CATALIST-Uganda Grant Proposal

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CATALIST-Uganda Grant Proposal Powered By Docstoc
					CATALIST-UGANDA
       Increasing Incomes by Sustainably
Commercializing Smallholder Agriculture through
 Improved Productivity and Market Development

          PROJECT PROPOSAL



                        P.O. Box 2040
              Muscle Shoals, Alabama 35662 USA
                        www.ifdc.org
                  Draft Proposal Submitted:
                         April 24, 2012
Table of Contents
Preface .........................................................................................................................................................3
Acronyms ....................................................................................................................................................4
Executive Summary ....................................................................................................................................5
1. Problem Statement, Background and Project Rationale.........................................................................9
            1.1      Challenges in Uganda ...................................................................................................... 9
            1.2      Priority Commodities ..................................................................................................... 10
            1.3      National Policy Context ................................................................................................. 22
            1.4      Dutch Food Security Policy ........................................................................................... 23
            1.5      The CATALIST Experience .......................................................................................... 24
            1.6      CATALIST-Uganda: An Innovative New Project ......................................................... 25
2. CATALIST-Uganda Technical Approach ...........................................................................................26
            2.1      Program Goals and Objectives ....................................................................................... 26
            2.2      Program Approach ......................................................................................................... 26
            2.3      Technical Approach ....................................................................................................... 28
            2.4      Sustainability Strategy and Exit ..................................................................................... 39
            2.5      Project Logframe & Results Framework ........................................................................ 40
            2.6      Technical Activities/Outputs by Commodity ................................................................. 45
3. Performance Monitoring, Evaluation and Learning .............................................................................48
            3.1      CATALIST-Uganda Monitoring and Evaluation System ............................................... 48
            3.2      Communication.............................................................................................................. 49
            3.3      Reporting ....................................................................................................................... 49
            3.4      Cross-Cutting Themes ................................................................................................... 50
            3.5      Risk Analysis ................................................................................................................. 50
4. Project Staffing and Organization ........................................................................................................54
            4.1      IFDC Core Team ........................................................................................................... 54
            4.2      Management Structure ................................................................................................... 54
5. Indicative Budget ..................................................................................................................................57
Annexes .....................................................................................................................................................58
            Annex 1. Draft Inception Phase Work Plan ............................................................................ 58
            Annex 2. Draft Performance Assessment Matrix .................................................................... 60




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List of Figures and Tables
Overview of Major Commodities in Uganda ............................................................................................11
Map of Uganda              .....................................................................................................................................12
CASE Conceptual Framework ..................................................................................................................26
CASE Approach and Value Chain Development......................................................................................28
Objectives and Outputs of CATALIST-Uganda .......................................................................................29
Agribusiness Coaches ...............................................................................................................................34
Characteristics of Low-Level Clusters and Apex Clusters .......................................................................36
Potential Partnership Examples .................................................................................................................36
Examples of Public Works ........................................................................................................................38
Project Logframe .....................................................................................................................................40
Technical Outputs and Activities by Commodity .....................................................................................45
CATALIST-Uganda Risk Analysis...........................................................................................................51
CATALIST-Uganda Organizational Chart ...............................................................................................56
CATALIST-Uganda Indicative Budget ....................................................................................................57
CATALIST-Uganda Draft Inception Phase Work Plan ............................................................................58
Draft Performance Assessment Matrix .....................................................................................................60




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Preface
The International Fertilizer Development Center (IFDC) is a public international organization
addressing critical issues such as food security, the alleviation of global hunger and poverty,
environmental protection and the promotion of economic development and self-sufficiency.
IFDC’s mission is “To increase agricultural productivity in a sustainable manner through the
development and transfer of effective and environmentally sound plant nutrient technology and
agricultural marketing expertise.” IFDC’s Competitive Agricultural Systems and Enterprises (CASE)
approach focuses on the development of sustainable and private sector-based competitive agricultural
production systems. A key element to productivity improvements and farmer income is the
Commercialized Sustainable Farming Systems (CSFS) approach, which considers not only the primary
commodity but as well other crops rotated in the farming system to optimize profitability and soil
health. Together, CASE and CSFS ensure that tradable surpluses are both commercially and
environmentally sustainable, and that the resulting production systems are embedded in a network of
business relationships that add value not only directly to the farmer, but to the wider rural and national
economy as well.
The CATALIST-Uganda proposal is presented to the Embassy of the Kingdom of the Netherlands
(EKN) in Uganda based on a project similar to IFDC’s CATALIST and CATALIST-2 Projects in
Rwanda, Burundi and the DRC also funded by EKN in Kigali. The CATALIST-Uganda proposal is
tailor-made to the Ugandan context, incorporating important lessons learned and significant new
innovations.
The CATALIST (Catalyzed Accelerated Agricultural Intensification for Social and Environmental
Stability) Project (2007-2011) initially focused strongly on the introduction of ISFM (Integrated Soil
Fertility Management--combining improved germplasm, mineral fertilizers, organic matter management
strategies, and local management adaptations), which led to two to four-fold increases in productivity,
reduction in production costs, and consequent dramatic increases in marketable surpluses and farm
incomes. Following its mid-term evaluation in 2009, CATALIST intensified its efforts in value chain
development and accelerated organizing agribusiness clusters—groups of value chain operators
implementing a business idea around a specific commodity in one or more value chains. CATALIST-2
(2012-2106) will be a continuation and expansion of CATALIST that will further apply and adapt this
approach in the Great Lakes Region of Africa and will emphasize ‘roll-out and scale up’ – increasing
the number of agribusiness clusters and the relations among them. Using the market as the key driver for
agricultural intensification, CATALIST-2 will use a public-private partnership (PPP) model, and will
partner – whenever possible – with national and international (including Dutch) agro-enterprises in areas
such as agro-input supply, professional service provision and output marketing.
Based on consultations with the EKN in Uganda, Rwanda and Burundi, stakeholders, beneficiaries and
IFDC technical staff, CATALIST-Uganda builds on the lessons learned from CATALIST Project. From
the production side, the project will develop and disseminate highly productive, sustainable farming
systems comprised of several commodities, anchored around three to four primary commodity value
chains. For the CATALIST-Uganda Project, the commodity market is the starting point. Using the ‘pull’
of the market, cluster development and market linkages will be encouraged earlier than in the original
CATALIST project, facilitated by lessons learned from the CATALIST experience and sharing of
regional staff and best practices between the two projects. While cluster development is opportunity-
driven, starting with addressing farm-level constraints such as access to agro-inputs and credit,
CATALIST-Uganda will facilitate the formation of separate apex-level clusters around each of the value
chains allowing cluster actors to tap into national, regional and international market opportunities and
agro-enterprises.




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Acronyms
3G ........................ Three Generations Potato Project (USAID funded)
ABC ..................... Agribusiness Cluster
aBi Trust .............. Agribusiness Initiative Trust
AMPU ................. Autonomous Mobile Processing Unit
BSS ...................... Business Support Service
CASE ................... Competitive Agricultural Systems and Enterprises
CATALIST.......... Catalyzed Accelerated Agricultural Intensification for Social and Environmental
                            Stability
CATALIST-2 ...... Towards Viable Clusters in Agribusiness for Improved Farmers’ Income and Food
                            Security in the Great Lakes Region
C:AVA ................ Cassava Added Value Project
CDI ................. .... Centre for Development Innovation (Wageningen University)
CIP ....................... International Potato Centre
CPP ...................... Crop Protection Products
CSFS.................... Commercialized sustainable farming systems
DADTCO ............ Dutch Agricultural Development Trading Company
DGIS.................... Directorate-General for International Cooperation (The Netherlands)
DSIP .................... Development Strategy and Investment Plan of the Ministry of Agriculture, Animal
                            Industry, and Fisheries
DRC ..................... Democratic Republic of Congo
EAC ..................... East African Community
EADN .................. Extending Agro-Dealer Networks Project
EAGC .................. East African Grain Council
EKN ..................... Embassy of the Kingdom of the Netherlands
FIPS-Africa ......... Farm Input Promotions Africa
GoU ..................... Government of Uganda
HQCF .................. High quality cassava flour
HZPC ................... HZPC Holland B.V., Seed Potato Company
IFDC .................... International Fertilizer Development Center
IGA ...................... Income generating activities
ISFM.................... Integrated Soil Fertility Management
JICA .................... Japanese International Cooperation Agency
MAAIF ................ Ministry of Agriculture, Animal Industry, and Fisheries
MFI ...................... Micro-finance Institution
NAADS ............... National Agricultural Advisory Services
NGO .................... Non-Governmental Organization
OSCA .................. One-Stop Center Associations
PHH ..................... Post-harvest handling
PMA .................... Plan for Modernization of Agriculture
PPP ...................... Public-Private Partnership
SME ..................... Small and Medium-sized Enterprise
ToT ...................... Training of Trainers
UBOS .................. Ugandan Bureau of Statistics
UNADA .............. Uganda National Agro-input Dealers Association
UNBS .................. Uganda National Bureau of Standards
USAID ................. U.S. Agency for International Development
VCR ..................... Value-to-cost ratios
WRS .................... Warehouse receipt system


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Executive Summary
Goal and Overall Objective
The goal of CATALIST-Uganda is to sustainably commercialize smallholder agriculture through
improved productivity and market development, resulting in marketable surpluses that raise
farm incomes in Uganda, and increase food security for the wider East Africa and Great Lakes
Region. Starting with the ‘pull’ of the market by working with commodities for which there is strong
demand, CATALIST-Uganda will employ a systems approach to develop integrated cropping systems
around priority commodities—Irish potato, cassava and rice—combined with an accelerated cluster
development approach appropriate for Uganda. In addition to agricultural intensification, attention will
be paid to input market development (both seeds and fertilizer), output marketing, linkages to Dutch and
other agribusinesses and improvement of the policy environment.
By the end of CATALIST-Uganda in May 2016, 100,000 smallholder farmers will have doubled
yields, achieved a 50 percent increase in incomes, and produced an annual marketable surplus of
200,000 metric tons of cereal equivalents. This will contribute to the increased rural incomes and trade
in Uganda and increased food security in the region.

Approach
CATALIST-Uganda will be built on a market driven approach, focusing on the development of
competitive value chains and farming systems that will lead to considerable marketable surpluses,
contributing to increased incomes and trade in Uganda and greater food security in the region.
Starting with the market ‘pull’ of agribusiness development in Uganda, cluster development will focus
on agribusiness and entrepreneurship in Uganda at all levels – from local to national. This will allow
farmer beneficiaries to seize on Ugandan, regional and international opportunities by targeting markets
and trade to neighboring countries, and developing supply chains to national and multinational
(including Dutch) agro-processors. To reduce production and transaction costs in the selected value
chains, CATALIST-Uganda will introduce both technical and institutional innovations to increase
profitability. IFDC will focus on building and strengthening of capacities of partner organizations
such as farmer organizations, agro-input dealers, agribusinesses, and business service providers to
ensure institutional sustainability at project exit in four years.
Based on the experience and technical achievements of CATALIST in Rwanda, Burundi and DRC,
IFDC will make a significant contribution to a stronger and more productive agricultural sector in
Uganda that can contribute significantly to increased rural incomes in Uganda as well as to reduced food
scarcity in East Africa and the Great Lakes Region. Market development forms the foundation of
CATALIST-Uganda, as it is the market “pull” on which cluster formation and IFDC’s Competitive
Agricultural Systems and Enterprises (CASE) approach is based. CATALIST-Uganda will accelerate
cluster development, taking advantage of the existing modest surplus production and nascent rural
business linkages while simultaneously introducing commercial, environmentally sustainable farming
systems that increase yields and decrease production costs per unit product. Market development and
productivity enhancement form complementary halves of the virtuous cycle to smallholder agriculture
commercialization. CATALIST-Uganda seeks to resolve a long-standing issue impeding agricultural
intensification in Uganda—low fertilizer use—by working with agro-input suppliers, extension services,
and finance institutions to enable farmers to access and profitably apply mineral nutrient inputs in a
farming systems context.
To ensure long-term farmer access to markets that is responsive to dynamic conditions, CATALIST-
Uganda will focus on formation of vibrant agribusiness clusters. These will be formed early on in the
project, as soon as participating farmers produce tradable and commercial surpluses - at a cost of

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production and in sufficient quantities to be competitive. The project and its beneficiaries will be
attentive to early business opportunities such as linkages with agro-inputs, bulking, storage and credit
which form the basis of cluster development at farmer-group level. As these clusters develop in their
transactions and in their business and market sophistication, separate commodity-specific apex clusters
will be formed to take advantage of higher-level business opportunities, such as linkage with
large/Dutch agro-processors. These apex clusters will access better prices in input and output markets
as well as improve the policy and business environment.
Through CATALIST-Uganda, project-affiliated farmers will be able to increase investments in their
own well-being as well as in their agricultural enterprises. The project’s focus on improved post-harvest
handling, storage and market-linkage through its €2 million Matching Investment Fund and linkage to
credit guarantees will increase the economic resilience of these farmers. Through value chain
development, agribusinesses will be developed and strengthened, ensuring a strong pull for the
marketable surpluses produced. Farmers, armed with the necessary links to input suppliers, agribusiness,
business service providers (BSS) and market information, will take advantage of new and expanding
markets. A lively and competitive agribusiness environment will be a strong motivator for farmers to
produce a surplus, completing the virtuous cycle. Two additional project tools – an €800,000
Innovation Grant Fund and a €1million public works component - will support project interventions.
The innovation fund is designed to spur new options for input and output market development, while
public works will generate rural employment through the development of infrastructure that enhances
productivity and market access, such as terracing, irrigation systems, warehouse/storage rehabilitation
and the development of feeder roads.
While CATALIST-Uganda will focus on a limited number primary commodities (cassava, rice and Irish
potatoes), it will employ a systems approach to anchor these commodities in integrated cropping
systems in which the primary commodity is intercropped, rotated, or relayed into other crops and where
possible, integrated with livestock. An option to develop another commodity chain is written into the
proposal, to be selected during the inception phase. A systems approach assures that soil fertility and
profitability are enhanced throughout a cropping sequence. The balanced mix of commodities and
markets reduces the risks of reliance on a narrow commodity base.
The project will target those farmers that possess or have access to a certain amount of land and
productive assets and therefore can accept a certain level of risk. The project will focus on farmers that
have access to markets and market infrastructure such as roads. The project may also work with medium
to large scale farmers in the project’s target areas to serve as nucleus farmers. While the most vulnerable
farmers (those with little or no land holdings or assets) will not directly be targeted by the project’s
agricultural activities, they will benefit from the project’s public works component, which can assist in
asset accumulation. Particular focus will be paid on gender, as the project will promote equitable access
to resources and economic returns, and shared household decision-making.
The project will begin with a 6-month inception phase, during which the project office, staff and
systems are set up. During this time, market and value chain analyses will inform project
implementation and the development of the first annual work plan in which selection of commodities,
project beneficiaries, and partners and will be finalized. Baseline surveys, establishment of the Matching
Investment and Innovation Grant Funds, and selection of the first public works will be initiated during
the inception phase.

Risk and Risk Mitigation
IFDC considers the risk of political insecurity (particularly during elections) to be the largest risk factor.
This risk can be within Uganda itself or in neighboring countries. Kenya is the major corridor for fuel
and fertilizers, the supply of which, if disrupted, could negatively impact implementation. Unrest in
South Sudan, DRC, Burundi, or Rwanda could badly affect regional markets. Additional risks come
from plant disease pandemics and climatic uncertainty (both droughts and floods) and the resultant


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secondary social, economic and political effects. A further risk is political interference in agricultural
markets through subsidies, price controls, free distribution of inputs, market unfriendly policies, rent-
seeking and favoritism. While structural solutions to these problems are largely beyond the scope of the
project and IFDC, CATALIST-Uganda will monitor the situation if these risks unfold, and has put in
place mitigation measures in Section 3.5, “Risk Analysis”.
Apart from contextual risks, the largest implementation risk recognized by the project is the dynamic
resulting from successful increases in agricultural productivity and income. With thousands of farmers
producing marketable surpluses, a new social dynamic is introduced to societies. As seen in the
CATALIST project in Rwanda, Burundi and DRC, this may result in land consolidation (successful
farmers buying land from less successful farmers, many of whom become ‘laborers’), farmers using
access to credit to buy and store other farmers’ harvest to further increase their profits, and farmers
producing large surpluses that drive commodity prices down, to the detriment of inefficient producers.
With the roll-out of CATALIST-Uganda, similar events are anticipated. Additional implementation
risks and mitigation measures are also reviewed in section 3.7.

Public-Private Partnerships and Dutch Private Sector
The project will maximize scarce development resources by leveraging private cooperation through
Public-Private Partnerships (PPP) with national and (Dutch) multinational agro-enterprises, by
collaborating with Dutch Knowledge Centers and other agribusiness projects, and by focusing on
effectiveness and efficiency, thus increasing impact and return on investment. Several Dutch
multinationals have expressed their interest or signed Letters of Intent to collaborate with IFDC,
including DADTCO, Unilever, Friesland Campina, TNT, Rabobank, East-West Seeds, RijkZwaan, and
DSM. IFDC will also collaborate with Agri-ProFocus’ network in Uganda which includes Agriterra,
Heifer Nederland, and SNV among others.

Policy Context
The CATALIST-Uganda approach is in line with the newly formulated Dutch Development Policy
(“Focus Brief”) and the Dutch Multiannual Strategic Plan for Uganda (“Food and Justice”). Dutch
policy seeks food security through increased agricultural productivity as an integral part of sustainable
value chains, building on both local knowledge and on the wealth of Dutch experience in agriculture and
agribusiness development.
The role of the project to enhance national income and trade is based on the fact that it will increase
agricultural productivity and food availability, increase resource use efficiency, result in job creation,
and increase exchanges of knowledge and skills. CATALIST-Uganda will also contribute to regional
food security in the East African region, as Uganda is generally food secure and overall is a net exporter
of agricultural products to its neighbors, particularly South Sudan and Kenya.
Likewise, CATALIST-Uganda is aligned with the Government of Uganda’s (GoU) Development
Strategy and Investment Plan (DISP) and Plan for Modernization of Agriculture (PMA) that seek to
improve household incomes and food security through increased productivity and market access,
together with an improved enabling environment.

Performance Monitoring, Evaluation and Learning
IFDC will implement a performance monitoring, evaluation and learning system that is harmonized
across similar programs (CATALIST-2) and which feeds into the new IFDC monitoring and evaluation
(M&E) system. A project log frame and draft Performance Assessment Matrix are included in this
proposal and will be finalized during the inception phase following the value chain assessments and
baseline survey. Project-own M&E, including a real-time cloud-based M&E system and annual surveys,



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will be supplemented through independently contracted case studies, as well as mid-term and impact
studies to be undertaken through the donor.

Partnership and Management
The project will operate from a central office in Kampala, and three field offices, one in each target
region. The project will operate with a lean staffing structure, utilizing regional experts from the
CATALIST-2 project, and other IFDC Africa-based staff. A key element of this lean structure is
partnering with organized farmer groups and cooperatives where possible to speed up implementation,
and with existing NGOs and business services providers already operating in the value chains in the
targets regions who will play a key role in the implementation of activities. Institutional partners and
business service providers will be selected and trained by the project staff and other key stakeholders
during the inception phase. Leveraged funds, market access and embedded services such as extension
advice are also anticipated from the lead firms participating in the project’s value chains, such as
DATCO, Syngenta and breweries.

