ATUHAIRE PIA ATUHAIRE PIA Business Plan Document Document 1.0 1.0 INTR INTROD ODUC UCTI TION ON/P /PRO ROJE JECT CT BR BRIE IEF F
This project project aspires aspires to be a privately-held privately-held high-input/high-outp high-input/high-output ut clonal Robusta cofee arming agri-business located at Kibingo Village in Kiyaga Paris in B!"baire #!b$Co!n%y o Igara Co!n%y in B!senyi Dis%ri&%. The Kibingo-based mixed arm enterprise that is the subject o this Business TU)(IRE. The lan lan is o!ne o!ned d and and mana manage ged d by 's. PI( (TU)(IRE The outp output ut clon clonal al Robust obusta a cofee cofee arm arm !ill !ill be run run as a highhigh-in inpu put/h t/hig igh-o h-outp utput ut techno technolo logy gy modern agri-business enterprise. The project concept !as conceived in line !ith the "overn "overnment ment policy o maximi#i maximi#ing ng the potential potential o $ganda% $ganda%s s crop crop sub-sector by providing investment incentives to improve cash crop agribusin business ess&& suppo supporti rting ng the develo developm pmen entt o e'cie e'cient nt cash cash crop crop prod product uctio ion n systems or increased productivity to meet the export mar(et targets& and integ integra ratin ting g prod product uction ion into into the the mains mainstr tream eam monet monetar ary y econo economy my.. This This is outlined in the crop and livestoc( production and mar(eting strategy and the De*elo+"e +"en% n% #%ra%e #%ra%egy gy an, sect sector oral al deve develo lopm pmen entt ram rame! e!or or( ( ) the the De*elo In*es%"en% Plan !hich is the successor to the Plan -or 'o,ernia%ion o- (gri&!l%!re. This Business lan by 's. PI( (TU)(IRE envisage envisages s to apply the U#s 0 "ill "illio ion n *nanc *nancial ial acili acility ty being being sough soughtt in this this Busin Business ess lan lan to!ar to!ards ds the the scaling up and moderni#ation o its Robusta cofee production enterprise on its + ,cre arm in B!"baire #!b$Co!n%y o B!senyi Dis%ri&% using better Robus obusta ta cof cofee plan planti ting ng mate materi rial al see seedl dlin ings gs bett better er ar arm too tools and and e0uip e0uipme ment nt high high-in -inpu put/h t/hig igh-o h-outp utput ut techn technol olog ogy y techn techni0 i0ues ues to maxi maximi# mi#e e productivity and output and ta(e ull advantage o the ast-gro!ing domestic and regional export mar(et or $gandan Robusta cofee. 's. PI( (TU)(IRE U#s 0 "illi "illion on loan loan ro 'ICROFIN(NCE is see( see(in ing g the the U#s rom 'B(R(R( 'ICROFIN(NCE #UPPORT or a $ear loan$a++li&a%ion an, re&o*ery +erio, . Being a TU)(IRE is !or(ing under the auspices o a small-scale armer armer 's. PI( (TU)(IRE (B()IN2I B(RUN2I B(RUN2I loca locall ar armers mers11 cof cofee coll collec ecti tive ve grou group p (no! (no!n n as (B()IN2I B3O'4(NI (B( 2RE(TER BU#)ENI !hose principal objective is to bul( process and mar(et the cofee o the individual members in large 0uantities in order order to get better better price prices s and and enabl enable e its membe members rs to over overco come me the the challenge o losing out on the potential pro*tability o cofee gro!ing. The (B()IN2I B(RUN2I B3O'4(NI (B( 2RE(TER BU#)ENI armers1 collective group group in turn bul(s the cofee produced and delivered by its smallhold holder er ar armer mer memb member ers s proc proces esse ses s it and and sell sells s it to the the lar larger ger cofe cofee e processors and exporting companies that are mostly based in Kampala as 2,3 2air ,verage ,verage 3uality Robusta 4ofee. 1
ATUHAIRE PIA ATUHAIRE PIA Business Plan Document Document The arm !ill generate its o!n internal revenues to acilitate the operational cost costs s and and boos boostt the the ar arm gro! gro!th th thr through ough re-in e-inve vest stme ment nt.. The The proj projec ectt promoter ) 's. PI( (TU)(IRE !ill al!ays have a head-start advantage in (B()IN2I B(RUN2I B(RUN2I sel selling ing her Robust busta a cofe ofee produce direc irectl tly y to (B()IN2I B3O'4(NI (B( 2RE(TER BU#)ENI armers1 collective group ) given its pro proximity ximity and and !ill !ill ther thereo eore re al!ays al!ays enjoy enjoy premi premium um price prices s guar guarant anteed eed through this cooperative bul(ing processing and mar(eting system.
's. 's. PI( PI( (TU TU)( )(IR IRE E is a youn young g outg outgoi oing ng dyna dynami mic c and and ener energe geti tic c agricul agricultura tural-ori l-oriente ented d entrepr entrepreneu eneurr !ho dra!s dra!s inspirati inspiration on rom rom her strong strong arming arming amily roots. (llen3s main advantage is that she has had a previous 5 year years1 s1 bac( bac(gr grou ound nd expo exposu surre in the the same same cofe cofeee-gr gro! o!in ing g and and loca locall mar(etin mar(eting g business business at her arm arm at Kibingo Village in B!senyi Dis%ri&% though though at a much much smaller scale/sco scale/scope pe than !hat she propose proposes s to do. PI( stron strongl gly y eels eels that that the the prese present nt arm arm can do even even much much bette betterr than than the the present in raising its yield output i she can access additional *nancial capital to ac0uire 0uality clonal Robusta cofee planting material high-output/highoutput technology to boost its productivity !hich !ill inevitably lead to much higher *nancial returns and income pro*tability.
O!r 'ission To To be a year-roun year-round d local source source o high 0uality Robusta cofee that is gro!n gro!n usin using g organi ganic c prin princi cipl ples es that that also lso resul esultt in sae sae 2ood ood and a heal health thy y environment.
6ur "oals •
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To To create an organic organic agricultural agricultural product-based product-based arming arming enterprise enterprise !hose goal is to exceed customer expectations. Reach the point o sustainable pro*tability. 7njoy arm !or( !hile ma(ing a good living. 7nrich society !ith proper and hands on agricultural practices.
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ATUHAIRE PIA ATUHAIRE PIA Business Plan Document Document The arm !ill generate its o!n internal revenues to acilitate the operational cost costs s and and boos boostt the the ar arm gro! gro!th th thr through ough re-in e-inve vest stme ment nt.. The The proj projec ectt promoter ) 's. PI( (TU)(IRE !ill al!ays have a head-start advantage in (B()IN2I B(RUN2I B(RUN2I sel selling ing her Robust busta a cofe ofee produce direc irectl tly y to (B()IN2I B3O'4(NI (B( 2RE(TER BU#)ENI armers1 collective group ) given its pro proximity ximity and and !ill !ill ther thereo eore re al!ays al!ays enjoy enjoy premi premium um price prices s guar guarant anteed eed through this cooperative bul(ing processing and mar(eting system.
's. 's. PI( PI( (TU TU)( )(IR IRE E is a youn young g outg outgoi oing ng dyna dynami mic c and and ener energe geti tic c agricul agricultura tural-ori l-oriente ented d entrepr entrepreneu eneurr !ho dra!s dra!s inspirati inspiration on rom rom her strong strong arming arming amily roots. (llen3s main advantage is that she has had a previous 5 year years1 s1 bac( bac(gr grou ound nd expo exposu surre in the the same same cofe cofeee-gr gro! o!in ing g and and loca locall mar(etin mar(eting g business business at her arm arm at Kibingo Village in B!senyi Dis%ri&% though though at a much much smaller scale/sco scale/scope pe than !hat she propose proposes s to do. PI( stron strongl gly y eels eels that that the the prese present nt arm arm can do even even much much bette betterr than than the the present in raising its yield output i she can access additional *nancial capital to ac0uire 0uality clonal Robusta cofee planting material high-output/highoutput technology to boost its productivity !hich !ill inevitably lead to much higher *nancial returns and income pro*tability.
O!r 'ission To To be a year-roun year-round d local source source o high 0uality Robusta cofee that is gro!n gro!n usin using g organi ganic c prin princi cipl ples es that that also lso resul esultt in sae sae 2ood ood and a heal health thy y environment.
6ur "oals •
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To To create an organic organic agricultural agricultural product-based product-based arming arming enterprise enterprise !hose goal is to exceed customer expectations. Reach the point o sustainable pro*tability. 7njoy arm !or( !hile ma(ing a good living. 7nrich society !ith proper and hands on agricultural practices.
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ATUHAIRE A TUHAIRE PIA PIA Business Plan Document Document
5.0 5.0
#T( #T(TE TE'E 'ENT NT OF T)E T)E PRO PROB6 B6E' E'
Brie8y stated the majority o armers in Bushenyi district are not practicing #!s%ainable Co""er&ial (gri&!l%!re and hence oten ace ood insecurity and poverty leading to environmental degradation !hile in search or ood. This is largely largely due to the the ollo!ing ollo!ing actors9 •
:ac( o s(ills and (no!ledge e.g. !hat !hen and ho! to gro!.
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:ac( o inormation on sharing and use.
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:ac( o research bac( up.
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"ender ine0uity.
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:ittle advocacy in ;ustainable 4ommercial ,griculture.
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2e! mar(eting opportunities inormation s(ills and outlets.
