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Quarterly Report APRIL-JUNE 2016

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Quarterly Report APRIL-JUNE 2016 Quarterly Report APRIL-JUNE 2016 Contract No. AID-617-A-13-00009 Disclaimer This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of CARANA Corporation and do not necessarily reflect the views of USAID or the United States Government. CONTENTS PROJECT OVERVIEW ...............................................................................................................1 EXECUTIVE SUMMARY ..............................................................................................................2 ACTIVITIES PLANNED AND PROGRESS MADE ....................................................................................4 OVERVIEW ................................................................................................................... 12 TASK 1: EXPAND ACCESS TO NEW HIGHER VALUE MARKET SEGMENT ................................................... 12 TASK 2: EXPAND AGROWAYS GRAIN HANDLING AND STORAGE CAPABILITES AND ESTABLISH 3 NEW VACS ........ 13 TASK 3: ESTABLISH MAIZE MARKET AND MIS .............................................................................. 13 COMPONENT B: INCREASE SALEABLE VALUE AND VOLUME OF SMALLHOLDER-PRODUCED MAIZE ...................... 15 OVERVIEW ................................................................................................................... 15 TASK 1: PROVIDE TRAINING IN IMPROVED FARMING AND PHHS PRACTICES .......................................... 15 TASK 2: PROMOTE MECHANIZED MAIZE SHELLING TO INCREASE EFFICIENCY AND REDUCE LOSSES ............... 16 TASK 3: BUILD BACKWARD LINKAGES THROUGH AGROWAYS’ EMBEDDED SERVICES TO SUPPLIER GROUPS ......... 17 COMPONENT C: DEVELOP MAIZE GERM AND MAIZE BRAN PRODUCTS FOR HUMAN CONSUMPTION ..................... 21 OVERVIEW ................................................................................................................... 21 TASK 1: AGROWAYS ESTABLISHES AN ALLIANCE WITH MAGANJO GRAIN MILLERS TO SUPPORT PRODUCTION OF MAIZE GERM AND MAIZE BRAN PRODUCTS ................................................................................ 21 TASK 2: SUPPORT PRODUCT DEVELOPMENT OF MAIZE GERM AND MAIZE BRAN PRODUCTS FOR HUMAN CONSUMPTION .............................................................................................................. 21 JUL-SEP 2016 PLANNED ACTIVITIES ........................................................................................... 23 MONITORING AND EVALUATION ................................................................................................ 25 COLLABORATION, LEARNING AND ADAPTING EFFORTS ...................................................................... 26 CROSS-CUTTING ISSUES ......................................................................................................... 27 GENDER ...................................................................................................................... 27 ANNEX I: EMMP ................................................................................................................... 28 ANNEX II: PROJECT SUCCESS STORIES THAT ATTRACTED MEDIA ATTENTION ........................................... 35 Nelima Undertakes Commercial Farming with Her Stepson .......................................................... 35 ANNEX III: EAGC REGIONAL GRAIN SECTOR NEWS ARTICLE ................................................................ 36 i ACRONYMS AND ABBREVIATIONS ACE Area Cooperative Enterprise AFO Agriculture Field Officer AGRA Alliance for a Green Revolution in Africa AHCA Alur Highlands Coffee Alliance ARD Action for Relief and Development ATEFO Africa Trainers and Entrepreneurs Forum BPFA Buyende Progressive Farmers Association CAO Chief Administrative Officer CDO District Community Officer CKW Community Knowledge Worker CPMA Commodity Production and marketing Activity DAO District Agriculture Officer DCA Development Credit Authority DCO District Commercial Officer DFA District Farmers Association DISO District Internal Security Officer DOP District Operations Plan DPMO District Production and Marketing Officer DPO District Production Officer DSOP District Sub County Operations Plan EAGC Eastern Africa Grain Council EMMP Environmental Mitigation and Monitoring Plan FtF Feed the Future GAP Good Agricultural Practices ii GBC Grains Bulking Center GF Grameen Foundation GIS Geographical Information System GoU Government of Uganda KASFAA Kaliro Small Farmers Agri-business Association M&E Monitoring and Evaluation MIS Management Information System MOU Memorandum of Understanding MTIC Ministry of Trade Industry and Cooperatives NAFADA Namutumba Farmers Development Association NAMAFACO Namwendwa