Uganda grain farmers lose over sh19b over closed bars

AGRIBUSINESS

Farmers engaged in the growing and supply of grain for the breweries industry are counting losses amounting to sh19b since government ordered the closure of bars and night clubs in March this year in a campaign to avert the spread of  COVID -19.

Sosimu Twesiga, the chairperson Farm Uganda Farmers Group, said at least 45,000 grain farmers who supply, sorghum, maize, cassava and barley that are used as raw material in the brewing industry are affected.

"We have witnessed a sharp decline in revenue amounting to sh19b since the lockdown came into effect in March this year and the figure is steadily rising," Twesiga said.

He revealed this during a press conference held at Kati Kati restaurant on Wednesday, aimed at highlighting the impact of the continued close of bars on farmers.

To save the situation, Tweisga has called for the re-opening of bars and night clubs.
"We are requesting government to consider re-opening of bars and clubs across the country with strict observance of Standard operating procedures," Tweisga said.

The brewing industry is one of the biggest proponents of commercial farming, in Uganda with two of the biggest breweries; Nile Breweries and Uganda Breweries spending at least sh95b annually.

This money is spent on obtaining locally grown barley, sorghum, maize and cassava from farmers and agriculture value chains across the country.

Twesiga notes that between 2011 and 2020 the number of households supplying raw materials to breweries increased from 10,000 to approximately 45,000 with majority of the farmers graduating from small scale farmers to medium scale.

"Many jobs have been created for the youth, but unfortunately this progress is severely impacted by the covid19 pandemic and the continued closure of bars which has strained our livelihoods," Twesiga said.

He said many farmers are stuck with produce, which they can't supply while others are selling it at giveaway price.

"We are stuck with produce. At my farm I produced about 80,000 tons of corn starch fetching about sh960m but I have managed to sell only 50,000 tons at sh60m," Tweisiga said.
Although the farmers are planting the grain, they have reduced on the acreage.

Farmers are scrambling to find other ways to sell their crops. Already, some farmers and producers have closed or altered operations.
Stella Katirima, a supplier of grain revealed that the brewing value chain is a key contributor to strengthening agricultural production and productivity as the country recovers from the shocks presented by the pandemic.

She revealed the increase in consumer demand for beer would lead to increased demand for raw materials from the farmers and in turn result in higher employment opportunities and revenues.
"Many farmers are staring at their fields and wondering what to do now that there is no market," Katirima said.

Eriya Semaganyi, of Kawanda Grain Millers explained that since the bars were closed, they are unable to supply and to make matters worse, the Rwanda market was also closed.
"We have no alternative that is why we are requesting government to open bars so we can enjoy our business too," Semaganyi says.

Several farmers on the value chains of Barley, Sorghum, Corn starch (maize) and Tapioca have for long been guaranteed of market from breweries.

However, this direct pipeline that took decades to build has been cut off by the coronavirus, leaving small farmers and suppliers with produce they can't sell.
The loss in sales could increase with much higher costs in jobs and other businesses that make up the value chain.