KICHWAMBA MIXED FARM PROJECT CONCEPT PAPER

1.0 INTRODUCTION/PROJECT BRIEF

KICHWAMBA POULTRY & PIGGERY FARM is a mixed farming enterprise promoting livestock farming activities (poultry and piggery production) as well as maize growing. The project farm is based at Kicwamba, Bunyaruguru County in the newly-created Rubirizi District. The location of the project farm is approximately 2 kms off the Bushenyi – Kasese highway and is within easy reach from the mains electricity supply grid and potable water sources within the area.

KICHWAMBA POULTRY & PIGGERY FARM has two livestock sections (i.e. the poultry rearing section and the piggery production section). The poultry rearing section is starting off with 7,000 layers and 2,000 broiler chicken which will grow exponentially in numbers with time and as the farm facilities and structures are gradually expanded to a full capacity projection of 10,000 layers and 4,000 broilers respectively.

The piggery farm section proposes to start off with 40 pigs which are projected to increase to a combined pig population of 600 swine by the end of the first year – on the assumption that the original 40 pigs comprised of 36 gilts (young female pigs that have not yet given birth) and 4 boars, and that each sow litters twice a year with each litter consisting of 8 piglets.

The main output products of the will therefore be eggs and broiler chicken and 6 – 7 month old pigs.

The maize farm is expected to produce sufficient maize crop for milling into poultry/piggery feeds with a surplus for sale as maize grain/posho on the open market. At a projected yield of 4.5 Metric Tons/Acre, the farm expects to harvest not less than 270 Metric Tons of maize crop per season, or 540 Metric Tons of maize crop in a single year of two seasons. The maize that will be sold on the open market should be able to generate sufficient supplementary income to support on-farm and off-farm production and operational activities.

In marketing its farm outputs, KICHWAMBA POULTRY & PIGGERY FARM will be targeting four distinct market segments: the broiler chicken and pig butcheries market segment; the thriving tourism and hospitality market segment around the Queen Elizabeth National park and adjoining Game Reserves; the urban supermarket and large restaurants/hotels market segment; and the individual customer market segment. The tourism and hospitality market by far has shown to be the fastest growing and most dynamic market segment for poultry products in particular (especially eggs and dressed chicken), while broiler chicken and pig butcheries are a rapidly market segment in Western Uganda with an annual growth rate of about 30%. The individual customers will be purchasing poultry products and market-sale pigs directly from the KICHWAMBA POULTRY & PIGGERY FARM. This segment is growing at 12% and has an existing customer base of well over

1

120,000 potential consumers within Rubirizi District and the adjacent Bushenyi District alone. The fourth market segment comprising of local restaurants/hotels and supermarket chains is relatively smaller but shows a lot of positive growth promise as demand for poultry and piggery products continues to grow fast and gain relative market share and prominence. KICHWAMBA POULTRY & PIGGERY FARM will also negotiate forward and spot supply contracts for poultry and piggery products to large supermarkets in Kampala but with area retail and out-sourcing branches in Mbarara, Bushenyi and Kasese towns (e.g. Shoprite, Nakumatt, etc.). These retail supermarket chains have more consistency in poultry and piggery product demand throughout the year as well as the capacity to collect from the nearest urban centres as outlined above.

KICHWAMBA POULTRY & PIGGERY FARM was founded and is headed by Byakutaga Robert. Robert is a well-educated, outgoing, dynamic and energetic agricultural entrepreneur who draws inspiration from his strong farming family background. Robert’s main advantage is that he has had a previous background exposure to livestock farming projects in Rubirizi District though at a much smaller scale/scope than what he proposes to do. The additional motivating factor that gives him special incentive to expand the farm is the fact that he already has a large farm space as well as personal savings and financial capital (equity) that he has already made good use of to install the piggery and poultry farming infrastructure, while using the excess land for maize-growing to provide feed inputs for the poultry and pigs raised on the farm.

2

2.0 STATEMENT OF THE PROBLEM

Rubirizi District happens to be one of the newly-created districts that were carved out of the original Bushenyi Districts by an Act of Parliament in July 2010. Being a new district, it faces enormous challenges in terms of setting up administrative infrastructure at Rubirizi; putting in place and spreading key physical infrastructure such as power, water and sanitation facilities, and roads to the more remote and outlying rural areas in the district; making and implementing socio-economic enhancement projects such as provision of schooling and primary health facilities; carrying out mass adult literacy education programmes as part of the broader programme to eradicate illiteracy and the rampant rural poverty; creating jobs and generating thousands of employment opportunities for the rural youth in the area -who represent the largest segment of the local rural population; generating and disseminating knowledge on how the local residents can make best use of the locally-available resources and trade/tourism opportunities in the area to expand their socio-economic and sustain their livelihoods; and most significantly, training and educating locals on techniques and methodologies of making the switch from low input-low output subsistence farming practices to high input-high-output commercial farming techniques.

Taking into consideration the above-highlighted local area development objectives and priorities, it is quite clear that it would be a big ask of the new district authorities to deliver the desired socio-economic development dividend to uplift its socio-economic standards and sustain livelihoods without the critical input and impetus from the private sector. Secondly, considering the nature of farming in Rubirizi District and its agro-ecological conditions, KICHWAMBA POULTRY & PIGGERY FARM believes that the livelihoods of the majority smallholder farmers can best be improved through the adoption and implementation of sustainable commercial agriculture (SCA) practices.

Currently the majorities of farmers in Rubirizi are not practicing Sustainable Commercial Agriculture and hence often face food insecurity and poverty leading to environmental degradation while in search for food. This is largely due to the following factors:

Lack of skills and knowledge e.g. what, when and how to grow. Lack of information on sharing and use.

Lack of research back up.

Gender inequity.

Little advocacy in Sustainable Commercial Agriculture.

Few marketing opportunities (information, skills and outlets).

Lack of access to credit facilities.

Lack of input supply and poor availability resources.

3

Other problems symptomatic of Rubirizi District that are closely associated with lack of know-how in the adoption and uptake of sustainable commercial agriculture include, but are not limited to:

The problem of massive youth unemployment – who by virtue of their numbers represent a very large idle, but unexploited productive segment of the population.

The problem of transforming and harnessing unskilled and semi-skilled youth in Rubirizi District into a core productive population segment with the requisite skills and know-how to practice commercial agriculture profitably and sustainably.

We have tourist centres within the immediate bounds and vicinity of the area that are growing in size and volume in terms of tourist arrivals and tourism revenue receipts but lack organized and sustainable food input supply.

It is also common knowledge that one of the best ways in which agricultural knowledge and practice on modern commercial farming can be disseminated to the grassroots farmer communities is through some forms of public-private partnerships involving specialized government agencies in a complimentary relationship with capable private sector players within the target crop/animal production areas. The agricultural enterprises set up and run by the private sector entities can effectively be used as demonstration centres to train, inspire, and guide the local farmers on novel approaches and techniques in scaling-up the productivity output of their individual agricultural commercial enterprises, and within this sphere, KICHWAMBA POULTRY & PIGGERY FARM would perfectly fit the bill as a self-starter agricultural commercial farming unit to drive and inspire change in the farming systems and habits of the Rubirizi District farming community that will create the much-needed impetus and momentum for a holistic and multi-dimensional development agenda for the area.

4

3.0 STATEMENT OF THE SOLUTION

KICHWAMBA POULTRY & PIGGERY FARM will use the following strategies to address these constraints to solve the earlier problem statement with rural communities in Rubirizi District as the target:

Capacity building for Sustainable Agriculture Capacity building for Production Techniques

Setting up a Demonstration/Training Centre for farmers at the farm

Providing/disseminating enhanced livestock (poultry and piggery) productivity inputs for commercial farming to the farmers

Commercial farming

3.1 Capacity Building for Sustainable Agriculture

The capacity need for peasant farmers and KICHWAMBA POULTRY & PIGGERY FARM are in particular:

Production techniques Marketing (farm planning and agribusiness)

Organization development

Advocacy skills

3.2 Capacity Building for Production Techniques

Under this programme component, the main aim of KICHWAMBA POULTRY & PIGGERY FARM is to increase income of the rural peasants and other vulnerable groups

in Rubirizi District from subsistence farming to commercial farming.  KICHWAMBA POULTRY & PIGGERY FARM will target peasant farmers, vulnerable community members (especially the youth) and Trainers of Trainers (TOT’s) and will consist of participatory, demand driven and objective-oriented training with the support to participatory gender sensitive monitoring and evaluation.

The content will be based on environmental sustainability, water conservation, making and application of organic manure, food security, post harvest handling, as well as livestock management, market orientation and optimal available resource use.

Within marketing, capacity building is based on a practical and gender sensitive approach.  The major contents are developing a farmer-based market based information system for the domestic market, facilitate the introduction of alternative income generating activities,

5

facilitate the formation of small holder business associations to trade linkages and research on appropriate and economically viable facilities of added value.

The main focus within the organizational development support component is on strategic planning and exploring innovative ways of KICHWAMBA POULTRY & PIGGERY FARM to corroborate and enhance impact.  It consists of facilitation or training.

