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Kezaala Andrew, Business Development Officer, JIDDECO

Boniface Kawiiso, Project Officer, JIDDECO

APRIL 2006

Table of Contents
Table of Contents ............................................................................................ ii
List of Tables and Figures ................................................................................ iii
Abbreviations and Acronyms ..................................................................... iv
Abbreviations and Acronyms ..................................................................... iv
Acknowledgements......................................................................................... v
Executive Summary ....................................................................................... vi
CHAPTER ONE: INTRODUCTION.................................................................9
1.1 Background to the study..............................................................................9
1.2 District Overview of Jinja and Bugiri Districts ............................................11
1.2.1 Iganga District.....................................................................................11
1.2.2 Bugiri District.......................................................................................11
1.3.0 Background of Traditonal local poultry ..... Error! Bookmark not defined.
1.3.1 Ojectives of the study ........................... Error! Bookmark not defined.
1.3.2 Specfic Ojectives .................................. Error! Bookmark not defined.
1.3.3 Results expected .................................. Error! Bookmark not defined.
1.4.0 Methodology............................................. Error! Bookmark not defined.
1.4.1 Study design............................................. Error! Bookmark not defined.
2.1 Local poultry sub sector analysis................. Error! Bookmark not defined.
2.2 Transaction costs and Profit margins .......... Error! Bookmark not defined.
2.3 Functions, actors and product flow............................................................28
2.4 Key actors in the supply chain...................................................................26
2.5.1 Number of actors ................................................................................26
2.5.2 Volumes..............................................................................................26
2.6 Profitability analysis and Simple Gross Margins........................................27
2.5 Constraints of local poultry production sysytems........Error! Bookmark not
2.6 Local chicken Sub sector stakeholders (their roles and functions) ............32
2.7 Local chicken Sub sector dynamics and Cross cutting Issues ......................
2.8 Gender/Youth/HIV/AIDS............................................................................34
CHAPTER THREE: VALUE CHAIN ANALYSIS .......................................35
3.1 Essence of value chain .............................................................................35
3.2 Analysis of Key elements of value chain ...................................................35
3.2.1 Economic gain ....................................................................................35
3.2.2 Governance ........................................................................................36
3.2.3 Market focused collaboration ..............................................................36
3.4 Value chain identification (mapping and relationships)..............................37
3.4.1 Value chain selection ..........................................................................37
3.4.2 Identification of Emerging Value Chain ...............................................38
3.5 Market segmentation and Market volatility ................................................39
3.6 Critical success factors..............................................................................39
3.7.1 Value chain development .......................................................................39
3.6.1 Stages of value chain development........................................................40

3.6.2 Value chain Upgrading........................................................................41

4.1 Conclusions...............................................................................................42
4.2 Recommendations ....................................................................................42
4.2.6 Proposed Roles of JIDDECO .................................................................39
4.3 Intervention programs and activities..........................................................45
Appendixes .....................................................................................................51
Annex 1: Lists of Respondents.......................... Error! Bookmark not defined.
Annex 2: Study Instruments/ Questionnaires .... Error! Bookmark not defined.

List of Tables and Figures

Table 1: Simplified Gross Margin Calculations ...................................................27
Table 2: Summary of constraints and opportunities ...........................................30
Table 3 Local chicken sub sector stake holders .................................................32

Abbreviations and Acronyms

AtM - Access to Markets

CSF - Critical Success Factors
CORDAID - Catholic Organization for Relief and Development Aid
JIDDECO - Jinja Diocesan Development Coordinating Organization
ULCFA - Uganda Local Chicken Farmers’ Association
MUCIDEO - Muterere Community Integrated Development Organization
SSS - Sub Sector Selection
SSA - Sub Sector Analysis
VCD - Value Chain Development
VCA - Value Chain Analysis
CRP - Community Resource Persons
USHS - Ugandan Shillings.
PMA - Plan for Modernisation of Agriculture.
PEAP - Poverty Eradication Action Programme.
TC - Transaction Cost
DOCs - Day Old Chicks
BLCFG - Bugoole Local Chicken Farmers Association
IAFA - Iganga Allied Fish/ Chicken Farmers Association


We would like to acknowledge the following institutions and individuals for their
distinguished contributions which made this report of great success.
First we acknowledge the administration and management of JIDDECO for planning,
organizing and facilitating the study. Most important was the transport, meals and
accommodation and allowances provided by the administration of JIDDECO. We too
acknowledge FIT Uganda, for their persistent push on the Capacity Building Plan of
Access to Market with support and technical assistance provided.

We do not forget to acknowledge the services of field officers and CRPs of JIDDECO,
local chicken keepers, market traders and service providers especially in those areas
where the study teams visited. These areas include Bukanga, Namungalwe, Bulesa and
Muterere Sub County in districts of Iganga and Bugiri respectively in Busoga region

We do not forget to acknowledge the services of Mr. Marcel of FIT Uganda for his late
technical assistance and Mr. Badru Isabirye, the driver who took us all over the area
during the time of the field work. His experience and expertise enabled us to complete
the work safely. In the same mood, we also appreciate all the local poultry keepers who
constituted our respondents for the valuable information they furnished us.

Executive Summary

The improvement of the Livelihoods of the majority of the people in Busoga continues to
pose a big challenge for all the concerned parties - governments, donors, development
organs and the target groups themselves, in spite of the impressive “economic miracles”
made over the last 10/15 years. Part of the solution to these challenge lies in the
transformation of subsistence agriculture into farming as a business for both the
“stomach” (food security) and the “pocket” (market), while building the capacity of the
target communities to sustainably render effective services to the respective

This study is one of the many activities meant to be done under the CORDAID Access to
Market (AtM) Capacity Building Plan (CBP). A phased approach was taken to the
implementation of the plan. The initial activities focused on developing the capacity of
JIDDECO at the level of its management structures and strategic positioning. Staff of
JIDDECO later received training in market development approaches. The sub sector
study is part of the initiative to kick start a market linkage facilitation role to be played by
JIDDECO. The initiative is to support and facilitate local poultry keepers to access better
paying markets for their meat and eggs and consequently raising income gains to the
local poultry keepers.

This study covered Iganga and Bugiri Districts. Prior to the field work the study team had
a brainstorming and a planning session meant to identify and map key players in the sub
sector. This was followed by 30 day subsequent field visits. The study team applied
focused group discussions and in depth interviews in the course of the field work. In-
depth interviews were also used on a study with other stake holders.

The sub sector is defined by the product and the market served by the product in
question. The team acknowledged the need to give a broader definition of the sub sector
to include all the operation areas of JIDDECO and was mainly looking at local chicken
and their eggs. As such, the sub sector was defined as Indigenous chicken for the
regional markets. Major markets here include Jinja, Kampala and Iganga towns. A sub
sector map derived plots all the players in the sub sector. Players include input suppliers

like drug stockists, key rearers, middlemen, market traders, producers, retailers and
consumers. Key input suppliers identified included Butembe feeds, Kagodo feeds,
UCLFA and local feed mixers. Producers are local poultry rearing communities in the
rural areas. Middlemen and local chicken traders come from the major towns like
Kampala, Mukono, Iganga, Busia, and Bugiri. Major markets for local chicken are the
hotels, restaurants, food markets and urban households. Local chicken also seems
easier for a family to use eggs or slaughter a chicken for eating at home than it may
prove socio-economically acceptable for goats and cattle.

Constraints facing the sub sector can be categorized into technological, market access,
regulatory and financial. Simple and rudimentary technology used in production results
in low productivity and production. There is technological innovation for local chicken
product development. Local chicken is sold in its raw form or live and not dressed hence
little prices obtained by local poultry keepers. It was also noted that most local chicken
keepers are operating as individual farmers. They are not organized in groups hence it is
difficult to deliver quality services to these scattered individual local poultry keepers.
Limited financial sources and unfavourable repayment terms is another constraint.
The presence of the high demand of local chicken and hard working rearing
communities are the opportunities prevalent in the sub sector. In some places like in
Bukanga and Bulamagi in Iganga District and Muterere in Bugiri district, local chicken
keepers are organized in groups which would make service delivery to them easier.

Among the farmer groups interviewed, decision making in the homes regarding any
production activity, local chicken rearing inclusive is jointly done by both women and
men. Both genders have equal access to production resources including land. It was
also revealed that control of revenue from sale of local chickens is mainly handled by the
men although women are reported to keep the money and acting the role of the bank for
the family. It was revealed that a number of the youth (energetic young men) are getting
involved in the production activities of the sector. Where as a majority of the youth would
prefer brisk businesses like to ride boda boda bicycles, fetching water and roasting road
side chicken in Iganga and Jinja towns.

The value chain is an important concept for understanding the generation and
distribution of returns from the various functions. Elements of value chain include

economic gains, governance and market focused collaboration. Gains that need to be
created are gains arising from financial support to local poultry keepers, especially at the
time of marketing of local chickens. The study revealed that local poultry keepers lack
access to financial support. In some cases, local poultry keepers do not know where to
access finance. As a governance function, the structure and system or organ for
information flow (concerning quality and variety of local chickens that sell) is not clearly
defined. Local poultry keepers are not well informed of what the markets want.

The sweet and tasty aroma of the chicken is a critical success factor. It was noted that
local chicken from the eastern region mainly Iganga is and some parts of Bugiri which is
tasty and good for “luwombo” traditional local dish.
It should be noted that the sub sector has a positive aspect to be developed. There is a
need to capitalize on the positive and hence device ways to turn the negatives attributes
into opportunities. Therefore there is need to squarely address these constraints that
have been identified. Interventions should be holistic enough to address constraints at
the various sub sector functions. However, a phased approach could be taken to
implement these interventions.


1.1 Background to the study

Jinja Diocesan Development Coordinating Organisations (JIDDECO):

JIDDECO is the development coordinating and facilitating agency / arm of the Diocese of
Jinja. Prior to its establishment in 1987, the Diocese was involved in development work
but the development initiatives were not necessarily systematic and planned. Such
initiatives were based on individuals, mainly expatriate priests who had access to funds
from donors.

However, through a number of restructuring processes, the organization was restructured

to be a coordinating and facilitating organization with a clear strategic direction.