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:ac( o access to credit acilities.
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:ac( o input supply and poor availability resources.
istrict cofee value chain have got got limite limited d sourc sources es o *nanc *nancing ing or invest investmen mentt !hich !hich hind hinders ers the sector1s gro!th. The ban(ing sector is emerging rom comort #one o mono monopol poly y but but even even still still are are largel largely y urban urban client clientele ele ocuse ocused d !ith !ith limited *nancial products. This scenario bars the small holder armers and small small ? mediu medium m scale scale proc process essor ors s to access access appr approp opri riate ate and and afordable *nancial services. 4onse0uently they resort to rely on o!n savings that oten times are insu'cient& 3
ATUHAIRE A TUHAIRE PIA PIA Business Plan Document Document
@. Limited market information that reduces farmers !ar"ainin" po#er ) ) lac( o mar(et inormation on prices mar(ets input supply stoc(i stoc(ists sts has has const constra raine ined d armer armers s rom rom achiev achieving ing mar( mar(et et orie oriente nted d production. production. Throughout Throughout the cofee value chain in Bushenyi >istrict the demand or these primary agricultural commodities ar exceeds the supply supply.. The s(e!ed s(e!ed demand demand versus versus supply supply attracts attracts speculat speculators ors and opportunists !ho ta(e advantage o limited inormation bet!een the respective respective actors. This situation hence breeds breeds lo! business ethics lac( o trust and reliability among actors in the chain. 7ven !here some armers are engaged in contract arming !ith processors this doesn1t prov provide ide a guar guarant antee ee o actua actuall delive delivery ry o yield yields s by arme armers rs to the processor& !hich ma(es it hard to predict i investments in the oilseed sector eventually turn out to be pro*table& rudiment entar$ ar$ farm farm equip equipmen ment t ) the bul( o smallh 5. Use of rudim smallhol older der armers still use the hoe as the main arm tool intensive and !hich is labour limits the land that is cultivated&
+. Inadequate e%tension ser&ices ) the perormance o enterprises on smallholder arms is poor because o lac( o technical guidance on improved agronomic practices. Thus most armers have not changed their arming methods and continue to reali#e lo! yields& A. 'eak producer "roups - producers1 groups that exist in Bushenyi >istrict are still relatively !ea( and not able to efectively engage and dialo dialogu gue e !ith !ith other other actor actors s on issue issues s that that afect afect them. them. This This limite limited d capacity hinges on t!o levels one on civic expression !hile the other lies lies on the the (no! (no!le ledg dge e and and s(il s(ills ls in agr agronom onomy y and and post post-h -har arve vest st handling. Both actors imply that limited s(ills !ill compound in poor 0uali 0uality ty and lo! lo! yield yields s !hich !hich trans transla lates tes into into lo! incom incomes es and and lo! productivity . Lo# application of modern technolo"ies ) smallholder agriculture in Bush Bushen enyi yi >ist >istri rict ct irr irrespe espect ctiv ive e o the the gend gender er o the the ar armer mer is char charac acte teri ri#e #ed d by lo! lo! yiel yields ds part partly ly due due to the the lo! lo! appl applic icat atio ion n o moder modern n tech technol nologi ogies es li(e li(e ertil ertili#e i#ers rs and and impr improv oved ed seeds. seeds. Comen omen armers use less improved inputs than male armers. 4urrently it is estimated that up to about DE percent o the armers in Bumbaire ;ub4ounty still use traditional arming methods and techni0ues& Hi"h cost cost of produc producti tion on ) commer F. Hi"h commercial cially ly supplied supplied inputs inputs such as improved improved seed seed inorgani inorganic c ertili# ertili#ers ers and pesticid pesticides es are are prohib prohibitiv itively ely 4
ATUHAIRE A TUHAIRE PIA PIA Business Plan Document Document costly or many smallholders. Gany small holder armers cannot also afor aford d the the high high cost cost o arm arm labou labourr. This This mean means s that that arme armers rs have have continued to practice subsistence production !hich limits production capaci capacity ty.. This This also also mean means s that that armer armers s canno cannott prod produce uce su'cie su'cient nt 0uant 0uantiti ities es o prod produce uce to meet meet house househo hold ld needs needs and and a mar( mar(etabl etable e surplus&
H. Price (uctuations ) caused by seasonal gluts and scarcity have the potentia potentiall o jeopard jeopardi#in i#ing g prepar preparatio ation n o realist realistic ic business business plans plans or commercial production& )i"ni*ca *cant nt losses losses due to post+ post+har har&es &estt handl handlin" in" and stora" stora"e e D. )i"ni facilities ) have ave or orced ced ar armers mers to sell sell thei theirr prod produc uce e 0uic 0uic(l (ly y irrespective o the price. This has resulted in dumping o produce on the mar(et causing drastic price depression. ost-harvest losses can be substantially reduced !ith improved storage and processing methods& Lack of transport for farm produce ) emale small holder =E. armers are unable to sell their produce at good prices due to lac( o transport means to the mar(et centres& Limi Limite ted d acce access ss to and and cont contro roll of land land ) emale-h ==. emale-heade eaded d households the majority o them being small holder armers have limited access to productive assets the most important being land& ,limate chan"e ) unpredictable/harsh !eather conditions that =@. adversely afects production levels. 4limate change resulting resulting mostly rom rom global global !arming !arming and enviro environmen nmental tal degrada degradation tion is among among the major major causes causes o reduced reduced agricul agricultura turall produc production tion and produc productivit tivity y in 7ast ,rica including $ganda. 4hanging !eather patterns patterns have made planting seasons unpredictable. This has made it di'cult or armers to plan their operations& En&ironmental de"radation ) population increase continues to =5. apply pressure on natural resources such as overgra#ing soil erosion lo! soil ertility deorestation and drainage o s!amps. ;oils in many part parts s o $gan $ganda da espe especi cial ally ly in !est !ester ern n $gan $ganda da have have unde underg rgon one e degradation due to over use. 4ontinuous arming on the soils !ithout replenishing replenishing o nutrients has led to depletion depletion o essential nutrients nutrients and lo! ertility o the soils&
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ATUHAIRE PIA Business Plan Document Institutional de*cits =+. ) including unpredictable local government taxation inade0uate over-sight in the operations o armers1 and cooperative groups& Pests and diseases ) incidences o pests and diseases and the =A. lac( o prevention and control measures has in some cases caused devastation o crops ma(ing the ood security situation !orse&
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#T(TE'ENT OF T)E #O6UTION
's. PI( (TU)(IRE !ill use the ollo!ing strategies to address these constraints and achieve its desired targets9 •
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4apacity building or ;ustainable ,griculture 4apacity building or roduction Techni0ues >evelopment o 's. PI( (TU)(IRE3s Robusta cofee arm to a level !hereby it can later be used as >emo 2arm ;ouring and inputting improved Robusta seeds/planting materials and enhanced arm productivity inputs into the arm to raise its productivity and output to a commercially viable and sustainable level >oing commercial and sustainable agriculture instead o subsistence arming. .1
Ca+a&i%y B!il,ing -or #!s%ainable (gri&!l%!re
The capacity need or peasant armers and 's. PI( (TU)(IRE3s Robusta cofee ar are in particular9 roduction techni0ues Gar(eting arm planning and agribusiness 6rgani#ation development ,dvocacy s(ills •
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Ca+a&i%y B!il,ing -or Pro,!&%ion Te&ni7!es
's. PI( (TU)(IRE3s Robusta cofee ar !ill see( to build its cofee productivity and arm output capacity by getting actively involved in 6
ATUHAIRE PIA Business Plan Document government-led armer capacity-building initiatives that consist o participatory demand driven and objective-oriented training programmes.
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(,o+%ion o- Ne8 Pro,!&%ion Te&ni7!es
's. PI( (TU)(IRE3s Robusta cofee arm !ill have to adopt ne! production techni0ues to enable the improvement o its Robusta cofee productivity. Io!ever these ne! production techni0ues should be underscored by the ollo!ing ne! approaches to the !ay it !ill be doing its arming activities9 -
=. Trans+or% Fa&ili%ies9 ,spire to ac0uire its o!n means o transportation preerably a pic(-up vehicle that !ill acilitate the cofee arm to access ne! arming inputs and enable it to sell its product in mar(ets. This !ill help 's. PI( (TU)(IRE3s Robusta cofee arm to raise its income !hich in turn !ill stimulate PI(3s o!ner1s interest to adopt better arm technology !ith su'cient and sustained income.
ATUHAIRE PIA Business Plan Document
+. (&&ess %o ;!ali%y In+!%s9 's. PI( (TU)(IRE3s Robusta cofee arm should strive to access 0uality inputs at proper times and at controlled prices. To protect the armers1 exploitation efective steps are needed to be ta(en by the "overnment to chec( the sale o adulterated ertili#ers. A. (gri&!l%!ral E,!&a%ion9 , or agricultural education and extension services.
