POULTRY IN EAST AFRICA EVENT DUTCH POULTRY MUSEUM, BARNEVELD JUNE 21, 2017

Transcription

1 POULTRY IN EAST AFRICA EVENT DUTCH POULTRY MUSEUM, BARNEVELD JUNE 21, 2017

2 13:30 13:40 Welcome by DPC, VIV worldwide and NABC by Ruwan Berculo 13:40 14:00 Presentation by the Ambassador of Rwanda H.E. Mr Karabaranga 14: Presentation by the Ambassador of Uganda H.E. Mrs Blaak Sow 14:20 14:40 Poultry Africa 2017 expo and leadership conference by Ruwan Berculo Poultry Trade Mission to Uganda and Rwanda by Paul van de Ven 14:40 15:00 Break 15:00 15:20 Study by WUR & NABC on behalf of FKBP: Poultry in East-Africa by Adriaan Vernooij 15:20 16:00 Business cases: Best Farmers Uganda 16:00 16:15 Q & A and closure

3 Investment Opportunities in Uganda Poultry Sector Mission Uganda-Rwanda PRESENTATION BY : Ambassador Of Uganda HE Mirjam Blaak Sow /22/2017

4 6/22/2017 Outline of the presentation Uganda s Strategic Location in the Region Investment Climate Factors UIA Services One-Stop-Centre Investment Opportunities in Uganda Incentive regime & what investors need Investment Guarantees/Agreements signed Top Sources of FDI in Uganda for 5 years Conclusion 4

5 Uganda The Pearl of Africa Along the Equator Time: + 3 hrs GMT (East African time) Climate: Modified Equatorial climate Largest fresh water lake:- Lake Victoria Source of the Nile: the only river that flows North Snow Capped Mountains 56/22/2017 Official Language: English

6 Key Highlights Geographical & Demographical Population: 39 million (2014 est.) World Population Rank: 34 Population Growth Rate: 3.3% Rural Population: 86.5% Location Urban Population: 13.5% Female; 7,04 Sex distribution in labor force (millions, 2012 est.) Male; 7,27 Proportion engaged in agriculture 6/22/ % 80.7%

7 Uganda s Economy Population: 35 million people GDP: $27 billion at a growth projected rate of 5.4% annually Inflation rate: 4.1% (Oct. 2016) FDI inflows: $1,147 million Uganda is Land linked. Key Uganda 76/22/2017

8 Market Size and Access Size Population: 35 million East Africa + south Sudan =160 million Great Lakes= 300 million Comesa= 400 million Access Duty and quota free access to China for 650 products USA- AGOA EU- Everything but Arms WTO- General agreement on Trade in Services (GATS) WTO- Trade related Investment Measures (TRIMS) 86/22/2017

9 6/22/2017 Investment Climate - Predictable economic environment - Fully liberalized economy - Competitive market access - Good Governance - Trainable labor force - Excellent weather Climate and conditions. - Strong natural resource base Friendly population - Government commitment to private sector -Security of investment 9

10 6/22/2017 Services offered by Uganda Investment Authority (UIA) Provides Information on investment opportunities Issues Investment Licenses Assists in Securing Secondary Approvals Assists in Finding Joint Venture Partners UIA s One- Stop Centre (URSB, URA, NEMA, Immigration, Min of Lands, UNBS etc) Provide Serviced Land and/or Link to Land Owners Nurture & assists SMEs to grow and partner with Multi-Nationals Cos Make Policy Recommendations to Government 10

11 6/22/2017 Physical One-Stop-Centre Services Uganda Investment Authority (Provision of business and investment information) Uganda Registration Services Bureau (URSB) company incorporation/registration Uganda Revenue Authority (URA) tax registration (TIN, Income tax, VAT etc.) Immigration Department work permits, special passes etc. NEMA Environmental Impact Assessment (EIA) studies Ministry of Lands, Housing and Urban Development land registration & titling Uganda National Bureau of Standards (UNBS) Quality of productsax 11

12 6/22/2017 Proposed Electronic One-Stop-Centre (Web-Portal) by NITA-U Key Govt Ministries/Agencies will be virtually linked electronically ( Enhance the sharing of information across Govt Depts. Reduce on the time & cost of business licensing Eliminate filling of several forms seeking the basic data from Companies. Improve UIA s capacity to provide aftercare services to investors 12

13 6/22/2017 Investment Opportunities Tourism Agro Processing Services Infrastructure: Energy, Roads, Railway etc Minerals Oil and gas 13

14 6/22/2017 Tourism Accommodation & Conference facilities Training infrastructure for tour guides and operators J/V with existing players Tourism (Cultural Tourism & sites and water sports) Faith and Religious tourism 14

15 6/22/2017 Coffee Pineapples Ground Nuts Passion fruits Oranges Cotton Investment Opportunities Agro-(crops) 15

