Battle for control of pineapple factory leaves farmers stranded

Members of Parliament’s Committee on Agriculture have questioned the ownership of the Shs2.5b Kayunga pineapple juice plant.
The MPs led by Dr Agnes Atim, the committee deputy chairperson, at the weekend inspected the plant located in Busaale Village, Kayunga District.
They were, however, shocked to discover that the land on which the factory was constructed does not belong to the government. The factory was built under the National Agricultural Advisory Services (Naads) programme.
Dr Samuel Mugasa, the Naads executive director, took the MPs on a guided tour of the plant and some pineapple gardens.

According to the legislators’ discovery, the land on which the plant sits is owned by Pastor Aaron Mutebi of Entebbe Miracle Centre.
“Dr (Mugasa) you have done a good job. And as a committee, we can support you do such many such projects across the country. But what we are telling you, never ever put a government project on a land where you don’t have ownership,” she said.
“Now what if the land owner by the time of the agreement says I am not convinced to remove your things, what will you do?” Dr Atim wondered.
In response, Dr Mugasa said in all the Naads value addition projects, it is a principal that beneficiaries provide land.
He explained that then Naads and the beneficiaries sign a Memorandum of Understanding (MoU) on how to utilise it.

Dr Mugasa also said in case the land owner wants the project out of his land, they can compulsorily acquire it.
“But in the next similar project, clarify the issue of land and ownership and governance before you invest government money,” Dr Atim advised.
According to the MoU, Pr Mutebi was supposed to provide the land and the structure, which would house the plant, and Naads was to install the machinery.
However, Mr Michael Shiwu, the Naads value chain development officer, said the structure which Pr Mutebi had constructed was too small to house the plant, prompting Naads to construct a big one.

Sources that talked to this reporter on condition of anonymity revealed that the fight for ownership of the factory is now between Pr Mutebi, Sem Agrotech, Naads and members of Kayunga District Pineapple Farmers’ Cooperative Society.
The four are said to be partners in the joint venture for the plant.
“Pastor Mutebi, who provided the land, is bitter that the plant given to him by President Museveni has been snatched away from him and now doesn’t know exactly what is going on with the project,” the source said.

But attempts to get a comment from Pr Mutebi were futile as he did not pick our persistent calls and his aide refused to speak on the matter.
Additionally, members of Kayunga Pineapple Cooperative Society also said unless the issue of ownership of the factory is sorted out, they will not supply pineapples to the plant.
“As pineapple farmers we should be allowed to run the factory, which we feel has been grabbed from us. The factory was constructed to help us get good market for our fruits, but we see people who don’t grow pineapples scrambling to manage it,” Mr Dan Bazannye, a pineapple farmer in Kangulumira, said.

But Ms Hadijah Nakakande, the Naads communications officer, asked all stakeholders to remain calm as they try to sort out the issue of management of the plant.
“People are quarrelling even before the issue of management of the plant has been handled. All these will be handled soon,” Ms Nakakande said.
It is also unclear why the plant, whose construction was completed last year, is not yet operational. Dr Mugasa had earlier assured this reporter that it would be commissioned in December last year.

The delay, farmers say, has left them with no option, but to sell the perishable fruits to traders who offer them low prices.
The plant, which was installed by Musa Body Uganda Ltd, has capacity to process five tonnes of fresh pineapple a day.
According to another source within Kayunga District Farmers Association, the ownership wrangle saw Pr Mutebi forcefully plant pineapples inside the fence surrounding the plant and also deploy private security guards. He has also petitioned President Museveni, asking that the plant be handed over to him.

Because of the wrangles, the source added, the Kayunga Chief Administrative Officer, Mr Abdul Batambuze, took over security of the plant and deployed police.
When contacted, Mr Batambuze said he was aware about the ownership wrangles but refused to divulge more information. He also said he had deployed police to ensure safety of the plant. Dr Mugasa said the plant is expected to be operational next month.

Background
Kayunga is known for pineapple growing, with the district having more than 10,000 acres of the fruit, according to Mr Geoffrey Kakooza, the coordinator of the district farmers’ association.A decade ago, government set up a Shs1b soap and cooking oil factory in the same district at Bukoloto Trading Centre but it collapsed in one year. Trucks and a tractor, which were meant to transport raw materials and finished products, are now hired to cattle traders and farmers. The factory is now abandoned and sources say most of its machinery has been sold off.