Budget and Timeline
The total budget for the proposed four-year program is €15 million, which is requested as a grant from
DGIS. Project activities are reasoned according to a logical framework and related activities. Budget
estimates are based on past experience. Individual budgets for cropping-specific activities will be
informed by the work plan developed during the inception phase. Flexibility is however built in because
of the innovative nature of the project and the fact that detailed budgeting will be conducted at the end
of the inception phase.
The project is anticipated to start on May 1st, 2012 and end on April 30th, 2016.




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1. Problem Statement, Background and Project
Rationale
1.1         Challenges in Uganda

Overview
Agriculture is the mainstay of the Ugandan economy, providing 14% of Gross Domestic Product, 85%
of total export earnings, 73% of total employment, and the bulk of the raw materials used by the mainly
agricultural-based industrial sector1. Yet, despite the importance of agriculture in the Ugandan economy,
overall yields have remained unchanged over the past decade and are far below their potential when
compared to the gains made in Asia from the Green Revolution.
Despite more than a decade of fundamental political, economic, and social change, in which the a
country has achieved macroeconomic stability, a liberalized economy and more recently peace in the
north, during which GDP growth averaged 7%, 65% of Uganda’s population continues to live below
$2/day. Over 90% of the poor reside in rural areas, and while there are some large-scale commercial
farmers, smallholder producers using low input/low output subsistence farming dominate Uganda’s
agriculture sector, producing an estimated 70% of marketed produce. Compounding this situation is
Uganda’s population growth rate of 3.6%—one of the highest in the world2.
In the context of increasing population pressure and the resulting subdivision of farms, agricultural
growth requires a substantial increase in productivity per land unit. Yet, prevailing subsistence
agriculture is marked by a diversity of crops to address farmers’ risk management strategies and dietary
needs. Yields per land unit are low, costs per unit product are high, farmer revenues are low, and
nutrient inputs are low, resulting in soil degradation. Additionally, Uganda’s input and output markets
are marked by high transactions risks and costs and poor integration, limiting farmer access. However,
the majority of agricultural households in Uganda lack the means and the capacities to invest in their
farms, as they lack skills in commercialized production technologies, the resources and access to acquire
inputs (fertilizers and quality seeds), and links to markets to sell surplus production. As a result, farmers
find themselves in a ‘poverty trap’ – unable to acquire enough additional resources to break out of the
cycle of poverty, and relying on nutrient mining to produce crops with ever-declining yields.
Because of its agro-ecological conditions (including good soils and favorable climate) and its central
position in a food-insecure region, Uganda has the potential to become an important food exporting
country. In order to achieve this, agricultural intensification has to go hand-in-hand with agricultural
sector development and market integration at all levels. Farmers have to become part of solid
agribusiness networks through which they can sell surplus crops and invest in their farms. Through this
they will permanently exit the poverty trap, and replace it with a virtuous cycle in which productivity
gains sold into remunerative markets allow farmers to reinvest in their farms for sustained increases in
income. The resulting improvements in local economic dynamics are also necessary to create non-farm
employment for the growing non- or semi-agricultural population.

Agriculture Input and Output Markets
Data from the Uganda Bureau of Statistics (UBOS) show that in 2006 only 1% of Ugandan farmers used
inorganic fertilizers, 3% used pesticides, 6% used improved seeds and 7% used manure. While the
Abuja Declaration on Fertilizer for an African Green Revolution recognizes that increased fertilizer use


1
    Data 2010, World Bank.
2
    Ibid.

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is essential to increasing yields and reversing soil fertility decline in the face of rising population and set
a goal of 50 kg/ha fertilizer by 2015, Uganda currently uses an average of 3.4kg/ha—one of the lowest
rates in Africa3. Due to a generally favorable climate and good inherent soil fertility, Ugandan farmers
have grown accustomed to farming without fertilizers or improved seeds. As a result, yields of almost
all major commodities are well below their potential, and failure to replace nutrients removed by crops
has led to nutrient mining and soil degradation. Farmers are often unaware of the quantity and type of
fertilizer to apply to their various crops, and often farm in mixed cropping systems, which makes crop-
specific fertilization difficult. With fertilizer costs high and farmer demand low, agro-input dealers often
do not stock fertilizers, particularly in remote areas. Low usage is compounded by poor access.
Uganda’s agro-input dealer network is nascent and is still expanding its reach into rural areas while
addressing the twin problems of counterfeits and appropriate (smaller) packaging for smallholder
farmers. The situation is compounded in Uganda due to its land-locked status. Most inputs are trucked
overland from Kenya via the Mombasa Port, increasing costs.
The marketing system for the large majority of crops (with the exception of export crops such as high-
value horticulture and coffee) is rudimentary. Poor post-harvest handling leads to losses of about 30%.
Limited storage and marketing infrastructure results in unstable prices, forcing farmers to sell cheaply.
Cereal grain markets are beginning to see some formalization through the introduction of warehouse
receipts systems linked by tradable receipts to the Uganda Commodity Exchange, and through increased
coordination of the private sector through the East African Grain Council (EAGC).
Large-scale agro-processing in Uganda is dominated by cash crops such tea, coffee, sugarcane, cotton,
and tobacco. Most industries in Uganda depend heavily on agriculture for raw material inputs. Uganda
is promoting value-added exports, such as roasted coffee, palm oil processing, and cotton yarn.
Agricultural processing is starting to develop in the processing and packaging of coffee, edible oils,
tropical fruits, fruit juices, and nontraditional crops such as vanilla. Beyond this however, the processing
sector is dominated by local small-scale processing which suffers from poor packaging, hygiene,
marketing, distribution and limited capital.
As a net agricultural exporter, Uganda has vibrant cross-border sales of produce, primarily to South
Sudan through Oraba and Nimule, to Kenya through Busia, to the DRC through Mpondwe and to a
lesser extent to Tanzania and Rwanda. While accurate data is hard to come by, analysis of informal
trade by UBOS indicates that Uganda continues to be a net exporter to her neighbors in agricultural
commodities with the leading destination for agricultural exports being South Sudan, Kenya and DRC4.



1.2       Priority Commodities
The CATALIST-Uganda Project aims to dramatically increase productivity and efficiently link farmers
to both input and output markets by improving value chain linkages. While focusing on individual
commodities, the project will take a systems approach to improving productivity, which is optimized
when rotation crops (particularly legumes) and livestock are synergized with a primary commodity. The
aim is to maximize whole-farm income and sustaining/improving soil health (soil nutrients and soil
organic matter).
CATALIST-Uganda will initially focus on 3 commodities: Irish potatoes (Solanum tuberosum), lowland
rice (Oryza sativa), and cassava (Manihot esculenta). All three crops have established output markets,



3
 2008 average, World Bank Data.
4
 “The Informal Cross Border Trade Survey Report 2009 and 2010”, Bank of Uganda and Uganda Bureau of Statistics,
June 2011.




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both within Uganda and regionally, such that considerable increases in production is unlikely to result in
price depression. Yields of potatoes and rice are particularly low relative to their potential in the
environments in which they are grown in Uganda, such that large increases in productivity and
decreases in production costs are obtainable with inputs and good management. Cassava, while
traditionally cultivated as a food security crop, has identified large commercial markets both inside and
outside of Uganda. With better production and post-harvest processing techniques, cassava can be
immensely profitable. These commodities also complement the current portfolio of donor (including
Dutch) investments in agriculture. Maize, beans and coffee were not selected due to existing DGIS and
USAID funding, including aBi Trust. Other cereal grains, while profitable, have less potential for yield
increases and improvements in profitability than the selected commodities. Legumes (groundnut,
soybean, beans, and pigeon pea) are considered in this project as complementary crops in rotations with
primary commodities, which have significant potential for contribution to revenue. Additional priority
commodities will be considered during the project inception phase, with the aim of selecting one added
commodity. Opportunities and likely project activities relating to these commodities in the Uganda
context are further discussed below.

Overview of Major Commodities in Uganda

                                          Yield                         Households producing
       Crop                Area (ha)               Production (Mt)
                                         (Mt/ha)                         #               %
       Maize                 890,000      1.54        1,373,000      2,351,000          60%
       Beans, dry            930,000      0.49        460,000        2,017,000          52%
       Cassava               415,000     12.73        5,282,000      1,677,000          43%
       Banana (Food)         1,700,000    5.62        9,550,000      1,375,000          35%
       Sweet potatoes        620,000      4.58        2,838,000      1,360,000          35%
       Groundnuts, with
                             235,000      0.73        172,000         970,000           25%
       shell
       Sorghum               330,000      1.52        500,000         843,000           22%
       Finger Millet         470,000      1.81        850,000         717,000           18%
       Coffee
                             270,000      0.60        162,000         500,000           13%
       (Arabica+Robusta)
       Sunflower             190,000      1.21        230,000         500,000           13%
       Sesame seed           280,000      0.61        170,000         401,000           10%
       Bananas (beer
                             143,000      4.20        600,000         289,000            7%
       and sweet)
       Potatoes              102,000      6.81        695,000         184,000            5%
       Rice                  140,000      1.56        218,111         125,000            3%
       Soybeans              155,000      1.13        175,000         105,000            3%
       Pigeon peas            92,000      1.01         93,000         76,000             2%
Data sources: Production data, FAOSTAT 2010; household data, calculated from UBOS data, 2008-2009 by
IFDC.




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Map of Uganda




Potatoes

Introduction
Irish potatoes in Uganda are grown in highland regions. Most production is concentrated in southwest
and western Uganda, particularly in Kabale and Kisoro districts, though some potatoes are also
produced in eastern Uganda (Kapchorwa district). Due to its short cropping cycle and high yield
potential, potatoes farmed under good agronomic practices can be a smallholder cash crop, well suited
to these densely populated areas where land is in short supply and farm size is small (commonly <0.5
ha). In some areas, potatoes can be cropped throughout the year under rainfed conditions. Some farmers
manage up to 3 crops annually, though two crops is more common. Properly grown, potatoes can be
extremely profitable. Net returns to good agricultural practices promoted in the CATALIST project
were $1600, $2200, and $2200/ha in Rwanda, Burundi, and DRC, respectively, per cropping season.
Amongst field crops, potatoes offer the best opportunity for income improvement in highland areas.




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Current Production System & Commercialized Production Potential
In 2010, over 100,000 ha of potatoes were cropped in Uganda, benefiting over 1 million Ugandan
household members. While average yields of 20 metric tons (Mt) per hectare (ha) are realistic with
current varieties, average yields in Uganda are less than 7 Mt/ha (FAO data). Low yields are due
primarily to poor quality seed potato, inadequate soil fertility management practices, and diseases,
primarily late blight and bacterial wilt.
Potatoes must be rotated to reduce disease incidence. Recommended practice is that farmers grow
potatoes only once every two years on the same field, though this is often exceeded. Because potatoes
are vegetatively propagated, diseases (including viruses) are transmitted in the seed. Poor quality seed
potato can dramatically reduce yields. Research by the International Potato Center (CIP) in Kenya
showed that yields more than doubled using quality seed, compared to farmer saved seed under good
agricultural practices, rising from <10 Mt to >20 Mt/ha.
The very limited supply of quality seed potato is a major constraint throughout Eastern Africa. The
USAID-funded 3G Project (2008-2011), led by CIP, established a profitable model for rapid seed
multiplication in Kenya, Rwanda, and Uganda. The project introduced aeroponics technology in all
three countries, greatly accelerating production of minitubers and basic seed potato at national and
regional scales. This technology permits production of substantial quantities of basic seed potato in only
2 field generations as opposed to 5-7 generations using conventional methods. This reduces both costs
of production and disease build-up.
The aeroponic technology was shown to be not only rapid but lucrative, attracting private investments in
aeroponics facilities. In Uganda, an aeroponics facility was established only at Kachwekano
Agricultural Research and Development Institute (KAZARDI), Kabale, whereas in Kenya, 7 of 9 units
were constructed on a 50:50 cost-sharing basis with private firms. While providing a profitable model
for seed potato multiplication, it is estimated that even the 9 facilities in Kenya cater for only 2% of the
Kenyan seed potato requirement, and that considerable expansion will be required to cater for potential
farmer demand. As Uganda potato production is only slightly less than that of Kenya, the need for
additional seed production via aeroponics is clear.
The 3G Project also addressed other weak links in the seed potato value chain. The project assisted
farmers to construct inexpensive seed and ware potato stores. Twenty-two stores were constructed in
Uganda, with a capacity of some 100 tons of seed potato; together, these are sufficient for 50 ha of seed
potato. Working with the Farm Inputs Promotions Africa (FIPS-Africa), 60 Mt of 3G seed potato were
sold to 10,000 Kenyan farmers in small (5-10 kg) packages to enable them to evaluate yield
improvement on their own farms. Farmers were also trained in positive seed selection and best
production practices.
While the 3G Project made great strides in increasing seed potato availability, it considered itself a
catalyst, in that it established methods of profitably multiplying seed potatoes and making them
available to farmers. The 3G final report noted that achievements of the project “…paled against the
existing bottleneck in the seed potato subsector.” While seed supply has been facilitated by the National
Agricultural Advisory Services (NAADS), which gives seeds to individual farmers and farmer groups,
this is not a sustainable, entrepreneurial model. They are the primary purchaser of seed potato from the
Uganda National Seed Potato Producer’s Association (UNSPPA).
FAO has worked in southwest Uganda since 2007 and will terminate the second phase of their project in
June 2013. Their efforts have also concentrated on increasing seed potato production. They have trained
40 seed potato producers, and plan to graduate another 60 this year. FAO has constructed 4 model seed
potato stores, which are used by farmers and serve as replicable models. On the production side, FAO
has trained in good agronomic practices, though their farmers generally do not use fertilizers. These
activities involve some 1,400 farmers. FAO is considering a 50% grant support for farmer associations
wishing to purchase trucks for transport and bulking purposes. They have linked some farmer


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associations to Kampala markets, but these associations are small (typically 5 farmer groups and
generally less than 200 members).
While both projects to date have somewhat addressed soil fertility constraints, they have concentrated
on value chain and seed sector development. Little work has been done on increasing yields through
increased nutrient input use (both organic and mineral), which was the primary cause of yield increases
in the CATALIST project, particularly in Rwanda. Additionally, neither project focused on developing
sustainable smallholder access to input and output markets through the development of clusters of
agribusiness actors. Here farmer groups work together with agro-dealers, traders, BSSs and other value
chain actors for the benefit of the entire chain.
In Uganda, increased organic and mineral fertilizers must go hand-in-hand with quality seeds to realize
optimum commercial production. Currently, few farmers use mineral fertilizers on potatoes, and those
that use them apply sub-optimal rates, resulting in nutrient mining and soil degradation. Common crops
in the rotation are sorghum, wheat, climbing beans, cabbage, peas, and sweet potato. Farmers that
fertilize potato rarely fertilize subsequent crops in the rotation, relying on residual nutrients but further
mining soil nutrients. It is vital that rotations be fertilized to build soil fertility, and equally important
that rotational crops are selected that can be marketed. Vegetables are potentially important in this
regard, as they are both marketable and respond well to nutrient inputs. Improved vegetable germplasm,
combined with good agronomic practices, can make vegetables a profitable rotation. Yield statistics
(FAO) indicate that Ugandan potato yields are not increasing, and may be on the decline.
A commercialized, sustainable production strategy, in addition to using improved seeds and fertilizers,
must maintain/improve soil organic matter. In the CATALIST project, farmyard manure was the most
utilized organic input. In Uganda, zero-grazing facilities, where animals are confined and manure is
easily accessible, are not sufficiently widespread to provide substantial quantities of manure. It is likely
that the project will have to rely on organic matter produced on-site from managing crop and weed
residues, or produced very close to the site. One possibility in this regard is using improved hedgerows.
These serve two purposes: slope stabilization, which is crucial to controlling soil and nutrient loss
through erosion, and using hedgerow prunings as a green manure to improve soil organic matter. ICRAF
(the International Agroforestry Center) applied this approach in the 1990s as part of their Highlands
Initiative. Calliandra calothyrsus and Grevillia robusta were amongst the more successful species, and
additionally provide staking material for climbing beans. Calliandra hedgerows are still evident in parts
of Kabale district.
Optimal potato production also requires fertilizers and crop protection products, which must be supplied
through agro-input dealers. Potato farmers are already accustomed to applying crop protection products
to potatoes for disease control, which are generally less expensive than mineral fertilizers. IFDC’s
Extending Agro-Dealer Networks (EADN) project (2008-2011), funded by IFAD, trained agro-dealers
to improve technical advisory services to farmers, particularly on improved seed, fertilizer, and CPP
(crop protection product) use. The project was active in potato-growing areas around Kabale. Agro-
dealers will need to be linked closely to producers and finance institutions in order to assure adequate
input supply.
Mitigation of the negative environmental effects of inorganic fertilizers in potato systems primarily
involves good erosion control. Fertilizers are buried, so potential negative impacts of fertilizers occur
when fertilizers are either leached (affecting nitrogen as nitrate) or eroded with soils (applicable to
nitrogen and phosphorus). To minimize these effects, farmers will be trained to plant potatoes along
contours and to protect slopes from erosion using improved terracing methods. Improved terraces can
also absorb nitrates from sub-soil water flow, which can then be cycled back to fields as organic residue.
Currently, herbicide use in potato systems is low. When used for upland production, glyphosate
herbicides are generally considered environmentally benign. The project will restrict itself to use of
glyphosate herbicides for weed control in potato systems.



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Market Potential
Uganda’s Agriculture Sector Development Strategy and Action Plan (DSIP) projects that demand for
potatoes will increase by some 3.1% annually, and has established a target of increasing yields by 45%
(from 2010 to 2014) to meet rising domestic and regional demand. To meet this objective, the DSIP has
established a target of increasing farmer use of quality seed potato from 1% to 20%. A private potato
factory will soon be constructed in Kisoro with an output of 1 Mt frozen potatoes per hour, operating in
both day and night shifts, to supply domestic and regional markets. The factory can benefit from
varieties targeted to the chips market. Many available potato varieties are high yielding, but are not well
suited to the chips and crisps markets. Recently, NAMPOT and KACHPOT varieties more suitable for
these processed markets have been introduced, but are not as high-yielding as varieties such as Kiningi
and Victoria. The Dutch company HZPC is intending to test 6 potato varieties targeted to these markets
in Uganda, and has approached the project regarding collaboration in multiplying and field testing.
In addition to the growing demand in Ugandan urban areas - for wholesale and retail markets and for the
food industry (potato chips and crisps) - regional trade in potatoes is significant. For example, informal
statistics from the National Bank of Rwanda and the Rwandan Revenue Authority indicate that in 2011,
Uganda exported almost $850,000 of potatoes to Rwanda against formal trade statistics of $150,000.

