Uganda to establish US$8.1m fruit processing factory spearheading value addition in agriculture sector

UGANDA – Delight Uganda Limited (DUL), a Ugandan fruit processing company producing juices under the brand name Cheers, has partnered with the government to establish a Shs30 billion (US$8.1m) fruit processing plant in Nwoya district, Northern Uganda.

This is a public-private partnership aimed to increase productivity and competitiveness within the agricultural sector. 

According to reports by Daily Monitor, the project will be funded by the government and it has already secured Ush 16 billion (US$4.3m) from the current financial budget.

The National Agriculture Advisory Services (NAADS) has contributed Ush 6 billion (US$1.6m) while the Uganda Development Cooperation offered Ush.10 billion (US$2.7m). The balance will be provided in the subsequent budgets. 

“This will increase incomes through increasing production and productivity for both households and the economy and promote value addition of agricultural products,” said Minister of Agriculture Animal Industry and Fisheries, Mr Vincent Ssempijja during the signing of the partnership.  

The establishment of the plant will promote the nuclear farming model- which will in turn boost proper planning and marketing of agricultural produce and promotion of the agricultural value chain.

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Ms Julian Adyeri Omalla, the chief executive officer of DUL, said her dream of setting up a factory which started in 1996 requires a lot of cooperation from the private and public sectors.

“Something that started as a family project has expanded and is benefiting the community of Northern Uganda which now boasts of employment for the informal sector,” Ms Adyeri said.

She added that the collaboration brings on board experts to train small holder farmers on how to add value to their products.

“This will increase incomes through increasing production and productivity for both households and the economy and promote value addition of agricultural products.”

Minister of Agriculture Animal Industry and Fisheries – Mr Vincent Ssempijja

This announcement comes exactly a year after Uganda Industrial Research Institute (UIRI) a parastatal company wholly owned by the government of Uganda commissioned the Nyakihanga Fruit Processing Facility worth UGX 1.4bn (US$380,000).

The factory having a capacity to process 1,000 liters of pineapple juice per hour, from 700 pineapple fruits, is supported by 3,222 pineapple farmers in the region producing 80,000 pineapples every day during peak season.

Meanwhile, Bukasiga Fishery Cooperative Society in Tanzania has established a Tsh 220 million (US$94,800) solar-drying and ice-processing facilities.

The two factories are a boon to the micro and small-scale fishermen and traders of Gana Island in Mwanza Region, who deal with sardines and Nile perch, indicates The Citizen.

Establishment of the facilities got a financial boost of Tsh.200 million (US$86,230) from Tanzania Agricultural Development Bank (TADB) while Tsh. 20 million (US$8,623) was obtained from the United Nations Development Programme – Tanzania (UNDP Tanzania).

The presence of the factories mean that fishermen and traders will cut the cost and time associated with icing and drying services for their fish and will ensure quality fish is sold in the markets which will in turn boost the fishers and traders’ earnings.

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