Celebrating Uganda’s smallholder farmers at 58 years of independence.
As the country celebrates 58 years of independence, we, as a business, in turn, celebrate the farming households for their dedication to the trade, which has not only helped contribute to Uganda Breweries’ operations but have additionally restored faith in the country’s agricultural sector.
The sector currently employs over 70% of the Ugandan population, contributes half of the country’s export earnings and quite notably, the GDP from agriculture increased from 6015.08 UGX Billion in the first quarter of 2020 to 6619.97 UGX Billion in the second quarter despite the current economic climate brought on by the COVID-19 pandemic.
The Irish trade unionist and politician, Edward W. Stewart, once said, “Agriculture was the first occupation of man, and as it embraces the whole earth, it is the foundation of all other industries”.
This quote rings true, especially for our business, which requires over 4,000 metric tonnes of barley, over 6,000 metric tonnes of sorghum, over 5,000 metric tonne of cornstarch and over 2,000 metric tonnes of cassava.
As the country’s oldest brewery, we have sought to empower smallholder farmers the country over through our Local Raw Materials (LRM) program, which has since 2010, injected over Shs.32 billion annually towards the purchase and distribution of high-quality seeds and inputs to 14,000 farmers countrywide in addition to employing skilled agronomists, who are deployed to the field to provide hands-on training and support whenever required by the farmers.
This is all in an effort to build a strong and resilient supply chain that can feed our annual demand and ensure that we source 80% of our raw materials locally.
The program also holds a much deeper meaning for us, which is to improve the quality of life in our farming communities, and last month, the supply chain team and myself took a trip to Southwestern Uganda, specifically the Kigezi region districts of Kabale and Kisoro, on a mission to assess the progress of the LRM program and engage with the farming communities.
It was during this stop that we encountered Twesigye Erasmus and other farmers from the Murandamu Kahungye Barley Farmers Association in Rubaya sub-county, Kabale district, who started growing barley as a cash crop in 2017 with 100 members, which number has since grown to 557 members, 200 of whom are women.
A particular point of pride for us was hearing of the benefits that the group has since accrued as a result of our relationship, like having the income to improve their quality of life and diversify into several activities that afford them a better way of life, like goat rearing.
During this visit, we were joined by two critical partners - Grainpulse and Solidaridad, which three-way partnership is built with the singular goal of ensuring that the farmers get the value they deserve.
Under the current arrangement, UBL provides the barley seed, agronomists and assured market for the produce; Solidaridad builds capacity through demonstrations on the best agronomic practises like soil fertility management; and Grainpulse provides the fertiliser, post-harvest management and quality assurance.
After Kabale, we interacted with the Kanyangabo Kazigabo Group in Gitendere parish of Kisoro district, where our relationship with the farming households began in 2016.
Both these groups are currently able to harvest about 5 sacks of barley per acre, each earning individuals upwards of Shs.3 million per acre.
As a result, we have seen the quantities of barley sourced from Kigezi increase from 400kg per acre in 2017 to an average of 1000kg per acre in 2020, which constitutes 53% of all the barley used in our brewing processes.
As the effects of the Corona Virus on the local economy reached their peak, we witnessed the epitome of mutual self-sufficiency, with UBL depending on the farmers for barley and the farmers depending on us for critical field support and assured market once the harvesting season arrived.
The pandemic made it evident that import substitution should not be just a politically correct statement, but a pressing necessity for the growth of the economy and we are honoured to be partnered with communities of dedicated farming households to drive the spirit of Buy Uganda Build Uganda.
On Independence Day, we raise a glass to the farmers, who have been the bedrock of Uganda’s economy and made it possible for industries like ours to thrive, and we are stating our commitment to making the sector more productive by deepening our relationship with the farmers through the LRM program.
Celebrate Life. Grow Uganda.
Senior Finance Advisor Trading and Supply
4 年Good read.