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Piw Project Proposal - Supporting Eastern Farmers in the Sunflower Value Chain

Piw Project Proposal - Supporting Eastern Farmers in the Sunflower Value Chain

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Project proposal on supporting smallholder farmers in Eastern Uganda in the development of the sunflower value chain for household income enhancement
Project proposal on supporting smallholder farmers in Eastern Uganda in the development of the sunflower value chain for household income enhancement

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PIW PROJECT PROPOSAL – EASTERN UGANDA SUNFLOWER VALUECHAIN DEVELOPMENT PROJECT 1.0 INTRODUCTION 1.

1 Project Background/Achievements to date

Peoples’ Interventions Worldwide (PIW) is a Ugandan Non-profit; people-centred Non-Government Organization (NGO) founded in 2009 to contribute to local economic development in the Teso Region. The Mission of PIW-Uganda is to enable people to build new lives through socio-economic transformation projects, advice and information, enhancing opportunities, and advocating for the rights of the poor and oppressed in society. PIW-Uganda is guided by a 5-year strategic plan 20112015 whose major focus is promoting sustainable livelihoods- built around promotion of local economic development and agricultural initiatives, through Farmer Field Schools (FFS) methodology, farming as a business for improved livelihoods at household level. PIW-Uganda’s programming integrates cross-cutting issues including Gender, HIV/AIDS, natural resource management, food and nutrition security. PIW-Uganda’s Secretariat is in Kumi Town has management team and is governed by Advisory Council (AC) which comprises of 9 eminent persons. The AC is responsible for oversight role in ensuring that the project is implemented within policy and strategic goals of PIW-Uganda. Currently, PIW-Uganda is implementing an agricultural project in 6 Sub-counties namely; Ongino and Nyero Sub-counties in Kumi District, Mukura and Kapir in Ngora District and Toroma and Magoro in Katakwi District. PIW-Uganda is supported by the Teso Development Trust-UK based Charity and Solidarite Pour Agir Ensembe (SPAE) France. Over the 2 years PIW-Uganda has trained 1,700 farmers (900 men and 800 women) in good agronomic practice on grains, legumes, tubers and fruit trees for commercial purpose. PIW-Uganda has been targeting 50 Smallholder Farmer Groups constituted by 600 men and 650 women supported initially with 80 oxen, 300 bags of groundnut seeds, 15,000 Kgs of peas, 1,000 bags of mosaic-free cassava stems promoted through strategy of ‗multiplier‘ mechanism. PIW has also supported formation of ten (10) Village Savings Loans Associations (VSLA) each now having revolving capital worth Ushs 15 million. The group savings have facilitated their income generating enterprises for retail businesses; piggery and poultry activities in Nyero and Ongino. The ‗multiplier‘ strategy promotes the pass on of cassava cuttings from initial farmers to new farmers for further multiplication to increase production of cassava as a food buffer for their households and market for income.

1

1.2

Sunflower Value-Chain Development Project Overview

PIW-Uganda is implementing a sunflower project in the sub-counties of Ongino, Nyero, Kapir and Mukura in Kumi and Ngora districts respectively. PIW procured seed from UOSPA (Uganda Oil Seed Processors Association) using locallyresourced funds and little savings from other projects implemented by PIW-Uganda. This sunflower seed has already been disbursed out in form of an advance loan to the 100 selected farmers out of the 8,000 small holder farmers that had been previously supported and trained in best agronomic practices under the groundnut enterprise project funded by the Agribusiness Initiative (aBi) Trust. Farmers have been issued with contracts engaging them to produce the seed and eventually selling it back to PIW-Uganda after harvesting the produce. As it stands of today, we have 100 acreage of land under sunflower production and the farmers have started harvesting the produce. Owing to the high rainfall precipitation in the area especially during the second half of the year, a substantial yield of 800 kgs per acre is expected from each harvest by the farmer. Over the last one and half years, PIW-Uganda has trained 530 female youths, 228 male youths, 2,739 adult females and 1,169 adult males on Entrepreneurship and Agri-business skills. Currently, PIW-Uganda through its foundation structures within the target communities has been able use the homes of its farmer facilitators as collection points from which the produce is collected, weighed and sold to the potential buyers. Presently, PIW-Uganda is targeting 8,000 small holder farmers in this project of sunflower production and value chain enhancement. 5,000 shall be Females and 3,000 males (these will be mostly youths and women) and they shall be organized in 320 farmer groups. 1.3 Goal and Overall Objective

The goal of PIW-Uganda is to sustainably commercialize sunflower smallholder agriculture through improved productivity and market development, resulting in marketable surpluses that raise farm incomes in Eastern Uganda, and increase food security for the nation at large. Starting with the ‗pull‘ of the market by working with sunflower for which there is strong demand, PIW-Uganda will employ a systems approach to develop integrated cropping systems around the sunflower crop farming in the eastern Uganda districts of Kumi and Ngora — combined with an accelerated cluster development approach appropriate for this eastern Uganda. In addition to agricultural intensification, attention will be paid to 2

input market development (both seeds and fertilizer), output marketing, linkages to agribusinesses and advocacy for improvement of the policy environment. By the end of the PIW-Uganda Eastern Uganda sunflower value-chain development project in December 2016, 16,000 smallholder farmers will have doubled yields, achieved a 50 percent increase in incomes, and produced an annual marketable surplus of 27,000 metric tons of cereal equivalents. This will contribute to the increased rural incomes and trade in eastern Uganda and increased food security in the region. 1.4 Project Purpose and Specific Objectives

To begin with, PIW-Uganda will focus its first year‘s work plan on 8,000 small holder farmers in Kumi and Ngora districts before gradually rolling it out to benefit the projected 16,000 small holder farmers by December 2016. The purpose and specific objectives of the first year‘s work plan of the PIW-Uganda Eastern Uganda sunflower value-chain development project is defined as here below: Purpose: To improve the livelihoods of 8,000 smallholder sunflower farmers by enhancing food and income security through increased production, productivity and marketing in Kapir and Mukura Sub-counties in Ngora District and Nyero and Ongino in Kumi district. Specific objective(s): 1. To increase production, productivity and marketing opportunities by 60% for 8,000 smallholder farmer households (1,000 men and 2,000 women, 2,000 male youth and 3,000 female youth), organized in 320 farmer groups) through training in modern techniques of groundnuts agronomy, enterprise development, post-harvest and storage, and collective marketing by the end of the project. 2. To build the capacity of sunflower smallholder farmers in understanding and appreciating gender issues as well as working towards improved gender relations in households to promote women‘s economic rights. 3. To enhance institutional capacity of PIW-Uganda to support farmer groups to improve their welfare through sunflower vegetable seed production enterprise. 1.5 Approach

PIW-Uganda will be built on a market driven approach, focusing on the development of competitive value chains and farming systems that will lead to 3

considerable marketable surpluses, contributing to increased incomes and trade in eastern Uganda and greater food security in Uganda. Starting with the market ‗pull‘ of agribusiness development in Uganda, cluster development will focus on agribusiness and entrepreneurship in eastern Uganda at all levels – from local to national. This will allow farmer beneficiaries to seize on Ugandan, regional and international opportunities by targeting markets and trade to neighboring countries, and developing supply chains to national and multinational agroprocessors. To reduce production and transaction costs in the sunflower value chain, PIW-Uganda will introduce both technical and institutional innovations to increase profitability. Market development forms the foundation of PIW-Uganda, as it is the market ―pull‖ on which cluster formation is based. PIW-Uganda will accelerate cluster development, taking advantage of the existing modest surplus production and nascent rural business linkages while simultaneously introducing commercial, environmentally sustainable farming systems that increase yields and decrease production costs per unit product. Market development and productivity enhancement form complementary halves of the virtuous cycle to smallholder agriculture commercialization. PIW-Uganda seeks to resolve a long-standing issue impeding agricultural intensification in Uganda—low fertilizer use—by working with agro-input suppliers, extension services, and finance institutions to enable farmers to access and profitably apply mineral nutrient inputs in a farming systems context. To ensure long-term farmer access to markets that is responsive to dynamic conditions, PIW-Uganda will focus on formation of vibrant agribusiness clusters in the 4 targeted Eastern Uganda sunflower-producing districts. These will be formed early on in the project, as soon as participating farmers produce tradable and commercial surpluses - at a cost of production and in sufficient quantities to be competitive. The project and its beneficiaries will be attentive to early business opportunities such as linkages with agro-inputs, bulking, storage and credit which form the basis of cluster development at farmer-group level. As these clusters develop in their transactions and in their business and market sophistication, separate commodity-specific apex clusters will be formed to take advantage of higher-level business opportunities, such as linkage with large agro-processors. These apex clusters will access better prices in input and output markets as well as improve the policy and business environment. Through PIW-Uganda, project-affiliated farmers will be able to increase investments in their own well-being as well as in their agricultural enterprises. The project‘s focus on improved post-harvest handling, storage and market-linkage through its Matching Investment Fund Initiative and linkage to credit guarantees will increase the economic resilience of these farmers. Through value chain development, 4