Current Farmer Organization and Potential Partners
Organization amongst potato farmers is limited. Most farmers are organized at the farmer group level
(20-30 farmers), as this is the basic unit of organization required to receive NAADS support. A few
potato farmer associations, usually composed of 5 or more farmer groups in the same locality, have been
organized under previous potato initiatives with CIP and FAO, but account for a very small proportion
of farmers. In Kisoro district, NAADS is attempting to organize some farmer groups into a district-wide
association, but this is a work in progress, and is not driven by a common commercial agenda. No large-
scale potato cooperatives exist in Uganda.
The National Environment (Mountainous and Hilly Areas Management) Regulations are designed to
protect mountainous and hilly areas, and are particularly applicable to areas where potatoes are grown.
The regulations relate to environmental measures such as intermittent grass strips and cultivated plot
widths to control erosion, and lays out functions of local environment committees, which can establish
and enforce regulations and by-laws for land management at a local level. These localities potentially
involve hundreds of farmers, and could form convenient units for cluster formation, such that farmers in
a given area coordinate activities around intensified production and environmental sustenance. Many of
the regulations are unenforced, in part due to lack of funds to implement them, and most mountainous
and hilly areas do not have grass strips perpendicular to slopes as required or other improved terraces.
Erosion control measures are a high probability public works investment in this proposal.
The Syngenta Foundation has a Memorandum of Understanding with IFDC, and has expressed interest
in developing seed multiplication facilities with private seed multipliers to establish aeroponics
facilities. They are also interested in testing, registering and demonstrating clean seed of new varieties,
including new commercial Dutch varieties from commercial Dutch breeding companies. HZPC Holland
has already expressed interest in testing and multiplying 6 potato varieties best suited for chips,
Uganda’s predominant market. Mugenga Holdings Ltd. is establishing a frozen chips factory in Kisoro,
with a capacity of 1000 kg/hr output, with processing to begin in mid-2012. They have expressed
interest in supporting farmers in obtaining agro-inputs, including quality seeds, fertilizers, and CPPs,
and working with IFDC in institutional development of farmer cooperatives, as well as utilizing IFDC’s
regional contacts to source potatoes externally, should internal production be insufficient or too costly.
NAADS can support the project by assisting in identification of strong farmer groups in high-density
potato growing areas, which can be combined with groups and associations formed under FAO and 3G
activities. These groups will be focal points of initial demonstrations and farmer trainings, and form the
nucleus for cluster development at a level sufficient to attract interest of input suppliers and financial

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institutions. These clusters of some 200 farmers can later be organized into an apex cluster to better
address issues of fertilizer type and volume, bulk accessing of inputs, producing for specific markets in
terms of quality, quantity, packaging, and accessing regional trade opportunities. Demonstration
management, while done by farmer groups, can be facilitated by selected NAADS service providers and
agro-input dealers, who can be specifically trained in commercialized production systems. The
N2Africa Project will likely assist in legumes production strategies, particularly for climbing beans,
which integrate well with potatoes.



Cassava

Introduction
Cassava is grown for both food security and income generation by a large proportion of Uganda
farmers. UBOS data (2008/2009) indicates that over 3 million cassava plots were planted by some 1.67
million farm households, making it one of the most widely distributed crop in Uganda. Plot sizes are
generally smaller than for other crops, averaging 0.24 ha. As a food security crop, it is appreciated for
its ability to grow in poor soils, resist drought, and produce reasonable yields year after year. FAO data
indicates that yields in Uganda have remained at approximately 13 Mt/ha for the past decade, with
harvested area in 2010 at around 415,000 ha for a total production (fresh roots) of 5,300,000 Mt.
Cassava easily tolerates the short dry season in Uganda, but is adversely affected by flooding.
Fresh cassava roots are highly perishable, and must be consumed or processed within 2-3 days of
harvest. For this reason, they are commonly “stored” in the soil, and harvested as required for
consumption. Many farmers sell sun-dried cassava chips to traders, which can be processed into cassava
flour.
While cassava is grown throughout Uganda, production is clustered in the east in Pallisa, Kamuli,
Soroti, Tororo, Bugiri, Kumi, and Iganga districts, and in a contiguous zone in northern and western
Uganda comprising Masindi, Kyenjojo, Kasese, Nebbi, Arua, Nyadri, Apac, Oyam, Yumbe, and Lira
districts.

Current Production System & Commercialized Production Potential
While commonly considered as an intercrop, in reality, 60% of cassava is grown in sole stands (UBOS,
2008/2009 data). It is amongst crops least likely to receive mineral fertilizers, as food security needs are
usually met without inputs on a relatively small parcel. Some local varieties, while lower yielding, are
preferred by farmers because they produce gradually over an extended time period (up to two years).
A commercialized production strategy requires high-yielding varieties, fertilizers to increase yields and
maintain soil productivity, profitable rotations/intercrops, and good agronomic practices, particularly
weeding.
High-yielding varieties resistant to cassava mosaic disease have been released widely; many mature in
9-12 months. As opposed to many local varieties, these varieties tend to mature suddenly, and have a
“harvest window” of only a few months before tubers become fibrous. In the past 5 years, cassava
brown streak disease (CBSD), a viral disease spread primarily through diseased cuttings and whiteflies,
has emerged as a serious threat to cassava production with yield losses of up to 100%. No varietal
resistance to CBSD has been identified, though some varieties are tolerant (slow to develop symptoms).
A recent survey indicated that CBSD incidence is severe in eastern Uganda, between 10% and 40% in
some districts, whereas in northern and western Uganda, disease incidence is commonly less than 10%.
CBSD spread is controlled by using clean planting materials and by removing and burning infected
plants. However, it is often asymptomatic in both roots and leaves in its early stages, and can therefore
be spread in asymptomatic cuttings. Demand for clean cuttings has increased, and prices for cuttings are

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now as high as UGX 50,000 per bag (almost $22), with 15 bags required to plant one ha, more than
double the premium being paid just 2 years ago. Production of clean planting materials is essential, and
given current prices, constitutes a highly profitable value chain. Devising a system to supply clean
planting materials in large quantities and to consistently rogue CBSD-infected plants is crucial to
cassava commercialization, as diseased roots are unfit for consumption, even by animals. A system for
provision of clean cassava cuttings is a project priority.
The yield potential of available improved varieties exceeds 50 tons/ha, and average yields of 35 tons/ha
should be achievable - almost triple current yield levels - with good agronomic practices and fertilizer
use. A 35-ton cassava yield removes substantial nutrients—some 50-60 kg N, 10-15 kg P, and 100-120
kg K, in addition to minor nutrients. In order to achieve high yields and guard against soil nutrient
mining, cassava must be fertilized. Cassava selection in Uganda has always been conducted in the
absence of fertilizers as it has always been viewed as a subsistence crop. Screening of available varieties
for fertilizer response can potentially improve profitability. Research (Fermont 2009 thesis, Wageningen
University) showed attractive value-to-cost ratios (VCRs) to fertilizer application and the importance of
good weeding practices.
Controlling weeds is crucial to increasing cassava yields. Cassava has initial slow growth and requires
several months to form closed vegetative canopy. During the first 3-4 months, weeds will compete for
both water and nutrients if not controlled, severely reducing yields. Up to 6 weedings are necessary,
which is labor-intensive and expensive. One profitable alternative is the use of glyphosate herbicides,
which can reduce subsequent weedings to 2-3. Use of glyphosate combined with minimum tillage can
reduce production costs while protecting the soil (decreased runoff and erosion due to weed residues).
This strategy was employed by ACDI/VOCA with good success in northern districts, resulting in
average cassava yields of 30 tons/ha without fertilizers, and was particularly appreciated by women,
who are largely responsible for weeding.
Soil erosion can be a serious problem in hilly areas due to slow canopy closure. Apart from minimum
tillage, other strategies that can be employed are leguminous or grassy hedgerows, mulching, and
intercropping. A short-season intercrop such as beans or cowpea can be planted between cassava rows,
and up to two intercrops can be harvested before canopy closure. The extra harvest from associated
crops in an intercrop can reduce weed competition, improve income per unit land area, and reduce soil
erosion, and is a strategy that will be strongly considered in this project. Cassava should be integrated
into a crop rotation with other profitable commodities to improve both income, reduce disease
incidence, and reduce risk by having a more diversified cropping mix.
Glyphosate herbicide is generally considered to be environmentally benign when applied in upland
cropping systems. It is not harmful to animals or soil biota when applied in recommended
concentrations, and after application, binds to the soil, which renders it inactive. Nitrogen and
phosphorus fertilizers can become pollutants when lost to soil erosion. Minimum tillage systems are
designed to minimize erosion, and erosion can be minimized in tilled systems by maximizing soil cover
with appropriate short-duration intercrops. Nitrogen leaching is generally not a problem in cassava
systems, where N application rates are low. Inorganic potassium is generally not considered a potential
pollutant.

Market Potential
Several markets exist for cassava products, including fresh cassava, cassava cake for breweries, high
quality cassava flour (HQCF), and animal feed. The HQFC market includes requirements for direct
consumption, biscuits (up to 50% substitution for wheat flour), and bakeries (5-10% substitution for
wheat flour). Estimates from the Africa Innovations Institute (implementing the Cassava Added Value
Project [C:AVA] in Uganda) estimate realized demand for HQCF to be 6,000 Mt per annum, but
potential demand of 12,000 Mt/annum, roughly equivalent to 40,000 Mt fresh cassava. Cassava for
brewing may supply a brewery under construction in Mbarara, which has an estimated demand


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equivalent to approximately 10,000 Mt fresh cassava annually. Estimates of potential cassava demand
for substitution into animal feeds are approximately 150,000, 125,000, and 40,000 Mt annually for
Tanzania, Kenya, and Uganda, respectively (Kelly Wanda, cassava value chain specialist, personal
communication). Farm Concern in Jinja is currently processing cassava for this market. Large quantities
of cassava chips are being exported to South Sudan, Kenya, and Tanzania, but this has yet to be
quantified but expected to be significantly larger than the 92,000MT informal trade to Rwanda in 20115.
Other potential uses for cassava are for starch, glucose, and ethanol production. The South African firm
LEFA has expressed interest in constructing a cassava starch processing facility in Eastern Uganda with
a minimum capacity of 50 Mt/day starch, which would require 200-250 Mt/day of fresh cassava. While
LEFA is still evaluating this possibility, it shows the potential demand of cassava for industrial uses.
This project will concentrate on cassava for brewing and HQCF, since these are already identified
markets, and both can be processed using technologies that are available (HQCF) or will be available as
described below. Meeting these industrial demands is intended to establish production and marketing
models that can then be applied to meeting other demands, such as for animal feed and starch markets.
The main constraint to the HQCF value chain is supplying in consistent quantities of high quality to
meet industrial demand. Cassava chips (dried cassava pieces) are commonly processed from fresh
cassava by farmers themselves. Biotic and non-biotic contaminants are introduced in the drying process,
as solar drying usually takes place on tarpaulins placed on the ground, poorly protected from
contaminants and highly variable in terms of percentage moisture. Drying can be interrupted by seasonal
rains, resulting in various degrees of rotting. These chips are purchased directly from farmers by traders
and milled into cassava flour; as a result, quality is inconsistent. Industries also require consistent
quantities, but supply can be erratic due to uncoordinated harvesting and seasonal rains, which interrupt
drying. The C:AVA project is addressing these constraints in Eastern Uganda by organizing farmer
associations into processing clusters and training them in HQCF processing and quality assurance in
order to meet the quality and quantity requirements of large buyers. Estimated net income per ha is in
the range of $2000 when value is added through processing to HQCF, assuming 15 tons/ha cassava
production and HQCF value of 1500 UGX/kg. Most of this net profit is a result of value addition in
processing. Without the HQCF value-added, the net benefit from fresh cassava sales is considerably
reduced.
Net benefits can be increased by improving cassava productivity through commercialized farming
practices. While several organizations have been interested in developing cassava value chains, there
has been very little emphasis on productivity issues beyond good agronomic practices. Soil fertility
management though mineral and organic inputs and profitable, soil-improving rotations has received
little if any attention. Apart from resulting in lower profits, this approach risks degrading the soil and
undermining the cassava production that supports the commercial enterprise.
Dutch Agricultural Development & Trading Company BV (DADTCO) has developed a potentially
game-changing technology that resolves the most serious constraint to smallholder participation in
cassava commercialization: cassava perishability. The AMPU, or autonomous mobile processing unit, is
contained in two 40-foot containers, and travels to producer collection sites. Producers within a 20-km
radius bring their produce to the AMPU, which converts it to a cake of about 40% moisture content. The
cake has a shelf life of 5-7 months, compared to two days for fresh cassava. It can be used directly for
beer brewing or flash-dried to produce HQCF, which can further be refined to produce cassava starch.
An AMPU can process 5-8 tons of fresh cassava per hour, or reasonably 50 tons per day.
DADTCO intends to use one AMPU in Uganda to supply a brewery in Mbarara owned by Nile
Breweries. Locations to “dock” the AMPU require a borehole and good access to roads, and should be
located such that a large number of cassava growers are within a 20 km radius. Cassava growers must


5
    “CATALIST Regional Market for Agricultural Commodities”, IFDC, February 2012.



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work together to stagger production to ensure constant supply throughout the year. Due to the severity
of CBSD, multiplication of cassava planting materials will most likely have to be coordinated with a
large commercial farm(s).
Market information and links to buyers both inside and outside Uganda are crucial to commercializing
cassava production. The market demand for cassava chips and HQCF needs to be assessed for South
Sudan, Tanzania, and Kenya. Rwanda is currently constructing a large-scale HQCF facility, targeting
the South Sudan market.

Current Farmer Organization and Potential Partners
The C:AVA project in Eastern Uganda has some organized farmer clusters specifically devoted HQCF
production. In theory, it has 12 sites where HQCF is being produced, but this production needs to be
verified. Informants suggest that only one of these sites is commercially viable.
Sasakawa 2000 has farmers organized into 12 clusters, in total comprising over 15,000 farmers, around
One Stop Center Associations (OSCAs), which provide farmers access to inputs, training, and
processing equipment, focused around specific commodities. Eight OSCAs focusing on cassava
processing are located in Eastern Uganda, and could be cluster nuclei for HQCF production.
The N2Africa Project will likely assist in legumes production strategies when such legumes integrate
well into cassava production. Possibilities include bean and cowpea intercropping during early cassava
development, and pigeon pea as a rotation crop.
While no large-scale farmer cooperatives devoted exclusively to cassava production have as yet been
identified, we anticipate that given the level of cassava production in eastern Uganda and the contiguous
zone through western and northern Uganda, sufficient clusters of farmers can be rapidly developed with
NAADS and NGO partners working in those areas to coordinate commercial cassava production. The
location of farmers to work with will be determined in the inception phase, based on the particular
market demand. Clusters need to be created in areas where farmers can easily link to markets. The
contiguous cassava production zone running through districts in the north, central, and west is linked
with good transport routes to Kampala (domestic consumption), South Sudan, and Mbarara (cassava for
beer). Export markets to Kenya and Tanzania are closer to Eastern Uganda. One opportunity in western
Uganda concerns Nakivale refugee camp, which has some 56,000 refugees, located in Insingiro District
(Kabingo subcounty), some 60 km away from Mbarara. The government of Uganda wants to develop
with the refugees an income-generating activity, and has expressed interest in commercialized cassava
production. The area is said to be good for cassava, and some 20,000 ha can be made available. This is
potentially a good location for cassava production to supply the brewery in Mbarara, but this needs to be
explored thoroughly.

Clusters targeted to HQFC can be formed to provide consistent supplies in the range of 15 tons fresh
cassava per day (approximately 3.5 tons of HQFC). Several of these clusters will be required to meet
domestic and regional demands. Clusters based around these units should coordinate with specific
industry and export buyers to link to specific markets. By working together, an apex cluster of HQFC
clusters can better coordinate supply to demands (for example HQCF for industries in Kampala or for
export).

Rice

Introduction
Rice in Uganda is produced under both flooded conditions (hereafter referred to as lowland rice) and
under well-drained conditions (upland rice). Lowland rice comprises 68% of rice production, while
upland rice comprises 32%. Uganda, though currently a net rice importer, has seen domestic production


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increase dramatically from 156,000 Mt/year in 2006 to 218,000 Mt/year in 2010 (FAO data), or >8%
per year. The Uganda National Rice Development Strategy (2009) targets an annual production of
almost 500,000 Mt tons by 2018. This will require 11% annual production increases; The strategy
specifies that added production should come from increased productivity rather than extending
cultivation. Rice matures in 3-6 months, depending on the variety. Thus it is possible to have 2 or even 3
rice crops per year, particularly under irrigation.
Eastern Uganda is the major lowland rice producing area, particularly in Pallisa, Kamuli, Kaliro, Iganga,
Tororo, Butaleja, Bugiri and Kumi districts. Western Uganda also has significant lowland rice
production. Production in the east is approximately 70% lowland and 30% upland. Northern Uganda is
another epicenter of production, primarily in Lira, Gulu, Amuru and Kitgum districts, with production
approximately 75% upland and 25% lowland (MAAIF 2007 District Crop Data). Four large rice
schemes have been developed around catchment areas: Kibimba (Bugiri district), Doho (Butaleja
district), Olweny (Lira district), and Kitgum scheme (500 ha in Kitgum district, Agoro sub-county).
These schemes fell into various states of disrepair during the LRA conflict. The Olweny scheme (750
ha) is currently the least developed but considered to have the greatest potential due to its wide
catchment area. The Dutch Ministry of Foreign Affairs funds ORIO (the Facility for Infrastructure
Development), which could potentially be tapped for rehabilitating collective parts of the Olweny
scheme. The Doho scheme (2000 ha) is currently being rehabilitated. The Kibimba rice scheme, owned
by Tilda Uganda Ltd., produces almost 10% of Uganda’s rice, 20,000 Mt/year, on 1,500 ha. This
scheme is currently increasing the height of their dam to improve water availability, and is developing
with the Government of Uganda some 1000 ha for smallholder rice outgrowers.
While rice production on large schemes is substantial, it pales in comparison to Uganda’s total lowland
rice potential. Some 550,000 ha of land area has been deemed suitable for seasonal rice production,
primarily around Lake Kyoga, with many districts having over 10,000 ha, including Rakai and
Nakasongola districts (central), and Bukede, Kumi, and Soroti districts (eastern Uganda). In total, some
7% of Uganda’s arable land is suitable for lowland rice production, and an even larger proportion
suitable for upland rice.

Current Production System & Commercialized Production Potential
Fertilizer use on rice in Uganda is extremely low. Upland Nerica varieties have yield potentials of 5
tons/ha, whereas lowland varieties have yield potential of up to 8 tons/ha. Local upland varieties average
only 1 ton/ha under minimal inputs, whereas Nerica varieties average 2.5 tons/ha. A recent survey of
lowland rice production in Eastern Uganda found yields ranging from 1.9-3.5 tons/ha. Only 15% of
farmers used any fertilizer, and that the average use was only 20 kg/ha. FAO statistics indicate average
yields of some 1.5 tons/ha (data not segregated according to lowland or upland production). Low yields
are due to poor agronomic practices (late planting and weeding, scatter planting instead of line planting),
low fertilizer use, suboptimal water control (in lowland rice), and use of low-yielding germplasm.
Almost all of Uganda’s increased production is as a result of area expansion and is not due to yield
increase per unit land area, contrary to Uganda’s strategic planning objectives.
The largest yield increases can be realized in lowland rice production, which will be the focus in this
project. Recently, lowland rice production has been affected by the breakdown in resistance to rice
yellow mottle disease of two high-yielding varieties (K-5 and K-98). However, 4 new varieties (LN19,
LN21, LN49, and WITA9) have progressed through evaluation, and may be released as early as May
2012; these have yield potentials of 8 tons/ha. Average yields of 6 tons/ha, triple current production,
should be obtainable with good agronomic practices and fertilizer use. Production costs can be reduced
by using herbicides, which are considerably less expensive than current hand weeding, the burden of
which largely falls upon women.
 Fertilizer efficiency under flooded conditions can be doubled by urea deep placement (UDP)
technology, in which briquettes of urea are pressed deep into flooded soils. Urea or other nitrogen


                                                                                                        20
sources are commonly broadcast, which results in high nitrogen losses due to volatilization, runoff, and
leaching. By deep placing urea into the soil, nitrogen is less subject to runoff, and remains longer in the
less leachable ammonium form. UDP technology decreases fertilizer required to obtain a given yield by
some 50%, greatly increasing production efficiency and eliminating the negative consequences of
broadcast-applied nitrogen.
Glyphosate herbicides can be toxic to aquatic life. The toxicity is due not to the glyphosate but to added
surfactants. Specific glyphosate formulations are available for aquatic weed control. The project will
carefully evaluate herbicide toxicity and timing of herbicide application to ensure that herbicides do not
negatively impact on the aquatic biosphere, and will train farmers accordingly in their correct use.
Lowland rice generally does not need to be rotated, but in seasonal swamps, opportunities exist to
exploit receding waters. Potential crops include deep-rooted legumes such as chickpea or vegetables that
can be produced on residual moisture. If chickpea proves a viable alternative, the N2Africa Project will
likely be a partner in developing sound production strategies for chickpea integration.
While lowland rice will initially receive priority, the project will also strongly consider upland rice
production. Many lowland rice farmers also produce upland rice, exploiting local topographical
differences. Targeting of upland rice will also be considered where produced in large quantities in
project areas targeted to other commodities.

