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

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 recognition of the growing importance of sorghum as a strategic crop in East Africa for food security and improved livelihoods, East African Breweries Limited (EABL), the Common Fund for Commodities (CFC) and EUCORD have entered into a partnership to jointly promote the sorghum sector through research, development, supportive policies and capacity building. The project will be funded to the tune of USD 2.6 million over a four year period and will be implemented in Kenya, Tanzania and Uganda. This public-private partnership aims to develop a stable and high quality sorghum supply chain that will increase incomes of sorghum farmers and enable national beverage industries to substitute imported grains by locally produced sorghum by:

1)  improving the productivity of the sorghum sector through the introduction of new sorghum varieties and cultivation practices;
2)  organizing and strengthening producers groups through technical training and facilitating access to inputs and credit;
3)  introducing out-growers schemes by facilitating collaboration between medium and large commercial farmers and surrounding groups of smallholder farmers; and
4)  strengthening private sector input providers and intermediary long-distance traders through the facilitation of contractual arrangements, introduction of ware-house receipt credit and other credit provisions and business development training.

Launching ceremonies took place in Nairobi, Kenya and in Kampala, Uganda, on the 18th and 21st of July 2011, and were attended by key stakeholders including researchers, seed companies, input suppliers, extension providers, intermediary service providers and financial institutions. The multi-institutional platform will play a critical role to help intensify sorghum cropping in a sustainable manner, contribute to capacity building across the value chain and develop favorable policy frameworks.

Making the opening remarks, Ms Mumbi Muiruri, the General Manager East African Maltings Limited, indicated that though EABL has partnered with farmers in the barley industry for close to 50 years and is now self sufficient in barley supply, this has been achieved due to rigorous application of contract farming that guarantees a market and price for the barley, bank financing, crop insurance, new innovations in agricultural practices and efficient extension services. The company has now created innovations in the use of sorghum for beer production and is diversifying into using sorghum. The huge success in the barley industry was as a result of strategic partnerships with various public and private institutions, namely universities, KARI, Global Malt Services, Ministry of Agriculture, seed companies and farm input suppliers. The East African Sorghum Value Chain Project will be mirrored on this success of strong strategic partnerships with all stakeholders and players in the sorghum industry.

The Technical Director Local Raw Materials Mr. Peter Cege said EABL’s sorghum requirement is on the increase and the project should deliver the more than 50,000 MT of sorghum required. Challenges that will need to be overcome by the project range from low yields, lack of suitable varieties, limited use of good agricultural practices, bird menace and effects of climatic change. Sorghum supply needs to be sustainable, of consistent quality and at competitive prices, so as to offer a cost effective alternative for local raw materials. Sorghum farmers are generally constrained in terms of availability of suitable land, erratic rainfall, poor knowledge base, poor infrastructure and low competitive scope. The project will address these challenges by providing the farmers with the tools to increase sorghum production, access the market created by EABL thereby improving their income and livelihoods.