REDUCING HOUSEHOLD VULNERABILITY OF FORMER INTERNALLY

DISPLACED PERSONS IN NORTEHRN UGADA THROUGH

AGRIBUSINESS

Presented by: Acham Ketty Elungat.

Mobile: +256-772-489682

Email: necpalira@gmail.com

Website: www.necpaug.org

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North East Chilli Producers Association LTD (NECPA) is a company limited byguarantee without share capital. It was incorporated in the year 2000 formed by 1,027women. The principal objective of the organization is to improve food security andincrease household incomes of the rural poor through commercial production of high

Value crops such as chilli, Coffee, Cashew,Chia , Maize and Sesame

o NECPA has undertaken commercialized production of African bird’s eye chilli in theNorthern and Eastern regions of Uganda as the first innovator of African bird Eye chilliproduction

o NECPA is the biggest producer and supplier of chilli to exporters in Ugandaand East Africa.

o Currently NECPA supports 10,000 households, Mostly formerly Internallydisplaced and abducted persons of which 71% are women and youth, whoseproduction capacities have increased to 345, 000 kgs in 2014 and attracted apurchase price of up to ug.sh. 5,000 per kilogram from 4,500. Henceincreasing their incomes by 15% per household this season the current farmgate price of chilli is 6,000 and expected yield volumes is about 500,000 kgs(500 MTs) 2015 chilli crop

Organization background

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MISSION

Economic empowerment of rural poor House

Holds in Northern and Eastern Uganda

through the promotion of high value crops

and building community capacity, peace

building for financial stability.

Vision

Self-sustaining and financially prosperous

communities in Uganda .

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SOCIAL PROBLEM

The community of Northern Uganda are living

below poverty line due to war which lasted two

decades and the community was forced to

Internally displaced peoples camps with no

means to acquire human basic needs and

alternative incomes and food with the current

data of 46.2% poverty level as per national

household survey report 2009/2010 . In order to

reduce vulnerability caused by poverty NECPA

introduced high value and non- traditional crops

such as chilli & coffee ,Cashew nuts, Chia , and

Beekeeping in Northern Uganda 4

VALUE PROPORTION

African bird Eye Chilli is a high value crop

organically produced by 10,000 households in

Northern Uganda with high capsicum & pungency

required at the international markets

Our Coffee is the ranked 2nd best Robusta Coffee in

Uganda

Guaranteed and timely supply of quality quantities

dried chilli free of Aflotoxins

Easy traceability through contract farming

Chia has Omega 3 elements and very good for

household nutrition and improving body immunity

Our honey has high market demand locally and

internationally5

CUSTOMERS

Local exporters namely

ESCO Uganda Limited

MeTL Uganda LTD

Mayana Enterprises

Local communities ,

Asian Community in Uganda

DaniFoods

NUCAFE

UGACOFE

Shares Uganda Limited6

DISTRIBUTION

Direct sales to ExportersSupermarkets E-sales using( face book, YouTube, websites, Linked in

Plat forms such as APF forum and AAA

Sales agents

Community marketing committees

Agro input dealers

Sales points/ outlets

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Partnerships

Communities

Local Government

NARO, UEPB, UIA,UCDA,NUCAFE

Development partners

ICCO, USAID,NOW-WOTRO,YUNUS

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COMPETITION

Our main competitors are Mayana Enterprises LTD

Shares U LTD exporters of Organic chilli to Europe USA, North America

Middlemen who trade in produce

ICE mark Exporter of fresh chilli

DaniFoods The competitors are a major threat because they have enough cash to pay for the chilli however the cooperative advantage we have over them is that the farmers have built trust because of other benefits and services which we provide to them including contract farming access to seeds, extension services and capacity building which our competitors do not provide so they share 40% of the producers and suppliers

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Cost Estimates for 1 year in Euros exchange rate taken at UGX 3350 per Euro

No. Description/ Activity Quantity Unit cost Frequency Amount € Amount in UGX

1. Purchase of Isuzu track

(20 tons capacity)

