Matooke Markets Development Project; Districts Of Operation

KAABONG MOYO KOBOKO YUMBE KITGUM

ADJUMANI MARACHA/TEREGO

KOTIDO

PADER ARUA THE REPUBLIC OF GULU

AMURU ABIM

MOROTO N NEBBI OYAM LIRA

AMURIA POVERTY ALLEVIATION DEPARTMENT(PAD) BULIISA DOKOLO APAC KATAKWI MASINDI NAKAPIRIPIRIT KABERA -MAIDO STATE HOUSE. SOROTI AMOLATAR KUMI HOIMA KAPCHORWA NAKASONGOLA BUKEDEA BUKWO SIRONKO PALLISA NAKASEKE KALIRO BUDAKA MBALE BUDUDA KIBOGA KAMULI KAYUNGA KIBAALE BUNDIBUGYO NAMUTUMBA BUTALEJA MANAFWA LUWERO KENYA IGANGA TORORO

KABAROLE KYENJOJO JINJA BUGIRI MUBENDE BUSIA MAYUGE MITYANA Presidential Initiative for Industrial Development (PIBID) MUKONO KAMWENGE

WAKISO KASESE MPIGI SSEMBABULE IBANDA

KIRUHURA LYANTONDE

MASAKA

BUSHENYI

MBARARA KALANGALA RUKU THE MATOOKE MARKETS DEVELOPMENT PROJECT (MMDP) -NGIRI RAKAI

KANUNGU (A Public Private Peoples Partnership)

KISORO KABALE 050100KM Sub-Counties of Operation as at 30th June 2008 : District: : Masha & Kabingo Rwanyamahembe, Rubaya & Nyakayojo Rukoni

IBANDA BUSHENYI N MBARARA KIBATSI KAGONGI ITOJO N MBARARA MASHA

KIRUHURA RUBINDI BWONGYERA IHUNGA NTUNGAMO KASHARE

KIRUHURA Karitima N Ruma KABINGO Kabandate Kasasa Mishera BIRERE Kiretwa NYAKYERA NYABIHOKO NTUNGAMO RWANYAMAHEMBE TC BUKIRO RUGAAGA ISINGIRO RUKONI TC KABINGO Lake Nakival RUBAYA RAKAI i RUKU- NGIRI ISINGIRO

BUBAARE RUHAAMA KAKIIKA BUSHENYI NYAKITUNDA KAKOBA RUBAARE ENDINZI KAMUKUZI RUGARAMA NYAMITANGA RWEIKINIRO

NTUNGAMO RUGANDO NYAKAYOJO NGARAMA ISINGIRO MBAARE Business Solutions to Rural Poverty KASHUMBA NGOMA NDAIJA KAYONZA TANZANIA KABUYANDA KIKAGATE BUGAMBA

MWIZI 0510KM TANZANIA KABALE NTUNGAMO September 2008 0510KM 01020KM

Poverty Alleviation Department - State House Development House Ground Floor, Room 11-18 P.O. Box 25497, Kampala Tel: 0414 346921

