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OIL PALM4P Model key for Agriculture Projects NEWS: Editor In this approach farmers producers are regarded as partners but not as beneficiaries. This means they are involved in decision making and negotiations

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hrough a ten year National Oil Palm Project OIL PALM PROJECT (NOPP),T the Ministry is expanding the production of the Oil Palm from 11,348ha to another 17,147ha GOES NATIONAL in the five hubs of Buvuma, Mayuge, ALLURING FUTURE: Government of through the Ministry of Agriculture Mukono-, Animal Industry and Fisheries has launched a National Oil Palm Project rollout Masaka-Kyotera and Namayingo. to scale Oil palm production to different parts of the country. >> Full story on page 03

In 2003, Government of Uganda and Bidco Uganda Limited unveiled plans to establish 40,000 Hectares of Oil Palm across the Country and setup Crude Oil mills and a refinery to guarantee market for the Oil Palm farmers produce.

Minister Ssempijja National Oil Palm From VODP to Applauds Oil Palm Project (NOPP) NOPP - Project Expansion Implemented by Manager 06 MAAIF 03 02 OIL PALM NEWS FIRST EDITION NATIONAL NEWS MAAIF Ministry of Agriculture, Animal Industry and Fisheries

THE REPUBLIC OF UGANDA Mission: To transform subsistence farming to commercial agriculture Vision: A competitive profitable and sustainable agriculture sector

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Minister's Message

Dear Reader, efforts to reduce importation of into practice the presidential crude palm oil, therefore, continue directives and resolutions in all the The NRM government is to yield good returns with an programmes and projects such as committed to supporting key increase in production of oil palm the National Oil Palm Project. strategic commodities to ensure fresh fruit bunches and incomes It is my strong belief that this greater impact on household incomes earned by the farmers. The oil palm newsletter will trigger appreciation and national export earnings. harvests increased from 37,802 MT of investments in oil palm in Emphasis of the interventions has, in FY 2017/18 to 44,221 MT in FY Uganda that have become a reality therefore, focused on commodity 2018/19 with an average value of and breathed life into our economy. value chains, focusing on research; Shs21.1 billion annually. Oil palm is an investment crop that extension; pest, vector and disease Households with mature oil we all need to embrace■ control; provision of inputs; palm gardens in earn an promoting sustainable land use average of Shs17.2 million each For God and my Country and soil management; post-harvest year and are already in the middle- handling; improving market access income bracket. The oil palm Hon Vincent Bamulangaki and infrastructure; and value enterprise in Kalangala produced Ssempiija (MP) addition. over 40,000 MT of crude palm oil Minister of Agriculture, A number of interventions have in 2019 saving the country Shs84.3 Animal Industry and Fisheries been undertaken by my ministry billion. have led to increased employment, This has been possible by increased household incomes, food prioritizing and integrating the security and even exports. government’s commitments to The government of Uganda’s the agriculture sector and putting Vincent Bamulangaki Ssempiija Minister of Agriculture Animal Industry and Fisheries

Message from the Permanent Secretary

Dear colleagues and all The NOPP strategic plan extension workers will the objectives of NOPP in stakeholders over the next 10 years puts mobilize individual particular and MAAIF in emphasis on supporting farmers to participate in general. I take this opportunity to oil palm farmers and non- the NOPP interventions I also thank our Ministers welcome you to the 1st oil palm communities to to facilitate input in MAAIF, Ministry of edition of Oil Palm News, ensure that vulnerable distribution, storage and Finance, Planning and the quarterly newsletter groups like women and transportation. Economic Development of the National Oil Palm youth get involved in The Ministry of (MoFPED) and Ministry Project (NOPP). This in growing oil palm for Agriculture, Animal of Local Government newsletter is in line with sustainable food security Industry and Fisheries (MOLG) and all line the Vision of the Ministry, and income security. (MAAIF) is grateful to Ministries, Departments which is to ensure: “A In this context, I would its partners, notably the and Agencies (MDAs) competitive, profitable and like to inform you that International Fund for for their continued sustainable agricultural beginning April 2021, Agriculture Development collaboration. sector” as well as the the official planting of oil (IFAD), Oil Palm Uganda We are looking forward agriculture sector mission, palm seedlings in Buvuma Limited (OPUL), BIDCO to continuing this fruitful, which is: “To transform District by smallholder and the farmers for making interesting dialogue and subsistence farming to farmers will commence. growing oil palm a reality exchange of information commercial agriculture”. The smallholder in Uganda. with you■ This edition gives an outgrowers shall also I want to conclude by insight into the NOPP be supported deeply to thanking all members who Good Reading!!! strategic direction increase on their capacity have contributed to this for inclusive rural and scale. newsletter for your efforts Pius Wakabi Kasajja development through I believe that the in making this publication Permanent Secretary growing oil palm as a farmer committees and a success. I thank His Ministry of Pius Wakabi Kasajja catalyst for wealth creation institutions working Excellence the President Agriculture, Animal Permanent Secretary and enabling the country together with the parish for all the guidance and Industry and Fisheries Ministry of Agriculture, Animal Industry and Fisheries to achieve its Vision 2040. chiefs as well as the support towards achieving (MAAIF) NATIONAL NEWS FIRST EDITION OIL PALM NEWS 03 Oil Palm Project Goes National overnment of Uganda Oil Project one and two, this has district shall operate through a 4P through the Ministry proven very successful and our model, where different Partners of Agriculture, Animal partners through discussions with shall play key roles to implement Industry and Fisheries government decided that the crop the expansion. Oil palm Buvuma hasG launched a national project production is expanded to give Limited is mandated to develop rollout to scale Oil palm production opportunity to other farmers to seedlings and ensure production, to different parts of the country. grow oil palm” adds Masaba while BIDCO takes center in Through a ten-year project called The new districts of expansion refining, Farmers associations are National Oil Palm project (NOPP) will include Buvuma, Mayuge, key partners in Farmer organization the ministry is to expand production Namayigo, Bugiri, Masaka, and MAAIF key in monitoring from originally Kyotera Mukono and Buikwe. The and scaling the project as well as to other districts. According to project team however, reveals that ensuring there is land acquisition. Mrs. Connie Magomu Masaba the more studies were being done to see In a recent interview with the Project Manager National Oil Palm the viability of oil palm in northern Minister for Agriculture, Vincent project, the expansion is based on Uganda. Ssempijja, the minister said research indications that oil palm Connie Masaba further reveals government efforts to extend the can grow in many parts of the that the ministry working with palm oil project to other areas in country but also the realization that Oil Palm Buvuma Ltd (OPBL) the country were high priority as A ripe oil palm fresh fruit bunch oil palm has capacity to transform private sector partner had already the demand for oil palm worldwide many Ugandans out of poverty. established an oil palm nursery continues to grow. are very good for our people, so out process will not have more “We have over the years been in in Buvuma with over 300000 “The demand for oil palm is high this is an enterprise we should put challenges as it was in Kalangala Kalangala district, where oil palm seedlings that will be supplied to and the supply is so low, we still special focus on.” Said Sempijja. district because there have been production has been undertaken for various Farmers across the country. import a lot of oil, Uganda’s oil is The minister assures that the multiple lessons learnt over the last twenty years under Vegetable The expansion like in Kalangala rated very good and the bi-products ministry believes that the scale years■

Message from the Project Manager NOPP

Dear Readers,

Welcome to the first edition of the Oil Palm News, a newsletter intended to regularly bring to you the latest information in the oil palm sector. Approximately 20 years, the Vegetable Oil Development Project was implemented in Uganda which has now been transformed into the National Oil Palm Project (NOPP), which is the leading project in the growing of oil palm in Kalangala District. The success of this project is now being replicated in with Mukono, Mayuge, Masaka and Kyotera districts expected to come on board soon. At the national level, the impact of our interventions is reflected in the impressive performance of the agriculture sector which grew by 4.2 percent up from 3.8 percent in the previous four years. Some of this growth is attributable to the oil palm sector. Oil palm contributes to close to 50 percent of the total Minister Vincent Ssempijja (R) and the Project Manager NOPP Connie Masaba Magomu in the agriculture sector’s contribution to middle togehter with local leaders looking at the map of the land acquired in Buvuma the national economy. Palm oil, the product of oil palm is likely to trigger the establishment of tourism, understanding of the values of growing opportunities the oil palm sector provides one of the most versatile products improve environmental eco zones and scale oil palm and its contribution the economic to achieve our goal of a “Sustainable and in the world leading to increased infrastructure in the various previously growth of our country. Inclusive Rural Transformation through Oil demand as the world’s population disadvantaged sites in Uganda. To that effect, this newsletter will be a quarterly Palm Investment”■ grows. Uganda tapping into this Investing in growing oil palm, therefore, is a publication that profiles a cross section of growing global demand will lead to key opportunity that will deliver our country stakeholders, farmers and policy makers Happy reading!!!! increased household incomes. This, to the ‘Promised Land.’ among others in Uganda. We will bring you no doubt, creates great opportunity Through this Oil Palm News, NOPP will the stories of smallholder farmers, researchers, Connie Magomu Masaba for scaling out oil palm growing to have regular interactions with you and our extension service providers among others Project Manager NOPP different parts of the country. other stakeholders in order to create a positive while at the same time showcasing the This, as evidenced in Kalangala is 04 OIL PALM NEWS FIRST EDITION NATIONAL NEWS EDITORIAL Oil Palm is MAAIF's Embrace 4P Model Approach Golden Project: for Agriculture Projects Lwakuba n crop production, we support , guide and promote market oriented crop and provided seedlings, agricultural Government. production, in there is inputs and a transparent and Finally, time is needed for valueI addition , food and nutrition reliable market to smallholder oil social acceptance by the local Security and we also enhance the palm growers, hence the 4P model. communities, to allow for an capacity of our clients in investing Through the project, GoU has informed and consensual process in Agriculture , Aiming at increased improved critical infrastructure like of land purchases and identification household income and food and farm roads, fertilizer stores, ferry of the beneficiaries. The National nutrition security in Uganda . services, tractors and provided the Oil Palm Project (NOPP) will be Oil palm is one of the strategic growers with financial, technical able to draw on and capitalise the commodities that the government and organizational support through gains from this long-term effort to and the Ministry of agriculture, Kalangala Oil Palm Growers elsewhere starting with Buvuma animal industry and fisheries are Trust (KOPGT). This has enabled District. fostering. This focuses on the oil smallholder farmers to plant a For growers to work well palm crop that produces the palm new industrial crop up to the same with each other, and to develop oil and the oil seeds like the soya standards as the Oil Palm Uganda constructive and effective Mr Alex Lwakuba bean, the sunflower. All these were Limited nucleus estate, assured relationships with both the local Commissioner Crop being promoted under a project that them of a market for their produce, technical support service providers Production MAAIF alangala District just ended called the Vegetable oil and enabled them to become and the private sector partner, they has been for long development project (VODP 1&2) suppliers to the Crude Palm Oil need to have strong representative referred to as the funded by International Fund for Palm. (CPO) mill – making it a genuine organizations at the block, unit Poverty Island, Agriculture Development (IFAD). Its an undisputable fact 4P model. and hub levels, with effective whichK only focused on fishing as This has now transformed into a that the project has generally The 4P model is primarily governance and channels for a key enterprise. In early 2000s, project known as the National Oil improved the status and the built on trust. Transparent land selecting qualified individuals to the Government of Uganda with Palm project (NOPP) standards of people living in purchases (‘willing buyer, willing represent them. development partners agreed to Oil Palm journey started way Kalangala. Initially they were seller basis’) for the nucleus estate Smallholder oil palm growers are roll out an oil palm project on back in the 90s ,there are some depending mainly on fishing and tenants/landlord relationship willing to take on responsibilities Bugala Island. The project was officers who were based into “wake up go to the lake and are the starting point. Clearly for quality control and provision implemented by the Vegetable Masaka and Kalangala before it fish” they were getting food defined roles and responsibilities, of some services – something Oil Development Project, a was split into Masaka ,a gentleman even from outside of the island articulated in written agreements, that needs to be built upon going project under the Ministry of called David Balilonda had these but now they have been also as well as transparent and formal forward; strong organization can Agriculture, Animal Industry concepts way back in the 90s we able to be trained on how to mechanisms for shared governance support this process. and Fisheries (MAAIF). started working on the concept grow a crop that bring money and decision-making, have also The Local Economy Impact Over the years, this has and the proposals. These yielded from oil palm and even to been essential. Evaluation (LEWIE) findings been one of the country’s most good around early 2000 when diversify using this project and A key factor has been the revealed the importance of oil palm successful projects and has government now seriously bought the crop. transparent pricing formula that cultivation not only for oil palm transformed both the island into the proposal and that project The trainings on crop tags the price of Fresh Fruit farmers but also for the Kalangala and its people. Approximately of Vegetable Oil was approved, diversification have greatly Bunches (FFBs) paid to farmers to economy as a whole. 11,348Hacters have been funding then was approved thus improved the food and nutrition the average Crude Palm Oil (CPO) As oil palm acreage expands, planted by both the smallholders enabling implementation. it has security and also helped people price in Malaysia, adjusted to factor the farmers’ demand for labor and the nucleus estate. There are gone through a transition and to grow some nutrient based in import transport costs. A similar and other inputs also increases, 2,063 smallholder farmers of transformation. crops to improve their sources mechanism has been established to and payments to the oil palm which (30%) 1,454 are women. To us as a ministry, we see this of food and also income determine the charges to farmers laborers spreads benefits to their During my recent visit to the one as one of the success stories especially when the palm is still for seedlings and fertilizers. households. As profits increase in island to document the success of rural development, recalling young. This commitment to transparency oil palm farmer households and stories of this long journey, I kalangala before Oil Palm project, This project has also ushered will continue to be pursued under wages rise in laborers’ households, learnt that the Kalangala oil it is very evident that this was in benefits social economical NOPP. Effective communication these households’ expenditures on palm story could only happen a miracle baby that came with benefits it helps the people to to oil palm farmers right from the goods and services supplied by with the unique approach that golden beads in its fingers. There is work together to associate there start, will be critical, to ensure other households and businesses was used. This approach is significant change. is a group for example KOPGT that they understand the principles in Kalangala increase. Market the Public-Private-Producer- The Difference in infrastructure Kalangala Oil Palm Growers behind the partnership, as well as linkages spread the benefits of Partnership (4Ps) model. development is tremendous, Trust is an association that is their rights and responsibilities. oil palm production through the The Kalangala oil palm previously on this then remote local and is in Kalangala that Time has been a critical element entire Kalangala economy. The project is the first major island, there was no electricity, helps that helps in marketing in building the 4P model, as study reveals how the Kalangala agricultural Public-Private- there were no hotels, yet this and production of the oil palm an inclusive business approach economy has grown in tandem Producer-Partnership (4P) was a tourist attraction site. The in Kalangala. requires consensus building and with oil palm expansion, and why model in Uganda. It built an livelihoods of the people on the Generally as the Ministry of alignment of different interests, there is a high correlation between innovative partnership between islands was basically that of Agriculture, we are very proud often under less than favourable acreage in oil palm and new the private sector, local and dwellers. But today the livelihoods of this project, it has stood the policy environments and with business formation national governments and of Kalangala has tremendously test of time, one of the longest slow decision-making in the public It’s my wise thought and farmer organizations. improved especially the farmers standing projects at the Ministry sector. request to stakeholders that such Under the arrangement, who participate in the Oil Palm is good partner appreciation and Time is required for farmers' unique approach of the 4P model the Government of Uganda project. focusing on making Uganda a acceptance of new technologies be replicated in other projects in (GoU) made available land and This can be seen from the houses better place■ and, more generally, for a shift Uganda. provided fiscal incentives to farmers have constructed, these in mindset from subsistence to leverage the initial investment are permanent houses compared Mr Alex Lwakuba commercial, business-oriented Anthony William Wanyoto from the private sector; the to semi-permanent grass thatched Commissioner Crop farming. Knowledge building Communications and competitively selected private houses in the past. Generally this Production at the Ministry of takes time, not only for farmers Knowledge Management Officer investor then develop a nucleus is attributed to the benefits that Agriculture Animal industry but also for the private sector and Editor – Oil Palm News estate and processing capacity, they harness from growing the Oil and Fisheries. NATIONAL NEWS FIRST EDITION OIL PALM NEWS 05 Kalangala oil palm farmers to share billions