JIDDECO’s Mandate, Vision, Mission and Objectives:

To facilitate and co-ordinate development activities in the Diocese of Jinja and facilitate
local communities in the Diocese to realise, exploit and harness their potential as well as
effectively utilising the resources to meet their material, social and political needs.

Vision: Just, united and self-sustaining communities within Jinja Diocese.


To work in partnership with local organisations, to strengthen the effectiveness of all

communities to utilise their resources to meet their basic and social needs.

Strategic objectives:

• To build and strengthen the relevant capacities and provide organisational support to
the local development partners to render quality services to their constituencies.
• To undertake and co-ordinate applied research, collect, analyse, compile and
disseminate date on obtaining issues that affect people’s lives.
• To fundraise and coordinate effective resource mobilisation and utilisation
• To lobby and advocate for favourable policy environment for the successful operation
of the activities of local development organisations.
• To initiate, participate in and promote collaborative and networking linkages among
local and international development actors / organisations.
Jiddeco Activities

Jiddeco is not an implementing organisation; it coordinates supports and facilitates a

number of development initiatives and this fall under two broad categories, namely;

a) Diocesan Programmes/activities:
i) Cultural Research Centre


ii) Diocesan Religious Education Programme
iii) Diocesan Catechists Development Programme
iv) Micro-projects, such as renovation of diocesan institutions, water projects
For the above mentioned, Jiddeco appraises the project proposals, forwards them to
possible partners, receives funds, disburses them to project holders monitors
implementation and makes sure that the funds are accounted for through regular progress
and financial reports.

b) Community Development Programmes:

• Women in Integral Development (WIID) programme 1994 –1996.
• Aids Prevention and Care (ACP) programme 1993 – 1995.
• Community Based Health Care (CBHC) programme.
• Awareness Educational Programme.
Prior to the integration of the various community development activities, community
activities se included the Women in Integral Development (WIID) Programme, the
Community Based Health Care (CBHC) programme and the Aids Control programme
(ACP). However as a result of the community participatory processes and training
sessions, the external evaluation evaluations of the said programmes and extensive data
collection exercises conducted, the Gender Responsive Integrated Development (GRID)
Programme frame work was born.

This study is one of the many activities meant to be done under the CORDAID Access to
Market (AtM) Capacity Building Plan (CBP). A phased approach was taken to the
implementation of the plan. The initial stages saw the training of JIDDECO staff in market
development and conducting sub sector studies. JIDDECO then organized a workshop for
sub sector identification in which the local chicken sub sector was identified as one among
many of the enterprises with potential to increase income in the hands of its poor target
population. The sub sector study is therefore a continuation of a planned process to
develop a marketing strategy for the beneficiaries from the CORDAID partners.

The aim of the study is to identify strategies, intervention and service providers that will
address the constraints as well as explore the opportunities in the local chicken sub sector
for the purpose of equitable growth that will specially enable small scale local poultry
keepers increase their incomes. The analysis covered all the sub sector players, stake
holders, and product channels. Markets and players there in are also analyzed. Volumes
of production at especially the production and marketing levels have also been analyzed.



1.2 District Overview of Iganga and Bugiri Districts

1.2.1 Iganga District:

Iganga is one of the 5 districts of Busoga region the geographical coverage of the Diocese
of Jinja. The others are Jinja, Kamuli, Bugiri and Mayuge. The total area covered by
Busoga is 17,975 square kilometres of which 8,917 are land and 9,057 is water including
the territorial waters of Lake Victoria. The area has a population of over 2.6 million people,
about 10% of the national population of whom 51% and 49% are female and male
respectively. The population growth rate is estimated at 3%, infant mortality rate being at
90 deaths per 1,000 live births and life expectancy is 43 years and 46 years from males
and females respectively. 90.7% of the population live in rural areas while 9.3% live in the
very few isolated urban centres.

Iganga district is comprised of 4 counties, 25 sub-counties with a total of 153,103

households, and a total population of 716,311. (2002 population census). The programme
is targeting a total of 6 sub-counties with a total population of 181,697, 25% of the
population. The district lies at an altitude of about 1070 and 1161 metres above sea level.
The vegetation includes savannah but the thick tropical forests have been indiscriminately
cut down. Annual rainfall ranges between 1,250 and 2200 mm with average temperature
of over 24 degrees. The main economic activities are agricultural with emphasis on finger
millet, sorghum, bananas, sweet potatoes, cassava, beans, maize coffee, cotton, rice and
simsim. Fishing is carried out on Lake Victoria. The people do keep local poultry (345,980)
cattle (110,914), goats (215,495), and sheep 13,481. Industries are limited to milling rice,
coffee processing and jaggeries for sugar canes

1.2.2 Bugiri District

The district was formerly part of Iganga district. It borders with Tororo to the North- East,
Iganga to the West and Busia to the East. The total area is approximately 5,700.93 Sq.
Km. of which 1,492.74sq km is dry land and 4,207.19 Sq. Km. is covered by water bodies.
Bugiri also extends to the Uganda/Kenya border in the South- East and in the waters of
the Uganda/Tanzania border in the south. The main languages spoken are Lusoga and
Lusamia – Lugwe. Others are Japadhola, Lugisu, Ateso and Jaluo.

Over 80% of the population are peasants. Small holder local poultry keepers total to 132.
Available land area is 1,492.74 sq km. Land area under cultivation is 426.4 sq km.
Average family land holding is 2.5 Ha. Leading cash crops are Rice, cassava, maize,
finger millet, sweet potatoes, coffee, sorghum, peas and bananas. Bugiri brims with rice


plantations both large and small. Kibimba Rice Irrigation Scheme under the Madhvani
owned Tilda Uganda Limited is the largest rice plantation in the district.

Government programs in the district include; Plan for Modernization of Agriculture (PMA),
with activities geared towards improving farm productivity and raising household incomes;
NARO/FAO Cassava multiplication program, which is working to supply the district with
cassava cuttings to set up multiplication’s garden of high yielding African Cassava Mosaic
resistant varieties and access them to local poultry keepers.




Local poultry rearing is a traditional occupation for many people especially in the
rural areas. It contributes significantly to the socio-economic and livestock sector.
The scavenging system also referred too as free-range or the traditional village system, in
which birds are free to roam around the homestead and in the neighbouring backyard
Village chicken production usually classified as a low input and low-output system
in which local chicken is left to scarevage in search of feeds. This type of chicken
production system is commonly referred to as free-range system in Uganda. The
system dominates the smallholder production system in Uganda. Chicken rearing
is a uniting factor in a household, provides manure for crops and its products (meat
and eggs) are highly nutritious. It also seems easier for a family to use eggs or
slaughter a chicken for eating at home than it may prove socio-economically
acceptable for goats and cattle. This makes chicken rearing occupy a fundamental
and unique position in the struggle for income generation and reduction or bridging
the existing protein gap among the smallholder local poultry keepers.
In Bukanga, Busanda village, chicken are reared by most of the household and on
average the visited household have 2-10 chickens at least. The chickens feed
freely as soon as the big man is out of the house at about 6-7am forthcoming the
chickens move out too, to scarevage for the day’s meal. Poultry keepers not
usually certain of the age of the chickens, thus their meat is hard. Some of the
chickens live to 1 ½ years for cocks and 10 months for hens, if not slaughtered for
a meal or some quick emergency cash. Laying hens are usually provided shelter in
a corner of the kitchen, some sleep with humans in the bedrooms. They tend to lay
20 eggs in their life span but 5-4 of the chicks grow to maturity in the hash
environment. In Bugiri, especially Muterere, eggs are usually kept as table eggs, a
household on average could have 2 cocks and 6 hens to produce a tray of 30 eggs
on a monthly basis. These eggs are delivered to the MUCIDEO offices and worth
the number the money is given out or to wait until the eggs are collected by the
Kenyan trader, who on average takes 20 trays a week. At farm gate price its cost
100/= and MUCIDEO sells at 150/= to cover administration fee and a saving is
taken off for the farmer, whose a member of the farmer group. For the chickens,
the present prevailing price in the rural areas of Iganga and Bugiri is 2500/= -


3000/= for a hen and 4000/= - 5000/= for a well bred cock with weight of 1.8 - 2.5
Traditionally chicken were kept for varied reasons including food-security and
fulfilling customary obligations. However, there is increasing recognition of
economic role of chicken in the emancipation of the rural poor from poverty. There
is also a gradual shift from subsistence poultry production to commercial poultry
production. Although the commercialisation of chicken production was observed
mainly among farmers dealing in exotic breeds, indigenous chicken are also now
beginning to be treated as a potential source of significant income inflows to rural

Some of the reasons why farmers keep local poultry?

Most families keep poultry for the following reasons:
• Chicken and sometimes the feathers are used in traditional practices for
example “kwanjula or give away” ceremony in the Buganda and the
Bwola and Haraka raka dance respectively.
• For income generation
• For cheap provision of proteins in the family diet i.e. from meat and eggs
• For manure – chicken droppings are rich in calcium and phosphorus,
which are necessary for crops.
• Local birds are cheap to keep because they require a small piece of land
and can be fed on locally available food like grass, maize and cereals
• They play an important role in crop pest management
• Chicken droppings are used as baits in fishing and act as food for fish
therefore, helping local poultry keepers with fishponds.
• Feathers can be used to make pillows, mattresses and cushions.


The purpose of this study was to provide information that would form a benchmark
for the local poultry sub sector and also identify strategies, intervention and service
providers that will address the constraints as well as explore opportunities in the
local chicken sub sector chain within the 2 districts of Busoga region i.e. Iganga
and Bugiri.

1.3.2 The specific objectives were:

1. To identify the primary actors in the local poultry supply chain, their roles
and interrelationships.


2. To identify the market channels and trends within the local poultry sub
3. To identify the constraints those hold back growth and competitiveness and
explore opportunities.
4. To design strategies and interventions that will enable the local poultry sub
sector grow and facilitate a sustainable development of the chain.
5. To develop an action plan (what, how, when and who) that is endorsed by
the stake holders and also provides tangible inputs for Jiddeco’s strategic

1.3.3 The results expected from the study are:

ƒ A sub sector report with a map, overlays (gross margins, volumes,
number of actors and service providers.
ƒ Existing government policies and guidelines on the local poultry sector
and regulation mechanisms for extension service delivery.
ƒ Existing or present local poultry data base in Busoga region and level of
technology adoption rate.
ƒ Involvement of local poultry keepers in selection and management of on-
farm research
ƒ Profitability analysis of existing enterprises including market dynamics.
ƒ Integration of gender, HIV/AIDS and social justice concerns into aspects
of the farming system.

