Closing the living income gap for smallholder farmers in Busoga region is at the heart of the SAYE project. PHOTO/GEORGE KATONGOLE
A baseline survey commissioned by Heifer International Uganda highlights that while increasing agricultural production in the Busoga region is important, the most effective path to enhancing productivity and profitability lies in value addition. Experts emphasise that value-added activities offer a rapid and impactful approach to unlocking the region's agricultural potential.
Value addition has emerged as a critical strategy for maximising the benefits of agricultural production in the Busoga region. By transforming raw agricultural commodities into higher-value products, farmers can increase their incomes, improve food security, and contribute to local economic development.
A baseline survey conducted by Heifer International Uganda in Busoga has revealed that agricultural activities involving value addition can yield over 70 percent profitability, underscoring the significant potential of this approach.
Value addition includes processing fruits and vegetables, converting grains into food products, producing dairy products and processing livestock. Value-added products always have a longer shelf life and attract higher prices. Value added products are higher-value goods, which can boost agricultural productivity. They are valuable because they enhance market value, increase demand, reduce waste, diversify farmers' income and create jobs. Therefore, value addition provides a comprehensive approach to elevating agricultural profitability.
With post-harvest losses ranging from 20 percent to 30 percent of total agricultural production in Uganda, value addition can become a cornerstone for agricultural production.
Denis Ssemakula, a researcher with Knowledge Wells Agriculture Consult, observes that while increasing production can certainly boost income, the true potential for profit lies in value addition. “When farmers increase production of soybean, they can get about 34.8 percent in profitability yet processing it into oil and cake, they are able to get up to 78 percent in profitability,” Ssemakula says.
Stimulating agribusiness
The Stimulating Agribusiness for Youth Employment (SAYE) project is implemented by Heifer International in partnership with the Mastercard Foundation and consortium partners including ASIGMA, Consortium for Enhancing University Responsiveness to Agribusiness Development (CURAD), the Federation of Small and Medium Enterprises (FSME) and Financial Sector Deepening Uganda (FSDU).
Whereas Heifer International leads the project by mobilising youth and businesses, CURAD provides incubation, coaching, and mentorship to young agribusiness entrepreneurs.
FSME offers business development and market access support. FSDU enhances access to finance by strengthening financial services institutions. ASIGMA manages a fund to provide financial support to young agribusiness entrepreneurs through SACCOs and agrihubs. In line with the Mastercard Foundation's Young Africa Works strategy, SAYE leverages private sector-led and value chain development approaches to strengthen ecosystems and promote community-led development. SAYE prioritises addressing market barriers to help youth secure fulfilling careers.
The SAYE project operates across all 11 districts of the Busoga sub-region, including Jinja, Mayuge, Iganga, Kamuli, Kaliro, Namutumba, Bugweri, Luuka, Buyende, Namayingo and Bugiri.
SAYE is designed to reach 250,000 disadvantaged youth aged 16-35 in Busoga, with a particular focus on women (70 percent) and youth with disabilities (3 percent). The project aims to transition 175,000 of these youth into fulfilling agribusiness careers. The project focuses on value chains such as poultry, horticulture, oilseeds, dairy and beef by providing training, support and access to financial services.
SAYE's focus on the Busoga sub-region is rooted in its high poverty rate, which stands at 14 percent. This poverty is largely attributed to subsistence farming, overreliance on low-value crops and limited income-generating opportunities.
Charles Mugowa, lead Monitoring and Evaluation at Mastercard Foundation believes that Busoga's agricultural potential can be a powerful driver for addressing youth unemployment in the region.
"The focus has been on adults and that's why the youths have been left out of agriculture. The Mastercard Foundation believes in systems change. We must address the entire system to spur development," he says encouraging more community involvement for the success of the project.
Closing the living gap
The SAYE Project is dedicated to improving the quality of life for farming households in the Busoga sub-region.
The study reveals a substantial income gap between the current average income of Shs3.6m and the estimated annual requirement of Shs16.8m to meet basic needs for a family of five.
To address this challenge, the SAYE Project will implement a multifaceted approach. One key strategy is specialisation, encouraging households to focus on their primary source of income. By doing so, they can enhance productivity, quality, and market knowledge, ultimately increasing their earnings.
In addition to specialisation, the project will promote diversification. By investing in supplementary business ventures, households can create additional income streams and strengthen their financial resilience.
A fit for Busoga
The findings from the baseline survey as well as value chains and labour market surveys under the Market system analysis show that a higher proportion of female youth households are engaged in crop farming, while male youth households lead in livestock production.
Specifically, 95 percent of all sampled households engaged in crop production, while 75 percent kept livestock. This suggests that female youth households may have a stronger preference for crop farming, while male youth households might be more inclined towards livestock production.
The market surveys analysis targeted youths (16-35 years) from the Busoga sub-region, project technical teams/staff, district officials, representatives of organisations supporting the respective value chains, local traders/middlemen, producers, processors, leaders of farmer organisations, retailers and selected local leaders in the project areas among others. The survey findings also highlight the importance of oilseeds, horticulture, dairy, beef and poultry in the Busoga region.
Soybeans and groundnuts are the primary oilseed crops, with Busoga producing approximately 12,429MT of groundnuts (9.3 percent of national production) and 8,030MT of soybeans (6.3 percent of national production) in 2019. In the horticultural sector, tomatoes and cabbages are the most grown vegetables, with annual production estimates ranging from 2,000MT to 7,000MT for tomatoes and 1,000MT to 4,000MT for cabbages.
The Busoga region plays a crucial role in the country's dairy sector, contributing approximately 21 percent of total milk production. Despite facing challenges such as low productivity, smallholder farmers dominate, owning about 90 percent of the dairy cattle.
In terms of poultry, 63 percent of the sampled households kept poultry, with 88 percent keeping local chicken. The Busoga region, identified as a hub for poultry farming, demonstrates high participation rates, with over 78 percent of households keeping at least one chicken.
Incubating growth
SAYE employs two primary pathways to stimulate job creation: Agri-hubs and Micro, Small, and Medium Enterprises (MSME) promotion. Agri-hubs provide essential services like input supply, machinery hire, storage, and financial services. MSME promotion focuses on skills development, market access, finance, and a supportive business environment.
According to John Ssenyonga, the Director of Programs at Heifer International Uganda, SAYE is private sector-led to guarantee input and output markets and be able to scale production.
"Our goal is to catalyse positive change in the Busoga region through agriculture. We strive to not only enhance production efficiency but also to elevate livelihoods across the entire value chain," he says.
Crops
Maize and cassava are other vital crops in the Busoga region, with approximately 1.8 million farmers cultivating maize and 41 percent of sampled households growing cassava. However, average yields for both crops are lower than the national average, indicating room for improvement in production practices.