16 6/22/2017 Agro-(Livestock) Commercial farming Processing of Livestock Products Slaughter Facilities Fisheries (Commercial farming (Cage and pond) fish processing, sport fishing, fish feeds, cold storage facilities and manufacture of appropriate fishing gear for deep fishing etc) Others(Improved seeds, Pesticide, Herbicides, Machinery Fabrication, Animal feeds/drugs, packaging materials etc). 16

17 6/22/2017 Services Education: Primary & secondary tertiary institutes & campuses Vocational and poly-techniques ICT: Business Process Outsourcing, Software Development, Computer training/assembly/repair, Mobile phone repair, Rural communication (Radios), cafes etc Internet Health: Modern Health Facilities, Training medical Personnel, Manufacture of medical equipment/drugs and Tele-medicine Finance: Development & Commercial banks and Micro Finance institutions 17

18 6/22/2017 Challenges in the Poultry Sector -Agro Processing is a high priority - Capital investments required -Small scale poultry production as a means to fight poverty BUT -Uganda has enormous potential in poultry sector however reliance on free range indigenous type of breeds is 80% while the exotic breeds account for 20% Free range poultry has not undergone a drastic improvement in its management system in last 3 decades. There is a high demand for poultry products in schools, hotels and organisations which cannot be met - A lot of products are exported such as eggs to Kenya. 18

19 6/22/2017 Challenges in the Poultry Sector (2) -Lack of knowledge and skills in poultry management -Lack of capital to put in place the necessary infrastructure - Lack of organised marketing infrastructure - Lack of power supply in certainly areas temporary -Availability of farm or factory logistics infrastructure -Poor road network to farms 19

20 6/22/2017 Investment Opportunities in the Poultry Sector -Poultry Association of Uganda -Association of Uganda Poultry Industry in Uganda AOUPIL -What kind of breeds? -Housing and hygiene -Management of diseases including vaccinations drug abuse -BIO disease control prevention movements /transport -Improvement of feeds- high quality - investment in factories -Hatcheries - incubators -Veterinary medicines -Assistance in distribution of knowledge for local farmers of how to increase their income in the poultry sector -Price of Maize increases costs for local poultry farmers May Uni student develops low cost incubator for local farmers 20

21 6/22/2017 INCENTIVE REGIME FOR INVESTORS Duty and tax free import on plant and machinery Investment Capital Allowances: Start up costs spread over the 4 years 25% p.a Scientific research expenditure 100% Training expenditure 100% Mineral exploration expenditure 100% Initial Allowance on Hotel, hospital and Industrial bldg 20% Other categories (20-40% according to classification of industry) Tax holidays (10 yrs) for Companies exporting >80% of production; Exemption of income tax for Agro processing Exemption of VAT on Agricultural equipment & inputs, e.g. Tractors, fertilizer etc Subsidized land to investors in the 4 priority sector s (ICT, Agro-processing, Tourism & Minerals processing) 21

22 6/22/2017 Security of Investment Investment Guarantees The Investment Code provides the following guarantees to an investor: Non-nationalization, or non-confiscation of investment Such acquisition is only allowed by law and in consideration of a just compensation The compensation so determined is fully transferrable outside Uganda and not subject to any exchange controls Dispute Settlement The law stipulates a clear mechanism of dispute settlement between business parties and between the government and a private investor. In case the dispute is not solved through the national courts, the law also allows settlement via international bilateral or multilateral agreements or any other international machinery agreed to by the parties. 22

23 6/22/2017 Regional Trade Associations and Blocs Agreements and Associations Uganda is a member of/ signatory to the following: Common Market for Eastern and Southern Africa (COMESA), which creates a full free trade area among its 19 members Intergovernmental Authority on Development (IGAD) East African Community (EAC) African Growth and Opportunity Act (AGOA), giving duty free access to the US market Generalized System of Preferences (GSP) EU Everything but Arms initiative International Investment Guarantees and Agreements Uganda is a signatory to and member of the following Multilateral Investment Guarantee Agency (MIGA), which provides guarantee against non commercial risks International Centre for Settlement of Investment Disputes (ICSID), which is a channel for settling disputes between foreign investors and host Governments Overseas Private Investment Corporation (OPIC) of USA Convention on the recognition and enforcement of foreign arbitral award (CREFAA) Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) 23