3.3 Demonstration Farm/Training Centre

The KICHWAMBA POULTRY & PIGGERY FARM is intent on using its facilities/infrastructure as a demonstration farm for improved commercial poultry and piggery farming techniques to farmers in Rubirizi District. The farm will in this respect function as a training centre, where technical know-how on commercial animal farming will be transferred to farm households in the area. The farm will recruit and retain some young farmers and sue them as trainers to instruct the local farmers. To improve its effectiveness and operational capability, the farm will work in close cooperation with NAADS.

KICHWAMBA POULTRY & PIGGERY FARM will put in place log schedules for refresher courses and visitation schedules for farmers in the area. For instance, every fortnight (2 weeks), members of the staff will gather for a day-long refresher course; they will visit the farms in selected parishes (Miluka) in the district once a week and participate, from time to time, in two-day seminars on the latest technological and production innovations in agriculture.

3.4 Provision of Hybrid Poultry and Piggery Production Inputs

KICHWAMBA POULTRY & PIGGERY FARM will in addition to identification and training of farmers in modern sustainable commercial agriculture practices provide improved piggery and poultry breeds to selected individuals/groups in Rubirizi District. The main thrust of this strategy is to not only increase commercial livestock farming outputs at farm level within the district, but also to vastly improve the quality and market competitiveness of piggery and poultry products that would stand them in good stead to earn improved farm-gate prices and improve their family incomes for sustained livelihoods.

On top of receiving improved piggery and poultry breeding stocks, KICHWAMBA POULTRY & PIGGERY FARM will also facilitate farmers with the associated animal husbandry inputs like veterinary drugs and feed supplements to enable the selected farmers/farmer groups raise healthy and high-price fetching pigs/poultry products on the market.

3.5 Commercial Farming

6

KICHWAMBA POULTRY & PIGGERY FARM long-term plan is to initiate commercial farming activities. This is basically for sustainability as well as expanding its programs, of which its lessons/outputs will be spread throughout the rural areas in Rubirizi District for campaign against poverty.  This will ensure increased income at grass root levels to improve the livelihoods of the rural poor particularly focused on women, the unemployed/idle youth, and orphan /child-headed families.

Components

This includes two major activities that involve the following components:

Commercial Crop production:

Maize has been selected for organic production and demonstration purposes at the KICHWAMBA POULTRY & PIGGERY FARM.Maize is processed into maize flour and maize brand for poultry and animal feeds. At some later date, irrigation systems will be installed at the farm so as to cater for unpredictable weather phenomena to help in maize crop production during periods of drought.

Animal HusbandryThis will greatly support the practicing of sustainable commercial agriculture mainly in the area of manure making which include the following: - poultry and pigs.

To be able to spread the beneficial impacts of commercial piggery and poultry rearing in Rubirizi District as optimally and effectively as possible, it is the plan of KICHWAMBA POULTRY & PIGGERY FARM to support the farmers by using a Pig and Poultry Offspring Distribution and Rotation System. Under this system, KICHWAMBA POULTRY & PIGGERY FARM will reserve a quarter of the piglets produced by each sow (female pig) for distribution to farmers who will have been trained in piggery production and management techniques at the farm. Each farmer will be given one female piglet and one male piglet as his/her nucleus breeding stock, such that they also pass on a breeding pair to the next farmer once the first breeding pair they received from KICHWAMBA POULTRY & PIGGERY FARM have reached maturity and produced off-spring. In this way, the project hopes to create a chain distribution effect for pigs within Rubirizi District that should greatly assist the farmers in the area to own livestock and subsequently raise their incomes through sustainable livestock farming. The same system/process will also be used for distribution and spread of pedigree poultry breeds within the district basing on the KICHWAMBA POULTRY & PIGGERY FARM as the nucleus starting point. To ensure project success and sustainability, piggery and poultry breeding stock will only be given to

7

those pre-qualified farmers who will have been trained and comprehensively educated in modern sustainable commercial farming techniques at the demonstration farm, and have in place the basic farming infrastructure and facilities to commence production (i.e. established land and housing structures – where they can easily be reached for facilitation with further production inputs and extension support), plus of course, an aptitude and strong interest in doing settled commercial agriculture as a profitable income generating activity/vocation.

4.0 EXPLANATION OF KEY TERMS

Agricultural commercialization – Can be defined as follows:-

Farmers’ production is aimed mainly for sales. Production should be oriented to profit maximization. It should aim at the satisfaction of different needs and interests of

consumers. It is an agri –business that implies concept of business management. It leads to entrepreneurial achievements of farmers.

Baseline survey – a survey designed to establish initial conditions against which the effects of a finished project can be compared.

Commodity value-chain – is used to the overall group of economic agents (or the relevant activities of those agents) who contribute directly to the determination of a final product. Thus the chain encompasses the complete sequence of operations which, starting from the raw material, or an intermediate product, finishes downstream, after several stages of transformation or increases in value, at one or several final products at the level of the consumer.

• More precisely, it is used to mean the group of agents (or part thereof) who contribute directly to the production, then to the transformation and delivery to final market of a single agriculture or livestock product.

Commercial farmers – consider their agricultural/livestock farms as a small/medium/large business enterprise. Their main objective is to earn money and sell their agricultural products at a profit.

Contract farming - Contract farming refers to a system whereby a central processing and exporting unit purchases the harvests of individual farmers, and the terms of the purchase are arranged through contracts. It’s a range of initiatives taken by private and public firms to secure access to smallholder produce. The terms of the contract vary and usually specify how much produce the contractor will buy and at what price. The contractor often provides credit inputs and technical advice. Contracting is a way of allocating the risks between producer and contractor; the farmer takes the risk of production and the contractor the risk of

8

marketing. The basis of such arrangement is the commitment of the farmer to provide a specific commodity in quantities and at quality standards as determined by the purchaser and the commitment of the company to support the farmer’s production and to purchase the commodity. The intensity of the contractual arrangements varies according to the depth and complexity of the provisions in each of following three areas:

Market provision: The grower and buyer agree on terms and conditions for the future sale and purchase of the crop or livestock;

Resource provision: In conjunction with the marketing arrangements the buyer agrees to supply selected inputs, including on occasions land preparation and technical advice;

Management specifications: The grower agrees to follow recommended production methods, inputs regimes, and cultivation and harvesting specifications.

Environmental sustainability – maintaining the factors and practices that contribute to the quality of environment on a long-term basis.

Group dynamics - 1. Interaction of complex intra- and inter-personal forces operating in a group which determine its character, development, and long-term survival.2. Field of study concerned with determination of laws underlying group behavior.

Income generating activities – can be defined as rural activities involving crop and livestock production, processing, non-agricultural, artisanal and commercial activities. All these activities must fulfill certain conditions: in addition to being technically feasible, they must also be economically and financially profitable.

Lead Farmer - identified by members of his/her group as market oriented in production; innovative and always on the lookout for new technology and innovations. The farmer is the rallying point for technology development hosting the group’s technology development site (TDS), and through foundation technology multiplication increases farmer access to such new technology. They also provide a focal point for articulation of specific technology needs, farmer capacity development, and entry point for service providers.

M & E Matrix - The matrix provides a format for presenting the inputs, outputs, outcomes, and impacts—and their corresponding activities—for each program objective. It summarizes the overall monitoring and evaluation plan by including a list of methods to be used in collecting the data.

Nucleus model farming unit(s) – A farming unit specialized in production of an enterprise and has a value adding/agro-processing capacity, and linkage to a market. NAADS partnership with the nucleus farm(er) provides the focus for

9

establishment of an out-growers’ scheme; farmer and service provider capacity development; technology development and multiplication; as well as market access.

Organic farming/production - Organic farming is the form of agriculture that relies on crop rotation, green manure, compost, biological pest control, and mechanical cultivation to maintain soil productivity and control pests, excluding or strictly limiting the use of synthetic fertilizers and synthetic pesticides, plant .

Out-grower farmer system - Out-grower systems are schemes that provide production and marketing services to farmers on their own land. For Glover and Kusterer (1990), these generally connote a government scheme with a parastatal enterprise, purchasing crops from farmers, either on its own or as a joint venture with a private firm. Glover and Kusterer (1990) also use the term contract farming to refer to the same arrangement in the private sector, where farmer and firm engage in a forward agreement of production and marketing.

Out-grower systems should be seen as a partnership between an agro-industrial firm and farmers. To be successful it requires a long-term commitment from both parties. Exploitative arrangements by a company are likely to have only a limited duration and can jeopardize agribusiness investments. Similarly, farmers need to consider that honouring contractual arrangements is likely to be to their long-term benefit. It must be stressed that the decision to use the out-grower system modality must be commercial. Out-grower systems that are primarily motivated by political and social concerns rather than economic and technical realities will inevitably fail.

Public-private partnership - Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP, or P3. It can also be defined as a contractual arrangement whereby a private party

performs part of a government function and assumes the associated risks. In return, the private party receives a fee according to predefined performance criteria.

