Thursday, February 6, 2014

Action Plan


Integrated Market Linkage Project for Small Scale Rural Farmers (IMLP);
Nambieso and Chawente Sub-counties,
Apac District, Uganda.

Back Home Action Plan
EPM 2010B

Patrick Obua
UGANDA

 

























Acknowledgements:

I would like to acknowledge the contributions of my coach, Ms Mirjana Stanisic towards this Bach Home Action Plan. I have enjoyed your mentorship and learned a great deal from it.
I would also like to extend my appreciation to all the trainers who have introduced me to new ideas of Project Cycle Management (PCM) and shared with me their real life experiences, your contributions have significantly helped shape my deeper understanding of the subject. My appreciation also extends to the entire class of EPM2010B for sharing with me experiences in different contexts.
I am grateful to NUFFIC scholarship board for granting me the financial support to enable me pursue the course and my organization for granting me permission. I also owe a great gratitude to Hanneke Haveman of MSM and Mereike of the Netherlands Fellowship Program in Uganda who greatly helped me in processing the travel documents in the shortest time possible.
Lastly, i highly appreciate the entire staff and management of Maastricht School of Management and Apart Hotel Randwyck for the supports in various forms that I am not able to mention here.















List of Acronyms:

BHAP
Back Home Action Plan
CBO
Community Based Organization
GoU
Government of Uganda
HR
Human Resources
ICTs
Information Communication Technologies
IMLP
Integrated Market Linkage Project
M&E
Monitoring and Evaluation
MFPED
Ministry of Finance Planning and Economic Development
NAADS
National Agricultural Advisory Services
NGOs
Non Governmental Organizations
PCM
Project Cycle Methodology
PEAP
Poverty Eradication Action Plan
PEAP
Poverty Eradication Action Plan
PMA
Plan for Modernization of Agriculture
PRSP
Poverty Reduction Strategy Paper
SMSs
Short Messages Services
SPEED
Social Population Extension Education for Development
UBOS
Uganda Bureau of Statistics







Table of Contents

List of figures:
1.    Figure 1: Problem Tree Diagram.
2.    Figure 2: Logical Framework Matrix.
3.    Figure 3: Budget Allocation.

Executive summary:

The IMLP is aimed at bridging the gap that currently exists in the agricultural value chain system of the rural farmers in Apac district.   The overall objective of the project is to contribute to the poverty reduction of the rural household poverty..

The project targets small holder rural agricultural farmers in two sub counties of Nambieso and Chawente and it is expected to achieve the following results; established functional and effective market information system for agricultural outputs and reduced percentage of storage pest infestation of the agricultural outputs.

The planned activities include; establishing new commercial linkages, building the capacity of the farmers to use ICT to obtain agricultural price and market information, preparing and disseminating market information, providing agricultural market extension trainings, organizing local agricultural trade fair at sub regional levels and facilitating the advertisement of the farmers’ agricultural products.


The total budgeted cost of the project over the two year period 2012-2013 is UGX                      150,790,500.













1.0 Background.

1.1 About Uganda.

Uganda is a land-locked country lying on the equator with an estimated population of 33 million (UBOS 2010[1]). It shares boarders with Sudan, Democratic Republic of Congo, Rwanda, Tanzania and Kenya. About 20% of the country is covered by inland lakes. The rest ranges from tropical rain forest to savannah with mountains on the western border. The climate is tropical.
The country relies heavily on agriculture, the basis of livelihood of over 70% of the population. Crops such as cassava, sweet potatoes, rice and maize are the major subsistence crops. The major export crop is coffee.  With the revival of tea, tobacco and cotton production particularly in 1990s, there is a modest manufacturing and tourism sector and relatively new development of horticulture.
In 1995, Uganda introduced a process of developing a comprehensive and sustainable development, with an overall objective of wiping out poverty in the country. This process culminated in the formulation of the draft Poverty Eradication Action Plan (PEAP) in 1997, which aimed at reducing the population living in absolute poverty to 10% in 2017. The priority sectors in the first PEAP were roads and education.  In 2000 it was revised to incorporate Modernization of Agriculture and health as new priorities.