Market Potential
Rice demand in East and Southern Africa is increasing at 6% per year, driven by changing preferences
of urban consumers. While rice production is increasing regionally, rice imports to Eastern Africa
(Rwanda, Kenya, Tanzania, Uganda and Burundi) were 700,000 Mt in 2008. South Sudan is also a
major importer.
To encourage internal production, the East African Community has a common external tariff of 75%
(though this is reduced to 35% for Kenya due to their high import demand). Uganda itself has drastically
reduced its rice imports over the past decade due to increased internal production. Thus a strong market
exists for Uganda rice both internally and regionally, and given consumer trends, is likely to continue.
The need for a tariff shows that relative to world prices, regional rice prices are high. Increased
production efficiencies will eventually drive down production costs and increase supply and lower
prices. To compete regionally and internationally, it will be necessary to increase productivity and lower
production costs.

Current Farmer Organization and Potential Partners

Though rice production around large rice schemes constitutes a small percentage of farmers involved in
lowland rice production, farmers are most organized around these schemes. The Doho scheme is
managed by an organization of some 10,000 farmers, but administration is considered to be in need of
strengthening (improved financial accountability and funds management). The scheme is currently
undergoing de-silting and general rehabilitation. Some 6,000 farmers will benefit from ongoing
development of the Kibimba catchment (due for completion in June 2013), many of which are likely to
become outgrowers for Tilda. Pearl Rice Ltd. Is operating in the Naibombwa wetlands in Iganda district,
and is as well developing a large outgrower scheme, though the level of actual farmer organization is
unknown. They are developing up to 10,000 ha of land, a large proportion devoted to smallholder
outgrowers. Pearl already has a rice outgrowers scheme, though the current level of organizaton is not
known. Pearl is working with NAADS to take over NAADS service provision in their area of operation.
All of these present good opportunities for cluster formation.

Outside of these schemes, farmer organization is mainly at the farmer group level (20-30 farmers),
sufficient for demonstration plots but insufficient for cluster formation unless combined with other
farmer groups. Nevertheless, because of the large number of farmers involved, particularly around Lake

                                                                                                        21
Kyoga, these farmers should be organized, beginning with cluster formation of some 200 farmers
around existing farmer groups and demonstration gardens. In cluster formation, several actors need to
play roles: finance institutions, rice millers, input suppliers, and traders are key actors together with
producers.

Sasakawa 2000 has a good cluster development model that they have successfully employed in the
sorghum value chain to supply breweries, which they believe can be successfully extended to the rice
sector. Clusters use traders and input dealers as value chain champions. Rice traders commonly have
village-level contacts who work with farmers to source their harvest. These village-level contacts are
oftentimes rice farmers themselves. As well, input dealers (particularly those known to UNADA and
through the EADN project to be reliable) have an interest in selling inputs such as fertilizers, seed, and
crop protection products. Input dealers and village-level trader contacts can be recruited and trained to
manage demonstrations, and use those demonstrations to promote their products and services. Village-
level traders have intimate contact with farmers, and established levels of trust. They commonly give
small loans to farmers for inputs, which are recuperated at harvest. Input dealers may also secure loans,
which can be partially guaranteed through an AGRA program implemented through UNADA. Close
relationships with farmers generally ensure loan repayment, and that harvest is sold to traders financing
them. Similar arrangements have been piloted by some millers such as Idro Upland Millers. Farmer
clusters can bulk their harvest and work with quality millers to produce a better grade rice, which has a
price premium.

The project will prioritize linking farmers to quality mills. Of the some 600 mills operating in 2009,
only 10 were medium to large-scale mills with destoners, capable of producing clean, polished rich best
suited to urban and export demand. Many medium to large-scale mills are operating at <50% capacity.

The Japanese International Cooperation Agency (JICA) completed a 3-year phase in 2010 which
concentrated on developing improved agronomic practices, farmer training, variety development,
multiplication and distribution, and some small-scale irritagion (2 ha) suited to smallholder
development. Seed efforts were devoted to upland NERICA varieties. JICA is now undertaking the
Promotion of Rice Development Project, from 2011-2016. The project will deal with both upland and
irrigated rice. Priority activities are rice variety selection and multiplication; studies on water
management suitability and mechanization potential; technical package development for various
environments; trainings for service providers, farmers, rice millers, and traders; and a rice value chain
study. The project targets approximately 40,000 farmers, rice research institutes, and service providers.
Many JICA activities (both past and ongoing) complement activities in this proposal, and as such JICA
will be approached in the inception phase regarding collaboration.

Other Priority Commodities
During the inception phase of the project an additional commodity and cropping system will be selected.
A strong potential candidate is sunflower in rotation with a commercial legume (either soybean or
groundnut). There is high market potential for these commodities as well as significant scope for yield
improvements. A.K. Oils & Fats is currently working with 55,000 sunflower growers supplying to
Mukwano with little emphasis on productivity improvements and sustainable production. Such a value
chain with a large lead firm presents significant opportunities for smallholder farmer income
improvement. Because the sunflower oil and seed sector value chains are already well-developed, a
relatively small investment in commercialized production practices could greatly improve profitability
and reverse soil depletion now taking place without soil fertility inputs and organic matter management
strategies.



1.3      National Policy Context

                                                                                                       22
As a member of the East African Community, Uganda has adopted free movement of in-country
products with Rwanda and Kenya. Discussions are underway for eventual membership with South
Sudan and DRC. However there are challenges related to implementation as some countries still apply
taxes to agriculture imports from EAC member countries.
The Government of Uganda launched its National Development Plan in 2010, which includes a heavy
focus on agriculture. As part of the broader national framework, Uganda’s Comprehensive African
Agriculture Development Plan (CAADP) Compact was signed in April 2010 together with approval of
the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) new five-year investment plan,
the Development Strategy and Investment Plan, or DSIP.
DSIP aims to contribute to two high level development objectives:
  1. Increasing rural household incomes and improving livelihoods; and
  2. Improving household and national food and nutrition security through
    increasing productivity in crops, livestock and fisheries;
    improving market access for agricultural products in domestic, regional and international
       markets;
    creating a favorable legal, policy and institutional framework that facilitates private sector
       investment in agriculture, and
    strengthening MAAIF and its agencies
CATALIST-Uganda, with its focus on capacity building in value chain and innovation technology
transfer to partners, will contribute directly to the first two objectives, while supporting the latter two
through policy advocacy in the enabling environment and targeted strengthening of NAADS through its
participation as a project partner. Irish potato, cassava, and rice are all priority commodities in the DSIP,
each with specific production targets, priority agroecological zones, and suggested interventions that
align with interventions in this proposal under “commercialized production potential” for the individual
commodities (section 1.2 above).

1.4       Dutch Food Security Policy
Dutch Policy Context
In 2009 the Dutch Scientific Council for Government Policy published ‘Less pretension, more ambition;
development aid that makes a difference’, which outlines a vision for the future of Dutch development
aid. Agriculture – an area in which the Netherlands excels – has a prominent position in this vision.
The policy report ‘Agriculture, rural economic development and food security’ (September 2008), co-
authored by DGIS and the Ministry of Agriculture, Nature and Food Quality, provides the guiding
principles for Dutch development aid in the area of agriculture, food security and agribusiness
development. These aim at contributing to the following four objectives the agricultural sector:
    1.   Sustainable increase in food production
    2.   More efficient markets.
    3.   Improved business environment.
    4.   Better access to healthy food.
CATALIST-Uganda is designed specifically to address the first three objectives.
Likewise CATALIST-Uganda will contribute to specific priorities for the Embassy of the Kingdom of
the Netherlands (EKN) in Uganda, as outlined in its Multi Annual Strategic Plan 2012-20156 in both the



6
 “Food and Justice – Investing in human security in a challenging governance context”, Multi Annual Strategic Plan
2012-2015, Embassy of the Kingdom of the Netherlands in Uganda, December 2011.

                                                                                                                     23
Food Security and to a lesser extent in the Security and Rule of Law Components. Specifically,
CATALIST-Uganda will contribute directly to the following outcomes:
    1. Improved performance of selected agro-food value chains and actors.
    2. Enabling environment is conducive for agribusiness in general and the selected agri-food value
       chains.
    3. Dutch trade and investment promotion in the area of food security is enhanced.

CATALIST-Uganda addresses both the overall Dutch policy and Uganda-specific policy through its
value chain activities in the selected commodities that increase agricultural productivity and access to
more efficient input and output markets. The enabling environment will not only be addressed through
the project’s policy interventions, but through the improvements in the overall operating environment
for agribusiness, including access to finance, more efficient input and output markets including regional
markets, gender and youth employment generation and improved infrastructure through public works.
The project’s cross-cutting issues in the program – gender, youth and environment – are also aligned
with the Dutch strategy. Lastly, CATALIST-Uganda will contribute the Embassy’s Security and Rule of
Law Components by contributing a vibrant civil society in strengthening farmer organizations, clusters,
agribusinesses and NGOs (such as through the Agri-ProFocus network).

From Aid to Investments
Private sector development and private sector engagement with rural economic development is a key
component of current Dutch policies towards agricultural development in developing countries.
Creating partnerships with medium and large scale enterprises is an important strategy for arriving at
sustained agribusiness development. Recently, the Ministries of Foreign Affairs and of Economic
Affairs, Agriculture and Innovation published an overview of the wide array of private sector
development instruments7 (‘From Aid to Investments’). In collaboration with EKN, CATALIST-
Uganda will engage these instruments to facilitate private sector development and joint ventures with
national enterprises.

Partnerships with Medium and Large Scale Enterprises
CATALIST-Uganda will enter into partnerships with national and regional agro-processors and food
companies, and international (including Dutch) companies to support the growth of agribusiness clusters
and the connection of smallholders and SMEs (Small to Medium-sized Enterprises) to markets. National
and international (notably Dutch) companies contribute significantly to the goal of accelerating and
expanding value chains and agribusiness cluster formation.
The project will maximize development resources by leveraging private cooperation through
partnerships with national and (Dutch) multinational agro-enterprises. Several (Dutch) multinationals
have expressed their interest to collaborate with IFDC or signed Letters of Intent (Unilever, Friesland
Campina, TNT, Rabobank, East-West Seeds, RijkZwaan, DSM, DADTCO, Shell). Collaboration with
AgriProFocus and its members will be used to foster relations with Dutch private and cooperative
enterprises.

1.5      The CATALIST Experience
Between 2006 and 2011, using a similar approach as presented in CATALIST-Uganda, the CATALIST
project funded through EKN in Kigali triggered agricultural intensification in Burundi, DRC and

7
 Among others: PSI, MMF, ORIO, AECF, PUM, YEP, Borgstelling MKB kredieten, FOM, ICF, PRC, Agri-ProFocus,
Agriterra POP, BiD network, BoP Inc.



                                                                                                      24
Rwanda. CATALIST strengthened several value chains and contributed to the improvement of the
institutional environment necessary for agricultural intensification. Some 250,000 smallholder farmers
(49 percent female) have adopted more intensive agriculture. Together they produced a marketable
surplus estimated at almost 500,000 metric tons of cereal equivalents per year. Through efforts to
overcome markets constraints, the project facilitated the development of 45 agribusiness clusters built
around 11 value chains, and strengthened the capacities of over 850 rural entrepreneurs who have seen
their income increase by approximately 50 percent. CATALIST and partners contributed to improving
food security and rural entrepreneurship, indirectly contributing to increased peace and stability in the
Great Lakes Region. A proposal for the second phase of CATALIST is currently under review, also
increasingly building on Dutch enterprises and Dutch knowledge centers.



1.6      CATALIST-Uganda: An Innovative New Project
While CATALIST-Uganda builds on the CATALIST experience in Rwanda, Burundi and DRC, it also
represents a tailor-made program to address the Ugandan context, incorporating important lessons
learned and significant new innovations. Specifically, CATALIST-Uganda differs from its predecessor
in the following important areas:
   1. More focused in its choice of value chains, developing commercially sustainable cropping
      systems around the three to four selected commodity value chains.
   2. The ISFM approach used in the Great Lakes CATALIST project is soils-focused, and
      emphasizes maximization of fertilizer use efficiency. The CSFS approach to be employed in
      CATALIST-Uganda focuses on commercialization of the entire farming system rather than
      individual commodities, maximizing profits and sustaining/improving soil fertility.
   3. Accelerated cluster development, developing clusters as soon as potential cluster actors can
      come together to take advantage of business opportunities.
   4. Formation of apex clusters around each of the commodity value chains that take advantage of
      regional/national opportunities and economies of scale, particularly regarding access to input
      and output markets (including large national and international/Dutch agro-processors). Apex
      clusters will also have increased leverage to influence the policy environment.
   5. Leaner staffing structure, leveraging regional staff from CATALIST-2, external experts, IDFC
      Africa staff, business service providers and project partners.
   6. Three financial instruments including a matching investment fund that allows farmers and famer
      groups to increase agricultural productivity and market access through the purchase or
      development of storage and marketing infrastructure. This complements the Innovation Grant
      Fund that seeks to spur innovations in input and output markets and a fund for public works that
      provides rural employment through the construction or upgrading of production and market
      access infrastructure




                                                                                                      25
2. CATALIST-Uganda Technical Approach
2.1      Program Goals and Objectives
The goal of CATALIST-Uganda is to sustainably commercialize smallholder agriculture through
improved productivity and market development, resulting in marketable surpluses that raise farm
incomes in Uganda, and increase food security for the wider East Africa and Great Lakes Region.
To achieve its goal, CATALIST-Uganda will undertake two interrelated objectives:
   Objective 1: Smallholder farmers improve production, productivity and quality in commodity-
                specific cropping systems. (Production push)
   Objective 2: Agribusiness clusters create value by selling into national, East Africa regional and
                international/Dutch markets and agribusinesses (Market pull)

These two objectives, together with an inception phase and a set of project instruments that support its
technical implementation—including public works, a matching investment fund and innovation grants—
comprise the main activities of CATALIST-Uganda. Each of the two objectives is driven by project
outputs, which are in turn driven by project activities. These are explained in further detail below,
together with a logical framework.

2.2      Program Approach
Competitive Agricultural Systems and Enterprises (CASE)
CASE Conceptual Framework




CASE (Competitive Agricultural Systems and Enterprises) is the conceptual framework that guides
IFDC’s work on promoting farmer entrepreneurship. It was developed in West Africa as an outcome of
the ISFM/GIFS project (1999-2005) and formed the basis of the Thousands to Millions project (1000s+)
and the CATALIST and CATALIST-2 Projects in the Great Lakes Region (Rwanda, Burundi, and
Eastern DRC).
CASE aims to facilitate the emergence of agribusiness clusters (ABCs) and to link smallholder farmers
to markets. An agribusiness cluster defined as a group of value chain operators, supporters and enablers
which have identified a common agenda to implement a business idea, to learn and work together, to
innovate and to implement coordinated action around a specific commodity, in one or more value

                                                                                                     26
chains. Cluster members may comprise the following groups of actors: agro-input dealers, financial
institutions, public and private business support service providers (including extension services),
producer organizations, traders and processors. Each cluster is considered a unique and innovative
public-private partnership, focusing on a specific commodity and specific markets, with actors often
operating in proximity to each other.
CASE integrates approaches and concepts from value chain development, institutional economics,
market system development, transaction economics and rural innovation systems. The basic premise is
that small farmers need to have profitable market outlets in order to have the means and motivation to
invest in their farms and soils. This in turn leads to productivity increases that result in increased rural
incomes completing the virtuous cycle. Market development and agricultural intensification through
CSFS outlined further below thus form the main focus of CASE.
CSFSs (Commercialized Sustainable Farming Systems) seek to optimize profits from crops (and
potentially livestock) in the farming system, as opposed to a specific crop within the farming system,
while simultaneously sustaining/improving soil health. This is accomplished by maximizing synergies
between inputs (improved seed, mineral fertilizers, crop protection products), cropping sequences
(rotations/intercrops), livestock (if present), and management choices (e.g., organic matter management,
tillage practices, and erosion control) in an environmentally sustainable manner.
CASE responds to the fact that integration into markets is a difficult and often risky venture for
smallholder farmers. Demand for a product is not enough to ‘pull’ smallholder farmers’ response. Such
response requires the development of close – professional and trust-based – relationships between
smallholder producers, other entrepreneurs, Business Support Services (BSSs) and Micro Finance
Institutions (MFIs).
The CASE approach will be used to integrate smallholders into local, national, regional and global value
chains. CASE aims to strengthen the capacity of smallholder producers and nearby SMEs, through the
support of BSSs and MFIs, to access competitive markets. CASE does so by strengthening individual
and collective capacity of all above-mentioned actors in ABCs. Collective learning and action is
nurtured to improve coordination among ABC stakeholders, and to ensure informed and sustained
integration in targeted value chains and markets. CASE features local tailor-made implementation
strategies. It does not stipulate a specific entry point. Any local value chain agent (producer organization
or cooperative, SME, etc.) can be the driving force for cluster development. Experience shows that
many of the potential champions will be local processors that need a greater supply of specific
commodities.
Forming higher-level apex agribusiness clusters further up the value chain will be a key innovation of
the CATALIST-Uganda project. These commodity specific apex clusters form to take advantage of
national and East Africa regional opportunities and economies of scale. Partnerships with national and
regional agro-processors and food companies, and international/Dutch companies will support the
growth of agribusiness clusters and the connection of smallholders and SMEs to markets.




                                                                                                         27
Fundamental to the CASE approach is a push-pull methodology in which ‘push’ of increased
agricultural productive is in response to the ‘pull’ of market demand. Raising production and
productivity is essential for having a marketable surplus, while remunerative market channels are in turn
an important precondition for farmers to invest in agricultural intensification, completing the virtuous
cycle. CASE has 4 major interrelated elements: (i) ABCs; (ii) Production push; (iii) Market pull and (iv)
Policy environment and business climate that are illustrated below. These elements are incorporated into
the CATALIST-Uganda approach.

CASE Approach and Value Chain Development




2.3      Technical Approach
Each of the project’s two objectives is achieved through outputs that in turn drive specific project
activities. An overview of CATALIST-Uganda’s technical approach is summarized in the table below
and reviewed in more detail in the section that follows. These outputs comprise the common technical
approach across the selected cropping systems, together with a set of project instruments (public works
and grant funds). Likely commodity-specific activities are detailed in Section 2.6. The project will begin
with a six-month inception phase.