12 Foreword Mrs. Joan Kakwenzire, Senior Presidential Advisor ABOUT POVERTY ALLEVIATION

The high demand for matooke throughout the year is an indication that banana is a very impor- DEPARTMENT (PAD) tant crop in Uganda. However, the still faces many challenges which include, low productivity, relatively low production as a result of overdependence on rain-fed production, THE VISION FUNCTIONS OF PAD slow adaptation of productivity enhancement technologies, lack The Vision of the Poverty Alleviation of diversification among small- . Direct linkage between the President Department is Prosperity for all scale producers plus severe price and the communities. fluctuation and long market chain Ugandans. . Establishment of Demonstration resulting in increased transaction costs. So PAD developed the Farms. Presidential Initiative for Banana THE MISSION . Linking Researchers/Entrepren- Industrial Development (PIBID) eurs to H.E. the President. to address these challenges. PI- The Mission is ‘To transform poor . Establishment of agricultural BID strives to boost the banana communities into self sustaining industry through supporting key production zones. players in the industry. This sup- entities through best practices of . Networking and developing port includes training in banana agriculture, market-led production, partnerships/Attracting counter agronomy, soil conservation and value addition and to support science funding management, Pest and disease management, post-harvest han- and technology innovators’. dling, entrepreneurship develop- OTHER INITIATIVE DEVELOPED BY ment, business planning and new PAD ARE; markets development. PIBID is an initiative promoted by H.E. the President to THE OBJECTIVES accelerate development of the banana industry through In addition to matooke produc- research, increased productivity, value addition and improved The strategic objectives of the 1) The Presidential Initiative Against tivity enhancement programs marketing and markets. department are: Hunger and Poverty and markets development, PAD st Mr. Bazirake (1 left) explaining his fresh banana preserving 2) The Presidential Initiative for Goat has promoted Matooke value technology to President Museveni (2nd right). • To implement Presidential Directives Multiplication and Export addition technologies that have and Initiatives. been funded by government, these are, Matooke flour by Dr. Florence Muranga and Fresh banana 3) Bonna Bagaggawale. vacuum sealing by Mr. Bazirake, The Matooke juice preservation technology by Dr. Kyamuhangire 4) The Presidential Initiative for and other banana based products (e.g. crafts) are yet to be funded. • To increase household incomes Development of Model Agricultural through integrated agri- Production and Export Villages. Finally, I thank H.E. President Yoweri K. Museveni the Patron of PIBID for being the engine behind enterprises banana industrialization. I am also grateful to Professor Akin Adesina, of Rockfeller Foundation, 5) The Presidential Industrialization Steve Harris and Erastus Kibugu of TechnoServe Inc. whose profound interest, drive and support Fund resulted in the birth of theMatooke Markets Development Project. • To promote agricultural production 6) The Presidential Innovations zones, export villages and value Fund PIBID promotes: addition. 7) The Presidential Initiative For • Development of disease free banana planting materials. Essential Herbal Drugs and • To facilitate the formation of producer • Best practices in banana growing. Aromatic Oils Production And farmer groups and link them to Processing • Farmers in banana sector to be commercially oriented markets and affordable credit. through training and provision of information. 8) Presidential Initiative For Apiary Development • Improvement of banana marketing and markets. • To foster development partnerships 9) Presidential Initiative For Promotion • Value addition to banana and development of banana and also support science and of Fish Farming (Pond Fishing) based products. technology innovators that 10) Presidential Initiative For Scientific complement rural transformation Mrs. Joan Kakwenzire Achievements Awards. Head PAD 2 11 Banana Value Addition The Matooke Markets Development Project

University developed the technology Flour based products he Matooke Markets Development technologies for banana and dairy to preserve banana juice. TProject (MMDP) is one of the several cattle. programmes being implemented under c) To establish demo sites in conjunction The juice technology is yet to be the Presidential Initiative for Banana with the beneficiary farming funded by government. Industrial Development. MMDP addresses Banana communities, the productivity and marketing challenges Biscuits Fresh preservation faced by the farmers, whole sale buyers d) To promote the growing of fruits and and the retailers. vegetables. e) To demonstrate improved cooking The project is implemented in the districts stoves, utensil racks and improved of Mbarara, Ntungamo and Isingiro. latrine facilities etc. The choice of the area was influenced by the fact the above districts are the f) To replicate the productivity model to biggest banana producers and suppliers other small producers. in the country. g) Demonstration of water harvest for Banana irrigation and domestic use. Flour Implementation Agencies: The Project is jointly implemented by BROAD OBJECTIVE: the Poverty Alleviation Department of State House and Technoserve Inc. The broad objective is to reduce banana which is an international, non-profit transaction costs, encourage value addition processes, increase productivity Dr. Florence Muranga has spearheaded making development organisation that helps entrepreneurs in rural areas to and innovations with a view to improving the development of and banana production and marketing flour based products. build businesses that create income. It promotes business solutions to rural efficiency. poverty. Techno Serve has a regional The flour technology has been funded office in Nairobi, Kenya. by the government.