PEAP puts a lot of emphasis on the modernization of agriculture by promoting agricultural development projects as a key approach for rural poverty eradication. These projects traditionally address the supply side of the value chain, and usually focus entirely on increased productivity through better farm practices and more efficient use of agricultural inputs. Presently, there are very few projects that address the demand side of the production to ensure that increased production finds its way to market, making post harvest losses of the agricultural outputs to be wide spread.

1.2 Social Population and Extension Education for Development- SPEED.

SPEED is Community Based Organization (CBO) established in 1997 with the aim of increasing productivity of the rural farmers through;
a)    Building capacity in the areas of enterprise[2] identification, selection and management.
Based on the National priority, SPEED supports farmers to select and produce crops (enterprises) that are considered profitable and meet market demands both in quality and quantity. Under this activity, farmers through their farmer groups identify, and prioritize viable crops (enterprises) through a facilitated participatory process guided by a situational analysis. The criteria are normally based on comparative and competitive advantages like profitability, market availability, financial implications, and risks in the context of shocks, trends, and seasonality and production capabilities of the farmers.
b)    Building capacity in group formation & Management.
SPEED initiated the formation of farmers groups at parish levels and continues to develop their capacities in leadership and management skills.  There are about 44 functional farmer groups in the two sub counties where SPEED operates i.e. Nambieso and Chawente. Each group contains 8 to 12 members each coming from a farm family. The groups are located within a radius of 2 to 3 kilometres in a parish. The groups are encouraged to meet at least once a month. Meetings are held to discuss issues of common interest and resolve problems. The frequency and timing of meetings is decided by group members while meeting venues are arranged to give each family a chance to host the meeting in order to benefit from advice from other farmers. The group members also help in identifying priority areas for training of members and also mobilise each other and makes arrangements for the trainings.
c)    Providing technical assistance through provision of agricultural inputs, advisory services.
Under this activity, SPEED works in partnership with development agencies such as ACDI/VOCA, DANIDA and Local Government to provide inputs such as seeds, pesticides, farm equipments, and chemicals etc, to the farmers which are considered major problems because of the high costs involved in their acquisition.

1.3 My specific functions.

a) Collect information relevant for monitoring project performance.
 The responsibility consists of planning and managing the collection of baseline and performance data, documenting Indicators, conducting field visits and interviews on a quarterly and annual basis.

b) Setting up Monitoring and Evaluation system
The task consists of setting up a well-functioning Monitoring & Evaluation system that is expected to generate useful information for the management of the project.

c) Integrating Participatory appraisal in to the Monitoring and evaluation system
Introducing and facilitating participatory approaches in the monitoring and evaluations processes of projects.

d)    Conduct project reviews at a specified period of time
Facilitating project review assessment in the midterm of the project to allow for better control on the progress of the project and make sure that it is running as planned




2.0 Problem analysis and description.

Since agriculture employs about 80 % of the rural population, Uganda has put a lot of emphasis on agriculture as a strategy for raising rural incomes. Consequently Plan for Modernization of Agriculture (PMA) was adopted in the year 2000 as a strategic framework for achieving the poverty reduction through multi-sectoral interventions that enable the rural people to improve their livelihoods. The key focus has been to improve productivity or increases in yields and to transform subsistence farming in to profitable commercial enterprises.
Several interventions including the government’s National Agricultural Advisory Services programme and those of the nongovernmental organizations like Social Population Extension Education for Development (SPEED) are being implemented to increase agricultural productions of the rural farmers. The main activities being carried out include improving farming practices, providing necessary agricultural inputs, initiating measures to reduce production costs, provision of improved planting materials and encouraging the use of recommended agricultural chemicals.
As a result of the interventions, evidence collected from SPEED’s surveys and other publications indicate that agricultural yields have increased tremendously leaving the farmers with surplus production. The biggest challenge of the farmers remain the high post harvest loses which is estimated at 60%. This occurs because the farmers produce large quantities of the agricultural products but do not have a dependable, fast, and equitable means of getting such commodities to the consumer, losses therefore become widespread.
The reasons for this are; There is a missing   communication link between the producers (farmers) and the potential buyers, both the farmers and buyers are working in isolation of each others activities.
Lack of market information, since the farmers are not aware of the market information, they tend to prolong the storage of their products hence subjecting the output to damages.
Lack of post harvest handling knowledge on the side of the farmers which occurs because most of the activities are concentrated on productivity increased only. This leaves the farmers with little or no knowledge to handle the harvested output.
Lack of marketing cooperatives to market and sell the surplus produce of the member farmers, leaving high burden on individual farmer to store and sell the products which end up being damaged.
Lack or inadequate storage facilities for the surplus output, such as in polythene bags exposes the products to excessive moisture and pests and diseases which consequently leads to enormous damages.
 Poor state of the roads and high degree of road seasonality reduces the number of vehicles moving to the rural areas and as a result increases the cost of transporting agricultural products from rural to urban areas hence making the farmers to prefer storing their products and consequently exposing to high damages.