24 6/22/2017 Top ten sources of FDI by investment value in 000 US$ 2010/11 to 2015/ / / / / / /2016 India 149,395 Netherlan ds 200,886 Canada 143,588 Cayman 620,000 China 538,870 China 127,071 Kenya 76,507 UK 104,394 China 132,372 China 403,672 India 59,864 Kenya 104,307 Netherlan ds 69,809 Sweden 78,394 Kenya 97,289 UK 135,566 Nigeria 44,953 Sudan 76,350 Norway 67,931 Kenya 36,744 India 90,447 India 109,590 USA 35,483 Norway 64,951 China 56,294 India 25,862 UK 70,400 Italy 83,818 UK 27,359 India 43,177 Iran 22,724 China 22,687 South Africa 18,545 Kenya 72,292 UAE 22,810 Bermuda 38,994 Netherla South Turkey 14,515 Sri Lanka 18,460 Cayman 18,122 nds 55,452 Africa 14,457 Sri Lanka 30,564 South South Mauritius 14,318 Korea 5,731 USA 10,515 Africa 46,447 Sri Lanka 11,529 Denmark 20,395 Mauritiu UK 14,254 Iran 5,000 Denmark 10,104 Iran 36,309 Israel 10,690 s 19,394 South Africa 13,239 Eritrea 4,210 Sudan 9,728 German y 25,565 Tanzania 7,780 France 19,139 24

25 Conclusion Investments are growing Domestic investments are significant General investment climate has improved Few critical constraints that should be addressed e.g. power, railway, roads & transport to the sea etc. Increased investment flows reduces poverty in the country growing 6/22/

26 6/22/2017 *Thank You Very Much* Invest in Uganda Uganda Investment Authority Plot 22 Lumumba Avenue TWED Plaza, 2 nd Floor Tel: Fax: info@ugandainvest.go.ug 26

27 RWANDA: INVESTMENT OPPORTUNITIES IN AGRICULTURE JEAN PIERRE KARABARANGA AMBASSADOR EMBASSY OF RWANDA THE HAGUE

28 Introduction Rwanda Rwanda is situated in East Africa, bordered by Uganda, Tanzania, Burundi and the Democratic Republic of Congo. 28

29 Introduction Rwanda 4 PROVINCES AND KIGALI CITY 29

30 INTRODUCTION COUNTRY OF 1,000 HILLS, LAKES AND BEAUTIFUL LANDSCAPE

31 Introduction Rwanda CAPITAL CITY: KIGALI 31

32 KIGALI 1,200,000 PEOPLE 32

33 HUYE TOWN: SOUTHERN PROVINCE CAPITAL OF HIGHER EDUCATION AND CULTURE 33

34 RUBAVU TOWN : WESTERN PROVINCE TOURISM AND INDUSTRY 34

35 MUSANZE TOWN: NOTHERN PROVINCE TOURISM AND AGRICULTURE 35

36 NYAGATARE TOWN : EASTERN PROVINCE CAPITAL OF LIVESTOCK & TOURISM - AKAGERA NATIONAL PARK 36

37 RWANDA AT A GLANCE Size: 26,338 sq.km Capital: Kigali GDP per capita: $743 Gross National savings: 15.3% of GDP. Population: 11M, 152M EAC, 389M Comesa plus region GDP Growth: 8%. Trade balance (GDP):15.4%. Gross Investments as a % of GDP: 24.0% Source: RDB MINAGRI 2013 MINAGRI

38 RWANDA S VISION: A MIDDLE INCOME COUNTRY BY 2020 Following 10 years 8% average growth p.a., ambitious targets have been set to meet middle income status by Targets : Real GDP growth = 11.5% Agriculture = 8.5% Industry = 14.0% Services = 13.5% 16% 14% 12% 10% 8% 6% 4% 2% 0% Agriculture Industry Services Real GDP Growth 0, , , , , , MINAGRI 2013 MINAGRI

39 RWANDA AT A GLANCE Africa s most efficient government Zero tolerance to corruption 1 st globally in ICT promotion 2 nd Easiest Place to Do Business in Africa 03 rd most competitive economy in Africa. Most Improved Country Globally in Human Development Best Place to be a Woman in Africa and 6 th Globally Safest Place to walk at night in Africa and 5 th safest country in the world 3 rd Greenest Place in the World

40 CONDUCIVE BUSINESS ENVIRONMENT 6 hours to start a business 4 th easiest globally for a business to get credit 15 th easiest globally to acquire property Top global reformer 6 years Most competitive place to do business in East Africa and 3 rd in Africa, after Mauritius & SA. 7th best global destination for investments. 2nd in Africa after Botswana. (BPI Index 2014) 1 st commodity exchange in the EAC region Rwanda Stock Exchange Established in January 2008 with OTC transactions in bonds and equities Rwanda is the safest country to live in Africa. (Gallup Report 2015) Clean and green city, with the lowest crime of any capital city in the region. MINAGRI 2013 MINAGRI

41 ATTRACTIVE INCENTIVES FOR INVESTORS 0% Corporate Income Tax for companies planning to relocate H/Q s to Rwanda Capital Gains tax exemption One Stop Center: quick business & investment registration; visa& work permits; notary services etc. 15% Preferential Corporate Income tax for key selected strategic sectors i.e. exports, energy, transport, ICT and Financial services 7 Year Corporate Income tax Holiday for large projects in strategic sectors i.e. Manufacturing, energy, export, tourism, ICT and Health services Duty free importation of machinery and equipment, raw materials (15% - Intermediate goods, 25% - Finished goods) Accelerated Depreciation of 50% for key priority sectors i.e. Tourism, Construction, manufacturing and agro-processing Repatriation of Capital and assets After care services: RDB facilitates investment projects even after registration MINAGRI 2013 MINAGRI