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PROJECT BRIEF (ND OPPORTUNIT R(TION(6E
The project is related to the scaling up and expansion o a Robusta cofee arm enterprise on + acres =. Ia in a promising agricultural production armland o Bushenyi >istrict o !estern $ganda. The document highlights all the production mar(eting management and *nancial aspects re0uired or the successul scale-up and running o the project. <.1 •
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O++or%!ni%y Ra%ionale
4ofee continues to play a leading role in the economy o $ganda contributing =HJ o the export earnings bet!een @EEE and @E=A despite the vigorous eforts by "overnment to diversiy the economy. Though large scale cofee producers are gradually emerging the cofee sub-sector is almost entirely dependent on about AEEEEE smallholder armers. >omestic consumption o the commodity in $ganda is relatively small ranging rom +-=EJ o production. ,s such cofee is primarily an export crop. Bet!een @EEA and @E=A producer prices o cofee in $ganda ollo! export price trends very closely. roducers received + ) HH percent o the export price or 2,3 beans. $ganda liberali#ed its domestic Robusta cofee mar(et in =DD@ and since then armers have been ree to decide ho! and to !hom to sell their cofee. 8
ATUHAIRE PIA Business Plan Document The cofee industry in $ganda has undergone major reorms since the early =DDEs. 4ofee mar(et is completely liberali#ed. roducers1 share o export prices increased signi*cantly. The reorms have been successul at least at the export mar(et !here the export mar(et appears to operate optimally. "iven that cofee is relatively high value crop the observed and adjusted nominal rate o protection although negative in some years do not seem to be excessive. ,s cofee mar(ets are completely liberali#ed these deviations cannot be attributed to policy but rather to a mar(et development gap resulting rom relatively excessive pro*t margins at export level and imperect price transmission. <.5
Far" En%er+rise Ob=e&%i*es
The objectives o 's. PI( (TU)(IRE3s Robusta cofee arm or the *rst *ve years o operation include9
=. To create a product-based agricultural enterprise !hose goal is to exceed customers% expectations. @. To provide high 0uality and reliable supply o primary Robusta cofee products or both the export-oriented and value-added agricultural product consumer mar(ets in $ganda. 5. To utili#e the existing land and natural resource base to the best commercial advantage o the enterprise by using good arm and environmental management practices or sustainable productivity and gro!th o the arm. +. To increase the e'ciency o our production by =EJ a year. A. To develop a sustainable arm surviving of its o!n cash 8o!. . Tap the ast-gro!ing mar(et opportunities presented by the popularity and strong demand o $ganda1s cofee on the international mar(et. F. "enerate strong arm-based income that !ill lead to ast gro!th o cash 8o! and exponentially improve on the enterprise1s rate o return and pro*tability. H. To ul*ll all the customer orders and 0uality standards !ithin the *rst year o business operation. D. rovide employment opportunities or locals !ithin the area Bushenyi >istrict. 9
ATUHAIRE PIA Business Plan Document =E. Ga(e the arm a model small-scale Robusta cofee arming project that !ill gro! to inspire other up-and-coming arming enterprises o!%$gro8er -ar"ers !ithin the area by serving as a selsustaining demonstration unit or agricultural inspiration and on-arm training.
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'ission
's. PI( (TU)(IRE3s Robusta cofee arm plans to develop strong relationships !ith its umbrella organi#ation - (B()IN2I B(RUN2I B3O'4(NI (B( 2RE(TER BU#)ENI armers1 collective group so such that the enterprise can be vie!ed as an indispensable partner rather than just another ordinary countryside mixed arm enterprise. 's. PI( (TU)(IRE !ill see( out and !or( in active collaboration !ith the other cofee armers in the "reater Bushenyi area as the enterprise !ill represent to introduce the highest cofee 0uality product and ofer timely payments and see( most improved methods to increase production. The 2arm !ill not only be selling high 0uality cofee crop it !ill also be selling service and improving the livelihoods o the smallholder armers and agricultural product consumers in Bushenyi >istrict !ho have had limited options.
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Pro=e&% 6o&a%ion > Fa&ili%ies
's. PI( (TU)(IRE3s Robusta cofee arm is located at Kibingo Village in Kiyaga Paris in B!"baire #!b$Co!n%y o Igara Co!n%y in B!senyi Dis%ri&% . The arm has been in existence or the last three 5 years running no! !ith several on-arm structures and developments that include a +-acre plot o land valued at U2 #s. 50 "illion . <.
To%al Pro=e&% Cos% ?In*es%"en% #%r!&%!re o- Re7!ire, Ca+i%al@ The total capital investment o the proposed 4I#DO' F(R' is U#s A00000 and is comprised o the project promoter1s e0uity input including existing land and cofee plantation !ater harvest and storage systems investment in on-arm inrastructure cofee arm production inputs and pre-production and !or(ing capital re0uirements. The value o the exiting land and cofee plantation is U#s <0.0 "illion or A.1< o the To%al Pro=e&% In*es%"en% Cos% . The re0uired project *nance o U#s 0 10
ATUHAIRE PIA Business Plan Document "illion !ill be applied to *nancing the ac0uisition and installation o !ater harvest and storage technologies at a cost o U#s 11. "illion or 1.< o the To%al Pro=e&% In*es%"en% Cos%& and also *nance (ey onarm inrastructure at a cost o $;hs =E million or 1<.5 o the To%al Pro=e&% In*es%"en% Cos%& procure Robusta cofee arming inputs and also *nance !or(ing capital at a total cost o U#s. . "illion or 15.1< o the To%al Pro=e&% In*es%"en% Cos% . Table 1 belo! provides a brea(-do!n composition o the initial project investment cost.
Table 19 To%al Pro=e&% In*es%"en% Cos% ?U#s@ #. No. (. = @
Pro=e&% In*es%"en% E7!i%y Pro=e&% Co"+onen% #are Ca+i%al Finan&e 6an, > EGis%ing (sse%s :and + ,cres @H.AFJ @EEEEEEE E 7xisting 4ofee lantation @H.AFJ @EEEEEEE E #!b$To%al 6an, > A.1< <000000 Plan%a%ion 0 0 Planne, In*es%"en% (sse%s ?4a%er )ar*es% > #%orage #ys%e"@ >rip
C.
Planne, In*es%"en% (sse%s ?On$Far" In-ras%r!&%!re@
B. + A F
H
11
To%al ?Uss@
@EEEEEEE @EEEEEEE <000000 0
+EEEEEE @AEEEEE @EEEEEE @EEEEEE =EEEEEE 110000 0
ATUHAIRE PIA Business Plan Document =E ==
4ofee >rying ;heds >ried 4ofee ;torehouse
+.@DJ E =E.EEJ E 1<.5 #!b$To%al 0 Planne, In*es%"en% (sse%s ?Pro,!&%ion In+!%s@ 4lonal Robusta seedlings =.@DJ E ;mall 2arm Tools and 70uipment E.+J E 4ofee 2arm
15 D. =5
=+ =A = 1A 1 1
.0
5EEEEEE FEEEEEE 1000000 0
5EEEEEE FEEEEEE 1000000 00
DEEEEE
DEEEEE
+AEEEE @AEEEEE +AEEEE
+AEEEE @AEEEEE +AEEEE
00000 000000 0
00000 A000000 0
<5.
100.00
PRODUCT# > #ERVICE#
rimary Robusta cofee is the agricultural product that !ill be produced and delivered by 's. PI( (TU)(IRE3s Robusta cofee arm. "iven belo! is a brie description about cofee arming in $ganda. .1
Ugan,a CoHee 2ro8ing ones
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ATUHAIRE PIA Business Plan Document
100 ROBU#T( 100 (R(BIC( 0/0 'O#T6 ROBU#T( 'O#T6 (R(BIC( Table 59 Con,i%ions -or CoHee 2ro8ing in Ugan,a I,eal Rob!s%a &oHee (rabi&a &oHee &on,i%ion 13
ATUHAIRE PIA ,ltitude Terrain Temperature ;oil type
Rainall
Business Plan Document ;ea level HEE-=AEE masl 2lat or gently sloping =H ) @Fo 4 >eep !ell drained ertile loamy soils rich in organic matter and exchangeable bases particularly potassium =@EE-=AEE mm/year and !ell distributed or a period o about D months
=5EE-@5EE masl 2lat or gently sloping =A ) @+o 4 >eep !ell drained ertile and slightly acidic loamy soils o pI +.A to A
=@EE-=AEE mm/year and !ell distributed over a period o about D months
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Rob!s%a CoHee
,lonal ,o-ee.
4ofee has long been the leading export commodity o $ganda. ,rabica and Robusta cofee are the t!o most common types gro!n in $ganda. ,rabica cofee has better yield and is commonly ound in the high-altitude areas o 14
ATUHAIRE PIA Business Plan Document the eastern !estern and southern regions o the country in agricultural production Lone =E $;,<>-,7 @EEH. Robusta cofee on the other hand is a native $gandan cofee type gro!n in almost all parts o $ganda. Robusta cofee is gro!n in Lones F and D. 2or both cofee types several varieties are ound. Robusta cofee can be produced as clonal cofee a ast-maturing and better yielding type $;,<>-,7 @EEH. Gost cofee on the local mar(et is 4lonal Robusta and other Robusta cofee varieties.
roduction o cofee under lo!-input technology generates around $;hs @EEEEE per hectare. roduction o improved cofee !ith lo!-input technology generates about $;hs 5EEEEE per hectare. The use o high-input technology or local and improved varieties improves gross margins by ourold or more. Io!ever armers must be able to bear substantial material input costs i they are to use high input-technology. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill dedicate + ,cres =. Ia to!ards clonal cofee production and projects to harvest at least =.H metric tons o clonal Robusta cofee per acre per season ) !hich translates to an annual output o =+.@ metric tons and a sales volume o =5.H metric tons o clonal robusta cofee every year net o post-harvest losses. Fig!re 19 Ugan,a &oHee +lan%a%ion an, ar*es% +erio,s O& No* De Jan Fe 'ar (+r 'a J!n (! RE2ION# %. . &. . b. . . y . J!l. g. 47MTR,: G,
G,;,K, 7,;T7RM B$"<;$/;7B7 < C7;T7RM
2:N 4R6 Robusta G,
G,
G,
2:N 4R6 Robusta G,
C7;T M<:7 G,
.