Effects
The following diagram illustrates the causes and effects of high post harvest losess of agrcultural output in Nambieso and Chawente sub counties.
High poverty incidences among farmers
 Figure 1: Problem tree diagram:
 


IN
High post harvest loses


OUT
Inadequate market system
Lack of communication between farmers and buyers
High incidences of storage pest infestation
Inadequate transportation facilities
Lack of market information
Lack of market extension activities
Lack or inadequate technical knowledge
Lack or inadequate storage facilities
Lack of storage interventions
Lack of storage extension services
Poor state of the roads
 










Causes


The objectives showing the means and ends relationships to the problems identified above are represented in an objective tree diagram (refer to appendix 1 attached).

3.0 Project description.  

The project targets smallholder farmers by linking them with buyers before and after production and providing market extension services for post harvest handing. The two core objectives of this project are to enhance and improve access to agricultural market information to the small scale rural farmers and product information to the consumers (possible buyers) and to build the capacity of the small scale farmers on post harvest handling.
 Linking farmers to markets will deal with: -
·         Establishing new commercial linkages with traders, agro-processing industries, marketing companies, processors and institutional buyers.
·         Building the capacity of the farmers to use ICT to obtain agricultural price and market information.
·         Preparing and disseminating periodically the market information to the farmers groups. Providing agricultural market extension trainings to the farmers.
·         Organizing local agricultural trade fair at sub regional levels and
·         Facilitating the advertisement of the farmers agricultural products in local publications whereas;
Capacity building in post harvest handling will involve organizing farmers in to cooperatives and training farmers with post harvest handling knowledge.

3.1 The Logical framework.

The logical framework matrix in figure 2 below provides the overall objective, purpose and expected results including key indicators and assumptions of the project.



Figure 2: Logical Framework Matrix:
Project Description
Indicators
Source of Verification
Assumptions
Overall Objective
To Contribute to GoU goal of rural farmers household poverty reduction.
 Income data/statistics
Agricultural output

National income statistics with MFPED
National Household survey data with Uganda Bureau of statistics.

Purpose:
Reduced postharvest losses of the agricultural outputs for small holder farmers.

Revenue of the farmers
Percentage of output sold per month.
Survey reports by SPEED
Monitoring and Evaluation Report of SPEED.
Farmers show high commitment to reducing post harvest losses by supporting and actively participating in the activities involved.

Price of agricultural products remains stable.
Results:
1.0   Established functional and effective market information system for agricultural outputs of small holder rural farmers.

2.0   Reduced percentage of storage pest infestation of the agricultural outputs of the small holder rural farmers.



·   No. of farmers using the system to access markets
·   No. of buyers accessing agricultural products using the system.

·  No. Of farmers trained with post harvest knowledge.

·      Monitoring and Evaluation reports of SPEED


·      Survey reports and Monitoring& Evaluation report of SPEED.


Farmers in effect adopt the system and use the pest management knowledge that will be provided.
Activities:
1.1   Conduct baseline research on agricultural output prices and markets.