The project may also work with medium to large scale farmers in the project‘s target areas (i. The project will focus on farmers that have access to markets and market infrastructure such as roads. While PIW-Uganda will focus on sunflower production and value-chain development in eastern Uganda.e. it will employ a systems approach to anchor this commodity in integrated cropping systems in which the primary commodity is intercropped. The project will target those farmers that possess or have access to a certain amount of land and productive assets (at least 1 Ha. business service providers (BSS) and market information. and shared household decisionmaking. 5 . will take advantage of new and expanding markets. or relayed into other crops and where possible. as the project will promote equitable access to resources and economic returns. agribusiness. completing the virtuous cycle. integrated with livestock. Particular focus will be paid on gender.agribusinesses will be developed and strengthened. and above) and therefore can accept a certain level of risk. rotated. armed with the necessary links to input suppliers. The balanced mix of commodities and markets reduces the risks of reliance on a narrow commodity base. A systems approach assures that soil fertility and profitability are enhanced throughout a cropping sequence. A lively and competitive agribusiness environment will be a strong motivator for farmers to produce a surplus. ensuring a strong pull for the marketable surpluses produced. Sunflower farmers. Kumi and Ngora) to serve as nucleus farmers.

farmers find themselves in a ‗poverty trap‘ – unable to acquire enough additional resources to break out of the cycle of poverty. Uganda has the potential to become an important food exporting country. and relying on nutrient mining to produce crops with ever-declining yields. prevailing subsistence agriculture is marked by a diversity of crops to address farmers‘ risk management strategies and dietary needs. and nutrient inputs are low. and social change. and while there are some large-scale commercial farmers. Over 90% of the poor reside in rural areas. Despite more than a decade of fundamental political. and the bulk of the raw materials used by the mainly agricultural-based industrial sector1.0 PROBLEM STATEMENT. the majority of agricultural households in Uganda lack the means and the capacities to invest in their farms. 73% of total employment. Uganda‘s input and output markets are marked by high transactions risks and costs and poor integration. 6 . As a result. as they lack skills in commercialized production technologies.2. Yet. Yields per land unit are low. providing 14% of Gross Domestic Product. Yet. Because of its agro-ecological conditions (including good soils and favorable climate) and its central position in a food-insecure region. In the context of increasing population pressure and the resulting subdivision of farms. In order to achieve this. World Bank. despite the importance of agriculture in the Ugandan economy. Additionally. costs per unit product are high. the resources and access to acquire inputs (fertilizers and quality seeds). resulting in soil degradation. agricultural growth requires a substantial increase in productivity per land unit. 85% of total export earnings.1 Overview Agriculture is the mainstay of the Ugandan economy. producing an estimated 70% of marketed produce. 65% of Uganda‘s population continues to live below $2/day. economic. farmer revenues are low. BACKGROUND AND PROJECT RATIONALE 2.6%—one of the highest in the world2. during which GDP growth averaged 7%. a liberalized economy and more recently peace in the north. and links to markets to sell surplus production. agricultural intensification has to go hand-in-hand with agricultural sector development and 1 2 Data 2010. However. limiting farmer access. in which the a country has achieved macroeconomic stability. Compounding this situation is Uganda‘s population growth rate of 3. smallholder producers using low input/low output subsistence farming dominate Uganda‘s agriculture sector. Ibid. overall yields have remained unchanged over the past decade and are far below their potential when compared to the gains made in Asia from the Green Revolution.

 Promote access to markets and market information.2 Problem Statement and Justification From PIW-Uganda’s M&E reports. sweet potatoes & sorghum.3 Agriculture Input and Output Markets Data from the Uganda Bureau of Statistics (UBOS) show that in 2006 only 1% of Ugandan farmers used inorganic fertilizers. millet. The resulting improvements in local economic dynamics are also necessary to create non-farm employment for the growing non. Sunflower is a major vegetable oil seed and income crop grown in Uganda besides groundnuts. Uganda currently uses an average of 3. Interventions have not addressed bulk production. While the Abuja Declaration on Fertilizer for an African Green Revolution recognizes that increased fertilizer use is essential to increasing yields and reversing soil fertility decline in the face of rising population and set a goal of 50 kg/ha fertilizer by 2015. it is reported that the productivity.  Sensitize the farmers on gender issues in sunflower oil seed production enterprise. Farmers have to become part of solid agribusiness networks through which they can sell surplus crops and invest in their farms. and replace it with a virtuous cycle in which productivity gains sold into remunerative markets allow farmers to reinvest in their farms for sustained increases in income. The potential of the youth also remains substantially untapped. maize. Through this they will permanently exit the poverty trap.  Support local savings mobilization and entrepreneurship. value addition and marketing issues. 2. soya beans.or semi-agricultural population. In addition. the reports recognize that women smallholders face particular constraints in accessing benefits of their agricultural efforts and as a result they remain under the dominance of their male counterparts.4kg/ha — 7 . Through this project PIW-Uganda hopes to: Support farmers‘ group development to increase sunflower productivity and generate enough surplus for market. 6% used improved seeds and 7% used manure.  Provide extension services and demonstration sites to the targeted farmer groups to improve their knowledge and adoption of technology in sunflower enterprise. the full potential of the farmers has not yet been fully exploited beyond being food secure. however. The crop is grown by almost all households but in small unviable quantities.market integration at all levels. household food security and income of a large proportion of the targeted farmers could be substantially higher. 3% used pesticides. 2. cassava.

Due to a generally favorable climate and good inherent soil fertility. and cotton yarn. Limited storage and marketing infrastructure results in unstable prices. The situation is compounded in Uganda due to its land-locked status. cotton. Uganda‘s agro-input dealer network is nascent and is still expanding its reach into rural areas while addressing the twin problems of counterfeits and appropriate (smaller) packaging for smallholder farmers. Low usage is compounded by poor access. such as roasted coffee. and failure to replace nutrients removed by crops has led to nutrient mining and soil degradation. to the DRC through Mpondwe and to a lesser extent to Tanzania and Rwanda. fruit juices. primarily to South Sudan through Oraba and Nimule. and nontraditional crops such as vanilla. Uganda is promoting value-added exports. and often farm in mixed cropping systems.one of the lowest rates in Africa3. edible oils. Uganda has vibrant cross-border sales of produce. Farmers are often unaware of the quantity and type of fertilizer to apply to their various crops. “The Informal Cross Border Trade Survey Report 2009 and 2010”. Ugandan farmers have grown accustomed to farming without fertilizers or improved seeds. As a net agricultural exporter. marketing. to Kenya through Busia. sugarcane. Large-scale agro-processing in Uganda is dominated by cash crops such tea. World Bank Data. hygiene. With fertilizer costs high and farmer demand low. Kenya and DRC4. Agricultural processing is starting to develop in the processing and packaging of coffee. palm oil processing. Poor post-harvest handling leads to losses of about 30%. coffee. While accurate data is hard to come by. Bank of Uganda and Uganda Bureau of Statistics. distribution and limited capital. and tobacco. Beyond this however. forcing farmers to sell cheaply. The marketing system for the large majority of crops (with the exception of export crops such as high-value horticulture and coffee) is rudimentary. tropical fruits. the processing sector is dominated by local small-scale processing which suffers from poor packaging. 3 2008 average. Most inputs are trucked overland from Kenya via the Mombasa Port. 4 8 . yields of almost all major commodities are well below their potential. As a result. June 2011. particularly in remote areas. increasing costs. and through increased coordination of the private sector through the East African Grain Council (EAGC). Most industries in Uganda depend heavily on agriculture for raw material inputs. analysis of informal trade by UBOS indicates that Uganda continues to be a net exporter to her neighbors in agricultural commodities with the leading destination for agricultural exports being South Sudan. Cereal grain markets are beginning to see some formalization through the introduction of warehouse receipts systems linked by tradable receipts to the Uganda Commodity Exchange. agro-input dealers often do not stock fertilizers. which makes crop-specific fertilization difficult.

