Grinding juicy income by adding value to groundnuts

Buyongo displays peanut butter. The farmer has had his earnings double since he embraced value addition. Photos by fred muzaale

What you need to know:

  • Pius Buyongo projects that in the next five years their company will be among the best suppliers of groundnut products across the country, writes Fred Muzaale.

Peanut, also known as groundnut, is a legume crop grown in many areas in Uganda. For long, the crop has been grown on a small scale for its edible seeds. However, a number of farmers, especially in northern and eastern parts of the country now grow it on a commercial scale.
This is because of the increased demand for peanut products such as peanut paste which is used as an ingredient in sauces, cookies and other products.
Peanut seeds can also be roasted and eaten.
However, in Pida Loro village, Ongako Sub-county in Omoro District, 1,450 peanut farmers under Kweyo Grower’s Cooperative Society have discovered the gold in adding value to peanut by making peanut butter locally known as “Odii” out of it.
The association’s board chairperson, Betty Laker, says the farmers, who have for more than 30 years grown the crop, were either selling their produce when it was unshelled or shelled to buyers.
“The customers were paying us little money for our produce, especially during times when we have bumper harvests. This was because we could not keep the produce for long as we lacked proper storage facilities,” Laker says.
To overcome this challenge, they decided to make peanut butter from their groundnuts. They grow red-beauty variety for making butter because it is tasty and has a good aroma.
In 2016, Pius Buyungo, the production manager of the association says, they received a grant in form of a processing and milling machine from United States African Development Foundation (USABF) through Uganda Development Trust (UDET).
They use the machine to make peanut butter. The mill is supplied with peanuts grown by mainly association member farmers although occasionally they buy from other none-member farmers.
The association pays Shs2,000 per kilogramme of unshelled peanut to member farmers. They buy only unshelled peanuts to avoid any kind of contamination of the peanut seeds.

The process
• Buyungo says the process starts with sorting of dry unshelled peanuts to remove the bad ones.
• The peanuts are then shelled using a peanut sheller machine.
• After being shelled, they are sorted by people to remove the bad ones and any other things.
• The seeds are then put in a roasting machine where they are roasted and when it is done they are cooled to remove the seed coat.
• After this they are sorted again. This is done many times to ensure that the product is of high quality.
• The peanuts are then grinded in a stainless machine after which it is put in a collection container and then packed.
Their peanut butter is sold under, Kweyo Peanut butter, trademark and has a shelf-life of 12 months.
Their production capacity stands at two tonnes a day and are capable of supplying the whole country.
How it is consumed
Peanut butter is consumed in many forms. It can be consumed exclusively or mixed with vegetables, meat or fish. Some people spread it on bread slices and eat it.
Cost of the product
Buyungo says a 450 grammes pack goes for Shs10,000 while 750 grammes cost Shs15,000. The 1,500 gramme container goes for Shs25,000.

Market
They have been marketing their products in agricultural shows such as the Seeds of Gold Farm Clinic. They also get customers by referrals. For Buyungo and his partners, determination is the key to success.
They project that in the next five years their company will be among the best suppliers of groundnuts and its products in the country.
Since last year they have been making between Shs8m and Shs10m monthly. Besides referrals, Buyungo says they supply most of their products to supermarkets mainly in Kampala, Jinja, Gulu, and other big towns. They supply the product and are paid after a week.
About Kweyo
The association has 1,450 members, all growing groundnuts although they also grow other crops.
The society provides seeds and extension services to farmers to enable them get high yields and of good quality. The society provides a tractor to farmers at a subsidised price to till their gardens and farmers pay when they sell their produce to the association.