1.4.1 Study design
The study was conducted as a descriptive survey study is mainly concerned with
finding out “what is.” The study was conducted using a participatory approach,
involving individual local poultry keepers, district and sub-county Vetinary officials,
input suppliers, traders / retailers, households, bulk buyers, consumers and private
service providers. Knowledge, experiences and contacts that are generated in the
process of the research are immediately shared with those that will take the lead in
the implementation
1.4.2 Coverage of the study


The study was to cover the 4 sub counties of 2 districts in Busoga region; Iganga
district that is Bukanga and Bulamagi, Bugiri districts that is Muterere and Bulesa.
But the 2 sub-counties in Iganga were purposively selected because of their being
initiated to local poultry through the NAADS / PMA projects. In the 2 sub-counties,
6 villages were selected out of the 16 in the 2 sub-counties. The three villages in
each sub-county were purposively selected to ensure that all the study variables
were catered for.

1.4.3 Data collection methodologies

Participatory methods were used for collecting data and information including
interviews, Focus Group Discussions (FGDs), observations through field visits and
review of different reports and documents on local poultry. Selling of local chickens
is one of the functions of keeping free-range chickens observed during surveys
and monitoring studies. The cash from sales is used to buy household needs
including food, to improve food security at household level. Some farmers; barter
their free-range local chickens for food and household items. In Bukanga, it was
noted; farmers exchanged six local chickens for one goat. Regardless of the mode
of sales, this function ranks among the top three most important roles (food,
income and socio-cultural) that are played by local chickens for the wellbeing of the
household and community.

1.4.4 Study Protocol

The farmers and markets were visited in the morning at between 8:00 and 10:00
a.m. Each farmer was visited twice during the dry season and during the wet
season. At the markets locations where live free-range chickens were sold were
identified with the help of market officials. After introductions, those rearing and
selling chickens were briefed on the purpose of the visit. These local poultry
keepers and sellers were asked questions written on a structured questionnaire.
Information collected by asking or through observation included: (i) demography of
the farmers and sellers in terms of their names, gender and education; (ii) number
of chickens each farmers and seller had to rear and for sale; (iii) sources of
chickens; (iv) selling price; (v) purchasing price; (vi) mode of transport.

After requesting permission from the stakeholders in the local chicken sub sector,
chickens were individually priced and recorded. At farmer level it costs Ushs


3500/= - 4000/= and based on interviews with middlemen and traders, the selling
price ranges between Ushs 4500/= – 6500/= for a hen and a cock ranges between
Ushs 7000/= - 10,000/= and transport costs were recorded too. Market levies were
fixed at Ushs 200/= (1 US$ = USHS 1,780) per chicken.

1.4.5 Subject selection

Data was collected from a range of respondents, as follows:
i) District NAADS officials- Iganga and Bugiri and sub-county officials provided
data on identified farmer groups, agricultural extension officers, local poultry
market information and technology development sites and On- farm-
ii) Farmer groups provided data on group activities and group management
iii) Local poultry keepers provided data on the quality of production,
management of groups, technology adoption and farming activities.
iv) Service providers, NGOs and businesses provided data on service provision
to the local poultry farming community.

At the district level, sub country and community level, personnel involved in the
study were purposively selected, depending on relevance of their work to the study
outputs. The following personalities took part in the study:
1. District Production Coordinator/ NAADS Co-ordinator, Agricultural Officer,
Veterinary Officer, Chairman, District Local poultry keepers’ Forum.
2. At the Community level, data was collected from the following persons:
Farmer groups, Members of the community, in focus group discussions
and Individual household members
A list of all persons met is in Attachment 4.
This was done with the help of the Jiddeco Branch staff - Iganga District and the
Senior Marketing officials of Uganda Local Chicken Local poultry keepers
A total of 7 FGDs were conducted with 187 participants (89 males, 202 females).


1.4.6 Field data collection
Data was collected between 3rd Feb and 22nd April 2006 and was done in 3
intervals of 10 days as per the set objectives. The study team collected data from
the various sources described in the above table

1.5 Limitations of the study

The objectives of government institutions like PMA and PEAP which focus on
increased incomes and market share directly didn’t highlights the need for an
efficient marketing system if these rural local poultry keepers are to gain from their
increased productivity. There were a few specific limitations that hindered the
development of the research as most secondary data was based on productivity
than the issue of marketability of local poultry. Time factor too was on our case as
more time was needed for the field study, the analyses and compilation of the
study but this is normal constraint feature in research studies. It shows that
researchers need to continue improving the study on the bases of your contribution
as participants and the feedback of other key players in the chain and the
comments of our local poultry keepers/producers in the value chain development

1.5.1 The structure of the report

As a case study, we are using the curriculum of the value chain development
course. However, the researchers feel that it will benefit the participants and
enable them to cover the key elements of the VCD. Hence the Table of Contents
serves as a checklist of the research.
The report is in two stages: the first stage covers sub sector definition and analysis
and the second part addresses the valve chain identification and analysis. It is
concluded by strategies for Valve Chain Development including a number of
specific recommendations.


1.6.1 The Commercialisation of local poultry in Iganga and Bugiri
Poultry rearing is an integral part of agri-business in the farming communities.
About 90 per cent of rural households in Iganga and Bugiri rear local poultry and its
an important source of cash income for rural traditional poultry keeping, with small
flocks kept under a scareveging system with feed made up of household waste,


home pickings and crop residues. Poverty eradication is at the forefront of the
Uganda development agenda. The Poverty Eradication Action Plan (PEAP) and
the Plan for Modernization of Agriculture (PMA) are policy frame works and
strategies through which poverty will be reduced. The free-range poultry production
system is seen as an entry point through which rural communities can earn
incomes and reduce poverty.
Increased production must have an efficient marketing strategy if incomes are to
be realized. The demand for local poultry in Uganda seems to be higher than
supply. Despite the consumer preference for local chicken and high costs
compared to commercial Local poultry, local poultry keepers continue to complain
of low prices paid to them compared to consumer prices in urban areas. The blame
falls immediately to traders, retailers or middlemen. The study was to further
establish whether the profit margins of retailers were justifiable. The need for
development a well-organized marketing system for local poultry is explored.1
JIDDECO project calls for the eradication of poverty through sustainable
agricultural development to improve food security and rural incomes. It aims to
reduce the population living in absolute poverty from the present 35% to less than
10% by 2017. The project emphasizes that the best way to fight poverty is to
enable households to earn incomes through secured access to productive assets
and creation of income earning opportunities, macroeconomic stability and
microeconomic incentives, provision of adequate health and education, improved
socio-economic infrastructure, consideration of vulnerable groups and good
governance. JIDDECO’s dual challenge is increasing productivity in the local
chicken production sectors and increasing investment by the poor within the
eastern region of Busoga.

1.6.2 Local poultry sub sector for the local market

According to the study carried out in the Bukanga and Bulamagi sub counties in
Iganga District, It is massively recognized that Local poultry in traditional village
poultry systems provide scarce animal protein in the form of meat and eggs, and
are available for sale or barter in societies where cash is not abundant. The activity
is generally owned and managed by women and children. Village Local poultry

G. MUKIIBI-MUKA1 AND H. KIRUNDA, 1 Livestock Health Research Institute (LIRI)), P.O Box 96, Tororo
Department of Veterinary Services, Iganga District, P.O Box 358, Iganga


also fulfilled a range of other functions for which it is difficult to assign a monetary
value. They are active in pest control, provide manure, are required for special
festivals and to meet social obligations, they are essential for many traditional
ceremonies and traditional treatment of illness.
Hence various definitions of the local poultry sector are possible:
ƒ Local poultry for the local market
ƒ Local poultry for the export market
ƒ Local poultry for the value addition and processing
For the purpose of this research study, we selected local poultry for the local
market and any cost-effective strategy that increases the productivity of local
chicken will assist in poverty alleviation and the improvement of food and income
security. The increased availability of village local poultry and eggs should result in
an improved intake of protein by the population and increased access to cash and
other resources. The study was done to establish the supply chain and the role of
the main actors in the local poultry sector and the need of developing a well
organised marketing system.

1.6.3 Marketing
In Uganda, to date there has been few studies on local poultry marketing; mainly
it’s been on the production. But of recent a lot has been covered on local chicken
mainly through a private sector association known as Uganda Local Chicken
keepers Association (ULCFA) that is lobbying and advocating for increased
marketability of local poultry. It looks at improved production and marketing of local
chicken for commercial purposes. An efficient marketing system is a prerequisite
for any production system if incomes are to be realized. A reconnaissance survey
in relation to local poultry sub sector in Iganga and Bugiri district was done with
local poultry keepers, retailers (middlemen) and wholesalers’ focus groups to
establish the profit margins of middlemen and marketing channels in order to
answer the question: Of whether traders or middlemen exploit the local poultry
local poultry keepers?
Further more, some specific objectives of the investigation were developed:
1. Identify the key players in the marketing chain of rural Local chickens.
2. Work out farm gate prices, retailers selling prices at the rural markets and
also in towns of Iganga and Kampala.





Local chicken breeds are generally raised in traditional production systems. These
chickens are exposed to natural selection from the environment for hardiness, running and
flight skills, but not mainly for egg production. Local hens are thus poor layers, but good
mothers; when farmers contemplate the adoption of a more intensive poultry production
system, they are eager to purchase more productive birds. In terms of geographical
coverage, during the sub sector study, we reached all population concentration sizes such
as growth points, urban centres, locals, business areas and villages. Although most of the
households operations are small holder producers, women constitute 58%. The pull
factors into local chicken enterprise production include; family background, the drive to
generate income and food security consideration. About 64% of the producers showed
serious involvement in poultry production about 5 years back. This may be due to the
increased “urbanisation” and “economies of scale” of the once urban-poor, who are
constantly being displaced by economic development of the urban areas.