MAAIF-Uganda National Bureau of Statistics Dokolo. 4. privatization and liberalization with support from the donors have made a U-turn around in the Uganda oil seed sector. 7 Busia. Lira.8metrci tons per ha. However. while maintaining the processing capacity. For purposes of this case study. sunflower value chain has been targeted to explain its application.7% rising from 39. Kumi and Soroti 8 Kasese. Within economic development can be applied with value chain approach. Pader.2 % in eastern districts7. Of the total oil seed produced in Uganda 49.000ha to 145. Uganda had a vibrant oil seed sector up to the mid-1970s. Budaka. Bukedea. Since 1986. Sironko.9% is produced in the Northern region6. Hoima and Masindi 5 6 9 . Gulu. Sunflower is an important substitute for palm oil which gives the country an opportunity for backward integration in that increased production would lead to reduced importation of palm oil.000 MTs in 1992 5. concerted efforts in form of enabling policies by government.2. year after year yields have remained relatively low over the same period at 0. The vegetable oil seed sector is one of the seven strategic commodities selected by the Ugandan government for transforming agriculture from subsistence to commercial farming within the policy framework of the Poverty Eradication Action Plan (PEAP). despite the growing production area for sunflower. The economic turmoil and civil unrest in the 1970-80‘s brought the sector completely to its knees. Nebbi and Arua. Sunflower is the lead domestic raw material for vegetable oil with annual production of over 162. In the period 1992 to 2004. 35. they are currently imported from South Africa and Kenya by large private sector company Mukwano Co. Kitgum. including macro-economic stability and human resource development. Since Uganda is not able to produce hybrid seeds. Sunflower production supports poverty alleviation of more than 500. Tororo.4 Setting/Situational Analysis Multi stakeholder process can be applied to any situation be it economic development or any another. Oyam.000 MTs in 2006 from 31.9% Central and 10% Western8. area under sunflower grew at an average annual rate of 11. Pallisa. The oil seed sub sector directly influences livelihoods of over twelve million Ugandans mainly in North Eastern Uganda and accounts for over 70% of vegetable oil production in the country.000 ha in 2004. Sunflower is produced from both hybrid and open pollinated variety (OPVs) input seeds. Ltd.000 farming households whose livelihood directly depends.

it equally has a pool of constraints that limits its capacity to generate the desired productivity. Horn of Africa. Tractors Transportation & Storage Truck and storage owners Bulk Storage Input Supply Farm inputs – chemicals. while processing on the other hand is by all categories of small. it was noted that much as sunflower has potential to transform lives of about 12 million Uganda in its predominant producing areas. incomes and employment as explained below: 10 . Figure 1: Sunflower Value-Chain Uganda Functions Export market – East Africa. fertilizers. Loans.Sunflower production is exclusively done by small holder farmers. the EU & USA markets. Refined sunflower oil Support Consumption Local market in Uganda (oil & animal feeds) Information flow Retailer Retailing Retailer Wholesaling Unrefined oil–local market Refined oil–Local/Export Business licenses. medium and large scale processors but with varying capacities. Standards Production Small scale farmers Large scale farmers Extension services. sunflower seeds Bulk Storage Channel 1 Channel 2 During the situational and value chain analysis done by SNV. Research. Registration. credits Processing Processors Processors & Refiners Loans.

The skewed demand versus supply attracts speculators and opportunists who take advantage of limited information between the respective actors. ii. the hybrid (Pannar) and OPV (Sunfora) seeds. Pannar Hybrid seeds are better yielding per acre with higher oil content compared to sunfola. this doesn‘t provide a guarantee of actual delivery of yields by farmers to the processor. Two reason for this. Inadequate access to high yield seed: Good quality seed access is constraint number one in transforming sunflower oil seed value chain. This situation hence breeds low business ethics. OPVs on the other hand are currently being multiplied by NARO in collaboration with UOSPA. the company is not a seed dealer. Both factors imply that limited skills will compound in poor quality and low yields which translates into low incomes and low productivity. Poor input supply system and unequal power relations in the market: The good quality hybrid seeds are imported by only one company Mukwano with capacity to procure in large volumes due to the high level of financing involved. While this provides a stepping stone for potentially increased productivity. it has vested interests in tagging seed access to own purchase of yield for their processing factory as their core business. This scenario burs the small holder farmers and small & medium scale processors to access appropriate and affordable financial 11 . Uganda uses two main types of sunflower seeds i. suitability and cost of finance: The majority of the actors in the value chain have got limited sources of financing for investment which hinders the sector growth. Access. iv. Weak producer groups: Producers groups that exist are weak and not able to effectively engage and dialogue with other actors on issues that affect them. v. this company‘s‘ structure and business model of contract farming often times at negatively skewed terms to its farmers. hence it isn‘t it core business to deal in seeds. but even still are largely urban clientele focused with limited financial products. The banking sector is emerging from comfort zone of monopoly.e. but the main challenge is that hybrid seeds are neither produced nor multiplied here hence is purely dependant on its importation from South Africa and Kenya. Lack of market information: Throughout the sunflower value chain the demand for both oil and seeds far exceeds the supply. This limited capacity hinges on two levels one on civic expression while the other lies on the knowledge and skills in agronomy and post-harvest handling.i. This situation often puts the farmers in position of inferior bargaining position. iii. which makes it hard to predict if investments in the oilseed sector eventually turn out to be profitable. Even where some farmers are engaged in contract farming with processors. besides farmers also use own retained seed although poor yielding and less oil content. lack of trust and reliability among actors in the chain. secondly.

cluster practices. middlemen or processors. but middlemen are found not to mind about quality control as their priority is making profit. There are about six different practices of bulkers existing in eastern Uganda which included the individual farmers‘ practices. As far as quantity and quality assurance is concerned. middlemen or processors.services. however lack of working capital appears to be affecting bulking since money is attached to almost all activities related to bulking. On the other hand. quality control is mostly implemented by group of farmers multiplying seeds and those on contract production.5 Bulking Practices and Challenges in the Sunflower Sub-Sector 2. 12 . group farmers. Bulking practices are however known to vary amongst different categories such as farmers. The bulker has the potential to negotiate for higher prices because of the large quantities owned. It enhances the benefits of better price and reduced transaction costs thereby bringing better incomes. produce dealers practice and millers. Consequently they resort to rely on own savings that often times is insufficient. Much as quality is crucial in marketing of Agricultural produce. 30% of farmers are found to use telephone to seek market information form produce dealers and millers and a few go personally and the rest ask from neighbours or friends to dealers to seek market price information then later share with other members. This has caused many mills in eastern Uganda to lie idle during lean periods and the farmers who are the sole producers found to have no solution over this.1 Sunflower Bulking Practices Bulking practices are mainly geared towards improving income for farmers. meeting the required quantity to satisfy the market demand still remains a big hurdle in the sunflower oilseed chain subsector. middleman practices. as far as quality is concerned. Therefore although quality is crucial but poor quality is found not have any effect on bulking since the millers always are in need of raw material. Even though millers are found to be losing out on this since they have no option to reject because of constant demand for raw material.5. However cluster practice can be strengthened into another value. 2. Individual farmers had higher transaction cost than the groups. neither the government institution nor other development partners have any immediate solution to this. The farmers‘ bulking practices quite often affect their marketing strategies as they often produce low crop volumes and end up selling immediately at harvest hence scattered marketing. it did not affect bulking since there was no premium price being offered. However some millers are known to be trying to grab the opportunity of milling other oil seed like Shea nut oil during this scarcity phase.