                                                                                                       28
Objectives and Outputs of CATALIST-Uganda

Project Goal:
To sustainably commercialize smallholder agriculture through improved productivity and market development, resulting in marketable
surpluses that raise farm incomes in Uganda, and increase food security for the wider East Africa and Great Lakes Region

Project Objectives:
Production Push                                                  Market Pull
1. Smallholder farmers improve production, productivity and      2. Agribusiness clusters create value by selling into national,
   quality in commodity-specific cropping systems                   regional and international/Dutch markets and agribusinesses

Project Outputs:
  1.1 Farmers sustainably increase yields and decrease              2.1 ABC actors undertake joint purchasing, storage, and
      production costs                                                  selling power
  1.2 Farmers utilize quality agro-inputs, technical advice,        2.2 ABC actors undertake value adding activities and
      savings and credit                                                diversify their products
  1.3 Farmers decrease post-harvest losses and improve post-        2.3 ABC actors develop sustainable relationships with large
      harvest quality at farm level                                     national, East Africa regional and international/Dutch
                                                                        agribusinesses

                                                                    2.4 ABC actors adapt to and lobby for reforms in the
                                                                        business environment


Inception Phase
The inception phase of the project will lay the groundwork for project implementation, leading to the
strategy development for targeted value chains/cropping systems and the first annual work plan. It will
also result in the setting up of the project implementation offices and systems. The inception phase will
be launched at the start of the program and be completed by month six of program implementation. It is
comprised of three outputs:
    1. Market appraisal, value chain mapping and other analyses inform annual work planning
    2. Human resources, facilities, equipment and partners in place for project implementation
    3. Finance and administration systems implemented and audited
A detailed work plan for the inception phase is found in Annex 1.

Market appraisal, value chain mapping and other analyses inform annual work planning
The inception team will undertake a rapid market appraisal and value chain analysis and mapping,
leveraging existing data and previous reports where applicable and then using a value chain framework
to conduct analyses for the three primary commodities and their related cropping systems: cassava, Irish
potatoes and rice, and for a fourth cropping system to be identified during the inception phase. Each
map will include a full range of enterprises, producers, processors, packaging enterprises, marketers,
buyers, sellers, and other agribusinesses. An important aspect of these value chain maps will be
identification of business support services (BSSs), development partners and other important
stakeholders that will be involved in addressing bottlenecks in the value chain.
The starting point will be the analysis of end-markets at national, regional and international/Dutch
agribusiness levels, together with analysis of the marketing channels and requirements for volumes,
quality and variety. Moreover, each value chain analysis will explore not only the tangible relationships
between actors – such as the weak market signals and poor distribution channels – but will also focus on
intangible factors – the lack of trust and cooperation between producers and processors that impedes
them from matching products with markets in win-win relationships. The market and value chain


                                                                                                                               29
analyses will also identify public works and post-harvest and market access infrastructure that will
support market development and productivity increases in each of the cropping systems.
An analysis of the political economy of each of the value chains will be undertaken once they have been
mapped out and precautions/mitigation measures established. The studies will also look at issues such as
gender, youth, and environment pertaining to each of the cropping systems by mapping the inputs and
returns to labor across gender and age-groups among the analyses. These issues will be mainstreamed
into all project activities ensuring that equitable access to resources, decision-making and economic
returns are promoted across gender and age-groups. Program activities will be designed specifically so
that all family members are involved in all agricultural activities including planning, farming and
marketing. IFDC will also learn from aBi Trust’s innovations in gender programming. Additionally, all
project activities and their impacts will be designed to be environmentally sustainable.
At critical stages in the process, these studies will be validated with industry stakeholders/actors, project
partners and beneficiaries, including GoU. During this process, bottlenecks will be verified and
prioritized by participants, culminating in development of the value chain implementation strategy for
each commodity, thereby creating ownership of the process and agreement on resolution of constraints.
The value chain studies and stakeholder validation will lay the groundwork for cluster development as
discussed further in below.
Following the rapid market appraisal and value chain analysis and mapping, the project’s logical
framework, objectives and outputs will be updated, activities revised for each cropping system, and
project baselines established. This in turn will be used to establish a monitoring and evaluation
framework. A communications plan and project exit and sustainability strategy will also be developed
as part of the work plan. Finally, the inception phase will also inform the selection of the initial public
works to be undertaken, as well as development of the grant funds manuals and application materials.

Human resources, facilities, equipment and partners in place for project implementation
Early on in the inception phase, the Chief of Party (COP), together with IFDC’s regional staff and start-
up team, will complete recruitment of all technical and administrative positions, as well as secure office
space, office equipment and vehicles. A senior manager with a gender background will be recruited
among the project staff.
Working modalities with project partners including institutions and implementing organizations
identified during the value chain mapping exercise and selected during the inception phase will be
established. Additionally, an assessment will be undertaken of all BSSs and those deemed capable will
be selected to participate in the program. The ILO’s skills training program, currently being developed
through Dutch funding, can be used to upgrade the skills of BSSs and project partners where gaps in
geographic coverage or technical areas are identified.

Finance and administration systems implemented and audited
The project will implement financial and administrative systems including human resource and
procurement systems and procedures based on IFDC best practices and consistent with the requirements
of EKN. An audit will be undertaken by a professional auditing frim on behalf of the Embassy at the
end of the inception phase.




                                                                                                          30
Objective 1: Smallholder farmers improve production, productivity and quality
             in commodity-specific cropping systems (Production Push)
Informed by the market analyses conducted during the inception phase, the production push will focus
on increased smallholder productivity through yield improvements and productivity cost reduction of
the selected commodities. This will be achieved by creating, demonstrating and disseminating
Commercialized Sustainable Farming Systems (CSFSs) and from improved post-harvest handling that
reduces losses and improves product quality.
Value chains encompass the full range of activities and services required to bring a product or service
from its conception to sale in its final markets—whether local, national, regional or global. Thus by
definition, working along a value chain entails operating along a single commodity to improve
profitability and competitiveness of the whole chain and its actors. Farmers however do not farm value
chains—rather they farm systems involving several commodities. It is the system that must be
commercialized—not a single commodity within the system – and this systems approach is a key
element of CSFS.
CSFS focuses on cropping systems that will be established around the target commodities, in which
complementary crops are intercropped or rotated with the primary commodity.
This objective is comprised of three outputs:
    1. Farmers sustainably increase yields and decrease production costs.
    2. Farmers utilize quality agro-inputs, technical advice, savings and credit.
    3. Farmers decrease post-harvest losses and improve post-harvest quality at farm level.

Output 1.1 –      Farmers sustainably increase yields and decrease production costs
With CSFS, professional farmers can make solid gains essential to the commercialization of smallholder
agriculture. The basic premise is farmers need to produce large surpluses at reduced productivity costs
for identified markets. Farmers must have profitable market outlets in order to have the means and
motivation to invest in their farms and soils. Value chain development is thus situated in the context of
farming systems and livelihood perspectives. Likely CSFS interventions are discussed for individual
commodities in Section 1.2 above.
With significant increases in yields through improved farming practices, farming households have
sufficient quantities of the project’s respective target commodities for both their own consumption and
as for sale as a cash crop. Farming families will be trained on the optimal allocation of their harvest for
home-use and sale to ensure that the family’s nutritional needs are met.
Projected numbers of beneficiary households and increases in marketable surpluses in terms of cereal
equivalents are shown in the table below. The projections assume that sunflower will be an additional
commoditiey, and that adoption will be almost nothing until after demonstrations are conducted in the
first season of 2013. Projections do not account for crops that will be grown in rotation or association in
farming systems with these commodities, though these will also be monitored. There are many
uncertainties in the projection, including climatic unpredictability, seasonality of production, seed and
fertilizer availability, and pest and disease outbreaks. It is likely that achievement of these projections
will not be as smooth as is represented. Overall, the projections are conservative and achievable, and by
the end of the project, the objectives of 110,000 beneficiary households and some 225,000 metric tons
of marketable surpluses will be achieved.




                                                                                                        31
Projected project impact for various commodities


                                     Irish Potato    Cassava       Rice      Sunflower     TOTALS
  CURRENT PRODUCTION
  # of households                      184,000      1,677,000     125,000     500,000
  Hectares in production               102,000       415,000      140,000     190,000
  Average yield/ha                       6.8           12.7         1.6         1.2

  PROJECTED ADOPTION
  Projected households affected
                                        40,000        10,000      20,000       40,000      110,000
  by end of project
  Projected yield/ha                      20            25           5            2
  Projected yield increase/ha            13.2          12.3         3.4          0.8
  Average ha cropped
                                         0.25          0.50         0.25        0.50
  /household/year (2 seasons)
  Projected ha affected by 2015         10,000        5,000        5,000       20,000
  Cereal equivalents/yield ratio         0.20          0.32         1.05        1.70

  Ha affected by season
  2013 second season                     500           250          250        1,000        2,000
  2014 first season                     2,000         1,000        1,000       4,000        8,000
  2014 second season                    4,000         2,000        2,000       8,000       16,000
  2015 first season                     8,000         4,000        4,000       16,000      32,000
  2015 second season                    10,000        5,000        5,000       20,000      40,000

  Additional cereal equivalents produced per season
  2013 second season                   1,300       1,000           900         1,400        4,600
  2014 first season                    5,400       3,900          3,600        5,400
  2014 second season                  10,700       7,900          7,100        10,900       54,900
  2015 first season                   21,500       15,700         14,200       21,700
  2015 second season                  26,900       19,700         17,800       27,200      164,700
  Total cereal equivalents            65,800       48,200         43,600       66,600      224,200



Output 1.2 –     Farmers utilize quality agro-inputs, technical advice, savings and credit
Access to and utilization of improved inputs including quality seed and fertilizers is essential to
commercializing smallholder agriculture, and is at the core of CSFS. Without efficient use of improved
inputs, sustained productivity increases accompanied by decreases in the unit cost of production are not
possible.
IFDC has already been engaged in agro-dealer and seed sector development in Uganda through the
EADN (Extending Agro-Dealers Network) project, AMITSA (Regional Agricultural Input Market
Information and Transparency System) and COMRAP (COMESA Regional Agro-Inputs Programme).
These projects have strengthened input markets and provided a good network of contacts for IFDC to
build upon.


                                                                                                     32
A key element of this output is timely access to technical and financial advice. Extension advice will
come from a variety of sources: initially from the project’s own agronomists, and as linkages are
formed, from trained and certified agro-input dealers, extension officers, and BSSs. At the farmer group
level, CATALIST-Uganda will link farmers to village savings and loan associations as ways of
facilitating savings and credit.

Output 1.3 – Farmers decrease post-harvest losses and improve post-harvest quality at farm
                 level
With post-harvest losses estimated at 10-30% across selected commodities, improving post-harvest
handling (PHH) contributes substantially to increased tradable surpluses. PHH techniques and
equipment vary by cropping system, and CATALIST-Uganda’s Matching Investment Fund together
with appropriate extension support will play a key role in farmers’ ability to improve product quality.
The Matching Investment Fund, which is outlined in more detail below, will enable farmers, as
individuals, groups, or associations, to access funds on a matching basis for procurement of equipment.
Examples include mesh potato sacks and small-scale storage, processing and drying units, drying
infrastructure, and moisture meters.
Improved PHH is also a precondition for improved storage necessary for inventory credit and
warehouse receipt systems. These are discussed in more detail in Output 2.1 below.


Objective 2: Agribusiness clusters create value by selling into national, East
             Africa regional and international/Dutch markets and
             agribusinesses (Market pull)



Market pull is the starting point for value chain development and for the CASE approach. The
establishment of supplier-buyer relations with agribusiness of all sizes from small local processors to
large national and multinational enterprises - including Dutch - is essential, as these provide important
market opportunities and ‘pull’ for the development of viable agribusiness clusters. Remunerative
market channels are an important precondition for farmers to invest in agricultural intensification. As
such, CATALIST-Uganda will concentrate on the processing of primary produce, product development
and diversification, and market development.
To achieve this, CATALIST-Uganda will catalyze the development and out-scaling of functional and
dynamic agribusiness clusters, in which value chain operators, supporters and enablers collaborate to
seize business opportunities. Typically these include producer organizations, agro-input dealers,
financial institutions, public and private business support service providers (including extension
services), traders and processors. Starting off with a nucleus of promising farmers organized in a group
or cooperative, the project will facilitate the process of cluster formation through the provision of hands-
on advisory services.
Agribusiness clusters will evolve over time as the needs of the actors and their surplus production
increases through agricultural intensification. Starting with farm-level business transactions, such as
access to improved inputs and access to local market and credit, the clusters will evolve as their business
transactions mature, both in terms of the number of farmers involved as well as the diversity of partners
and markets. Farmer-group clusters will come together to form commodity-specific apex clusters, so
that each cropping system is ultimately represented by an one cluster at the highest level, as explained in
more detail below. The market appraisal and value chain mapping undertaken during the inception
phase will be used as a guide in cluster development to maintain a market development focus.

                                                                                                         33
As clusters and their farmer members link to markets raising farmer incomes, the clusters themselves
will scale up their farmer membership to meet demand. It is assumed that market pull can accelerate
growth in terms of area and productivity per farmer, and the number of farmers involved in clusters. On
the supply side, credit, seeds, fertilizer and other farm inputs will have to be available, as outlined
above.
To initiate the process of cluster development, project partners and staff will be trained in the ABC
approach through a training of trainers (ToT). For the initial round of cluster formation, key partner staff
will serve as Agribusiness Coaches to guide the process once the potential cluster actors and champions
have identified business opportunities. As the project progresses in cluster formation, Agribusiness
Coaches will be selected from either a local partner, a local service provider, or the champion identified
locally. It is essential that cluster actors organize themselves so as not to create project-dependent
clusters; the project’s role is to assure that the ownership of the cluster really lies with the actors.

Agribusiness Coaches

The Agribusiness Coach will be a key player on the project acting as the primary contact between a
cluster and the project. An Agribusiness Coach will secure the development of a solid cluster
development plan, and will make sure that clusters have access to the project’s technical experts in
the fields of business development, CSFS, seed, communication and capacity development. An
Agribusiness Coach will cover between 1 and 10 clusters – depending on size, scope, and complexity.
At the end of the project, these Agribusiness Coaches will be well established local consultants.

Once clusters have been formed, a key first step is the identification of the business champions in the
clusters (for example, small, medium or large agro-processors, producer organizations,
traders/aggregators, etc.) who will help ABCs with identification of strong market opportunities. This
process will be supported by the development of an ABC development plan, in which the goals of the
cluster will be linked to concrete steps to be taken by both the cluster and the project.
While the value-chain approach is at the heart of the project, it is important that clusters act as diverse
networks and not single-purpose value chains, often organized around a single ‘golden’ opportunity
which creates high risk. A more stable and resilient cluster is one in which all the cluster actors have
options among input suppliers and output buyers as this allows the cluster to respond better to external
shocks.
Based on the individual cluster action plans and needs and training assessment outlined in these plans,
capacity building and training of clusters will take place with a focus on market development. Activities
include access to market information and business skills trainings on record-keeping, farming as a
business, financial management and marketing.
Business Support Services (BSS) are a key element of capacity building. BSSs include training
institutes, extension material development services, and marketing support services. Where available
and of adequate quality, BSS will be engaged to help the ABCs to accelerate quality support to the
agribusiness sector, while at the same time increasing the implementing capacity of the project. The
ILO’s skills training program can be used to upgrade the skills of BSSs where gaps in geographic
coverage or technical areas are identified.
This objective is comprised of four outputs:
    1. ABC actors undertake joint purchasing, storage, and selling power
    2. ABC actors undertake value adding activities and diversify their products
    3. ABC actors develop sustainable relationships with large national, East Africa regional and
       international/Dutch agribusinesses
    4. ABC actors adapt to and lobby for reforms in the business environment



                                                                                                         34
Output 2.1 –      ABC actors undertake joint purchasing, storage, and selling power
Reliable and consistent access to improved, certified agro-inputs is essential for commercialization of
smallholder agriculture. Once ABCs have sufficient demand for agro-inputs and have developed the
business skills to source agro-inputs directly from suppliers, ABCs will be guided in the development of
business plans with required credit linkages for bulk-purchasing of inputs at discounted prices. Bulk
purchasing of agro-inputs can also be connected to inventory credit systems or warehouse receipt
systems (WRSs). In such an arrangement, inputs are made available to farmers to be repaid at the end of
the season using product inventory as a guarantee.
To achieve this, CATALIST-Uganda will encourage farmer access to financial institutions which offer a
range of appropriate products tailored to agriculture – contract farming, forward contracts, agricultural
insurance etc.
Storage – both as a basis for storage-based financing as well as for opportunities to profit from seasonal
price fluctuations - is essential for improved market access. A particular focus will be the introduction of
the inventory credit system and more sophisticated warehouse receipt systems. CATALIST-Uganda will
support both cooperatives and financial institutions to start up additional inventory credit programs in
the project region, and assist in promoting the projects through awareness activities (study tours of
operational warehouses in collaboration). The East African Grain Council can provide technical
assistance to clusters in establishing robust WRS. Access to credit guarantees already established by the
aBi Trust in Uganda in collaboration with 8 banks will also be facilitated.

Output 2.2 – ABC actors undertake value adding activities and diversify their products
As clusters mature, they will be facilitated in developing value adding activities—including processing,
sorting and grading and packaging—and diversifying their products. Multiple opportunities exist in all
commodities and cropping systems. In potatoes, opportunities include sale in smaller quantities in nets
for retail outlets and supermarkets. For cassava, opportunities include processing and packaging for
HQCF, beer, and dried cassava chips. For rice, opportunities exist in milling, packaging and branding.
Innovation grants to cluster actors will allow them to test markets and products, while the Matching
Investment Fund will allow processors and farmer groups to obtain matching funds for processing
equipment. The latter will also assist cluster actors with market access requirements such as packaging,
quality control, certification, etc.

Output 2.3 –      ABC actors develop sustainable relationships with large national, East Africa
                  regional and international/Dutch agribusinesses
With market pull at the core of CATALIST-Uganda, national, regional and global demand for
agricultural commodities or products has the potential to provide large markets. Cluster actors and
CATALIST-Uganda will examine the supply chain strategies of key SMEs and large national and multi-
national companies to identify ‘lead firms’ able to drive targeted value chains, and ‘pull’ agribusiness
cluster formation in response to demand.
Such partners provide significant guaranteed markets at fixed/predictable prices and terms of payment
that can encourage professional discipline in SMEs and smallholder farmers due to their insistence on
quality and volumes. Additionally, large agribusinesses will often enter into contract farming
arrangements, providing embedded services such as planting material, inputs and extension support
either on credit or factored into the final contract price. The contracts themselves can be used by the
cluster actors as collateral to access credit.
As the lower-level agribusiness clusters develop in the complexity of their business transactions,
CATALIST-Uganda will initiate the development of apex clusters. Apex clusters will form to seize
opportunities at national and East Africa regional level, particularly to access input and output markets


                                                                                                         35
and to influence the policy environment. Having one platform at the highest level representing large
numbers of smallholder farmers to engage with agribusinesses, government and input suppliers provides
significant economies of scale and strengthens the bargaining position of primary producers.
Apex clusters will form as the need arises, typically once lower-level clusters have significant
production volumes to be attractive to large agribusinesses or earlier if large agribusinesses are keen to
engage large numbers of farmers for contract farming. Apex clusters will resemble lower-level clusters
in their structure, with representatives from individual farmer groups attending, together with other
stakeholders such as input suppliers, traders, finance institutions, research organizations, and
government representatives at district and national levels, as summarized in the table below. Depending
on the number of smallholder farmers and clusters, an intermediate level such as cooperative-level
clusters (comprising of several farmer groups) may form to seize business opportunities such as bulk-
purchasing of inputs, or linking with a district-level processor.