Semi-commercial farmers – these are farmers who use their agricultural enterprises to provide food for their family and cash to buy other commodities. Producing agricultural products at a profit usually remains their main objective, but on a reduced scale compared to fully commercial farmers.

Smallholder farmers - A smallholder farmer is one whose scale of operation is too small to attract the provision of the services he/she needs to be able to significantly increase his/her productivity.

Subsistence farming/farmers – typically produce a single agricultural commodity/output part-time as part of other part-time agricultural activities. Their main objective is to produce protein food for their families. Any surplus

10

agricultural products may be bartered with neighbours or sold on the local market to obtain cash.

Sustainable Commercial Agriculture - In the most general terms, sustainable agriculture describes systems in which the farmer reaches the goal of producing adequate yields and good profits following production practices that minimize any negative short-and long-term side effects on the environment and the well-being of the community. The major goals of this approach are thus to develop economically viable agro-ecosystems and to enhance the quality of the environment, so that farmlands will remain productive indefinitely.

5.0 PROOF OF KNOWLEDGE OF ISSUES PERTAINING

5.1 Status of Agriculture in Rubirizi District

Source of Livelihood

The major sources of livelihood in Rubirizi District are subsistence farming, dairy farming, cotton growing, banana growing and trading business. Other sources of livelihood in the district include: stone mining and fishing.

According to the 1991 Population and Housing Census, 82% of the households in Rubirizi District (formerly – part of Bushenyi District) reported farming as the main source of their livelihood (Table 1). Other categories of livelihood reported were employment income, trading, property income, family support and cottage industry.

Table 1: Distribution of Households by Sex of Household Head and Source of Livelihood in Rubirizi District

Source of Household Livelihood

Sex of Household Head Rural-Urban Distribution

Total

Male Female Rural UrbanFarming 81.8 83.2 83.7 24.5 82.2Employment Income 8.5 3.0 6.2 35.1 6.9Trading 3.1 4.3 2.9 24.4 3.4Property Income 0.3 0.4 0.3 1.0 0.3Family Support 4.3 6.9 5.0 6.7 5.1Cottage Industry 0.2 0.2 2.0 1.0 0.2Other 1.8 1.8 1.7 7.4 1.8Total 100.0 100.0 100.0 100.0 100.0

Source: Uganda Bureau of Statistics, Ministry of Finance Planning and Economic Development

Subsistence Farming

11

This is the major source of livelihood for all the households in the community. This is facilitated by the two rainfall seasons in a year (Tables 2 and 3). This enables community members to grow food crops like millet, beans, cassava and sweet potatoes twice a year. Both men and women do the growing of crops. The men were reported to be in control of the banana plantation and looking after cattle while the women were in control of the other food crops. Selling of bananas is the main source of livelihood for most households in Rubirizi.

Due to land shortage the poorest category of community members has access to less than ¼ of land. They reported that they were not able to grow enough food for their families on those small pieces of land. They, therefore, hire or rent land from those who have a lot of land.

The other food crops mentioned earlier are grown but on a small scale due to land shortage. Much of the harvests are for home consumption, though some surplus is sold. Women control the proceeds from such sales. Few households in the community have been able to grow coffee mainly due to land shortage.

Table 2: Quarterly Seasonal Calendar by Farmers in Rubirizi District

VARIABLES JANUARY-MARCH

APRIL-JUNE JULY-SEPTEMBER

OCTOBER-DECEMBER

Rainfall Availability 000 000000 0 00000000

Food Availability 00 00000 0000000 0

Income Availability 00 0000 000000 00

Water Availability 000 000000 0 0000000

Prevalence of Diseases

0000 000 0000000 0000000

Fuel wood Availability 000000 0000 00000000 00

N.B: Stones were used to indicate the seriousness of the situation. The stones ranged from 1-10

Table 3: Monthly Seasonal Calendar by Farmers in Rubirizi DistrictVARIABLES MONTH OF THE YEAR

1 2 3 4 5 6 7 8 9 10 11 12Rainfall Availability 1 0 2 6 3 1 0 0 2 6 8 3

Agricultural Activities 1 6 8 8 7 7 7 8 10 9 9 9

Cash Availability 2 4 5 1 4 5 7 7 4 1 1 4

Human Diseases 6 6 5 3 4 5 7 7 5 4 4 6

Pasture Availability 4 3 4 8 7 6 4 2 4 7 9 6

N.B: Stones were used to indicate the seriousness of the situation. The stones ranged from 1-10

Cotton Growing

12

Cotton growing in Rubirizi district is still a relatively new agricultural activity that is mainly practiced in Katerera and Kichwamba Sub-Counties which have the kind of climate and soil types that favour the crop. Like in most other agricultural activities elsewhere in the district, the growing/production of cotton is dominated by small-holder farmers whose productivity is still low as a result of production-related constraints that are a common feature of the Ugandan cotton industry such as lack of quality seeds, spray pumps, pesticides, fertilizers tools, and managerial factors. However, as a new agricultural enterprise in the district, the cotton small-holders are largely mostly receiving support in form of interventions, subsidies, and mobilization from international agencies and government

Banana Growing

Banana gained value as a cash crop during Amin’s regime when the market for coffee went down. Community members have resorted to banana growing because the market is readily available. However, banana growing in Rubirizi district is not as extensively done as it is the neighboring districts of Bushenyi, Mitooma, and Kibingo districts to the south. Most of the community members sell bananas to get some income. Being a perennial crop, bananas are grown throughout the year. According to the seasonal calendar by men, bananas fetch a lot of money when they are scarce. When bananas are in plenty the prices fall to as low as Shs. 1,500.

The problem associated with banana growing is the absence of leguminous crops such as beans and soya beans. Most people concentrate on banana growing without growing other nutritious crops. This had resulted in high malnutrition rates. According to national figures the rate is as high as 43% for the entire Western region. Health authorities in the region have indicated that anaemia, intestinal worms and protein energy malnutrition are the common conditions among the stunted and wasted children. Such conditions are common in the new districts of Kibingo and Mitooma where a lot of bananas are grown.

5.2 Importance of Farm’s Strategic Location in Supporting Local Area Development

The unique location of KICHWAMBA POULTRY & PIGGERY FARM gives the locals of Rubirizi District a clear head start advantage as it is situated right in the neck of one of the greatest tourist circuits in East Africa (i.e. Lake Edward – Kazinga Channel – Lake George) Western Rift Valley lake system and the fabulous Queen Elizabeth National Park and its fringe Game Reserves of Kyambura GR, Kigezi GR, and the vast Maramagambo Forest.

Queen Elizabeth National Park boasts a diverse range of ecosystems, from open savannah to plentiful rainforest, from dense papyrus swamps and brooding crater

13

lakes to the vastness of Lake Edward - it is little wonder that the park boasts one of the highest biodiversity ratings of any game park in the world.

Almost 100 mammal species and a remarkable 606 bird species make this superb safari territory that attracts thousands of tourists every year and is still growing in leaps and bounds. As a result of this phenomenal increase in tourist flows to Queen Elizabeth National Park, quite a number of tourist catering hotels and lodges have sprung up within the park itself and others on its fringes – serving various local dishes and cuisines to the tourists.

KICHWAMBA POULTRY & PIGGERY FARM regards the rise of such tourist-catering facilities as an economic windfall for commercial farmers living in the peripheral agricultural production areas that immediately border on the Queen Elizabeth National Park – in the sense that they will be able to reap direct commercial dividends and monetary gains from it. That KICHWAMBA POULTRY & PIGGERY FARM is located in Rubirizi District therefore represents a significant economic advantage to not only itself, but also to the farmers in the area who will have been able to benefit directly from its commercial farming demo projects and also receive technical back-up in form of training, production inputs supply, and other forms of field extension services.

Secondly, the Rubirizi district farming community should be able to take advantage of the excellent road network that links the district to the major urban centres of Bushenyi, Mbarara, and most importantly Kampala – as they will be in position to load and market their poultry and piggery farm outputs for supply to these major agricultural product consumption markets in Uganda. The good road network in place should also in principle create a significant economic “ripple effect” for the farmers in Rubirizi District who will have gained something tangible from the KICHWAMBA POULTRY & PIGGERY FARM to scale up the quality, volume of output, and consistency of supply of their poultry and piggery products – like it has already done for the Bushenyi banana farming community that have reaped tremendously from the regular supply of bananas to the high-demand Kampala and Mbarara markets.

14

6.0 POSITIVE OUTCOMES OF COMMERCIAL FARMING IN UGANDA

6.1 Rural Poverty in Uganda

Uganda has made enormous progress in reducing poverty, slashing the incidence of poverty from 56 per cent of the population in 1992 to 31 per cent in 2005. In urban areas the decrease has been even sharper, to 12 per cent. But poverty remains firmly entrenched in the country’s rural areas, which are home to more than 85 per cent of Ugandans. About 40 per cent of rural people – some 10 million men, women and children – live in poverty.