On the issue of transaction cost and working capital. there are varying practices according to available working capital and clustering bulking practice seems to give an upper hand to farmers since the farmers are directly linked to potential buyers and because of collective bargaining power they are able to opt for a better price and subsequent high incomes. there is little done as far as bulking is concerned.2 Sunflower Bulking Challenges The most common challenges to bulking are lack of appropriate storage facilities. Therefore there is need to for PIW-Uganda. friends. The institutional which is most operational on the ground is Uganda Oil Seed Processors Association (UOSPA) trying to promote bulking by linking up farmers groups with potential buyer. With farmers groups‘ revolving fund is the main source of capital. lack of working capital These challenges are found to be interlink as such one challenge leads to another In terms of institutional support.5. Farmers and middlemen are generally reluctant to acquiring loans from the bank because of high interest rates charged and so often resort to working as hired labour in order to source for capital. The common source of working capital is mostly from family. development partners and all concerned to strengthen cluster practice for a sustainable production of sunflower raw material which consequently promotes farmers to better income position in eastern Uganda. lack of transport. 2. 2. processing and marketing The increased production and improved marketing of sunflower oil offers several opportunities at the different levels of the value chain:  Sunflower grains are produced by many small farmers in the Northern and Eastern Uganda. the noticeable trend is that farmers bulking individually have higher transaction cost than the middlemen.6 Opportunities in Sunflower Seed Production. contract farming on though side of farmers. inability to meet required volume set by potential buyers. 13 . misunderstanding and lack of trust among chain actors. Therefore in conclusion. Increased production creates a substantial opportunity for increased income and improved welfare of small farmers. and own capital. The Vegetable Oil Development Project VODP project through the department of production and marketing are more in involved in extension and research in breed sunflower varieties.

14 . Sunflower oil is excellent for human production as it is low in cholesterol.   Sunflower oil is relatively easy to produce (at least raw sunflower oil) with a small investment into machinery. As specialty sunflower oils with high mineral content fetch extra premium prices. Increased production of sunflower oil reduces the dependency of vegetable oil imports and improves therefore the foreign currency situation for Uganda. Oil production constitutes therefore an opportunity for small oil processors. it might be worthwhile to further explore this opportunity.

3 Farmers in eastern Uganda decrease postharvest losses and improve post-harvest quality at farm level 2.3 ABC actors in eastern Uganda develop sustainable relationships with large national. East Africa regional and international agribusinesses 2. and increase food security for the wider East Africa and Great Lakes Region.2 ABC actors in eastern Uganda undertake value adding activities and diversify their products 2. 2. An overview of PIW-Uganda’s technical approach is summarized in Table 1 below and reviewed in more detail in this section. storage.4 ABC actors in eastern Uganda adapt to and lobby for reforms in the business environment 3.2 Farmers in eastern Uganda utilize quality agro-inputs. Smallholder farmers improve production.2 Objective 1: Smallholder farmers in Eastern Uganda improve production.1 Farmers in eastern Uganda sustainably increase yields and decrease production costs for sunflower seed 1.0 PROPOSED INTERVENTIONS 3. Agribusiness clusters (ABC) create value by productivity and quality in sunflower cropping selling into national. savings and credit 1. productivity and quality in sunflower cropping systems (Production Push) The production push will focus on increased smallholder productivity through yield improvements and productivity cost reduction of sunflower in eastern Uganda. resulting in marketable surpluses that raise farm incomes in eastern Uganda. technical advice. This will be achieved by creating. demonstrating and disseminating Commercialized 15 . regional and international systems in eastern Uganda markets and agribusinesses Project Outputs: 1.1 Overview Each of the PIW-Uganda’s two objectives (Production Push and Market Pull) will be achieved through outputs that in turn drive specific project activities. Table 1: Objectives and Outputs of PIW-Uganda Project Goal: To sustainably commercialize smallholder sunflower production and value-chain in eastern Uganda through improved productivity and market development.3. Project Objectives: Production Push Market Pull 1.1 ABC actors in eastern Uganda undertake joint purchasing. and selling power 2.

Output 1. professional farmers can make solid gains essential to the commercialization of smallholder agriculture. Farmers however do not farm value chains—rather they farm systems involving several commodities. There are many uncertainties in the projection. Farming families will be trained on the optimal allocation of their harvest for home-use and sale to ensure that the family‘s nutritional needs are met. Farmers sustainably increase yields and decrease production costs.1 – Farmers sustainably increase yields and decrease production costs With CSFS. working along a value chain entails operating along a single commodity to improve profitability and competitiveness of the whole chain and its actors. seasonality of 16 . The basic premise is farmers need to produce large surpluses at reduced productivity costs for identified markets. It is the system that must be commercialized—not a single commodity within the system – and this systems approach is a key element of CSFS. in which complementary crops are intercropped or rotated with the primary commodity. regional or global. Value chain development is thus situated in the context of farming systems and livelihood perspectives. national. Projections do not account for crops that will be grown in rotation or association in farming systems with these commodities. Farmers must have profitable market outlets in order to have the means and motivation to invest in their farms and soils. technical advice. This objective is comprised of three outputs: 1.Sustainable Farming Systems (CSFSs) and from improved post-harvest handling that reduces losses and improves product quality. though these will also be monitored. With significant increases in yields through improved farming practices. Farmers decrease post-harvest losses and improve post-harvest quality at farm level. 3. Farmers utilize quality agro-inputs. 2. farming households in eastern Uganda will have sufficient quantities of the project‘s respective sunflower commodity for both their own consumption and as for sale as a cash crop. savings and credit. CSFS focuses on cropping systems that will be established around the target commodities. Projected numbers of beneficiary households and increases in marketable surpluses in terms of cereal equivalents are shown in Table 2 below. Thus by definition. including climatic unpredictability. Value chains encompass the full range of activities and services required to bring a product or service from its conception to sale in its final markets—whether local.

000 2 0.5 8. from trained and certified agro-input dealers.000 beneficiary households and some 27. and pest and disease outbreaks. technical advice. and BSSs.160 4.640 Output 1. It is likely that achievement of these projections will not be as smooth as is represented.70 400 1. and is at the core of CSFS. extension officers. seed and fertilizer availability.2 16. Without efficient use of improved inputs.000 560 2. Overall. sustained productivity increases accompanied by decreases in the unit cost of production are not possible.360 8.000 1.400 8. and by the end of the project.000 1. Extension advice will come from a variety of sources: initially from the project‘s own agronomists. and as linkages are formed.200 6.680 10.2 – Farmers utilize quality agro-inputs.8 0.production. Table 2: Projected project impact for Sunflower CURRENT PRODUCTION # of households Hectares in production Average yield/ha PROJECTED ADOPTION Projected households affected by end of project Projected yield/ha Projected yield increase/ha Average ha cropped/household/year (2 seasons) Projected ha affected by 2016 Cereal equivalents/yield ratio Ha affected by season 2014 second season 2015 first season 2015 second season 2016 first season 2016 second season Additional cereal equivalents produced per season 2014 second season 2015 first season 2015 second season 2016 first season 2016 second season Total cereal equivalents 50. savings and credit Access to and utilization of improved inputs including quality seed and fertilizers is essential to commercializing smallholder agriculture.000 metric tons of marketable surpluses will be achieved.600 3. 17 . At the farmer group level.000 19. A key element of this output will be timely access to technical and financial advice.880 26. the projections are conservative and achievable. the objectives of 16. PIW-Uganda will link farmers in eastern Uganda to village savings and loan associations as ways of facilitating savings and credit.