alangala farmers will get sh4.71b net Muhereza said. She has also district Oil dividend. constructed a permanent palm growers Diamond Chancoo, the house. are walking chairperson of KOPGT, “We have now started to K their banks with great said unlike other companies other enterprises, such as smiles.this follows a where dividends are shared coffee, bananas, passion recent payout of over sh5b among shareholders, the fruits and goats. All these in dividends from their farmers in Kalangala agreed are funded by palm oil,” she 10% stake in the Oil Palm to invest it in social services added. Uganda Limited (OPUL) “We will invest in Every month, Muhereza investment. According community services, such says she gets about sh5m to Kok Chin the general as roads, renovating health from her enterprises. manager OPUL, the 10% facilities and schools so that Farmers can borrow money stake was introduced by the the community benefits,” to improve on their fields. Government for the farmers Chancoo said. “Farmers need the money and, over the years, has He explained that to boost their incomes yielded dividends. some of the money will and enable them set up “We are pleased to be put in Ssese Oil Palm enterprises,” Chancoo said. boost incomes and the last nine years. Most of the agreement with guidelines inform Kalangala Oil Palm Growers Cooperative The oil palm project livelihood of the Kalangala development at household on the running of the Growers Trust (KOPGT) Society (SOPGCO), the is supported by the households. level is because of this project. The Government that on November 9, last farmers SACCOS, so that Government, through the There are about 2,063 money,” Balironda said. extends the credit to the year, the directors of OPUL TESTIMONY. vegetable Oil Development oil palm tree farmers in “For every acre of palm out-growers from the resolved to pay dividend of Palm tree growing has Project, with funding from Kalangala, with plantations trees planted, you yield IFAD. sh5.55b per share, before transformed lives of many the International Fund for covering 4,848 hectares, about sh2.2m. This money In Africa, Nigeria is the tax, to the shareholders farmers, like Margaret Agricultural Development. whereas OPUL has about is not only utilized by the leading palm tree grower, of the company,” a letter Muhereza, who says she The oil palm project in 6,500 hectares. farmers, but about 80% followed by Ghana, Ivory by Kok Chin Chong, the sent her children to one Kalangala district began Since the first harvest goes to the local economy.” Coast, the Democratic company secretary of of the best schools in the in 2002, under a tripartite of fresh oil palm fruit in He attributes the Republic of Congo, OPUL, read. district. public private partnership May, 2010, at least 225,200 achievement to the unity of Burundi and Cameroon. The money is, however, “I started growing palm with OPUL and KOPGT, as metric tonnes have been the farmers and urges them The African oil palm tree subject to withholding trees in 2007 on three acres. the key implementer. harvested, amounting to to form groups. is from West Africa, but taxes of 15%. Meaning We now have 23 acres. The KOPGT general about sh110.5b. At inception, the Asia did more research and sh832m will be remitted I do not regret because l manager, David Balironda “This is the money that parties, comprising of the development on it■ to the Uganda Revenue have good life since I can Mukasa, said palm tree has been circulating in the Government, BIDCO and Authority (URA), meaning afford most of my needs,” growing was started to Kalangala economy for the KOPGT, signed a tripartite Buvuma District on Track for Oil Palm Production

uvuma district and has compensated the and further appreciate the public land for project is one of the residents to establish a the achievements and implementation. The new oil palm nucleus oil palm estates. advantages of such a district administration production Serunjoji further explains project. has also undertaken the districts.B In 2012, Bidco that engaging the out John Mabirizi one task to lobby landlords Palm Oil Limited, a regional growers. The nuclear estate of the community to also give out land to edible oil manufacturer, we are targeting 6500 acres facilitators says kalangala the government so that of land and out growers for gave a situation analysis government may buy it unveiled plans to establish the smallholder farmers. and enabled them to and give it to the investor a 6,500 hectares (16,000 “so far we have secured appreciate the project for Oil palm planting. acres) palm oil plantation more than 5014 hectares further. “we were able “As Buvuma district, and processing factory, the nucleus estates. And to compare ourselves we are looking at beginning in 2013. With at the initial state of the Mr Alex Lwakuba Commissioner Crop Production to the kalangala that transforming our rural another 3,500 hectares smallholder farmers we MAAIF has already started. we people from substance (8,600 acres), in a planned are targeting 500 acres. saw the advantages of farming to commercial outgrowers’ scheme, the So far, we’ve covered the acquiring land, it is the to handle complaints that may having such a project, we faming, to achieve entire Bidco Palm Oil 360 as that is an issue. So district responsibility to look arise, creating awareness and realized our people were this, we shall require Project on as far as Buvuma district for land, look for the landlords popularizing the project. going to get employment, a good cash crop. So is expected to grow to is concerned, we are very to negotiate with the tenants, Prior to the project and even increasing someone will be selling 10,000 hectares (25,000 ready for the project. so that the government can inception, the district people’s income because Oil palm fruits to the acres), when completed According to Serunjoji, acquire that land and acquiring administration and a team the essence of this project investor increasing According to Serujjogi the district has taken up the the land, the government of farmers, community is improving people’s incomes, then some will Willson, the district Focal responsibility to acquire compensates the tenants at the based facilitators and other income.” Adds Mabirizi be getting money from person National Oil Palm the land for oil palm same time the landlord. “ he key stakeholders made Serunjoji adds that employment. “concludes Project (NOPP) in Buvuma production. adds a benchmarking visit to the district is very ready Serunjoji wilson■ District, Government has “when we are getting Serunjoji says the role of Kalangala Island to study the for the project and has already acquired land land or when you’re the district has been majorly kalangala oil palm project already given out some of 06 OIL PALM NEWS FIRST EDITION INVESTOR Partnerships Key to Successful Oil Palm Production in Uganda: Investor

Promising Figure: Oil Palm Uganda Limited an oil plam production company has hailed the use of Four Partner- ship Model (commonly referred to as 4Ps) as the driver of a successful implementation and growth of the Oil Palm Production in Uganda. Speaking to NOPP News Team, Mr Abbey Mukalu, Human Resource Manager of Oil palm Uganda said the model has been very successful and should be replicated if the country projects are to be succss- ful. Below is the interview:

