NAADS that had the technical expertise to sensitise farmers on such matters.

So-called improved seed varieties are distributed to household farmers at grassroot

Jacob Opio, Uganda Debt Network

26th Source of the Nile Agriculture & Trade Show Magazine

13th - 22nd July, 2018

Agricultural Insurance

Maize garden which has dried due to drought.

Agricultural Insurance: Protection farmers can get against natural disaster When your livelihood solely depends on farming you cannot afford to leave everything to the mercy of natural elements. With farming you can never be effective enough to physically protect your garden, crops or livestock to the fullest because some factors are way beyond you.

By Mariam Nalunkuuma

Insurance Regulatory Authority 24 13th - 22nd July, 2018

arly this year, there were reports of an outbreak of army worms striking farmers in the southwestern and northeastern parts of Uganda. The attack which was first detected in 2016, affected farmers in close to 54 districts. As an emergency measure, the Ministry of Agriculture advised farmers to use a combination of various pesticides as more sustainable management measures were being explored. During the outbreak, the government spent about sh4.5b (US$1.2 million) to control the pest. Since time immemorial, farmers have through traditional and now modern systems, devised means

to limit risks on their farms by taking measures such as crop rotation, tillage system, diversification and intercropping. Although such measures have been used, problems of residual risks still remain. Farmers continue to be exposed to the common risk of natural epidemics. As a result of the climate change for example, Ugandan farmers are experiencing a number of losses arising from new pests and diseases. Itâ&#x20AC;&#x2122;s now the Fall Army Worm, which is majorly affecting maize yet maize contributes a lot to the livelihoods of over 3.6 million households in the country. 26th Source of the Nile Agriculture & Trade Show Magazine

Agricultural Insurance

The striking of the fall army worm is likely to impact on the nationâ&#x20AC;&#x2122;s food security and wealth creation efforts. We all know that farmers have never had control over the rains, yet, they buy seeds in hope that they will get good harvest. Farmers go ahead to purchase machinery, planters, tractors and large harvesters hoping that they will have so much yield during harvesting. With the changing weather and climatic conditions and for farmers to hedge against agricultural risks/natural disasters over which they have limited or no control, it is high time farmers appreciated the need for agriculture insurance.

Number of insurance companies that are duly licensed by the Insurance Regulatory Authority of Uganda (IRA) to provide agricultural insurance

The Governmentâ&#x20AC;&#x2122;s introduction of the agriculture insurance subsidy is aimed at making agriculture insurance affordable to farmers and increase access to credit by protecting agriculture loans disbursed by financial institutions from the effects of specified agriculture risks.

Farmers dealing in cattle, poultry, pigs and fish also have been taken care of under the livestock insurance cover. Farmers taking agriculture insurance through the subsidy are protected against financial loss arising from damage and destruction of their crops and livestock resulting from fire, drought, uncontrollable pests (where army worm falls), uncontrollable diseases, hailstorm, windstorm, lightning, landslides and flooding among others.

With the sh5b insurance premium subsidy in place, farmers dealing in maize, beans, cotton, coffee, banana, irish potatoes, cassava, millet, fruit trees, rice, barley, oil seeds, horticulture, vegetables and cocoa have an affordable insurance cover that protects them against any eventual loss.

Currently, 10 insurance companies that are duly licensed by the Insurance Regulatory Authority of Uganda (IRA) namely, APA Insurance, CIC General Insurance, FICO, Goldstar Insurance, Jubilee Insurance, Sanlam General Insurance, NIC General Insurance, Pax Insurance, Phoenix Insurance and UAP