Starting with farmlevel business transactions. and PIW-Uganda’s together with appropriate extension support will play a key role in farmers‘ ability to improve product quality. A market appraisal and value 18 .is essential. PIW-Uganda. so that each cropping system is ultimately represented by an one cluster at the highest level. as explained in more detail below.g. and market development. financial institutions (e. PIW-Uganda will catalyze the development and out-scaling of functional and dynamic agribusiness clusters in its areas of operation in eastern Uganda. As such. supporters and enablers collaborate to seize business opportunities. 3. as individuals. agro-input dealers. to access funds on a matching basis for procurement of equipment. The establishment of supplier-buyer relations with agribusiness of all sizes from small local processors to large national and multinational enterprises . or associations. Improved PHH is also a precondition for improved storage necessary for inventory credit and warehouse receipt systems. improving post-harvest handling (PHH) contributes substantially to increased tradable surpluses. will enable farmers. both in terms of the number of farmers involved as well as the diversity of partners and markets. traders and processors.3 – Farmers decrease post-harvest losses and improve post-harvest quality at farm level With post-harvest losses estimated at 10-30% for sunflower. Farmer-group clusters will come together to form commodity-specific apex clusters. the project will facilitate the process of cluster formation through the provision of hands-on advisory services. Agribusiness clusters will evolve over time as the needs of the actors and their surplus production increases through agricultural intensification. To achieve this. in which value chain operators. PHH techniques and equipment vary by cropping system. Remunerative market channels are an important precondition for farmers to invest in agricultural intensification. SACCOs and other savings and credit organizations). such as access to improved inputs and access to local market and credit. public and private business support service providers (including extension services). product development and diversification. as these provide important market opportunities and ‗pull‘ for the development of viable agribusiness clusters. groups. Starting off with a nucleus of promising farmers organized in a group or cooperative. Typically these include producer organizations.3 Objective 2: Agribusiness clusters create value by selling into national East Africa regional and international markets and agribusinesses (Market Pull) Market pull is the starting point for sunflower value chain development.Output 1. PIW-Uganda will concentrate on the processing of primary sunflower produce. the clusters will evolve as their business transactions mature.

etc. seed. communication and capacity development. seeds. and will make sure that clusters have access to the project’s technical experts in the fields of business development. At the end of the project. On the supply side. credit. An Agribusiness Coach will cover between 1 and 10 clusters – depending on size. it is important that clusters act as diverse networks and not single-purpose value chains. in which the goals of the cluster will be linked to concrete steps to be taken by both the cluster and the project. This process will be supported by the development of an ABC development plan. or the champion identified locally. and the number of farmers involved in clusters. the project‘s role is to assure that the ownership of the cluster really lies with the actors. these Agribusiness Coaches will be well established local consultants. It is assumed that market pull can accelerate growth in terms of area and productivity per farmer. To initiate the process of cluster development. project partners and staff will be trained in the ABC (Agri-Business Cluster) approach through a training of trainers (ToT). While the value-chain approach is at the heart of the project. scope. Agribusiness Coaches will be selected from either a local partner. CSFS. As clusters and their farmer members link to markets raising farmer incomes. As the project progresses in cluster formation. For the initial round of cluster formation. producer organizations. Once clusters have been formed.) who will help ABCs with identification of strong market opportunities. medium or large agro-processors. small.chain mapping will be undertaken during the project inception phase and will be used as a guide in cluster development to maintain a market development focus. traders/aggregators. An Agribusiness Coach will secure the development of a solid cluster development plan. as outlined above. fertilizer and other farm inputs will have to be available. often organized around a single ‗golden‘ opportunity which creates high risk. a key first step is the identification of the business champions in the clusters (for example. a local service provider. A more stable and resilient cluster is one in which all the cluster actors have options among 19 . Agribusiness Coaches The Agribusiness Coach will be a key player on the project acting as the primary contact between a cluster and the project. and complexity. key partner staff will serve as Agribusiness Coaches to guide the process once the potential cluster actors and champions have identified business opportunities. the clusters themselves will scale up their farmer membership to meet demand. It is essential that cluster actors organize themselves so as not to create project-dependent clusters.

certified agro-inputs is essential for commercialization of smallholder sunflower farming. and marketing support services. BSS will be engaged to help the ABCs to accelerate quality support to the agribusiness sector. ABC actors undertake joint purchasing. inputs are made available to farmers to be repaid at the end of the season using product inventory as a guarantee. and selling power 2. Bulk purchasing of agro-inputs can also be connected to inventory credit systems or warehouse receipt systems (WRSs). Where available and of adequate quality. storage. while at the same time increasing the implementing capacity of the project. ABC actors adapt to and lobby for reforms in the business environment Output 2. extension material development services. financial management and marketing. East Africa regional and international agribusinesses 4. ABCs will be guided in the development of business plans with required credit linkages for bulk-purchasing of inputs at discounted prices. Storage – both as a basis for storage-based financing as well as for opportunities to profit from seasonal price fluctuations . BSSs include training institutes. In such an arrangement. capacity building and training of clusters will take place with a focus on market development. Once ABCs have sufficient demand for agro-inputs and have developed the business skills to source agroinputs directly from suppliers.input suppliers and output buyers as this allows the cluster to respond better to external shocks. and selling power Reliable and consistent access to improved. PIW-Uganda will encourage farmer access to financial institutions which offer a range of appropriate products tailored to agriculture – contract farming.1 – ABC actors undertake joint purchasing. A 20 . ABC actors develop sustainable relationships with large national. Business Support Services (BSS) are a key element of capacity building.is essential for improved market access. Based on the individual cluster action plans and needs and training assessment outlined in these plans. Activities include access to market information and business skills trainings on record-keeping. The ILO‘s skills training program can be used to upgrade the skills of BSSs where gaps in geographic coverage or technical areas are identified. ABC actors undertake value adding activities and diversify their products 3. forward contracts. farming as a business. agricultural insurance etc. storage. To achieve this. This objective is comprised of four outputs: 1.

3 – ABC actors develop sustainable relationships with large national. cosmetics and soaps and in the development of bio-diesel. PIW-Uganda will initiate the development of apex clusters. The East African Grain Council can provide technical assistance to clusters in establishing robust WRS. etc. national. quality control. Innovation grants to cluster actors will allow them to test markets and products. inputs and extension support either on credit or factored into the final contract price. sorting and grading and packaging—and diversifying their products. PIW-Uganda will support both cooperatives and financial institutions to start up additional inventory credit programs in the project region. PIW-Uganda will also assist cluster actors with market access requirements such as packaging. and also further allow processors and farmer groups to obtain matching funds for processing equipment.2 – ABC actors undertake value adding activities and diversify their products As clusters mature.particular focus will be the introduction of the inventory credit system and more sophisticated warehouse receipt systems. they will be facilitated in developing value adding activities— including processing. plastics. Multiple opportunities exist in all commodities and cropping systems. varnishes. agrochemicals. East Africa regional and international agribusinesses With market pull at the core of PIW-Uganda. and ‗pull‘ agribusiness cluster formation in response to demand. In sunflower. certification. As the lower-level agribusiness clusters develop in the complexity of their business transactions. and assist in promoting the projects through awareness activities (study tours of operational warehouses in collaboration). Access to credit guarantees already established by the aBi Trust in Uganda in collaboration with 8 banks will also be facilitated. Cluster actors and PIW-Uganda will examine the supply chain strategies of key SMEs and large national and multi-national companies to identify ‗lead firms‘ able to drive targeted value chains. animal feed cake. Apex 21 . opportunities include processing and packaging for sunflower oil. Output 2. Output 2. The contracts themselves can be used by the cluster actors as collateral to access credit. regional and global demand for sunflower or its products has the potential to provide large markets. Additionally. Such partners provide significant guaranteed markets at fixed/predictable prices and terms of payment that can encourage professional discipline in SMEs and smallholder farmers due to their insistence on quality and volumes. large agribusinesses will often enter into contract farming arrangements. and production of raw material for the manufacture of paints. providing embedded services such as planting material.

traders. or linking with a district-level processor.clusters will form to seize opportunities at national and East Africa regional level. Depending on the number of smallholder farmers and clusters. finance institutions. an intermediate level such as cooperative-level clusters (comprising of several farmer groups) may form to seize business opportunities such as bulkpurchasing of inputs. Apex clusters will form as the need arises. government and input suppliers provides significant economies of scale and strengthens the bargaining position of primary producers. Apex clusters will resemble lower-level clusters in their structure. Having one platform at the highest level representing large numbers of smallholder farmers to engage with agribusinesses. typically once lower-level clusters have significant production volumes to be attractive to large agribusinesses or earlier if large agribusinesses are keen to engage large numbers of farmers for contract farming. research organizations. with representatives from individual farmer groups attending. together with other stakeholders such as input suppliers. and government representatives at district and national levels. as summarized in the table below. 22 . particularly to access input and output markets and to influence the policy environment.

