No juice yet out of Soroti fruit factory

Launch. President Museveni commissions Soroti Fruit Factory on April 13. FILE PHOTO

What you need to know:

  • Broke. The management says they do not have working capital to operate it.
  • Mr Patrick Ocailap, deputy secretary to Ministry of Finance, said that a cabinet proposal for Shs10 billion has been sent to Parliament for approval.

Soroti. There was excitement among farmers in Soroti District when President Museveni graced the opening of the production lines at the Soroti Fruit Factory last month in Arapai Sub-county.

The desperate farmers had waited for four years and had watched their produce rot away. However, their joy has been short-lived.
Currently, the factory has turned down their request to supply fruits and the machine is out of service.

The construction of the project kicked off in April 2015 and it was scheduled to have been completed in 2016 to kick-start commercial production of processed fruit juice.

A survey conducted by the Daily Monitor among all leading supermarkets in Teso reveals that no single pack of juice has so far been supplied for consumption, even after the head of state commissioned the plant on April 13, to start production.

A dead silence of the would be running machines, is what currently rules over the mega Shs48 billion facility that is aimed at fighting household poverty through farming of citrus.

A source at the factory, who preferred not to be named, said when the factory was launched, the one week’s production capital was provided for by Uganda Development Corporation (UDC) and henceforth, it was the central treasury to takeover, but since then, it has not released working capital for the smooth operation of the plant.

“It is true there is no work going on, the little juice that was processed at the launch is still intact because the management has no money to recruit a sales person,” the source explained, adding that there is slim hope to have the funding this ending financial year.

He said this means that they will have to wait for the next financial year for funds to be allocated as working capital.

The factory has the capacity to consume six tonnes of oranges, two tonnes of mangoes and four tonnes of pineapples per hour.
Mr David Etengu, the proprietor of Grace Mini Supermarket in Soroti Town said they have eagerly waited for supplies from the factory in vain.

“We are told they are producing juice, but what is that they are producing that is not on the market?” he asked.
Mr Joel Olupot, a marketer with Our Supermarket on Soroti Main Street, said they are awaiting juice supplies.

Mr James Olupot said farmers, who had taken it upon themselves to deliver improved mangoes, have been waved back from the gates by security personnel, saying the plant is not currently buying fruits until they recruit marketers.

“We were told at the launch that farmers would be at liberty to deliver well sorted fruits to the plant. Some of us tried out, only to be waved back at the gate that production is not ongoing,” he said.

“There are improved mangoes which are ready among farmers and some oranges but we are not certain what the problem at hand could be, even our cooperative heads of Teso Tropical Fruits Cooperative Union are silent,” he added.

Mr Douglas Ndawula Kakyukyu, the chief executive officer of the factory, said as management, they are waiting for working capital to be approved by government.

“We are not there yet, we are still waiting. But very soon once the money is approved, we shall have the juice on the shelves of the supermarkets in the region, and across the country,” he said.

Mr Ndawula said there are processes within which money is approved.
Ms Josephine Okot, the chairperson of the board of Soroti Fruits Factory, said as management, they cannot borrow operation money since the plant is owned by government.
“We would be in trouble if we borrowed, unless they tell us to do so,” Ms Okot said.

She said as soon as the working capital, which she didn’t specify, is approved, they will roll out the juice to various demanding entities and officially start buying fruits from farmers.

Response

Mr Patrick Ocailap, deputy secretary to Ministry of Finance, said that a cabinet proposal for Shs10 billion has been sent to Parliament for approval.
He said the money under Uganda Development Corporation (UDC) will be allocated after Parliament approves of it, as it is with all other ministries.

“I think the money needed for the purchase of fruits, and other things will be available next financial year, starting on 1 July 2019,” Mr Ocailap, the deputy secretary to the treasury told Daily Monitor.