PROPOSED LAKE KACHIRA LOWLAND RICE PLANTATION PROJECT
1.0 PROJECT PROFILE
1.1 Project Overview
The SKY & LAKES LOWLAND RICE PLANTATION PROJECT proposes to
establish a large scale mechanized commercial farm in Lyantonde
District. The land being proposed for this project is a 200 acre
(80.97 hectare) of uninhabited, fertile wetland bordering on
Kiruhura District and Lyantonde District in South Western Uganda
and ideally suited to rice growing. It is proposed that rice shall
be grown, harvested, cleaned, milled, polished, graded, branded,
packed and marketed. Farming infrastructure, machinery, processing
plant and support facilities will therefore have to be procured and
set up to go into production.
Sky & Lakes was established to; Set up an agricultural
commercial rice scheme with a processing factory. Produce and
profitably sell quality rice at competitive prices.The company will
grow rice on a commercial scale, mill and package it for both the
domestic and export market. When fully operational, the SKY &
LAKES LOWLAND RICE PLANTATION PROJECT shall be one of the biggest
producers of rice in South Western Uganda.
1.2 Goal
Self sufficiency in rice production and complete substitution of
imported rice by year 2015
Specific Objectives:
1. Contribute towards the development of a vibrant rice value
chain that will attract investments for locally produced rice.2.
Contribute towards raising the rice production level from current
250,000 MT to 350,000 MT per year to remove the shortfall between
demand and production by year 2015.3. Raise the quality of locally
produced rice to international standards.4. Build a network of
paddy producers around rice mills to ensure regular supply of
paddy.
Justification
Rice has become a priority crop in Ugandan Government strategies
because of its potential to curb food insecurity and poverty. The
Ugandan Government strategies emphasize rice as an emerging
priority crop because of its potential to help reduce hunger and
poverty. Of all the stable food crops, rice represents the
country's best opportunity to significantly reduce imports. It also
has the potential to create employment through production and
processing.
Currently the total demand stands at 350,000 metric tonnes per
year of milled rice-against the 250,000 tons produced thus leaving
100,000 metric tons deficit. On a daily basis the country is only
able to produces 30 tonnes of Paddy (Not Milled) Rice and 20 tonnes
of milled rice (Processed). Projections from the Uganda Upland Rice
Millers shows that consumption is expected to increase to over
450,000 metric tonnes in the next five years. Currently Uganda
imports rice worth $10m from Asia and another parchment from
Tanzania worth $15m. The total population of Uganda is 35.873
million with annual growth rate of 3.2% (UBOS estimates) indicating
that rice consumption is likely to increase.
The worlds rice market is highly volatile. In order to fill this
demand-supply deficit-Uganda imports rice brands from India,
Pakistan, China, Kenya and Tanzania among other countries. Rice
grows all across Uganda; hence self sufficiency is highly
possible.
1.3 Strategy
1. Utilize the proposed 200-acre wetland as a cluster for
lowland and irrigated lowland rice ecologies in Lyantonde
District.2. Use the proposed SKY & LAKES LOWLAND RICE
PLANTATION PROJECT as a nucleus enterprise to organize the small
holder farmers in Lyantonde District into cluster groups to
aggregate them for access to improved technology seeds and other
inputs- as well as market. This aggregation is a step towards
reduction in production and transaction costs.3. Increase in paddy
production will be anchored on yield improvement per unit area
(intensification) raising average yield per hectare from 1.5 MT to
7.14MT per hectare.4. Link the out grower rice farmers (paddy
producer network) in Lyantonde District clustering around the
project to credit sources and to the benefits derivable from
activities of NAADS in the acquisition of farm equipment and
machinery.
1.4 Expected Output
1. A viable rice value chain capable of meeting the countrys
rice demand put in place.2. Conservation of foreign exchange
earnings resulting from elimination of rice imports.3.
Diversification of the local Lyantonde District economy.4. Food
security resulting from doubling of rice production from 3 MT/ha to
7.14 MT /ha.5. Income growth and poverty reduction for rice
farmers.6. Generation of additional 5,000 jobs in the rural
area.