Characteristics of Low-Level Clusters and Apex Clusters

Characteristics   Low-Level Clusters                            Apex Clusters
Affiliation          Individual Farmers                           Farmer representatives from lower-level clusters
                     Local agro-dealer, stockists                 National agro-dealers/importers
                     Local trader, broker                         National traders, brokers
                     Local processors                             National, regional and international/Dutch agri-
                     Local BSSs                                    processors
                     Local MFI, Banks, SACCOs                     WRS managers
                                                                   National BSSs
                                                                   EAGC, Ugandan Commodity Exchange and other
                                                                    relevant stakeholders
                                                                   Institutions/Research organizations
                                                                   Provincial/national government
Frequency of       Monthly / as needed                          Quarterly / as needed
meeting
Example            Focus on multiple commodities,                 Focus on a single commodity
Opportunities       depending on what farmers grow                 Source inputs directly from importers or suppliers
                   Linkage to agro-input shop                     Linkage with WRS, Ugandan Commodity Exchange
                   Improved post-harvest handling & storage       Market-linkage with national/Dutch agribusinesses
                   Market linkage to local traders                Linkage with national banks, credit guarantees
                   Credit linkage through local MFIs, banks,      Policy advocacy at national level
                    SACCOs
                   Value adding activities e.g. milling,
                    bagging


Examples of possible collaboration identified during the scoping mission and the project design phase
are summarized in the table below. Additional opportunities will be identified during the inception
phase and in project implementation. CATALIST-Uganda will work closely with other projects being
funded by EKN in the coming months.

Potential Partnership Examples

Breweries. Through EKN, IFDC is aware of plans to establish a brewery in Mbarara and the possibilities of contract
farming for cassava, sorghum and rice.
DADTCO. IFDC is in discussions with the Dutch company DADTCO (Dutch Agricultural Development and Trading
Company) on collaboration in Uganda for mobile cassava processing, based on their successful collaboration in
Nigeria utilizing Autonomous Mobile Processing Units (AMPUs) built in a 40ft container, which allows the factory to
come to the farmer. Within the partnership, IFDC proposed to organize the farmers and increase productivity through
input provision, CSFS, in-time delivery and quality control, while DADTCO undertakes processing and marketing.



                                                                                                                         36
Purchase for Progress. The P4P program of the World Food Program’s (WFP’s) encourages local sourcing of cereals
and pulses. It provides an opportunity for farmers to deliver according to contractual agreements. Although P4P is not
a private sector actor, the program is as demanding as a private enterprise. This is a unique opportunity for farmers to
prepare for the real market.
Seed companies: Dutch seed companies (RijkZwaan and East-West Seed Company) and Dutch potato seed
companies.
Small-scale mechanization: Dutch manufacturer Rumptstad
Existing IFDC Agribusiness Relationships: In 2010 IFDC signed Letters of Intent with several Dutch multinationals
with the intention to explore future involvement of these companies in local procurement, processing and marketing
and financial services – Unilever, TNT, FrieslandCampina, East-West Seed Company, RijkZwaan, Rabobank
Foundation, DADTCO (cassava).
Dutch Knowledge Institutions: Wageningen University Plant Production Systems (N2Africa Project); Wageningen
UR (University & Research centre) Center for Development Innovation (seed sector development); PTC+; Agriterra

As the project works with clusters to identify opportunities, care will be taken to ensure that the
ownership of the relationship remains with the cluster actors to ensure long-term sustainability of the
clusters. At the same time it is important for clusters to seek a diverse range of buyers for their products
(and/or suppliers for their agro-inputs) to reduce risk and dependence on single suppliers/buyers.

Output 2.4 – ABC actors adapt to and lobby for reforms in the business environment
To ensure sustainability, it is critical that clusters are dynamic in their response to changes in the
business environment, while at the same time advocating for reforms in the business environment that
address key agribusiness constraints. ABCs will be exposed to risk, and risk management will be an
important factor to create resilient clusters. Examples to changes in the business environment include
changes in consumer preferences; changes in prices for agro-inputs and outputs; changes in interest
rates, tariffs and taxes; and buyers/agribusinesses exiting or entering the market. Each situation will
require a response that static clusters are unlikely to withstand. The ability to respond to external shocks
is dependent on having access to timely information about fluctuations, having alternate options (other
crops, buyers/market channels, value-adding opportunities, etc.), and having the skills, financial
resources and assets to respond to change.
CATALIST-Uganda will work with clusters to build these skills, and to develop risk mitigation
strategies to respond to change. Business management skills, competitive intelligence, information and
risk management receive specific attention. One of the ultimate strategies to respond to changes is to
innovate and the project will support innovation through its innovation grants (see below). These grants
support new innovations in input and output markets such as developing and testing new value addition
opportunities, products or markets.
Policy issues and constraints encountered by clusters form the starting point for engaging with
government to improve the business environment. While many local-level issues can be addressed with
local authorities, issues that cannot be resolved at that level will be filtered upwards to the apex clusters.
Here, the participation of government at provincial or national level or of research institutes and other
national-level stakeholders is critical to address constraints. Some policy issues at this level involve
significant effort and time to bring about change in the business environment, and may be beyond the
scope of either the individual clusters or the project. These issues will be brought to the attention of
national stakeholder networks to continue the advocacy process.



Project instruments
Three project instruments are built into the design of CATALIST-Uganda that are important in
commercializing smallholder agriculture and increasing rural incomes. These include a public works

                                                                                                                     37
component for improving infrastructure, a Matching Investment Fund for investments in processing,
post-harvest handling and other value addition, and an Innovation Grant Fund to explore innovations in
cropping systems and input and output markets. During the inception phase, IFDC will liaise with other
development partners in Uganda, including aBi Trust and CDI (Centre for Development Innovation,
Wageningen University), to identify synergies in the rollout and management of these instruments.

Public Works
Public works are an essential aspect of CATALIST-Uganda, not only for employment creation, but also
to contribute to agricultural productivity and market access. As the project will not be targeting the
poorest of the poor – as these do not have the necessary productive assets (land) or ability to withstand
small risks or shocks - the project will target these through employment creation through public works.

Public works are particularly important in Uganda, where the government and has made less investment
in infrastructure than in neighboring Rwanda. The public works will be designed to support the core
activities of the program: agricultural intensification and market access and development. Examples
include the following.

Examples of Public Works

     Examples of public works contributing to                 Examples of public works contributing to
     increased agricultural productivity                      increased market access
      Slope stabilization and erosion control in mountainous  Development of feeder roads, drainages, civil works
       regions, possibly through hedgerows of improved               (culverts), etc.
       species for green manure and animal feed production          Warehouse development and rehabilitation
      Tree planning and development of woodlots
      Irrigation infrastructure and maintenance, particularly for
       irrigated rice
      Rainwater harvesting, ponds/dams/reservoirs, etc.


The project will work with local authorities to identify poor households eligible to be employed in the
CATALIST-Uganda public works program and will pay below the market rate (e.g. 75%) so as not to
distort labor markets. Clusters and project partners and stakeholders will be able to submit applications
for public works to be selected by the Public Works Review Committee. Public works will primarily
focus on infrastructure of a public/collective nature, with a few demonstrations on individual farms such
as terracing/slope control.

Matching Investment Fund
A key component in raising productivity and market access is equipment and facilities for better post-
harvest handling, storage, and other value addition, which many smallholder farmers currently lack. In
order to stimulate upgrading, CATALIST-Uganda’s Matching Investment Fund will fund:
       Small-scale post-harvest handling infrastructure such as dryers, moisture meters, etc.
       Medium-scale technical capacity and equipment upgrading for agribusinesses, cooperatives and
        processors, such as new processing equipment, storage infrastructure, quality control,
        certification, etc.
       Stimulating new BSSs and cluster actors (such as agro-dealers, transporters, traders, etc.) in
        under-served areas.
So as not to distort markets, matching investments will only be used to catalyze private sector
investment that would not otherwise attract financing from microfinance institutions or the formal
financial sector, or which might decline an otherwise solid business plan due to their lack of familiarity
with agricultural commodity markets. A match from the applicant—either as cash or in-kind


                                                                                                                      38
contributions—will be required for all grant types. The exact matching requirement to be determined
during the finalization of the grants procedures in the inception phase. Grants will be evaluated based
on impact, so that grants to farmer groups or cooperatives will be favored over grants to individuals,
unless there is a significant demonstration effect or a large multiplier effect.

Innovation Grant Fund
CATALIST-Uganda will seek to engage partners in finding solutions for addressing strategic issues or
exploring opportunities in increasing productivity and input and output markets through the Innovation
Grant Fund. The innovation grants can be engaged for a range of technical, commercial or institutional
issues. Examples include farmer groups testing new varieties of crops; different cropping systems,
minor (non-NPK) soil nutrients, dealer networks to fine-tune packaging technologies; banks and farmers
to explore and develop new financial products for low-income farmers; and BSSs, farmers’
organizations and supermarkets to better brand, market and sell locally produced crops.



2.4       Sustainability Strategy and Exit
Sustainability of project interventions and exit of the project after four years will be built into the project
from the beginning. The goal of the CATALIST-Uganda is to act as a facilitator, guiding beneficiaries
and value chain participants with a ‘light touch’ while building their capacity. By the end of the four-
year project period, project beneficiaries at all levels—from agribusiness clusters to their individual
members, from rural agribusinesses to BSSs—should be sustainable in their own future development.
This means that they will have the required tangible links to inputs and output markets, to services and
tools including market information and competitive intelligence, and will have developed the required
intangible skills, including the change in mind-set required for commercial farming, and the
entrepreneurship and resilience required for sustainable agribusiness management.
Sustainability and project exit will be built into the program through the development of an exit strategy
and sustainability plan during the inception phase which will guide the project in its implementation.
Similarly, at the start of each cluster and value chain development process, an exit strategy and
sustainability plan will form part of the initial strategy agreed to by all the partners. Cluster support
through capacity building, training and BSSs will be delivered over the project period, with an increased
requirement for beneficiary matching contribution and decreasing provision by the project, so that by
the end of CATALIST-Uganda, beneficiaries sufficiently value BSSs to pay for them in full.




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2.5         Project Logframe & Results Framework
The CATALIST-Uganda project logframe is presented below. This outlines the hierarchy of project goals, objectives, and outputs and includes tentative
indicators and targets, method of measurement/verification and related assumptions. Technical activities by commodity are presented in Section 2.6., and a
draft Performance Assessment Matrix is presented in Annex 2.

Project Logframe

                                                Tentative Indicators & Targets
Goal Level     Description                                                                   Measurement/Verification                     Assumptions
                                                (2016)
Project Goal   To sustainably                    110,000 participating smallholder             Baseline survey and annual surveys        Rainfall and other climate conditions stay
               commercialize smallholder          households                                    M&E of AB clusters and cluster reports     within the normal range for the region
               agriculture through               110,000 households double yields in           Project reports                           No sudden outbreaks of pests and/or crop
               improved productivity and          target commodities and achieve 50%            Project mid-term and final evaluation      diseases
               market development,                income increases                                                                         No significant macro-economic or
               resulting in marketable           Participating farmers produce a                                                           monetary instability
               surpluses that raise farm          marketable surplus of 224,000 metric                                                     No sudden changes in national or regional
               incomes in Uganda, and             tons of cereal equivalents over the life                                                  trade policies impeding free flow of inputs
               increase food security for         of project                                                                                and outputs
               the wider East Africa and                                                                                                   No sudden changes in agro-input or crop
               Great Lakes Region                                                                                                           prices and pricing policies
Project        1. Smallholder farmers
Objective         improve production,
                  productivity and quality in
                  commodity-specific
                  cropping systems
                  (Production Push)
Output            1.1 Farmers              4 geographic-specific CSFSs made                  Annual report lists technical packages      CATALIST aligns recommendations with
                      sustainably           available to farmers                               and number of farmers adopting them          NAADS in order to assure full use and
                      increase yields and                                                     Field visits and reports                     benefit of their extension services
                      decrease             80 % of participating farmers correctly                                                        Adequate capacity and interest of partners
                      production costs      apply at least 2 essential elements of                                                          to implement
                                            the CSFS recommendations




                                                                                                                                                                                          40
                                     Economic productivity of the CSFS        Report of technical package review
                                      recommendations increases by 50           including economic analysis
                                      percent in field trials over standard
                                      farmer practice
                                     8 innovation grants will test            Annual report lists innovation grants
                                      adaptations to CSFSs                     Grant agreements and grantee reports
                                                                               Field reports on grantees visits




                                     10% of participating farmers benefit     Public works reports
                                      from public works that contribute to     Field visits and reports
                                      improved productivity
Output   1.2 Farmers utilize         40,000 farmers acquire inputs on time  Field visits and reports                    Agro-inputs are available in the region
             quality agro-inputs,    50 % of the farmers that try to access  Annual surveys                             Financial services or other credit
             technical advice,        credit (or other financial instruments)  Project mid-term and final evaluation      organizations are active in the region and
             savings and credit       obtain it at normal market rates                                                     willing to make input loans at market
                                     90 % of participating farmers receive                                                interest rates
                                      specific technical recommendations to                                               Quality seed/planting material is available
                                      support them with the implementation                                                 in sufficient quantities. This includes locally
                                      of new technologies                                                                  selected planting material, newly
                                     50 % of the farmers use                                                              introduced commercial planting material
                                      selected/quality seed or planting                                                    and planting material produced by local
                                      material                                                                             SMEs
                                     2 Dutch agro input suppliers form
                                      supply relationships with project
                                      beneficiaries

                                     3 innovation grants will test innovations  Annual report lists grants
                                      in input markets including access to       Grant agreements and grantee reports
                                      finance                                    Field reports on grantees visits
                                     5 matching investment grants for seed
                                      systems development
Output   1.3 Farmers decrease  80% of participating farmers have              Field survey and reports                  Post-harvest equipment and commodities
             post-harvest losses   access to improved equipment and/or         Annual surveys                             secured from theft
             and improve post-     storage                                     Project mid-term and final evaluation     Farmers willing to work cooperatively
             harvest quality at   Reduction of at least 30 percent in



                                                                                                                                                                             41
                    farm level                post-harvest losses
                                             100 matching investment grants to      Annual report lists matching investment
                                              farmer and farmer groups for improved   grants
                                              equipment                              Grant agreements and grantee reports
                                                                                     Field reports on grantees visits

Project     2. Agribusiness clusters
Objective      create value by selling
               into national, East Africa
               regional and
               international/Dutch
               markets and
               agribusinesses (Market
               Pull
Output         2.1 ABC actors            80% of participating farmers are part of    Annual report lists clusters and their    Farmers willing to work cooperatively
                   undertake joint        a cluster                                    membership breakdown                      Ministry of Agriculture permits and
                   purchasing,           1,000 cluster members are service           M&E of AB clusters and cluster reports     encourages entrepreneurial enterprise
                   storage, and selling   providers (agro-input dealers, traders,     Field survey and reports                   development outside of existing national
                   power                  transporters, agribusinesses, etc.)         Market survey and analysis of crops        structures
                                         50 % of participating farmers that can       stored.                                   Turnover can be determined by factors
                                          potentially gain from storage and/or                                                    outside the control of the project, such as
                                          inventory credit have access to these                                                   sudden rise or drop in food prices
                                          tools                                                                                  Joint purchasing, storage, and selling
                                         50 % of farmers participate in joint                                                    activities can take the form of collective
                                          procurements of inputs and/or joint                                                     action by cluster members or be
                                          sales of outputs                                                                        undertaken by specialists (store managers,
                                                                                                                                  traders) depending on level of
                                             100 matching investment grants to          Annual report lists grants              entrepreneurship and presence of
                                              farmer and farmer groups for improved  Grant agreements and grantee reports        specialists. Each option comes with
                                              equipment and/or storage                   Field reports on grantees visits        opportunities and risks, and needs to be
                                             2 innovation grants will test innovations                                           carefully analyzed.
                                              in input and output markets                                                        Attribution of cluster performance may be
                                                                                                                                  subject to interventions from different
                                                                                                                                  programs and initiatives
                                                                                                                                 Financial services or other credit
                                                                                                                                  organizations are active in the region and
                                                                                                                                  willing to make loans at market interest
                                                                                                                                  rates
Output         2.2 ABC actors                Turnover of clusters increases 15% per  M&E of AB clusters and cluster reports    Financial services or other credit


                                                                                                                                                                                42
    undertake value         year and income of cluster actors        Field survey and reports                     organizations are active in the region and
    adding activities       increases by 50% over life of project                                                  willing to make loans at market interest
    and diversify their                                                                                            rates
    products               10 innovation grants will test new       Annual report lists grants                  Turnover can be determined by factors
                            markets and/or products                  Grant agreements and grantee reports         outside the control of the project, such as
                           10 matching investment grants to         Field reports on grantees visits             sudden rise or drop in food prices
                            cooperatives and SMEs for improved                                                    Value adding activities and product
                            value addition equipment                                                               diversification can take the form of
                                                                                                                   collective action by cluster members or be
                                                                                                                   undertaken by specialists (store managers,
                                                                                                                   traders) depending on level of
                                                                                                                   entrepreneurship and presence of
                                                                                                                   specialists. Each option comes with
                                                                                                                   opportunities and risks, and needs to be
                                                                                                                   carefully analyzed.
                                                                                                                  Attribution of cluster performance may be
                                                                                                                   subject to interventions from different
                                                                                                                   programs and initiatives
2.3 ABC actors develop  Four commodity-specific apex clusters       Annual participatory analysis of cluster    There are sufficient business opportunities
    sustainable           form                                        formation and survey of cluster              and operational constraints for lower-level
    relationships with   Clusters are fully functioning and          performance                                  clusters to come together to form apex-
    large national East   sustainable by the end of the project      M&E of AB clusters and cluster reports       level clusters
    Africa regional and   and rated as “mature” in an                Field survey and reports                    No policy or other impediments to disrupt
    international/Dutch   organizational development survey          Annual surveys and reports                   regional trade
    agribusinesses        (They have a diversified resource          Project mid-term and final evaluation       Trade relations remain strong and cordial
                          base, are self-sufficient in their own                                                   in EAC
                          future development and their work is                                                    The risk of linking to larger national,
                          respected by their peers).                                                               regional, international and Dutch-based
                         50 business partnerships with medium                                                     agribusinesses lies in the possible one-
                          to large agro-processors (including                                                      sided dependence of smallholders and
                          Dutch)                                                                                   SMEs.
                         2 Dutch agro-processors form supply                                                     Change in the business or operating
                          relationships with clusters                                                              environment may reduce the willingness of
                                                                                                                   Dutch companies to enter the market and
                           25 matching investment grants to         Annual report lists grants                   or continue operations
                            cooperatives and SMEs for improved       Grant agreements and grantee reports
                            market access equipment depending        Field reports on grantees visits
                            on the specific value chain or market
                            needs (e.g. post-harvest handling,
                            storage, quality control, packaging,



                                                                                                                                                                 43
                                  certification etc.)
Output   2.4 ABC actors adapt    80% of clusters review business plans  M&E of AB clusters and cluster reports    Some events may well be beyond the
             to and lobby for     annually                                 Field survey and reports                 capacity of farmers and SMEs to respond
             reforms in the      Cluster revenue increases by 15% for  Annual surveys and reports                 Willingness of GoU to address
             business             each year of project participation                                                 agribusiness constraints
             environment         Number of key industry stakeholders                                               No political interference in independent
                                  from government and private sector                                                 entrepreneurial development
                                  participate in cluster meetings to
                                  resolve agribusiness constraints
                                 Number of issues resolved by the
                                  clusters and/or funneled up to national
                                  stakeholder networks if beyond the
                                  reach of clusters and/or the project