42 AGRICULTURE SECTOR VISION Vision % Agricultural Growth Agriculture 25% of GDP 40% of land under modernised ag EDPRS II Agriculture driving rural development Increased productivity and private investment 28% annual export growth PSTA III Increased productivity and food security Building human capacity and encouraging innovation Market focus, commercialization and value addition The private sector has a key role in achieving PSTA III: -Investing in high value export crops -Adding value to products - Providing capital and credit MINAGRI 2013 MINAGRI

43 Agriculture in Rwanda Importance of the Sector Vision 2020, identifies the agriculture sector as a priority to reduce poverty and drive economic growth Agriculture accounts for 33% of Rwanda s GDP and employs 68% of the labor force. The sector also has strong forward linkages with other sectors (e.g. manufacturing, trade) and helps to create off-farm jobs. The sector meets 90% of the national food needs. The sector employs 68% of the labor forces and 80% in the rural areas MINAGRI 2013 MINAGRI

44 Current Status of Agriculture in Rwanda Decrease of Farming Population owing to Industrialization Agriculture Industry accounts for 33% of total GDP and about 68% of the total workforce 80% of the rural population is engaged in agriculture, but urbanization and industrialization are also taking place, resulting in a rapid decrease in rural young population The rural population is expected to be more aged and the current farmland utilization rate will be lower than 52.5% in near future 100 Agricultural Ratio of GDP Source : World Development Indicator (November, 2014) Agriculture (%) 66,27 54,48 61,74 67,45 66,67 33,73 45,52 38,26 32,55 33, Agricultual Ratio (%) Other Industries MINAGRI 2013 MINAGRI

45 Current Status of Agriculture in Rwanda cont d Needs to Secure Food for the growing Population Total population of Rwanda in 2011 is 11 million, and by 2020 it is expected to increase to 13.1 million It is urgent to secure food for the growing population and increase rural incomes Population Changes And Prospect of Rwanda UNIT : 1,000 PEOPLE (SOURCE : WORLDBANK) MINAGRI 2013 MINAGRI

46 Current Status of Agriculture in Rwanda cont d Need to Reduce Manpower Input by Improving Agricultural Technology The arable area of total Agricultural land area of 1,809.5 HA is 1,149 HA (Agricultural Land Utilization Rate : 63.25%) Crop Production is dependent on labor force and traditional hand equipment by more than 90% More than 45% of farmland in the south, west and north (Excluding the eastern area) is distributed in mountainous terrain with a slope of 16% or more Arable and Agricultural Land Area Geographical Distribution of Slope Source: WorldBank Sources : Ministry of Agriculture And Animal Resources / Agricultural Mechanization Strategies for Rwanda MINAGRI 2013 MINAGRI

47 Agriculture Land Information System MINAGRI 2013 MINAGRI

48 Agriculture Land Information System Assists investors to locate land for commercial agriculture use Assists MINAGRI to improve land management and planning Interactive, web-based resource containing relevant agriculture information about public land Data is visual and textual Agriculture Information soil type, suitability, slope, elevation, rainfall, and natural water sources Proximity to infrastructure roads, markets Current land use and users for parcels >10 ha in size MINAGRI 2013 MINAGRI

49 Investor Facilitation and Aftercare services Institutional Framework for Agribusiness Investment Promotion To promote increased private sector investment in agriculture and To improve GOR support services to the private sector MINAGRI 2013 MINAGRI

50 Investor Facilitation and Aftercare services cont. Agribusiness Public/Private Dialogue Mechanism Improved public / private dialogue mechanisms at both the national and local levels for agriculture Company Issue Tracker MINAGRI 2013 MINAGRI

51 Agribusiness Investment Opportunities Excellent site-to-airport road connectivity All identified sites <70km and 1 hour drive to Kigali international Airport on good roads Power available at all sites 15ha at Nyacyonga, former Rwanda Flora Rose Farm Only 10km from Kigali 35ha Fully operational farm Bella Flowers Shores of Lake Muhazi. Approx 65km from Kigali international airport via the main Kigali-Rwamagana road, approx. one hour drive 65ha at Gishari, adjacent to Bella Flowers 65km/1hour drive to airport Modern airport facilities at Kigali International Airport 4 hectare customs clearing and warehousing facilities State-of-the-art cold storage with 30MT available capacity Current capacity:production ratio is 5:1 Government commitment to invest in futher infrastructure if required

52 The Gishali Flower Park II The feasibility study has indicated Gishali can have at least 100 ha roses in smaller farms managed individually. Currently 35 ha are under the management of a private company created by NAEB called Bella flowers. 65 ha available to the private sector to invest in the expansion. 52