2.0 BACKGROUND INFORMATION
2.1 Ugandas Rice Sector
Rice production in Uganda started in 1942 mainly to feed the
World War II soldiers, however due to a number of constraints,
production remained minimal until 1974 when farmers appealed to the
then government for assistance. In response, government identified
the Doho swamps and constructed the Doho Rice Irrigation Scheme
(DRS) with the help of Chinese experts.
Figure 1; Production of Milled Rice in Uganda (2000 2010)
Today rice is grown mainly by small scale farmers almost
throughout the country, but also with large scale farmers in few
places. Total production is estimated at 250,000 metric tons of
milled rice. Total rice consumption is estimated at 350,000 metric
tons of milled rice. Population growth rate is 3.2% thus the demand
for rice is expected to rise. Uganda adopted NERICA 1, 4 and 10
varieties in addition to the old lowland varieties. Since the
introduction of upland rice in 2002, rice farming has grown from
4,000 farmers to over 35,000. From the earlier releases of three
upland rice varieties in Uganda in 2002 courtesy of the Rockfeller
support farmers were able to reap $9 million (14.9 billion) in
2005. In the process, the country has seen rice imports drop
between 2005 and 2008. This trend of events according to the
National Agricultural Research Organization (NARO) saved the
country about $30 million (Ug. Shs. 75 billion) in foreign exchange
earnings. Most rice in Uganda is grown in Eastern Uganda followed
by Western Uganda due to the presence of lowland with high moisture
content throughout the growing season. Government of Uganda intends
to increase rice production to cater for the ever increasing
demand.
2.2 Status of Rice in National Policies
Agriculture is the main stay of Ugandas economy, contributing
42% of GDP, over 85% of export earnings, and providing employment
for over 80% of the population, 90% of them live in the rural areas
(Anon, 2004). Food crop production is predominant in the sector,
contributing approximately 50% of agricultural GDP in 2012/13,
while cash crops, livestock, fisheries and forestry provided 17,
16, 12 and 14 % respectively. The bulk of agricultural output comes
from about 4.5 million small-scale subsistence households, 80% of
whom, in average, each owns about 2ha of land and produces a number
of different food and cash crops besides herding some livestock
(UBOS, 2004).
Agricultural production is also still predominantly rain-fed,
non-market oriented, and based on rudimentary technologies and
environmentally unsound practices. Resultantly, the countrys
agricultural products are often of low volumes, poor quality and
are costly to assemble for sustainable market supply. In addition,
the farmers are not organized in accessing inputs and marketing
their produce efficiently, thereby incurring high production and
marketing costs that affect the profitability of their
enterprises.
Since agricultural sector embraces such a large proportion of
the countrys population, the Government of Uganda (GoU) recognized
the role of the sector in poverty eradication and is therefore
implementing a Poverty Eradication Action Plan (PEAP), as the key
national development agenda for a few decades to come (MFPED,
2000). The poverty focus envisages modern farming as the lead
strategy to enable the poor raise their incomes and improve
livelihoods. In order to meet this challenge, the Government has
developed the Plan for the Modernisation of Agriculture (PMA) as a
strategic framework within PEAP that provides for the
transformation of the predominantly subsistence agriculture into a
market-oriented sector of the national economy (MAAIF and MFPED,
2000). The strategy is designed to create an environment for
promoting investments in profitable arable agriculture, livestock
farming, and utilization of fisheries, forestry and other natural
resources, while generating gainful employment in all sectors of
the economy.
The Ministry of Agriculture Animal Industry and Fisheries also
recently demarcated the country into Agricultural Zones, each with
specific production features that differ from the other. The
intention, through this arrangement, is for each zone to undertake
a set of agricultural enterprises where it has the best comparative
advantage, and thus cause rapid economic growth and reduce
household poverty. Analysis of the ranking of enterprises by zones,
as conducted by NAADS (NAADS, 2004), shows that rice growing as an
enterprise now ranks high in many of these zones.