1.2       Establish a database for agricultural market information


1.3       Build the capacity of the farmers to use SMS and radios to obtain agricultural price and market  information



1.4       Prepare and disseminate the market information to the farmers groups.




1.5       Provide agricultural market extension services to the farmers.



1.6       Organizing agricultural trade fair at sub regional levels.


1.7       Facilitate the advertisement of the farmers  agricultural products



2.1         Organize farmers in to cooperatives



2.2         Training farmers with post harvest
       handling knowledge.


·       Survey report
·      List of potential buyers collected
·      List of agricultural output prices


·       No. and existence of database


·       No. of farmers trained
·       No. of farmers using the skills acquired



·      No. of market information prepared and disseminated
·      List and No. of farmers who have accessed the information.


·       No. of farmers trained
·      No. of farmers using the skills

·       No. of trade shows organized

·       Amount of output sold

·       No of publications made



·       No and existence of cooperatives


·       No. of farmers trained

·       Number of farmers using the skills



3.2. Action Plan.

Implementation of the proposed activities is expected to start in January 2012 and end in December 2012. For details of the activities, responsible persons, durations and resources required (refer to the appendix 2 attached).

3.3 Activity Schedules.

The activities are scheduled to be implemented in four quarters each year for the two years of the project life cycle. Each activity has specific tasks that must be implemented within a particular quarter. There are also other activities that are recurrent till the end of the project. For details of the activities and the associated tasks and their quarters of implementation (refer to the appendix 3 attached).








4. Stakeholders Analysis.

The Successful establishment and functioning of the market system will require collaboration with a number of stakeholders who play various roles in the different phases of the project. The stakeholder analysis matrix (appendix 4 attached), indicates how the stakeholders’ interests are affected, their capacities to influence and motivation to bring about change including possible actions to address their interests.

4.1 Risk Analysis.

To be able to successfully execute the project, a risk analysis was conducted to determine the likely risks the project would encounter. Among the risk identified were inadequate financial resources, price irregularities and low commitments of the farmers to the proposed system. For the details of the risks and strategy for mitigation (refer to the appendix 5 attached)

5. Monitoring and Evaluation Plan

Monitoring of the activities of this project will be an ongoing activity throughout the planning, the formulation and implementation phases. It is expected to provide updates on the progress and identify anomalies at an early stage as the project continues to be executed and to establish solutions to counter them. The activities will include organizing regular meetings, carrying out surveys and field interviews after every quarter. Two evaluations will be organized one at the end of the first year to evaluate the progress of the project and the other in the second year at the end of the project lifetime to assess whether the project achieved the desired objectives and to determine further course of actions.

6.0 Budget.

The total budget for the project is UGX 150,790,500 which is approximately 43,083.00 Euros. Figure 3 below provides the breakdown of the costs.




Figure 3: Budget.
Activity/Items
Unit Measure
Unit Cost (UGX)
Quantity
 Amount (Year I)
 Amount( Year II)
Fixed costs



                                -     

Digital Camera
Pcs
                         500,000   
                                  1   
                     500,000   

Video Camera
Pcs
                     1,500,000   
                                  1   
                 1,500,000   

 Desktop Computer
Pcs
                     1,500,000   
                                  1   
                 1,500,000   

Laptop Computer
Pcs
                     2,000,000   
                                  1   
                 2,000,000   

Printer
Pcs
                         600,000   
                                  1   
                     600,000   

Motor cycle
Pcs
                     8,000,000   
                                  1   
                 8,000,000   

Sub Total

                   14,100,000   

               14,100,000   

Recurrent /Overhead Costs



                                -     
                                               -     
Stationery



                                -     
                                               -     
Flip Charts
Rolls
                           30,000   
                                20   
                     600,000   
                                   600,000   
Note Books
Carton
                           25,000   
                                10   
                     250,000   
                                   250,000   
Pens
Dozens
                           12,000   
                                10   
                     120,000   
                                   120,000   
Posters
Pcs per year
                              5,000   
                              200   
                 1,000,000   
                               1,000,000   
Utilities



                                -     
                                               -     
Electricity
Bill per month
                         150,000   
                                12   
                 1,800,000   
                               1,800,000   
Water
Bill per month
                           80,000   
                                12   
                     960,000   
                                   960,000   
Fuel
Litres
                              3,500   
                              350   
                 1,225,000   
                               1,225,000   
Airtime credit
Bill per month
                           20,000   
                                12   
                     240,000   
                                   240,000   
Printer tonner
Pcs
                         300,000   
                                  3   
                     900,000   
                                   900,000   
Meeting/conference halls/venue
No. Hall
                           20,000   
                                  3   
                       60,000   
                                     60,000   
Sub total

