Presented by: Acham Ketty Elungat. Mobile: Website:

Transcription

1 REDUCING HOUSEHOLD VULNERABILITY OF FORMER INTERNALLY DISPLACED PERSONS IN NORTEHRN UGADA THROUGH AGRIBUSINESS Presented by: Acham Ketty Elungat. Mobile: Website: 1

2 Organization background North East Chilli Producers Association LTD (NECPA) is a company limited by guarantee without share capital. It was incorporated in the year 2000 formed by 1,027 women. The principal objective of the organization is to improve food security and increase household incomes of the rural poor through commercial production of high Value crops such as chilli, Coffee, Cashew,Chia, Maize and Sesame o NECPA has undertaken commercialized production of African bird s eye chilli in the Northern and Eastern regions of Uganda as the first innovator of African bird Eye chilli production o NECPA is the biggest producer and supplier of chilli to exporters in Uganda and East Africa. o Currently NECPA supports 10,000 households, Mostly formerly Internally displaced and abducted persons of which 71% are women and youth, whose production capacities have increased to 345, 000 kgs in 2014 and attracted a purchase price of up to ug.sh. 5,000 per kilogram from 4,500. Hence increasing their incomes by 15% per household this season the current farm gate price of chilli is 6,000 and expected yield volumes is about 500,000 kgs (500 MTs) 2015 chilli crop 2

3 MISSION Vision Economic empowerment of rural poor House Holds in Northern and Eastern Uganda through the promotion of high value crops and building community capacity, peace building for financial stability. Self-sustaining and financially prosperous communities in Uganda. 3

4 SOCIAL PROBLEM The community of Northern Uganda are living below poverty line due to war which lasted two decades and the community was forced to Internally displaced peoples camps with no means to acquire human basic needs and alternative incomes and food with the current data of 46.2% poverty level as per national household survey report 2009/2010. In order to reduce vulnerability caused by poverty NECPA introduced high value and non- traditional crops such as chilli & coffee,cashew nuts, Chia, and Beekeeping in Northern Uganda 4

5 VALUE PROPORTION African bird Eye Chilli is a high value crop organically produced by 10,000 households in Northern Uganda with high capsicum & pungency required at the international markets Our Coffee is the ranked 2 nd best Robusta Coffee in Uganda Guaranteed and timely supply of quality quantities dried chilli free of Aflotoxins Easy traceability through contract farming Chia has Omega 3 elements and very good for household nutrition and improving body immunity Our honey has high market demand locally and internationally 5

6 CUSTOMERS Local exporters namely ESCO Uganda Limited MeTL Uganda LTD Mayana Enterprises Local communities, Asian Community in Uganda DaniFoods NUCAFE UGACOFE Shares Uganda Limited 6

7 DISTRIBUTION Direct sales to Exporters Supermarkets E-sales using( face book, YouTube, websites, Linked in Plat forms such as APF forum and AAA Sales agents Community marketing committees Agro input dealers Sales points/ outlets 7

8 Partnerships Communities Local Government NARO, UEPB, UIA,UCDA,NUCAFE Development partners ICCO, USAID,NOW-WOTRO,YUNUS 8

9 COMPETITION Our main competitors are Mayana Enterprises LTD Shares U LTD exporters of Organic chilli to Europe USA, North America Middlemen who trade in produce ICE mark Exporter of fresh chilli DaniFoods The competitors are a major threat because they have enough cash to pay for the chilli however the cooperative advantage we have over them is that the farmers have built trust because of other benefits and services which we provide to them including contract farming access to seeds, extension services and capacity building which our competitors do not provide so they share 40% of the producers and suppliers 9

10 Cost Estimates for 1 year in Euros exchange rate taken at UGX 3350 per Euro No. Description/ Activity Quantity Unit cost Frequency Amount Amount in UGX 1. Purchase of Isuzu track (20 tons capacity) 2 Purchase of Chilli processing Equipments 1 45, , , , , ,750,00 3 Construction of ware 2 25, , ,500,000 house 4 Purchase of dryers 10 3, , ,500,0. 5 Promotions 1 5, ,000 50, Material cost/ purchase of Chilli 35 tons 2, , , Operational,(Fuel, maintenance &repairs Lump sum 15, ,000 15, Extension & , , procurement Staffs 9 Management staffs ,000 90, Technical staffs ,400 48, Support Staffs ,000 40, Branding 4 15, , ,000,00 13 capacity building/ 2 5, ,000 33, trainings Total ,455,240,000 10

11 REVENUE: Our yield estimates 2015/2016 is 500,000kgs of Dried Bird Eye chilli of which 250,000 kegs will be crushed into chilli powder giving 90,000kgs of which 10,000 will be sold as powder and 80,000 will be used to process chilli source 250,000 8,500 2,125,000,000 10,00 kgs 250,000,000 80,000 kgs Chilli 400,000,000 2,775,000,000 Equivalent Euros 828,359 Yield estimates for coffee 2015/2016 coffee year is about 382,000 kgs kiboko which is bought at 2,300 per kgs and shall be hulled to FAQ and total of 152,000 kgsfaq Screen 18 which will be sold to exporters at 8,000 11

12 Challenges Limited financial resources/ Capital to Purchase African dried bird eye Chilli & Coffee from producers, and other relevant equipments/ machinery. Lack of Processing equipments Lack of a truck for transportation of chilli and other produce Limited Storage facilities / Ware houses Limited Drying equipment and technology Poor Quality of chilli due to poor post harvest handling and lack of drying equipments Limited human resources to support the 10,000 households and product diversification Limited transport facilities ( motorcycles and vehicles) 12

13 CURRENT SOLUTIONS Acquiring Bank loans, advance receipts from some buyers We have small powder processing machine with limited capacity We have been using Double cabin pick ups with limited capacity for carrying products only up to 1.5 tons and hiring other tucks for collection and transporting at a very high cost We have small capacity store which can accommodate up to 25,000 kgs and hire others at community levels Provision of local drying technology using UV polythene sheets and direct sun drying using Drying racks and papairus mats or tarpaulins in their open compounds. 13

14 CURRENT SOLUTION CONTINUES We have been conducting trainings for pre and post harvest handling techniques. We currently have up to 30 staffs and we are using Community Based Facilitators to provide services to the farmers using farmer field school (FFS) methodology. Currently we have two (2) double cabin pick ups and five (5) motorcycles three (3) of which were given by USAID Projects however they have highly depreciated and so oftenly brake down. 14

15 The project will improve quality and quantity of African Bird Eye Chilli through provision of improved post harvest technologies and dryers to the farmer households at a fordable cost, Value addition through processing will be done this will increase farmer household incomes as the farm gate price will improve Value addition will be done to process chilli into powder and source in order to promote local consumption and creating new market opportunity This will improve the mode of transportation of chilli from rural collection centers to the main bulking stores. Storage and Transportation will improve and the products will increase NECPA incomes to provide better services to the community 15

16 GROWTH African bird Eye Chilli has very high demand in the Global market and NECPA has technical expertise in chilli (human resources) another opportunity is the diversification of products such as Coffee, Chia, cashew nuts and Honey which all have high market demand locally and Internationally. The Government policy on Industrialization and commercialization of agriculture through value addition is opportunity for scaling up the community will and commitment to produce quality quantities of chilli and the selected value chains helps us to scale up because currently we are at growth level and the good climate for the selected value chains the mitigation strategy for Climate change is already developed with the community (Climate Change adaptation Strategy) 16

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