The MMDP is funded by the Rockefeller Banana Juice Foundation (RF). which contracted Technoserve to implement the marketing component while PAD intervenes at the Mr. Bazirake has developed technology matooke production level of the project. to preserve peeled matoke for at least seven days. Under the project, the key roles of PAD promoted Mr. Bazirake’s research PAD are: for fresh matoke preservation which a) To identify farmers and organise has received financial support from them for increased banana and dairy government. productivity b) To develop and deliver agricultural Our groups are encouraged to use organic manure Mr. Bazirake is currently scaling up his productivity modules to beneficiary and are trained to collect and use the cow dung. product on the market. farmer groups, and undertake training Mrs. Diana Mwerere of Nyakayojo Sub-County Dr. Kyamuhangire of Makerere in the best production techniques and collects and uses cow dung to fertilize her .

10 3 SPECIFIC OBJECTIVES: • Assist in the formation of Producer developments the abundant matooke fruit and its waste can be further more • Work with all stakeholders including Marketing Groups (PMGs) in the ru- ral areas. utilized as livestock feeds, raw material the private sector in the banana mar- for many industrial processes including keting chain from the farm gate to the • Provide business skills training for multinutrient mineral blocks, bio gas, consumer. the PMGs. charcoal making and culturing of • Improve post-harvesting practices in- • Train farmers in best agro practices. important starter cultures for industrial use. cluding harvesting, handling, packag- • Ensure increased production and ing, transportation and distribution. productivity of banana OBJECTIVE • Introduce marketing by weight. • Engage in market segmentation. The broad objective is to establish ways of industrializing, in a fresh form, • Encourage value addition • Perform and promote market link- AGT is one of the partners working with PAD to the post- harvested banana fruit and • Conduct commercial trials on new and ages. improve banana productivity. AGT can produce ten its by products. appropriate value-addition technolo- million plantlets a year. Mr. Nsubuga of AGT shows gies. Mrs Kakwenzire a disease free Mpologoma banana Specific Objectives. plantlet produced using the tissue culture method. Message from Mr. Erastus Kibugu the Country Director, In order to achieve the above purposes, TechnoServe – Uganda Fresh matooke preservation the following specific objectives will be carried out in two categories: The MMDP seeks to demonstrate that through working with producers and Matooke being a staple food for a smallholder matooke producers can wholesalers. big population in Uganda, the crop is (1) FREVASEMA production: be transformed from subsistence to harvested and transported in bulk to commercial producers and can earn urban centers. It has been established This category will aim at: incremental incomes by participating in that for every 100kg transported, 40kg (a) Peeling, inactivating enzymes, more efficient fresh matooke value chains. are in form of peelings and stalks vacuum sealing and packaging The project borrows on lessons learned in (waste). It is therefore uneconomical the matooke for easy handling, developing the banana industry in Kenya and a big burden for farmers and transportation and storage. where TechnoServe has successfully traders to transport unpeeled matooke (b) Adding value to the matooke by transformed the industry by reducing on the poor road networks, at high prolonging FREVASEMA shelf-life the number of market intermediaries fuel prices using reconditioned trucks. and easing marketing locally and in the dessert banana value chain. The Therefore, it is deemed cost effective internationally. key highlight of the model is to minimize market failures in the matooke supply to reduce the bulk of the matooke by chain,thereby realizing the full potential 40% and deliver to the user end (urban of an efficient value-chain. centers) only the required 60% to consumers. Currently, the 40% of A collection centre in Rwanyamahembe. selling of waste transported to urban centers Matooke on a preditermined date saves time for both is a nuisance, poses a big problem the farmer and the buyers. of garbage accumulation (510 ton Mr. Erastus Kibugu The next steps in project implementation per day in Kampala only) and costs are business model expansion, evaluation the urban authorities a lot of time of scalable processing opportunities, and money (over 13,000/= per productivity improvement of matooke waste ton) for disposal. Moreover, and other staple crops, diversification, the very plantations that produce the and support to growth oriented matooke matooke are deprived and depleted of The project seeks to develop a profitable businesses. this resource of green manure in form and competitive matooke industry of banana peels and stalks. This project in Uganda by reducing transaction Expansion of the model therefore focuses on establishing costs in fresh matooke supply chain The model has proved successful and is ways to industrialize post-harvested Mr. Bazirake (inset) checks the vacuum sealed thus going to be expanded to; matooke in a fresh form. In parallel fresh banana before delivery to supermarkets