The results show a connected marketing structure that transfers free-range chickens from
producers in rural households to consumers in both semi urban and urban areas.
Middlemen operating in the marketing of free-range chickens were also reported in
Bukanga and Bulesa sub counties, it was observed that farmers could sell their chickens
directly at local markets; thereafter, middlemen took over. Though G. Mukiibi-Muka and H.
Kirunda et al (2004) reported presence of women selling processed chickens at the
markets, these were not farmers but vendors. The market is informal at household level
and village trading centres where farmers participate and transactions through barter trade
is also common. After that, middlemen operate local chicken marketing as their main
business occupation.

The farmers sold less than two chickens per month and this would mean high TCs if
individually transported and offered at the market. High TCs associated with fewer
chickens sold are the possible constraint of farmers from selling their chickens at the rural
markets. Middlemen at the rural markets, such as Kaweete market in Iganga
district, minimised TCs by using low (or no) cost form of transport such as bicycles or by
just walking to the market. Middlemen in urban markets used public transport or hired
transport to reach distant local market places, so their market sizes had to be large
enough and their prices had to absorb TCs. Risks of middlemen purchasing sick birds and
therefore, dying before being sold need to be investigated in future studies.


The higher positive profit margins observed in urban markets than in rural market are
comparable to other countries. In Jinja markets, middlemen generated 65 % profit margins
above what farmers got. A farmer in Iganga reported that household level prices for
chickens were one third that offered at urban markets, also reflecting higher profit margins
for middlemen. Most likely, seasonal food shortage results in weak bargaining power of

The seasonal trends on numbers available in the markets, pricing and profit margins
differed between the rural and the urban markets. Farmers sell local chickens to meet their
household needs especially food, medication and school fees during the dry season.
During the wet season, farmers sell their chickens instead of losing them through death
from Newcastle disease. These factors operate at household (farm) level, influence
bargaining power of farmers when selling their chickens, and contribute to the seasonal
variations. Supply and pricing of chickens at a local market are bound to be affected,
reflecting what was observed at the rural market. Urban markets counteract these forces
by diversifying sources of their chickens depending on market information. The different
sources of chickens supplied to urban markets also provided opportunity for more
phenotypes observed at these markets than those sold at the rural market.

Transaction costs and profit margins

Transaction costs per chicken per middleman were a fixed cost related to size of market.
These TCs decline at a disproportional rate as market size increases.

It however emerged from the study that the farmers view increased provision of credit
facilities, training, access to urban markets, price controls on stock feeds and chicks,
subsidies, government extension services and vaccines, as well as getting good quality
chicks from reliable hatcheries as vital in restoring viability and ultimately expanding their
markets. Formation of several poultry associations which encourage bulk buying of inputs
(hence enjoy economies of scale) would go a long way in reducing input costs and hence
retaining the lost markets.


2.3 Functions, Actors and product flow
Sub Sector Map


Eggs are exported to

Kenyan border
towns like Busia

CONSUMPTION Urban high Rural consumers Rural

income with low incomes households

Hotels Muchomo Local

RETAILING Mwana and traders and Markets in
JB hotel in Rolex/ Iganga
Iganga. Chapatti, and make
Food shift
Kiosks. restaurant

Urban middlemen
WHOLESALING with big trucks to
ferry to Kampala.
Middle men and
individual traders
Bicycle chicken

BULK BUYING Farmers groups



BLCFG - Iganga

IAFA - Iganga
PRODUCTION Individual farmers and
(FARMERS) poultry keepers Barter Trade

NAGRIC -Entebbe Drug and vet shops Maize millers for

INPUT SUPPLY Improved hybrid Mugolofa Vet Care) kasikas and
cockerels Iganga Equator Valley Farm Maize Brand
Samba Feeds

Channel I Channel II Channel III


The map shows 3 channels that could be developed and give us good interventions in a
later stage. Although there is appearance, weight and size consideration when shopping
for meat which is done both at sale and purchase, there is no established means of
verification. Local chickens are usually sold live to fellow local poultry keepers, retailers or

The local poultry marketing chain is simple and undeveloped with no infrastructure at all
markets save for some stalls in towns. The main marketing channels are:

Channel 3 – Producer directly to Consumer.

These markets are within the villages and possibly selling from farmer to farmer or to
retailers. Although they main purpose of selling is to get income, sometimes fellow local
poultry keepers who need a certain hen or cock for breeding may demand the purchase
from a neighbour.
Channel 2 – Producer to bicycle traders to consumer
These markets are generally formed by several villages within a Parish. Often, are
unfenced areas with few or no facilities (perimeter fence, loading ramp, holdings, and
toilets) for example the Kaweete market in Iganga district, held on every Saturday, a
gazetted day of the week. Bicycle traders purchase chicken from adjacent several primary
markets, during the course of a week and truck them to destinations within or outside the
regional markets. Local poultry keepers give their birds to children, in turn who take them
to the roadside for sale in areas where trucks park especially along Bugiri and Iganga
highway. Some eggs are taken to the road side Rolex makers of chapattis that are highly
consumed by middle income earners and students from Busoga University and nearby
Channel 1 – Producer to Bulk buyers then to final Consumer
This channel involves few commercial local poultry farmer group producers who
essentially serve the urban income markets but on many occasions, these farmers work in
groups and sale to middlemen with trucks and usually they offer the transport up to urban
cities like Nakasero, Nakawa and Mukono markets. These middlemen further distribute to
hotels in and around urban centres up to the urban high income consumers. Here farmers
need to have an impact on better incomes from their chicken, and then it is at primary
market where they should do it.




Input suppliers play a big role in the system. Feed sellers sell pre mix feeds as
supplementary feeds to local poultry keepers at a cost and Day Old Chicks (DOC) are
usually supplied to urban farmers by Uganda Local Chicken Farmers Association (ULCFA)
others input suppliers include: local feed mixers like Iganga Equator Valley Farm and Jinja
branch - Kagodo Feeds. There is an increased need for veterinary care, high quality feed
and the availability of DOCs, which have been scare.


These are usually households in a rural and semi urban setting that rear local chicken in
limited numbers, thus about 5 – 10 chickens. However, there are number of Farmer
groups Known as Partner Implementing Organisations (PIOs) likes of BBRUDA and
MUCIDEO, which were visited within 10 selected villages in Iganga and Bugiri. The small
farmer groups usually buy vaccines, premix and sale in bulk to selected hotels and traders
around Iganga and Bugiri.


These are middle men who usually build a link between the key rearers and the
consumption market. This is because many of them participate at these primary markets
(Kaweete Market) and can easily get to know the market prices and trends of each
Within the channel, there are secondary markets normally they have a larger say than
primary markets but also lack proper weighing, loading and hygienic facilities. Traders
often come with trucks to buy a full load for immediate transportation to large centres such
as Kampala and Jinja. Chicken here is sold according to size, age and appearance
through negotiations between sellers, traders and bird keepers. However, the number of
local poultry keepers at secondary markets (Jinja, Iganga and Bugiri central markets)
Markets is small and comprised of those who are close to the market. The level of taxes
and various players also is increased at this market. There are more men involved in the
trade of Local chickens than women.

However, in the districts of Iganga and Bugiri where large numbers of local chicken are
available for sale and more traders exist, sellers are better able to bargain for fairer prices.
Within the channel there are urban markets: These are in larger towns and cities. Often
there are designated areas where make shift chicken stalls are erected like in the Jinja
Central Market. Suppliers to such markets are traders who, place chickens on taxi racks


and take to towns. Consumers from such urban markets are hotels, restaurants and some
affluent city dwellers. An ordinary farmer or consumer is not likely to buy from such a
market because the prices are higher except on festive days like Christmas.
Such supply chain channels have no standardized price structure and all sales depend on
information given by the traders (middle men), however, eggs are also marketable and
consumption is mainly for the urban market but within the rural village it’s mainly for
multiplication effects.


80% of the local chicken is consumed and most of it is taken to urban centre and also
within the local centres of Iganga and Bugiri. The chicken has a sweet yellow delicious
tasty and aroma. Local chicken is usually consumed as chicken stew, traditional luwombo,
drum sticks and chicken wings in fast food outlets. It has been discovered that both the
head and feet are a delicacy to certain tribes in Uganda. Most of the chickens produced
are consumed by the urban market or consumers. Eggs market in Iganga town has
drastically picked up. In the evenings there are road side chapatti makers who make
“Rolexes” it’s a chapatti with 2 eggs fried in between. Low income earners can feed on that
for a meal with a cup of tea. Iganga students have been found to consumer this product.
Bakeries too use the eggs for making mandanzis and cakes plus bread. However, it is its
been noticed that egg production with time and patient is a more profitable poultry
business than chicken meat production due to new consumption trends involving high
consumption of eggs. Sometimes chicken is consumed as Muchomo and stew. Chicken is
consumed by all age group and economic status and it is consumed through out the year
and most especially during festive seasons like Christmas, Easter etc.

2.5 Overlays

2.5.1 Number of actors

In Bukanga and Muterere Sub County, nearly every household rears local chicken on at
least on a free range system.. In those selected areas, local poultry is kept by 70-90% of
the households, while fewer households keep goats and cattle. Households owning no
land or less than 0.5 acre of land own more than 50% of the total poultry population. Local
poultry is sometimes used as the first investment for a livestock ladder (in the sense that
one can move from poultry to goat/sheep to cattle etc) to increase income and get out of
poverty. There were almost no job opportunities for the landless, disadvantaged women in
the country, who were Jiddeco’s targets for relief and development work at that time

2.5.2 Volumes
At market and trading level, several middlemen and traders from nearby towns transport
the chicken to Kampala with its central markets like Owino, Nakawa, Bugolobi and Jinja.