Who is Oil Palm Uganda be grown. I will basically them the land, after showing the land, Limited? look at the role of each party everything Is done for you and they Oil palm Uganda Limited in the development of this recover from the volume of sales. is the plantation company project. for oil palm in Uganda, we Under the Four P-Model So that’s how the 4ps mode works. It are located in Kalangala who are the Partners and has worked well for us and everybody Bugala Island. we supply the what were their key roles? is happy. The company is happy is product to BIDCO which is getting the outputs from the farmers the refinery, many people The government, When you and the farmers are also happy normally refer to us as Bidco look at government, there because company pays them on time but for us we are open as the role was to put in place and they are earning money. plantation and the refinery is enabling environment for How has this project transformed in Jinja called Bidco. the project to start. Enabling Kalangala over the years? project means what? When you move around, here the When did this project start The developments like major activity was fishing and people and what model is it using? infrastructure was supposed were so poor, but as we talk now you This project started at to be put in place by the see permanent houses have started around 2003, and it has government. When we came developing, you see the road is not all done a lot for this Island. here, the roads were bad, that good but somehow but its ok, it You find that this was one there was only one ferry, has been graded, last time for you to of the poorest Island in the one ship laying to move from ferry point to come to this previous years ranked one – Kalangala but out of place, it would take you about eight of the poorest districts in the the negotiations between hours but now only a few minutes previous years. But as we the private sector and you are here. So all this development talk today, it’s one of the best government, government is coming because of this project and performing districts because agreed to improve our farmers are contented unlike other of this oil palm project. infrastructures in terms of agricultural products where there are transport like you see now, a lot of fluctuations and there are What Model Has been we have two ferries, this one disappointments. adopted to ensure project is crossing and another one success? is crossing the other side. Many Farmers in other enterprises This project was started That project came basically complain of big price drops making on the model of 4Ps . These because of the agreement Farmers unhappy, how do you keep include the Government, between government and price stable for oil palm? outgrowers, Private sector this project, then the power, Here these people in the 4ps and then there is IFAD. Each those were some of the model, put up what we call a pressing of them had a role to play. request by the private sector formula, it’s not only us to determine Of course in the beginning which were met by the Mr Abbey Mukalu, Human Resource Manager of Oil Palm Uganda the price of a crop, there is a formula it wasn’t all easy but through government. Then you look for determination which was agreed resilience they all played at the issue of land, Okul as upon by these four stakeholders and their roles and made sure a company, doesn’t buy the These ones also played a role, they an environment for them to grow the there is no way you can say that that the project is successful. land, its government through formed themselves into groups of small palms, an environment in a way that may be the private sector is cheating It’s one of the successful NOPP or VODP at that time holders, I find that the nucleus has about farmers were able to procure seedlings. me. If you compare it with may be project working under 4Ps. which procures land and 6000 hectares but small holders have These seedlings are costly for example sugarcane, only the mill determines One of the first successful they lease to us to grow the about 4000 hectares all together making one seedling can go for about fifteen the prices but here, the government project in Uganda working palms. So ours is for them 10,000 hectares on this Island so they thousand shillings so that imagine seats on the committee, the private under 4ps. This was the first to show us the land and then really contribute a lot into the palm if you are planting 10 hectares or 20 sector seats on the committee, then phase towards development we grow the palms. The industry. hectares or 30 hectares, an ordinary there factors they consider like the of oil palm in Uganda that’s moment they provided the The International Fund for Agriculture farmer cannot have such funds. Then cost of oil on the world market per why they call it VODP1 land, they provided power, development (IFAD),Those were the they also provided inputs like fertilizers bag then they come out with the right and VODP 2. This was the they provided infrastructures funders of this project, at first, world and these were to be recovered for quit a prices which our farmers take up. So first phase and in the second like transport, we were able bank was there but later on some long period of time as long as you have it a very good project that’s say they phase, they plan of extending to invest into the palm oil small challenges they dropped out of palms all these requirements would be are very many people and as private through other parts of Uganda project. the project so IFAD remained funding given unto you then they are recovered sector and government, we tend to like Buvuma, Insagobe, The farmers, there is what the project. You see like farmers may the longest time possible so that’s why role it to other parts of the country to even other parts of eastern we call KOGPT Kalangala not afford to buy the inputs in cash you see farmers were able to grow this benefit other people■ Uganda where palm oil can Oil Palm Growers Trust, but because IFAD was there, it put plant. It was a matter of you showing NATIONAL NEWS FIRST EDITION OIL PALM NEWS 07 Make Oil Palm Growing National Campaign: Sekitoleko

ormer Minister districts across the country, 2024. of Agriculture but the myths and politics “ It is time to expose the key Animal Industry that surrounded the project leaders and decision-makers, and Fisheries establishment made it in Japan land utilization is andF United Nations retired difficult to scale across the thorough, three meters from envoy Her Excellency country and changed our the main road to a homestead Victoria Sekitoleko has plans.” Adds Sekitoleko. people have grown real high- called on the government to Since 2000, oil palm was level crops and earn out of make oil palm production a established in Uganda, before them, here, people leave a national campaign program establishing the high-value road reserve of half an acre, focused on eliminating enterprise received a lot of which is absurd, “ she adds poverty in the country. resistance from lawmakers We need a mindset change Sekitoleko said oil palm and other civil society groups for people to accept and has great potential to claiming this was going understand the value and transform every homestead to, the hypothetical fears importance of oil palm, we in Uganda because it led to a delayed start of the can make all roads be littered can grow in everyone’s projects and change of scale- with oil palm. The beauty backyard. out plans. The ministry of will be enhanced, tourism “ There is high demand agriculture then established will grow but also incomes of for oil in Uganda, yet the the Kalangala oil palm hub our farmers shall be catered supply is still low because through its vegetable oil for, and youth shall get more only Kalangala is supplying development project One. employment. I applaud the BIDCO, production Victoria Sekitoleko vegetable oil development has been centered in further says legislators, project for efforts to make Kalangala alone, yet extension leaders, farmers, oil palm production an research reveals that this and policymakers need to appreciated reality, we crop can grow anywhere, be exposed to countries expect the Buvuma plant to it is time the government Former Agriculture Minister, Victoria Sekitoleko like Japan and Israeli where open up for all farmers way rethinks its strategy to land use utilization is well out of the project scope. awards increased incomes Sekitoleko recalls that production and seedling Oil Palm production in maximized, this will help Everyone should access and poverty eradication during her time as Minister development but later this Uganda, we envisaged appreciate the resource that seedlings.” Concludes measures through high- for Agriculture, there was a did not take root due to Kalangala to be a nucleus exists if we are to help our Victoria Sekitoleko■ value enterprises..” Said vision to make Kalangala a several reasons. district that would supply country attain its vision Sekitoleko. nucleus district for oil palm “Then as we planned oil palm seedlings to other

Bungoma Kalangala main road Smallholder farmers sort their fresh fruit bunches after harvest 08 OIL PALM NEWS FIRST EDITION RESEARCH FOCUS OIL PALM: Takes Over As Uganda's Growing Sustainable Investment

he Island and sustenance. Africa and soil conservation. The referred to currently imports over Complex in Jinja has also Ssesse Island USD 100 Million worth of invested in environmentally- where Oil Palm Crude whereas the same friendly effluent and sewage UgandaT Limited is located, can be produced locally treatment plants. In addition inherited the name from the generating jobs and income to driving macro economic time when the Island was for the farmers and saving growth, the project is also infested with tsetse flies the exchequer of a huge infusing Uganda with state- and all living beings were lumpsum, nothwithstanding of-the-art-agro-technology, removed from the island the fact of putting idle local skills development, utnil recent years where grassland to positive and thousands of jobs and a people starting moving back sustainable use. plethora of downstream in, in a sporadic manner Fishing has been the activities. more so for fishing. only source of income on Benefits for man at the The Oil Palm project in the island prior to the Oil Roots. Kalangala is a Government alm Project taking place.. The Kalangala Oil initiated and led project Agriculture is Uganda’s core Palm project is not only through VODP (Vegetable competency. However, lack an investment towards Oil development Project) of money and technology Uganda’s economy, but an with other investors through means that raw goods opportunity to immensely a Joint Venture between are exported, deferring improve the quality of life Willmar Group of Malaysia, economic benefits to on the Isalnd. So far, 1200 Josovina Commodities of more developed countries. workers have been recruited, Singapore and Bidco Oil Based on our fundamental including local university Refineries of Kenya each philosophy – “From the Soil graduates and a community a leader in their field. The to the Pan” – The investment has been created, completed joint venture between the is bringing to the country with housing and a three formed Oil Palm a fully integrated value recreational area. Uganda Limited and Bidco chain, creating and retaining Oil Palm Uganda Limited Uganda Limited. Put wealth within Uganda. At its and its partners in the together, the project is the peak the project will make projects have invested in single largest single foreign Uganda fully self-sufficient social infrastructure. The direct investment in Uganda in edible oils, removing the Roads are now passable all in recent times crossing need for nearly $100 million year round and the water over 150Million USD. of oil imports per year. points can be accessed This project is referred to The project represents with ease. Other forms of as the most promising agro a connection to not only Infrastructure and services industrial project in Uganda. the people but also to the are in the pipeline including An eco-friendly crop, land. Oil Palm Uganda/ electricity, schools, religious palm oil is a source of Bidco Uganda Ltd not only and medical centers. food security. In the fight adheres to global criteria for The long term benefits to against malnutrition in sustainable land usage, it has the economy of Uganda will the developing world, also helped to develop them. be massive. Initially, the A youth farmer weighing his Fresh Fruit bunch in Kalangala block palm oil is a healthy and These include a zero burning economy will save in excess affordable source of energy policy, erosion control of $ 75 million annually, money now used to import pam Uganda Ltd aspires even being considered crude edible oil from to provide the people for bio diesel in different abroad. On completion, of Kalangala District parts of the world. As a Uganda may also become a with a great opportunity result of the world’s rising net exporter of refined palm to immensely improve population and improving oil. The economy will also their quality of life. The economic conditions among benefit from the transfer of development plan for this the developing countries, technology and skills. project is tailored to provide there is an increasing global OPUL is doing this wide range of social benefits demand for edible oils and in a sustainable and to the local community, some fats. environmentally friendly of which we have already The Kalangala Oil Palm way. We are using zero burn started implementing. Project is an avenue for technique in our plantation, We have, for example, Uganda to tap into this ensuring that we improve started construction and growing market. Oil Plans the soil organic matter and maintenance of roads, set up have an economic life of an fertility. To provide cover a clinic and housing for our average 28 years. Oil Palm to newly cleared land and employe¬es. Uganda’s objective is that to control soil erosion, we Tapping into a gold Mine over this period, Uganda have planted leguminous The Oil Palm is a highly will achieve self-sufficiency cover crops which also productive source of Oil. For in palm oil production. add nitrogen into the soil. the reason, it has become the World class plantation This in addition to a well- prime source of Vegetable oil management practices are managed forest cover in the for many tropical countries being utilized to ensure a areas initially grassland, is and constitutes thirty four high yield of quality oil all of positive environmental percent of total edible oil year round■ benefits. production worldwide. Smallholder farmers display their harvest Through this project, Oil Some of its varieties are DISTRICT FOCUS FIRST EDITION OIL PALM NEWS 09 Impact of the Oil Palm Development Activities in Kalangala

St. Theresa Primary School supported by Oil Palm Uganda Bungoma ferry landing site in Kalangala Limited as a CSR project

