The Minister of State for Agriculture, Fred Kyakulaga, has urged farmers to capitalize on the growing brewery market by ramping up production of barley, sorghum, and corn.
Kyakulaga spoke on Thursday at the second Farmers’ Symposium, organized by Uganda Breweries Limited (UBL).
He emphasized the importance of farmers, regardless of land size, capitalizing on the opportunity presented by UBL. He highlighted the crucial role of UBL and similar companies in enhancing the value of agricultural products, thereby addressing the ongoing issue of limited market access faced by farmers in the nation.
At the event, UBL revealed plans to expand the number of farmers supplying it with raw materials under the “Farm for Success” program, from 35,000 to 50,000.
Under this new program, UBL is aiming to source up to 100% of its raw materials from Ugandan farmers by 2030. This will significantly boost the demand for various agricultural products. The demand for Barley is also expected to increase from 8,000 to 13,000 tonnes, sorghum from 15,000 to 25,000 tonnes, and maize from 18,000 to 20,000 tonnes.
Since the government introduced excise concessions for beer made from locally sourced raw materials, UBL’s payments to farmers supplying raw materials have been gradually increasing from 14 billion shillings in 2011, to the current 52 billion shillings as recorded last year.
The Farm for Success program is expected to further increase these payments to over 80 billion shillings in the next five years.
Andrew Kilonzo, the Managing Director of UBL, revealed that the Farm for Success program will bring on board more women and persons with disabilities (PWDs), with the goal of having up to 60% of suppliers from these two categories.
Francis Nyeko, a barley farmer from Agoro in northern Uganda, has been supplying UBL since 2011. He is grateful for the support UBL has provided. UBL has not only given them a steady and sustainable market but also offered fixed prices for their produce, bringing stability and prosperity to these farmers.
“This program is a game changer for our livelihoods back in the village since now we are assured of the market to our produces, which market has a fixed price. The increment in the demand is a challenge to us to do more at the farm.”
Nyeko appreciates the government’s support through extension services and research from NARO. He highlights challenges faced by farmers, including high-interest rates on loans and the impact of climate change on their seasonal farming activities.