OILSEEDS COMMERCIAL FARMING Tony Gadhoke CEO tony@mukwano.com www.mukwano.com Agripreneur 2015

Mukwano Group of Companies Introduction Mukwano leading FMCG manufacturer Diversified group Brands and products household names A top exporter, tax payer and employer Several JVs ISO, UNBS and Halal certifications Strong CSR policy (health, education, sports, etc) Committed to CQX Mukwano Group of Companies

Agricultural Programme WHY? Forex Import substitution / backward integration Support Govt. in poverty eradication and agriculture dev CSR HOW? Embarked strategic partnerships with Agri community 2003 Partnered - USAID APEP, DANIDA and Min. of Agriculture to identify quality seeds (Hybrid) from South Africa - 2004 Contract farming system - guarantee market for farmers and boost production Extension services-supplying farm inputs and channeled marketing of farmers’ produce. Mukwano Group of Companies

Mukwano Group of Companies Commercial Farming 70,000 registered farmers actively participating 35% females Grouped - 2,300+ Producer Organizations Managed-250 Site Coordinators at Parish level Site Coordinators managed by Extension Service staff A.K.Oils & Fats (U) Ltd key buyer of sunflower, soybeans and maize Approx 60,000MT P.A. 0ver 60 billion approx procurement P.A Mukwano Group of Companies

Commercial Farming…coverage Mukwano Group of Companies

Extension services Demonstration fields Mukwano Group of Companies

Mukwano Group of Companies Extension services Demonstration fields Mukwano Group of Companies

Extension services - grain procurement Mukwano Group of Companies

Mukwano Group of Companies Agro- processing Oilseeds and grains processed in Lira oil mill Mill set up in 2007 200 MT/day preparation & SEP 75 MT/day maize mill Replacing technology – dehullers etc Future-feed plant, expand crushing to 500Mtpd Storage Warehouses Silos – phase 1-11,500 MT, Employs 500+ staff Mukwano Group of Companies

Agro- processing Oil Mill and oil storage facility

Mukwano Group of Companies Agro- processing Soybeans Preparatory & SEP – 200 TPD each Mukwano Group of Companies

Mukwano Group of Companies Agro - processing Mukwano Group of Companies

Mukwano Group of Companies Agro - processing Quality Control Laboratory Mukwano Group of Companies

Mukwano Group of Companies Products and markets Sunflower oil, soybean oil, maize flour, sunflower seed meal and soybean meal. Approx. 50% oil to Mukwano’s Kampala oil refinery. Rest exported to Great Lakes region and Europe Edible oils Paints and resins industries Snack industries Protein meals, nearly 30% sold locally. 70% exported to East African region, Thailand, India and Southern Africa Mukwano Group of Companies

Agricultural programme – Partnership projects 6 Village aggregation centers In remote areas. Increase production by working more closely with community. Training for Conservation farming & Post Harvest Handling. 70,000 farmers by end 2014 Low tillage Drying and storage Mukwano Group of Companies

Mukwano Group of Companies Commercial Farming Nucleus Farm – 4000 acres Located about 205 kilometers north of Kampala Train farmers in standard agronomic practices Demonstrate mechanized agriculture. Range of machinery and equipment Produces 10% of Lira oilseeds and grains reqt. Rearing goats Silage and fattening operation for cattle Large pilot program for Oil Palm (700+ acres now) Mukwano Group of Companies

Mukwano Group of Companies Successes Large farmer database 20% backward integration Social and economic development Livelihoods Reliable market Tax revenues for local and central govt Knowledge transfer Welfare Comfort for financial services providers Mukwano Group of Companies

Mukwano Group of Companies Challenges Planting seed supply Low local R&D-new varieties Low yields Low use of inputs Poor knowledge transfer Poor mechanization Poor road infrastructure Grain bulking facilities (drying,storage) communities & industries Pricing and market info Poor financial services & credit facilities Unscrupulous buyers Loyalty enhancement undeveloped animal feed sector (protein demand) Mukwano Group of Companies

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