BACKGROUND handling and loading their worth UGX 180 Billion productivity increases total an Impact Evaluation in compared to 0.1% in 2002. produce, managing the in 2017 alone. The table cash income in Kalangala Kalangala in 2016 which In relation to food security, Government of Uganda delivery of the produce below shows the progress by nearly UGX 5 billion found that 95% more houses the study found that 70.5% signed an agreement to to the palm oil mills, on each of the different annually, with nearly half were constructed using Iron of the households were develop the oil palm value managing the production project deliverables. of the income gain going sheets in 2016 compared food secure on the island chain in Uganda with loans given to farmers to non-oil-palm-producing to 40% in 2002. The study compared to only 16.4% BIDCO Uganda Limited and be the intermediary B. PROJECT IMPACT households. The LEWIE also found an increase in the in 2002. The respondents in 2003 in which the two between the smallholders study was led by Prof. percentage of households attributed the improved parties agreed to establish and the private sector - The Kalangala oil Edward Taylor of University with at least 2 sleeping rooms livelihood characteristics 40,000 hectares of oil BIDCO/ OPUL. palm project is the first of California, Davis. from 16.4% in 2002 to 78.6% to the increased household palm across the country commercial oil palm The Ministry of in 2016, most of which income resulting from the of which 23,500 hectares A. PROJECT PROGRESS scheme in Uganda and Agriculture, Animal Industry (56.6%) used electricity as growing of oil palm and its were to be established by has greatly contributed and Fisheries carried out the main source of lighting, multiplier effect■ the private sector partner The project has towards the transformation while smallholders would empowered the farming of Kalangala from being be supported to establish community in Kalangala among the 5 poorest 13,500 hectares. BIDCO who now have a strong districts in the 1990’s Table 1: OuTabletcomes 1: fr oOutcomesm the oil pa fromlm inv ethestm Oilent iPalmn Kala investmentngala in Kalangala also agreed to construct voice and are actively (UNDP 2010). The palm oil mills and a participating in the project in partnership with Table showing the benefits from the oil palm investment in Kalangala as at December 2018 refinery to guarantee decision making along IFAD carried out a Local 1. Registered oil palm farmers (number of farmers) 2,064 (37% female) market for the oil palm the oil palm value chain. Economy Wide Impact 2. Oil palm fresh fruit bunches harvested by farmers (Jan 2010 to December 2018 143,446 tons farmers produce. So far, the private sector Evaluation (LEWIE) in BIDCO has so far has planted the targeted 2017 and the simulations 3. Gross income earned by smallholder farmers (Jan 2020 to December 2020) UGX 69.6 billion established 2 Palm Oil 6,500 hectares of oil palm revealed that each 4. Monthly gross income earned by the smallholder farmers UGX 1.9 billion Mills in Kalangala and a while the smallholder additional acre of mature 5. Area under nucleus estate (private sector controlled) 6,500 Ha processing plant in Jinja farmers have planted 4848 oil palm adds UGX 2.2 6. Area under smallholder estate 4,848 Ha and guarantees market for hectares out of the targeted million annually to the 7. Smallholder establishment and maintenance loans disbursed to farmers UGX 52 billion all the oil palm fresh fruit 4,700 hectares of oil palm. Kalangala economy (UGX 8. Loans repaid by smallholder farmers UGX 32.4 billion bunches (FFB) produced The smallholder oil palm 1.9 million if we adjust by farmers. Government farmers in Kalangala are for price inflation). Of 9. Area under harvest by smallholder farmers (area with mature oil palm trees) 3,602 Ha established the Kalangala now on average earning this, UGX 800,000 goes 10. Average income per acre per year UGX 2.6 million Oil Palm Growers Trust UX 15.5 million per to households that do not 11. Average annual income per household UGX 15.5 million (KOPGT) in Kalangala household per year and participate in oil palm 12. Taxes paid by OPUL/ BIDCO to Government annually (2017) UGX 180 billion to provide extension 879 kms of farm roads production. The report also 13. Taxes paid by Private Sector Partner in taxes UGX 899.44 billion and agronomic support have been constructed. showed that a 1% (108.7 to farmers, provide oil The palm oil mills in acre) expansion in oil palm 14. Employment opportunities created at the Palm Oil Mill and Nucleus Estate 3,000 people palm seedlings and other Kalangala produced plantations raises total 15. Employment opportunities created in the smallholder scheme 900 people inputs to farmers, provide 24,927 tons of crude palm cash income in Kalangala 16. Farm roads constructed 879 kms marketing services oil in the entire 2020, and, by UGX 242 million and 17. Dividends paid by OPUL to the oil palm farmers (KOPGT) UGX 17.75 billion through ensuring the OPUL and BIDCO paid total real income by UGX 18. Monthly With Holding Tax paid by smallholder farmers UGX 20 million each month farmers implement best Government of Uganda 210.1 million; and that a 19. Taxes paid by smallholder farmers on dividends UGX 500 million practices in harvesting, taxes (on VAT and Income) 10% increase in oil palm 10 OIL PALM NEWS FIRST EDITION DISTRICT FOCUS GOLDEN HOTSPOTS Oil Palm Is New Mayuge’s Golden Gift: Mabanda

he selection and our farmers are going to and has a lot on health sector, roads and other establishment reap big.” Said Mubanda benefits. Says Mubanda supportive infrastructures of oil palm Mubanda, who The chief district will be greatly developed. production is a was formally Chief administrator says the The increased income keyT achievement slated to administrative officer in district already anticipates to Farmers is another position the district as the says , that oil palm is to boost opportunity the district richest in region and it’s been long overdue for income and infrastructure envisages, because if the Eastern part of Uganda. such commercial , golden in the district. Farmers have enough This has been revealed by crops to reach smallholder “Mayuge has suffered resources there will be Mr Martin Mabanda the farmers in other regions, the crisis of low sugarcane increased investments both chief Administrative officer he testifies that while in prices. Farmers have been in farming and the other of . bundibidyo district, he frustrated, so our farmers sectors which will help our In an interview with Oil saw farmers not only now need to diversify and economic development. Palm New team, Mabanda reaping from the palm oil oil palm is going to help “Oil Plam production disclosed that the district production but also from us a lot diversify and also requires a certain level was so excited with the oil the leaves of the oil palm increase the farmers income. of organization among palm project as this was plant which make good Unlike sugarcane where Farmers, we know that once going to be the springboard brooms. Farmers require a permit our farmers are organized, for transformation of “This Oil Palm if people to sell cane, oil palm our it will help in mobilization Mayuge to another status. know how to use it, they farmers will already be in of people so that they use Mr Martin Mabandha the chief Administrative “We are very glad that will never be poor again, I that data base and payments their resources properly, officer of Mayuge district the government of Uganda was in bundibugyo district become transparent.” Adds we shall be able to have chose Mayuge to benefit where I served for almost Mubanda out technical teams out from the National oil palm 15 years and oil palm was Mubanda further says the there in the field to guide farmers is that this is a new get better incomes. We also project. This was based on a major crop there and National Oil Palm Project Farmers on how to manage crop, it can fetch a lot of expect more employment. our ecological suitability Farmers could harvest comes with multiple other and Production. So we look money and the good thing Mubanda urged farmers and am sure our ability for production then the opportunities, saying forward to a successful also here the government to work with district to handle. We are excited surplus or the droppings there will be an all-round and improvement in their is bringing improved extension teams saying because this is going to help are prepared for small development cycle. The quality of life generally.” varieties and we expect the the focus was to support us diversify our income. Oil consumers, Palm oil is a opportunities will include Adds Mubanda output to be very high and women Farmers and youth Palm is a golden plant that nutritious oil on the skin development of the transport My Message to Mayuge the people will benefit and groups to engage actively■ Oil Palm Project Ends Masaka’s Long Wait: CAO “We waited for so however, production was out-growers are supported supported and takes off in long. It's our prayer never initiated by the and also to ensure that the , would be that when production vegetable development program commences. an opportunity for not only starts, the district gets project that was set “I’m optimistic that the Masaka district but also the hands-on and supports up in the neighboring programs are underway neighboring districts in the this project and also District, Kalangala. and we are about to take off region. First, as a source of signs a Memorandum of Initial arrangements to and we shall have another employment for our people Understanding with these identify land were made center within the region especially the youth, and companies that will be in and it was established that especially being housed also boost industrialization charge to ensure support there was no land for this by Masaka district to have in our region, it will also towards service delivery,” cause,” he adds. serious palm oil production boost the economy through says Nathan Lujumwa Lujumwa further here,” Adds Lujumwa local revenues and also Chief Administrative revealed that the new The Chief Administrative the national revenues by officer Masaka district. National Oil Programme Officer said the district had URA and we are hoping He appealed to the brings new hope to the focused on building an that if these revenues National Oil Palm Project district because there will out-growers Programme improve the district will to gazette Masaka as the be accrued benefits, these with the hope that the be able to enhance its key district for palm oil will range from payment availability of out-growers service provision through production. of taxes, employment of would increase the acreage giving better roads to Lujumwaa says since the youth and women, Masaka Cheif adminsitrative officer Mr Nathan Lujumo under cultivation. our communities, health 2005, Masaka district and also they expect to He further called on services, education but has been waiting to engage with them in hesitant to engage in oil palm Four Ways Group of companies government support supporting the entire service join Uganda’s Palm oil other Cooperate Social farming, however, some of was leading in private and intervene to expand delivery system.” Lujumwa producers’ basket and Responsibilities. these individuals are now ready investment in palm oil planting the project and also further explains that the this had caused loss of “Initially the project to plant palm, alongside private there. building better production district was anticipating an hope. “In 2005, Masaka was hindered because investors who have also started “We have been working with partnerships that ensure economic boost at the end district was earmarked the available land growing of the palm trees.’ Said the Ministry of Agriculture Masaka farmers’ dreams of this long wait■ to be one of the oil palm was owned by private Lujumwa. through the National Oil Palm are realized. producing districts, individuals who were He reports that among others, Programme to ensure that these “Palm oil production, if DISTRICT FOCUS FIRST EDITION OIL PALM NEWS 11 Kalangala Generates Oil Palm Revenue as Host District: CAO Kalangala district is the parent district of Oil Palm in Uganda, Oil Palm News interviewed the Chief Admin- istrative Officer Mr Eria Magumba on the experience of being a pioneer district.. (See full interview)

access to loans. Our farmers can now access loan facility within two hours through their savings, they are bankable now. Farmers now have a cooperative bank where they are picking money, if you have a problem, it’s easy for you to go and borrow money within the day you have money and you do other businesses. So on average people are earning money and they have taken up this project and it has supplemented the income of people. All this is attributed to these plantations and partly this is money is given back to the community. Eria Magumba, The CAO Kalangala District So generally the average income for the district is a bit high compared to other regions. fishing as an activity has What is the districts salary earners let me say so. lowered down because there was over contribution to this project? On a monthly basis, people dispersion because people depended At the Development of are paid, you supply your on the lake to survive. getting brooms, we are seeing Lorries of and that’s why you see people are still this Project, the district palm oil when you have brooms leaving Kalangala to Kampala. here. administration was not harvested and every end of What are the Direct Benefits for the This is also an activity taking place on isolated, entry meetings the month people receive District? people’s plantations. Whenever they NOPP, what can it improve, how can it were within the district, their pays. Project is a good, but the district had a prune, people go and get these left overs do better? working through the lot of hope in the beginning, the district and make brooms and they are selling NOPP should work closely with the production and marketing How did covid Lockdown played a very critical role in organizing and we are soon any time we are going districts because when such project departments. The major affect Farmers? farmers, acquiring land from farmers to tax and get some little income. A sack come, into a district we except such activity here was fishing. We During this period of and educating farmers to accept this can have one hundred brooms, so if districts with such programs having had natural forest reserves Covid Lockdown, while in project. But we don’t have much direct every sack pays sh3000, that’s small some share, for example if we say and there was a lot of dealing other districts people were income coming in, yet it would also be money, you may find a lorry is paid a people are engaged in commercial in timber product, firewood calling for support from coming in to supplement our revenue trillion of seven hundred thousand if it’s farming, how do you tax these people and charcoal. When this government and asking of the district constantly to encourage leaving Kalangala, so this can also be an as a district, why should all money go to Project started, seedlings for money to buy food, other districts to know that when such income. the center and the district remains with were brought and the project people here were calling a project comes, they should play a role no money. Like as of now you would team started organizing the for permission to acess the and they should also add to the revenue Any Challenges see Kalangala shining more if it had farmers. The district further banks for monry withdraw. sharing if it comes to issues like when The only challenge we have is that some percentage even if its 0.01% out helped a lot to ensure that And we were receiving close I look at the last agreement that was Oil palm cannot exist with other crops. of that money into the district it would there was acquisition of to three hundred billion to a written, the district was excluded yet it That’s the only disadvantage I may say, boost the district and people would be enough land in this Project. trillion. This is because that played a bigger role, it also surrendered when you commit the land, you have to vigilant especially the department of So as of now the district time, we received a lot of land. commit for a period of over twenty (20) production. Council would be running alone surrendered to 6000 rains and thus farmers got a years. its activities very well, so you can’t hectares of land where these bumper harvest. So at least With Oil Palm Plantations are there Another challenge I may be talking eliminate yourself from the district then plantations are based. generally on average, each other livelihood projects happening? of is because I had people complain on say you are dealing with the farmers households was earning two Oil Palm has a lot of advantages, how to determine the price at which they alone. When you are coming in, you Where is the Market and to three million and above. you find on individual basis farmers are buying this palm, that the formula come through the district and the district How do farmers benefit? The people with bigger are doing other activities within oil is derived from Malaysia, some people has a role to organize everything, We have two plants plantations, those are really Palm. People are rearing goats, these have failed to understand that, how does sensitization issues that can come like processing the crude oil earning a lot of money. on private basis especially when palm Malaysia price determine the product issues of environment, all those social and we have many farmers, is three years and above, people are in Uganda. That’s the challenge people concerns are done by the district. So if people who were not initially How has Oil palm rearing cattle, Otherwise if you are have been talking about otherwise we you don’t give a room for a district to involved in the Oil Palm Production enhanced just planting coffee, sugar cane or any don’t have much problems as a district earn something out of this say you put growing but have taken it up incomes of people in other fruit, you will not graze animals especially the department of production every farmer who is supplying the palm and most of the percentage Kalangala? . so Oil Plam does not stop livelihood is committed to helping the farmers and pays either 0.0% of what has sowed like of people here earn money People are now organized projects. the cooperative of the farmers is also it was on seasonal produce■ from Oil Palm. They are like into a cooperatives and have There some individual farmers are highely organized, it is well managed 12 OIL PALM NEWS FIRST EDITION NATIONAL NEWS