4 9 o The tissue culture technique used AGT is a limited liabilities company - Increase the numbers Message from the Project co-ordinator, by AGT allows mass-production of found in Buloba, in . AGT a n d l o c a t i o n s o f Mr. Fred Mutebi planting materials whose natural rate is the first and currently only private Producer Marketing of propagation is relatively low. company in Uganda to use biotechnology Groups (PMG’s) in the hile bananas used to be grown exclusively for project areas and other o The planting materials produced are through tissue culture techniques for Wsubsistence, today bananas are as much a cash pathogen and pest-free, which is very micro-propagation of different crops b a n a n a p r o d u c i n g crop as coffee, tea or any traditional cash crop. important in farming. on a commercial basis. The Company areas. - Capture other oppor- The plantlets can be produced all directors are Swedish and Ugandan Indeed there are many households in Central, Eastern o tunities, especially the year-round. This is helpful in planning seasoned professionals, with many years and Western Uganda that earn their living on bananas other staples and the scheduled supply of crops of exactly ofexperience in the field of agricultural dairy component. alone. Hence banana production and marketing can be the same quality throughout the year research and entrepreneurship. - Diversify buyer linkages used for improved food security as well as increasing to consumers and more importantly and put emphasis on household incomes for the rural poor. to export markets. The Goal institutional markets However, the banana farmer (who is the major focus of o Compared to conventional planting PAD) still faces many challenges, the major ones are: materials, tissue culture derived The goal of AGT is to foster a sustainable This will be achieved plantlets have high quality, earlier and social-economical and agricultural through; o Undependable rain patterns more vigorous sucker production, as development so as to meet the future needs o Rampant pests and diseases, well as high yield advantages of say, of the Ugandan farmers by increasing crop o Maintaining soil fertility bananas. production, through efficient utilization of - Contracting a team of o Increasing productivity food technologists to o AGT has established nurseries and biotechnology tissue culture techniques o Under developed markets and marketing system demonstration gardens in 23 different analyze several value o Poor infrastructure addition opportunities areas. The objectives are: o High perishability This alternative prevents farmers (e.g. enzymatic action o on surface enzymes etc from sourcing planting materials from a) To provide good quality, disease-free on peeled Matooke, neighboring farms and by so doing planting materials of different crops, par-boiling of Matooke, reduce the spread of different crop in sufficient quantities to farmers flour processing etc), diseases and pests. through using modern internationally develop appropriate Our 232 groups collect Because the plant materials are tested and accepted tissue culture packaging and testing o matooke at a collection centre very small, it reduces transportation of products’ shelf-life, protocols and up to date equipment. where the buyer finds it. This costs. - Contracting expe - saves time on part of the buyer AGT trains farmers in modern r i e n c e d s t r a t e g y o b) To offer high quality agronomic and the farmers. agricultural practices, hence AGT does advisory/consultancy services to consultant(s) to help not only sell products but also offers customers by employing a dynamic determine the com- extension services which results in mercial viability of suc- qualified, dedicated and experienced The Matooke markets better crop management and yield. cessful technologies/ technical staff. processes, Development Project - Consumer trials to is designed to address Products & Services determine potential some of the above challenges. The project aims at helping size of market and farmers not only to sustain current production levels, but . AGT produces tissue cultured plantlets p r i c i n g p o i n t s f o r also increase productivity without damaging the natural of different crops. Today AGT is the potential products. resource base and improving marketing efficiency. largest single producer of banana - Evaluation of the role planting material in Uganda. AGT of rural based market offers advisory/consultancy services / business service on pre-planting and general farm centers in partial value Mr. Yasin Gumisiriza, a management of crops. addition of matooke farmer of Rwiziringiro cell . Establishment of soil and plant and other staples in area of operation but not analysis laboratory. - Testing different value in our groups has to ferry adding opportunities . Production of organic fertilizer the bananas from his farm a n d p r o v i s i o n o f (Rhizobium and Mycorrhizas) (6kms) to Mbarara town. business analysis and He indicated that he misses start-up support to work on Wednesday and AGT researchers at Work potential private sector Friday when he goes to town companies. to sell the bananas.