According to our interview with the chairman, Jinja central Market and Napiya, he says
that about 350 chickens are slaughtered on a weekly basis, and 500 are taken to other
towns. In Bugiri, especially Muterere Sub County; MUCIDEO farmer group supply 20 trays
of table eggs per week to a Kenyan trader, but with time they project it can grow to 50

2.6 Profitability analysis and Simple Gross Margins

The Simplified Gross Margin Calculations are shown below:

Table 1: Simplified Gross Margin Calculations



Production of 1 sack of Premix Samba Feeds per 2

Mixing of local feeds (148 kgs of Grower’s Mash)
Output Quantity Price Value
Maize bran 100 80 8,000
Crushed Fish (omena and mukene) 18 1000 18,000
Shells (masonko) 12 300 3,600
Premix 1 5000 5,000
Salts 1 400 400
Cotton seed cakes 16 300 4,800
Labour cost 1 3000 3,000
Transport cost 1 3000 3,000
Total Cost 45,800
Total Sales 148 400 59,200
Goss Profit 13,400
Simple Gross Margins (Percentage) 22.6

Rural Chick breeder in Iganga producing

100 2 months old chicks
Output Quantity Price Value
Cocks 1 4000 4,000
Layers 6 3000 18,000
Chick mash for 2 months 15 400 6,000
Quarterly vaccines (per week) 3 1000 3,000
Politricin for fast growth (2 months) 2 1000 2,000
Growers mash 14 400 5,600
Labour cost 2 5,000 10,000
Husks 20 80 1,600
Total Cost 50,200
Total Sales 100 700 70,000
Goss Profit 19,800
Simple Gross Margins (Percentage) 28.2


4. Rural Poultry Feeds wholesaler
Buying price 100 400 40,000
Transport per bag to Busanda trading centre 1 2000 1000
Selling price per kg 100 500 50,000
Gross profit 9,000
Simple Gross margins (Percentage) 25.00

5. Farmer group producing 100 local

chickens (60 hens and 40 cocks -7
Output Quantity Price Value
Cocks 1 4000 4,000
Layers 6 3000 18,000
Chick mash for 2 months 15 400 6,000
Growers mash. (0.7 kgs per bird for 5
months) 280 400 112,000
Transport for feeds and vaccines 7 2000 14,000
Quarterly vaccines (per week) 3 6000 18,000
Politricin for fast growth (7 months) 1 28000 28,000
Labour cost 7 10,000 70,000
Total Cost 270,000
Cocks 40 5000 200,000
Hens 60 3500 210,000
Total sales 410,000
Goss Profit 140,000
Simple Gross Margins (Percentage) 34

VILLAGE (Middlemen) TRADERS in Kaweete Market

Output Quantity Unit Price Value
Cost of cocks 10 5000 50,000
Cost of hen 10 3500 35,000
Market tax levy in Kaweete Mkt 20 100 2,000
Total cost 87,000
Selling price
Cocks 10 6000 60,000
Hens 10 4000 40,000
Total 100,000
Gross profit 13000
Simple Gross Margins ( Percentage) 13

Urban Middleman TRADERS in Nakasero, Owino and Nakawa Market

Output Quantity Unit Price Value

Cost of cocks 10 5000 50,000
Cost of hen 10 3000 30,000
Market tax levy in Urban markets 20 350 2,000
Transport to Kampala 20 400 8,000
Total cost 100,000
Selling price
Cocks 10 12,000 120,000
Hens 10 7,000 70,000


Total 180,000
Gross profit 88,000
Simple Gross Margins ( Percentage) 48

Retailers – Road side chicken sellers

Muchomo Roaster on Iganga-Tororo highway
Output cost per day Quantity Unit Price Value
Buying price 10 3000 30,000
Charcoal and spices Lumpsum 3000 500
Labour cost 1 2000 2000
Total 32,500
Selling price per piece (5 pieces per chicken) 50 1,000 50,000
Gross profit 17,500
Simple Gross Margins ( Percentage) 35

2.7 Constraints of local poultry production systems in Iganga and Bugiri


There are two options for poultry development in eastern region. One is to attempt to
increase small scale intensive local poultry production in order to respond to the urban
demand. The other is to look at new channels for developing small and medium scale
semi-intensive local poultry production to serve both the urban and rural populations.
Where possible, the two options can be pursued simultaneously. Where import restrictions
are imposed, then the development of small scale production would appear more

However, our field experience through surveys, study visits, on-station and on-farm
research indicate that the problems of smallholder local poultry production, though many,
revolve around disease control, feed supplementation and housing, in that order.

Disease. Newcastle disease is the most important disease of poultry. Reports of mortality
vary: 65% of the flock in Bukanga and 70% in Muterere. Sustained vaccination is
recognised as necessary, but the available techniques are expensive to use and do not
provide adequate cover for extensively reared birds. The development of the thermo
stable, orally-fed, pelleted vaccine holds great promise and should be tested within
Busoga region.

The losses in rural poultry from disease amounts to about 400,000 of chicks each year. In
addition, predators, particularly: hawks, snakes, dogs, cats and rats kill or wound a further
150,000 poultry every year. The challenge is to develop and validate appropriate methods
of flock management that are applicable to the extensive or semi-intensive systems.
Fortunately, poultry do not cross household borders during their productive life and


outbreaks can be contained within the country which will allow them to develop their own
programme of control.

Feeding. An important problem concerning poultry production in Uganda is the high cost
of feed ingredients particularly: grains, protein concentrate and vitamin-mineral premix.
While there is inadequate supply of grains for intensive production, field experience
confirms at there are sufficient grains, grain by-products, oil seed cakes and other by-
products to sustain small to medium-scale production. What is needed is the knowledge of
the nutritive value of these available feedstuffs and of their efficient use in poultry feeding.

Housing. The complete free-range system, while cheap, also exposes young birds to
predators. Poultry development projects that included housing increased egg production,
especially if hens are kept in their houses until 10.00 a.m. Since most eggs are laid before
10.00 a.m. and in nest boxes rather than in the surrounding bush. Chick mortality can also
reduced even by a simple chick run which protects from rain and predators.

Table 2: Summary of Constraints and Opportunities

Type of constraint Constraint

Technology / product • Lack of appropriate technologies like mini hatcheries that
development result into low chick mortality and productivity.
• There is no technological innovation for local chicken
product development as there are sold live with
measurements of appearance, size and weight hence little
prices obtained by farmers.
• Lack of amenities for brooding, suitable night shelter in
primary cold and wet rainy areas hence resulting into high
• Low moral for the farmers to look out for lucrative markets
and what the needs of the consumer are?
Market Access • Inadequate market information on the local poultry sector
and the market dynamics and prices in relation to the
consumers’ needs and demands.
• Lack of viable and proper managed organised marketing
groups to be able to produce consistently and of good
• Absence of necessary backward and forward linkages for
the development of the sector hence limited market


Organization & • Most local poultry keepers are operating on individual basis
Management and hence cannot maximise for economics of scale farmers
and little negotiation and barging power.
• They are not organized in groups hence it is difficult to
deliver quality services to these scattered individual
• Poor or no structured communication channel for
information exchange, hence lots of exploitation from the
farmers point of view.
Regulatory / policies • Teaching and research, public intuitions are not interested
and ignore the scareveging poultry sector hence thinking it’s
not a viable prospect for development.
• No R/D support from both private and public sector, to link
up extension agencies to provide suitable technical back up
to farmers
• Some rural agro input stockists have questionable
qualifications and experiences making them stock poor
products like vaccines and drugs.
Finance • Low capital investments due to limited financial sources and
the fear that micro finance institutions rip farmers off their
monies. Hence there is that stigma about Rural MFI.
• Short term and Quick recovery loans rates by MFI without
sensitizing the farmers on profitable business projects, they
can invest into. This results in usage of local and affordable
methods of production hence low quality products.
Input Supply • Sometimes quality inputs like deworming drugs and
vaccines are expired and also farmers lack knowledge of
proper vaccination schedules.
• Inadequate or no supplementary feeding given to the
chickens thus they free scarevage and source food on they
own hence low productivity.
• Untimely delivery of some seed varieties and other products
resulting to low volumes of production and poor quality
• Inadequate supply of thatching grass for the rural poor
hence they shelter with the chickens in the main house.


Infrastructure • Poor infrastructure to the delivery points, feeder roads are
muddy leading to late delivery vaccines.
• Lack or poor storage or refrigeration facilities for the
• Due to poor structures like poultry shades, this has lead to
increase in theft cases within villages and especially those
with big flocks.

Analysis of the survey will clarify the major constraints affecting local poultry. Interventions
will be initiated ranging from vaccination and other disease preventive measures to
supplementary feeding, simple housing structures and improving marketing opportunities.
Under these circumstances, local poultry provides a good source of protein and ready
cash for villagers, which in turn helps to sustain the rural or village economy and
contributes to the prevention of urban migration.
There is need to enriching small hold farmers and landless labour families through a more
holistic and self-reliant approach not only in terms of improvement of income , employment
and nutritional status but also in terms of fostering community development, gender
empowerment and protection of environment, is envisaged on the larger canvass of ‘rural
development’ using local poultry as a tool. However, different potential stakeholders need
to know their roles and responsibilities for the opportunities to be rediscovered.

