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The company targets to increase farmer payouts from Shs52bn to Shs80 billion in the next 5 years
Kampala, Uganda | JULIUS BUSINGE | Uganda Breweries Limited has unveiled ambitious plans to expand its Farm for Success program from the existing 35,000 farmers to a remarkable 50,000 farmers. This strategic move is part of the company’s commitment to sustainably source 100% of its agricultural materials, such as Barley, Sorghum, and corn, from local Ugandan farmers by 2030.
This development came during the annual farmers’ symposium organized by Uganda Breweries on Oct.19 in Kampala. This event serves as a platform for stakeholders in the agriculture value chain to foster mutual understanding, collaboration, policy alignment, and economic growth.
The Local Raw Material program, which began with Barley farming in 1987, gained momentum in 2003 when the Ugandan government introduced excise concessions for beer produced from locally sourced raw materials. This incentive facilitated the use of local resources in alcohol production, and UBL made significant investments, including a $21.3 million Mash Filter investment in 2011.
As a result, payments to farmers have seen substantial growth, reaching over Shs14 billion in 2011, Shs26 billion in 2017, and peaking at around Shs52 billion in 2022. The expansion of the program to over 50,000 farmers is expected to boost farmer payouts to over Shs80 billion in the next five years.
This year’s symposium revolved around the theme “Innovations in Agro technology, seed, and other Agro input.” Andrew Kilonzo, the Managing Director of UBL, emphasized the company’s commitment to increasing diversity and inclusion by onboarding more women and people with disabilities. The goal is to source over 60% of agricultural produce from women farmers and people with disabilities, supporting previously marginalized communities.
Kilonzo explained, “We do this not just to meet a quota, but to ensure that those who have not been part of this value chain are supported with the best farming practices, allowing them to supply us with the grains we need, earn a livelihood, become self-sufficient, and hopefully, pay it forward to other marginalized communities.”
To achieve this, UBL plans targeted capacity training sessions with women’s groups across the country as part of the onboarding process.
Uganda Breweries’ Society 2030 program aims to provide 100% of local sourcing communities with agricultural skills and resources. The goal is to build economic and environmental resilience while supporting 150,000 smallholder farmers.
Government commends UBL
The State Minister for Agriculture, Animal Industry, and Fisheries, Fred Bwino Kyakulaga, commended UBL’s Farm for Success program, highlighting its alignment with government objectives, as outlined in the National Development Plan III. These objectives include agro-industrialization, promotion of local manufacturing, and private sector development to create jobs for inclusive growth and sustainable wealth creation.
UBL’s Farm for Success program has also fostered strategic partnerships with government agencies such as the National Agriculture Research Organisation and Operation Wealth Creation.
Agriculture plays a pivotal role in Uganda, employing 70% of the population, contributing nearly 30% of export earnings, and constituting about 24% of the GDP.
Uganda Breweries collaborates with more than 35,000 farmers from various regions to procure over 8,000 tonnes of Barley, 15,000 tonnes of Sorghum, 18,000 tonnes of Maize, and 1,000 tonnes of Cassava. These contributions comprise 30% from Northern Uganda, 25% from Eastern Uganda, 35% from Western Uganda, and 10% from the Central Region.
Stephen Asiimwe, the Executive Director of the Private Sector Foundation Uganda, encouraged individual farmers to join groups and benefit from PSFU’s programs. He also urged the government to work closely with PSFU to establish mechanisms for providing affordable credit to farming communities, emphasizing the readiness of farmers to work if they are assured of a market for their produce.
He further called on East African states to remove non-tariff barriers related to transport and logistics to facilitate trade and boost the agricultural sector.