2.3 Consumer Preferences
Consumers prefer aromatic to non-aromatic rice, sticky to
non-sticky, unbroken to broken and bulging after cooking to rice
that does not bulge, white milled rice to brown.
2.4 Typology and Number of Rice Farmers, Processors and
Traders
About 80% of rice farmers in Uganda are small scale farmers with
acreage of less than 2 hectares using simple technologies including
use of rudimentary tools, little or no fertilizer use, poor quality
seed, with little or no irrigation and poor water management
practices among others.
About 15 % Medium scale farmers with acreage of 2 6hectares
producing rice most of which using practices similar to small scale
farmers and a few using non-motorized tools such as line markers.
The major difference between medium and small scale is the
acreage.
About 5% rice farmers are large scale with land under
cultivation over 6 hectares. Among the large scale farmers are rice
schemes with acreage of over 1,000 hectares.
Currently there are 591 operational rice mills. The rudimentary
poor performing engelbergs account for 77.5%, milltops constitute
20.8% and medium to large scale are 1.7%. The small rice milling
cottage factories using engelbergs and milltops mill 95% of the
paddy produced in the country significantly contributing to
persistent low quality and market value which is non- competition
in the current liberated market economy.
Trading of rice in Uganda is completely under the private
sector. Most of the trading is done by middle men who buy threshed
rice from the farmers at the farm. The price of rice varies from
place to place between UShs. 1,500/= per kg to UShs. 2,500/= per kg
of locally produced rice. This rice is usually packed in 50 and
100kg bags. Some medium and large scale processors however process,
package and brand their rice thereby fetching higher market prices
ranging from UShs. 2,500/= to UShs 7,500/= per Kg.
2.5 Comparative Advantage of Domestic Rice Production
Meanwhile rice, grown as both food and cash crop, has risen to
second rank to maize after overtaking millet and sorghum.Local
paddy production has risen from 190,000 metric tonnes (not milled)
in 2007 to 350,000 metric tonnes (not milled) in 2012. The
production motivated by economic objectives, is in line with the
plan for modernization of Agriculture, a policy framework for
eradicating poverty in the country.
The situation now demands large commercial scale millers as
automation in processing cereal foods is necessary for overall
safety and efficiency.
Domestic rice production is increasing and local and regional
demand is also increasing. The current demand for rice in Uganda is
over 350,000metric tonnes (MT) of milled rice which only 250,000
metric tonnes (MT) of milled rice are locally produced creating a
deficit of 100,000MT.
East African (Rwanda, Kenya, Tanzania, Uganda and Burundi)
consumption is 2 million metric tonnes with imports of 550,000
metric tonnes of rice per year. Rice production would therefore
provide an import substitution of about $120 million worth of rice
every year to Uganda if it can double its production. This covers
for only 15% of rice imports in East Africa.
3.0 OBJECTIVES OF PROPOSED PROJECT
3.1 Objectives
The main objectives and purpose for the project is
multi-pronged, it aims at;
a) To establish a good commercial venture to with a good return
on investment in a short period.b) Enhance food security.c)
Improving livelihood development of the local community through
creation of employment opportunities.d) Improvement of farmers
general knowledge and skills in agriculture and sustainable
utilization of natural resources for environmental promotion and
increased production.e) Increasing land productivity through
promoting and encouraging farmers to adapt and adopt sustainable
agricultural practices by making use of organic farming and
irrigation technologies and mechanized agriculture.
3.2 Advantages of Growing Lowland Paddy Rice (NERICA 1, 4 &
10 varieties)
Short germination and maturity period i.e. only 30 50 days from
planting to harvest. Higher yields (by 50% without fertilizer and
by more than 200% with fertilizer). Resistance to local stresses.
Contains more than 24% of protein contents. Not labour intensive.
Savory taste and enticing aroma. No complication in cooking and
take short cooking time which result in time and firewood saving,
and gender sensitive as they give time to women to cater for other
family chores. Excellent milling and marketability assuring farmers
big benefits. The crop has been used by millions of farmers in
Uganda to improve their livelihoods such as increasing food
security, nutrition and household income. Lowland rice has been
distinguished as a solution to both poverty and hunger. It has
diverse characteristics that lead into profitable yields.