2.8 Local Poultry Sub sector stakeholders (their roles and functions)

Table 3 Local Poultry sub sector stake holders

Stake Holder Potential Roles and functions to perform

GOVERNMENT OF • Establishment of demonstration yards to demonstrate best
UGANDA, NAADS, commercially viable local poultry back yard farm.
NAGRIC, KAWANDA • Capacity building and training of farmers in crop
JIDDECO, ULCFA, • Sensitisation and awareness of farming as “business”
UNAFFE especially on the poultry enterprise for the rural farmers
• Research and Development plus dissemination of findings
into local poultry diseases, pests and control methods.
• Increasing the outreach of activities and help in extension
through District / Block Extension teams.
• Strengthening all the spheres of backward and forward


• The ‘mother units’, which are the nurseries for chick
rearing set up by Jiddeco.
Retailers / Consumers • Provide markets for both eggs and meat reared by the
Hotels and restaurants farmer groups.
(Mwana, Triangle, Jinja • As retailers, they should give advice of what variety is
Nile Resort Hotels, good to be reared for particular purposes like for stake,
Iganga, Jinja, Kampala stew and soup and where there is great demand.
Markets etc) • Provide bulking and transportation facilitaties of the birds
to the farmers or farmer groups.
Input Suppliers. • State Poultry Farms will ensure availability of quality
chicks suitable for rural poultry.
ULCFA, SAVENT, • Feed & Feed ingredients: The minimal feed requirement
NAADS, NAGRIC, SARRI, (as a supplement to scavenging) may be assessed and
KAWANDA, Mugolofa accessibility to important ingredients may be ensured in
Vets in Iganga, Kagodo consultation with NAGRIC and Private sector feed
and Equator Valley supplies plus quality assurance.
Farms, Samba Feeds - • Vaccines/ medicines: State sub country extension
Iganga Veterinary officers & NAADS and NAGRIC will ensure
availability of vaccines/ medicines.
• Advisory services on best practices of rearing backyard
local poultry
• Establishment of demonstration plots were farmers can be
taught good farming methods
• ULCFA can have a special arrangement with farmer
groups to supply DOCs on credit terms.
• Technological aspects of these input deliveries like mini
hatcheries and vaccine storage cold-chain containers etc.
may be ensured by NAADS, NAGRIC and ULCFA.
• assistance is provided to suitably strengthen the farms in
terms of hatching, brooding and rearing of the birds with
provision for feed mill and their quality monitoring and in-
house disease diagnostic facilities
Rural Agro Input • Provide fast solution to inputs to farmers due to their
Stockists. Mugolofa proximity to farmers.
Vetinary care and • Can also give advice on how best to transport the
Butembe Vet Care. vaccines and also the vaccination schedule. Further offer
that service.


• Some can have credit arrangements with poultry keepers.
Farmer groups • The beneficiary will rear the birds.
• The female birds will start laying eggs when they are 28
weeks old till the 80th week. It is expected that each bird
will lay on an average 5 eggs per week during this period.
The eggs are expected to fetch a minimum price of Ushs
150/= each
• Determine the quality and volumes of chickens to be

2.8 Local Poultry Sub sector dynamics and Cross cutting Issues

2.8.1 Gender / Youth and HIV/AIDS

Gender is a major focus in development and local poultry is an obvious starting point to
reach poor women, and it is appealing to livestock extension and research workers as
using this concept they can reach out to the marginalised and poor women, to a much
larger population than when they confine themselves to cattle or practically any other
animal. So it was conceived that local poultry rearing in which these women were already
engaged but at a miniscule level, could be an income earning activity for a large number of
landless, poor women. This decision to target poor women was a major factor in the future
course of development of this initiative.

The energetic young men are leaving the farming and production activities to the old and
elderly people, most of them prefer brisk businesses and short term deals like to ride
roasting road chickens, making of road side chapattis, boda boda bicycles in Iganga and
Bugiri town. A few of them who are married young have discovered a secret in local
chicken rearing. It owns to both pull and push factors. One push factor is probably the little
land and space for farming in the villages. A pull factor would be the attractiveness of life
in the towns compared to the villages. In addition, there is an attitudinal problem where
some young people deliberately do not have a liking for farming.

Many households in rural areas are aware of HIV/AIDS. Nearly every family has been
affected by the epidemic. They have either lost a family member or a near relative to
HIV/AIDS. In some cases a family has lost a main bread winner. In all these cases,
earnings from local poultry sale have been instrumental to support a bereaved family.





A value chain is a vertical alliance of high level model of how independent businesses
receive raw materials as input, add value to them raw materials through primary and
support processes, and sell finished products to customers. The goal is to deliver
maximum value for the least possible total cost.
In our study of the local sub sector focus is on identification of any such strategic alliances
or interrelations if present. Once identified, attention should be focused on whether the
alliances are formidable enough to prompt growth or in case the alliances are weak,
there will be need to look at a combination of possibilities to strengthen these alliances
and create growth. In a situation where there is no such productive strategic
interrelationship, there is need to design a mechanism to initiate such alliances.

3.2 Essence of value chain

The value chain is an important concept for understanding the generation and distribution
of returns from the various functions (e.g. Input supply, production, packaging, marketing,
recycling etc.). Value chain has recently emerged as a popular business concept. The
concept provides a framework for systematic analysis of challenges and development of
potentially commercial viable solutions and win-win strategies for every player or
stakeholder in a production, supply chain or value addition process.

3.3 Analysis of Key elements of value chain

3.3.1 Economic gain

Economic gains arise from the possession of scarce attributes, either on the basis of
unequal ownership or control over an existing resource. The latter is often referred to as
entrepreneurial surplus. Chicken meat and eggs are on high demand and this makes the
business more lucrative.
Some economic gains are constructed by companies or individual players in the chain and
hence are endogenous to the chain. Some of these gains include; using better technology
to improve productivity, employing personnel that possess a unique abilities and
possessing better marketing capabilities. Gains can also arise through the gift of nature
and hence are exogenous to the chain. Producers can also gain from the gains provided
by parties external to the chain. Gains arising from favourable policies, good infrastructure
and good financial support arrangements can be mentioned here. Economic gains are


dynamic. New gains will be added over time and existing areas of gains will be eroded
through the forces of competition.

With Busoga region, every house hold is rearing at least 5-10 chickens and this has been
a traditional for decades. It was also noticed that poultry keepers have at least the
knowledge of poultry management techniques, which involves the vaccination skills, the
supplementary feeding and ingredient coactions, acknowledged their skills may have
some discrepancies. Local poultry is a lucrative business in these areas of Iganga and egg
supply in Bugiri district for quite sometime. In addition in these areas, there is good net
work of roads but during the rainy seasons, it’s difficult and tough to transport on their
bicycles. So the alternative is to wait for middlemen who purchase the chicken off from the
farmers at a lower cost. Gains that need to be addressed arising from financial support to
farmers, especially at the time of input needs and production plus marketing of chicken
meat and eggs. It was noted that farmers lack knowledge of how to access financial
services and support. In other cases, even the financial services fear to invest in farming
because it’s more risky, hence they target small scale traders or owners of small
businesses. As such the repayment terms are not favorable to farmers.

3.3.2 Governance

In the sub sector in question, the structure and system or organ for information flow
(concerning quality, disease free local chickens that sell and the measurement by age,
appearance and size) is not clearly defined. Poultry keepers are not well informed of
variety, weight and breed that the market wants. Farmers tend not to understand what
local breed is good for meat and which is good for eggs production.
A strong governance structure is necessary to ensure free flow of information
and coordinate activities in order to meet specific market demands. This calls
for a need for a chain leader. A chain leader should be strategically positioned
such that the leader in question can effectively organize others for a market
led production.

3.3.3 Market focused collaboration

In addition to economic gains and governance, market collaboration of value chain

participants is key and should usually be market based. Value chains should be driven
specifically by market requirements. Market information is freely shared among the actors
in the value chain; the prevalence here is a win-win strategy.
The only form of alliance noted was at the farmer group levels (production) and Retailer-
consumer, whereby the hotels know really what the end consumer wants but cannot drive


down the information to the producers. Individual groups of producers have been formed
and registered, hence the have united in order to collectively transport and market their
chicken meat and eggs. We are still on research to discover the chain leader; could be
Uganda Local Chicken Farmers Association (ULCFA) or UGACHICK to organize players
and coordinate their functions. It would also be paramount to explain to each player the
need for collaboration and the specific activity that each player would perform in the
alliance. Benefits resultant from this form of alliance should also be communicated to
specific players.

3.4 Value Chain Identification (Mapping and Relationships)

In chapter two, the sub sector map revealed three channels through which local goes up to
the point of consumption. In this chapter we use various criteria to identify and select
channel(s) that are worth further strengthening. Value chains are developed for viable and
profitable channels in the sub sector map.

3.4.1 Value Chain Selection

It should be noted that Value Chain Selection is an art rather than a scientific process. In
the business environment, often any actor in the chain might see an opportunity for
collaborating with another actor and take a step to initiate discussion about it. Hence there
is no one and only way to identify and select a value chain. However, keeping in mind the
characteristics and key elements of value chain discussed above, there is need to propose
and identify value chains that exhibit among others, the following characteristics;

• Existence of potential for partnership building

• Channels that are demand driven other than supply driven
• Channels that have potentials to accesses high income markets
• Channels that balances well with cross cutting issues like gender, HIV/AIDS and
the youth.
• Channels that would yield significant volumes of birds for the various markets.

Identified Channels
Criteria Channel I Channel II Channel III
Positive Economic gains 3 2 1
Good chain Governance 2 2 2
Market Focussed Collaboration 3 1 1
Scope for SMEs, Gender, HIV, Youths 3 2 1
Total scores 11 7 5


Key 1 = Low (No evidence of presence or even potential
2 = Average (some attributes but there is potential)
3 = High (most attributes present)

3.4.2 Identification of Emerging Value Chain

Looking at the sub sector map and the markets being reached and also looking at the
criteria listed above a chain that combines all the channels has been identified. This chain
focuses on urban and high income markets. The identified chain need to be mapped out
and recommendations to develop this chain analyzed.





Contracting Contracting


Hotel Triangle,
ULCFA Farmers Groups in Uganda Local Mwana Hotel and
Mugolofa Vet Iganga and Bugiri Chicken Farmers Kampala urban

Butembe Vet care MUCIDEO, Association markets like
Maize Millers Bugoole Farmers (ULCFA) Nakawa, Bugolobi
Group and Nakasero

Quality Control Mkt Information



Provision of quality vaccines and Short term credit and trainings in business
trainings in poultry management for development of SMEs. Dissemination of market
increased production per household Strengthen collaboration focused towards information on local poultry
R&D in local poultry sector meeting market requirements production and its high demand

Capacity Building Capacity Building

Need to enforce partnership between stakeholders and Linkage to financial sources for producers



3.5 Market Segmentation and Market Volatility

It was revealed that besides selling chicken for meat and eggs for the urban markets like
Nakasero, Bugolobi, Jinja and Iganga town, where the main consumers are medium and
high income consumers. Further more, the producers sell to themselves in exchange for
goats, sheep, turkeys and ducks etc. It was however noted that in wet season, chickens
fetch a high price due to the high mortality rate that season. When it is dry season, chicken
meat and egg production is slightly lower. Each market segment has it own distinctive
market characteristics. In low income markets the quantity of meat is very hard and
tender, because of long durations and lack of supplementary feeding and usually sold at
farm gate price. In high income markets, quality of chickens and eggs, size, appearance
and age are an important issue.