                                                                                                                                                                44
2.6          Technical Activities/Outputs by Commodity
Objective 1: Smallholder farmers improve production, productivity and quality in commodity-specific cropping systems
             (Production Push)
Technical Outputs and Activities by Commodity

Outputs                 Common Activities (across the copping systems):                                           Notes by commodity:
1.1 Farmers              Establish demos for CSFSs                                                               Irish Potatoes:
    sustainably          Develop extension materials and train extension officers and BSS organizations           Demos may be established with preferred rotation crop(s)
    increase yields       including from government and partner staff                                             Cassava:
    and decrease         Organize local soil testing and amend CSFS recommendations accordingly                    Demos may be established with preferred rotation crops
    production costs


1.2 Farmers utilize      Update inventory of agro-dealers and encourage agro-dealer development in               Irish Potatoes:
    quality agro-         underserved areas. Facilitate linkages with farmer groups                                Gear up seed potato (aeroponics) as early as possible; include HZPC
    inputs, technical    Increase business and technical capacity of agro-dealers                                 Develop small packaging of improved seed potato for farmer testing
    advice, savings      Make an inventory of seed/planting material companies as well as of planting material   Cassava:
    and credit            multipliers (private and cooperative enterprises) and facilitate linkages to farmer      Multiply CBSD-free materials during inception phase
                          groups                                                                                   Trainings related to CBSD control
                         Support and promote planting material agribusiness clusters                              Train on staggered production for consistent industrial supply
                         Encourage formation of village savings and loan association (SACCOS) and facilitate      Rice:
                          linkages between finance/credit institutions and farmer groups                           Will involve machinery to manufacture fertilizer briquettes for deep
                         Strengthen farmer access to extension services from input suppliers, project partners       placement
                          and project staff
1.3 Farmers              Develop crop-specific storage and post-harvest technologies, in collaboration with      Irish Potatoes:
    decrease post-        relevant knowledge institutes, extension services, service providers and equipment       Support seed and ware potato storage facilities
    harvest losses        suppliers/manufacturers                                                                 Cassava:
    and improve          Develop extension and training materials addressing technical issues, cost-benefit       Train on appropriate handling of cassava planting material
    post-harvest          analysis and hurdles for the adoption of new technologies                                Rice:
    quality at farm      Assist individual farmers and farmer groups in developing applications to Matching       Drying technologies, encourage links to quality rice mills to increase
    level                 Investment Fund for improvements in post-harvest handling equipment                         value addition




                                                                                                                                                                                             45
Objective 2: Agribusiness clusters create value by selling into national, E.Africa regional and international/Dutch markets
             and agribusinesses (Market Pull)
Outputs               Common Activities (across the copping systems):                                               Notes by commodity:
2.1 ABC actors           Initiate process of cluster formation at farmer group level though agribusiness coaches   Irish Potatoes:
    undertake joint      Identify champions from value chain operators to promote new agribusiness clusters         Investigate Hilly and Mountainous Areas Management as basis for
    purchasing,          Undertake inventory and assessment of BSSs                                                    cluster formation
    storage, and         Undertake capacity building of agribusiness coaches and BSSs following training plan       Encourage group storage of seed and ware potatoes
    selling power        Assist clusters to develop action plan based on business ideas and cluster goals and      Cassava:
                          objectives. Support clusters in implementation                                             In collaboration with DADTCO; possible links to large farms for
                         Develop cost-sharing mechanism for BSS services, transitioning to full payment of BSSs        multiplication of clean planting materials
                          by clusters by the end of the project                                                      Explore opportunities for bulking chips, particularly for export
                         Link local agro-input shops to clusters                                                    Rice:
                         Train ABC actors for collective procurement, contract negotiation and management           Develop clusters around both large rice schemes and with farmers not
                         Develop crop specific storage plans and options for warehouse receipt and inventory           attached to schemes
                          credit systems; train clusters on management as required                                   Best opportunity for inventory credit/warehouse receipt system. Can be
                         Create linkages to private sector operators of inventory credit/WRSs                          linked to traders and financial service providers
                         Support the development of cluster-specific finance strategies, loan requests and
                          business plans and facilitate linkages with banks, MFIs and credit-guarantee schemes
                         Facilitate integration of financial institutions into clusters
2.2 ABC actors         Screen business ideas and ABC action plans for ideas for product development and            Irish Potatoes:
    undertake           diversification, including by-products, sorting and grading, packaging, etc.                 Grading, sorting, packaging, and varietal selection targeted to
    value adding       Support business planning for processing activities and for product development                 supermarkets; varieties targeted to chips market
    activities and      activities                                                                                  Cassava:
    diversify their    Support quality management and food safety strategy development including                    Potential packaging of HQCF for urban markets; compliance with
    products            certification and traceability                                                                  government food safety/quality regulations; innovation grants to
                       Provide matching investment grants for new processing machinery and equipment                   explore additional cassava markets (animal feed, starch)
                       Provide innovation grants to test new markets and/or products                                Rice:
                                                                                                                     Branding and packaging a probable IGA, linked to premium varieties
2.3 ABC actors       Once the business opportunities for apex clusters are present, initiate process of apex       Irish Potatoes:
    develop           cluster formation, with farmer representatives from lower-level clusters and apex-level        Apex cluster will include farmers in Kabale and Kisoro districts
    sustainable       ABC members (e.g. national agro-dealers/importers and traders; regional, national,             Explore opportunities for frozen chips and packaged crisps
    relationships     international/Dutch agro-processors, WRS managers, large BSSs, institutions/research              manufacturers
    with large        organizations, provincial/national government, etc.)                                          Cassava:
    national, East  Identify champions (likely lead agribusiness firms), as potential promoters of apex             DADTCO as key market outlet for production of cassava cake and
    Africa regional    clusters                                                                                         HQCF
    and              Assist clusters to develop action plan based on business ideas and cluster goals and           Explore potential for cassava chips and links with feed industry


                                                                                                                                                                                               46
   international/   objectives. Support clusters in implementation                                                    Rice:
   Dutch           Train ABC actors on contract negotiation and management and on lead firm                          High quality rice millers are essential actors
   agribusinesses   management, specifically on the product and delivery requirement of large formal,                 Establish linkages with Tilda, Pearl Rice
                    quality- and quantity-sensitive agribusinesses
                   Make an inventory of larger agribusiness enterprises with potential to source from
                    farmers
                   Develop strategies for contract farming
                   Broker relationships between agro-enterprises and cluster actors
                   Work together with AgriProFocus and the agricultural attaché in Dutch Embassy to
                    identify Dutch companies
                   Make use of Dutch private sector development instruments to promote linkages
2.4 ABC actors        Work with ABCs to develop risk mitigation and management strategies                           Possible Policy issues:
    adapt to and      Provide training on competitive intelligence, cost-benefit analysis and risk                  Irish Potatoes:
    lobby for          analysis/management                                                                            Keep new varieties in the certification pipeline to respond to consumer
    reforms in the    Identify market information systems and gaps. Link ABC actors to required market                  preferences
    business           information                                                                                    Regulations relating to certification of regionally/internationally
    environment       Provide training to ABCs on business management focusing on specific cluster needs                available planting materials; responding to price fluctuations
                      Train ABCs with local and national lobbying and advocacy skills                               Cassava:
                      Provide innovation grants                                                                      Investigate alternative markets outside of HQCF and beer
                      Facilitate district, national or regional events on strategic issues, in collaboration with    Regulations related to CBSD and sales/distribution of cuttings
                       relevant stakeholders                                                                          Rice:
                      Facilitate clusters to work with authorities to reduce bottlenecks and decrease                Consider aromatic/ other high value rice varieties; other industrial uses
                       transaction costs                                                                                 (beer)
                      Ensure that critical agribusiness constraints are addressed or filtered up to national         Use of uncertified rice seeds from region
                       stakeholder networks for follow-up if beyond the reach of clusters and/or project




                                                                                                                                                                                                   47
3. Performance Monitoring, Evaluation and
Learning
3.1      CATALIST-Uganda Monitoring and Evaluation
         System
In its proposal for CATALIST-Uganda, IFDC will to build upon the lessons from CATALIST, as well
as best practices from the development sector and its own experience. The characteristics of the
proposed system are:
A clear conceptual framework linking activities, outputs and impacts for different types of project
beneficiaries (at individual and organizational level), clusters, and commodity value chains. A project
log frame is presented in section 2.5, while a draft Performance Assessment Matrix is presented as
Annex 2. These will be finalized during the inception phase, at the conclusion of which a performance
monitoring and evaluation plan will be submitted that finalizes the conceptual framework and
indicators, setting targets and specifying data collection, analysis and reporting systems.
Methodological rigor. The system will use a comprehensive range of value chain indicators, reaching
beyond producers to processors, traders, BSSs, MFIs and consumers. The system will balance
credibility with practicality to achieve plausible attribution of project impact. It must credibly
demonstrate the project’s contribution to value chain development, and validate the relationship
between those changes and food security. It must also generate useful information for project decision-
making within the practical limits of project resources. The system must generate robust information on
the direct changes resulting from its intervention.
Learning. Based on the similar approach and goals of the CATALIST-2 and CATALIST-Uganda
projects, the projects will share technical staff to enable learning and cross-pollination of ideas. They
will also hold 1-2 joint meetings per year, timed to coincide with work plan development and/or review
cycles of the two projects.
In addition, each year CATALIST-Uganda will organize a series of case studies to analyze in more
depth issues, such as the extent to which the project supports core capabilities at cluster and chain
levels; how these capabilities contribute to change within and beyond the targeted cluster and chain
(e.g., multiplier effects); and how these impact upon rural livelihoods and food security. CATALIST-
Uganda may sub-contract case studies to independent research institutes to minimize conflicts of
interest.
To meet the needs of different information users, IFDC proposes three types of M&E activities carried
out by different entities:
   An IFDC-led, real-time M&E system for learning by project managers, IFDC and its donor. IFDC
    is currently developing a cloud-based M&E system for the CATALIST-2 Project that will be
    utilized in CATALIST-Uganda if appropriate. Some more time consuming field studies may be
    contracted out to University students.
   Independently contracted case studies.
   Independently contracted M&E to be undertaken through the donor.

IFDC-Led Performance Monitoring and Evaluation
IFDC will monitor, compile and publish data related to project outputs as indicators of project
effectiveness. IFDC will also evaluate project implementation as measured against the project's scope of
work, deliverables, personnel requirements, etc. Tasks include monitoring activity implementation and


                                                                                                      48
partner deliverables against the terms laid out in the sub-grant agreements, as well as the substantial
effort to collect data needed to monitor and evaluate the project.
IFDC will utilize the following for its monitoring, evaluation and learning activities:
   Cluster-level M&E facilitators (not IFDC staff but recipients of BSS grants). Their role in support
    of IFDC-led M&E is to administer data sheets, conduct preliminary analysis and collect data to
    send to the project M&E team. Their role in support of cluster M&E is to incorporate such data
    collection and analysis in the cluster agribusiness plans, and to work with cluster members to
    ensure the data are used to support strategic and operational planning.
   Project M&E Advisor. The M&E Advisor will be responsible for coordinating the M&E
    activities.
   External support from IFDC’s new M&E Unit. As part of an institute-wide initiative to
    strengthen its performance M&E processes, IFDC has created M&E units within its two Africa-
    based divisions and at its headquarters. These units will support the CATALIST-Uganda M&E
    activities.
   Periodic external consultants and students. In addition to conducting various data tasks, expert
    consultants and students can play an important role in generating and transmitting learning from
    project experiences.
   Independent research or consulting firms.

Independently-Contracted Studies and Mid-Term and Impact Evaluations
With case studies (approximately three each year), CATALIST-Uganda aims to deepen understanding
of the dynamics of cluster activities and value chain development. The case studies will focus on both
the results and the process of individual and collective action at these levels, and will integrate the
perspectives of the different stakeholders involved.
The mid-term and impact evaluation provides an analysis of whether project objectives (outputs and
impacts) were achieved and can be attributed to project operations. The second component of any
impact assessment is to demonstrate that observed changes would not have occurred naturally in the
absence of project interventions. Based on discussions with EKN, these evaluations may be
subcontracted by the donor to the International Institute of Tropical Agriculture (IITA) and/or
International Food Policy Research Institute (IFPRI).



3.2       Communication
Communication aims to sensitize, inform and connect people that support the project’s goal and
objectives. The communication strategy, which will be developed during the inception phase, will
provide a framework that brings together the messages, the outreach to different audiences, the media to
be used (written, audiovisual and online materials) and the distribution frequency. Communication will
document and share experiences and lessons learned, tailored to different audiences including policy
makers, farmers’ organizations, business and trade organizations, network of development
professionals, the donor and the development sector, through a variety of media including radio, print,
television, internet and mobile technology (SMS).



3.3       Reporting
Based on discussions with the donor, the following reports will be submitted:
    1. Inception report and first annual work plan to be submitted at the end of January 2013 for
       the first full calendar year.

                                                                                                     49
   2. Annual reports submitted at the end of January for the coming calendar year (2014, 2015,
      2016).
   3. Budget and forecast requests to be submitted semi-annually (in December and June), to
      include the budget request for operating funds for the coming 6 months and a forecast for the
      following 6 month period.
   4. Progress reports both narrative and financial due by the end of March for the previous calendar
      year.
   5. Audit reports due together with the progress reports by the end of March for the previous
      calendar year.
   6. Final project report due three months following the end of the project.



3.4      Cross-Cutting Themes
Gender & Youth
Gender and youth aspects will be given attention from the beginning of the project, starting with the
inception phase during which gender and youth will be a key point of analysis in the value chain studies.
Experience has shown the importance of paying attention to these two groups in the division of labor on
the farm, in roles and responsibilities in community organization, and in fair access to project benefits.
Project staff will also be sensitized to give both issues proactive attention, to avoid automatically
creating a male bias. Particularly given Uganda’s high population growth rate, youth need to be
involved in agricultural commercialization and agribusinesses.
Project activities will be designed to involve all family members in all agricultural activities including
planning, farming and marketing. All project monitoring and reporting will be gender- and age-group
disaggregated. The case studies will pay attention to these issues as well, and gender and youth will be
included in the Terms of Reference for the external, mid-term, and final evaluation of the project.

Environment
The environment is a key consideration in the project’s methodology. All project staff, beneficiaries,
partners and stakeholders will be sensitized to environmental issues. An environmental assessment will
be undertaken during the inception phase as part of the project’s value chain analyses, and to meet the
requirements of EKN. All program activities and their impacts will be designed to be environmentally-
sustainable
By its very nature, CSFS is designed to be environmentally sustainable, advocating synergies of mineral
nutrients, sound soil organic matter management, and crop protection products so that smallholder
farmers can commercialize their farming systems, while at the same time improving soil health.
Additionally, as part of the project’s public works component, soil stabilization through the planting of
trees and fodder grasses will be advocated.

3.5      Risk Analysis
IFDC is aware that some risks to project implementation, arising out of the political, social and
environmental context in Uganda, may be beyond IFDC’s or the project’s control. Additional risk
factors may arise from project implementation, which IFDC and the CATALIST-Uganda team is able to
influence. A detailed risk analysis including mitigation measures is presented below.



                                                                                                       50
CATALIST-Uganda Risk Analysis

                          Probability Impact of      Mitigation Measures                         Implementation
Risk                      of          Risk                                                       Timeframe
                          Occurrence
Contextual Risk
Political insecurity in    Medium     Medium - high  CATALIST-Uganda will stay abreast of        Continuous
Uganda and                                            political developments through EKN in       Annual updates of
neighboring countries,                                Uganda and neighboring countries and         Security Audit and
particularly around                                   its own networks                             Emergency Action
elections affecting:                                 Promote East Africa- or Great Lakes-         Plan
 General political and                               wide strategy for inputs and outputs
   economic operating                                 including alternative routes through
   climate in Uganda                                  Tanzania
 Access to input (fuel                              As political insecurity can be sporadic,
   and fertilizer supplies                            and unpredictable, the appropriate
   through Kenya) and                                 course of action will be decided as
   output markets in                                  events unfold with the Netherlands
   neighboring countries                              Embassy and IFDC regional and HQ
                                                      staff
                                                     A Security Audit and Emergency Action
                                                      Plan will be developed at the inception
                                                      phase and updated annually
Food insecurity due to:   Medium      Medium - high  CATALIST-Uganda will stay abreast of  Continuous
 Droughts and floods                                 developments through EKN and its own
 Global ‘food crisis’                                networks
                                                     Adoption of CSFS in itself can partly
                                                      ameliorate effects of drought and floods
                                                      as it mitigates the risk of complete crop
                                                      failure and environmental degredation
                                                     As the timing and effects of food
                                                      insecurity can be unpredictable and
                                                      wide-ranging, the appropriate course of
                                                      action will be decided as events unfold
                                                     High food prices are likely to have a
                                                      positive effect on project beneficiaries
                                                      (net food producers), though the
                                                      economic and social effects in urban
                                                      areas (net food consumers) will be
                                                      unpredictable
                                                     As a net food exporter, Uganda is well
                                                      positioned in the region, based on the
                                                      assumption that open borders and free
                                                      flow of food commodities across borders
                                                      is maintained and no food commodity
                                                      export-bans are introduced
Plant disease             Medium      Medium - high  IFDC will stay abreast of potential and  At part of CSFS
pandemics                                             recurring plant disease pandemics (such intervention package
                                                      as cassava brown streak virus, various  Continuous
                                                      potato diseases, and rice diseases such
                                                      as yellow mottle virus) through close
                                                      communication with Ugandan and
                                                      international research institutes and
                                                      plant protection agencies
                                                     Standard mitigation measures are part
                                                      of the CSFS intervention package that
                                                      incorporates plant health through
                                                      chemical and natural means
                                                     Specific mitigation measures will be


                                                                                                                        51
                                                  developed in collaboration with research
                                                  institutes and plant protection agencies
                                                  once new/specific threats are identified
Government               Medium   Medium - high  CATALIST-Uganda will stay abreast of  Continuous
intervention in                                   developments through EKN and its own
agricultural markets                              networks
from:                                            As the timing and effects of government
 Market unfriendly                               intervention can be unpredictable and
   regulation                                     wide-ranging, the appropriate course of
 Price controls                                  action will be decided as events unfold
 Subsidies                                      CATALIST-Uganda participates in policy
 Free distribution of                            and stakeholder networks through
   inputs                                         project beneficiaries and partners to
 Rent-seeking and                                advocate for market-friendly policies and
   favoritism                                     regulations
Changes in the overall Medium     Medium         CATALIST-Uganda participates in policy  Continuous
investment climate or in                          and stakeholder networks through          During the
the investment climate                            project beneficiaries and partners to      development of
affecting individual                              advocate for market-friendly policies and cluster risk mitigation
actors/investors                                  regulations                                strategies
                                                 CATATIST-Uganda will facilitate the
                                                  development of resilient ABCs including
                                                  the development of risk-mitigating
                                                  strategies to enable ABCs to withstand
                                                  a reasonable amount of external shocks
                                                 Project activities that focus on
                                                  decreasing production costs, bulking of
                                                  inputs/outputs, etc. increase cluster
                                                  resilience
Economic insecurity      Low      High           CATALIST-Uganda will stay abreast of  Continuous
 Risk of macro-                                  developments through EKN and its own
  economic instability                            networks
                                                 As the timing and effects of macro-
                                                  economic instability can be
                                                  unpredictable and wide-ranging, the
                                                  appropriate course of action will be
                                                  decided as events unfold
Implementation Risk
Impact of large           High    Low            Monitoring by project staff and             Continuous
increases in agricultural                         stakeholders of the social and economic
productivity                                      impacts in beneficiary communities
                                                  resulting from significant increases in
                                                  agricultural productivity and income
                                                 Promotion of local, regional and
                                                  international markets will smooth out
                                                  price fluctuations as will the use of
                                                  storage facilities to act as buffer stocks
                                                  to temporarily store away excess
                                                  capacity.
Corruption/Fraud         Low      Medium –       Robust systems including financial          Comprehensive
                                  high            management, procurement and human            systems established
                                                  resources                                    at inception phase
                                                 Training of staff on systems and             and verified through
                                                  procedures including whistle-blowing         an independent
                                                  policy                                       systems audit
                                                 Internal audits and controls based on       Continuous internal
                                                  industry and IFDC best practices             audits and controls
                                                 External Monitoring from IFDC regional       and training of staff