Production cost is modest comparing to other types of this crop
(total input per acre US$ 200 v/v output US$ 1,500) (Source APEP,
Uganda). High yield production (i.e. planting 30 Kg in one acre can
produce between 2,500-3,000 Kgs), short period labour
intensiveness. Any farmer can adapt and adopt the technology
regardless of agricultural knowledge limitations, academic
background, age or sex. It is always a one day training. Market is
available locally and overseas. It is an employment creation
activity.
4.0 PROJECT PROPOSAL
This project is designed to exploit all the available potentials
to enable Lyantonde District in particular and Uganda in general
attain self-sufficiency in rice and become a rice exporting nation
a few years hence. This means expansion into the high potential
areas, especially the lowland valley bottoms and alluvial lowland
along major river basins and elaborate investment in irrigation
infrastructure, particularly low-cost, small-scale diversion
schemes in lowland valleys. Enhancement of productivity through
intense use of agricultural inputs, technology and use of an
on-farm rice-milling facility will be the approach.
4.1 Aim of the Project
The aim of the project is to attain self-sufficiency in local
rice production by 2014.
4.2 Keys to Success
Our keys to success lie in the strength of our R&D (Research
& Development) department. Profitability and sustenance of
large scale commercial farming is underpinned by research into new
varieties of seeds that have high yields, low maturity periods and
are capable of resisting crop diseases, droughts while maintaining
good taste, flavour and aroma. Sky & Lakes will invest heavily
in research and development using skilled and experienced seed
breeders and crop scientists.
In addition, our keys to success will also include the
following:
We intend to produce a final product of uncompromised quality so
as to meet the needs and standards of our customers. Set an
effective and efficient distribution network. This will ensure
nationwide coverage and enable us respond rapidly to customer
orders. We will install the latest modern rice processing
technology at our factory. Keeping abreast with technology will
ensure quality product, less post-harvest losses and higher
returns. Foster loyalty and dedication amongst our staff by
motivation and instituting welfare schemes. Rice production is a
delicate business which demands total commitment of all employees.
We realize that corporate commitment to success should lead to the
survival and prosperity of our products and ultimately the whole
company as a whole. Marketing know-how: in an increasingly
competitive market, there is need to aggressively market our
products so as to be continuously at the top of our prospective and
current customers minds. Stringent financial values and principles:
we acknowledge the fact the financial and strategic management of
the company will ultimately determine its prosperity and success.
Hence we intend to adhere to stringent values and principles that
will enable our objectives to be achieved.
4.3 Land and Ownership
To set up the commercial rice scheme, Sky & Lakes proposes
to convert the 200 acres (80.97 hectares) wetland that marks the
borderline between Lyantonde and Kiruhura Districts in South
Western Uganda for the purpose of paddy rice growing and
processing. This piece of wetland land is located at Biwolobo
Parish, Lyantonde Sub County, Lyantonde District in South Western
Uganda and is approximately 7 miles south of Lyantonde Town Council
and lies just north of Lake Kachira which extends further south to
Rakai and Isingiro Districts. SKY & LAKES LOWLAND RICE
PLANTATION PROJECT proposes to lease this piece of wetland from the
Lyantonde District Land Board through an appropriate and mutually
agreed upon lease-term between the lessor and the lessee parties
privy to the contract.
4.4 Suitability of Land and Advantages
At 200 acres (80.97 hectares), it is large enough to accommodate
a modern medium-scale commercial rice farm, rice processing mill,
silos and support infrastructure. The climate; weather and
temperatures are ideal for rice cultivation. Soil tests have been
carried out and found to be suitable for rice growing. Plenty of
water to allow irrigation. Land is flat with few trees. No
squatters. land is uninhabited (dormant land). The project is
environmentally sustainable. Close proximity to Northern Tanzania
and Rwanda makes access to one of the target markets of East Africa
easier. Ugandas regional positioning and political stability has
turned into a trade hub allowing businesses to easily access
markets in the neighbouring countries of Congo, Kenya, S. Sudan,
Tanzania, Rwanda and Burundi.
