Uganda Value-Added Maize Alliance Project Quarterly Progress Report January – March 2015

This three-year initiative aims to open a new market outlet for smallholder-grown maize via value addition to maize grain, the future production of corn syrup for beverage processing, and the use of maize byproducts in products for human consumption. The demand for quality-grade maize at higher prices will incentivize smallholder farmers to adopt better production and Post-Harvest Handling (PHH) practices, resulting in increased saleable yields. AgroWays, the main private sector partner in the Alliance, was the first licensed grain warehouse in Uganda to operate a warehouse receipt system (WRS). It deals in maize grain in two ways. Under the WRS, AgroWays cleans, dries, and stores maize grain for depositors for a fee. It also purchases maize, cleans and dries it, and then sells the grain to buyers or processes it further to maize grits, which it sells to Nile Breweries Limited (NBL). The byproduct from the process of making maize grits is a mixture of maize bran and maize germ that is currently sold to animal feed processors. To achieve its objectives, the Alliance is organized around three main components. Component A focuses on expanding access for smallholders to a new higher value market segment by facilitating AgroWays' investment in new maize processing and storage facilities, establishing three new Village Aggregation Centers (VACs) in the Busoga region, and improving maize management information systems (MIS). Component B aims to increase saleable value and volume of smallholder-produced maize by training in maize agronomy and PHH practices, promoting mechanized maize shelling to increase efficiency and reduce losses, and strengthening AgroWays' capacity to deliver or facilitate embedded services to its farmers. Component C seeks to develop maize germ and maize bran products for human consumption to improve nutritional outcomes by supporting Maganjo Grain Millers' development and promotion of these nutritious products. During the current reporting period, AgroWays made significant investments in their Jinja facilities, resulting in large contributions to UVAMA's leverage. AgroWays continued to carry out civil works at its grain bulking center (GBC) in Jinja in preparation for the installation of the de-germer line and four new silos with a total capacity of 10,400 MT. The de-germer equipment and two silos were shipped in December 2014 and are already on site in containers awaiting installation; they will have a total capacity of 5,200 MT. The remaining two silos of the same capacity are expected to arrive in Uganda at the end of May 2015. AgroWays' additional investment in equipment and civil works over the quarter has raised the total project leverage to US$1,458,994. In the current quarter, UVAMA completed construction of two Village Aggregation Centers (VACs) in the Busoga region – one in Nawaikona village in the Namutumba District and the other in Natwana village in the Kaliro District. The construction contractor is currently in the process of clearing the VACs' compounds and levelling the parking areas before handing them over to the Namutumba Farmers Development Association (NAFADA) and Kaliro Small Farmers Agri-business Association (KASFAA).