                         645,500   

                 7,155,000   
                               7,155,000   
Administrative Costs



                                -     
                                               -     
Labour



                                -     
                                               -     
Project Manager
Per month
                     1,200,000   
                                12   
               14,400,000   
                             14,400,000   
Database Officer
Per month
                         600,000   
                                12   
                 7,200,000   
                               7,200,000   
Research Assistants (4)
Per month
                         800,000   
                                12   
                 9,600,000   
                               9,600,000   
Finance & Admin Officer
Per month
                         800,000   
                                12   
                 9,600,000   
                               9,600,000   
Field Extension Staff( 2)
Per month
                     1,400,000   
                                12   
               16,800,000   
                             16,800,000   
Sub Total

                     4,800,000   

               57,600,000   
                             57,600,000   
TOTAL

                   19,545,500   

               78,855,000   
                             64,755,000   
Contingency 5% of Budget cost

                         977,275   

                 3,942,750   
                               3,237,750   
GRAND TOTAL (UGX)

                   20,522,775   

               82,797,750   
                             67,992,750   
GRAND TOTAL (EUROS)

                        5,863.65   

                 23,656.50   
                               19,426.50   
Exchange rate: 1 Euro= 3,500 Uganda Shillings (UGX)












7.0 Sustainability.

Profitability and relationship building will be vital in addressing the question of sustainability. Increases in profitability of the farmers as well as the relationship that will be built between the farmers and the market players like Individual buyers, agro processing industries will contribute to the sustainability of the activities in the long run. Therefore the communication links that will be created between the farmers and the buyers will be key in accomplishing its value in sustainability. In addition after the two year pilot, the project will be integrated in to the mainstream activities of SPEED.

8.0 Conclusion.

The strategy opted by this BHAP is expected to merely complement other interventions aimed at rural poverty alleviations. Poverty remains multi-dimensional cutting across productivity, income, gender, democracy, rural, urban, health, literacy among others. Implying the capacity of the BHAP to effectively and efficiently contribute to the reduction of rural poverty will depend on the effective and efficient implementation of the other dimensions as well.
Upon return, the document will be presented to the top management of SPEED for consideration and adoption as an integrated strategy to the current activities of the organization. Presently, the organization does not have a complete value chain system that addresses the farmers’ needs from production right to consumption. Therefore, the endorsement and implementation of the plan will have enormous impact on livelihood of the farmers in terms of reduced post harvest losses and consequently poverty as a whole. If adopted, implementation will kick off in January 2012.

9.0 Reference.

1.    Project Cycle Management Guidelines, aid Delivery Methods by European Commission, http://europa.eu/euaids/qsm/documents/pcm_manual_2004_en.pdf

2.     Jack R. Meredith. Samuel J Mantel (2006). Project Management: A managerial approach, 6th Ed. New York: John Wiley & Sons.


3.    Project Cycle Management, Flemish Interuniversity Council;


4.    European Commission Humanitarian aid (ECHO), June 2005;

5.     International Monetary Fund publication ( March, 2000);





10. Appendices.

Ends
 

Appendix 1: Objective tree diagram.

Means
 














Appendix 2: Action Plan.

ID
ACTIVITY
RESPONSIBILITY
TIME
Month
RESOURCES
R1
 Established functional and effective market information system



1.1
Conduct Baseline Research on agricultural prices and markets
M & E Officer
Jan-Apr.2012
Stationery, computers, HR
1.2
Establish Database for Agricultural market information
PM /M&E Officer
June-April 2012
Computer, funds, HR
1.3
Building the capacity of the farmers to Use SMS and Radio for obtaining Market information.
ICT Officer
May - Dec 2012
Stationery, venue, Fund, HR
1.4
Prepare and disseminate market information to the farmers
ICT officer, PM
May 2011-Dec 2012
Stationery, Computer, Funds,
1.5
Provide agricultural market extension services
ICT officer & Field Officers
May 2011-Dec 2012
Stationery, venue, Funds
1.6
Organizing trade fair
PM & Field Officer
May 2011-Dec 2012
Funds
1.7
Facilitate the advertisement of the farmers agricultural output
PM/M&E Officer
May 2011-Dec 2012
Stationery, Fund
R2
Reduced percentages of storage pest infestations.