4.5 Major Demographic, Economic, Social and Cultural Factors
Increased rice production fits well into the overall social and
economic trends. As the world population increases, the demand for
food has equally increased making food security a paramount concern
of governments and policy makers world-wide. In the first half of
this century, the global demand for food, feed and fiber is
expected to grow by 70%.
Uganda has not been spared the boom in population. The
population has increased from 12,000,000 in 1980 to 34,400,000 in
2012. It is projected to continue increasing at a rate of 3.5 % per
annum.
There is a need to feed this growing population. Rice has
increasingly become the solution to food security. It is now the
worlds staple food. In Uganda, it is one of the most widely
consumed foods. Initially a preserve of the wealthy, increased
household incomes have brought it within reach of most households.
Total consumption in Uganda is estimated at 350,000 metric tons
while production is estimated at 250,000 tonnes leaving a shortfall
of 100,000 tones. It is estimated that approximately 75% of the
rice produced in Uganda is consumed in the domestic market and the
rest is exported to the neighbouring East African countries.
However, while Uganda is turning into a regional supplier of
rice, the country still imports rice from Pakistan, India and
Vietnam. The demand for rice in Uganda and East Africa is high and
is projected to grow higher. Sky & Lakes venture into the rice
market is therefore apt and timely.
4.6 Government Intervention
Cognizant of the suitability of the Ugandan climate, the fertile
soils and the availability of lowland for rice growing vis--vis the
enormous potential of rice growing as a commercial venture coupled
with its envisaged role in creating employment, raising household
incomes and earning foreign exchange, the government of Uganda
sought to promote rice growing by formulating suitable
policies.
The Uganda National Rice Development Strategy (NRDS) 2009 was
formulated to boost rice growing. No taxation on agricultural
produce. No taxation on tractors, tillers, combine harvesters and
other agricultural inputs. 75% tax duty on imported rice. The
government of Uganda through the Ministry of Agriculture sought
partnership with Japanese International Development Cooperation
(JICA) to establish NaCCRI (a technical agriculture support
institution). It offers technical support to farmers on high yield
seeds, optimum land use, water management and researches on farm
inputs and avails the information. Has made grants available for
irrigation schemes. Because of the abundance of food in Uganda,
state involvement in the distribution of rice as is the case in
many countries is non-existent.
4.7 Market Analysis
The East African regional market comprising of Uganda, Kenya,
Tanzania, Rwanda, Burundi, South Sudan, Ethiopia, Somalia and
Madagascar for white milled rice stands at 3.1 million tons. Of the
above countries only Madagascar has attained near self-sufficiency
in rice production. The rest of the countries have to rely on
imports to meet their domestic demands. The market for rice in
Uganda is 350,000 metric tons (Uganda Bureau of Statistics 2012),
Kenyas is 460,000 metric tons. According to the Uganda Revenue
Authority, Uganda spends 60,000,000 US dollarson imported rice to
meet the shortfall in supply of rice while Kenya spends US
250,000,000 US dollars on imports of rice.
While Uganda imports rice to cater for the shortfall in
production, it also exports some of its locally produced rice to
the neighboring countries of Kenya, South Sudan, Rwanda, Burundi
and eastern Democratic Republic of the Congo. This is largely due
abundance of foods in Uganda and the lack of restrictions on
exports of food.
4.8 Market Segment in Uganda
SKY & LAKES LOWLAND RICE PLANTATION PROJECTwill target; Mid
to high end consumers of rice. International food aid organizations
e.g. FAO/WFP. Schools and institutions. Army and Police Forces.
4.9 Market Segment outside Uganda
13
Kenya South Sudan Eastern Congo Rwanda Burundi
5.0 ABOUT SKY & LAKES THE PROJECT IMPLEMENTING AGENT
(PIA)
5.1 The Project Promoters of the Project
The Project Promoters of the Project
1. LocalInvestment Company Sky & Lakes2. Lyantonde District
(Local Government District in Uganda)
The project proposes to develop a sustainable Commercial
Agricultural, Economic and Business Community and development of
trade, industrial, managerial, technical and skills capacity in
Lyantonde District.