Tractors given to KOPGT by Ministry of Agriculture, Animal Industry and Fisheries Palm Oil Prices a Cause for Celebration: Kalangala Farmers

il Palm farmers continued support. in Kalangala Balironda further informs price of Palm oil which district under that the productivity of the Oil compares favorably with Export market prices for their association Palm fruit garden is dependent Before 2018, one kg the prices of palm in Ghana Uganda Oil Palm calledO Kalangala Oil Palm on how it is maintained. Thus and Malaysia. Market prices for Uganda Growers Trust, have thanked urging Farmers to avail extra of palm oil was going This increased price palm oil have varied across the Government and Oil Palm care for the crops if they are to for US$0.77 in 2015 projection ends the cry the years. Before 2018, Uganda Limited for the better continue reaping big. of many farmers, A few one kg of Oil Palm was prices of the palm oil fruits “In the past, some groups and US$0.98 in 2017. years ago, oil palm farmers going for US$0.77 in 2015 over the recent years. of farmers used to claim The highest prices in in Kalangala District and US$0.98 in 2017. The Currently, a Kilogram of that the Palm oil Company expressed concern over the highest prices in 2018 Oil Palm fresh fruit is 854/= deducts exorbitant costs from 2018 for Uganda palm low prices of oil Palm. Led for Uganda palm oil per as of March 2021 costing the farmers from transporting oil per kilogram were by Martin Lugambwa, the kilogram were for exports over 700/= from way below their fruits to the extraction chairperson of Kalangala to Kenya, Rwanda, India, the then 500/= in the previous factory in Bwendero in for exports to Kenya, Oil Palm Growers and Burundi respectively. years. This the Farmers say Bujumba Sub County and the Rwanda, India and Association, they claimed The palm oil exports are is good enough as it covers refinery in Jinja. This we have that the prices have not categorized as: well the cost of maintaining discussed and the fees were Burundi respectively. gone higher than 500/= • Crude palm kernel a palm oil garden and further reduced. Farmers are now per kilogram since the and babassu oil (HS code enables saving for livelihood saving a lot from their efforts” plantations started yielding 151321) management. says Balironda. palm oil fruits. • Oil Palm and its According to statistics from He further says that, unlike However, the Oil fractions, whether or the Information and Research other crops, the price of Palm Palm Uganda Limited, not refined (excluding center, a local research firm oil fruits is determined by a Human Resource and chemically modified and in Kalangala, maintaining pricing formula derived from acting General Manager, crude) (HS code 151190) an acre of palm garden in a tripartite agreement signed Abby Mukalu indicated • Oil Palm kernel and Kalangala whose productivity on behalf of the Oil Palm that the prices of oil palm babassu oil and their is Shillings 1.050.000 every farmers by Kalangala Oil in Uganda are the highest fractions, whether or not three months requires at most Palm grower's trust. in Africa.“We have come a refined, but not chemically Shillings 700,000. The agreement provides long way and Uganda still modified (excluding crude) In an interview with Mr. for the determination of the enjoys the best oil palm (HS code 151329) David Balironda, the General Oil Palm fruit price based on prices.” • Crude palm oil (HS Manager of Kalangala Oil the international market and Kalangala has a total code 151110) Palm Growers Trust revealed the parity of importing palm of 1770 palm oil farmers, In 2020, the estimated that the current prices are fair oil fruits and crude oil from 700 of whom are already price range for Uganda and can cover maintenance Kuala Lumpur, in Malaysia. yielding palm oil fruits. palm oil is $ 0.98 and $ fees and thus thanked Oil Balironda said Farmers 0.98 per kilo■ palm Uganda limited for the are celebrating the favorable KOPGT General Manager, David Balironda NATIONAL NEWS FIRST EDITION OIL PALM NEWS 13 Dr Muwanga: Recollecting 20 year Journey of Oil Palm in Kalangala FOR THE BETTER: We can say oil palm has brought a multiplier effect in terms of household income. And at least now, we can say there is better land use because we had a big part of land that was not in production. It was just grassland and it was not at first put into use... There is improved performance in financial literacy. All the people under the oil palm project have bank accounts where they can keep their money and actu- ally they are earning on a monthly basis.

alangala is terms of household income Land Utilization: the alternative livelihood made up of 84 and employment. Oil Palm We as a district started project, to begin with for Islands while has given many people a long time ago, however, the first three years, it will they scatter in jobs, especially for the out- the takeoff was not for be catering for people who LakeK Victoria. As per the growers and even the other everyone, and some didn’t grow Oil Palm. administrative units, we side of the investor. And people did not grow oil Then those who grew have six sub-counties and at least now, we can say palm because of one or oil palm will be brought one town council. But sub- there is better land-use than two reasons. Some people on board after. And it is counties are made up of before, previously we had a didn’t have land where they alternative life because Islands here. There is one big part of the land that was would grow the oil palm, it is also going to cater to sub-county which is made not in production. It was just others preferred fishing the skilling of vulnerable up of 24 Islands, another grassland. but also the availability people and special one 27, another 13. That’s of land. In Kalangala, we interest groups. Through the uniqueness of the district Tourism: have ninety-eight (98) NOPP, People will build while they scatter on Lake Oil Palm has become villages but sixty-four (64) capacities to acquire even Victoria. So find that when a tourist attraction, both are landing sites. And you good skills especially it comes to service delivery, nationally, internationally, find that most of the people those who do not own service delivery in Kalangala on the continent, and also for at the landing site do not land. They are going to is very expansive given the the indigenous community. own land, so it became be trained and introduced nature of the district. People travel to the island very difficult for them to to some enterprises like But regards Oil Palm to enjoy the breeze created participate when it came salons, crafts, weaving, growth, the trials started a by the palms, the scenery to growing oil palm in the and others. long time ago, they started created by the Palm is great. Dr. Muwanga Edward, Production and Marketing Officer district. It has not been a smooth in the 1970s but the actual Luckily, even other services Kalangala District journey, but a resilience, implementation of the have improved like there is Coming of NOPP: continuous information to Vegetable oil development a transfer of services and a Vegetable oil farmers, and adoption of project (VODP) was the now we even have power on the monthly basis, many per capita income of 11.2 development project the PPPP model, this has launch of oil palm in and recently they launched now can afford to take their million per farmer. The (VODP) has transformed been a success. We want Kalangala district, we another project whereby we children to better schools. average is 940,000 Ugandan into the National Oil Palm NOPP to even be a more started in 2002 that’s phase are going to strengthen the shillings per month. And we Project ( NOPP) because successful project because 1, then phase was started in power system from Masaka INCOME Generation: can say that more than 600 oil NOPP is now bringing on it has great interventions■ 2011,2010 around that time. which will be connected We have two (2) factories palm farmers can earn to the board interventions and We had an investor and to the one that KIS is in the district and the per tune of 20 million per year. also scaling up to capture Dr. Muwanga Edward is the out-growers, farmers providing. capita income under the oil Over 600 farmers can earn whoever didn’t grow the District Production started growing the Oil Palm Though Oil Palm, there palm project has reached nine like 200 million. So you can the oil palm. This is still Marketing Officer as out-growers. As by the is improved performance hundred and forty (940,000) see that it has contributed to within the Oil Palm project Kalangala district/ last report, the old farmers by Farmers, the financial thousand Ugandan shillings. the multiplier effect in the area. They have introduced coordinator HIV. are totaling to one thousand literacy is high. All the This gives an average annual district. seven hundred and thirteen Farmers under the Oil palm (1,713), then the new have bank accounts where farmers are two hundred they can keep their money and forty-six (246). This is and they are earning every because Oil Palm started month. on this Island but of now, we have made an extension Education: to two more Islands out of Oil Palm has contributed the eighty-four (84) that’s to the performance of our Bunama and Buwembe, education in the district. the that’s where we have the investor (OPUL) has built new farmers that have several schools, imported started growing the oil palm. good teachers, and paid So, Oil Palm is basically them well, Previously, for on three Islands of example, the district got Kalangala out of the eighty- zero (0) first grades, but now four (84). So during our these schools have changed implementation, we can the trend, we get more than say that the Oil Palm has enough first grades. The fact brought a multiplier effect in that people are now earning A truck of the KOPTG transaporting fresh fruit A mature fresh friut bunch bunch from smallholder farms 14 OIL PALM NEWS FIRST EDITION PICTO STORY

Oil Palm Uganda Limited Procures Seedlings for New Oil Palm Hubs

il Palm Uganda Abbey Mukalu the Human which is going to run that to establish the oil palm production., areas for Buvuma. We think we can get Limited has Resource Director at Oil project. As private sector “NOPP has given us land in Kyotera and about 40,000 hectares of land in Mayuge procured Palm Uganda Limited we don’t deal directly with we are investing in Kyotera equally. So those from outgrowers up to Namayigo that’s seedlings (OPUL). the farmer but we deal with are some of the expansion programs we have the focus. So we are in Masaka, Kyotera to O enable availability of Mukalu reveals that them through some kind of other than Buvuma. And Mayuge? Mayuge and Buvuma. Currently those projects are seedlings for new farmers the distribution of the oil cooperative with everything will be the catchment area for Buvuma. But ongoing.” Revealed Mukalu■ across the country, the palm seedlings shall not we put there, inputs, those out growers are going to be catchment seedlings being prepared be done directly by OPUL fertilizers, seedlings then under a large seedlings but through the established that cooperative is the one to facility at Buvuma island is partnerships, which involve deal with individual farmers set to cater for over 500 new various stakeholders. This and know what each farmer oil palm farmers across the uis to ensure only ready and may have taken so much country. capable farmers access the seedlings and the timeframe “We have a broader loaned seedlings and inputs. in which that farmer will expansion plan it’s in high He appreciated the National pay.” Adds Mukhalu. gear, we have already Oil palm prject for support According the Mr Mukalu procured the seedlings, the towards the success of this , In Buvuma district where nursery has been raised new expansion Programme the nursery is set up, there for over 40,000 seedlings saying it clearly indicates is also already a hub which and these are for farmers. governments commitment to is going to run more projects Due to covid we had some the expansion. and OPUL had already delays , however, we are “The National Oil Palm deployed their staff, Started hopeful that these seedlings Project (NOPP) has done its construction of houses . will be ready by April part, they have secured the OPUL is also venturing in 2021 to reach the different land and they have given expansion programs outside Farmers, by this time, us the land to start as a Kalangala, these include we shall also have more company and even saw the Masaka, in Kyotera where seedlings being developed other day they advertised the National Oil Project has to give other farmers.” Said jobs for a hub, NOPP hub availed land to the company Oil Palm seedling nursery being prepared in Buvuma district PICTORIAL PULL OUT FIRST EDITION OIL PALM NEWS 15 Uganda’s Oil Palm

Journey President Museveni plants an Oil Palm tree to launch Oil Palm growing in Uganda

Agriculture Minstry officials inspect one of Preseident Museveni recieves a gift from Oil Palm Local Oil Palm filter the first Oil Palm garden investors after its launch

VODP Project |Manager Connie Masaba guides partners First Oil Palm seedling nursery in kalangala Buvuma Oil Palm seedling nursery being prepared in Buvuma as they plant first Oil Palm seedlings in Kalangala district district district

A Farmer prepares to plant his first Oil Palm seedling Farmers participate in preparation of Oil Palm seedling VODP Project Manager inspects an Oil Palm nursery in nursery in Kalangala district Kalangala district 16 OIL PALM NEWS FIRST EDITION PICTORIAL PULL OUT

Achievements of the Oil Palm Story Water Transport has been eased KOPGT Resource centre

Small Holder Plantation in Njoga village with farm roads, Kalangala district A Female Farmer in Kayunga Block

Ms. Nabosa E. old house and new house Harvesting

Mr. Balyanomutanda Ssekaja, a former fisher man Small holder oil palm farmers are Involved in other enterprises, in Bbeta East & West Blocks, Kalangala district PICTORIAL PULL OUT FIRST EDITION OIL PALM NEWS 17