1 € 45,000 1 € 45,000 150,750.00

2 Purchase of Chilli

processing Equipments

1 €65,000 1 €65,000 217,750,00

3 Construction of ware

house

2 € 25,000 1 €50,000 167,500,000

4 Purchase of dryers 10 € 3,000 1 € 30,000 100,500,0.

5 Promotions 1 € 5,000 3 € 15,000 50,250.00

6 Material cost/ purchase

of Chilli

35 tons € 2,600 1 €91,000 304,850.00

7 Operational,(Fuel,

maintenance &repairs

Lump sum € 15,000 1 € 15,000 15,000.00

8 Extension &

procurement Staffs

15 € 250 12 € 45,000 150,750.00

9 Management staffs 5 € 450 12 € 27,000 90,450.00

10 Technical staffs 3 € 400 12 € 14,400 48,240.00

11 Support Staffs 5 €200 12 €12,000 40,200.00

12 Branding 4 € 15,000 1 € 60,000 201,000,00

13 capacity building/

trainings

2 € 5,000 1 €10,000 33,500.00

Total €434.400 1,455,240,000

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REVENUE:

Our yield estimates 2015/2016 is 500,000kgs of

Dried Bird Eye chilli of which 250,000 kegs will be

crushed into chilli powder giving 90,000kgs of which

10,000 will be sold as powder and 80,000 will be used

to process chilli source

250,000 kgs @ 8,500 2,125,000,000

10,00 kgs powder @25,000 250,000,000

80,000 kgs Chilli Source @5,000 400,000,000

2,775,000,000

Equivalent Euros 828,359

Yield estimates for coffee 2015/2016 coffee year

is about 382,000 kgs kiboko which is bought at

2,300 per kgs and shall be hulled to FAQ and

total of 152,000 kgsFAQ Screen 18 which will be

sold to exporters at 8,000

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Challenges

•Limited financial resources/ Capital to Purchase African dried

bird eye Chilli & Coffee from producers, and other relevant

equipments/ machinery.

•Lack of Processing equipments

• Lack of a truck for transportation of chilli and other produce

•Limited Storage facilities / Ware houses

•Limited Drying equipment and technology

•Poor Quality of chilli due to poor post harvest handling and

lack of drying equipments

•Limited human resources to support the 10,000 households

and product diversification

•Limited transport facilities ( motorcycles and vehicles)

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CURRENT SOLUTIONS

Acquiring Bank loans, advance receipts from some buyers

We have small powder processing machine with limited

capacity

We have been using Double cabin pick ups with limited

capacity for carrying products only up to 1.5 tons and

hiring other tucks for collection and transporting at a very

high cost

We have small capacity store which can accommodate up to

25 ,000 kgs and hire others at community levels

Provision of local drying technology using UV polythene

sheets and direct sun drying using Drying racks and

papairus mats or tarpaulins in their open compounds.

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CURRENT SOLUTION CONTINUES

We have been conducting trainings for pre and

post harvest handling techniques.

We currently have up to 30 staffs and we are

using Community Based Facilitators to provide

services to the farmers using farmer field school

(FFS) methodology.

Currently we have two (2) double cabin pick ups

and five (5) motorcycles three (3) of which were

given by USAID Projects however they have

highly depreciated and so oftenly brake down.

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The project will improve quality and quantity of African Bird Eye

Chilli through provision of improved post harvest technologies and

dryers to the farmer households at a fordable cost, Value addition

through processing will be done this will increase farmer

household incomes as the farm gate price will improve Value

addition will be done to process chilli into powder and source in

order to promote local consumption and creating new market

opportunity

This will improve the mode of transportation of chilli from rural

collection centers to the main bulking stores

. Storage and Transportation will improve and the products will

increase NECPA incomes to provide better services to the

community

GROWTHAfrican bird Eye Chilli has very high demand in the Global

market and NECPA has technical expertise in chilli (human

resources) another opportunity is the diversification of

products such as Coffee, Chia, cashew nuts and Honey

which all have high market demand locally and

Internationally . The Government policy on

Industrialization and commercialization of agriculture

through value addition is opportunity for scaling up the

community will and commitment to produce quality

quantities of chilli and the selected value chains helps us to

scale up because currently we are at growth level and the

good climate for the selected value chains the mitigation

strategy for Climate change is already developed with the

community (Climate Change adaptation Strategy) 16

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