The project will enhance local investment opportunities and
Ugandas trade capacity, whilst ensuring business opportunities for
local investors and contribute to food security for Uganda and
other countries. The project when completed will earn Uganda
foreign currency through export of farm produce.
5.2 Who We Are
Sky & Lakes, an agricultural investment lead company working
to secure some of the best land in Uganda, and develop it for
commercial farming.
We are committed to contribute to the worlds food security and
social stability, through regional economic and agricultural
development in partnership with, community, private companies and
public sector.
Our business models and project types are designed in such way
that it is affordable for a small farmer and suitable for large
scale commercial farming.
5.3 Sky & Lakes Vision
Our vision is to be the leading technologically modern
commercial rice scheme producing quality rice in Uganda and the
East African market.
5.4 Sky & Lakes Mission Statement
To produce quality rice at competitive prices.
6.0 PRODUCTS
The SKY & LAKES LOWLAND RICE PLANTATION PROJECT
Products:
Sky & Lakes shall specialize in three types of rice
varieties;
Super rice (an indigenous African long grain white rice with a
nice aroma). NERICA 4 and 10 (a variant of African long grain and
quick growing Asian rice). Basmati rice. Tests have been carried
out that indicate that Basmati rice thrives well in wetland areas
of South Western Uganda.
The SKY & LAKES LOWLAND RICE PLANTATION PROJECT will develop
its brand and market its rice in Uganda and internationally under
its brand. The SKY & LAKES LOWLAND RICE PLANTATION PROJECT will
produce and market white milled rice. The rice shall be of quality
texture, tantalizing flavor and aroma. The rice shall be packed in
easy to carry, attractive paper bags of 1,2,5 and 10 kgs for the
retailer trade and in 50 to 100kg jute bags for bulk purchasers and
wholesalers.
There shall be three different categories of Sky & Lakes
rice;
1. Sky & Lakes classic2. Sky & Lakes super3. Sky &
Lakes Basmati
Some by-products from rice production and milling have found
some commercial applications;
1. Rice straw: The straw contains fiber, carbohydrate, protein
and traces of vitamins. It can be used as livestock feed,
fertilizer, mushroom production, fuel for cooking, pulp and paper
and as raw material for production of alcohol.2. Rice hull and
husks: Constitute 20% of the grain weight and can be used as a
component of livestock feed, processed as fibre board or used as
fuel/energy source.3. The rice bran: It consists of 12 16% protein,
16 20% fat, 8 12% fibre and 7 10%ash. It can be processed into
lubricating oil.
7.0 PROJECT IMPLEMENTATION STRATEGY
The proposed SKY & LAKES LOWLAND RICE PLANTATION PROJECT
aims at utilizing a sizeable wetland area that constitutes the
borderline between the districts of Kiruhura and Lyantonde and very
close to Lake Kachira in South Western Uganda. This wetland which
measures an approximately 200 acres (80.97 ha.) in size is not
perceived as a major environmental or biodiversity conservation
resource by the leading environmental protection and biodiversity
conservation authorities in Uganda at the moment and given its vast
size and proximity to one of the major trunk roads in Uganda (i.e.
being located only 7 kms from Lyantonde Town on the Masaka Mbarara
highway) offers an excellent agricultural production opportunity
for lowland paddy rice cultivation that is well suited to such
wetland environments.
The primary motivation of the lead project promoter Mr. Ambrose
Mutafungwa in making this proposal to the Lyantonde District Land
Board is borne out by the fact that rice production is now one of
the major interventions identified in the Ministry of Agriculture
Animal Industry and Fisheries (MAAIF) Development Strategy and
Investment Plan (DSIP) 2009/10 2013/14 for food security and
poverty reduction in Uganda. By turning this patch of wetland into
a long-term sustainable agricultural production area through the
introduction of high-yielding lowland rice varieties, the SKY &
LAKES LOWLAND RICE PLANTATION PROJECT will also be able to spin out
a range of multiple benefits and positive impacts to the local
economy, the local farming community, and most significantly make a
telling contribution towards land utilization and productivity that
will greatly boost food security in the area and generate
substantial revenues for Lyantonde District as whole.