4y 2ro8 CoHee
O 4ofee is gro!n by all types o armers men !omen and youth !ho have land. 15
#e+ .
ATUHAIRE PIA Business Plan Document O 4ofee is pro*table depending on the yield per acre/hectare the 0uality the cost o arm inputs including tools labour and transportation and the price at !hich armers sell the cofee. O To obtain high yields and better 0uality the cofee armer must (no! and ollo! the proper methods or gro!ing cofee !hich are explained in this training pac(age.
.0
F(R' OPER(TION# P6(N .1
Es%ablis"en% o- a CoHee Far" 0101 Preparin" )ite for a ,o-ee 2arm 16
ATUHAIRE PIA Business Plan Document Fig!re 19 I,eal #i%e Pre+ara%ion -or a CoHee Far"
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repare the land during the dry season and remove any tree stumps and roots to minimi#e ungal diseases. Kill excess trees one year in advance by ring bar(ing. :eave some mature trees or shade. ,im or a spacing o @Em x @Em. This gives a good shade cover !hile not creating competition or !ater and nutrients. Remove perennial !eeds such as couch grass by using herbicides or digging and handpic(ing them rom the ground. >on1t till the soil unless intercropping cofee !ith other annual crops. 2or sloped terrain apply soil and !ater conservation measures li(e contour trenches contour terraces vegetative barriers bands grass strips and cut-of drains to avoid soil and nutrient loss. lant banana trees or extra shade i re0uired.
0103 Plant )pacin" 'ar:ing el, an, ,igging oles -or +lan%ing &oHee =. lant Robusta cofee in lines at a spacing o =Et x =Et +AE trees per acre. @. lant ,rabica cofee in lines at a spacing o Ht x Ht HE trees per acre. 17
ATUHAIRE PIA Business Plan Document 0104 Hole Preparation #%e+
#%e+
5 5
#%e+
O Gar( positions !here the cofee !ill be planted !ith pegs arranged in regular patterns to acilitate management. O >ig circular holes o Ecm @t in diameter and Ecm @t in depth at the mar(ed points at least 5 months beore planting. This allo!s or better !ater and root penetration through the soil because it has had time to loosen. O reparing holes beore the planting season helps you to be ready or planting at the *rst rains. O Chen digging the holes (eep the ertile topsoil separate rom the subsoil. 18
ATUHAIRE PIA Business Plan Document O Re*ll the holes !ith topsoil about a month beore planting. Chere possible mix the top soil !ith a @E-litre basin o !ell-decomposed manure beore re*lling each planting hole.
O < available also mix in one handul o T; ;; or >,. hosphorus stimulates root gro!th. O Ieap the soil above the ground level to allo! or sin(ing !hen the soil settles. L Gar( positions !here the cofee plants !ill be planted !ith pegs. 0105 )electin" Plantin" 6aterials
#ele&%ing +lan%ing "a%erials =. 6btain all planting materials rom a $4>,-certi*ed source. @. 2armers may raise their o!n seedlings using seeds or cuttings rom a certi*ed source. 5. lant cofee seedlings !ith bet!een -H leaves. •
"et cofee plants !ith bet!een -H leaves rom $4>,-certi*ed nurseries one month beore the onset o the rainy season. 19
ATUHAIRE PIA Business Plan Document ;ee( guidance rom $4>, or your >,6 i you !ant to gro! your o!n seedlings. ,l!ays use seeds or cuttings rom a certi*ed source. •
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4hec( all seedlings or signs o pests and diseases& especially root mealy bugs aphids and other suc(ing insects. This prevents introducing pests and diseases into your garden. >o not buy seedlings i the roots protrude ar beyond the polythene pots because the taproot may be damaged. 0107 Plantin" ,o-ee
O lant cofee plants @ to + !ee(s ater the onset o the rainy season. O Roots protruding beyond the polythene pots should be trimmed beore planting. O 6pen-up the centre o the *lled holes su'ciently to *t the si#e o the potted plant. O Remove polythene pots. O 4areully loosen ca(ed soil around the roots to ease !ater upta(e and root development. O lace the plant in the hole !ith the collar at level !ith the surrounding soil or slightly higher to allo! or some sin(ing !hen soil settles. O Cater the seedling beore and immediately ater planting. O Regularly inspect the planted *eld to identiy dead plants and replace them as soon as possible. O rotect each seedling rom sunshine by providing shade tree branch. .5
Far" (grono"i& 'anage"en% 0301 Trainin"/Bendin" a ,o-ee Tree
4ofee is trained in a multiple system by bending and pegging do!n month-old plants at about +A degrees to stimulate suc(er production. To do this the armer should9 O Bend the cofee plants so that they all bend in the same direction along the ro!. O ;elect 5 suc(ers to orm the uture bearing stems rom the base o the trained plant. The *rst selected suc(er should be at about @Ecm inches - = oot rom ground level and the others at the next nodes. O Remove the peg !hen the selected suc(ers are about 5Ecm = oot tall. O This allo!s the bent stem to develop up!ards. 20
ATUHAIRE PIA Business Plan Document
,lternatively ne!ly planted cofee plants o +- months are capped at a height o =A ) +Ecm ) = inches above the ground. This is done by removing the stem tips to encourage development o multiple stems !hich are then selected as described above. No%e9 4apping is less efective than bending or inducing suc(ers.
0303 'eed ,ontrol/6ana"ement
Ceeds compete !ith plants or !ater and nutrients and can lead to reduced crop gro!th lo! yields and poor 0uality cofee beans i allo!ed to gro!. Ceeds in young cofee gardens up to a year old should be controlled by mechanical methods such as digging !ith a hand hoe and slashing !ith a machete or slasher or by cultural methods such as mulching. Ceeds in old cofee gardens are controlled by mulching or alternating mechanical methods !ith chemical/herbicide spraying. Chen using herbicides ollo! the manuacturers1 instructions on the label or get help rom an extension o'cer or a more (no!ledgeable armer colleague. Ring !eed belo! the canopy to avoid damage to the plant during slashing or spraying. ,void spraying the cofee leaves as this may (ill or cause retarded gro!th.
0304 6ana"in" )oil 2ertilit$ I 21
ATUHAIRE PIA Business Plan Document
4ofee re0uires ertile soils !ith high levels o nitrogen phosphorus and potassium. The ertili#er re0uirements are dependent on the inherent soil ertility status soil pI level o production and usage o cultural arming practices li(e mulching using manure and irrigation. 6ne @E-litre basin o decomposed manure co! dung chic(en litter household !aste compost should be added to the soil !hen planting to improve soil ertility. 2or existing cofee trees 5-A(g o manure should be added around each tree once a year. >o not heap manure bet!een the trees.
0305 6ana"in" )oil 2ertilit$ II
,t the beginning o the rainy season apply inorganic ertili#er around the tree !ithin the rooting #one but do not allo! it to touch any part o the cofee plant especially the leaves. 2or trees that are up to t!o years old apply FAg o ertili#er per tree per rainy season. ,pply @AEg per tree per rainy season or Robusta cofee trees that are more than @ years old and @EEg per tree per rainy season or mature ,rabica cofee trees. 2or Robusta apply9 MK @A9A9AP 2or ,rabica apply9 4,M MQ@J or 4,M MQ@FJ 22
ATUHAIRE PIA Business Plan Document
0307 Prunin" and De+suckerin"
$se secateurs or a pruning sa! to remove dead !ea( or unproductive branches and small suc(ers. ,lso remove tertiary branches dead primary branches and the s(irt o lo!er primary branches that touch the soil surace to avoid inestation rom the soil. runing encourages ne! gro!th and improves productivity.
030 )tumpin"
;tump cofee to rene! the stem cycle either by clean or staggered stumping. 23
ATUHAIRE PIA Business Plan Document O ;taggered stumping involves cutting do!n non-productive stems at the end o every season. O 4lean stumping involves cutting do!n all cofee stems ater F-D years starting by leaving one breather stem !hich should be removed ater about months soon ater suc(ers have sprouted rom the stumped stems. O 4lean stumping can be carried out at once in an entire cofee garden i the armer has alternative income. ;tumped cofee *elds can be intercropped !ith cover crops li(e beans groundnuts and peas to earn some income to add nitrogen to the soil and to improve productivity. O ;taggered stumping involves cutting do!n part o the cofee garden. < a armer needs to harvest a crop every year part o the cofee garden can be stumped every year.
Gulch a cofee garden !ith mai#e stra! bean trash banana leaves cofee pulp grasses or any other dead plant material. 2orm a loose layer o mulch on top o the soil that is no more than inches deep. lace the mulch = oot rom the cofee stem to prevent inection !ith collar rot or attac( rom ants and termites. >o not heap the mulch bet!een the trees. The bene*ts o mulching are many.
,pply soil and !ater conservation practices to minimi#e loss o soil ertility through erosion and retain moisture or the cofee especially in the dry periods. The ollo!ing techni0ues can be very valuable to the cofee armer9 O Terracing along contours reduces soil erosion by minimi#ing rain!ater runof. O >igging pits/troughs at some points o the terrace preserves rain !ater. The !ater drips through slo!ly to the neighbouring cofee trees and
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ATUHAIRE PIA Business Plan Document can preserve trees during the dry period. ,dd a small amount o oil to the trapped !ater to prevent breeding o mos0uitoes. O lanting cover crops such as mucuna phaseolus beans lablab and groundnuts as !ell as mulching prevents soil erosion and retains soil moisture. O lanting grass such as tithoria diversitalia at the edges o the gardens and ridges o terraces/contour bunds reduces soil erosion. O ;hade rom shade trees also reduces soil erosion and lea(age o minerals/soil nutrients to a deeper ground level beyond the reach o cofee roots.