3.6 Critical Success Factors

Market characteristics are what is referred to as critical success factors. Order qualifying
CSF is what producers need to achieve in order to participate in particular markets. In high
income markets where they are urban income consumers like hotels and restaurants,
interest will be 5-6 months chicken, which has supplementary feeding and produces a
yellow aroma soup. For eggs, the pink yellowish yolk is more selling and the size of the
eggs is small with an oval shape is a critical issue. Order winning CSF are those critical
factors which make particular firms succeed to gain order or prominence in a particular
market. Issues like consistence in supply and timely delivery constitute the order wining
CSF. It was noted that eggs are more lucrative than chicken meat; hence Muterere
chickens that feed on lots of greens have a higher eggs production of eggs that the Iganga
variety, hence most of the eggs are sold to eastern border of Busia and Malaba border
towns. For the Iganga chicken, the eggs are good for hatching hence increase in

3.7 Value Chain Development

Basing on given criterion such as incorporation of other developmental concerns like
gender, environment, and possibility of the chain to include more SMEs.
Certain prerequisites are required to build a successful value chain. The following
prerequisites must be identified prevalent if a formidable value chain is to be built;
• Establish common objectives
• Build trust and establish cooperative working relationship
• Existence of tangible benefits to all players involved in the chain


It is crucial that all parties establish and share a set of mutually agreed – to objectives. In
the local poultry sub sector case the objective should be to increase productivity of quality
local chicken meat and eggs at the farmer level and also increase farmers’ access to high
value and high paying markets. Increasing productivity can be achieved through training
farmers in poultry management techniques and better farming technologies and supply of
quality DOCs and other farm inputs like supplementary feeds, drugs and vaccines. For
producers to access high value markets needs to be done through linking farmers to
hotels, restaurants and resorts around the major towns and urban centres of the region or
building a link with a chain leader thus Uganda Local Chicken Farmers Association.
Farmers especially in Busanda, Bugoole and Muterere can be linked to other regional
markets like Busia and Iganga where they can market their produce.

As intervention to increase productivity of local chickens and market for both meat and
eggs is in progress, there is need to do a desk research and sought for technology of
value addition. Thus the common objective has been understood by every player; hence
the need of trust has to be built within all the players in the chain. Trust oils the relationship
among players. It should be noted that building trust is a pain staking process which
requires patience but can be built through implementing tangible activities over time.
JIDDECCO will have to talk to all the stakeholders and bring them on around table
especially the input suppliers and the service providers like Savenet and government
extension officers in Iganga and Bugiri. There is need to create an incentive for continued
participation and create a win - win situation for all the players involved in the chain. Value
chain development interventions will have to take a phased process.

3.7.1 Stages of Value Chain Development

The first phase should involve a process of evaluating the idea of production and
productivity increases of local chickens. When evaluating this idea, there is need to involve
key stake holders and players in the chain, this oils the relationship.
The second phase should be a planning phase which will involve selecting partners,
building relationships and agreeing on goals and measures to achieve the agreed goals.
This will include careful partner selection, commitment from all partners, cohesion and
interdependence created and ULCFA has to be a dedicated champion and chain leader.
Series of collaborative planning sessions should be held at this point.
The final phase should involve launching a pilot of project planned. It is advisable to start
small and there after scale the intervention and increase the number of beneficiaries.
Attempts should be made to integrate systems and build and adopt strategies that will
work. At the end of this stage there will be need for an honest pilot evaluation, increasing
cohesion and opportunities to learn from this pilot.


3.7.2 Value Chain Upgrading
Value chain upgrading should be a future target. This should come after production and
productivity have been increased and farmers have markets for their products. Product
and functional upgrading should be targeted. Product upgrading involves changing product
development processes both within individual links in the value chain and in the
relationship within different chain links. This involves introducing new products or
improving the old products. In the case of the tomato sub sector, this will involve
undertaking value addition to produce tomato sauce. Functional upgrading involves
changing the mix of activities conducted within the firm




4.1 Conclusions
The local poultry sub sector study was successfully conducted. It should be noted that the
sub sector has both positive and negative aspects as has been mentioned in this report.
There is the need to capitalize on the positive and hence device ways to turn the negatives
attributes into opportunities. Several constraints and opportunities have been identified.
There is there fore the need to squarely address these constraints that have been
identified. Below are some recommendations targeting the various levels of the supply

4.2 Recommendation

Many regions in Uganda are currently unable to produce large feed surpluses over and
above the needs of the human population. Therefore, the intensive poultry industry has
become a liability rather than an asset. Smallholder rural poultry production, if properly
developed, appears to hold prospects for sustainable poultry production. What is needed
is a coordinated programme which addresses, at the same time, the problems of breeding,
feeding, housing and disease control and specifically directed the small farmer. The
programme should develop projects geared towards understanding rural poultry
production systems and their weaknesses; developing and testing new methods which will
not only overcome these weaknesses but will also be affordable and sustainable.

The following suggested activities to be included in the coordinated programme.

4.2.1 Breeding and Reproduction

Evaluation and selection of indigenous breeds. However, there are many types,
breeds and strains of indigenous poultry in Uganda which are well adapted to their
environment. Thus, there is need for their genetic improvement in order to: improve their
productivity within the local environment for higher productivity of the chickens.

• Making use of the improved indigenous birds in crossing programmes with imported
exotic birds and then conserve the desirable genes (e.g. for disease resistance and
heat tolerance) of the indigenous breed for future use.

Evaluation and adaptation of imported breeds in the hot climate. Basic breeding
projects conducted in collaboration with urban and foreign breeding farms (NAGRIC and


SARRI) should provide adequate data about local breeds and guidelines on the best route
for genetic upgrading.

Development of hatching and breeding / starting centres (ULCFA, Poultry

Cooperatives or private sector) to produce day-old-chicks, DOCs and raise them to 28
days or 4 weeks before deliver to farmers.

4.2.2 Feed Research and Development

Alternatives, substitutes and supplements must be sought in order to minimise feed

ingredient importation. In areas with marine resources, fish meal potentials must be
exploited (e.g. shrimp head meal, fish offal, periwinkle shells, etc). In landlocked districts,
slaughterhouse by-products must be recovered, processed and utilised. Examples are
vegetable/blood meals, poultry offal meal and feather meal. Development of small-scale
feed mixing concerns (either cooperative or private) is essential at village or community

4.2.3 Health Management

Regional cooperation in vaccine production and distribution. Disease surveillance,

control and monitoring must be developed to maximise the efficient use of available
human and material resources or since traditional medicine was used by many people, the
development of local chicken health programmes is required to give reliable information on
the epidemiology of diseases.

Training on a sub country or regional basis. Training in disease diagnosis,

epidemiology, environmental health and disease prevention must be provided, not only for
local poultry farmers, but for the service providers like health personnel as well.

4.2.4 Entrepreneur Development

There is a need for a strong effort to encourage and assist entrepreneurs: feedstuff
suppliers, equipment manufacturers, hatcheries, chick starting centres, as well as,
marketers, slaughter and processing plants, financial services to develop and improve
input supplies to the small scale local poultry producers. Former Cooperative Unions were
particularly well placed to involve people in production and marketing; and to develop
closer links between producers, retailers and consumers of poultry eggs and meat, but
today there are no more, hence emphasise to redevelop them.


4.2.5 Information Management

Development, documentation and dissemination of information on the appropriate

methods of data collection, collation, storage, retrieval and application on the field is
essential. The information gathered can be used to promote rural local poultry in primary
and secondary schools as well as by the poultry advisor in a unified extension system. The
establishment of an eastern regional training and demonstration centre and programme for
training all levels of personnel, particularly farmers, is imperative. Agricultural schools,
research institutes, universities, government ministries and parastatals, non-governmental
organisation (NGOs) and the private sectors must all be actively involved in information
dissemination and training.

4.2.6 Proposed Roles of JIDDECO

To coordinate these five areas of activity and others that may be developed, the facilitating
organisation –JIDDECO has to take this role. It appears ideally suitable. It is commonly
assumed that small-scale farmers or group of farmers know best what is good for them
and that changes from outside do more harm than good. However, it must also be said
that there are inevitable gaps in the farmers' indigenous knowledge resulting from isolation
and lack of scientific research and expertise. The real challenge to improving poultry
production and the welfare of the rural poor in Ugandans is to assist in bridging this
information gap.

Jiddeco will further spearhead creation of a strategic alliance of stake holders to promote
the sub sector and advocate for services like research and other extension services into
the sub sector. Captured data will be disseminated in a stake holder’s workshop and a
way forward to develop the sub sector assessed and analyzed. JIDDECO will further
identify a business development service provider and link them to the service need that
has been identified; hence JIDDECO’s initiate to spearhead and supervise and monitor the
activities to be undertaken to develop the local poultry sub sector.



Networking and facilitation Role of Jiddeco with the private sector and other service providers

Roles and Function


• Farmer groups
JIDDECO • Individual
SAVENET farmers
MUCIDEO, Bugoole

Facilitation Role NAADS Consistency

Coordinating Role EXTENSION Quality production
OFFICERS Needed volumes

4.3 Intervention programs and activities

The intervention into the local poultry sub sector will be presented in form of an
intervention matrix as will be seen below.

Gap identified Intervention Responsible Stakeholder /

Low productivity of local • Trainings in diseases NAGRIC, JIDDECO, SARRI-
breeds due to high mortality control and feeding SOROTI, SAMBA FEEDS, INPUT
rate and poor feeding methodologies. SUPPLIERS, JIDDECO and
methods thus low egg • Supply of hybrid / cross NAADS
production and poor genetic breed quality chickens.
build. • Appropriate technology
like mini hatcheries
should be introduced to
the farmers
Lack of housing has • Trainings in poultry JIDDECO, SARRI-SOROTI,
exposed the local flocks to management technique ULCFA, AND NAADS
high mortality rates and skills.
especially for the chicks • Carry out a
and susceptible disease demonstration of a


outbreak especially New standard poultry shed.