Oil palm Growers Trust truck with farmer harvests being taken to OPUL mill The Kyabazinga of Busoga, Nadiope, watering an oil palm seedling during his tour of for processing Kalangala District’s oil palm project

An oil palm truck delivering fresh fruit bunches at the oil palm mill for processing farmers’ oil palm fruits at the mill

A couple that is part of the smallholder program giving IFAD Permanent Secretary inspecting the Buvuma new ferry under construction Harvesting delegates a tour of their oil palm garden in Mwanza

Smallholder farmers briefing MPs of the National Economy Committee of The oil palm nucleus at Bwendero during its early Parliament during an over sight vist stages (2008) 18 OIL PALM NEWS FIRST EDITION PICTORIAL PULL OUT

A fertiliser store which serves the oil palm farmers in Bugala island A farmer access road in the Smallholder garden

Fresh Fruit Bunches in the Small Holder Plantation Smallholder farmers house

First Oil Mill 40tons per hour, Bwendero, Kalangala district Alternative livelihoods: Small holder oil palm farmers are Involved in other enterprises, in Bbeta East & West Blocks, Kalangala district

Working Together for Success - Kigundu and his wife Ms. Nabosa E. standing next to her newly acquired bodaboda NATIONAL NEWS FIRST EDITION OIL PALM NEWS 19 Understanding Oil Palm Crop and its Opportunities

Oil Palm seedlings being managed at a nursery centre in Buvuma district

il Palm crop is a with number of opportunities produce our own oil we can palm, Expanding oil palm plantation crop, first of all the natural resource sustain our own demand crop coverage to consolidate Obut uniquely this base endowed in this country. the national demand as well oil palm production just like is a long term benefit crop Uganda is fertile country there as selling the surplus to the sugarcane is entrenched. which basically is intended is no question about that we neighboring countries which Wherever oil palm goes there to commercialize Agriculture have all the factors that are already have the demand will be industries there will and also create rural favorable for growing the which is exceedingly high be employment there will industrialization. oil palm because the rains that we cannot even the meet other institutions coming Uganda being a country are evenly and uniformly the demand so those are up like generation of power that has got all the conducive distributed bi-model rainfall some of the opportunities schools and health facilities. climate and ecological patterns which along lake and of course we are fighting Palm Oil crop brings a factors for producing the Victoria around beyond poverty in our country. lot of holistic opportunities, oil palm along the Victoria 1000mm average rainfall The oil palm crop is a wherever there is oil palm region including the islands, received throughout the cash crop, which if planted we know that the economic originally palm oil crop year which is conducive for has a total productivity life activities of the farmers will was planted in Kalangala production of oil palm the of 25 years. After these 25 improve lifestyle, enhance district and is now expanding soils are suitable and in most years, oil palm trees will be Farmers awareness on the to Buvuma including the parts of the country and most cut down then new planting social economic situations mainland areas so oil parts of the country especially will taker course like now as eg farmers knowledge about palm is becoming a very target areas that we are talking we approach mature stage HIV/AIDs, helping them important economic crop for about as well as the cheap for oil palm plantations in on saving and investment, industrialization, livelihood labour that exists and the Kalangala. farmers will now also focus improvement and of course market opportunities because In order to explore the at some economic activities ultimately answering the this crop right now as we talk value chains of palm oil , like transportation, engaging visionary mission of the Uganda imports a substantial factories have already been in storage, provision of country of reducing poverty amount of oil from outside set up in jinja to refine the Agriculture inputs■ and transforming lives which takes away the foreign products of oil palm. from subsistence farming exchange which would be “The crop is expanding, Charles Sembatya Project to commercialization an alternative money that we so we need to maintain the Agronomist. Agriculture. would have used in other areas strategy of developing oil The Oil Palm crop has come because this country we really Charles Sembatya, Project Agronomist 20 OIL PALM NEWS FIRST EDITION LAND AQUISITION Land Acquisition Process For Oil Palm in Uganda Insight: Kabuye Kyofa is the Mobilization, Participatory and Planning Officer at National Oil Palm Project (NOPP) Previously an Oil Palm Coordinator under Vegetable Oil Development Project Phase One and Two. He gives us the insights and procedures for land acquisition ,

Kabuye Kyofa is Mobilization, Participatory compensation and development. and Planning Officer

he project finding land in the supposed to buy land or that indeed Okay, you've come, come to us and we offer the entered into the second phase started 25 kalangala because it government has been you're new and you want to buy land. of the project, one because of years ago, was the most suitable in buying land on a “Willing my land yes, then we sit down Of course initially we the, the economic nature and though the the scale of preference, Buyer Willing Seller” and discuss the procedures? We advertised as the project. Then the level developments which practicalT bit started so Kalangala as their basis. Basically we discuss what are we going for?, VODP2 did various kind of have reached, most people were about 17 years ago when most suitable and the follow all the policies and what are the do's and don'ts?, mobilization system reaching now demanding for more and government signed a agreement was they the rules and regulations What are my rights as a person out one on one. They talked to the level of awareness had now cooperating agreement develop 10,000 hectares and consenting land and with them we use our own. land owners who then brought become a bit high, people were with BIDCO Oil of Oil Palm been divided we are guided by the In land acquisition, we have in their titles. now informed fully informed Refineries Limited which as far as benefits 35% the Constitution of Uganda three things which are very During that period, the than before. So they were BIDCO was supposed small holder farmers .we are guided by land important to focus. 1.The practice was one receives 50% demanding for more money. to establish a company and 65% for the nuclear Act, the acquisition people using land and what are of the money, they would then The government can even to operate In Uganda system. So in order to policy (two policies), the their details.2.Details of those clear the land. The major aim pay to the landlord. So we because these BIDCO full fill the agreement land policy, the NEMA people who just have access to is to allow project acquire land had to seek permission drives refineries is based in BIDCO established Oil Act and even the Forestry land. These may not necessarily without any encumbrance that a cabinet decision. And we Kenya and it was a Palm Uganda limited just act, For each of these be using it but they have access. was another condition OPUL or took on the second policy of consortium of companies as you got the details on ACTs we have the reason 3.Ownership. So that of course the planting company BIDCO acquisition, buying land as it planters practitioners and the other side, and Oil why we are guided by you go with the country's land in short and their subsidiaries is, land as it is means you the then merchants so they Palm Uganda limited those various ACTs in categorization in terms of the do not want and cannot touch landlord you bring your title, established a company in was responsible for the land acquisition ownership. any land which has got any we'll go through the procedures Uganda which is called developing plantations process, but only in all The “Willing Buyer Willing encumbrance, so it must be we agree, then we value you, BIDCO UGANDA is mainly plantation in all is the major one Seller” basis applies to both encumbrance free. after the valuation guided by LIMITED. company in Kalangala . is the Constitution of the landlord and the tenant so That was the agreement. the Chief government valuer, Land compensation However, they were the Republic of Uganda. squatters if you want to use that Government must give them they value of tenant at once and and acquisition remain supposed to do it jointly That's why we buy right. So when we buy land or encumbrance free land. So the then we pay both at once so that a very big component hand in hand with the land as a piece. I mean, the processes will go through practice of A landlord's clearing the landlord takes his portion for successful small farmers because it would be land on landlords, Much of the time off the tenants became hard after and tenant takes their portion implementation of palm his small holder farmers a waiting with Seller landlords who offer the land some time, especially when we too■ oil in Uganda. As an lacked the knowledge Buyer basis, because also agreement, government and the expertise of oil we are guided by funders pledged to look for land palm growing being a international practices to total get the 26500 new crop in the country. of “Free Prior Informed hectares and offer this So government had, it Consent.” land to BIDCO Uganda provides 7700 acres of Free prior informed Limited those subsidiary land to the company, consent. (FPC) policies, companies to grow oil which is leased for 99 means if you want to buy palm in the country. years and 99 years means my land, first of all, One But with the following for planting cycle of oil must be informed in time. the studies which were palm because each cycle Sometime you must give conducted between 1992 takes a maximum of land owner something up to 2000 discovered twenty five years, twenty to understand what they some areas were found five years, at the same are being told. Secondly, to be very suitable for time, had to mobilize One must agree, whether oil palm growing. And farmers on their own the landlord or the tenant. these were kalangala lands, so that they can How we acquire land, Bugala island in be taught and guided on the processes we go particular Bundibugyo how to grow oil palm. through, One must agree the mainland we talk of Land Acquisition:, we as a person, then when those areas around the are more of engaged so information is availed to . much in land acquisition. a tenant, As a tenant on So they started with So, government was this land, one must agree Land owners sign off documents leasing off their land for oil palm planting NATIONAL NEWS FIRST EDITION OIL PALM NEWS 21 SUMMARY OF THE RESULTS OF THE LOCAL ECONOMY IMPACT EVALUATION OF THE OIL PALM DEVELOPMENT ACTIVITIES IN KALANGALA

he Kalangala Local Economy Wide retail sales rise by UGX farming households (non-oil Impact Evaluation 141 million while crop and palm) applied fertilizers. (LEWIE) was livestock production increase designedT to evaluate the by UGX 15 million and 14 Conclusion: impact of oil palm production million respectively, and The LEWIE findings on incomes, welfare, other production in Kalangala revealed the importance of production activities of project increases by UGX 105 oil palm cultivation not only beneficiaries (oil palm farmer million. for oil palm farmers but also households) as well as non- for the Kalangala economy beneficiaries in Kalangala 5. Impact of increased as a whole. First of all, as oil district. The LEWIE was productivity on oil palm palm acreage expands, the led by Prof. Edward Taylor plantations: farmers’ demand for labor and of University of California, The study found that a other inputs also increases, Davis, who worked with a 10% increase in oil palm and payments to the oil palm team from the Ministry of productivity for smallholder labourers spreads benefits to Agriculture, Animal Industry farmers raises real income in their households. As profits and Fisheries and was Kalangala by UGX 4.3 billion increase in oil palm farmer completed in October 2017. shillings with UGX 1.8 billion households and wages rise in Below is a summary of the being gained by non-oil laborers’ households, these findings: palm producing households households’ expenditures on A view of the oil palm garden part of the nucleaus estate and UGX 2.2 billion goods and services supplied 1. Per capita income: shillings being gained by oil by other households and The per-capita expenditures that the real income in households that do UGX 210 million. palm farming households. businesses in Kalangala of both permanent residents not cultivate oil palm increases by UGX Households of the oil palm increase. Market linkages (both oil palm farmers and 800,000 and oil palm worker households 4. Impact of the change in price for oil labourers also benefit from spread the benefits of oil palm non-oil palm farmers) and by UGX 110,000. The additional acre also palm fresh fruit bunches: higher productivity on the oil production through the entire workers in the estates (both increases retail sales in Kalangala by UGX The findings showed that a 1% price palm plantations with a real Kalangala economy. The study nucleus and smallholder) 660,000 and expands non-agricultural increase raises the value of oil palm income of UGX 225 million. reveals how the Kalangala exceed the average per capita production by UGX 490,000. fruit production by UGX 187.5 million. economy has grown in tandem income of Uganda. Kalangala The study also showed that a 1% increase This results in a UGX 410 million real 6. Fertilizer application: with oil palm expansion, and residents were found to earn in mature oil palm acreage (equivalent to income increase in Kalangala. The study 73% of the oil palm why there is a high correlation approximately UGX 3.3 108.7 additional acres of mature oil palm) showed that the price increase stimulates households applied fertilizers between acreage in oil palm million (USD 908), the worker increased the real income in Kalangala by production in all sectors except fish. The while only 16% of the other and new business formation■ households’ expenditure was UGX 2.8 million (USD 778) while the average per capita GDP for Uganda was USD 615.3 in 2016.

2. Business formation: There has been an evident increase in the establishment of businesses in Kalangala. The study found that 20% of all oil palm households operate at least one small business in Kalangala while 50% of non-oil palm farmers operate at least one business in Kalangala. The average age of the businesses was 5.2 years and business formation increased after 2007 and especially after 2010, when oil palm harvesting started in Kalangala.