Insurance have formed an Agro-consortium to provide agriculture insurance. Although the uptake of this agriculture insurance product is still low, the performance since 2017 shows that so far 13,104 farmers from western region, 12,811 from eastern, 10,934 from central and 3757 from the northern region have benefited from the sh5b government subsidy. Under this scheme, government pays 50% of the basic premium for the small scale farmers and 30% for a large scale farmer. The value of the crops to be insured is determined basing on the cost of the farm (seeds, fertilisers, ploughing, weeding etc) or the estimated value of the crops when harvested. For livestock, the value is determined basing on how much a farmer spends on raising the livestock or the expected market value at the end of the insurance period. The market value is also determined by a registered veterinarian and the farmer. In case of poultry layer birds, the value of the birds is considered using the farmerâ&#x20AC;&#x2122;s investment in the farm. Agricultural insurance is a new area of business to farmers and on the market, which calls for information and knowledge in various aspects to be built up. The IRA has continued to encourage and support the Agro-Consortium to provide agriculture insurances and engage in continuous education, sensitisation and training campaigns on agriculture insurance. This we hope will enhance insurance awareness and will go a long way towards making insurance a priority risk solution. Not all the hope is lost for a farmer battling the fall army worm, other epidemics and natural disasters, insurance is your partner in this battle. Insurance will also help to reduce the financial vulnerability by providing farmers with a means to access finance and credit. Agriculture insurance and indeed insurance in general will help the Ugandan farmers

26th Source of the Nile Agriculture & Trade Show Magazine

13th - 22nd July, 2018

Agricultural Insurance

who are looking towards doing agriculture as a business and of course the whole country in our journey towards the middle income status. For any further details, IRA and the Agro Insurance Consortium (the Uganda Agriculture Insurance Scheme), we are participating in the forthcoming Agriculture trade show in Jinja 2018 and very excited, ready to receive you, discuss further how to protect your farms against the natural vagaries. The writer is the Senior Communications Officer, Insurance Regulatory Authority of Uganda Fall Army Worm damaged maize leaf.

Fall Army Worm damaged maize cob.

How to join the Agriculture Insurance scheme Through the Agro-Consortium, a coalition of 10 insurance companies was set up to provide agriculture insurance to Ugandan farmers under the Uganda Agriculture Insurance Scheme (UIAS). The Scheme is a Private-Public Partnership (PPP) between Government and the Insurers with a stake in Agriculture Insurance. The PPP is aimed at protecting farmers from financial losses arising from damage and destruction of their crops and livestock resulting from; Fire, Uncontrollable diseases, Drought, Hailstorm, Lightening, Landslides, Earthquake, Windstorm, Explosion, Malicious damage, Uncontrollable pests, Flooding, Excessive rainfall among others.

Who can join to benefit from the scheme? Both small and large-scale farmers can benefit from the scheme, but the benefit varies (a relatively greater subsidy for small scale farmers). For effectiveness and cost management, Small scale farmers may come together and form groups whereas large scale farmers may join the scheme as individuals.

Multi-peril insurance (Insurance cover for many risks) Crops Value of crops is determined based on;

Animals Value of animals is determined based on;

Cost of farm inputs (seeds, How much is spent on fertilisers, ploughing, raising them; weeding etc); Expected market value at Estimated crop value when the end of the insurance harvested period;

Stock projection and risk survey for new farm.

How much is sold from the In case of poultry, value is crops. based on farmerâ&#x20AC;&#x2122;s investment in the poultry farm.

What is covered under the scheme?

The scheme covers crops such as; Coffee, Tea, Rice, Tea, Oil seeds, Vegetables, Cotton, Maize, Bananas, Irish potatoes, Fruit trees, Cocoa, Beans, Millet, Barley, Cassava and Horticulture. Livestock such as Cattle, Poultry, Pigs and Fish are also covered

Governmentâ&#x20AC;&#x2122;s contribution to the scheme The government since 2016/17 financial

26 13th - 22nd July, 2018

Fish Value is determined based on;

year avails sh5b to be used to subsidise the insurance premiums payable by farmers. The government pays 30% of the basic premium for large scale farmers and 50% for small scale farmers.