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)ar*es%ing an, Pos%$)ar*es% )an,ling o- CoHee 0401 Har&estin"
O >o not strip all cherries of the branch. O Iarvest only ully ripe bric( red cherries. o not dry the cofee on bare earth because this causes the cofee to ac0uire an earthy smell and soil microbial contamination. 25
ATUHAIRE PIA Business Plan Document O ;ort out immature diseased pest inested or overripe cherries and process them separately. Remove all extraneous materials such as t!igs leaves stems and stones.
0403 'et Processin"
The ripe cherry is either !et processed or dry processed or both ,rabica and Robusta. Cet processing involves 8oating !ashing and pulping the cherry to separate the pulp rom the parchment. O 2loat the reshly harvested cherries in !ater to remove un*lled ruits and extraneous materials. Remove 8oats and pulp clean cherry only. This must be done !ithin =@ hours ater harvesting. O Keep reshly pulped cofee beans in a container or =@-@+ hours to allo! ermentation. Mext !ash the ermented cofee thoroughly to remove mucilage rom the parchment and dry !ashed parchment on !ire trays or a tarpaulin. O Ripe cherries can be pulped using small manual or large po!er-driven pulpers. o :arge scale pulpers are able to remove mucilage during pulping and thereore the ermentation process may not be necessary. o Gost o the ,rabica cofee in $ganda is !et processed using small manual pulpers. o Robusta cofee is !et processed by a e! large cofee producers. o Cet processed cofee is thought to have superior cup 0uality compared to dry processed cofee. 26
ATUHAIRE PIA Business Plan Document
0404 Dr$ Processin"
>ry processing involves drying the cherries !ithout removing the pulp. ry cherries on tarpaulins or concrete 8oor at a thic(ness o F-Hcm but not on bare ground. Turn the cofee regularly by ra(ing. ,t night stac( trays in a store or house. >o not leave !et cofee heaped or it !ill develop mould. O 4ofee must be dried to an acceptable moisture content o ==- =5J
0405 )tora"e 27
ATUHAIRE PIA Business Plan Document
O Ga(e sure you only store dry cofee in bags !hich are ree rom any bad smells. >o not use ertili#er or *sh bags or storage. O lace the cofee bags on pallets raised to at least =Acm and at least 5Ecm a!ay rom the !alls and ceiling so as to avoid any moisture entering the bags. O 4ofee should preerably not be stored in the same store !ith other arm produce. O archment and (ibo(o cofee should be stored separately. O Mever store cofee in the same store !ith agro-chemicals and oil products. O ;torage rooms should be !ell-ventilated and lea(-proo.
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EMECUTION OF (CTION P6(N9 F(R' RE;UIRE'ENT# 28
ATUHAIRE PIA Business Plan Document A.1 Ob=e&%i*es o- Co""er&ial CoHee Far"ing
The objectives o commercial arming in a general context can be summed up as ollo!s9 •
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To e0uip 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ith ne! and mar(etable production (no!-ho! and modern arm management techni0ues& ;mall and medium-si#e producers are pro*cient in better agricultural production and mar(eting practices& 7nhanced producer incomes rom better production and mar(eting techni0ues and mar(et plans and livestoc( production budgets& and 4reation o ne! seasonal part-time and ull-time jobs.
A.5
Pro=e&% In+!%s
"eneral 2arm rying ;heds ? >ried 4ofee ;torehouse :and ) + ,cres =. Ia. 7lectric po!er connection Cater connection and !ater supply system =EEEE litre capacity !ater tan( Gotori#ed Cater ump-;et = I ;imple
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ATUHAIRE PIA Business Plan Document ;mall 2arm Tools and 70uipment •
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In*en%ory 'anage"en%
's. PI( (TU)(IRE shall (eep records o all *eld operations expenditures and income in order to assess the pro*tability o the arm and help plan or the uture. 2ield activity records shall be separated rom arm sale records and both shall have up-to-date inormation. Far" (&%i*i%y Re&or, 's. PI( (TU)(IRE !ill also record inormation about the *eld/plot the *eld activity done land preparation planting !eeding mulching ertili#ing crop protection pruning harvesting etc. the date o activity the method o implementation the number o !or(ers and cost o labour and the cost o materials. Far" #ales/In&o"e Re&or, 's. PI( (TU)(IRE !ill also record inormation about the item sold cofee other crops animals etc. the date o sale the service rendered the 0uantity sold the unit price the overall income rom the transaction the name and number o the buyer and any other comments. A.<
Far" B!siness 'anage"en%
(. Da%a 'anage"en% Ce !ould li(e to obtain or develop pro*t-trac(ing sot!are !hich !ill help monitor all specialty crop pro*t data. B. Ris: 'anage"en% Ce !ill loo( at the availability o crop insurance and as a primary smallholder commodity producer !e !ould also need to purchase mar(eting related liability coverage as !ell as property and acility liability coverage. C. Ins!ran&e ,s a primary small-holder commodity producer !e !ould also need to purchase mar(eting related liability coverage as !ell as property and acility liability coverage.
D. TaGes
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ATUHAIRE PIA Business Plan Document "iven that the company is a legal corporation in the Republic o $ganda it is subject to standard corporate other business income taxes that are payable once annually to the $ganda Revenue ,uthority $R,. E. 6i&enses > Per"i%s 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" plans to apply the "ood ,griculture ractices ", training and third party audits. A. •
EG+e&%e, O!%+!%s/Res!l%s
Robusta cofee berries Kibo(o and parchment 2,3 80701 Intan"i!le :utputs
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istrict& 7mployment opportunities or youth in Bushenyi >istrict created among the various commercial armers/producers& The mar(et and popularity o cofee arming as viable agri-business venture accordingly promoted and expanded in Cestern $ganda& 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" becomes a sustainable Robusta cofee arming unit !ith a strong arm-based income cash 8o! and a high rate o return and pro*tability& The existing land and natural resources are utili#ed to the best commercial advantage o the enterprise using good arm and environmental management practices or sustainable productivity and gro!th o the arm& 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" becomes a n!&le!s "o,el "iGe, -ar"ing +ro=e&% that serves as a training/inspirational nucleus or training and support o other up-coming small-holder cofee armers in Bushenyi >istrict& 6rgani#ed armers1 groups accessing and sustainably using improved production and post-harvest technologies established& 4apacity o armers developed or production o good 0uality cofee and mar(etable volumes or mar(eting& 2armers1 organi#ational s(ills mar(et-oriented decision ma(ing and business management developed or organi#ed mar(eting o poultry and piggery products and
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ATUHAIRE PIA Business Plan Document ;ustainable cohesive partnership that ensures timely cofee armers1 access to services as !ell as mar(eting o poultry/piggery products established. •
A.
Da%a Colle&%ion > Boo: Kee+ing
8001 Data ,ollection 6ethods 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" (eeps appropriate and relevant inventory cash boo(s ledgers and journals that are used as a veritable source o inormation and data on the periodical 2arm Return. The periodical Far" Re%!rn is organi#ed in tabulated ormat !ith its entry headings described in Table belo!9 Table 9 Des&ri+%ion o- %e Far" Re%!rn )ea,ing )ea,ing Des&ri+%ion Ieading ,
Ieading B
Ieading 4 Ieading >
Ieading 7
Ieading 2
Ieading "
Ieading I
Ieading <
Ieading U
6abo!r. ,ll labour paid and unpaid but excluding labour used on !or( under contract !hich has contributed to !or( on the arm during the accounting year. N!"ber an, *al!e o- &oHee %rees. 6pening and closing valuations in number and value and average number o cofee trees. CoHee +!r&ases an, sales. The total Speriodical/seasonal value o such transactions. Cos%s. alue o all non-capital inputs used in the production o non-capital products during the accounting year. 6an, an, b!il,ings ,ea,$s%o&: an, &ir&!la%ing &a+i%al. e*ned as speci*c payments made directly to the arm business rom public unds excluding those or investment in land plant machinery and e0uipment. Pro,!&%ion ?&ro+s an, ani"al +ro,!&%s li*es%o&: eG&l!,e,@. The area 0uantity and value o all crops animal products and other activities. De%ails o- +!r&ases an, sales o- li*es%o&:. 32
ATUHAIRE PIA Business Plan Document urchases and sales per diferent grades o parchment 2,3 cofee. The sub-totals o purchases and sales per grade o 2,3 cofee ;creen =@ ;creen =A ;creen =H... are registered in Ieading 7.
8003 2arm Book ;eepin"
,s commercial arming ta(es shape and gains momentum in $ganda it is becoming more complex and capital intensive thus creating the need or detailed analysis to ma(e *nancial and production decisions using computer hard!are and sot!are technology.
The operator o any arm business needs to (eep accurate detailed records or such purposes as applying or a ban( loan *ling a tax return and assessing the *rm1s *nancial condition. 4omputer sot!are is also important or use in production decision-ma(ing on the arm.