The poorest Ugandans include millions of subsistence farmers who live in remote, scattered locations throughout the country. Remoteness makes people poor. It excludes them from participating in the benefits of the country’s steady economic growth and dynamic modernization process. In remote rural areas smallholder farmers do not have access to the vehicles and roads they need for transporting produce to markets, and market linkages are weak or non-existent. Farmers lack inputs and technologies to help them increase production and reduce pests and disease. And they lack access to financial services that would enable them to raise their incomes by improving and expanding their production and establishing small enterprises.

Health and social issues weigh heavily on rural poverty in Uganda. The population of about 30 million is growing at a rate of 3.2 per cent a year, doubling every 20 years. Although the country has been successful in dramatically reducing the incidence of HIV/AIDS, the pandemic has caused the death of large numbers of young adults, leaving an estimated 1 million children without parents. Rural women are particularly disadvantaged because of the lack of health care and other social services. They work longer hours than men and have limited access to resources and little control over what they produce. They bear the burdens of seeing that their

15

households are fed adequately and providing care for the sick, the elderly and orphaned children.

6.2 Eradicating Rural Poverty in Uganda

The government looks to the agricultural sector to drive growth and contribute to further reduction of rural poverty. Agriculture, which accounts for about 30 per cent of the gross domestic product, has a potential for vibrant and diversified growth. But agricultural development in Uganda faces several challenges. One of the major challenges is improving access to markets. Because the country is land-locked, international and regional exports and imports involve long overland hauls through neighbouring countries to and from distant seaports. And poor internal road linkages hinder domestic marketing. There is a need for improvement of transport infrastructure, particularly rural access roads and the national road network.

The Government of Uganda addresses rural poverty through its Poverty Eradication Action Plan (PEAP), a comprehensive national policy that guides development planning. The policy’s objectives are to:• support rapid economic growth and structural transformation• foster good governance and security• improve the ability of poor rural people to increase their incomes• help rural people improve their living conditions

In 2001 as part of the broader plan to eradicate poverty, the government launched the Plan for Modernization of Agriculture (PMA). The objective of the PMA is to transform Uganda’s economy into a modern one, enabling all sectors to participate actively in economic growth and transforming subsistence agriculture into commercial agriculture. In support of the PEAP, the government has developed further policy measures, including the Local Government Sector Investment Plan, the Rural Financial Services Strategy and the recently introduced Prosperity for All programme. The Local Government Sector Investment Plan provides a framework for guiding investments at the local level towards such critical areas as the delivery of services, good governance and local economic development. The Rural Financial Services Strategy facilitates access to financial services in rural areas to encourage savings and their use as a source of investment capital for rural enterprises. The Prosperity for All programme is a national development effort that addresses a range of activities.

Mission of the Plan for Modernization of Agriculture (PMA)

The mission of the PMA is "eradicating poverty by transforming subsistence agriculture to commercial agriculture". Improving the welfare of poor subsistence farmers will require that they re-orient their production towards the market. More of their production must be marketed to enable them to earn higher incomes. In a broad sense, to achieve the vision, it is essential to maintain prudent macroeconomic and sectoral policies, undertake institutional reforms and adjustments, and implement the identified priority interventions.

16

6.3 Farmer Categorization in Uganda

Uganda has three main categories of farmers: subsistence, semi-commercial, and commercial. The subsistence farmers who produce predominantly for household consumption are the majority. These are the farmers that Government expenditure will target in order to transform the agricultural sector. Transforming subsistence agriculture requires addressing the constraints of the subsistence farmers. Consultations with poor farmers revealed two types of constraints: productivity related constraints and those related to governance. Productivity related constraints include: lack of sufficient food, lack of land and soil infertility, lack of proximal water sources, lack of inputs, pests and diseases, lack of skills and knowledge, lack of capital and access to credit, market problems (low prices, lack of markets), poor roads and transport networks, lack of storage and processing, insecurity where it exists, and loss of oxen due to insecurity in areas where they are used.

6.4 IFAD’s Strategy in Uganda

For more than 25 years IFAD (International Fund for Agricultural Development) has been strongly committed to working with Uganda to reduce rural poverty. The organization has contributed a total of US$193.5 million to finance 12 programmes and projects with the objective of empowering poor people in the country’s rural areas. IFAD provides financing and technical assistance for six ongoing programmes and projects which are as follows:

Vegetable Oil Development Project Area-Based Agricultural Modernization Programme National Agricultural Advisory Services (NAADS) Rural Financial Services Programme District Livelihoods Support Programme Community Agricultural Infrastructural Improvement Programme

As part of the donor effort to improve international development effectiveness, IFAD has identified three key sectors as the focus of its investments in Uganda:

improving agricultural technologies to help farmers move from subsistence to market-oriented production in order to increase their incomes and improve their living standards and food security.

17

Total number of IFAD programmes and projects: 12Total financing: US$454.9 millionTotal financing from IFAD:US$193.5 millionDirectly benefiting:2,442,150 households

promoting the decentralization process to strengthen local levels of government and improve rural infrastructure in order to promote rural economic growth.

supporting rural financial services to encourage small-scale farmers to save part of their earnings to invest in increasing productivity and in strategies for coping with risk.

Area Based Agricultural Modernization Programme

This programme has had a significant impact on the modernization of agriculture in south-west Uganda. Activities have led to an increase in agricultural productivity and in farmers’ incomes, which are its main goals. The programme has contributed to a change in farmers’ attitudes towards agriculture, helping them see it as a source of income rather than simply as a source of food, and encouraging them to invest in production.

The change in farmers’ attitudes and improvements in their incomes have led to an increase in the demand for savings and credit. In turn this has led to strong growth of Savings and Credit Cooperative Societies (SACCOs), which are local, member-owned microfinance groups. The programme includes 32 SACCOs, with a total membership that is well over the number that was the programme’s initial target.

The programme includes three main activities: agricultural commercialization, including market linkages and access to

rural financial services. rural infrastructure development such as access to water points and a

revolving fund through which participating farmers pass on seeds or seed offspring to other farmers.

community mobilization, including awareness-building among participants, groups and communities.

Improving agricultural technologies and marketing

Agriculture is one of the mainstays of Uganda’s economy. Under the umbrella of the Ministry of Agriculture, Animal Industry and Fisheries and within the framework of the PMA, the National Agricultural Advisory Services Programme (NAADS) delivers agricultural advisory services to poor farmers. The aims of the government’s agricultural strategy are to:

move farmers from subsistence to commercial agricultural production.

increase productivity through adoption of appropriate techniques.18

Total cost: US$16.0 millionIFAD loan: US$13.2 millionDuration: 2002-2008Geographical area: 10 districts in southwest UgandaDirectly benefiting: 312,500 households

promote creation of employment. diversify production and reduce dependence on imports by promoting

competitive systems in processing, marketing, input supply and credit.

The objective is to achieve food self-sufficiency. Although traditional and non-traditional agricultural products will continue to have an important place among exports, sustainable growth will necessarily involve import substitution and export diversification.

National Agricultural Advisory Services Programme (NAADS)

The programme was designed to fill the need for a demand-driven agricultural advisory service for poor farmers. It introduced an innovative partnership that involves the government, public institutions, civil society and the private sector in providing a crucial service to producers. The programme provides a stepping stone for farmers’ groups and associations that enables them to move into commercial production and become part of the commodity value chain.

The goal is to make rural livelihoods more secure, and to achieve sustainable improvements in agricultural productivity and household incomes. Activities focus on providing advisory and information services, testing technology and developing market linkages.

The programme has been successful in establishing an advisory service that works on a national scale, and in mobilizing farmers’ groups and organizations. It has involved technical teams, including established extension workers and local governments, in planning and implementation. The programme has also effectively decentralized implementation of its activities to the local government level.

19

Total cost: US$107.9 millionIFAD loan: US$17.5 millionCo-financing: World Bank(US$24.0 million); UK Department forInternational Development (DFID),Danida, the Netherlands and EuropeanUnion (basket funding, US$68.8 million)Duration: 2001-2008Geographical area: nationwideDirectly benefiting: 533,000

7.0 EXECUTION OF ACTION PLAN: THE CURRENT SITUATION

7.1 Existing Farm Management and Manpower Structures

The poultry farming section is currently in operation with on-farm poultry stock consisting of 4,000 layers and 2,000 broiler chicken which will grow exponentially in numbers with time and as the farm facilities and structures are gradually expanded to a full capacity projection of 10,000 layers and 4,000 broilers respectively.

KICHWAMBA POULTRY & PIGGERY FARM is now a steadily expanding and growing agricultural business, as it is being capably managed and run by its principal founder and promoter – Mr. Byakutaga Robert for the past four years that it has been operational. As the farm’s vision bearer and driving force, Mr. Byakutaga Robert is inter alia responsible for a string of routine day-to-day management functions at the farm, which, just to mention but a few are highlighted below:

As KICHWAMBA POULTRY & PIGGERY FARM only has poultry on site, as the head of this nascent but fast growing farming unit, Robert is deeply engaged in routine poultry production and management schedules to ensure the production is maintained as closely as possible to forecast scenarios and existing market demand projections.