The project promoter intends to do this project as a large scale
lowland rice production enterprise that will be complete with its
own on-site rice mill for milling the rice immediately after
harvest and make it ready for market sale thus reducing transaction
costs and the time lag involved in outsourcing the milling service
to outside rice millers. By producing the rice and milling it
on-farm, the SKY & LAKES LOWLAND RICE PLANTATION PROJECT will
serve as a positive change agent by building a network of paddy
producers (out growers) around the rice mill to ensure the regular
supply of paddy elevating the status of Lyantonde District in the
process into one of the major paddy rice producing districts of
Uganda; and developing a vibrant rice value chain within the
district that will attract investments for locally-produced rice.
The project would thus be able to produce over 600 Metric Tons of
paddy rice per season (or 1,200 Metric Tons of paddy rice per
annum) using the high-yielding variety of rice seed from the
wetland area of 200 acres (80.97 ha) which at a farm gate price of
UShs. 1,000/= per kilo would fetch about UShs. 1.2 billion per
annum. Assuming that the project induces the uptake of paddy rice
production by a paddy producer network producing from an outlying
area 10 times the size of this wetland, this would yield an
additional 12,000 Metric Tons of paddy rice that would generate a
hefty UShs. 12 billion for these small holder rice farmers within
the district which would be a substantial income by all accounts
for the rural small holder rice farmers in Lyantonde District.
8.0 FARM POWER REQUIREMENTS
The provision of adequate farm power is central to increasing
rice production to reduce drudgery and ensure timely field
operations at the proposed paddy rice production farm.
Table 1 shows the necessary farm production and processing
equipment that will be stocked and used by the proposed SKY &
LAKES LOWLAND RICE PLANTATION PROJECT.
Table 1: Farm Production and Processing Equipment for the Rice
Production ProjectEQUIPMENT DESCRIPTIONNO. OF UNITS
1. LAND PREPARATION:
i. Tractor with implements (Plough, Harrow)1
ii. Power Tiller (12 HP) with rotavator & accessories4
2. PLANTING:
iii. Seed Drills5
iv. Rice Transplanters5
3. CROP PROTECTION
v. Knapsack Sprayers (16 Ltr Matabi Type)20
vi. Tractor Mounted Boom Sprayers5
4. HARVESTING:
vii. Rice Reapers (0.5 tonne/hour)5
viii. Thresher (0.75 tonne/batch)5
ix. Combine Harvesters (1 tonne per hour)2
5. PROCESSING:
x. Parboiler3
xi. Dryer2
xii. Energy-Saving Mechanical Dryer2
xiii. Probe Moisture Tester4
xiv. Rice Mill 1,000 tonne/year1
xv. Destoner2
xvi. Full Automatic Packaging equipment (Bag, sewing and hot
sealing machines2
9.0 PROJECT BENEFITS & IMPACT
Benefits of the project
It will improve on food security in Uganda. Creation of
employment opportunities in Lyantonde District. Increase Ugandas
foreign exchange inflows. Poverty reduction through import
substitution. Conservation of scarce foreign exchange is achieved
and this is ploughed back into other sectors of Ugandas
socio-economic sectors. Attract further investment from local and
international investors. Infrastructural development in the
district. Opening up of South Western Uganda to even bigger cross
border business opportunities through exports of produce. Better
standards of living for the local people. Increased revenue to the
district. To strengthen the capacity of the District to be able to
realize wholesome growth as well as tackle key challenges now and
in future that will affect its operations. Reduction in rural-urban
migration as more people get engaged in rice farming, input supply
and processing of rice within Lyantonde District as a rural
district. Life in the rural area of Lyantonde District will become
more meaningful as will it will compare with the comforts of large
towns and urban cities in Uganda.
All these benefits are in perfect agreement with the VISION 2040
PLAN for national socio-economic transformation.