53 The Nyacyonga Flower Park Nyacyonga Flowers Park is located at Nyacyonga village, Gasabo district, Jabana sector, Akamatamu cell, about 20km from Kigali on the road to Gatuna. The total land available, around 28 ha. Originally 7.5 ha were under flowers with 1.0 ha of steel greenhouses and the rest of 6.5 Ha under wooden greenhouses. Clearing this space can allow to plant new roses varieties or summer flowers now highly attractive on the market. 53

54 Gashora Farm The project will be implemented on 180 ha of land in Gashora in Eastern Province District of Bugesera. The project will select varieties of vegetables based on the projected demand and quality requirement of key export markets, mainly from those of Europe and Middle Eastern Asia (Gulf) countries. The project export targets are as follows First Year Second year French beans Chili Ginger 54

55 Horticulture Priority projects overview Exports incomes from fresh fruits, vegetables and flowers are projected to reach $11million by A number of strategic initiatives have also been initiated by the Government to support the sector s growth. Such initiatives (as listed) are at various implementation stages Production Post harvest logistics Market access Priority project list 1. The Gashora Farm 2. Nyacyonga Flower Park 3. The Horticulture Center of Excellence 4. Muyumbu Nursery for Macadamia seedlings 5. Gishali Flower Park 7. The Pack house and freight logistics 8. The Pack house and freight logistics for export 55

56 Agribusiness Investment Opportunities Fruits & Vegetables Range of vegetables (French beans, snow peas, carrots, spinach, beetroot, okra, etc.), and spices (chilies, hot pepper, ginger, black pepper, turmeric, etc.). Fruit trees: Mango, Avocado, Orange, Citrus, Macadamia, banana, passion fruit, Japanese plums (tamarillo) Horticult ure Agroprocessing Agro-processing sites identified in different district Value addition to various agricultural products Addition of premiums to productivity increases for export (dried fruits, dried vegetable, fruit pulps, powder etc.) MINAGRI 2013 MINAGRI

57 Agribusiness Investment Opportunities READY IDENTIFIED INVESTMENT OPPORTUNITIES Floriculture Development 35 ha secured for flower park operational and additional 65ha under preparation Targeted expansion 650 ha for flower production Opportunities in production of summer cut flowers Horticult ure Fruits & Vegetables exports Irrigated land for year round production in different agro-climatic zones Range of vegetables (French beans, snow peas, chilies, okra, hot pepper, etc.), fruits (avocado, banana, passion fruit, tamarillo, etc.) and spices (ginger, turmeric, etc.). Almost 80% of the production zones are within 100 km of Kigali Airport; Opportunity to produce Vegetable seeds locally. Seeds treatment plant is already in place (SEZ) Post harvest &Agroprocessing Agro-processing sites identified in different district Agro logistics including cold chain for fresh product handling Value addition to various agricultural products Addition of premiums to productivity increases for export MINAGRI 2013 MINAGRI

58 Agribusiness Investment Opportunities cont. Local production of Packaging materials Opportunity for establishment of manufacturing plant for different packaging materials Agro Services Extensions/Advisory services training and coaching Financial Services Inputs Supply Marketing ICT for Agriculture: E-payment, irrigation, solar Mechanization Service MINAGRI 2013 MINAGRI

59 Agribusiness Investment Opportunities cont. READY IDENTIFIED INVESTMENT OPPORTUNITIES Production of Food crops using developed terraced land with Irrigation infrastructure Approximately 93,000 Ha have been developed under radical terraces and a further 900,000 Ha under progressive terraces; These offer opportunities for contract farming on grains, pulses and horticulture production Kigali Wholesale Market for fresh produce A 10 ha land available in the Kigali Special Economic Zone (SEZ).( Feasibility studies completed, Architectural designs available) MINAGRI 2013 MINAGRI

60 Agribusiness Investment Opportunities Commercial Production of Chicks, Eggs & other poultry products Large Scale farm, Slaughterhouse Meat processing and packaging Eggs (70% import) Feed mills Commercial Production of small stock animals (Goat, Pig, Rabbit, Sheep) & by products Large Scale farm, Slaughterhouse Meat processing and packaging Feed mills Fisheries & Aquaculture products Over 25 lakes (128,000Ha) with the largest Lake Kivu 2,700 Km 2 Aquaponics Beef Products Beef farming and processing Mobile Slaughterhouse Dairy Farm Dairy processing Units Forage Production Production of sexed semen Drugs & vaccines for FMD & New Castle diseases MINAGRI 2013 MINAGRI