Maize Farmers’ Cooperative NASECO Nalweyo Seed Company NBL Nile Breweries Limited NUCAFE National Union of Coffee Agribusinesses and Farm Enterprise OPV Open-Pollinated Variety ORDS Office of Relief and Development Support OWC Operation Wealth Creation PAS Principal Assistant Secretary PERSUAP Pesticide Evaluation Report and Safer Use Action PHH Post-Harvest Handling PHHS Post-Harvest Handling and Storage PMP Performance Management Plan PIN Production for Improved Nutrition PRS Performance Review System PSFU Private Sector Foundation Uganda R&D Research and Development iii RDC Resident District Commissioner RFA Request for Applications RPO Rural Producer Organizations SACCO Savings and Credit Cooperative SOW Scope of Work TA Technical Assistance ToR Terms of Reference ToT Training of trainers UCE Uganda Commodity Exchange UDB Uganda Development Bank UDET Uganda Development Trust UNADA Uganda National Agro-inputs Dealers Association UNBS Uganda National Bureau of Standards USA United States of America USAID United States Agency for International Development USG United States Government UVAMA Uganda Value Added Maize Alliance VAC Village Aggregation Center VSLA Village Savings and Loans Association WFP World Food Program WRS Warehouse Receipt System iv PROJECT OVERVIEW The Uganda Value-Added Maize Alliance (UVAMA) is a partnership between USAID, AgroWays Ltd., and CARANA Corporation. This three-year initiative has opened a new and consistent market outlet for smallholder-grown maize through value addition to maize grain and the use of processed maize by- products in food items. The demand for quality-grade maize at higher prices is an incentive for smallholder farmers to adopt better production and Post- Harvest Handling and Storage (PHHS) practices, resulting in increased saleable yields. Consequently, the facilitation of new investments in processing and storage facilities is improving the integration of farmers into AgroWays’ supply network. Figure 1: A fully grown maize cob resulting from UVAMA training AgroWays, the main private sector partner in the Alliance, was the first licensed grain warehouse in Uganda to operate a warehouse receipt system (WRS). It deals in maize grain in two ways. First, under the WRS, AgroWays cleans, dries, and stores maize grain for depositors at a fee. Secondly, the company purchases maize, cleans and dries it, then sells some of the grain to buyers and processes some of it into maize grits, sold to Nile Breweries Limited (NBL). The by-product from the process of making maize grits is a mixture of maize bran and maize germ that is currently sold to animal feed processors. To achieve its objectives of (1) commercializing smallholder maize farmers in the Busoga region, Ibanda, and Kamwenge districts to increase saleable yields and values; and (2) developing maize germ and maize bran products for human consumption to improve nutrition, the Alliance has organized its activities around three main components: Component A: Expand access for smallholders to a new, higher value market segment through AgroWays’ investments in new maize processing and storage facilities; establish three new Village Aggregation Centers (VACs) in the Busoga region; and develop a maize management and market information system (MIS). Component B: Increase saleable value and volume of smallholder-produced maize by training farmers in maize agronomy and PHHS practices; promote mechanized maize shelling to increase efficiency and reduce grain breakages; and strengthen AgroWays’ capacity to deliver or facilitate embedded services to its farmers. Component C: Develop maize germ and maize bran products for human consumption to improve nutritional outcomes by supporting Maganjo Grain Millers in the development and promotion of these nutritious products. 1 EXECUTIVE SUMMARY Activities carried out during the third quarter of Year 3 of the Uganda Value- Added Maize Alliance (UVAMA) have contributed to increased productivity by the project’s targeted maize farmers, expanded access to AgroWays and Maganjo Grain Millers markets, and greater investments in processing capabilities. Under Component A, AgroWays continued to carry out construction and installation works at its Jinja grain bulking center (GBC) for the new de-germer mill (which processes maize into maize bran, maize germ, and maize grits as separate by- products), as well as for the four new silos with a total storage capacity 10,400 MT. Two new installed silos, each with a Figure 2: Ambassador Deborah Malac poses with project partners during her capacity of 2,600 MT, are now in use with recent visit to Jinja installation of the second two 2,600 MT silos set to be complete in upcoming quarters. All silos and storage bins were shipped from the U.S. Installation
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