Bright Rwamirama, the Minister of State for Animal Industry in the Ministry of Agriculture, Animal Industry and Fisheries
The government through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), plans to mechanize agriculture by cutting the cost of tractors by 40%. Agriculture remains the main backbone of Uganda’s economic growth.
Agriculture grew by 5.1 and contributed 24.6% in FY2023/24 of the national GDP and continues to employ approximately 70% of Uganda’s population directly or indirectly.
In absolute terms, the GDP increased from UGX 35.360 trillion in the FY 2020/21 to UGX 49.722 trillion in the FY 2023/24. The value of Agricultural exports registered a tremendous growth of 42 percent from USD 1.678 billion in FY 2020/21 to USD 2.535 billion in FY 2023/24.
The performance was attributed to the increased volumes and quality of coffee, dairy, fish and maize exported.
Bright Rwamirama, the Minister of State for Animal Industry in the Ministry of Agriculture, Animal Industry and Fisheries told the media in Kampala that working with New Holland, a tractor assembly plant has been established in Nakawa under phase one. Under phase two, Rwamirama said another assembly plant will be established at Namalere. According to Rwamirama, the government is also supporting the private sector to establish an assembly plant for the single axle (walking tractors) in Namanve.
To this, he revealed that “The assembly plant is expected to cut the costs of tractors by over 40%.”
He added that the government is providing tax exemption on imported tractors.
“Government through MAAIF entered an MOU with Cooper Motors to supply tractors at subsidized cost and this has reduced the hire costs of tractors from Shs. 120,000 per acre to Shs.80,000 by the private sector at ploughing and hallowing of land,” said Rwamirama.
He was updating the country on how far his ministry has gone with in implementing the 2021-26 NRM Manifesto commitments.
He revealed that under the primary processing and value addition, the government has concluded the feasibility study for the establishment of coffee soluble plant under the PPP framework. According to Rwamirama, the establishment of the coffee soluble plant is estimated to cost USD$ 48 million and that the plant will greatly reduce imported soluble coffee while boosting the country’s coffee exports in the region. In the long run, he said that the UDC is charged with designing, constructing and equipping the factory, provide working capital for at least 2 soluble coffee plants and 20 coffee washing stations established in central and eastern Uganda.
He added that the number of established value addition facilities increased from 763 (677 primary processors, 22 wet mills, 36 export grading facilities, and 28 roasters) in FY 2020/21 to 1,351 (1,093 primary processors, 131 wet mills, 37 export grading facilities, and 90 roasters) in the FY 2022/23.
Rwamirama said that the government inspected 3,647 coffee traders (buying stores and exporters) and processors (primary processors, roasters and brewers), registered and licensed 1,093 coffee processing factories, 2,164 coffee buying stores, 131 wet mills, 90 coffee roasters, 132 coffee exporters and 37 export grading facilities.
He added that the government has started the construction of a coffee Certification laboratory in Kasese.
At the end of the FY 2023/24, Rwamirama said that three (3) fruit factories namely, Yumbe Mango processing plant, Kayunga pineapple processing plant and Kapeeka Multi-fruit processing plants were established.
Rwamirama said that the commercialization of agriculture requires value addition and agro-processing. He noted that agro processing and value addition has improved through the provision of equipment including; Motorized Maize milling equipment, Milk coolers and generators; Rice milling equipment (threshers, hullers-polishers, cleaners, graders, etc.).
According to Rwamirama, the interventions have resulted in a tremendous growth in the value of agricultural exports of 42 percent from USD 1.678 billion in FY 2020/21 to USD 2.535 billion in FY 2023/24. He said further that the proportion of households in subsistence agriculture has reduced from 68% since FY 2017/18 to 33% in FY 2023/24 down from the target of 55% in the NRM manifesto.
During the period under review, Rwamirama said that the government mobilized farmers to stump over 15 million old and unproductive coffee trees and availed over 150,000 bags of organic fertilizers to improve productivity and quality of coffee across the country. Over 124.7 million coffee seedlings to 207,000 farmers in Elgon, West Nile, Rwenzori, Northern, Greater Masaka, South Western, Eastern and Central regions.