Banks. SACCOs  Value adding activities e.4 – ABC actors adapt to and lobby for reforms in the business environment To ensure sustainability. it is critical that clusters are dynamic in their response to changes in the business environment. banks. Ugandan Commodity Exchange  Market-linkage with national agribusinesses  Linkage with national banks. ABCs will be exposed to risk. broker  Local processors  Local BSSs  Local MFI. brokers  National. SACCOs Apex Clusters  Farmer representatives from lower-level clusters  National agro-dealers/importers  National traders. Examples to changes in the business environment include changes in consumer preferences. credit guarantees  Policy advocacy at national level Frequency meeting of  Monthly / as needed Example  Focus on multiple commodities.Table 3: Characteristics of Low-Level Clusters and Apex Clusters Characteristics Low-Level Clusters Affiliation  Individual Farmers  Local agro-dealer. At the same time it is important for clusters to seek a diverse range of buyers for their products (and/or suppliers for their agro-inputs) to reduce risk and dependence on single suppliers/buyers. and risk management will be an important factor to create resilient clusters. care will be taken to ensure that the ownership of the relationship remains with the cluster actors to ensure long-term sustainability of the clusters. regional and international agriprocessors  WRS managers  National BSSs  EAGC (East African Grain Council). changes in 23 . bagging As the project works with clusters to identify opportunities. Output 2. while at the same time advocating for reforms in the business environment that address key agribusiness constraints. Opportunities depending on what farmers grow  Linkage to agro-input shop  Improved post-harvest handling & storage  Market linkage to local traders  Credit linkage through local MFIs.g. Ugandan Commodity Exchange and other relevant stakeholders  Institutions/Research organizations  Provincial/national government  Quarterly / as needed  Focus on a single commodity  Source inputs directly from importers or suppliers  Linkage with WRS. stockists  Local trader. milling. changes in prices for agro-inputs and outputs.

Some policy issues at this level involve significant effort and time to bring about change in the business environment. and having the skills. Here. products or markets. competitive intelligence. and to develop risk mitigation strategies to respond to change. PIW-Uganda will work with clusters to build these skills. Business management skills. financial resources and assets to respond to change. etc. While many locallevel issues can be addressed with local authorities. buyers/market channels. These issues will be brought to the attention of national stakeholder networks to continue the advocacy process. tariffs and taxes. the participation of government at provincial or national level or of research institutes and other national-level stakeholders is critical to address constraints. Policy issues and constraints encountered by clusters form the starting point for engaging with government to improve the business environment. value-adding opportunities. 24 . The ability to respond to external shocks is dependent on having access to timely information about fluctuations. One of the ultimate strategies to respond to changes is to innovate and the project will support innovation through its innovation grants. and may be beyond the scope of either the individual clusters or the project. These grants will support new innovations in input and output markets such as developing and testing new value addition opportunities. information and risk management receive specific attention. Each situation will require a response that static clusters are unlikely to withstand. and buyers/agribusinesses exiting or entering the market. issues that cannot be resolved at that level will be filtered upwards to the apex clusters.interest rates. having alternate options (other crops.).

2 Effectiveness This projected is expected to be remarkably effective. high relevance to the private sector (indirectly in that of traditional oilseeds like sunflower).4. and high relevance to the needs of the rural poor (especially in the poorer. Successful project implementation will raise the political and economic profile of the sunflower oil subsector and promote knowledge synergies between the various sub-projects. processing and milling by other actors. more encouragement of private seed suppliers. 4. and a more sustained and deepened extension effort in the subsequent years.000 households and the increase in the area planted with sunflower will be spectacular (with at least 27. These achievements will even be amplified with greater with more applied research on soil fertility and new sunflower varieties.0 PROJECT RELEVANCE AND EFFECTIVENESS 4.1 Relevance The project has high policy relevance to the Government of Uganda and IFAD. The project will realize significant achievements in all its outputs and it will have a catalytic role in encouraging oilseed production.000 metric tons of raw sunflower seed crop to be produced). The number of beneficiaries in the target area of Kumi and Ngora districts is targeted to be upwards of 16. 25 . war-torn northern and eastern regions).

000 male youth and 3. 4. 5.4 Contribution towards aBi Trust M&E Targets (Project Year 1) 1. 600 casual jobs created.000 farmers (1. 5. Increased savings by members from a minimum of 500/= to 2. 2. thereby improving overall market efficiency and linkage.000 male youth and 3. and rural poverty reduction. 2.000 farmers (1. 5. Farmers will be able to add to their household and farm assets and invest in human capital. 2.000 women.000 women.000 female youth) from 20% to 60%.0 EXPECTED RURAL POVERTY IMPACT 5. 2.000/= per week. The macro-analysis shows that there will be a general increase in sunflower production during the project period and an increase in household consumption of cooking oil.000 female youth) trained in joint planning. Increased food security for 8.000 sunflower farmers trained in PHH technologies by Dec 2014 (end of First Year of Project). Environmental impacts are negligible in the short run.000 sunflower farmers (1. storage and group marketing. Agricultural production and food security will improve substantially and their capacity to manage their own economic affairs will improve through farmer organization. 2. Functional 320 farmer groups (FFS) engaged in and coordinating collective production post-harvest.2 Goal level Impacts The goals of the project are to increase: national production of vegetable oil crops (sunflower in particular).1 Project-level Impacts The PIW-Uganda Eastern Uganda sunflower value-chain development project will have substantial rural poverty impacts on all the impact domains. 3. The various implementing partners will be able to give vegetable oil crops higher priority.3 Quantitative Impact Assessment (Project Year 1) 1.000 men and 2. import substitution of vegetable oils.000 female youth) from 30% to 60%. sharing of household activities 26 .000 men and 2. 8. particularly in the target districts of Kumi and Ngora.000 smallholder farmers from 320 groups trained in sunflower yieldenhancing technologies by Dec 2014 (end of First Year of Project). Other actors in the sunflower value chain will benefit indirectly. 3. domestic vegetable oil consumption.000 men and 2.5. 5. 4.000 male youth and 3. 4. Increased income for 8.000 women.

5 Project Beneficiaries Table 4: Project Beneficiaries by Gender and Age Group Adults Youth Male 1.000 27 . 5. 6. At least 3 trade linkages formed and strengthened.000 2.000 TOTAL 3.000 8.000 Female 2. At least 75% of the Sunflower farmers able to produce and bulk 4.000 5. Increase in yield of sunflower from 480 kgs to 800 kgs/acre of sunflower seeds.800 MT of high quality Sunflower per season and market it at a premium price by Dec 2014 (end of First Year of Project). 7. At least 320 one-acre Sunflower demonstration sites established by Dec 2014 (end of First Year of Project).000 TOTAL 3.000 3. 5.000 5. and benefits from sunflower production by Dec 2014 (end of First Year of Project).4.