Management of poultry stock breeding programmes, the buying and selling of poultry inputs and selling of product outputs, machinery and farm materials, and the hiring and supervision of farm staff.

Purchase and supervision of preparation of poultry feedstuff, control of pests and vermin at the farm, maintenance of farm buildings and infrastructure, as well as the maintenance of financial and farming records.

20

Develops comprehensive short- and long-term farm property management strategies.

Implementing general farm organizational planning and product marketing strategies to ensure that KICHWAMBA POULTRY & PIGGERY FARM maintains its steady growth character and market expansion for its product outputs now and in the future.

Robert is able to cope well with all these functions as he possesses a wide array of farming skills and farm-management attributes that range from – the practical ability to repair and operate a range of equipment and tending to livestock needs to the management skills or organizing resources, budgeting and marketing produce. He also puts his good computing skills to good advantage to keep records/books of account and manage farm operations such as breeding.

The current manpower structure of KICHWAMBA POULTRY & PIGGERY FARM comprises of 6 employees that include: 1 Marketing Assistant; 1 Farm Accountant; and 4 Farm Attendants. Robert pays these farm assistants/workers a monthly salary and emoluments that are directly commensurate to their level of qualifications, experience, productivity and attitude towards work in addition to paying them a cost-of-living allowance that is adjusted/weighted to the cost of living around Kichwamba town as some of them have to rent living quarters/premises off-farm.

7.2 Existing Land, Buildings and Facilities

Land Availability

The land available for the implementation of this project at Kichwamba is 25 Hectares (62.5 Acres) in total and has a current market value of UShs. 80 million. The existing land and structures on it will be a useful starting point for the implementation of this project and are entirely the efforts and hard work of the project promoter – Mr. Byakutaga Robert.

The available land space is thus adequate for both the maize farm (60 Acres) and the poultry and piggery structures to complete the composition of the mixed farm concept as envisaged by this project.

Existing Structures

The structures currently existing on the land at Kichwamba include poultry sheds and pig housing structures which have been entirely constructed by Mr. Byakutaga Robert using his own financial resources. The total market value of the farm buildings and structures is approximately UShs. 47 million. This counts as a significant equity contribution towards the total project cost of the mixed farm enterprise.

21

Tables 4 and 5 below provides a breakdown of area (in square feet) and corresponding value (in UShs.) of the existing farm structures at the KICHWAMBA POULTRY & PIGGERY FARM.

Table 4: Space dimensions and financial value of existing farm structures (poultry section)

Particulars Specifications Physical Units

(Sq. ft.)

Unit Cost

(UShs.)

Total Cost (UShs.)

Management building 100 sq. ft. 100 sq. ft. 10,000 1,000,000

Store room 70 sq. ft. 70 sq. ft. 6,000 420,000

Shed space for layers 2 sq. ft./bird 20,000 sq. ft.

600 12,000,000

Shed space for broilers 1 sq. ft./bird 4,000 sq. ft.

600 2,400,000

TOTAL 24,170 sq. ft.

15,820,000

Table 5: Space dimensions and financial value of existing farm structures piggery section)

Particulars Specifications Physical Units

(Sq. ft.)

Unit Cost

(UShs.)

Total Cost (UShs.)

Store room 100 sq. ft. 100 sq. ft. 6,000 600,000

Farrowing pens (80) for lactating sows

100 sq. ft./sow 8,000 sq. ft.

1,000 8,000,000

Boar cum service pens (20)

70 sq. ft./boar 1,400 sq. ft.

1,000 1,400,000

Dry sow pens (120) 20 sq. ft./sow 12,000 sq. ft.

1,000 12,000,000

Fattener shed – I (400) 10 sq. ft./ fattener 4,000 sq. ft.

1,000 4,000,000

22

Fattener shed – II (400) 15 sq. ft./ fattener 6,000 sq. ft.

1,000 6,000,000

TOTAL 31,500 sq. ft.

32,000,000

8.0 EXECUTION OF ACTION PLAN: FARM REQUIREMENTS

8.1 Objectives of Commercial Farming

The objectives of commercial farming in a general context can be summed up as follows:

To equip commercial farmers/producers with new and marketable production know-how, and modern farm management techniques;

Small and medium-size producers are proficient in better agricultural production and marketing practices;

23

Enhanced producer incomes from better production and marketing techniques, and market plans and livestock production budgets; and

Creation of new seasonal, part-time and full-time jobs. Improved homestead/family income and food security for the commercial

farmer. Better land, soil, and environmental resource management techniques. Constant availability and supply of vital production inputs. Improved livestock and crop pest and disease management techniques. Better and quicker access to production capital and credit. Enhanced livestock/crop product market access and better product pricing

incentives for commercial farmers. Better post-harvest crop/livestock product storage and processing facilities.

8.2 Project Inputs

General Farm Inputs

Land – 62.5 Acres Electric power connection Water connection and Water Supply System 10,000 litre capacity water tank Motorised Water Pump-Set (1 HP) Electric Generator Set 7-Ton Pick-up Truck Farm Labour

Inputs: Poultry Section

Poultry Section Building Structures Brooders (28 units) Drum Heaters (4 units) Small Drinkers (120 units) Large Drinkers (260 units) Feeders (480 units) Laying nests (100 units) Shifting Boxes (14 units) 6,000 Layer Day Old Chicks (DOCs) 2,000 Broiler Day Old Chicks (DOCs)

Inputs: Piggery Section

Piggery Section Building Structures Feeders and Waterers Chain-link Fencing Controls & Sensors Feeding Troughs (100)

24

40 Pig Breeding Stock

8.3 Farm Project Process

8.3.1 Poultry Farm Management

Day Old Chicks

The chicks that are initially purchased by KICHWAMBA POULTRY & PIGGERY FARM for the purpose of setting up the farm are of uniform size, active, alert and bright eyed. The shank or leg covering (skin) of healthy chicks appears bright and shiny. These improved and high yielding chicks were purchased from reputed farms.

Brooding

Layers

Proper brooding temperature is required to keep the chicks in comfort during rearing period when they are sensitive to cold and need some artificial heat source to maintain their normal temperature. Charcoal or sawdust is burnt for supplying heat at the stage of brooding in the poultry farm.

The Business Plan has taken a brooding expense at UShs. 100 per bird during the rearing period.

Broilers

Proper brooding temperature is required to keep the chicks in comfort. Charcoal or sawdust is burnt for supplying heat at the stage of brooding in the poultry farm.

In the first week, 95ºF is quite comfortable. For the first one week, it is also essential to observe four to five times daily the condition (temperature) of the chicks. They should neither huddle nor move away from the brooding hover, but should be moving around evenly. As chicks grow, the temperature may be reduced at a rate of 5ºF per week until approximately 70ºF is reached in the sixth week.

Feeding

Layers

The requirement of feed during lying depends on the rate of egg production and the body weight of layer birds. The actual feed consumption may be influenced by several factors as follows:

Body weight of the bird. Rate of egg production. Season and weather condition. Health and physical condition of the bird. Feed quality such as protein contents, caloric value of feed, etc.

25

Generally the feed intake increases with an increase in egg production.

Broilers

Broilers are usually fed with the following two types of ration:

Broiler starter: It is fed to the broiler birds up to five weeks of age. Broiler finisher: It is fed to the broiler of more than five weeks of age and

continued till the age of marketing.Feeding three or four times each day will stimulate feed intake and prevents wastage.

This starter and finisher feed will be obtained in prepared form, from the feed mills.

Housing

Layers

The poultry house has been designed and constructed so as to be well ventilated, cheap, durable, comfortable and safe. Each bird has been provided a floor space of about 1.5 to 2 sq. ft. The calculations in the Business Plan are based on an area of 1.75 sq. ft. per bird.

Broilers

The broiler chicks shall be kept in a clean, dry and well-ventilated room. Broiler house should have proper ventilation as this provides the birds fresh air and carries off moisture. The entire building including litter and all equipment should be fumigated.

Feeders

It is essential to provide adequate feeder space. Ideally, two pan type feeders are sufficient for 50 birds. Therefore, for a total of 14,000 birds, 560 feeders are enough.

Lighting

Layers

Light affects growth and reproduction of birds by different physiological actions.

The duration of the light period should not be decreased during laying period.

26

Adequate lighting boosts up egg production by 5 to 10 percent. Lighting encourages the birds to eat more feed, more of which will lead to better growth and more eggs production. Irregular lighting results in drop in egg production.

Broilers

Most broiler growers provide 24 hours light during brooding and early growing period. Recent research conducted in windowless buildings, using intermittent lighting of 1-2 hours period, has indicated significantly improved feed efficiency. Initially, for first fifteen days, light intensity should be 40-60 watts per 200 sq. ft of space and this can be replaced by 15 watts bulb in the beginning of third week. The Business Plan has taken monthly electricity charges of UShs. 200,000.

