AGRARIAN VALIDATION PRESENTATION 2013

Validation meeting VALUE CHAIN ANALYSIS IN BULIISA

Buliisa

Monday September 30th 2013

SNV activities in the oil region and partners

2Title

Jonam-Nwoya

Buliisa

New on going studies in Hoima and Biiso

Title

3

Qualitative analysis of 8 value chains

4Title

Prioritization meetings

VALUE CHAIN ANALYSIS

MILK and DAIRY

Quality determinants in Livestock Management System

Milk Production

OwnerOwner•Recruit herdsmen•Sells/Buys: choose breeds•Determine general management and intensification level •Take on costs and investments•Manage risks

HerdsmenHerdsmen•Graze•Milk:

o Daily milking activityo Insure productivity of the cows by

grazing and watering practiceso Arbitration between calves feeding

and milking: park and make lots…•Supervise animal care: assess and monitor animal health, administrate treatment•Responsibility engaged in case of losses

Cattle= capital/wealth

Income sources in other activities

Grazing/Milking= main activity

Milk= Main income source and staple

food

DECISIONS, SUPERVISION

KNOWLEDGE, MANAGEMENT

MILK MARKETING

• Sold by herdsmen or Abashundas• Low demand, perishability: low quantities, multiplicity of actors• Quality challenges in milk transportation:

Use of Jerry cans Cleaning practices? Dilution

• Low local demand, low prices• No marketing of added value products

7Title

Transportation: new requirement, new actors?

• Cans: requirement for hygiene Volume VS production? Price VS profit? Cleaning? Can parc maintained, with deposit or share… 1st step= Jerrycan

park?• Professionalization of Abashundas: agents contracted for

collection• Local collecting points• Network from collecting points to the cooler

Vehicle?

8Title

Costs and margins changes for existing actors• Costs for the owner• Main margin for the herdsmen• Small margin for Abashundas

• Margin transferred to owner: what will be the share for the herdsmen? Who will accept to milk and graze for salary? Which salary can be profitable enough for both parties?

• Volumes and centralisation of collection compatible with actual transport system?

9Title

For 1L of Milk Herdsmen Milk vendor“Abashundas”

Selling price 250 300Margin 250 50% final price 83.3 16.6

PROPORTION OF CATTLE OWNERSWho will benefit? What is the target?

10Title

  Buliisa Nebbi NwoyaHouseholds interviewed 466 378 388

Inclusiveness of Milk value chain

11Title

• How to include poor, women and youth in milk value chain

development?• Pro-poor development:

Include small scale livestock keepers collecting small quantities Mediation and dialogue for:

Avoiding to evict actors (herdsmen, Abashundas) Increasing on shares and professionalization of these service providers

• Job creation Balance cooperative management and job creation: business and profit

orientation• Women: developing processing activities

Added value creation via processing of milk: Yoghurt Marketing development for local milk products: ghee and bongo Outlet points and demand creation in trading centers and in other markets

Land use planning

• Improvement of breeds and productivity of the cattle for reducing on the size of the herds without reducing the income

• Watering system for the cow, water collection points for improving the productivity and reducing on the pressure on river banks

• Organizing space for vegetable production along the Nile and near the homesteads: regulation and protection of the garden

12Title

• …

SUGGESTED WAY FORWARD

Business opportunities

VALUE CHAIN ANALYSISCASSAVA VALUE CHAIN

Cassava and farming systems strategies

16Title

• Major and flexible food security crop (relatively drought resistant, stored in the garden)

• Grown by almost all the farming systems partly for food but also for income

FRESH CASSAVA / DRIED CASSAVA: Two main value chains

Constraints for productivity enhancement

Actual situation• Planting material: introduction and

supply of improved varieties limited, farmers are mostly exchanging stems among themselves

• Fertility management: cassava=heavy feeder Fallows and Rotation: requires

availability of secured/owned land; hardly practiced by small holders and tenants

Intercropping with black eyed peas

• Weed control: Related to fertility management Labor intensive and impacting

productivity

Opportunities• Supply in planting material• Innovation in terms of intercropping and

legumes: black eyes peas and other varieties• Manure-compost value chain development

and introduction of organic fertilizers• Research and innovation regarding weeds

control• Use of oxen for ploughing and weeding

Improving quality and post harvest handling

Constraints • The reliance on sun-drying for

processing of chips creates serious scale and quality issues.

• Processing is Labor intensive• No stationed mechanics

Opportunities• Sensitization about standards and

quality management• Introduction of solar drying

technology• Creation of local processing

plants including drying facilities and cassava grater

• Vocational training for local mechanics

19Title

Improved drying techniques• Raised Platforms- Process hygiene greatly improved• Solar drying- faster drying, contamination controlled (no direct

exposure to the air)

SUGGESTED WAY FORWARD

• Processing equipment: Cassava grater

SUGGESTED WAY FORWARD

Marketing and market opportunities

• Marketing Bulking-coordination Market information

• Unexploited market opportunities: High quality cassava flour (HQCF):

Partial wheat substitute in (pies, pastries, cakes, biscuits, and doughnuts)

Use in livestock feed rations; Energy drinks

• Transport challenges- transport bottlenecks and repeated transactions are very costly given fresh cassava is highly perishable. The bulkiness and low value of fresh cassava can cause transportation costs to be a large share of the final price.

• Storage methods- Although cassava roots survive well underground, this method of storage requires land to remain unproductive. Food security notwithstanding, improved varieties may not survive for long underground.

Specificity of FRESH cassava value chain

BUSINESS OPPORTUNITIES

HONEY VALUE CHAIN IN BULIISA DISTRICT

Honey Value Chain

26Title

Relationship between the Key actors

27Title

Competing for same suppliers

Little cooperation

Results

• Farmer groups impacted negatively (Suspicion)• Probably see one player thriving . Will prices still remain high??• Adversarial relationship

28Title

Opportunities

• Cooperation for greater efficiency• Co investment in equipment• Extension services as a business• Transport services• Pollination services

29Title

VEGETABLE VALUE CHAIN IN BULIISA DISTRICT

Production

Importance of Vegetable value Chain in Buliisa

Constraints

• Poor equipment used for application of agrochemicals e.g. brooms, watering cans

• Absence of agro input shops in Buliisa district.(Masindi, Hoima, Arua)

• Uncertainties around vegetable farming in grazing zones• Inadequate or non existent advisory services.

Opportunities

• Vegetable production areas be demarcated within grazing areas• Use of compost to increase productivity of the land• Simple irrigation systems to sustain production• Use of draught animals technology for transportation

Importance of coordination and planning

35Title

GENERAL CONCERN

• Infrastructures and basic needs have to be provided as a priority to enhance the productivity in the area Roads Power Water Health services

• Loan systems and business incubation centres for SME, including youth and women

36Title

BUSINESS OPPORTUNITIESWay forward

37Title

Skilful-creative mechanic and artisans

Input shops

39Title

SPARE PARTS

ANIMAL DRUGS

AGRO INPUTS

NETWORKING;

MARKETING;

ADVISORY SERVICES

POST HARVEST MANAGEMENT

& RURAL INDUSTRIES

40Title

Intensification of livestock production NEW VALUE CHAINS NEW SERVICES• Reduce on pressure over farming land; reduce number of

heads: increase income/head

Community Content Platform: Catalyst for local economy

42Title

Platform concept: connection and coordination

43Title

Logistic platform- for a sustainable supply system

44Title

Alternative Supply system

THANK YOU

45Title