2.1
Organize farmers in to cooperatives
Consultant
Aug.-Dec 2011
Stationery, Venue, Fund
2.2
Training farmers with post harvest handling techniques
Field Officer
May 2011-Dec 2012
Stationery, Venue, Funds


Appendix 3: Activity Schedules.

ID
ACTIVITY
Year I ( 2012)
Year II ( 2013)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
1.1
Conduct Baseline Research on agricultural prices and markets








1.1.1
Plan and Develop research instruments








1.1.2
Data Collection








1.1.3
Analysis and Reporting








1.2
Establish Database for Agricultural market information








1.2.1
Planning & sourcing  the designer  of the data base








1.2.2
Designing  the database








1.3
Building the capacity of the farmers to Use SMS and Radio for obtaining Market information.








1.3.1
Mobilizing farmers groups








1.3.2
Prepare Training materials i.e. Posters and audiovisual








1.3.3
Training of farmers groups








1.4
Prepare and disseminate market information to the farmers








1.4.1
Translate the information collected in to local languages








1.4.2
Develop information and communication materials e.g. posters








1.4.3
Arrange radio talk show








1.4.4
Organize regular dissemination meetings with farmers groups








1.5
Provide agricultural market extension services








1.5.1
Developing training materials








1.5.2
Training of farmers in selected topics i.e. demand, supply, etc








1.6
Organizing trade fair








1.6.1
Planning and preparing the fair








1.6.2
Facilitate the advertisement  of the fair








1.7
Facilitate the advertisement of the farmers agricultural output








1.7.1
Collect information about agri-output








1.7.2
Produce publication e.g. newsletters  for agri-output








2.1
Organize farmers in to cooperatives








2.1.1
Mobilize farmers to form cooperatives








2.1.2
Training of farmers on the principles of cooperatives








2.2
Training farmers with post harvest handling techniques








2.2.1
Develop training materials e.g. posters








2.2.2
Training of farmers














Appendix 4: Stakeholders Analysis.



Interest/ Needs
Capacity/ Influence

Actions to address Interest (Strategy)
Farmers/ Farmers Associations
( Primary Target)
Interested in getting markets for their agricultural products
Lack capacity to establish a marketing system
Design and establish market linkage system for them
Local Government
Support Local development initiatives
Surveillance of development projects
They have very close working relationships with the rural communities because of their organization structures
Inform and involve them in the mobilizations of the farmers
Local Leaders
Support Local development initiatives
Have strong capacities to mobilize farmers in their communities through their leadership  structures
Inform and involve them in mobilization and communication of project activities in their communities
Media i.e. Radios, News papers.
Publication of information
Provide access to information
Inform them about the activities of the project
Development Agencies i.e. FOODNET, ASDI,DANIDA,
Provide financial and non financial supports.
Establishing partnerships
Potential source of Financial and Non financial donations
 Make available  to them information about the project
NARO & other Research Institutions
Agricultural Information for publications
Have database of   agricultural information
Collaborate  them with them to access  information
Buyers/Traders
Buying agricultural products
Provide Purchasing power of the agricultural products
Provide them with information about agricultural products/outputs
NAADS
Over sees agricultural development projects
Possess knowledge and expertise in Agricultural projects
Work together with them throughout the project implementation


Appendix 5: Risk Analysis.

Risk
Probability of occurrence
Action to address
Insufficient financial resources to execute the projects
Medium
Engage in fundraising activities such as grant solicitation
Low  interests and Commitment   of the farmers towards the project
Low
Mobilize and educate the farmers about the benefits of the projects
Price fluctuations of the agricultural products
Medium
Engaging in contract farming
Developing good marketing/business  plans
Legal risks because of contractual business engagement
Low
Provide farm or business liability insurance.
Cooperative selling engagement




[1] UBOS-Uganda Bureau of Statistics
[2] Enterprise is a concept  used to mean commercialization of  farming( Farming as a business entity)