Community Benefits:
Sky & Lakes will contribute to the development of physical
infrastructure, education and health facilities in Lyantonde
District as part of its corporate social responsibility. It shall
promote the well-being of the local population by making facilities
available to the public within the project locality. Socially, the
project shall have a positive impact in the following areas;
Quality of the health facilities. Increase in household incomes.
Empowering the local population by bringing services nearer to
them. Better infrastructure. Increased urbanization. Improve the
quality of education.10.0 EXPECTED IMPACT
1. A viable rice value chain capable of meeting the countrys
rice demand put in place. Conservation of foreign exchange earnings
resulting from elimination of rice imports.2. Diversification of
the domestic economy.3. Food security resulting from more than
doubling of rice production from 3 MT/ha to 7.14 MT /ha.4.
Generation of additional 5,000 jobs within the rural area of
Lyantonde District alone.
11.0 SUMMARY PROJECT COSTS
Table 2: Project Farm Infrastructure CostsINVESTMENT COST
ITEMCOST AMOUNT (UGX)
Project Farm Building Infrastructure320,000,000
Rice Mill Civil Construction160,000,000
Project Farm Roads80,000,000
Sub-Total560,000,000
Table 3: Project Farm Equipment CostsEQUIPMENT COST ITEMNO. Of
UNITSUNIT PRICE (UG SHS)TOTAL AMOUNT (UGX)
1. LAND PREPARATION:
i. Tractor with implements (Plough,
Harrow)1132,000,000132,000,000
ii. Power Tiller (12 HP) with rotavator &
accessories410,000,00040,000,000
2. PLANTING:
iii. Seed Drills54,000,00020,000,000
iv. Rice Transplanters55,300,00026,500,000
3. CROP PROTECTION
v. Knapsack Sprayers (16 Ltr Matabi Type)20125,0002,500,000
vi. Tractor Mounted Boom Sprayers55,300,00026,500,000
4. HARVESTING:
vii. Rice Reapers (0.5 tonne/hour)54,000,00020,000,000
viii. Thresher (0.75 tonne/batch)52,100,00010,500,000
ix. Combine Harvesters (1 tonne per
hour)211,850,00023,700,000
5. PROCESSING:
x. Parboiler310,530,00031,590,000
xi. Dryer2 sets80,000,000160,000,000
xii. Energy-Saving Mechanical Dryer280,000,000160,000,000
xiii. Probe Moisture Tester4260,0001,040,000
xiv. Rice Mill 1,000 tonne/year1105,300,000105,300,000
xv. Destoner2 sets7,900,00015,800,000
xvi. Full Automatic Packaging equipment (Bag, sewing and hot
sealing machines221,000,00042,000,000
Sub-Total68817,430,000
Table 4: Project Farm Operating ExpensesOPERATING COST
CENTRECOST PER ACRE (UGX) TOTAL AMOUNT FOR 200 ACRES (UGX)
Slashing85,00017,000,000
Ploughing (x2)200,00040,000,000
Seeds (25 kgs of required seed per acre @ UGX 1,000/= per
kg)25,0005,000,000
Making furrows60,00012,000,000
Planting40,0008,000,000
Harvest200,00040,000,000
Weeding (x2)120,00024,000,000
Milling (UGX 50/= x 3,000 kg/Acre)150,00030,000,000
Packaging (UGX 1,000/= x 30 Polythene
bags/Acre)30,0006,000,000
Sub-Total182,000,000
Table 5: Project Farm Summary CostsPROJECT INVESTMENT ITEMCOST
AMOUNT (UGX)
Project Farm Infrastructure560,000,000
Project Farm Equipment817,430,000
Project Farm Operating Expenses182,000,000
Sub-Total1,559,430,000
12.0 CONTACTS
Contact Person:
Mr. Ambrose Mutafungwa, Executive Director,Sky & Lakes,Plot
59 Martin Road,P.O. Box 828, Kampala.Tel: 0312 284 637/0777 912
297Fax: 0312 284 637Email: [email protected] Mobile: 0772
444340/0702 344 340