Drinkers

Adequate drinking space should also be provided to the birds. It is necessary to provide extra water during extremely hot weather. The drinker should contain fresh, clean and cold water. Generally, one large drinker is sufficient for 50 birds. The Business Plan has therefore taken 280 large drinkers and 140 small drinkers.

Litter

Litter is spread on the floor to prevent the direct contact with the floor. Straw, coffee-husk and sawdust are generally used for making the litter. It should be dry and free of moulds. Caked or moldy material should be removed and refilled with fresh materials. Extensively wet and dusty litter should also not be used. Using new litter for each flock is good for raising disease-free broilers and layers. Litter can also be resold in the market.

Vaccination

Layers

Vaccination can be applied to chicks through injections. The medicine can also be mixed in the water and also through eye drops. Vaccination is provided to the birds once in the rearing period and once in the laying period. Average vaccination cost per bird usually varies between UShs. 200-400. The Business Plan has taken vaccination cost at UShs. 300 per bird.

Broilers

Average vaccination price per bird mostly varies between UShs. 200-500. The Business Plan has taken cost of vaccination at UShs. 400 per bird.

Fumigation & Spraying

27

It is essential to check all equipment and walls of the broiler house carefully that they are clean, and washed with disinfectant solution, and dried. The rooms should be white washed and sprayed before the arrival of birds.

Disinfectant solution can be prepared with Phenol, Potassium Permanganate, Carbolic Acid and Formaline. A solution of Sodium Hydroxide/Caustic Soda with warm water can also be used to clean the house.

To sanitize the broiler and layer houses from germs and insects, they are fumigated with Formaldehyde Gas, which is produced by putting Formaline on Potassium Permanganate. The rooms are first vacated and then sealed for 30 minutes after the fumigation so that the gas infiltrates in every corner of the room.

In the Business Plan report, the cost of fumigation has been taken as UShs. 200,000 per flock.

Culling

Layers

Culling is the procedure of selection and rejection of unproductive and poor producers. Culling is a very important job for running layer farm profitably. Poor layers should be culled to minimize the cost of production. The birds that have laid well for short period but have stopped laying for one reason or another should be culled out. Sales price varies in a range of UShs.3,500 to 5,000. In the Business Plan the culled birds are sold at a rate of UShs. 4,000 per bird.

Rearing and Laying Schedule

Layers

The cycle of one flock of layer farm is divided into two distinct phases, the rearing phase and the laying phase. During the rearing phase of 6 months, the birds consume feed and are non-productive. After the rearing phase is over, the birds start laying eggs and remain productive for the next 12 months. So, the revenues and costs occur in the form of cycles. The schedule for this calculation for the first ten years of operation of the farm is shown in Table 6.

Table 6: Schedule for Calculation of Revenues and Expenses (1 – 2 Years)

Year

Rearing Months

Laying Months

Frequency per year

Birds

Birds Purchase

Litter

Litter Purchase

Spray

Vaccination cost

28

Sale d Sale d Cost

1 6 6 0 1 1 2 2 2

2 5 6 1 1 2 2 2 2

8.3.2 Commercial Piggery Farm Management

Modern and well established scientific principles, practices and skills shall be used by KICHWAMBA POULTRY & PIGGERY FARM to obtain maximum economic benefits from its pig farming enterprise. Some of the major norms and recommended practices are given hereunder:

I. Housing management:

1. Construct shed on dry and properly raised ground. 2. Avoid water-logging, marshy and heavy rainfall areas.

3. The side walls of the sheds should be 4-5 ft. high and remaining height should be fitted with GI pipes or wooden poles.

4. The walls should be plastered to make them damp proof.

5. The roof should be at least 8-10 ft. high.

6. The pig stys should be well ventilated.

7. The floor should be pucca/hard, even, non-slippery, impervious, well sloped (3 cm per metre) and properly drained to remain dry and clean.

8. A feed trough space of 6-12 inches per pig should be provided.

9. The corners of feed troughs, drains and walls should be rounded for easy cleaning.

10.Provide adequate open space for each animal i.e. double the covered area

11.Provide proper shade and cool drinking water in summer.

12.Dispose of dung and urine properly.

13.Individual pens for boars/lactating sows should be constructed.

14.The dry sows/fatteners can be housed in group pens.

15.Give adequate space for the animals.

II. Selection of breeding stock:

1. Immediately after release of the loan, purchase the stock from a reliable breeder or from nearest livestock market.

2. For commercial pig farming upgraded / cross bred or exotic stock in good health should be selected.

29

3. While selecting a gilt or sow primary aim should be to secure a female that will produce large survivable litter and which can attain marketable weight at an age of six months or less. This can be done with the help of pedigree records/Veterinarian / Bank's technical officer.

4. Purchase animals which are ready to be bred.

5. Identify the newly purchased animal by giving suitable identification mark (ear notching or tattooing).

6. Vaccinate the newly purchased animals against diseases.

7. Keep the newly purchased animal under observations for a period of about two weeks and then mix with the other animals.

8. Purchase a minimum economical unit as suggested.

9. Purchase animals in two batches at the interval of three months.

10.Follow judicious culling and replacement of animals in a herd.

11.Cull the old animals after 10-12 farrowings.

III. Feeding management:

1. Feed the animals with best feeds. 2. Give adequate concentrates in the ration.

3. Provide adequate vitamins and minerals.

4. Provide adequate clean water.

5. Give adequate exercise to the animals.

6. The feeding of the piglets is more critical and high quality and more fortified diets are needed for feeding them.

7. Feeding of the sows during pregnancy is utmost important for increased litter size.

8. The feed requirements of lactating sow varies with the size of the litter, weight, size and age of sow.

9. Commercial pig farming should aim at the exploitation of non-conventional feed resources viz., waste from Kitchen/hotel/ cold storage/warehouses, in replacing the balanced rations to minimise the cost of production.

10.The feeding regime adopted should take care of all the nutrient requirements of various categories of pigs.

IV. Protection against Diseases:

1. Be on the alert for signs of illness such as reduced feed intake, fever, abnormal discharge or unusual behaviour.

2. Consult the nearest veterinary aid centre for help if illness is suspected.

30

3. Protect the animals against common diseases.

4. In case of outbreak of contagious diseases, immediately segregate the sick and the healthy animals and take necessary disease control measures.

5. De-worm the animals regularly.

6. Examine the faeces of adult animals to detect eggs of internal parasites and treat the animals with suitable drugs.

7. Wash the animals from time to time to promote sanitation.

8. Strictly follow the recommended vaccine schedule as prescribed by the veterinary authorities.

V. Breeding care:

1. Pigs are highly prolific in nature and two farrowings in a year should be planned by adopting optimal management conditions

2. For every 10 sows one boar must be maintained for maximum fertility.

3. Breed the animals when it is in peak heat period (i.e. 12 to 24 hours of heat).

VI. Care during Pregnancy:

Give special attention to pregnant sows one week before farrowing by providing adequate space, feed, water etc. The sows as well as farrowing pens should be disinfected 3-4 days before the expected date of farrowing and the sows should be placed in the farrowing pen after bedding it properly.

VII. Care of Piglets:

1. Take care of new born piglets by providing guard rails. 2. Treat / disinfect the navel cord with tincture of iodine as soon as it is cut with

a sharp knife.

3. Feed on mothers milk for first 6-8 weeks along with creep feed.

4. Protect the piglets against extreme weather conditions, particularly during the first two months.

5. Needle teeth should be clipped shortly after birth.

6. Vaccinate the piglets as per recommended vaccination schedule.

7. Supplementation of Iron to prevent piglet anaemia is necessary.

8. The piglets meant for sale as breeder stock must be reared properly.

9. Male piglets not selected for breeding should be castrated preferably at the age of 3-4 weeks which will prevent the boar odour in the cooked meat thus it enables production of quality meat.

10.Additional feed requirements of lactating sow must be ensured for proper nursing of all the piglets born.

31

8.4 Expected Outputs/Results

8.4.1 Physical/Tangible Outputs

Eggs Broiler Chicken Off-layer chicken 6 – 7 month old pigs

8.4.2 Intangible Outputs

Increased and sustained efficiency in farm-based livestock production of at least 10% p.a.;

Strong, efficient and reliable commercial livestock farmers/producers of poultry and piggery products in Rubirizi District;

Employment opportunities for youth in Rubirizi District created among the various commercial farmers/producers;

The market and popularity of poultry/piggery products accordingly grown and expanded in Western Uganda;

KICHWAMBA POULTRY & PIGGERY FARM becomes a sustainable livestock farming unit with a strong farm-based income (cash flow) and a high rate of return and profitability;

The existing land and natural resources are utilized to the best commercial advantage of the enterprise through the use of good farm and environmental management practices for sustainable productivity and growth of the farm;

KICHWAMBA POULTRY & PIGGERY FARM becomes a nucleus model mixed farming project that serves as a training/inspirational nucleus for training and support of other up-coming commercial mixed farmers in Rubirizi District;

Organized farmers’ groups accessing and sustainably using improved production and post-harvest technologies established;

Capacity of farmers developed for production of good quality and marketable volumes for marketing;

Farmers’ organizational skills, market-oriented decision making, and business management developed for organized marketing of poultry and piggery products, and

Sustainable cohesive partnership that ensures timely farmer access to services as well as marketing of poultry/piggery products established.