3. Impact of additional acreage of oil palm: A 1 acre expansion of oil palm increases the total real income earned in Kalangala to UGX 1.93 million annually. The additional acre also increases employment in oil palm by approximately 31 additional worker days the largest income gain is to the oil palm producing households whose real income raises by UGX 1.02 million per additional acre of oil palm. The findings showed Harvetsed fresh friut bunches from a small holdeer farmer 22 OIL PALM NEWS FIRST EDITION PROGRESS MAAIF Ministry of Agriculture, Animal Industry and Fisheries

THE REPUBLIC OF UGANDA Mission: To transform subsistence farming to commercial agriculture Vision: A competitive profitable and sustainable agriculture sector

www.agriculture.go.ug

NATIONAL OIL PALM PROJECT

Reporting Date: Project Code: 1508 September 13, 2019 Amount: USD 1.21 Namayingo, Bugiri), & Kalangala); areas for September 2020 Effective Date: Project duration: Ten Million Masaka hub (Masaka, research trials in the Project Name: National November 29, 2018 First (10) years Loan Amount: Project areas: Buvuma Kalungu, Kyotera) Mukono different agro- ecological Oil Palm Project (NOPP) Disbursement Date: USD 75.82 Million Grant hub, Mayuge hub (Mayuge, hub (Mukono, Buikwe zones.

Goal: To sustainably increase rural environmental and social in smallholder Oil Palm Palm Growers. Inclusive rural transformation incomes through opportunities standards. development. • To establish a regulatory through Oil Palm investment. generated by the establishment • To diversify and and institutional framework of an efficient oil palm industry Specific Objectives: enhance resilience of rural for the Oil Palm subsector Objective: that complies with modern • To scale up investment communities among Oil PROGRESS FIRST EDITION OIL PALM NEWS 23 Unveiling National Palm Oil Project

Ministry of Agriculture, Animal Industry and Fisheries Overall goal: Inclusive rural transformation through Oil Palm investment. Development objective: To sustainably increase rural incomes through opportunities generated Vision: A competitive profitable and sustainable agriculture sector social standards.

Mission: Component 1: Scaling-up Component 2: Livelihoods Component 3: Oil Palm Sector To transform subsistence farming to commercial agriculture investment in smallholder Oil Development Framework Palm development. What is National Oil Palm of 5000 hectares of Oil Palm i. To develop smallholder i. To promote sustainable and i. To establish the enabling Project (NOPP)? plantations will be planted by Oil Palm plantations inclusive livelihoods conditions for the smallholder farmers, of which ii. To establish and support opportunities – both sustainable scaling-up and The National Oil Palm Project Oil Palm Grower agricultural and non- long-term development of 3500 hectares will be under organizations; agricultural – for oil palm and the Oil Palm subsector. (NOPP) is a ten-year project, project development _nancing iii. To establish and support non-oil palm growers; facilitating a Public-Private- and 1,500h will be from farmers’ infrastructure for Oil Palm ii. To mitigate the potential Producer-Partnership (4P), that own funding or with support from development social and land tenure was signed into effectiveness on financial institutions. A total of related risks. November 29, 2018, between the 3,230 smallholders are targeted. Government of Uganda (GoU) Mayuge hub will cover parts of and the International Fund for Mayuge, Bugiri and Namayingo The National Oil Palm Project (NOPP) targets vegetable oil means there is growing private sector Agricultural Development (IFAD) districts. 42,885 households, representing 214,425 beneciaries, interest in the oil palm industry; and smallholder – the Public sector. The IFAD over the project life. Of these, 11,079 households will farmers in other are keen to take nancing includes a US$ 75.82 Masaka Hub: be targeted for Oil Palm growing, 23,739 households up the crop. million loan and a US$ 1.21 million This hub is also referred to for alternative economic opportunities and 8,067 We see the area under smallholder oil palm grant. as greater Masaka Hub. A total households for mitigation of social risks. Justication production will increase to 19,700 hectares; 1,580 The lead agency is the Ministry of 5,000 hectares of Oil Palm The investment in Oil Palm in Kalangala brought kms of access and farm roads will be constructed; of Agriculture, Animal Industries plantations are to be raised by about a substantial and transformative socio- 100 metric tons/ hour Crude Palm Oil milling and Fisheries (MAAIF), smallholder farmers. A total of economic impact in the district. The Project piloted capacity will be installed in Uganda; 23,922 implementing NOPP through a 2808 smallholders are to bene_t an innovative public-private-producer-partnership households will be enabled to take up alternative Project Management Unit. The from the project. Masaka, hub will (4P) through an integrated processor/nucleus estate/ economic opportunities; 16,193 people will have other key players are BIDCO include parts of Masaka, Kalungu smallholder model. Some 1,8002,063 households and improved ownership or user rights over land; and, a Uganda Limited – the Private and Kyotera districts. rms beneted directly as oil palm outgrowers, while 10% increase will be realised in yield on the oil palm sector, and Smallholder farmers – another 3,000 people gained employment on the demonstration plots through improved agronomic the Producers, who together have Mukono Hub. nucleus estate and mill or on the smallholders' plots. practices. shares in a holding company for This hub will raise 5000 hectares The expanding national and regional markets for primary processing. of Oil Palm plantations by The project will be implemented smallholder farmers. Of this, 3000 in ve “hubs”: Buvuma hub, hectares will be raised with project comprising of Buvuma district, loan funds and 2000 hectares Mayuge hub, comprising of using farmer own financing or Mayuge,Namayingo andBugiri from financial institutions. 2,778 districts,Masaka hub comprising households will be targeted. of Masaka, Kalungu and Kyotera Mukono hub will include parts of districts, Mukono hub comprising Mukono and . of Mukono and Buikwe districts, and Kalangala hub, comprising of Kalangala Hub (Bugala and Kalangala district. outlying islands), where it will consolidate the Key Results Areas (KRAs) investments to date. The project NOPP will concentrate its will support development of 500 activities on smallholder Oil Palm hectares of Oil Palm plantations development as detailed below: by farmers using own _nancing In Kalangala Hub: Project or accessing production credit activities will support 200 farmers from financial institutions. The to establish 500 ha of palm using Project will also support farmers commercial loans; and support with immature palms with those with immature oil palm fertilisers and maintenance of the plantations established towards plantations. end of VODP2. NOPP will undertake research activities in different parts Buvuma Hub: of the country to determine Project activities will be suitable areas for future oil palm undertaken on Buvuma Island in expansion. Areas for research Buvuma District. trials include Mid Western, A total of 2,500 hectares of Northern and Eastern Uganda, A smallholder plantations and 5000 firm commitment by the private hectares under nucleus estate. A sector to invest in the CPO mill to total of 2,063 all holder farmers serve the local supply by farmers are targeted. in these hubs is a requirement Mayuge hub: for development of the Oil Palm Under Mayuge Hub, a total plantations. 24 OIL PALM NEWS FIRST EDITION SUCCESS STORIES Smallholder Farmer Social OBITUARIES

Empowerment in Kalangala Recognition of Farmers that he project enabled produce and merchandise. smallholder farmers to One of the female project beneficiaries have contributed acquire and adopt a new in Kalangala called Euralia Nabbosa to oil Palm crop and new technologies said “Before the Oil Palm project, I was Project but are in T crop production and management. just a house wife. My husband was a The project led to increased incomes that fisher man and I cultivated a small plot now deceased enabled household farmers to educate of land for some food. If my husband their children in good schools. In didn’t give me money, then I could not Oil Seeds Component Kalangala, 83% of the households could buy salt or soap. not educate their children before the When the LCs came to teach us about James Epilo was a project. It has been established that the growing oil palm, my husband said he committed agricultural oil palm project equipped farmers with would continue fishing and he didn’t professional with the capacity to educate their children want to be a farmer. So, I registered and keen interest in rural in good schools. Kalangala has 22 decided to become a farmer. I now have Mr. and Mrs Lawrence Mutagubyas newly transformation and primary schools (18 Government aided, a garden of 1o acres for myself and 3 completed house one private and 3 community schools), acres for my children. development work. He 3 secondary schools and 2 tertiary I have been able to move from the had core competencies institutions . Despite the presence of wooden house in which we used to live in the implementation of these schools, some farmers send their and now I have built this house here. programmes in agricultural children to neighboring districts like You can see I have put a garage because sphere including Kampala and Masaka which are known I also want to buy a car. I am also dying agricultural extension, to be of a higher standard than those in to buy a plot on the mainland in Masaka, agribusiness value chain Kalangala district. The project enabled so that I can put up rental houses. So far, development. As Oil farmers to meet medical expenses and in I have bought one plot in the trading Seeds Coordinator Under oil palm a clinic was set up at Bwendero center in Kalangala. I also want to get Vegetable Oil Development to provide health services. more farm land. I want to be a land lord Project. The project encourages land owners and be able to give my children school He was energetic, result and tenants to register with KOPGT fees to go to the best schools. oriented, quick to assimilate as smallholder farmers and empowers I would still be just a housewife who new ideas, concepts and them through the formation of unit and sits at home waiting for my husband to eager to learn and innovate block committees, and membership come back from the lake and buy salt, 39.5 acres. Mr. Kigundu was and currently earns UGX and continuously enjoy in the Kalangala Oil Palm Growers food, clothes, soap, and other household initially a subsistence farmer 3,500,000 per month. He has Association, (KOPGA). In the units things. Now, I feel I am a useful woman, earning a monthly income of also diversified into alternative taking on new duties and and blocks, farmers are given skills in I have built the house in which we live, UGX 100,000 in 2005 but is livelihoods that include goat, responsibilities. group dynamics, leadership, business and I am so happy that I am a farmer of now a prominent commercial Cattle and turkey rearing. He James recently got management, project planning oil palm.” farmer who currently earns has been able to marry and involved in an accident as and management, monitoring and Mr. Balyanomutanda Ssekaja is an UGX 4,750,000 per month. managed to construct a house he was on his way home, evaluation, financial management and oil palm farmer in Bujumba block, in He employs three permanent and educate his children, in His contribution to Oil seed credit and saving training. Through early 2000, he was a fisherman earning labourers of Ssesse origin good schools in Kampala. in Uganda is unforgettable. such organizations farmers learnt how 200,000 UGX per month. In 2005 on his plantation. He also Mr. and Mrs. Mutagubya He will be remembered for to elect their leaders, conduct meetings when oil palm was introduced, he was managed to buy livestock to Lawrence are oil palm scaling various Oil palm and make reports. Farmers are now hesitant to participate since returns from diversify his earnings using farmers in Bujumba block who technologies. organised under Ssese Oil Palm Growers oil palm were to take a minimum of 5 the savings from oil palm pioneer harvesting farmers of May His Soul Rest in Cooperative (SOPGCO). years before they are realised. When growing. He has managed to oil palm in 2006. Peace. In KOPGA, the smallholder farmers he realized how the livelihoods of his construct a house and educate The have managed to his children, two of whom construct a house and live a hold annual general meetings and elect neighbours and other members of his Kalangala Oil Palm their leaders every two years. Women community were changing as a result of have attained University comfortable life as witnessed Farmers make at least one third of the unit, block, oil palm growing, he decided to register degrees. in their home. and KOPGT leadership. Some of the oil with the project in 2008 with 6 acres. He Ms. Nanyonga is small Ms. Namubiru is small palm farmers have taken up political later expanded to 8 acres and now has an holder oil palm farmer in holder oil palm farmer in 1. Zalwango Betty - leadership at different administrative average production of 5.5 tons of FFB Bbeta East block, she used to Mulora Village, Bbeta East Bbeta West levels because of the capacity they have per month. His monthly income has depend on her Late Husband block, I was a local brew 2. Kidomoole Njawuzi from the project. There is increased since increased to UGX 1,800,000 per for all her needs as he was a seller struggling with life. 3. Kageme - Bbeta East agricultural productivity was one of the month. With this income, he has been timber dealer. When he passed When I heard about Ebinazi 4. Augustine - Bbeta remarkable achievements of the project. able to acquire a car, construct a house, on, he left her with some I asked the leaders in my area West Farmers shifted from subsistence and educate his children. land measuring 8 acres. She to give me more information. I 5. Kalanda Charles - farming to production for income. Mr. Balyanomutanda now employs needed money to look after started to plant on my 4 acres Bbeta West The smallholder farmers have been three labourers, one permanent and two the children and family at and have bought more land 6. Kasule Gingo Godfrey linked to the only commercial bank on seasonal. He informed the survey team large. She was convinced by now to expand. “Oil palm is Bujumba the island through which they receive that he is planning to set up another her children to grow Oil Palm my father and mother as my 7. Kaggwa Charles - their loans from KOPGT and their oil palm plantation on Bubembe island as it’s the in thing in Bugala. life has changed, I have built Kagulube earnings from oil palm sales. This has where he had acquired 10 acres of She has not regretted as the a good house and able to look 8. Namusoke Betty - exposed them to the use of financial land. Below is a caption of Mr. & Mrs. income has educated her after myself” Kagulube children and been able to build Am a small holder oil palm services in volumes that have attracted a Balyanomuntanda’s house before the 9. Kankaka Patrick - second financial institution in Kalangala project and after the project. a good home and her dream is farmer in Mugoye Village, Bbeta East district. Money saved is being used to Mr. Samuel Kigundu is an oil palm to buy a car. Mugoye town, the additional buy physical assets like land, vehicles, farmer in Kayunga block who started Mr. Ssessanga is an oil Income from our Oil Palm building permanent houses and setting growing oil palm in 2006 with only 4 palm farmer in Kasekulo is an garden has helped us educate up businesses such as wholesale acres of land. After realizing that oil heir in the family. He started our children and look after my and retail shops. The improved road palm growing was growing oil palm on some grandchildren. I have 7 acres network especially to the oil palm farms profitable, he, jointly with his wife of the land. He is currently under oil palm■ has helped farmers in marketing their expanded their oil palm plantation to growing oil palm on 15 acres PROGRESS FIRST EDITION OIL PALM NEWS 25 Kalangala nolonger FACT FILE Technology the Island of Poverty Processes In Oil Palm Production Promising future: Daniel Kikoola is the former Resident District Commissioner (RDC) to Kalangala district, however, unlike many , he is proud to be a native of the now great kalangala district and one of the pioneer Farmers of Oil Palm 20 years ago. Daniel over the years was previlaged to be District Governor of Kalangala approximately (20) twenty years . Kikoola gives his recount on what drove him into Oil Palm farming and what were the key driving factors to the possible growth of this once politically castigated enterprise.