61 Post Harvest Infrastructures Agro logistics including cold chain for fresh product handling Silos, Warehouses and Mobile drying facilities; Food Security Grains: Maize, Beans, soybeans, Rice Tubers: Potatoes, banana, cassava, sweat potatoes Market Opportunities Local Markets : Hotels, Restaurants, Agro-processing companies (MINIMEX, Africa Improved Food, Inyange Industries, etc.), Animal Feed Plants, WFP, EAX, MINAGRI SGR International Markets: EAC,Sudan, DRC, EU, USA, Asia MINAGRI 2013 MINAGRI

62 Mechanization Investment Opportunities Background Agriculture mechanization started in 2010 funded by GoR 25% of all farm operation to be mechanized by 2017 (Mechanization strategy),currently at 20% Private sector was expected to take over gradually (now at 50%) MINAGRI 2013 MINAGRI

63 Mechanization Investment Opportunities Importation of Equipment Maintenance and repair services Manufacturing of farm tools and machinery/tractor Assembly line Based on current survey, less than 200 unit of four wheel tractors are available in Rwanda. Land potential for mechanization is 989,000 ha, only 30,000 ha is mechanized so far. 400 more units are needed to achieve 0.5hp/ha (a country said to be mechanized). There are no private maintenance and repair facilities in Rwanda specializing in farm machinery. The available mechanization workshop (RAB Kabuye Workshop) can not serve both public and private machinery. A building to accommodate machinery assembly line has been established in the Kigali Special Economic Zone (SEZ).( Feasibility studies completed and available). Land for expansion is also available. MINAGRI 2013 MINAGRI

64 Mechanization Investment Opportunities Machinery Hire Services Companies to provide machinery hire services to farmers are needed. The few existing are not well equipped with enough machinery and are always faced with high demand. Leasing of farm machinery Mechanization Centre of Excellence There are no registered farm machinery leasing firms in Rwanda. Given that Mechanization started in 2010 and now at 20%, mechanization service providers are in need of machinery leasing companies to increase their stock. Mechanization Centre of Excellence (for Research and Development) under establishment in Kigali, will be operational by January 2018 and we shall be looking for a PPP with a private firm to run the centre. MINAGRI 2013 MINAGRI

65 Strategic Grains Reserve Investment Opportunities Background National Strategic Grain Reserve started in 2010 funded by GoR, NSGR aims to ensure National food security, mitigate the impacts of potential shocks to the food security, and reduce malnutrition and hunger among the population, while avoiding market distortion. MINAGRI 2013 MINAGRI

66 Strategic Grains Reserve Investment Opportunities Post Harvest Infrastructures Increment Food Security ensured Three Modern Metallic Silos Constructed, Warehouses and Drying grounds constructed in different Districts. There is a gap between storage capacity which is about 50,000MT and production to the market which is about 300,000MT MINAGRI through with Farmers Cooperatives for storing more than 10,000MT of Maize and more than 5,000 MT of beans every year. Market Opportunities Local Markets : Minimex, Animal Feed Plants,.. International Markets: Africa Improved Food, WFP MINAGRI 2013 MINAGRI

67 HARTELIJK BEDANKT Thank you! Rwanda Development Board Website: Ministry of Agriculture and Animal Resources Website:

68 presented by in close co-operation with supported by

69 EVENT OVERVIEW TUESDAY OCT 4 WEDNESDAY OCT EXPO Technical Best Practices Seminars Leadership Conference EXPO Technical Best Practices Seminars Leadership Conference free entrance paid entrance free entrance paid entrance

70 WHY RWANDA, WHY KIGALI? the country of Rwanda - the UAE of Africa Neutral country Politically stable Safe - Accessible for all Small poultry sector => ideal country to host a truly international poultry event Centrally located for Sub-Saharan Africa Combine business & pleasure => excellent tourism destination (safari for the Big-5, gorilla tracking, bird watching) the capital city of Kigali - set to become the Singapore of Africa! Excellent air-connections (direct from Europe s Top-5 airports, Dubai and within Africa) A wide range of local and international hotel chains + numerous quality restaurants and some bars and night clubs Leading host-city for Pan-African business and political events KCC => Africa s best exhibition and conference venue High altitude, few risks for Malaria A very relaxed, fun and beautiful city

71 A UNIQUE BUSINESS-TOURISM DESTINATION

72 GETTING TO KIGALI? Fly intercontinental direct from Amsterdam, Brussels, Dubai, Istanbul, London, Qatar Fly direct within Africa from all major airports. Special discounts on air tickets will be made available by Rwandair Special bus services from various stations in Rwanda and Uganda will be arranged for Make use of BTC s travel arrangements for hotel bookings, from USD 56,- per night onwards A special tool is available to arrange local transportation in Kigali Visa information on also visa on arrival for many countries