8.5 Data Collection & Book Keeping

8.5.1 Data Collection Methods

KICHWAMBA POULTRY & PIGGERY FARM keeps appropriate and relevant inventory, cash books, ledgers, and journals that are used as a veritable source of

32

information and data on the periodical Farm Return. The periodical Farm Return is organized in tabulated format with its entry headings described in Table 7 below:

Table 7: Description of the Farm Return

Heading Heading Description

Heading A Labour.All labour, paid and unpaid (but excluding labour used on work under contract), which has contributed to work on the farm during the accounting year.

Heading B Number and value of livestock.Opening and closing valuations (in number and value) and average number of livestock.

Heading C Livestock purchases and sales.The value of such transactions together with the value of any farmhouse consumption of livestock.

33

Heading D Costs.Value of all non-capital inputs used in the production of non-capital products during the accounting year.

Heading E Land and buildings, dead-stock and circulating capital.Includes production, replacement or major repair of any fixed assets by the farm’s own resources valued on a cost basis.

Heading F Debts.Opening and closing valuations of short-, medium- and long-term loans.

Heading G Value Added Tax.The VAT system applying and in certain cases VAT payments and receipts.

Heading H Grants and Subsidies.Defined as specific payments made directly to the farm business from public funds, excluding those for investment in land, plant, machinery and equipment.

Heading I Production (crops and animal products, livestock excluded).The area, quantity and value of all crops, animal products and other activities.

Heading J Details of purchases and sales of livestock.Purchases and sales per categories of livestock. The sub-totals of purchases and sales per animal species (equines, cattle...) are registered in Heading E.

8.5.2 Farm Book Keeping

As commercial farming takes shape and gains momentum in Uganda, it is becoming more complex and capital intensive thus creating the need for detailed analysis to make financial and production decisions using computer hardware and software technology. It henceforth becomes imperative for KICHWAMBA POULTRY & PIGGERY FARM to its stock of business tools (which it has already done).

Computerized Bookkeeping and Financial Analysis

The operator of any farm business needs to keep accurate, detailed records for such purposes as applying for a bank loan, filing a tax return, and assessing the firm’s financial condition. Computer software is also important for use in production decision-making on the farm.

34

9.0 PROJECT OBJECTIVES

9.1 Farm Enterprise Objectives

The objectives of KICHWAMBA POULTRY & PIGGERY FARM for the first three years of operation include:

1. To create a product-based agricultural enterprise whose goal is to exceed customers' expectations.

2. To utilize the existing land and natural resource base to the best commercial advantage of the enterprise by using good farm and environmental management practices for sustainable productivity and growth of the farm.

3. To increase the efficiency of our production by 10% a year.

4. To develop a sustainable farm, surviving off its own cash flow.

35

5. Tap the fast-growing market opportunities and increasing popularity for poultry and piggery products in Western Uganda (especially the tourist circuit market around Queen Elizabeth National Park and its related Safari Lodges, Hotels and Rest Camps).

6. Generate strong farm-based income that will lead to fast growth of cash flow and exponentially improve on the enterprise’s rate of return and profitability.

7. Utilize the existing land and natural resources to the best commercial advantage of the enterprise by using good farm and environmental management practices for sustainable productivity and growth of the farm.

8. Provide employment opportunities for locals within the area (Rubirizi District).

9. Make the farm a model mixed farming project that will grow to inspire other up-and-coming farming enterprises (out-grower farmers) within the area by serving as a self-sustaining demonstration unit for agricultural inspiration and on-farm training.

9.2 Objectives of Public-Private Partnership between NAADS and the Farm Enterprise (according to NAADS)

The establishment of relevant public/private sector partnerships is vital for the development and promotion of various enterprises. These partnerships are needed to provide the public sector push and the private sector pull to especially the small-scale subsistence farmers, towards market orientation and commercialisation of agricultural production.

Public/private sector partnerships allow for establishment of out-grower schemes around nucleus production entities of agricultural commodities. Out-growers’ schemes, with farmers around nucleus farms or agro-processing facilities, and essential services is one way of attaining production of sustainable volumes of quality and sustainable quantities of product to exploit the market opportunity, and for farmers to become effective players in the market.

Specific objectives are to:1. Support the development of farmer institutions (groups and associations) for

organized marketing and for collective access to inputs and marketing through:

Farmer mobilization; Training of farmers in group dynamics; Focal point for bulking and organized marketing of produce.

2. Develop farmer capacity for improved productivity and production of poultry, fish, apiculture, horticultural and piggery enterprises;

36

3. Develop farmer capacity for improved post-harvest handling of poultry, fish, apiculture, apiculture, horticultural and piggery products;

4. Improve the marketability of farmers’ produce through quality improvement and management, increased volumes, and development of farmers holding storage capacity.

10.0 PROJECT NEEDS FOR IMPLEMENTATION OF THE ACTION PLAN

10.1 Project Requirements for Farm Expansion

10.1.1 Infrastructure Facilities

Poultry's farming needs to be handled tactically, right from the selection of the site to the final stage when the birds are sold. That being the case, the selection of the farm at Kichwamba was done in such a way to ensure that the transportation of birds and feed can be always be easily handled.

37

The entrepreneur is still trying his level best to ensure that the following things are available at the farm site before gearing up to full production parameters:

Electricity connection Drinking quality water Road access Drainage of rain water

10.1.2 Farm Equipment (Poultry Section)

Various types of farm equipment are needed for feeding, drinking and handling the birds. List of the required farm equipment required is given in Tables 8 & 9:

Layers

Table 8: Farm Equipment for Layers

Layer Farm Equipment Unit Unit Cost (UShs.)

Total Cost (UShs.)

Brooders 20 20,000 400,000

Drum Heaters 2 40,000 80,000

Drinkers (Small) 100 3,000 300,000

Drinkers (Large) 200 6,000 1,200,000

Feeders 400 4,000 1,600,000

Nests 100 2,000 200,000

Shifting Box 10 50,000 500,000

TOTAL 832 4,280,000

Broilers

Table 9: Farm Equipment for Broilers

Broiler Farm Equipment Unit Unit Cost (UShs.)

Total Cost (UShs.)

Brooders 8 20,000 160,000

Drum Heaters 2 40,000 80,000

Drinkers (Small) 20 3,000 60,000

38

Drinkers (Large) 60 6,000 360,000

Small Feeders 20 1,500 30,000

Large Feeders 60 4,000 240,000

Shifting Box1 4 50,000 200,000

TOTAL 174 1,130,000

10.1.3 Farm Equipment (Piggery Section)

The list of farm equipment (and its cost) required by KICHWAMBA POULTRY & PIGGERY FARM for its piggery section is detailed in Table 10 below:

Table 10: Farm Equipment for the Piggery Section

Piggery Farm Equipment Unit Unit Cost (UShs.)

Total Cost (UShs.)

Water Supply System

Cost of installations and piping for supply of potable water to the farm

# # 5,000,000

Motorised Water PumpSet – 1 HP 1 1,500,000 1,500,000

Gen Set 1 4,000,000 4,000,000

10,000 litre capacity Water Tank 1 2,300,000 2,300,000

Chain-link Fencing - 10,000,000 10,000,000

Controls & Sensors - 2,000,000 2,000,000

Feeding Troughs 100 50,000 5,000,000

TOTAL 29,800,000

10.1.4 General Farm Requirements Summary

Table 11 below provides a general outline summary of the equipment, material, and livestock breeding stock requirements of the KICHWAMBA POULTRY & PIGGERY FARM. For the purpose of a more precise presentation, farm investment input costs have been separated into existing and planned investments – such that an objective comparison/assessment can be made of what has already been done relative to what is expected to be undertaken at the farm to improve its performance.

1 Used to shift Day Old Chicks39

Table 11: Project Economics

Account Head Total Cost (UShs.)

A. Existing Investment

Land 80,000,000

Farm Buildings & Structures 52,820,000

7,000 Layer Chicken Stock @ 5,000/= 35,000,000

2,000 Broiler Chicken Stock @ 5,000/= 10,000,000

Sub-Total 177,820,000

B. Planned Investment

Farm Machinery & Equipment 24,610,000

Installation of Water Supply System 8,800,000

10,000 litre capacity Water Tank 2,300,000

Electricity Gen Set 4,000,000

Installation of power 3,500,000

7-Ton Pick-up Truck 35,000,000

Purchase of 6,000 Layer DOCs (Day Old Chicks) @ 2,250/= 13,500,000

Purchase of 2,000 Broiler DOCs (Day Old Chicks) @ 1,300/=

2,600,000

Purchase of 40 Pig Breeding Stock 2,920,000

Sub-Total 97,230,000

Total Fixed Costs (A + B) 275,050,000

Raw material inventory 18,140,000

Total Working Capital 18,140,000

Total Project Investment Cost (UShs.) 293,190,000

40

10.2 Monitoring and Evaluation Requirements

10.2.1 Implement and Maintain an Effective Monitoring and Evaluation System

Strategy: The M&E system is based on an impact design linking activities to desired outcomes and impacts. The M&E system is intended to provide the foundation for tracking the project’s delivery of expected outputs and quantitative impacts to measure progress, as well as support KICHWAMBA POULTRY & PIGGERY FARM’s M&E needs by providing input to NAADS and associated IR indicators. KICHWAMBA POULTRY & PIGGERY FARM will continue to use a distributed approach to M&E where all project team members and partners are responsible for collecting M&E data in their technical areas. The M&E Specialist will coordinate this effort and consolidate all data collected and generate aggregate data for the M&E indicators. Close liaison will be maintained with the NAADS team.

