Via East African Business Week by EABW reporter, 20/02/2012

Kampala, Uganda – Uganda Breweries Limited (UBL) has launched a recruitment programme for large scale sorghum farmers in Kapchorwa. This follows successful large scale sorghum growing trials carried out in Uganda’s Sebei region in 2011 as part of UBL’s local Raw material sourcing program. The program is implemented by EABL subsidiary company East Africa Maltings Uganda (EAMU). The recruitment drive coincided with the commissioning of the Kapchorwa Commercial Farmers (KACOFA), storage and processing plant in Kapchorwa on February 7, 2012. KACOFA has been one of EAMU’s key supplier since 2003.

According to Mr Joseph Kawuki, Agribusiness Manager, East Africa Maltings Uganda, the programme will initially target over 5,000 acres. So far 2,000 have been identified. UBL has embarked on an aggressive campaign to promote sorghum growing in Kapchorwa for use as raw materials for its products. Availability of quality local raw materials is a key driver to Uganda Breweries performance.
The grain that includes barley and sorghum is sourced by East African Maltings Uganda (EAMU) from small scale farmers who are organized in producer groups. Other regions targeted include Kitgum, Lira and Ibanda and Kasese among others.

“Large scale mechanized farming is still limited but we are optimistic that with this programme, more farmers will embrace it and build capacity of the farmers to competitively supply quality grain that meets our demands,” adds Kawuki. Uganda Breweries Limited began its local farmer programme in 2001 primarily focusing on Teso and Lango regions and Ibanda in Western Uganda. Over 17,000 farmers have benefitted under the sorghum and barley programmes which provide farmers with access to quality seeds, fertilizers, equipment and extension services.

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via Daily Nation by Nation Correspondent, 29/1/2012

Over 500 farmers in Siaya County stand to benefit from a new sorghum growing venture that will start next month. Speaking to the Nation on phone, East African Breweries Ltd communications officer Joseph Sunday said the project has been informed by the high demand for the grain that is out of step with supply.

via Financial Times, by Ross Tieman, 22/6/11

The procurement policies of multinational companies can shape the prosperity of communities, regions and nations. Many are now trying to use their purchasing power to combat poverty, but the task is complex. Demand is only half the equation. In emerging economies, they have also to nurture capacity among small farmers and entrepreneurs even as they offer them a market. When they succeed, the effects can be striking. Five years ago, Heineken International set out to procure rice locally for Bralima Breweries, a subsidiary in the Democratic Republic of Congo.

In partnership with the European Co-operative for Rural Development (Eucord) a Brussels-based non-governmental organisation (NGO), and the Schokland Fund, backed by the Netherlands government, Heineken promoted rice production in abandoned paddies along the River Congo. The project provided seeds, advice, boats to collect the harvest and even bicycles to transport the sacks to the jetties.

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Between 27 and 29 September EUCORD organized two Consultative Rice Round Table Meetings in Uganda and Tanzania with financial support from the Common Fund for Commodities (CFC). The meetings, which were hosted by Sasakawa Global 2000 in Uganda and the Netherlands Development Organisation SNV in Tanzania, were attended by representatives from government, research, and development agencies and the private sector.

Objectives of the meetings were to:
1. Review the current state of rice value chains in Tanzania
2. Identify key constraints and opportunities
3. Provide recommendations on how rice value chains can be enhanced

According to the Africa Rice Center (formerly WARDA), Africa only produces 3% of global rice production and is importing USD 5 billion worth of rice yearly. In 2009 Africa imported 9.8 million metric tons of rice which represents one third of the world market and 40% of total needs. Uganda and Tanzania are both net importers of rice and have the intention to double rice production by 2018 and become exporters.

During the Round Table Meeting it became clear that both countries share several common bottlenecks to reach this objective including: 1) lack of farmers’ access to production technologies including quality seed, fertilizer and agro-chemicals; 2) poor access to agricultural credit; 3) lack of appropriate mechanization (both for production and post-harvest activities); 4) limited investment in irrigation; 5) lack of grading standards; and 6) limited private sector investment in large-scale rice processing.

Preliminary recommendations that would apply to both countries:
• Support seed multiplication and marketing of improved rice varieties;
• Capacity building of farmers on rice intensification and post-harvest handling;
• Diffusion of improved rice technologies using a private sector led approach (stockists and use of a rice box);
• Promotion of appropriate labor-saving technologies, e.g. through equipment hiring schemes and conservation tillage;
• Scaling up of proven supply chain models, e.g. nucleus estate out-grower schemes in collaboration with large scale rice processors.

Findings from both meetings will be used for the development of a proposal which will aim to support a market-led, value chain pilot project in the two countries and in synergy with ongoing rice development activities.

(In the photo, from left to right: Mr. Kuleshov (CFC), Mr. Okasayi (Director Crop Resources, MAAIF) and Dr. Nyamutale (SG2000) during the meeting held in Uganda.)