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ATUHAIRE PIA Business Plan Document
.0
PROJECT NEED# FOR I'P6E'ENT(TION OF (CTIVITIE#
4ofee arming needs to be handled tactically right rom the selection o the site to the *nal stage !hen the birds are sold. That being the case the selection o the 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" at Kibingo Village !as done in such a !ay to ensure that the transportation o arming inputs can be al!ays be easily handled. The entrepreneur is still trying her level best to ensure that the ollo!ing things are available at the arm site beore gearing up to ull production parameters9 ,vailability o permanent !ater sources at the arm Road access ,vailability o po!er supply at the arm through the purchase and installation o a stand-by electricity generator • • •
Table < belo! provides a general outline summary o the inrastructure e0uipment material and cofee arm re0uirements o 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar". 2or a more precise presentation arm investment input costs have been separated into existing and planned investments ) such that an objective comparison/assessment can be made o !hat has already been done relative to !hat is expected to be underta(en at the arm to improve its perormance.
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ATUHAIRE PIA Business Plan Document
Table <9 Pro=e&% In*es%"en% Re7!ire"en%s (&&o!n% )ea,
To%al ?U#s.@
(. EGis%ing (sse%s :and + ,cres Banana lantation #!b$To%al
Cos%
@EEEEEEE @EEEEEEE <0000000
B. Planne, In*es%"en% (sse%s ?4a%er )ar*es% > #%orage #ys%e"@ >rip rying ;heds 5EEEEEE >ried 4ofee ;torehouse FEEEEEE 35
ATUHAIRE PIA Business Plan Document #!b$To%al
10000000
D. Planne, In*es%"en% (sse%s ?Far" Pro,!&%ion In+!%s@ 4lonal Robusta seedlings DEEEEE ;mall 2arm Tools and 70uipment +AEEEE 4ofee 2arm
.0 .1
A0000000
#4OT (N(6#I# (ND I'P6E'ENT(TION P6(N #4OT (nalysis
In%ernal #%reng%s9 In%ernal 4ea:nesses9 >evotion to the cofee arming >o not have some o the business. machinery/e0uipment. Cell (no!n in the community and :ac( o irrigation and !ater storage reputation or 0uality. e0uipment. 4ommitment to 0uality and success. 6f-arm jobs ta(e precedence over 6f-arm income is helpul or scaling arm. Meed to generate high income rom up o the arm enterprise. :and area and capacity !ith good a medium-si#ed area to be soils. *nancially viable. The use o high-input technology. Meed income stability but produce ,ttend trainings and !or(shops or prices 8uctuate. Time and labour are an issue at management and production. ,bility to extend the gro!ing season pea( time. Transportation and delivery to and control disease. Better insight into consumer consumer mar(ets have been an
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ATUHAIRE PIA Business Plan Document preerences o the inormal ,rican issue o time and money. 4apacity is limited due to capital sector. 2arm has been in existence or 0uite e0uipment purchase and start-up some time and has gained costs. Me! gro!ers entering the mar(et. cumulative experience over the :imited commercial ban( credit or years in gainul mixed arming agricultural projects in $ganda. enterprise. Iigh interest rates on loans or 2arm has s(illed employees and a agriculture in $ganda. !ide mar(et base. Gembership o a cofee ramers collective group helps in bul(ing cofee primary processing o the cofee and negotiation o better prices or its small-holder member armers. EG%ernal O++or%!ni%ies9 EG%ernal Trea%s9 2avourable and conducive political :ocal 2arms are 4ompetitors. ;trong competitors li(e Bra#il and economic social and environmental ietnam nay glut the mar(et at macro actors or agricultural certain times to depress prices. production in $ganda. >isposable income o cofee :ocation o the arm in !estern processors and exporters and !hat $ganda and the existence o an they are !illing to pay or primary excellent all-!eather road net!or( processed Robusta cofee. puts it in a strong position to exploit Transportation and distribution the neighbouring regional costs. agricultural mar(ets. ,dditional supplies rom ne! cofee < located near to!ns e.g. periarmers may lead to over-supply urban concentrates on cash crops. Target products on the inormal and alling o prices. Rising costs o inputs. sector. 7xploit opportunities to supply strong cofee export mar(et.
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ATUHAIRE PIA Business Plan Document cofee produce among secondary cofee processors and exporters. ;trong regulation by the $4>,.
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I"+le"en%a%ion #%ra%egy
The 6verall 2arm ;trategy9 6verall 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill produce high 0uality Robusat cofee crop that !ill it !ill consistently be able to mar(et through (B()IN2I B(RUN2I B3O'4(NI (B( 2RE(TER BU#)ENI . 's. PI( (TU)(IRE !ill (eep !ith industry trends and gro! the ne!est clonal Robusta cofee crop or the identi*ed mar(et segments. Ier arm !ill also expand its Robusta cofee crop production to extend the mar(et season through the application o drip irrigation technology. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" is committed to the Robusta cofee arming business and 0uality products. >elivery schedules must be !ell planned using the available vehicles and cost o uel. 's. PI( (TU)(IRE !ill also do much o the mar(eting. 38
ATUHAIRE PIA Business Plan Document roduction9 To implement this Business lan 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill ollo! a A-year production plan !hich details production and mar(eting details or each season.
4ofee-roduction ;upport 7nterprises 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" shall not rely solely on cofee or its income. This is because uncertainties li(e lo! yield and lo! prices can afect its income unexpectedly. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" shall thereore intercrop its cofee arm !ith other crops li(e bananas beans groundnuts and ruit trees such as mangos jac(ruit passion ruit and avocado to provide ood security and additional income. 's. PI( (TU)(IRE !ill also ac0uire an additional piece o land out o cumulative business savings to plant crops li(e mai#e soya beans cassava and s!eet potato or ood and cash. 's. PI( (TU)(IRE also engages in non-arm alternative enterprises such as the door-to-door supply o :" li0ue*ed petroleum gas !ith her brother 'r. ROBIN# 'UTUN2IRE in Kampala and surrounding metropolitan areas that supplements and supports amily income and business gro!th.
Ganagement9 Ganagement decisions !ill be made by 's. PI( (TU)(IRE. ;he !ill bear both primary responsibility or managing the mar(eting o the arm1s Robusta cofee crop to (B()IN2I B(RUN2I B3O'4(NI (B( 2RE(TER BU#)ENI !hile also ocusing on the high-input agricultural production aspects including the use o agricultural mechani#ation irrigation systems and ertili#er and pesticide application. Iuman Resources9 rimary labour !ill be provided by permanently hired arm hands. The arm has access to neighborhood youth that !e can recruit to help on a seasonal basis. The arm may need to hire part-time labour as the agri-business expands. 2inance/,ccounting9 39
ATUHAIRE PIA Business Plan Document rojected cash 8o! and income statements have been completed. Ce !ill meet !ith our ban( and establish a separate arm account and line o credit or input purchases. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill ac0uire and employ appropriate accounting sot!are or (eeping the mixed arm1s boo(s o accounts.
10.0
)U'(N RE#OURCE > '(N(2E'ENT P6(N
10.1 Pro=e&% Pro"o%er 's. PI( (TU)(IRE the ounder and main project promoter o 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" *rst became interested in cofee arming the time she !as gro!ing up during her childhood through to her early adulthood. ;he later gained a better perspective and inormed insight about agri-business and the pecuniary bene*ts o agricultural entrepreneurship during her ormal education process ) such that by the time she had completed her ormal education there !as no other career development path that appealed to her imagination o success prosperity and sel-ul*llment better than the earnest pursuit o a ull-scale arming occupation. 's. PI( (TU)(IRE has an instinctive disposition to!ards cofee arming and a deep-rooted love or nature domestic animals and plants to the extent that nothing can ever divorce or separate her rom dedicating her time energies and !hatever resources she can muster to ma(e the most 40
ATUHAIRE PIA Business Plan Document out o crop and livestoc( husbandry practice.
's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" staf !ill be supervised and directed by 's. PI( (TU)(IRE hersel !or(ing on ull time basis at the arm. ;he !ill spend the bul( o her time engaging in all the routine aspects o Robusta cofee arm management net!or(ing !ith ello! armers under the (B()IN2I B(RUN2I B3O'4(NI (B( 2RE(TER BU#)ENI cofee armers collective group and also engaging in group advocacy to strengthen the production and bargaining po!er o the group or sustained cofee production inputs supply payment o better mar(et prices and adding more value to their cofee crop through ac0uisition o better primary and secondary cofee processing technologies. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" plans to hire one ull-time arm manager and our + semi-s(illed labourers !ho !ill be permanently stationed at the arm at the Kibingo Village arm site. The 2arm Ganager and the our arm hands !ill be primarily responsible or all aspects o cofee arm management including cofee seedling planting and disease control and harvest and post-harvest operations.
ermanent staf re0uired or 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" is given in Table belo!. Table 9 Per"anen% #%aH Re7!ire"en% Des&ri+%ion N!"b 'on%ly er #alary/Person ?U#s.@ 41
To%al (nn!al Cos% ?U#s.@
ATUHAIRE PIA Business Plan Document 2arm Ganager = ermanent 2arm + Iands To%als
@EEEEEE AEEEEE
@+EEEEEE @+EEEEEE <000000
10. O*erall Far" 'anage"en%
The arm management unction !ill be the direct responsibility o the arm1s "eneral Ganager. 4ore unctions include responsibility or the *nancial and physical perormance o the arm that involves implementation o the short and long term business plans. The "eneral Ganager also drives the mixed arm enterprise and !or(s !ith the other departmental managers to ensure success. 2arm management also optimi#es the perormance o the arm as a unit in accordance !ith company policy.
