Uganda out to solve animal feeds puzzle

The study shows that six of the 12 refugee host districts (Adjumani, Kiryandongo, Kyegegwa, Lamwo, Obongi, and Yumbe) are in crisis. The districts host more than 1.2 million refugees.
Uganda has in the recent past found itself having to deal with climate-related shocks. Across two months of 2018, about 700 cattle were lost to the biting effects of a dry spell. Little wonder, Parliament will in three months review the Animal Feeds Bill, 2023. The Bill, among others, calls for creation of a committee to regulate production, storage, importation, exportation, and marketing of animal feeds in the country.

This Bill aims to grant licences to anyone wishing to produce, store, and do business in animal feeds because they make up 70 percent of production costs, the Agriculture ministry revealed in Parliament.

“The level of nutrition influences the infection rates and disease resistance in animals and the low level of nutrition is, therefore, part of the reason for the low livestock and poultry performance in Uganda,”  Minister of State for Animal Industry Bright Rwamirama noted.
In addition, the Bill calls for the creation of animal feed control laboratories and the hiring of chemists or animal nutritionists to oversee the testing and analysis of animal feeds and provide certificates of analysis for each batch of feeds prior to their sale.

Relevance
The Bill is relevant now more than ever. The unpredictable rains and severe weather patterns that are currently plaguing the nation have pushed food and animal feed insecurity into a crisis. This is on top of the outbreaks of diseases and pests, the conflict in Ukraine, and the influx of refugees.
The government is now enlisting the help of recognised private commercial farmers, the National Agricultural Research Organisation (Naro), the Agriculture ministry, the National Animal Genetic Resources Centre (NAGRC), the Defence ministry, and the National Enterprise Corporation. It plans to raise Shs363.57 billion to undertake the production of food and animal feed on 224,650 acres.
Thereafter, a Shs176.03 billion funding package for large-scale farmers to plant 114,661 acres in season A 2023 was directed by the Cabinet. The anticipated yield of this investment was 1701 metric tonnes of beans, sorghum, soy beans, and maize. However, no funding was given, which hindered the intervention’s goal from being fully achieved.
Ministries, departments, and agencies (MDA) were instructed to front-load the already appropriated budgeted funds amounting to Shs187.5 billion on the promise that they would be refunded through supplementary funding. The MDAs front-loaded Shs115.42 billion, but they never supplied the additional funding.

Falling short
A new government audit now reveals that these entities were not even adequately prepared to carry out this intervention. The MDAs were assigned goals to grow beans, sorghum, soy beans, corn silage, and maize on 109,989 acres for a total estimated cost of Shs187.5 billion. Despite revising the targets downwards to 76,708 acres, the MDAs could still only open 43,759 acres. Of these, only 32,428 acres were planted.

The MDAs were expected to yield 63, 5,982 tonnes of the planted acreage. But the end-of-season reports state that they produced 61,859 tonnes.
“Government should ensure that prior to implementing such interventions, adequate planning and consultations should be undertaken to avoid similar challenges during implementation,” Auditor General John Muwanga noted in his June 2023 report.

The Agriculture ministry has supported small-scale farmers with mechanised farm activities, irrigation, and value addition over the last five years. It has done this by acquiring, testing, and operationalising various units of heavy mechanisation machinery as well as a variety of farm tractors and accessories.

Delays
The ministry contracted multiple suppliers for the supply of 1,077 pieces of mechanisation equipment valued at Shs100.53 billion during the fiscal years 2021/2022 and 2022/2023. But the procurement process for 200 tractors, valued at Shs27.9 billion was delayed by more than seven months as a result of contract approval delays. It took up to 311 days instead of 81 days to sign the actual contract.
An average of 132 days were delayed in the purchase of 14 heavy earth-moving equipment for Shs17.82 billion, with some deliveries taking up to 202 days.
Some entities purchased and registered heavy equipment with private number plates rather than the official UG number plate series, which cost the government Shs10.58 billion.

Due to maintenance issues, six tractors valued at Shs0.77 billion were brought to a stop. It was discovered that four tractors valued at Shs0.42 billion were also underutilised. At 40.1 hours, these tractors were used on average, far less than the 840.7 hours per tractor that was the norm.
The Auditor General also discovered that farmers suffered lack of technical guidance from the Agriculture ministry. This included the supplier failing to get in touch with some of the farmers for general repairs and servicing of the tractors even though the equipment was still under warranty, tractors being delivered without tool boxes, and tractors having serious mechanical flaws or breakdowns. 

“Delays in procurement and distribution of tractors and heavy equipment undermines the promotion of agricultural mechanisation and denies opportunity to befitting communities or farmers. Failure to timely maintain and repair the tractors affects the effectiveness of the equipment,” the AG noted.

“I advised the Accounting Officer to enhance the use of the electronic tracking system to manage and supervise the utilisation of the tractors to achieve value from the funds invested. In addition, the inefficiencies within the procurement process should be investigated with a view of eliminating delays,” he added

Another try
The African Union (AU) is also attempting to solve the animal feed insecurity through a pilot programme dubbed the Resilient African Feed and Fodder Systems (RAFFS). Uganda is among the beneficiaries.

AU researchers have realised that inefficient production stems from low or no feed, which drives up the cost of foods sourced from livestock. And yet, this food becomes unaffordable for those who need the nutrients the most.
For instance, over the next 10 years, demand for livestock products in eastern Africa is expected to increase by at least three percent for all meats and more than six percent for eggs despite a deficiency in the amount of animal-sourced foods.

“Animal nutrition programmes should be supported by genetic improvement and robust animal health programmes,” Mr Rwamirama told the delegates at the conference where the RAFFS project was launched in late February.
This is desired to close Uganda’s feed deficit that’s estimated to be between 50 percent and 70 percent, AU figures show. Mr David Maina, the feed business development expert on the RAFFs project, said about three years back, livestock and food production was growing at two to three percent, less of the demand that was between eight and nine percent.

“We need to match our demand and supply. For years, studies have shown how demand grows and the production rates of food and livestock. I think our eyes should be shifted to closing that gap. If we focus on drought and create a lot of systems around it, we need to know that our population is fed on imports. We really have a huge opportunity to do import substitution if we do this,” Mr Maina said.

Farmers, however, remain sceptical. They, for one, say many banks still require the ideal value-based collateral, which consists of land and other immovable assets. Ms Frances Naiga Muwonge, an international development consultant at FNM Consulting, a business advisor, couldn’t agree more.
Conversely, financial institutions are cautious when extending agricultural loans. This spells doom for players in Uganda where 35 percent of her exports are sourced, and half of the country’s population is employed, the Uganda Bureau of Statistics figures show.

According to Olushola Obikanye, the Group Head of Agric Finance and Solid Minerals Group at Sterling Bank Plc, financial institutions, the feed and fodder system is currently not a viable business venture. He said this is because banking is a risky industry, where many lenders are more concerned with the profitability, viability, and attractiveness of collateral.