                                                                                                                       52
                                                and HQ staff                                  Annual financial audit
                                               Real-time financial monitoring through
                                                IFDC-wide implementation of new
                                                financial software

Methodological Risk      Low   Medium - high  Robust implementation methodology         Continuous formal
                                               and logical framework grounded in          and informal
                                               industry and IFDC best practices across    monitoring by and
                                               multiple projects                          reporting to project
                                              Inclusive work planning process to         stakeholders,
                                               inform on optimal implementation           National Advisory
                                               strategy to achieve desired outputs and    Committee, IFDC
                                               goals                                      regional and HQ staff
                                              CATALIST-Uganda National Advisory          and Donor
                                               Committee drawn from a cross-section
                                               of project stakeholders to advise on and
                                               provide feedback to project
                                               implementation
                                              Regular monitoring by and reporting to
                                               IFDC regional and HQ staff
                                              Regular monitoring by and reporting to
                                               EKN and DGIS
Political Interference   Low   Medium          Transparent rules and procedures              Comprehensive
                                                including procurement and human                systems established
                                                resources                                      at inception phase
                                               Inclusive work planning process to set         and verified through
                                                the goals for project implementation and       an independent
                                                minimize political interference through        systems audit
                                                deviations from the work plan. Work           Continuous
                                                Planning will including a wide range of        consultation with
                                                project stakeholders and partners from         stakeholders
                                                government and the private sector that        Semi-annual meeting
                                                will inform project implementation             of National Advisory
                                                objectives, outputs activities, inputs and     Committee
                                                outputs                                       Annual Work
                                               CATALIST-Uganda National Advisory              Planning Process
                                                Committee drawn from a cross-section
                                                of project stakeholders to advise on and
                                                provide feedback to project
                                                implementation
                                               Consultations with EKN on undue
                                                interference and determining
                                                appropriate course of action




                                                                                                                        53
4. Project Staffing and Organization
4.1       IFDC Core Team
The CATALIST-Uganda project has a lean staffing structure, leveraging partners, external experts, local
service providers and regional technical staff from the CATALIST-2 project based in Rwanda to
complement core staff. Together with the IFDC Nairobi-based East Africa office and in-country
partners, a technical support structure will be created.
The project will be supported by a project head office in Kampala housing the COP and technical staff
that will be shared across the field offices. Three small field offices will be based in the project regions
(North, East and Southwest) to support local field activities.

International Staff based at the Project Head Office in Kampala
   Chief of Party - experienced agronomist/agribusiness advisor (to be named)

Regional Advisors based in Kigali (1-2 months per year)
   Regional Cluster Advisor - Udo Rudiger
   Regional Value Chain Advisor – To be determined
   Regional Finance Advisor – To be determined
   Regional Communication Advisor – Alice Van der Elstraeten

National Technical Staff and Support Staff based in Kampala
   Finance Manager
   Grants and Administration Manager
   Cluster Development & Capacity Development Specialist
   Agribusiness Specialist
   Monitoring & Evaluation and Innovations Advisor
   Communications Specialist
   Office Assistant
   Accounts Assistant
   Grants Assistant
   Office Support Staff (drivers, janitors)

Field Staff based in each of the Field Offices (North, Eastern and Southwestern)
   Agronomist
   Cluster & Agribusiness Specialist (2x to be shared across the three field offices)
   Office/Accounts Assistant
   Office Support Staff (drivers, janitors)



4.2       Management Structure
Overall project management will be in the hands of the Kampala-based Chief of Party (COP). The COP
is responsible for communication with EKN in Kampala, external communications, work planning and
reporting.



                                                                                                         54
A National Advisory Committee will be a key contact for the COP and the CATALIST-Uganda Team.
This advisory committee will be comprised of key stakeholders in Uganda to provide input to the
CATALIST-Uganda Team in an advisory capacity and is expected to meet semi-annually. Members
will be drawn from project beneficiaries, partners, the private sector, development partners and
stakeholders, the donor and the Government of Uganda.
As soon as the COP has arrived on post of duty, IFDC will organize a management development
support mission to assist the COP to work out the final organizational structure of the project which will
lead into the start of the inception phase.
The COP reports directly to the IFDC Program Leader - Natural Resource Management based in
Nairobi, Kenya. The program leader provides strategic guidance to the COP and ensures that the quality
of the deliverables meets the contractual obligations between IFDC and the donor. The IFDC Division
Office in Nairobi will provide support on administration and finance, including annual internal audits.
During COP absences, the Deputy Chief of Party will be appointed from among the senior staff.
Regional Cluster Advisor (1-2 months/year, based in Kigali). This is a shared regional position. The
Regional Cluster Advisor will oversee the proper implementation of cluster development including
capacity building, liaising with the Ugandan Cluster Development and Capacity Building Specialist.
Regional Value Chain Advisor (1-2 months/year, based in Kigali). This is a shared regional position.
The Regional Value Chain Advisor will oversee the timely and appropriate support to value chain
development both in the context of clusters as well as the inclusion of larger enterprises/agribusinesses
in the project. This position will liaise with the Ugandan Agribusiness Specialist.
Regional Finance Advisor (1-2 months/year, based in Kigali). This is a shared regional position. The
Regional Finance Advisor plays a key role in the identification and/or development of financial
instruments for agriculture and agribusiness development. This position will liaise with the Ugandan
Agribusiness Specialist.

Regional Communication Advisor (1-2 months/year, based in Kigali). This is a shared regional
position. The Regional Communication Advisor will be responsible for strategic communication
planning and delivery, liaising with the Ugandan Communications Specialist, the Nairobi-based
Communications Coordinator and headquarters communications staff.
Finance Manager. This person will be responsible for all financial and accounting issues. S/he will be
supported an Accounts Assistant.
Grants and Administration Manager. This person will be responsible for developing a grant making
and management system that is consistent with IFDC’s and DGIS’ policies. S/he will be responsible for
monitoring grant implementation from award to utilization and closing/evaluation. S/he is also
responsible for all administrative issues including procurement, HR, IT, equipment and facilities. S/he
will be supported an Office Assistant, and a Grants Assistant.
Agribusiness Advisor will be responsible for working with the Regional Value Chain, Finance and
Cluster Advisors in translating value chain opportunities into viable business opportunities for the actors
involved. S/he will be liaise with larger companies (including national and Dutch agribusinesses) and
facilitate their contacts with cluster actors. S/he will also be instrumental in the identification of
financial service providers and work with them to develop financial instruments for the various actors.
Lastly, the Agribusiness Advisor will also be the focal point on issues related to access to and utilization
of improved inputs. Together with the Cluster Development and Capacity Building Specialist, the
Agribusiness Advisor will be responsible for overall program quality and supporting the field teams.
S/he will be supported by two Cluster and Agribusiness Specialists based in the regional offices with
responsibility for one of more of the cropping systems.




                                                                                                         55
CATALIST-Uganda Organizational Chart

                                                    CATALIST-UgandaOrganizational Chart
                       IFDC                                                                               Royal
          • NRM Team Leader                                              Chief of Party            Netherlands Embassy
             • M&E
             • Agribusiness                                                                        Advisory Committee
             • Communications
             • Finance and administration                                                                                    Project & Consortium
                                                                                                                                   Partners

              Regional Technical Staff (25%)                                      Finance            Grants and Administration
          •   Regional Cluster Advisor,                                           Manager                    Manager
          •   Regional Communication Advisor
          •   Regional Value Chain Advisor
          •   Regional Finance Advisor                                            Accounts     Office           Grants
                                                                                                                             Drivers x 4
                                                                                  Assistant   Assistant        Assistant

           M&E & Innovation                Communications
               Advisor                        Specialist

          Cluster Development &                                                                                   Northern Uganda Regional Office
                                                 Agribusiness Advisor
         Capacity Building Specialist

                                                                                                                           Agronomist
               Southwest Uganda Regional Office
                                                                                                                   Office/Account
                                      Cluster&                                                                                         Driver
               Agronomist                                                                                             Assistant
                                 Agribusiness Spec.

              Office/Account                                      Agribusiness                              Eastern Uganda Regional Office
                                        Driver                      Coaches
                 Assistant
                                                                                                                                  Cluster&
                                                                                                           Agronomist
                                                                    Clusters         BSSs                                    Agribusiness Spec.

                                                                    Farmer
                                                                      Farmer
                                                                  FarmerFarmer                            Office/Account
                                                                                                                                    Driver
                                                                    Groups
                                                                      Groups
                                                                  Groups Groups                              Assistant




Cluster Development and Capacity Building Specialist will be responsible for working with the
Regional Value Chain, Finance and Cluster Advisors to oversee the proper implementation of the
cluster development strategy and will actively engage with the Agribusiness Coaches to strengthen
clusters. S/he will be responsible for the identification of national and local service providers who can
provide training services as well as all capacity building and training issues, particularly related to the
strengthening of BSSs. S/he is also responsible for cluster policy issues on matters related to the
enabling environment. Together with the Agribusiness Advisor, the Cluster Development and Capacity
Building Specialist will be responsible for overall program quality and supporting the field teams. S/he
will be supported by two Cluster and Agribusiness Specialists based in the regional offices with
responsibility for one of more of the cropping systems
Monitoring & Evaluation and Innovations Coordinator. The M&E and Innovations Coordinator
will be supported by the Nairobi-based M&E team in developing and implementing a robust monitoring
and evaluation system. The M&E officer will work through local consultants and will work with
national knowledge institutes for development of an in-depth M&E system. Working in conjunction
with the Grants and Administration Manager, the M&E and Innovations Coordinator will be responsible
for implementation of the innovation grants from award to utilization and closing/evaluation.
Communication Specialist. The Kampala-based Communication Specialist will be responsible for
strategic communication planning and delivery in conjunction with the Regional Communications
Advisor. S/he will be supported by the Nairobi-based Communications Coordinator and by headquarters
communications staff.
Agronomist x 3. These staff members will be based in the field offices with primary responsibility for
CSFS technical aspects for one or more cropping system. Through direct contacts with the Agro-
Business Cluster Development coaches, this person will be in contact with the farmers at the cluster
level, and will play an important role in the identification of both potentials and constraints. The
agronomists will also be responsible for the agro-input development, usage and access at farmer group
and cluster level.

                                                                                                                                                    56
5. Indicative Budget
The proposed budget for CATALIST-Uganda requested as a grant from DGIS is €15 million over a
period of four years.

Below is an indicative draft budget, to be finalized in submission of the final proposal.


CATALIST-Uganda Indicative Budget

                                INTERNATIONAL FERTILIZER DEVELOPMENT CENTER
                                             CATALIST - UGANDA
                                          INDICATIVE EURO BUDGET



                                                                                                        EURO % TOTAL
                COST CATEGORY                          YR 1        YR 2         YR 3        YR 4       TOTAL BUDGET

STAFF COMPENSATION AND BENEFITS                     843,400      953,000      987,100     959,000    3,742,500   25%


TRAVEL & TRANSPORTATION                             151,500      150,300      152,700     113,900      568,400   4%


IN-COUNTRY DEVELOPMENT ACTIVITIES                  1,221,300   1,063,200      841,200     428,000    3,553,700   24%


EQUIPMENT & PROJECT ASSETS                          369,800       17,600       45,200      19,300      451,900   3%


OFFICE OPERATIONS                                   193,600      244,000      256,100     250,500      944,200   6%


CONTRACTUAL                                         690,000    1,342,000   1,344,100      696,400    4,072,500   27%


TOTAL DIRECT COST                                  3,469,600   3,770,100   3,626,400    2,467,100   13,333,200

INDIRECT COSTS @ 7.5%                               260,200      282,800      272,000     185,000    1,000,000   7%


CONTINGENCY @ 5%                                    173,500      188,500      181,300     123,500      666,800    4%


TOTAL PROGRAM                                     3,903,300    4,241,400   4,079,700    2,775,600   15,000,000   100%


                                                   3,903,300   4,241,400   4,079,700    2,775,600   14,999,900
                                                           0           0           0            0         -100




                                                                                                                        57
Annexes
Annex 1. Draft Inception Phase Work Plan
CATALIST-Uganda Draft Inception Phase Work Plan
                                        Month/Week:         May 2012           June 2012           July 2012           August 2012           September 2012           October 2012
# Activities                                            1    2   3     4   1    2    3     4   1    2    3     4   1     2    3      4   1      2     3       4   1     2     3      4
Start Up & Management Activities
 1 COP and start-up team arrival
 2 Hiring of program staff
 3 Opening of Kampala office
 4 Opening of field offices
 5 Project launch event
 6 Establishment of Project Advisory Committee
Finance and Administration
   Financial and administrative systems (incl. HR and
 7 procurement) implemented
 8 Security Audit and Emergency Action Plan
   Audit by professional audit firm on behalf of the
 9 Royal Netherlands Embassy
10 Submission of budget and forecast requests
Market Appraisal and Value Chain Mapping
   Value chain analysis and mapping, including
   analysis of cross-cutting issues such as gender,
11 youth and environment
   Rapid market appraisal of national, regional and
12 international/Dutch agribusinesses & markets
   Analysis of the political economy risks and
13 implications on project implementation
14 Environmental Assessment
15 Input and seed systems/planting material analysis
   Validation with industry stakeholders and project
   partners culminating in the value chain
16 implementation strategy for each commodity




                                                                                                                                                                                         58
                                            Month/Week:        May 2012           June 2012           July 2012           August 2012           September 2012           October 2012
# Activities                                               1    2   3     4   1    2    3     4   1    2    3     4   1     2    3      4   1      2     3       4   1     2     3      4
 Cropping Systems & Seed System Development
    Mapping of cropping systems and demonstration
17 treatments required
18 Analysis of soil fertility and acidity
19 Seed/planting material development
Work Plan Development
   Finalization of commodities, cropping systems,
   project partners and beneficiaries identified during
20 proposal development and scoping missions
   Annual work plan for Year 1 prepared, including
   updating of logical framework and activities for
21 each cropping system
22 Establishment of project communications plan
   Establishment of project sustainability and exit
23 strategy
24 Updating of risk analysis and mitigating measures

   Establishment of project baselines and finalization
25 of monitoring and evaluation framework and plan
26 Budget realignment (if needed)
27 Preparation of Inception Report
   Working modalities established with institutional
28 partners and implementation organizations
Project Instruments
   Selection of initial rural public works in support of
29 agricultural intensification and market access
   Establishing modalities and rules and procedures
   for Matching Investment Fund and Innovation
30 Grants




                                                                                                                                                                                            59
Annex 2. Draft Performance Assessment Matrix
The table below presents draft outcome and output indicators, and targets for the life of project. These will be finalized during the inception phase based on
information gathered during the value chain assessments, from the baseline study to be undertaken and in discussions with EKN and stakeholders. IFDC is
currently standardizing and centralizing its M&E system across projects, and rolling out this new system with CATALIST-2 as the first pilot. During the
inception phase, the M&E framework and approach will further be harmonized with that of CATALIST-2 and the new IFDC system.

Draft Performance Assessment Matrix
Indicators                                        Unit            Baseline   Target Year   Target Year   Target Year   Target Year 4   Comments
                                                                             1             2             3
Outcome indicators8:
 % Change in commodity related income of         % change        0          10%           25%           40%           50%
  farmer households involved in AB clusters
 % Change in commodity related yields            % change        0          25%           100%          150%          200%            Cumulative
 Tons of cereal equivalents produced by          Tons of         TBD        0             5,000         55,000        165,000         Production will scale up over the 4 years to produce an
  participating farmers                           cereal                                                                               total marketable surplus of 225,000 tons of cereal
                                                  equivalents                                                                          equivalents.
 Volume of Uganda trade to South Sudan and       Tons of         TBD                                                                  Targets to be established once the baseline data is
  Rwanda in targeted commodities                  volumes                                                                              collected
                                                  traded
 Returns per labor day                           Euros           TBD                                                                  Targets to be established once the baseline data is
                                                                                                                                       collected
 % Participating farmers correctly applying at   % of            TBD        25%           40%           60%           80%
  least 2 essential elements of the CSFS          participating
  recommendations                                 farmers
 % Farmers acquiring inputs on time              % of            TBD        25%           40%           60%           80%
                                                  participating
                                                  farmers
 % Reduction in production costs (relative to    % reduction     0                                                                    Targets to be established once the value chain



8
 Defined as “concrete improvements in the lives of people or the environment. They are outside the control of the implementing agency as they often require some kind of
behavioral changes of beneficiaries.”, “Handreiking Resultaatketen,” DGIS, pg.1

                                                                                                                                                                                             60
    farm gate price)                                                                                                             assessments have been completed
 % Reduction in post-harvest loses                  % reduction     0     10%        20%           25%           30%
 % Participating farmers who try to access          % of           0      20%        30%           40%           50%
  credit (or other financial instruments) are able   participating
  to obtain it at normal market rates                farmers trying
                                                     to access
                                                     credit
 % Farmers undertaking joint purchasing,            % of            TBD   10%        30%           50%           80%
  storage or selling                                 participating
                                                     farmers
 % Clusters adding value through processing         % clusters      TBD   10%        20%           40%           60%
 Number of Dutch agribusineses supplying or         # of Dutch    0       1          3             4             4              Cumulative
  buying from project clusters                       agribusineses
 Number of business partnerships with medium # of business TBD            10         25            40            50             Cumulative
  to large agro-processors (including Dutch)  partnerships
 % Change in cluster turnover                       % change in     0     5%         7%            10%           15%
                                                     cluster
                                                     turnover
 % Change in income of cluster actors               % change in     0     10%        25%           40%           50%
                                                     income
 Cluster members’ average rating of cluster in      Cluster         0     1-2        2-3           3-4           4-5
  an organizational development survey, based        member
  on a 1-5 scale where 5 is “mature”                 performance
                                                     rating


Output indicators9:
 Number of agribusiness clusters (ABCs)             # of ABCs       TBD                                                         Targets to be established once the baseline data is
                                                                                                                                 collected
 Number of farmers involved in agribusiness         # of            0     5,000      20,000        35,000        40,000
  clusters                                           participating


9
    Defined as “deliverables that are within the control of the implementing agency,” “Handreiking Resultaatketen,” DGIS, pg.1

                                                                                                                                                                                       61
                                                 farmers
 # Cluster members that are service providers   # members   0   200   600   800   1,000
  (agro-input dealers, traders, transporters,
  agribusinesses, etc.)
 Number of innovation grants                    # grants    0   5     12    18    20      Cumulative
 Number of matching investment grants           # grants    0   25    75    125   150     Cumulative




                                                                                                        62

				
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