when you eat in the morning you project. its evident , this is not what need a refreshment in the evening it means to be rich but you can see .but am proud that oil palm brought the housing you can see the vehicles us roads that reach all the fishing motorcycles these are all fruits of places which wasn’t the case before. the oil palm project. Some of the Oil Palm products Transport: So it’s not only for There are many invisible benefits, the oil palm farmer but it’s for when you go out there, you may be every person. Then I don’t know surprised to see that the children of BIDCO Uganda Ltd. is the only where you passed but there is those people its an indicator that company of its kind in the region to water transport the ferry. But it was people have the money. have a fully integrated enterprise seen by government that we need Lastly, Even with COvid here, we resource planning (ERP) and to put up reliable and safe means have seen some development, there intelligence resource planning (IRP) of transport. These are the things has been creation of employment. systems. BIDCO was the first company am showing you to prove what oil You know these brooms that are in the sector to venture into electronic palm has brought if it had not been used as requirements at schools, commerce and the first to network all this project the data component these are made from those leaves its multi-location facilities, through wouldn’t have been necessary let of the oil palm trees. Women are V-Sat and the Internet. me put it that way ok it would be getting engaged in that you see BIDCO’s modern refinery produces good but there wouldn’t be any trucks and Lorries. Of course we palm oil to international standards. justification for them so what am have a challenge and we are going It has mechanical and automated trying to show us that the oil palm to see how we manage that because handling systems that operate continuously. Bio-mass powered project has done so good. they over prune and that’s not good boilers that produce superheated Poverty Eradication; The but these are people who never steam, used to generate electricity Mr. Daniel Kikoola, Former COVID-19 lockdown era, RDCs thought they would benefit from through turbine generators. The lower Residence District Commissioner, Kalangala District were very powerful , we were the the oil palm project. Am saying this pressure steam from the turbine is ones offering travel permits, In is very good after all we are done used for heating purposes throughout Kalangala, farmers were here not to with the fisheries which was one of the factory. Upon refining, the oil is ask food but to ask to use bodaboda our basic activities we have done separated or fractionated into liquid hen the my land was to be taken to run to the banks and withdraw it badly the lake has been badly oil palm away. It was quite very clear. and solid phases by thermo-mechanical money. They told us their money harvested and there is much that is means and the liquid fraction also project The third one , which was deposited by the investor and being done by the UPDF and other known as olein is extracted, which is was being is now very evident as I they needed access. Right and left organizations to see that we put used extensively as a liquid cooking introducedW and I had three will tell you is that other they were asking for that, when you order to the lake but this is a good oil. Furthermore, Vitamins are added elements that drove me to components that were part look at the attachment area for the alternative for our communities■ and the products are fortified to ensure support the project. of the oil palm project the consumer benefits to the optimum. One is that I am a born that people don’t know is BIDCO’s processing operations are of this place ,I have seen actually government is part automatically controlled and routine my grandfather and my of the project. This is part sampling and analysis by process father all dying in absoulute of the project we are seeing control laboratories support smooth poverty and I was wondering that is part of the oil palm and efficient operations. whether we should continue project, I was talking about BIDCO’s laboratory ensures that with this trend , so I thought electricity you can find other key tests are conducted appropriately. hard about this oil palm parts without electricity and Today BIDCO’s laboratory possesses project that was being say why kalangala but it was state of the art equipment such as the promoted and when we went part of those requirements Near Infra Red System, which tests to discuss about it I saw it that we see that are bearing moisture content of the oil, while was a good opportunity for fruits for now. simultaneously undertaking a myriad our people Then we are taking about of other tests. This makes certain Two, its layout was very roads, the network here is accuracy, in all processes a merit inviting, am saying many wonderful, to be honest passed on to the consumer under the projects come up and say we before, we did not have a Soil to Pan Philosophy. want your tittles, collaterals network, but now when you Institutions and households have there was nothing of that traverse the island, it’s not access to high quality brands such as kind, all you had to was to like anywhere else. Kimbo, Cow Boy, Ufuta, Golden Fry have the land and then give Of course our roads are and the uniquely Ugandan product the requirements to grow the still not so good and require Fortune Brand. The Uganda National oil palm. So I wasn’t worried maintenance but we all know Bureau of Standards fully recognizes that maybe my peoples land that a road is like a stomach BIDCO products. 26 OIL PALM NEWS FIRST EDITION PROGRESS RESEARCH OIL PALM RESEARCH GUIDES PRODUCTION LOCATIONS IN UGANDA

RESEARCH: Dr. Gabriel Damulira a senior research officer of National Agricultural Research Organisation (NARO) based at National Agriculture Resource Research Institute (NACRI) in Namulonge is head of the Horticulture and oil palm research program. He is also the coordinator of the oil palm research in Uganda.

economically and sustainably in research-informed policymakers research materials to use in the Islands of Kalangala. that the new areas were potential conducting adaptive trials. Before In 2005, the establishment areas for oil palm production. the end of VODP, new trials were of commercial production of oil Trials were then established established in Gulu and Amuru. palm started in Kalangala. As in Masaka, Mayuge, Buvuma, Going forward, since we need of today, we have about 11,484 and Bugiri, from 2005 under other areas where oil palm can be (eleven thousand four hundred the Vegetable Oil Development grown more research is necessary. and eighty-four) hectares currently Project. From the results of this And still under research, even in the under oil palm production. research, these have now been presence of production constraints. Nevertheless, after commercial established as commercial hubs But having gone through the production started, it was realized with more research being done in history of oil palm research in that Bugala Island alone could Rakai under the National Oil Palm Uganda, I would want to say that not accommodate the acreage the Project. (NOPP) oil palm has many opportunities, country needed without breaching That notwithstanding, the when look at the oil palm demand its ecological capacity and this process continues and it's or generally vegetable oil demand development meant researchers anticipated that in the next in Uganda is extremely high yet had to look at other options. ten years, those places having the production is low. Currently, Therefore, research started undergone commercial production we stand at 240,000 (two hundred along with the offshore districts of there will be also a need for other and forty thousand) metric tons of Mayuge, Bugiri, and Masaka. In areas under which oil palm can vegetable oil demanded annually. all these processes, research takes be grown. And that’s the reason But when you look at the current the front position because we under NOPP, we are looking at a production, we are not yet even first do the research then inform situation where we are to establish 100,000 (a hundred thousand) the policymakers and also the other fifteen (15) adapted trials metric tons. Meaning that there investors that where you are going across the country or in other parts is still an opportunity to produce oil palm can be economically of the country to identify other the deficit and also to offset the grown. possible areas where oil palm can vegetable oil imported from So having realized that there be grown. To emphasize that, we outside the country■ Dr Damulira explaining the history and impact of was a shortage in Kalangala, are in the process of importing research in Oil Palm in Uganda.

A brief on Oil palm had done well, there research in Uganda was then nationwide Oil palm research research using materials started around that were brought 1900 when the first from West Africa introductions were made under National Coffee at the botanical gardens, Research Institute it was intended as a (Kituza-Mukono cash crop that would District), and trials were be used for enhancing established in 1971. the economy as well as ( Kituza, Nakabango, generating income, even Bundibuygo and Bugala though at the time it was Island.) not introduced directly From these trials, to the farmers. several observations Around 1940, a few were made which observation trials were showed that oil palm done, these focused can be grown in several on looking at how places but might not these materials can readily be commercially perform under Ugandan viable. The research in conditions. These Bugala Island returned research activities optimal yields that made showed that oil palm it sufficient for economic could do well in the purposes and thus it country. Seeing that was confirmed that oil these few introductions palm can be grown Dr Damulira shows a new variety of Oil palm being studied at Namulonge, NARO is breeding early maturing oil palm plants 27 GOU/IFAD

National Oil Palm Project (NOPP) Uganda

Pius Wakabi Kasajja Connie Magomu Masaaba Permanent Secretary Project Manager

OIL PALM NEWS OIL PALM Managers Monitoring, Evaluation and Learning

Anthony Nkwasibwe Grant Mpirirwe Meddie Lutaaya (FCIPS) Emmanuel Mukama Marilyn Stephanie Namukasa Roger Mulinde AnthonyW anyoto Operations Manager Finance & Admin Procurement & Contracts Monitoring Evaluation and Monitoring and Evaluation Monitoring and Evaluation Communication and Knowledge Manager Manager Learning Manager Assistant Manager FIRST EDITION FIRST DEPARTMENTS

Finance and Administration Procurement Department

Hudson Ssekimpi David Akol Alex Nakuya Amelia Mbabazi Olore Patrick Okanya ohn Kokas, Waigo Amuza Accountant Assistant Accountant Office Administrator Personal Assitant Procurement Asst. to Project Manager Operations

Charles Aguma Plaxeda Sunday Susan Lakwonyero Eng. Higenyi, Project Eng. Maraka Kabuye Kyofa Sembatya Charles Environmental Insititution Social Development Engineer Benyamin mobilization perspectory Agronomist

NOPP ADMINISTRATION NOPP Health Safety Enterprise Developement Officer planning officer Officer and Finance Officer 28 OIL PALM NEWS FIRST EDITION CONGRATULATIONS MAAIF GOU/IFAD Ministry of Agriculture, Animal Industry and Fisheries

Mission: National Oil Palm Project (NOPP) Uganda To transform subsistence farming to commercial agriculture

THE REPUBLI OF UGANDA Vision: A competitive profitable and sustainable agriculture sector

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NATIONAL OIL PALM PROJECT NOPP ongratulates H.E oweri Kaguta Museeni upon Successful re-election as President of the Repulic of Uganda.

Oil Palm News is published by the National Oil Palm Project implemented by MAAIF . P.O.Box 2466, Entebbe Tel: +256 752 485 082