73 ORIGIN OF VISITORS Objective: 1,000 visitors With a focus on WEST & EAST Africa

74 GETTING SUB-SAHARAN AFRICA TO KIGALI A dedicated campaign by VIV worldwide & partners VIV worldwide s Africa network => 2,500 contacts following VIV Asia, VIV Europe and VIV MEA in Sub-Saharan Africa BOI France => Senegal - Ivory Coast & WEST Africa NABC, NAFTC, DPC, MinEZ (NL) => Ethiopia Kenya Sudan Tanzania Uganda African Farming => all-africa, with a focus on Cameroon - Ghana - Nigeria Positive Action Publications => all-africa, with a focus on EAST Africa & Mozambique Zambia WPSA & WVPA => all-africa Africa Agribusiness Academy => EAST Africa WATT Global Media => all-africa BRD, MinAgri Rwanda, RDB => Rwanda & EAST Africa Rwanda Poultry Industry Association => Rwanda DFID Dep. for Int. Development (UK) => all-africa, with a focus on Rwanda & EAST Africa Clinton Foundation => all-africa, with a focus on Rwanda & EAST Africa

75 EXPO companies exhibiting in the segments: - Feed, Feed ingredients & additives, Animal health - Breeding, Hatching - Farm production - Slaughtering & Processing (meat), Handling/Processing (eggs) International companies from Europe & USA + Rwanda Pavilion Free entrance upon (pre)registration

76 TECHNICAL BEST PRACTICES SEMINARS Topic selection Breeding & Hatching Animal health Feed production & Nutrition Farm management Financing my farm Free entrance upon (pre)registration

77 LEADERSHIP CONFERENCE Sessions animal health Antimicrobial Resistance Zoonotic Pathogens Avian Influenza Poultry Welfare Sessions business outlook Trade Opportunities for Africa Optimal Feed Supply & Feed Production for Africa Marketing outlook Africa Profitable Farm Management Paid entrance upon pre-registration & onsite registration: USD 99,- per delegate (including coffee breaks, lunches, grand network cocktail)

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79 Day 1 & 2 Uganda POULTRY TRADE MISSION UGANDA & RWANDA Day 5 & 6 Rwanda Visits to layer/broiler farms, feed factory, abattoir + B2B session Visit to layer/broiler farms, feed mill and optional: gorilla safari Day 3 & 4 Rwanda Visit the Leadership Poultry Africa 2017 & the expo + B2B session More information: Daphne Meijer-Willems Daphne.Willems@nabc.nl +31 (0)

80 BREAK UNTIL 3PM

81 Poultry Development in Eastern Africa, a regional perspective Africa Day, Pluimvee Museum 21 st June 2017

82 Objective of the Study Objective Assessment of the consequences of regional interdependency on the position of SME s in the poultry value chain. Desired outcome Input for rephrasing the approach for development of the East African poultry value chain. 82

83 Why this study 1. We would like to provide insights into the prospects of growth of the poultry sector with reference to the regional interdependencies. 2. Highlight the comparative and competitive of each individual nation and the region as a whole with reference to interdependency. 3. Evidence the bet prospects for competitive growth and development of poultry industries across East Africa. 4. Inform Dutch policy to the effectiveness and efficiency of a regional approach in lieu of the interdependencies. 83

84 Thematic focus for the study Production systems & Processes Capacity Knowledge Technology, training & education gaps Policy & regulatory environment Market Aspects of Interdependencies as relates to the 4 themes 1. Animal feed 2. Poultry health 3. Inputs 4. Markets 5. Innovation 6. Regional trade policies 84

85 Markets, Regionalisation across Africa East African Community (EAC) Member States: 6 Imports (US$ B): 36 GDP (US$ B):110 Population (Millions): 153 Countries Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda. Common Markets for East and Southern Africa (COMESA) Member States: 19 Imports (US$ B): 150 GDP (US$ B): 690 Population (Millions): 406 Countries Burundi, Comoros, D.R. Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. Economic Community of West African States (ECOWAS) Member States: 15 Imports (US$ B): 106 GDP (US$ B): 675 Population (Millions): 340 Countries Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea- Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo SADC Number of Countries: 15 Imports (US$ B): 201 GDP (US$ B): 750 Population (Millions): 277 Countries Angola, Botswana, Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia ad Zimbabwe. 85

86 Markets, Expected growth in the poultry sector Countries with expected growth (poultry sector) of 6 10% year on year between 2015 and Nigeria 2. Cote d Ívoire 3. Ghana 4. Ethiopia 5. Uganda 6. Kenya 7. Tanzania 8. Mozambique Source: Rabobank projections based on food and Agriculture Organisation of the United Nations, OECD, USDA and local data,

87 Markets, Trading regions in sub saharan Africa EA: Kenya, Uganda, Tanzania & Rwanda WA: Nigeria, Ghana & Cote Ídvoire SA: South Africa, Mozambique, Zambia 87

88 Markets, Average price of day old chicks Price/ head of Day old chicks in USD ($/head) 1,37 1,25 1,14 1,04 1,04 0,81 0,83 0,79 0,76 0,50 0,59 0,59 UGANDA RWANDA TANZANIA KENYA DR CONGO BURUNDI Prices as at June 2015, Source: FAO Average price of day old chicks (layers) Average Price of day old chicks (broilers) 88