Activities. During the work plan period, the M&E system will be maintained and utilized to input project data. KICHWAMBA POULTRY & PIGGERY FARM will prepare semi-annual M&E reports covering activities carried out during the previous six months. Following on from this will be a series of activities geared towards consolidating the project database and providing a repository of project undertakings and achievements.

The M&E Specialist will maintain the already established working relationships with data providers within the various sub-sectors with a view to regularly updating industry-wide data.

One field data verification/impact study will be conducted following the first poultry and piggery out-grower farmer outputs and marketing results in 2011. The focus of the verification will be on economics of production and the resultant benefits of technology adoption. If funds are available, one impact study shall be conducted with the support of NAADS.

The M&E Specialist in consultation with the relevant NAADS project support team personnel prepare 1 – 2 year cumulative periodical impact stories. These will be regularly revisited and updated. Successes and lessons learned will be highlighted and disseminated to the respected stakeholders.

Resources. KICHWAMBA POULTRY & PIGGERY FARM, NAADS staff, and Rubirizi District agricultural production support staff.

10.2.2 Tools for Evaluation

Tools for evaluation will mainly be:

1. Baseline survey using family income and livelihood framework;

41

2. Monthly reports on poultry and piggery production in Rubirizi District;

3. Contract monitors (for those farmers who will specifically be getting their support from KICHWAMBA POULTRY & PIGGERY FARM);

4. Out-grower farmer training and support checklists;

5. Use of multiple reference points;

6. Registry of out-grower farmers who are members/participants in the KICHWAMBA POULTRY & PIGGERY FARM district-wide poultry and piggery production drive/project;

7. Interview questionnaires for out-grower farmers, out-grower farmer groups, community leaders, local council leaders and/or group interview discussions with youth, women groups, and opinion leaders;

8. Control groups for comparison, or regional/national statistics;

9. Post training monitoring questionnaire for out-grower farmer trainers;

10. Out-grower farmer trainer checklists, and meetings within the district.

10.2.3 Monitoring and Evaluation Indicators

Clearly defined M&E tools like progress indicators, success indicators and impact indicators to measure the effectiveness of interventions and outcomes will be set out in a M&E Matrix and will address indicators like:-

1. Improved food security based on increased market linkage and trade from rural agro-enterprises;

2. Improved socio-economics;

3. Improved public-private sector partnerships;

4. Increased competitiveness of rural agro-enterprises;

5. Improved market support services;

6. Improved rural enterprise activity;

7. Improved market linkage.

10.2.4 M & E and Feedback

1. Monitoring outputs and evaluating outcomes;

42

2. Increasing focus on outcomes rather than outputs including qualitative indicators as well as quantitative ones;

3. Work towards a single system of reporting based on existing systems and not defined by supporting agency/donor only;

4. Beneficiary out-grower farmers need to be part of a learning process, hence the need for a Pilot Monitoring and Evaluation system (PM & E). People set standards/indicators, transparent systems, mentor a PM & E – discard it if it is not working;

5. Need for continuity in M & E and must be integrated into the implementation process.

6. Need for feedback systems to the beneficiary out-grower farmers;

7. Evaluation by the beneficiary out-grower farmers is currently invited to consultation – how can we stimulate our processes/self evaluation? Need for a structured review;

8. Need to budget for and resource M & E as part of a learning process.

43

11.0 COST BENEFIT ANALYSIS

Table 12: Cost Benefit Analysis

Poultry and Piggery Annual Production Costs (UShs.) Year 1 Year 2 Year 3Purchase of Layers/Broilers 53,700,000 53,700,000 53,700,000Purchase of Sows/Boars 10,920,000 0 0Feeds (Broilers + Layers) 194,241,000 187,741,000 187,741,000Feeds (Piggery) 30,140,798 65,553,736 65,553,736Brooding Expenses (Poultry) 3,400,000 3,400,000 3,400,000Admin. Overheads 4,117,500 5,025,000 5,025,000Salaries & Wages (Mgmt) 56,400,000 56,400,000 56,400,000Labour (Production Staff) 19,200,000 19,200,000 19,200,000Vaccination Cost + Drugs 19,633,500 31,338,000 31,338,000Spray Cost 2,800,000 2,800,000 2,800,000Litter Cost 400,000 400,000 400,000Utilities (Electricity + Water) 22,003,200 38,649,600 38,649,600Transport 36,000,000 36,000,000 36,000,000Packaging Materials 31,500,000 45,000,000 45,000,000Supplies 3,126,000 8,328,000 8,328,000Sales & Marketing Expenses 11,889,000 19,692,000 19,692,000Miscellaneous 18,089,000 26,892,000 26,892,000Insurance (6%) 3,877,200 3,222,000 3,222,000Depreciation of Assets 8,362,004 8,362,004 8,362,004TOTAL PRODUCTION COSTS (UShs.) 529,799,202 611,703,340 611,703,340Poultry and Piggery Annual Sales Revenues (UShs.)Poultry Product Sales (UShs.) 541,000,000 565,000,000 565,000,000Piggery Sales (UShs.) 33,600,000 326,400,000 326,400,000Manure Sales (UShs.) 6,066,000 11,928,000 11,928,000TOTAL SALES (UShs.) 580,666,000 903,328,000 903,328,000Gross Margin 50,866,798 291,624,660 291,624,660Mark up 9.60% 47.67% 47.67%

44

12.0 FARMER BENEFITS

By functioning as a nucleus poultry and piggery production demo farm to catalyse and stimulate the increased production of poultry and piggery in Rubirizi District, KICHWAMBA POULTRY & PIGGERY FARM expects to generate quite a number of benefits and outcomes for the out-grower framer community within the area. The success of the enterprise hinges on its public-private partnership with NAADS so as to able to resource, input and render the necessary facilitative support to make this market-oriented production outcome possible.

A key consideration in the successful pursuance of the sustainable development and promotion of agricultural production for improved farm household incomes includes the integration of production through agro-processing (value addition) to marketing. Many public and private sector institutions and firms are involved in all these processes. The establishment of relevant public/private sector partnerships is therefore vital for the development and promotion of various enterprises. These partnerships are needed to provide the public sector push and the private sector pull to especially the small-scale subsistence farmers, towards market orientation and commercialization of agricultural production.

Public/private sector partnerships allow for establishment of out-grower schemes around nucleus production entities of agricultural commodities. This development reinforces farmer input/product market access and investment capital inflows. Out-growers’ schemes, with farmers around nucleus farms or agro-processing facilities, and essential services is one way of attaining production of quality and sustainable quantities of product to exploit the market opportunity, and for farmers to become effective players in the market.

The major outputs/benefits expected to flow out of such a partnership include:-

i. Linkage to markets and infrastructure: The constituent out-grower farmers will be able to readily access inputs including poultry and piggery production technologies as well as the output market within the framework of an enabling associated infrastructure.

ii. Establishment of quality standards:

45

The out-grower farmers will be trained and enabled to adhere to the obtaining quality standards for Uganda’s products such that they can successful exploit the national, regional and international markets that demand such quality standard prerequisites as a criterion for successful market penetration.

iii. Capacity building: The KICHWAMBA POULTRY & PIGGERY FARM will effectively build the productive capacity of the out-grower farmers in Rubirizi District – and in this way, be able to address the constraints to production, processing and marketing of agricultural produce.

iv. Technology development and sharing: The KICHWAMBA POULTRY & PIGGERY FARM will in partnering with NAADS identify and avail modern/improved technology that is required for improved production and efficiency to the selected out-grower farmers such that they can use to vastly improve their poultry and piggery production enterprises in terms of both quality and quantity – and in the process earn better incomes that will significantly improve their livelihoods.

v. Provision of inputs: The KICHWAMBA POULTRY & PIGGERY FARM/NAADS public-private partnership will facilitate the out-grower farmers with specific production inputs (e.g. breeding stock, equipment and specific tools, veterinary drugs, etc.), which farmers cannot easily access due to the required prohibitive capital investment. The beneficiary out-grower farmers can then be able to up their poultry and piggery production using such inputs to upgrade to commercial production and meet market demands and expectations. The partnership will also enable farmers to access credit and/or leasing facilities in various forms for such inputs.

46

47