Through NARO, Rwamirama said that 3 new coffee wilt resistant varieties (CWDR-8, 9, 10) with a yield potential of up to 3.9 tons per hectare have been developed and promoted.
He said that 30,671 value chain actors (farmers, coffee processors, buyers and exporters) were trained in good harvesting and post-harvest handling practices (picking ripe coffee, proper drying and washing practices, storage).
In addition, Rwamirama said that 534 coffee farmers supported with small scale irrigation systems. The government also established 116 solar powered irrigation systems in various districts which included; Kabarole, Rubirizi, Mbarara, Katakwi, Abim, Kween, Kasanda, Wakiso, Isingiro, Kiruhura, Luuka, Lyantonde, Nwoya, Nakaseke, Kyotera, Buyende, Busia, Kumi, Kalungu, Luwero, Lwengo, Masaka, Nakaseke, Dokolo, Nakasongola, Kikuube, Sironko, Kamuli, Kagadi, Napak, Mukono, Katakwi, Kamwenge. He added that the government constructed a cumulative total of 2,050 microscale irrigation facilities under the UGiFT co-funding arrangement in 72 districts across the country. This fund, Rwamirama said, has enabled small holder farmers to access irrigation equipment and ultimately water for production to support all year-round production. He added that the Government pays between 25% and 75% of the total cost of the irrigation equipment depending on the package, but with a maximum contribution of 18 million Shillings.
Under the livestock sector, Rwamirama said that the government has rehabilitated Five (5) Milk Collection Centers in the districts of Katakwi, Kyegegwa, Kitgum, Nakasongola, Nabisweera. This, he said has increased the number of Milk Collection Centers to 729 from 355 from 2023 with a total estimated installed capacity of 3 million litres. According to Rwamirama, this has helped in reducing Milk post-harvest losses and promoted production of quality and marketable milk and milk products.
He added that the government has during the manifesto period provided 06 milk coolers to farmer groups in Gomba, Kakumiro, Mubende, Kamwenge, Kayunga, and Kyankwasi.
In addition, he said that the government has distributed demonstration dairy inputs to dairy farmers such as 942 Milk cans to promote good milk handling practices, 28 motorized chaff cutters for fodder production, 21 milking machines, and 4,645kgs of assorted pasture seeds (Chloris gayana, Packgong Sugar Napier, Bracharia, Calliandra, Lab lab, and Centrosema). According to Rwamirama, the government trained 19,085 dairy farmers in good animal husbandry practices, pasture establishment, management and conservation, animal feeding technologies, and clean milk production and handling practice.
Due to the above efforts, Rwamirama said that the production of milk increased from 2.81 billion litres in FY 2020/21 to 5.4 billion litres in FY 2023/24. In the same period, he said that the export value of milk and milk products increased from USD 92.4 million in FY2020/21 to USD 257.5 million in FY2023/24.
“This is attributed to the intensified enforcement and compliance by the private sector to quality standards and regulations as well as diversification in terms of different products exported such as Whey, casein, Milk powder, UHT, Butter, Ghee, Cheese yoghurt, among others,” said Rwamirama.
Rwamirama said that the government has adopted a multifaceted approach for controlling and eradicating the Foot and Mouth Disease in the Country. Under this arrangement, Rwamirama said that the government will carry out mass vaccinations for all susceptible domestic animals twice a year. Here, he said that farmers will pay 100% for the cost of vaccines and Governments will cover the costs of vaccine administration.
The minister revealed that Uganda currently generates about USD 200 million in fish exports, making it the 2nd largest export commodity after coffee.
The main destinations for other fish and fishery products are regional markets (especially Kenya and DRC).
Rwamirama said that the fish maw from Nile perch is emerging as another major international export product, whose main market destination is China. However, he said that the maw still has the challenge of illegal smuggling to Tanzania and Kenya where the official tax regime is much lower than in Uganda (Tanzania levies only USD 2.5 per kg, while Uganda charges 8% of the total batch value). However, the minister is hopeful that when the Chinese market export protocol is finalized, the official access to the lucrative Chinese market will improve the value of the maw products.