6. further up scaling will be in the hands of the private sector. farmer extension and cottage processing. Nevertheless. which will ensure a continuing demand for the product at reasonable levels of profitability for all stakeholders. Trained PIW-Uganda project staff will continue mainstreaming gender in their work within the organization. although some weaknesses are likely to remain. Farmers will be able acquire capacity for bulk commercial production and gain access to better markets for higher prices that will accentuate their interest in doing sunflower farming as a sustainable agri-business enterprise. A particular innovation will be the incorporation of a component on the development of food standards. These efficiencies will improve during the project period. Also novel – at least to Uganda – will be the situating these activities within a more integrated subsectoral approach. More farmers in eastern Uganda with enhanced incomes and hence better savings that will enable them to re-invest in more sunflower production inputs and increase sunflower output. declining soil fertility may threaten its sustainability. to cover a large number of districts. In the longer term. Thereafter. 6. SUSTAINABILITY STRATEGY AND EXIT 6. if not the resources. however.2 Sustainability The sustainability of the PIW-Uganda Eastern Uganda sunflower value-chain development project’s main output – sunflower production – will hinge on the efficiency of the value chain.0 INNOVATION. not least because of the increased output from farmers.1 Innovation The type of project intervention in the sunflower sub-sector will draw on tried and tested approaches to increasing agricultural production through improved seed supply.    28 . The PIW-Uganda Eastern Uganda sunflower value-chain development project’s main strength will be in replicating and scaling up the approach to a large geographical area in Eastern Uganda. sunflower production is likely to be sustainable into the medium term. Its ability to do this will primarily rest on the strategy of working through local government structures that have the mandate. Other sustainability outcomes  Continuous linkages with Local and central government agricultural support agencies – particularly NAADS for provision of specialized advice and services to the farmers.

3 Exit Sustainability and project exit will be built into the program through the development of an exit strategy and sustainability plan during the inception phase which will guide the project in its implementation. beneficiaries sufficiently value BSSs to pay for them in full. training and BSSs will be delivered over the project period. with an increased requirement for beneficiary matching contribution and decreasing provision by the project. at the start of each cluster and value chain development process. Similarly. Cluster support through capacity building. an exit strategy and sustainability plan will form part of the initial strategy agreed to by all the partners.6. 29 . so that by the end of PIW-Uganda.

timed to coincide with work plan development and/or review cycles of the two projects. The system must generate robust information on the direct changes resulting from its intervention. EVALUATION AND LEARNING 7.g. traders. A project log frame and a Performance Assessment Matrix will be developed during the inception phase.. BSSs. reaching beyond producers to processors. MFIs and consumers. PIW-Uganda may subcontract case studies to independent research institutes to minimize conflicts of interest. outputs and impacts for different types of project beneficiaries (at individual and organizational level). at the conclusion of which a performance monitoring and evaluation plan will be submitted that finalizes the conceptual framework and indicators. analysis and reporting systems. The system will use a comprehensive range of value chain indicators. such as the extent to which the project supports core capabilities at cluster and chain levels. setting targets and specifying data collection. as well as best practices from the development sector and its own experience. clusters. Methodological rigour. and validate the relationship between those changes and food security. It must also generate useful information for project decisionmaking within the practical limits of project resources. The system will balance credibility with practicality to achieve plausible attribution of project impact. each year PIW-Uganda will organize a series of case studies to analyze in more depth issues. It must credibly demonstrate the project‘s contribution to value chain development. Based on the similar approach and goals of previous project interventions in the Traditional Oilseeds Sub Sector projects in Uganda by international agencies and government programmes. They will also hold 1-2 joint meetings per year. and how these impact upon rural livelihoods and food security. Learning. and commodity value chains. PIW-Uganda will reach out to these agencies/organizations to share technical staff to enable learning and crosspollination of ideas. multiplier effects).0 PERFORMANCE MONITORING. The characteristics of the proposed system are: A clear conceptual framework linking activities.7.1 PIW-Uganda Monitoring and Evaluation System PIW-Uganda will to build upon the lessons from previous project interventions in the Traditional Oilseeds Sub Sector by international agencies like IFAD. how these capabilities contribute to change within and beyond the targeted cluster and chain (e. In addition. 30 .

the media to be used (written. tailored to different audiences including policy makers. 7. the following reports will be submitted: 1. 2017). 2. Budget and forecast requests to be submitted semi-annually (in December and June). the donor and the development sector. business and trade organizations. the outreach to different audiences. television. to include the budget request for operating funds for the coming 6 months and a forecast for the following 6 month period. 2016. inform and connect people that support the project‘s goal and objectives. 31 . 5. internet and mobile technology (SMS).3 Reporting Based on discussions with the donor. Progress reports both narrative and financial due by the end of March for the previous calendar year. which will be developed during the inception phase.7. print. Annual reports submitted at the end of January for the coming calendar year (2015. Inception report and first annual work plan to be submitted at the end of January 2014 for the first full calendar year. Audit reports due together with the progress reports by the end of March for the previous calendar year. The communication strategy. audiovisual and online materials) and the distribution frequency. 3. Communication will document and share experiences and lessons learned. Final project report due three months following the end of the project. will provide a framework that brings together the messages. network of development professionals. 6. farmers‘ organizations. through a variety of media including radio. 4.2 Communication Communication aims to sensitize.

All project staff. youth need to be involved in agricultural commercialization and agribusinesses. and to meet the requirements of the project sponsor. and crop protection products so that smallholder farmers can commercialize their farming systems. in roles and responsibilities in community organization. farming and marketing. soil stabilization through the planting of trees and fodder grasses will be advocated. while at the same time improving soil health. The case studies will pay attention to these issues as well. sound soil organic matter management. Experience has shown the importance of paying attention to these two groups in the division of labor on the farm.2 Environment The environment is a key consideration in the project‘s methodology. 8. All project monitoring and reporting will be gender. and gender and youth will be included in the Terms of Reference for the external.and age-group disaggregated.1 Gender & Youth Gender and youth aspects will be given attention from the beginning of the project. to avoid automatically creating a male bias.8. and final evaluation of the project. 32 . and in fair access to project benefits. All program activities and their impacts will be designed to be environmentally-sustainable By its very nature. partners and stakeholders will be sensitized to environmental issues. Project staff will also be sensitized to give both issues proactive attention. An environmental assessment will be undertaken during the inception phase as part of the project‘s value chain analyses. starting with the inception phase during which gender and youth will be a key point of analysis in the value chain studies. beneficiaries. Project activities will be designed to involve all family members in all agricultural activities including planning. advocating synergies of mineral nutrients. Additionally. Particularly given Uganda‘s high population growth rate. mid-term. CSFS is designed to be environmentally sustainable.0 CROSS-CUTTING THEMES 8.

the supply of which. Burundi. similar events are anticipated. This risk can be within Uganda itself or in neighboring countries.9. 33 . Additional risks come from plant disease pandemics and climatic uncertainty (both droughts and floods) and the resultant secondary social. With the roll-out of PIW-Uganda. the largest implementation risk recognized by the project is the dynamic resulting from successful increases in agricultural productivity and income. Apart from contextual risks. farmers using access to credit to buy and store other farmers‘ harvest to further increase their profits. a new social dynamic is introduced to societies. if disrupted. could negatively impact implementation. price controls. With thousands of farmers producing marketable surpluses. This may result in land consolidation (successful farmers buying land from less successful farmers. and will put in place appropriate mitigation measures. Kenya is the major corridor for fuel and fertilizers. DRC. Unrest in South Sudan. market unfriendly policies. rent-seeking and favoritism. free distribution of inputs. many of whom become ‗laborers‘). and farmers producing large surpluses that drive commodity prices down. economic and political effects.0 RISK ANALYSIS PIW-Uganda considers the risk of political insecurity (particularly during elections) to be the largest risk factor. or Rwanda could badly affect regional markets. While structural solutions to these problems are largely beyond the scope of the project and PIW-Uganda will monitor the situation if these risks unfold. to the detriment of inefficient producers. A further risk is political interference in agricultural markets through subsidies.

10. Training on PHH. Business skills development for 160 groups Training in VSLA methodology and facilitation for 320 with saving kits Conduct a ToT for Community Gender facilitators for 3 days in Gender. Data entry & Analysis Train 320 farmer field schools groups (25 members each) in group dynamics. Record Keeping. enterprise development and contract farming Procurement of sunflower improved seed & other farm inputs and distribute them to the 320 groups & establishment of gardens Hold trainings on Gender Mainstreaming and Human Rights Couple training for 320 Groups on Gender Mainstreaming and Human Rights for one Day per Group On-site Training for 320 groups on ground nuts Agronomy. Human Rights. Record Keeping . Joint Planning. VSLA Facilitation for Community Gender Facilitators Facilitate market linkages and collect market information Hold annual feedback review workshop. and marketing for 320 groups Training on entrepreneurship.0 WORK PLAN – YEAR ONE Q1 Q2 Q3 Q4 ACTIVITY Conduct a Base line Survey. disease and pest control for increased production. counseling Pooling/Bulking . Pooling/Bulking. good practices sharing and production documentation (50 participants per workshop) Conduct Radio Talk Show Program for Sensitization on 34 .

motor cycle and recruitment of Gender Officer & Agriculture Officer Insurance Development of a Gender Policy for PIW Monitoring and Evaluation of Project Activities Contribution to Staff salaries and rent 35 .Gender Issues and Human Rights Development of IEC materials Procurement of computer.