In appropriate inputs like • Trainings in feed NAADS, JIDDECO, KAWADA

feeds and drugs that are mixture and RESEACH and SARRI –
supplied to the farmers, methodologies. SOROTI, MINISTRY OF
hence leading to poor • Training of TOT at sub AGRICULTURE
quality diseased chickens. country level to monitor
and mix ingredients of
local materials.
Lack of farming • Create awareness JIDDECO, ULCFA, MIN of
organisations due to group dynamics and MICRO FINANCE
individual subsistence quality needed by the
production leading to poor market.
economies of scale, • Train farmers to
minimum income fro their linkages with hotels,
activities and low yields. restaurants to market
their product


4.4 Intervention Action Plan
Type of Constraint Commercially Viable Possible Service Specific Task / Activities/ Jiddeco’s Role
constraint Solution Providers in the roles
Technology / • Lack of appropriate - Availability of appropriate Training in hatching and
technologies like mini technology like mini hatcheries breeding techniques. Building linkages between
hatcheries that result or lead that hatch 200 eggs at a time to ULCFA the stake holders and
development low productivity due to high increase productivity. Carry out a demonstration of know the roles and
chick mortality. - Trainings have to be practical NAGRIC the mini hatchery. functions of each of the
and commercially viable service providers.
UNFFE Exposure tour to
• Low moral for the farmers to - Farmers need to be sensitized commercialised farms in Bira Carry out desk research
look out for lucrative markets on market dynamic in order for MIN OF – Namugongo. and give a feedback to
and what the needs of the them to increase on productivity. AGRICUTLUR the farmers of new
consumer are? E. Conduct radio programs to innovations.
• There is no technological - More emphasis by government sensitize the farmers.
innovation for local chicken to implement programs NAADS
product development as interventions that lead to Hold and participate in the Facilitate the roles of
there are sold live with commercialise the local poultry BUTEMBE VET National Agricultural show in other stakeholders in the
measurements of sub sector. CARE. Jinja. chain.
appearance, size and weight
hence little prices obtained EXTENSION Hold stakeholders workshop
by farmers OFFICERS to the sub sector report.
• Lack of amenities for - More awareness and
brooding, suitable night sensitization of the local poultry KIIRA FM Advocacy and lobby for the
shelter in primary cold and sub sector through the media and commercialisation of the local
wet rainy areas hence disease control measures placed NBS FM poultry.
resulting into high mortality.
Carry out exchange visits
among the farmers and to
external farms.


Market • Inadequate market - Emphasis on basic knowledge Carry out a Rapid Market Conduct an RMA
information on the local of business planning and market SAVENET Appraisal in egg and meat exercise with Technical
poultry sector and the dynamics in place. production in selected Assistance from FIT
market dynamics and prices - Create awareness of identifying FIT UGANDA markets. Uganda
in relation to the consumers’ potential markets and exploit
needs and demands. them JIDDECO Training in business
development and
• Lack of viable and proper - Need of farmers to form farmer ASPS / entrepreneurship. Identify service providers
managed organised groups and association to have DANIDA Run bi monthly radio who are competent to
marketing groups to be able better barging power for heir programs on KiiraFM and carry out the trainings.
to produce consistently and produce FINCA Busoga FM.
of good quality.
• Absence of necessary - Formation of credible farmer KIIRA FM Trainings in Group dynamics Networking and
backward and forward associations to produce quality Subscription to market and coordinate with other
linkages for the development chickens hence easy of access to agricultural institutions and service providers to assist
of the sector hence limited services. NBS FM web sites. the farmers
market information.
Hold farmer group forums to
discuss matters that affect
their market.

Trainings in lobbying and

advocacy techniques.
Organization • Most local poultry keepers - Develop adult literacy programs Trainings in organisational Lobbying and advocate
are operating on individual and personal management NAADS Development. for the farmers through
basis and hence cannot courses for strengthened media campaigns.
Management maximise for economics of leadership in their farmer groups. FIT UGANDA Conduct an exposure tour to
scale farmers and little commercialised farmer groups Arrange and organise
negotiation and barging CDRN in Buganda region. exposure visits.
JIDDECO Hold farmer forum and Arrange and setting up
• They are not organized in - Provision of technical discussions and elements of collaborative meetings.
groups hence it is difficult to assistance has to be given to ASPS leadership (election)
deliver quality services to farmers through the trainings of
these scattered individual farming as a business. Trainings in adult literacy
farmers. - Assist in development of programs.
organisational structures and also
provide extensional services Trainings in gender and


• Poor or no structured - Develop an exchange channel conflict resolution within
communication channel for for feedback communication and farmer groups.
information exchange, hence analysis of the market trends in
lots of exploitation from the the sector.
farmers point of view.
Regulatory / • Teaching and research, - Develop and implement an Awareness campaign on radio Advocate and lobby for
public intuitions are not awareness, lobbying and PMA like Kiira FM. commercialisation of the
interested and ignore the advocating campaign for the local local poultry sector.
scareveging poultry sector poultry sector. PEAP Writing of articles in
hence thinking it’s not a - government and local papers
viable prospect for MINISTRY OF under the agricultural sector.
development. AGRICULTUR Set up of collaborative
E. Lobbying and advocacy arrangement.
• No R/D support from both - A policy and guidelines need to campaigns.
private and public sector, to be developed to commercialise NAADS. Networking with all
link up extension agencies to the local poultry sector Net working meetings stakeholders in the
provide suitable technical MINISTRY OF government.
back up to farmers MICRO -
• Some rural agro input - Carry out checks and monitor FINANCE
stockists have questionable the practicing Vetinary officers in
qualifications and the rural areas for the
experiences making them qualification about their career.
stock poor products like
vaccines and drugs.
Finance • Low capital investments due - Farmer groups should be Trainings in business
to limited financial sources introduced to micro finance JIDDECO development and Arrange and organise
and the fear that micro institution and at hand they entrepreneurship and risk exposure visits.
finance institutions rip should have a business plan to SAVENET management.
farmers off their monies. access loans. Arrange and setting up
Hence there is that stigma - Encourage rural MFI to go down FINCA – Identification of rural micro collaborative meetings.
about Rural MFI. deep in rural areas and create IGANGA finance institutions that can
awareness about their services BRANCH. assist the farmers. Develop linkages with


• Short term and Quick - Advocating for the lowering of MFI
recovery loans rates by MFI interest rate for credible farmer PRIDE MICRO Lobbying for MF services in
without sensitizing the groups because there are the FINANCE rural settings
farmers on profitable poor of the poorest hence no
business projects, they can collateral security. MINISTRY OF
invest into. This results in MICRO -
usage of local and affordable FINANCE
methods of production hence
low quality products.
Input Supply • Sometimes quality inputs - Farmer groups should be linked Trainings in vaccination and Link farmers to input
like deworming drugs and to credible input supplier hence hatching programs. suppliers.
vaccines are expired and build that relationship of trust.
also farmers lack knowledge Link farmers to input Trainings in local feed
of proper vaccination MUGOLOFA suppliers. formula mixture.
schedules. VET SHOP.
Carry a demonstration o ways Hold a stakeholders’
• Inadequate or no - Encourage and the farmers to BUTEMBE VET of vaccination methodologies. meeting to express each
supplementary feeding given use of local available herbs and CARE. role of the input suppliers
to the chickens thus they medications that can cure the Identify service providers
free scarevage and source poultry diseases. SAMBA FEEDS Training in mixture of local
food on they own hence low available inputs.
productivity. KAGODO
• Untimely delivery of some - Farmers should be encouraged FEEDS Training in group dynamic to
seed varieties and other to work in groups to access access the appropriate input.
products resulting to low appropriate inputs ULCFA
volumes of production and
poor quality products. JIDDECO
• Inadequate supply of - Input suppliers should be
thatching grass for the rural informed about the high demand NAGRIC
poor hence they shelter with of the raw materials.
the chickens in the main
Infrastructure • Poor infrastructure to the - Advocate for accessibility of NAADS Lobbying and Advocacy Arrange and organise
delivery points, feeder roads these roads through the exposure visits to
MINISTRY OF Hold a forum for stakeholders
are muddy leading to late government. institutions that have
delivery vaccines. AGRICUTURE in the selected supply chain benefited from village


• Lack or poor storage or - Encourage equal distribution of ASPS
refrigeration facilities for the cold rooms in the eastern to store Arrange and setting up
vaccines the vaccines. collaborative meetings.
• Due to poor structures like - Encourage use of local available
poultry shades, this has lead
materials to erect structures.
to increase in theft cases
within villages and especially - Link service providers to
those with big flocks. farmers like communication
companies to provide village



4.5 Partnership development done by Jiddeco among the Stakeholders

The principle for Partnership is that, JIDDECO develops Strategic partnerships with all key
stakeholders already involved in the development and promotion of the local chicken
enterprise to enhance Jiddeco’s efforts. In this way, the local chicken enterprises can be
developed faster into commercial concerns to ensure that farming becomes a business.
The major principles behind the partnerships include:

• Linkage to markets and infrastructure: strategic enterprise development and

promotion will lead to bulk production and marketing of chicken meat and eggs and
it therefore requires that local poultry keepers can readily access inputs including
technologies as well as output markets and that the associated infrastructure is

• Establishment of quality meat and egg standards: successful exploitation of

national, regional and even international markets demands. This will involves
generating secondary data for establishment of these standards, adherence to
such standards as prerequisite and development of a grading system.

• Capacity building: The most important way of addressing the majority of the
challenges is through building capacity of all stakeholders (from input supplier to
the consumers) to efficiently identify and address the constraints of production,
processing and marketing of local chicken meat and eggs.

• Technology development and sharing: Modern/improved technology is required

for improved production and efficiency. It therefore means that new technologies
have to be identified and will be made available to local poultry farmers to enhance
production in terms of both quantity and quality.

• Provision of inputs: Enterprise development requires specific inputs (feeds,

improved cocks, mini hatcheries, vaccines, specific tools and equipment), which
local poultry keepers cannot easily access due to the required capital investment.
Partnerships enable local poultry keepers to access credit and/or leasing facilities
in various forms for such inputs.