11.0 FIN(NCI(6 (N(6#I# ?;U(NTIT(TIVE@ Table 9 (nn!al Clonal Rob!s%a CoHee Pro,!&%ion an, Re*en!e Pro=e&%ions Cro+
(rea ?(&res@
Robusta 4ofee
+.EE To%al
iel, ?:g/(&re@
No. o- Cro+s/r
=HEE
@
<.00
To%al (nn!al
6ess9 Pos%$ )ar*es% ?@
'ar:e% Pri&e
T Re
iel, ?:g@
6oss
?U2M/:g@
?
=++EE
=5HE
@+EE
5@ 5
42
ATUHAIRE PIA Business Plan Document
Table A9 Clonal Rob!s%a &oHee -ar" en%er+rise b!,ge% ?< (&res@ In U#s In+!% Cos%s
Ra%e/(&re
;eedlings 4lonal
+AE ;eedlings V AEE $;I/each @ x $;I FEEE/Ioe @ x $;I AEEE/anga @ x $;I HEEE/;a! @ x $;I =EEEE/;ecateur @ x $;I EEEE/Cheel Barro!
Tools Tools Tools Tools Tools
Ioes angas runing ;a!s ;ecateurs Cheel barro!
43
1s% )ar*es% DEEEEE
AEEE =EEEE +EEE HEEEE =@EEEE
5n, )ar*es%
ATUHAIRE PIA Business Plan Document Tools ;lasher Tools ;pades Gulch Gulch Ierbicide #!b$To%al 6abo!r Cos%s loughing 2irst loughing ;econd Iole digging lanting Gulching Gulching Ceeding Ceeding runing runing Ierbicide application ;oil conservation ;oil conservation Iarvesting Iarvesting ;upervision ;upervision #!b$To%al Pos%$)ar*es% Cos%s Bags Bags rocessing rocessing
@ x $;I EEE/;lasher @ x $;I HEEE/;pade 5 x $;I 5AEEE/$nit = x $;I 5AEEE/$nit @ x $;I =AEEE/:itre
@E days V @AEE $;I/day @E days V @AEE $;I/day +A days V =EEE $;I/day =E days V =EEE $;I/day AE days V =EEE $;I/day @A days V =EEE $;I/day =A days V =AEE $;I/day 5 days V =AEE $;I/day @E days V =EEE $;I/day A days V =EEE $;I/day + days V =AEE $;I/day @E days V =EEE $;I/day A days V =EEE $;I/day @E days V =AEE $;I/day @A days V =AEE $;I/day @E days V 5EEE $;I/day A days V 5EEE $;I/day
+HEEE +EEE +@EEEE E =@EEEE 15000
=+EEEE =@EEEE 50000
@EEEEE @EEEEE =HEEEE +EEEE @EEEEE EEEE DEEEE =HEEE HEEEE @EEEE @+EEE
@+EEE HEEEE
@EEEE =@EEEE =AEEEE @+EEEE EEEE 55000
<000
==+ bags $;I/bag ==+ bags $;I/bag ==+ bags $;I/bag ==+ bags $;I/bag
V =AEE
=F=EEE
V =AEE V 5EEE
=F=EEE 5+@EEE
V 5EEE
#!b$To%al TOT(6 CO#T#
5+@EEE 10A000 <05000
10000 1A000
Table 9 $ear Pro=e&%e, Ne% In&o"e #%a%e"en% ?In U#s@ (NNU(6 #(6E# REVENUE#
ear 1
ear 5
ear
ear <
ear
E =5=FEE EE 11A0 000
5@H5@EE E =5H@A5A EE 1A10 00
5++F5E E =+A== FA 1A AA
5=DF@H E =A@+@++ H+ 151 A<
Robusta 4ofee ;ales :" "as >istribution
E A+5EEE E <00 00
44
ATUHAIRE PIA Business Plan Document (NNU(6 PRODUCTION CO#T# Variable Cos%s
;eedlings 4ofee 2arm small tools ? e0uipment 6ther istribution 6pex To%al Variable Cos%s
DEEEEE
E
E
E
E
++@EEE
E
E
E
E
@HHEEE AHEEEE =F5HEEE @A+@EEE 5AAEEE E <51<00 00
5E@+EE +@EEEE =H@+DEE @D=EE H=EDEEE E 0< 00
5=FA@E ++=EEE =D==+A @HE@AAA HA=++AE E 051A 50
5555D +5EAE @E==DA@ @D+@H5 HD+E=F@ A 15 0
5AEE +H@E5 @==@AAE 5EHDH=F D5HF=H= = 10< <
@@=EE
@@=EE
@@=EE
@@=EE
@@=EE
E 5EEEEEE E 05510 0 <151 00
E 5=AEEEE E 1A510 0
5+@=F=E 55EFAEE ==+EEEE A11 0 10 0
5AD@FD 5+F@HFA ==+EEEE 55AAA 1 100 AA
5FF@+5A 5+A=D ==+EEEE 10 < 10<1 00
5EEEEE
5EEEEE
E 0000 0 AA0 0 1.
E 0000 0 1 00 5.1
5EEEEE =EEEEEE E 1000 00 A5< A0 <.
@+EEEEE =EEEEEE E 15<000 00 1 .
=@EEEEE =EEEEEE E 115000 00 05 .<
FiGe, Cos%s
4rop 70uipment Gaintenance AJ 4rop
:oan
45
ATUHAIRE PIA Business Plan Document 15.0 ENVIRON'ENT '(N(2E'ENT (ND 'ITI2(TION
C6I'(TE
C)(N2E
15.1 Pre*en%ion o- 4a%er Poll!%ion
To prevent pollution o local area !ater sources 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill implement the ollo!ing environment management measures9 •
•
Cash the cofee in a container a!ay rom the !ater source and dispose o the !aste !ater careully so it doesn1t run bac( into the !ater source. $se chemical sprays a!ay rom !ater sources not to !ash sprayers or chemical containers in any o the shared !ater resources !ithin the locality. 15.5 4as%e 'anage"en%
Caste management measures !ill include9 •
•
;eparation o organic and inorganic !aste and using it to ma(e compost rom the organic !aste to improve your soil. uncturing all chemical containers to prevent re-use and selling !hatever plastic and metal available ater use. Keeping the rest in a pit a!ay rom the main house. 15. (*oi,ing %e Use o- Banne, (gro$Ce"i&als
's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill strictly avoid the usage o banned chemicals !hich have been proven to be dangerous or humans animals birds and the environment in general.
Iere is a table o chemicals !hich are banned. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" shall not use any o these. The table also contains alternatives that should be used.
46
ATUHAIRE PIA Business Plan Document
Table 9 Banne, Ce"i&als No. Pro,!&% (&%i*e Use, %o (l%erna%i*e &on%rol Na"e Ingre,ien% &on%rol = 2uradan 4arbouran O Banana O >ursban po!der !eevils !hite grubs root mealy bugs O 4rop rotation& soil O Mematodes sterilisation solar heating o nursery beds O Meem-based products
@
5
7ndosulan
ara0uat
7ndosulan
ara0uat
O ,nimals ? birds poisoning 4ofee berry borer
O >o not poison animals
O 4rop hygiene9 Iarvest and bury all remaining cherries ater *nal harvest
,caricide
O Biotic spot-on& Gilbitra#& pye-grease
Ierbicide
O ;lashing or uprooting
O "lyphosate-based products +
,ctellic ;uper ,mbush
ermethrin
"rain storage O ,sh or Meem extracts O 4lean stores W proper insects drying 2ield insects O 4ypermethrin or chlorpyrios based products
MB9 26R TI6;7 46MT,4T TI7 ;T,M>,R>; B6>N 7.". $TL 47RT<2<7> 26R , 2$:: :<;T 62 B,MM7> 4I7G<4,:; 15.< Energy Conser*a%ion an, 4a%er )ar*es%ing
7nergy and !ater are precious resources and need to be used !ith care. O lant multi-purpose trees or shade and uel supply. 4ollect run-of !ater in trenches or ponds or soil moisture retention. 47
ATUHAIRE PIA Business Plan Document O $se energy saving stoves. $se solar energy !here possible. 7xplore the possibility o biogas production rom livestoc( manure and other sources. 15. Dis+osal o- (nn!al Cro+ Resi,!es
,nnual ood crops are oten gro!n alongside the cofee. ,ter harvest o the ood crops clearing the land may be a challenge. O ,void burning the crop residues in the *eld as the *re may spread to the cofee plantation and cause a loss o nutrients and living organisms. L 4rop residues shall be used or mulching composting or or livestoc( eed. 15. (,a+%a%ion %o Cli"a%e Cange
There are several agronomic practices that 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" should be a!are o that help to minimi#e the efect o climate change. These include9 O lanting shade trees in cofee gardens O Gulching O
48
ATUHAIRE PIA Business Plan Document
Table 109 Re&o""en,e, #a,e Trees Englis #&ien%i& Co""on na"es9 na"e9 na"e9
;il( oa(
"revillea
"revillea
Gar(hamiaX
Gra(hamia lutea
Msambya :usola 6mushambya
$mbrella treeX Bar( cloth *g Matal *g
Gaesopsis eminii 2icus spp.