181.000 30.000 3.668.840.187.000 ACTIVITY Conduct a Base line Survey. enterprise development and contract farming Procurement of sunflower improved seed & other farm inputs and distribute them to the 320 Groups & establishment of gardens Hold trainings on Gender Mainstreaming and Human Rights Couple training for 320 Groups on Gender Mainstreaming and Human Rights for one Day per Group Training for 320 groups on sunflower agronomy.628.400.000 25.000 3. Good practices sharing and production documentation (50 participants per workshop) Conduct Radio Talk Show Program for Sensitization on Gender Issues and Human Rights Development of IEC materials 36 352.548.000 11. Data entry & Analysis Train 320 farmer field schools groups (25 members each) in group dynamics. Record Keeping .000 0 2.600.800 38. and marketing for 320 groups Training on entrepreneurship .488.600.11.181.600 41.640.000 .132.960. joint planning.000 78.360.928.560.200 29.800 13.000 1. Pooling/Bulking.400.000 aBi Trust Contribution (USHS) 56.000 31.440.000 14. disease and pest control for increased production.132.000 3.800 5.240.800 5.000 3.600.800 79.000.360. Record Keeping.000 11.200 25.360.000 10.000 0 0 0 0 13.000 11.800 19. counseling Pooling/Bulking .600 38.000 3.000 Total Contribution (USHS) 56.756.360.000 127.000 5.120. Training on PHH.0 PROJECT BUDGET SUMMARY (YEAR ONE) PIW Contribution (USHS) 0 0 48.360.840.000.840.000 3.788. Business skills development for 320 groups Training in VSLA methodology and Facilitation for 320 with saving kits Conduct a ToT for Community Gender facilitators for 3 days in Gender.835.000 31.800 13.756. VSLA Facilitation for Community Gender Facilitators Facilitate market linkages and collect market information Hold Annual feedback review workshop.800 23.040. Human Rights.600.000 40.

000 597.568.000 543.Procurement of computer.600.000 84.480.032.000 37 .000 5.850.000 54.600.000 0 0 70.600.000 0 189.000 9.000 81.674.350.000 733.000 54.824.600.350.080.000 152.824.432.000 787.000 71.000 9.000 5.000 189.568.324.500. motor cycle and recruitment of Gender Officer & Agriculture officer Insurance Development of a Gender Policy for PIW Monitoring and Evaluation of project Activities Contribution to Staff Salaries and rent Total 10% Physical Contingencies by aBi Trust GRAND TOTAL 12.

400 20. counseling Pooling/Bulking.000 11.000 11.040.000 3.400 39.187.12.181.360.000 127.600 20.000 3.360. VSLA Facilitation for Community Gender Facilitators Facilitate market linkages and collect market 31.360. disease and pest control for increased production.000.400 11.000 15.800 23.800 79.000 14.000 31.680.680.000 3. Data entry & Analysis Train 160 farmer field schools groups (25 members each) in group dynamics.814.000 7.360.200 29.000 7.040.200 7.440.360.668. enterprise development and contract farming Procurement of sunflower improved seed & other farm inputs and distribute them to the 320 groups & establishment of gardens Hold trainings on Gender Mainstreaming and Human Rights Couple training for 320 Groups on Gender Mainstreaming and Human Rights for one Day per Group Training for 320 groups on sunflower agronomy.400 39. Record Keeping.000 30.000 14.488.840. Business skills development for 320 groups Training in VSLA methodology and Facilitation for 320 with saving kits Conduct a ToT for Community Gender facilitators for 3 days in Gender.360.628.000 3.000 ACTIVITY Conduct a Base line Survey.744. and marketing for 320 groups Training on entrepreneurship.334. Human Rights. joint planning.840.000 38 7.000 11.0 FUNDS DISBURSEMENT PLAN (YEAR ONE) Q1 56.360. Training on PHH.000.334.000 Q2 Q3 Q4 TOTAL 56.744.360.187. Pooling/Bulking.181.000 15.000 . Record Keeping .360.000 41.814.600 127.

000 5.800 13.000 3.000 30.652.000 787.392.040 84.000 84.460.600.565.000 152.756.573.800 3. motor cycle and recruitment of Gender Officer & Agriculture officer Insurance Development of a Gender Policy for PIW Monitoring and Evaluation of project Activities Contribution to Staff Salaries and rent Total 10% Physical Contingencies by aBi Trust GRAND TOTAL 11.960.000 41.200 11.200 2.656.000 54.200 5.200 409.600.274.674.information Hold annual feedback review workshop.000 41.132.000 5.800 5.960 2. Good practices sharing and production documentation (50 participants per workshop) Conduct Radio Talk Show Program for Sensitization on Gender Issues and Human Rights Development of IEC materials Procurement of computer.600 6.000 90.392.283.283.850.576.200 3.229.460.392.000 2.000 9.392.633.000 733.000 9.000 41.000 27.283.283.000 379.756.032.400 7.360 97.800 151.000 121.080.600.600.640 128.324.200 3.068.000 39 .080.106.350.000 142.568.800 2.460.853.

vegetable oil imports production. 40 . sunflower oil seed and  Cottage processing of sunflower processing of high-quality oil oilseeds expanded.APPENDIX I: PROJECT LOGICAL FRAMEWORK/STRUCTURE GOALS: Long Term PURPOSE: Project and Sub. farm visits and field days.OUTPUTS: Deliverables Development Objectives Project Development Objectives  Increased local production of  Increased household cash  Supply of improved sunflower sunflower in Teso region income among smallholders by seed increased through revitalizing and increasing adaptive research and seed  Increased substitution of domestic sunflower oil multiplication. sunflower by smallholder (i.  Promote cottage processing using Ram press technology.000 smallholder farmers.e.  Provide extension support through demonstrations. increased ACTIVITIES  Develop new oil seed varieties through adaptive research.  Multiply and distribute sunflower oil seeds to 8.  Mobilize farmer groups through DAOs. farmer field schools (FFS) trainings. Kumi and Ngora districts) farming groups in target area  Sub-objective: Production of increased. in partnership with  Production and yields of  Poverty reduced in project areas PIW-Uganda.

APPENDIX II: PROJECTED PROFITABILITY ANALYSIS FOR SUNFLOWER FARMERS IN TESO REGION UNDER THE PIW-UGANDA PROJECT ACTIVITY Expense Account (USHS)** Average yield per acre (kg) 720 Farm gate price per kg .000 Framers’ own milling Transport to mill Milling charges 28.000 2nd Ploughing 40.000 nd 2 Bird scaring Bird scaring 15.400 Total production/milling costs 258.grain 500 Mill gate price (oil) 4.000 Harvesting Harvesting & threshing 12.800 Milling labour charge 57.000 Planting with DAP fertilizer _ Fertilizer DAP _ Urea _ Urea application – labour _ Weeding 1st 35.600 Sub-total (milling costs) 86.000 Seed (2 kg) Hybrid Pan 7351 (2kg) ‗Sunfola‘ _ Planting Planting without fertilizer 20.000 COSTS: Land preparation Bush clearing/slashing 10.000 Drying and cleaning Bagging materials Transport from field Total field/production costs 172.400 Milling outturn (litres) 180 41 .000 1st Ploughing 40.

000 533.000 72. 360 720.000 792.600 359 3.Cake realized Income sale of grain/oil Income sale of oil cake Total revenue Gross margin Cost of Production (per kg) Return to variable costs % Margin Tenure (Months) Annualized return ** Farmers milling their sunflower for sale of oil and oil cake.07 207% 4 620% 42 .

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