You are also advised to engage the Insurance Regulatory Authority of Uganda on any other insurance related matter in addition to lodging complaints if dissatisfied with the services of any licensed insurance service provider. Call us on 0800 124 124.

26th Source of the Nile Agriculture & Trade Show Magazine

Agricultural Insurance

26th Source of the Nile Agriculture & Trade Show Magazine

13th - 22nd July, 2018

UGANDA

Quality out of Dedication

AgriculturalInsurance

让电尽其所能

0393-130-666 0757-570-888

正

泰

电

器

6th Street Industrial Area

sales@sccuganda.com

Plot No: 147-153, 6th Street Industrial Area Kampala, Uganda

www.sccuganda.com Standard Cable Corporation Uganda

+256 393 130 068 Email: sales@chintuganda.com Web: www.chintuganda.com

CHINT Uganda

标

准

电

缆

Connecting Your World......

28 13th - 22nd July, 2018

Proudly Ugandan! 26th Source of the Nile Agriculture & Trade Show Magazine

Job Creation

Instilling job-creation mentality in students As a lecturer at the college of Veterinary Medicine, Animal Resources and Bio-security in Makerere University, I have seen a migration from a job-seeking mentality to a job-creating one among my students. This was as a result of introducing a practical business education model anchored on four pillars: Skills, Production, Enterprise, Development mindset and Academics (SPEDA). The SPEDA programme has become a sure means of eradicating youth unemployment.

As their lead lecturer, I determined to see this success story spread wings. I involved the trio in peer learning sessions and exhibitions, both within and without the university, particularly in agriculture shows. Their market expanded and consequently their production as well. Other students began to follow in their footsteps, forming companies and producing dairy products.

ften times youth drop off the academic path due to various reasons. For instance, in many cases, when they lose a parent or guardian or fail to attain the required results for the next academic level, they drop out of school. Such youth are often left to languish in poverty with no clear direction in life.

The Government of Uganda has been urging the youth to become job creators instead of seekers. This, unfortunately, it did against a backdrop of majorly theoretical academic programmes. Even those academic programmes designed to promote business often do not emphasise personal business development as a requirement for graduation. Hope was, however, restored when the Government agreed to test the SPEDA programme.

By Joanne Kyozaire Kisaka Lecturer, Makerere University

A student enrolled on the SPEDA programme is expected to develop a business concept in their first year. The concept is then improved as they progress in the course. Basic skills in entrepreneurship are acquired alongside a science foundation in animal production and animal resource product processing and value addition. A student is permitted to graduate, only after having clearly displayed his or her entrepreneurial skills with a running business. Grace Mwebaza, Bridget Nalukolobyo and Collins Bunanukye are some of my outstanding students in this educative model. They embarked on the bachelor’s degree programme in dairy industry and business, having decided to work together to form a simulated company. They produced dairy products, which they sold to fellow students. Soon, staff members joined the list of their customers. I observed these young students passionately pursue their business idea alongside their studies. Their products kept on improving in quality as they tried out better procedures of production.

26th Source of the Nile Agriculture & Trade Show Magazine

The Ministry of Education ought to partner with other ministries to enhance the migration from a job-seeking mentality to a job creating one.

Soon after, I saw an incubation centre getting established. I had seen students develop products in an incubation centre while on a study tour in Hokkaido, Japan, but little did I know that I would have one like it in Uganda. Though this is a much smaller version than the one I saw in Japan, it serves the same purpose. This makes me feel fulfilled and happy. I have become one of my students’ frequent customers. Their success is my success. Mwebaza, Nalukolobyo and Bunanukye are promising youth who have discarded the job-seeking mentality and are out to create their own jobs. They are notable actors in Uganda’s dairy industry as they support some dairy farmers by buying fresh milk. In addition, through their business initiative, many people have got employment as milk transporters and marketers. Moreover, students are now able to access freshly prepared yoghurt and ice-cream at a student-friendly price through this initiative. This experience has made me realise that education will only gain meaning when it plunges into industry, even at curriculum level. The Ministry of Education ought to partner with other ministries to enhance the migration from a job-seeking mentality to a job creating one. My students are a product of the initiatives by both the Ministry of Education and the Ministry of Agriculture, Animal Industry and Fisheries to promote meaningful “education for all” and commercial farming through farm enterprise development and value addition, respectively. 13th - 22nd July, 2018

