Skip to main content

GOOD BUSINESS SENSE WILL HELP OUR AGRICULTURE


The recent drought has at once alerted us to our deficiencies in our agriculture production and reawakened a drive to revitalise the sector.

How is it that a country with half the arable land in the region has people suffering starvation? How is that our crops dried up in the fields when a fifth of our land mass is under water? And on a macro level how is it that the 70 percent of our people who rely on the land directly for a living, account for 30 percent of our economic output or GDP?

Given our natural endowments in land, weather and manpower it is obvious that we are performing well below our potential. Reversing this trend of affairs should be the concern of everybody in the country.

A lot of the debate has revolved around increasing production, value addition and market access locally and internationally. And rightly so.

Taking one example the Uganda Coffee Development Authority says that the average yield per hectare is half a ton of coffee. But meanwhile within our own borders there are farms that produce more than two tons a hectare by employing improved farming methods, the judicious use of the fertiliser and irrigation.

According to a recent World Economic Forum study done on the continent irrigation improves farm productivity by 90 percent, fertiliser use by 61 percent and mobile based information services improve farmer incomes by as much as 30 percent.

But what brings all this together would be extension services which are shown to raise productivity by as much as 80 percent.

Production is where it begins but similar deficiencies – or worse, show up, up and down the agricultural value chain.

But in all the debate we seem to ignore or pay little attention to is the role of entrepreneurship or the businessman in this process of commercialisation of agriculture.

The entrepreneur manipulates the factors of production – land, capital and labour in order to achieve a return be it profit, or these days, to create a social good in what is called social entrepreneurship.

Part of the reason we are in the midst of such abundance but remain poor is because our entrepreneurship skills are lacking, not up to the challenge of exploiting our natural bounty.

How prepared are we to take advantage of the agricultural opportunities around us?

There is a market locally, regionally, even internationally for whatever we produce from groundnuts to eggs to ginger to goats, name it. Because for as long as the human race exists and continues to function the way it does, food will always be in demand.

Money can be made wherever there is a will and a market but what often happens is that the person who has the deal is not up to it.

This is the key challenge I see. That we do not have the entrepreneurial capacity to aggregate our resources to not only jump start production but to take advantage of the vast market in food all around us.

I have been a business man for all of my adult life and the better part of my childhood and I can attest to the saying that luck is when opportunity meets preparation.

At PSFU our members benefit from a host of business development services that can put anybody in a good position to take advantage of the opportunities in the agricultural sector.

It cannot be emphasised enough but it is one thing to grow plants or rear animals but another to take them to market and show a return on a sustainable basis.

Our agribusinesses – which is how we should think about it rather than just farmers, need to understand how to do market research, how to keep books, how to source funding, how to cooperate with other farmers, suppliers and clients .

All these can be learnt by trial and error but why not hasten the process and get good advice.
This is important because to make agriculture a sustainable enterprise not only for individuals but for the whole country we require more than planting and harvesting or herding animals, we need good business sense to underpin the process.

(March 2017)

Comments

Popular posts from this blog

CONGRATULATIONS ON YOUR GRADUATION, ITS NOW TIME TO WORK….

Thousands of students will be graduating from their respective universities in coming days and months. Makerere, our country’s oldest university will kick off its ceremonies on January 15th and the other universities will follow. The graduates have already had a taste of the real life, having finished their studies mid last year and tried to get employed. Many know by now that the world can be harsh and unforgiving. I hope many are tightening their belts in readiness for the struggle ahead. Some may have decided to kick the tin down the road by continuing with school. And others may have given up altogether. My prayer is that there are more of the first and less of the last kind. In talking to young people, I find that what is needed is a reorientation of their minds – a mindset change. Let me share with you certain facts to help manage their expectations of the world and how they can fulfil their potential in our context. First of all, the world owes you ...

UMEME A RECOGNISED SUCCESS BUT …

  Recently the World Bank did a survey of the power utilities on the continent. Of the 39 utilities surveyed only two, in Uganda – Umeme and in Seychelles, were able to cover their operating costs and capital expenditures – maintenance and expansion of the grid. The report went on to point out that only 19 or about half of the surveyed utilities were able to meet their everyday costs like salaries. Essentially most of our power utilities on the continent are technically bankrupt. This has far reaching ramifications for the industry as a whole. When you, the client, pays your bill, Umeme then passes money up the line to pay the transmission and generation companies. If Umeme does not collect the revenues due to it or does not price the power at an appropriate rate, the pain will be felt up and down the sector. The transmission company would not be able to maintain and extend its network and the generation company would not be able to generate efficiently or build ...

OIL IS COMING BUT LET US NOT FORGET OUR GOLD

The country is operating on a time table that first oil will be seen in 2020. There is a lot of frenetic activity around building supporting infrastructure, getting investment approvals, ensuring local participation and any number of other things to ensure readiness the moment the oil starts gushing down the pipeline to the coast. And so we should. I was intrigued the other day to read in the Kenyan press how Kisumu County, just across Lake Victoria from us, has set upon an ambitious project to ensure egg and poultry meat self-sufficiency for the county within the next few years. Under the plan Kisumu County will train 100 farmers every month over the 12 month pilot period. The intended aim is to be able to satisfy the county’s demand for 25,000 broilers and 75,000 eggs daily. Whereas I would prefer that this was private sector driven deal, I like this plan for a number of reasons not least of all that it shows leadership by the county and secondly, it relies o...

OUR HISTORICAL SITES SHOULD NOT GO UNATTENDED TO

Recently I was at Makerere University to attend a wedding ceremony. I hadn’t been on the university’s grounds in a while. I was shocked at how run down Mary Stuart and Lumumba Halls were. They are in need of serious work. These thoughts were reawakened with the recent launch of the coffee table book “Beyond the Reeds and Bricks” promoted by the tourism ministry, the cross cultural foundation of Uganda and the European Union Delegation. The book which is aimed at the protection of historical sites and buildings in Kampala, Entebbe and Jinja, is a moving collection of pictures of buildings and sites we know, but probably take for granted when we pass them as we go about our business. "Entebe za Mugula in Entebbe, Mackay’s Cave, the post office in Entebbe, the Stanbic Bank Branch in Jinja, Hamu Mukasa’s house in Mengo, the main building at Makerere , the Bahai Temple, Kibuli mosque and many other sites have pride of place among the 60 pictures in this book, which is ...