8 5 Many banana farmers market their product The project has raised the incomes of In addition, long-term relationships individually resulting in low price offers, small-scale matooke through organization have been formed, and some selling bananas at irregular intervals and of farmers into Producer Marketing productivity enhancement farmers not knowing how much they get Groups (PMG’s), training in basic business measures have been adopted. from their orchards. skills, especially those that highlight key market drivers, record keeping, Banana minimising costs while at the same production and time taking up opportunities to make reasonable incomes for themselves, and marketing systems can linking these groups directly with major be developed to increase wholesalers in the Kampala market. The couple belonging to one of our groups rural household incomes and in can now tell how much improve food security for That is not all, by shortening the value banana they harvest and the expected monthly the farmers chain, producers’ incomes are significantly income. increased and PMGs can then look to PAD’s contribution to the MMDP project engage enterprises that are wholly also ‘sell a story’ as they bargain is to ensure increased production and focused on value-added activities - with the wholesaler for a good price, productivity. So as a direct response to the notably matooke processing. payment method and reliability of challenge of low productivity, the project income. procured and distributed in-calf heifers  The wholesalers now make to enable the farmers get milk supplies, The project has delivered the Mr. Jude Asiimwe a Field Officer talking to an considerable savings as a result of shortened turn-round, reliable supply while at the same time harvesting the following results: insermination service provider. solid and liquid manure from the animals. source and better grades.  (Goats are being procured and distributed  The wholesaler-producer relationship is The fact that all PMG matooke sales  are recorded in a Sales Analysis book, as we write this report.) Imparted basic business skills to over symbiotic, in that the farmers have 6,000 smallholder producer farmers started getting more money, as is It has demonstrated to our partners in a practical way that the individual The project also procured and distributed in Mbarara, Isingiro and Ntungamo reflected in the current farm gate farmers do earn regular incomes out 55 in-calf Friesian heifers (Bos taurus) and Districts. prices which is (35-70% higher), than  of which savings can be made and the cross breeds thereof, to beneficiaries A total of 50 PMGs in the three before the project. This is because with which bank loans can be repaid. who had fulfilled the basic animal districts have been trained in the farmers do harvesting, grading, husbandry criteria like water availability, banana agronomy, zero grazing negotiate and bargain as a group, management, record keeping and before collective selling is done from Finally, I wish to note that it is gratifying pasture plot / feedstuff supply source that the majority of new bank loans for and appropriate animal housing (zero best agro practices. designated collection centres, in their  Facilitated the linkage of a critical localities. Agricultural purpose in the project areas grazing). The project constructed a few go to farmers in the producer market cowshed demonstration sites for the number of wholesale buyers, with  The banana farmers now offer a quality capacity to purchase from PMGs product, convenient collection point, groups that we have organized and farmers to ‘copy and apply’, with technical supported. backstopping from the project staff. at agreed intervals and business sorted and graded stems, and can The average milk production is about terms.  8 litres per day of which about 5 litres Facilitated farmers in the project are sold while the rest is drunk by the areas to gain access to financial Promoting Research beneficiary families in line with the products from the Centenary Bank. objective of improving nutrition. These loans have mainly gone into on-farm productivity-enhancement PAD identified AGT as one of the activities. he Poverty Alleviation Department development partners because of  Developed an in-calf heifer component Tworks with diverse partners and the following: to supplement human nutrition Researchers to generate new technologies through milk consumption, and which are either passed on to the farmers. o AGT can produce uniform plantlets of banana orchard rejuvenation through To this end, PAD works closely with any crop in big numbers and in a very Mr. Fred Mutebi animal manure. Agro-Genetic Technologies Ltd (AGT) in short time. This is an important aspect  During the period April – June the area of mass production of planting in commercial farming where the 2008, the 232 banana groups materials. markets require consistent quantity (8,234 farmers) sold 11,789 tons and quality crops in a scheduled at shs 1.028 billion. period of time.

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