89 Markets, Per capita broiler production 2,2 1,82 1,4 1,5 0,52 0,47 UGANDA RWANDA TANZANIA KENYA DR CONGO BURUNDI Prices as at June 2015, Source: FAO 89

90 Markets, Effects of interdependecies 90

91 Animal Feed, Challenges Item Cost Price Market for poultry feed ingredients Production of ingredients Quality of feed Description The cost price for most poultry products is determined mainly by the feed cost, and DOC s. Quite complex markets with multiplicity of ingredients that are seasonally available whose price is not consistent and whose quality cannot be guaranteed. Information on trade related to ingredients is also largely unreliable hence difficult to establish exact market size (including both formal and informal trade). It is possible to produce some of the ingredients required for poultry feed production at national and regional level but there is a significant dependency on imports. For instance maize which is a major component of feed is a staple food in East Africa and Kenya is the 2 nd highest importer of maize in Africa (Kenya also imports maize from Uganda and Tanzania). In a number of cases adulteration of feeds occurs which affects the quality of feed. In addition due to the lack or unavailability of all inputs all year round the quality of feed is not consistent. 91

92 Animal feed, availability and costs of Ingredients F T B A Maize Flour B Treacle C Bone Powder S Antibiotic Additive S Maize Bran B Cottonseed meal E Salt Soybean meal F Rice Bran T Egg shells or Limestone P Fish Flour Technology Premix Vitamins 92

93 Animal feed, Price of feed Price/ Kg of Feed in USD ($/kg) 0,58 0,34 0,44 0,36 0,42 0,18 UGANDA RWANDA TANZANIA KENYA DR CONGO BURUNDI Prices as at June 2015, Source: FAO 93

94 Animal feed, Price of eggs as an indicator of the influence of feed prices Price of eggs in USD ($/egg) 0,200 0,137 0,100 0,063 0,066 0,074 UGANDA RWANDA TANZANIA KENYA DR CONGO BURUNDI Prices as at June 2015, Source: FAO 94

95 Regional Trade Policies, Highlights Drivers for growth of intra-regional trade in poultry products Land productivity Public agricultural expenditure Efficiency of customs clearing Quality of port, rail and connections between countries Road density Streamlining of regulatory environment Enforcement of laws and regulation Obstacles to regional trade Number of checks per 100km on road travel Corruption 95

96 Summary Item Agro-ecological conditions Livestock management systems Weak feed market Curriculum development & training Availability of arable land Feed processing High energy costs Regulatory environment Lack of reliable data Description Due to the good climate and natural resources, there is a substantial potential for an increasing livestock sector in the region, this is not being fully exploited/ utilized. A growing number of farms are focusing on management systems (feed, growing broilers or layers), this systems need to be accompanied with education/ training on utilization of the information produced from these systems. Local market for animal feeds is weak. The supply of uneven quality and quantities of raw materials and finished products causes variations in prices. The costs of production increase because of this uncertainty. Both tertiary and vocational level training institutions need support to develop their curriculum and at a technical and vocational level. There is land available throughout the region to grow feed inputs and also for poultry farming. There is pressure on arable land in view of increasing urbanisation and there are also issues related to crop farming for feed as opposed to food which would need to be addressed. The future for farmers would be in-house feed processing, but this will take some years. The farmers have to be educated/trained well and the equipment will be a large investment. In the meantime the animal feed producers will increase the volume of production. Energy (electricity) costs are quite high and its often unreliable which makes it hard for businesses to run smoothly. There are significant difference in regulation across the region as concerns a number of topics imports, exports, vaccines, certification etc. Enforcement is weak as well Information with regards to various aspects of poultry production, processing and marketing is often unreliable, scattered or no existent for most countries in the region. 96

97 Regional Trade Policies, Highlights Follow up survey into actual feed prices. test 16jun price survey livestock feed and inputs (v. 1.0) Question Response Money and location of this interview 1. The prices are expressed in: Kenya Shilling Rwanda Franc Tanzania Shilling Uganda Shilling US dollar Euro 2. The location of the price information is: 3. Take a photo of the source of this information 4. Option: take a short video 5. Observations on this part of the survey? Broiler feed and inputs 6. The price of day old chicks 7. The price of broiler starter feed 8. The price of broiler grower feed 9. The price of broiler finisher feed 10. Observations on this part? Layer feed and inputs 11. Price of day old chicks layers 12. Price of 2 month old hens (layers) 13. Price of layer rearing feed 14. Price of layer feed 15. Observations on this part? 97

98 Thank you for your attention! 98

99 DUTTEDDY WABOMBA - BEGO FAMILY FARM CLARA ANZOA AYA - AYA MIXED FARM HADIDJA NAKAZZI - JENHA POULTRY FARM (U) LIMITED

100 Q & A