Gusi#i
4ordia
4ordia aricana
;il( treeX
,lbi#ia chinensis
Gutuba Gu(o(o!e Gu(unyu 6mutooma Gu(ebu 4hi(ichi(iri Gujungangoma :usubyu
4a% ,oes %e %ree bring besi,es sa,e9 2ire!ood timber mulch apiculture 2ire!ood timber mulch apiculture medicines 2ire!ood timber
Timber odder bar( cloth medicines
2ire!ood timber mulch apiculture Timber odder rich mulch soil ertility
XThese 5 trees are (no!n to be hosts to Blac( T!ig Borer so their use should be careully managed. 7ncourage armers to consult their extension !or(ers or urther advice.
49
ATUHAIRE PIA Business Plan Document
1.0 #OCI(6 RE#PON#IBI6IT 1.1
#a-e Use o- (gro$Ce"i&als
,gro-chemicals may be dangerous i not properly stored and used. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill thereore implement the ollo!ing measures to guarantee saety in agro-chemicals usage and handling9 O ,l!ays !ear ull protective gear cap mas(s overalls outside gumboots goggles gloves boots !hen handling or spraying agrochemicals. O Mot to spray near other people livestoc( or !ater sources. O Mot to spray !hen it is very !indy. Mever to spray against the direction o the !ind. O Ga(e sure !e !arn other people beore and ater spraying. 1.5 #a-e #%orage o- (gro$Ce"i&als
4hemicals shall be (ept in a loc(ed place out o reach o children and a!ay rom ood and stored crops. Chere possible (eep them in a separate store. Mot to store chemicals under the bed. ,lternative sae storage is a loc(ed tin trun( or loc(ed !ooden box. 1. 2oo, Trea%"en% o- 4or:ers
,ll !or(ers are important or the 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" and shall be treated !ith respect. O , air rate or the job shall be agreed and paid !hen the !or( is completed or as agreed. O ,ll payments shall be recorded. O Reasonable !or(ing conditions such as access to clean drin(ing !ater toilets and protective gear should be provided. 1.< 2oo, )ygiene an, )eal% 50
ATUHAIRE PIA Business Plan Document "ood hygiene is important or the health o 's. PI( (TU)(IRE and her amily. O Keep the compound clean. O Iave a clean and unctional pit latrine/toilet. O ;leep under a treated mos0uito net. O Iave a sae !ater source. O Cash hands regularly.
1<.0 PROJECT BENEFIT# ?;U(6IT(TIVE@
The major outputs/bene*ts expected to 8o! out o upgrading/moderni#ing 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" include9 i0
Linka"e to markets and infrastructure. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill be able to receive good mar(et prices because o producing and delivering a high-0uality cofee and other crops o!ing to the use o improved high-input highoutput arming technologies. "ood agricultural mar(ets !ill guarantee higher prices project sustainability and enhancement o household income or the amily o 's. PI( (TU)(IRE.
ii0
Esta!lishment of qualit$ standards. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill be able to access agricultural training that !ill enhance its capacity to adhere to the re0uired 0uality standards or $ganda1s cofee crop such that the arm can then successul exploit the national regional and international mar(ets that demand such cofee crop 0uality standard pre-re0uisites as a criterion or successul mar(et penetration.
iii0
,apacit$ !uildin" =Increased farm crop and li&estock output>. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill efectively build its o!n productive capacity in such a !ay that it !ill then be able to address the constraints to production processing and mar(eting o its agricultural produce including Robusta cofee. i*. Technolo"$ de&elopment and acquisition. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill in partnering !ith the existing agricultural extension services in !estern $ganda !ill identiy and obtain modern/improved technology that is necessary or improved arm production output and e'ciency in terms o both 0uality and 0uantity ) and in the process earn higher incomes that !ill signi*cantly raise the livelihood o the project promoter. &0
Less dependence on rain+fed a"riculture and the associated &a"aries of climate chan"e. 51
ATUHAIRE PIA Business Plan Document By installing and using !ater harvesting and storage technology on the arm 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" !ill efectively be able to insulate itsel against the increasingly erratic and unreliable rain-ed agriculture that ma(es it di'cult to accurately plan arm agricultural activities and may sometimes afect arm productivity leading to losses.
1.0 PROJECT #U#T(IN(BI6IT
There are several actors that !ill conduce to 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" in having a *rm and secure basis or sustaining its activities and these are brie8y mentioned belo!9 •
•
•
•
rudent use o the available land resource or pro*table and sustainable commercial arming& ,ccess to a gro!ing and vibrant mar(et or agricultural products in $ganda especially the Kampala Bushenyi and Gbarara urban mar(ets that !ill ensure commercial pro*tability o 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" crop enterprises& The strong sta(e energy commitment and entrepreneurial enthusiasm o the project promoter 's. PI( (TU)(IRE in the success and sustainability o the project& "eneration o strong internal revenues and their and re-investment to sustain operational costs and gro! the scale and scope o its arming activities boost arm gro!th.
52
ATUHAIRE PIA Business Plan Document
1.0 KE #UCCE## F(CTOR# 1.1 2eneral 2!i,elines • •
•
•
•
• •
•
•
Iigh level 0uality control. ,nother important aspect is the 0uality chec( at diferent stages o the crop production and sales chain. This is very important because there is a need to chec( and ensure that the enterprise1s composite crop product distributors do not supply poor 0uality to compromise the standards and 0uality o our products.
The commercial viability o the project depends upon the regular and consistent supply o good 0uality clonal Robusta cofee seeds and other high0uality cofee arming inputs. The other important aspect is the need or strong lin(ages !ith the local mar(ets. 1.5
2!i,elines -or #!&&ess-!l Cro+ C!l%i*a%ion
2ollo!ing principles need to be pursued or the best productivity o vegetables9 roper soil analysis or determining soil nutritional level. •
•
$se o high 0uality 4lonal Robusta cofee seedlings. 53
ATUHAIRE PIA Business Plan Document 2ertile land and its maintenance !ithin the tunnel green house/shade nets during the period o cultivation. •
•
•
•
;election o pro*table cofee production supporting crop enterprises based on best analysis o cost and revenues or a given season. 4ost e'ciency through better management. Timely control o pests diseases and exercise o preventive measures. Gaintenance and control o internal temperature and humidity o the tunnel.
•
Timely irrigation and ertili#ation.
•
Timely training and grading o plantation.
•
•
2ertili#ation should be done at the soil bed preparation stage. The second ertili#ation ater 5 !ee(s1 interval the third ater !ee(s and *nally during the harvesting period. ost-harvest includes protection rom direct sunlight and speedy transport to the mar(et.
54
ATUHAIRE PIA Business Plan Document
1A.0 RI#K (##E##'ENT > CONTIN2ENC P6(N
The ollo!ing table summari#es the important challenges and our mitigation approaches. Table 119 Ris: (ssess"en% an, 'i%iga%ion RI#K 6rganic crop production ails through pests natural causes and or other unoreseen circumstances. Gar(et ris(s caused by price 8uctuations due to lo! demand olitical and economic ris(
2iscal ris(s o oreign exchange and headline in8ation
2orce Gajeure ris(s such as 8oods earth0ua(es lightning/thunder drought and crop and livestoc( disease epidemics
• • • •
•
•
•
•
•
•
•
•
:o! ;ales
•
'ITI2(TIN2 F(CTOR# Thoroughly tested organic methods and systems
7xpert technical assistance available To anticipate losses yield assumptions are conservative 6ngoing research experiments to ensure ne! learning
The high rate o population and the strong and consistent gro!th in global ood and cash crop mar(ets mitigates and sotens this mar(et ris( The political and economic conditions in $ganda are 0uite conducive or business and trade both internally and outside. $ganda enjoys security peace and reedom or citi#ens and property. 7$ and $;, !here goods and services can be exported at competitive prices. This symboli#es the good economic conditions $ganda is having !ith outside countries !hich bene*ts agricultural producers :iberali#ation o the $gandan economy has eliminated the orex availability and stability ris( This is determined by mar(et orces but controlled by government through use o *scal and monitory policies. B is ofering project *nancing loans at =EJ interest rate or agricultural sector. $ganda1s in8ation is no! standing at A to J but (eeps 8uctuating depending on high and lo! yields o production and uel price 8uctuations. :ightning/thunder can be controlled by the terrain and lie o the land !here the crops are to be planted ) meaning that the arm buildings and other inrastructure should be protected against lightning stri(es using lightning arrestors. :ivestoc( to be ensured by pursuing rigorous and regular livestoc( health and disease prevention and control programmes. ,pply constant and consistent crop protection methodologies involving the use o herbicides and <G
ATUHAIRE PIA Business Plan Document • • • •
Iigh operating costs lo! margins >i'culty in attracting suitable staf
• • •
•
6perational problems poor ood 0uality delivery time
Gar(eting problems regulatory barriers and costs >eparture o (ey project employees
• •
•
• • • • •
•
>iversi*ed product mix. roven demand or products. >iversity o mar(ets. 6ptions to reduce expenses i necessary. >iversity o mar(ets increase direct sales and improve margins. ;ource lo!er cost local supplies e.g. animal manure. "ro! committed arm !or(ers rom !ithin the 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" system and expose early to other bene*ts ) trips to conerences site visits. ;een no! as doing cutting edge !or( so !e are in high demand. Thoroughly tested system. Technical assistance available to investigate unoreseen crop ailures. 's. PI( (TU)(IRE3s Rob!s%a &oHee -ar" system reinorces importance o product 0uality assessment and eedbac( given to arm staf three days per !ee(. >iversity o end mar(ets 4erti*ed organic status already achieved 4lasses to teach sae ood handling strategies 4aY is a certi*ed (itchen and their staf provide guidance
56