Agribusiness Tips

How to establish a successful value added agricultural enterprise Value added agriculture entails changing a raw agricultural product into a new commodity through packaging, processing, cooling, drying, extracting or any other process that improves it. Examples of value added agricultural products include sausages, wine and juice, among others. Adding value to agricultural products is a worthwhile endeavour because of the higher returns that come with the investment. The high returns are as a result of the opportunity value addition gives the farmer to open new markets, extend the marketing season as well as create new recognition for the farm.

ncreasingly, value-added products are hitting the local market as producers take advantage of high-demand product niches. Niche markets are where smaller producers can be most successful in creating value and establishing a profitable business. Value added agriculture has been touted as the solution to the problems facing farmers as it is expected that it will increase house incomes, create jobs and lead economic growth. Below are tips to farmers who wish to start up enterprises in value added agriculture.

1. Start small and grow naturally

Start small and do not grow too fast. Don’t invest a lot of money at the beginning. Be patient and go through your research and development phases. Whatever you start with, try to get all the profit out of it. This implies that you should not sell your products to wholesalers. You will be learning and naturally making mistakes along the way. Starting small means that your mistakes are likely to be less costly. Moreover, if you are new to managing an agricultural enterprise, it is much easier to manage a small operation.

2. Make decisions based on good records 30 13th - 22nd July, 2018

Trying to manage and grow an enterprise without good records is like trying to find an address in a strange city without a map. Without records, you are unable to make uneducated guesses about the progress of your business, whether or not you are meeting your goals and the possible reasons why or why not.

3. Create a high-quality product

Since farmers can’t compete in the high-volume commodity markets, they have to concentrate on quality, not quantity. Offering a high-quality product is multi-dimensional. It involves reliably and sustainably producing a fresh, better tasting and clean commodity; and consumers know it when they taste it! While it may be tempting to use culls or damaged fruits, vegetables and herbs in processed food products, the wise processer will desist from it if they truly want to develop the enterprise. Production of low quality goods is the downfall of many farmers. With growing concern today about food safety, it is important that products be safe to consume.

4. Follow demand-driven production See what other companies do, but don’t imitate them too closely. Innovate, don’t copy. Pick out only what they are doing right and find your market before you

An incubatee at FTBIC showcasing packaged Bushera.

start out. In agricultural marketing, there are the “push” and the “pull” approaches. The push approach means producing a product and then “pushing” it onto consumers — the traditional means of marketing many commodity crops. The pull strategy, however, is increasingly becoming the norm in today’s market environment. In this approach, products are “pulled” out by consumer preference. Most of the producers employed this pull approach by looking for an existing market outlet or opportunity prior to production. They did not first produce and then look for markets. The presence of farmers’ markets in the producers’ areas was an especially strong inducement to production. Therefore, farmers’ markets are a good testing ground for anyone starting a value added agriculture enterprise.

26th Source of the Nile Agriculture & Trade Show Magazine

Agribusiness Tips

essential to success. Careful planning is crucial to avoid failure, or at least to minimise your losses as you learn. You may or may not need a formal business plan, but you do need a strategic plan. This plan will define the mission of your business, your present situation and where you want to be in the next few years. Your plan should cover assumptions and risks, goals and objectives and how you will report progress.

8. Continuous Evaluation

A plan that is not periodically reviewed is useless. Your business is constantly changing and your plan must be reviewed and modified accordingly. The plan must be kept current for you to effectively measure your performance. As you gain more experience and knowledge, you should incorporate your new perspectives and insights into your plan. Be sure to keep examining your original goals to make sure that your business is still meeting them.

9. Perseverance

5. Involve your family or partners It is important to involve family and partners when starting up an agro-processing enterprise as each person brings in different skills and talents. For example, family members, friends or partners who have skills in accounting are essential to many enterprises.

6. Keep informed

Farmers who are involved in value adding should be up-to-date with information regarding their particular specialty of the food chain. They should make farm visits and network with other producers at conferences and other events such as trade shows, to get useful information and insights. However, be aware that some people may see you as a competitor and not be willing to share their knowledge with you.

7. Plan for the future

“Fail to plan and you plan to fail” is a cliché for a reason — it is true. Planning is often neglected since there is no immediate reward for it, yet it is 26th Source of the Nile Agriculture & Trade Show Magazine

Start small and do not grow too fast. Don’t invest a lot of money at the beginning. Be patient and go through your research and development phases.

Why is perseverance a key to success? Most businesses take a long time to get established. It can be tough finding out how to get started with adding value to your farm products. You will need a good deal of perseverance, just to figure out how to create the products, let alone how to market them. Identifying your niche and building a customer base also takes time. You may have to do a lot of experimentation to find out what sells. Like any other good relationship, developing relationships with customers does not happen overnight. You will need to keep approaching potential buyers despite the inevitable rejections.

10. Adequate Capitalisation

A business is likely to operate at a loss for at least the first year of operation. Make sure you have adequate resources. Remember that most businesses fail due to lack of capital. The amount that you will need depends on the type of business. A manufacturing business will probably need more capital than a service business. After figuring out how much you will need for your buildings and equipment, you will also need to have enough cash at hand to cover operating expenses for at least a year, including marketing costs and some salary for yourself. You will need to have enough money to live on until your business becomes profitable, which can take years. 13th - 22nd July, 2018

Upcoming Events 3rd - 10th Oct. 2018

26th Uganda International Trade Fair Uganda International Trade Fair is a multi-sectoral trade event that provides a platform for local and international participants to showcase and marketing products and services to the Ugandan and East African markets. The Fair will feature areas like Machine & Garden Tools, Home Furnishings & Home Textiles, Architecture & Designing, Real Estate Agents, and Household Services industries. Organiser: Uganda Manufacturers Association Venue: UMA Show Grounds, Lugogo Tel: +256 414 221 034, +256 414 287 615 Email: tradefair@uma.or.ug

24th -25th Oct. 2018

International Expo for Poultry & Livestock This is a platform to exhibit products, services and innovative technologies to top decision-makers and create business partnerships. It brings Poultry and Livestock professionals from all over the world and facilitates initiating and closing business deals. Take this opportunity to showcase your products and services while enhancing your brand at East africaâ&#x20AC;&#x2122;s leading Poultry and Livestock industry. Organiser: Aviana Uganda Venue: UMA Show Grounds, Lugogo Tel: +260 971 095 116 Email: info@avianaafrica.com

4th â&#x20AC;&#x201C; 6th Sept. 2018

21st Foodagro Africa 2018 Fair The event focuses on Food & Beverage, Food Ingredients, Catering & Hotel Supplies, Processing & Packaging, Hotel Furniture, Refrigeration, Kitchen Products & Appliances, Display & Storage, Animal Food & Health, Agriculture / Horticulture, Poultry & Livestock & many more from exhibitors for over 20 countries. Organiser: EXPOGROUP Venue: KICC Nairobi, Kenya Tel: +971 430 50755 Email: feedback@expogr.com 32 13th - 22nd July, 2018

26th Source of the Nile Agriculture & Trade Show Magazine

FRESHNESS YOU CAN TASTE

UGX

2,000/= o Comes in tw rs u o v luscious flaAPPLE MANGO &

13th - 22nd July, 2018

26th Source of the Nile Agriculture & Trade Show Magazine