Grow Oil palm – Prime Time Communications

Out to Lunch

#OutToLunch Oil palm expansion will ensure predictable incomes for farmers

By Denis Jjuuko While on a trip from Kalangala sometime back, I met a man who looked every inch in his sixties on the ferry as we crossed Lake Victoria from the island to Masaka. He seemed to have recently dyed his hair dark black. He was wearing an oversize double breast jacket. He had a young man in his company, who was carrying a small backpack he couldn’t put down. I had seen him park a Land Rover Freelander on the ferry. I was fascinated. Although the car had seen a bit of days, I didn’t expect him to be driving such a car in a rural setting where Toyotas rule the roads. So I wanted to know what he did for a living and where he was heading. I was interested in knowing his story. Naturally I started up small talk. It had rained the whole morning and we started with rising water levels. With the ferry engines roaring nonstop and the lake so calm, I asked him what he did for a living — a living that would make him driver a Land Rover Freelander! He told me he was on a business trip to Masaka and may end up in Rakai depending on his prospects. He said he was on a mission to expand his farm. I had mistaken him for a fisherman or somebody involved in the fishing value chain. He told me his father somewhat discouraged him from fishing as a kid saying the lake was dangerous and always left him at home as he went on his fishing excursions. So when he dropped out of school, he concentrated on farming. He said he wanted to look for land in Masaka when it was still affordable. He said he had received information that the government was planning to establish oil palm growing beyond the island of Bugala in Kalangala. “If government goes ahead and starts oil palm growing in Masaka, the land prices will go up,” he said. “That is why I want to go to Rakai as well because government plans to establish oil palm in Sango Bay area,” he informed me. He was involved in oil palm growing in Kalangala where he established a plantation on about 100 acres. “I have given most of the Kalangala farm to my children. I only own about 28 acres now of oil palm trees and another 10 for food,” he said. “I am too old to be buying food,” he joked. I was still enjoying the talk when the ferry captain sounded the horn indicating arrival in Bukakata and end of my talk with this interesting businessman. At the pier in Bukakata, we said goodbye before he told me that if I ever come back to Kalangala I should simply ask any boda man to direct me to his home. “Simply ask them to bring you to Kinazi Kyabala, my home is along the main road,” he said, braggingly. Kinazi Kyabala is Luganda for oil palm is profitable. Given his car and business acumen, he may not have lied. I watched a TV story last week that the private sector players having seen how Kalangala has developed, are not waiting for government to establish nucleus estates for oil palm in Masaka, Rakai and in the Aswa region in northern Uganda. They are establishing the farms themselves. To meet current palm oil demand, Uganda needs to grow 100,000 hectares of oil palm. In Kalanga and Buvuma, the numbers are below 20,000 hectares so far. The price of oil palm fresh fruit bunches in Uganda has grown from approximately Shs200 a kilo in 2010 when the oil palm harvests started to more than Shs900 in July 2021. Data from the National Oil Palm Project indicate that on average, a farmer earns between Shs400,000 to Shs600,000 per acre per a month. Smallholder oil palm growers in Kalangala like the man I met on the ferry who number 2,063 (with about 1300 of them with harvestable crops) earn approximately Shs5 billion every month. This is a huge income for these farmers and no wonder the old man I met on the ferry was driving a Freelander to stand out. From his farm, he could afford it. The government and indeed local leaders should mobilise farmers in the areas where the private sector is acquiring land so that they learn from Kalangala farmers and embrace this crop instead of only selling land to the private sector. Oil palm trees take four years to mature and harvestable every 10 days for about 18 to 25 years before they are replaced. This kind of predictable income is what the majority of our farmers need to get themselves out of poverty. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 3, 2021

Out to Lunch

#OutToLunch Buvuma Island is the next frontier for long term investors

By Denis Jjuuko Traffic is building up as many people mill around the shores of Lake Victoria. A few boats are back to the landing site with the night’s catch. Traders from Kampala and Mukono are haggling for the best fresh fish. Those who are happy to have made a good bargain smile in anticipation of huge profits. A boda boda man is trying to fit a Nile Perch, the size of a teenager, on his motorcycle. It is Kiyindi in Buikwe District. Kiyindi is a landing site on the shores of Lake Victoria and the main gateway to Buvuma Islands. It is located a few kilometres off the Mukono-Njeru road. When the Jinja Kampala Expressway is constructed, as long as there is an interchange somewhere, Kiyindi and by extension Buvuma Islands will be very near to Kampala. By ferry, Buvuma is approximately one hour from Kiyindi. A new ferry is being built by the National Oil Palm Project (NOPP) of the Ministry of Agriculture, which will further cut the duration of the journey by about a half since it is said to be bigger. For many years, Buvuma has been a backwater district devoid of any meaningful development. The main economic activities have been small scale fishing, hand hoe-based subsistence agriculture, and charcoal burning. All this is changing as growing of oil palm is being extended there. Pathways have been graded into motorable roads and many people are now being employed in growing oil palm. There is unprecedented enthusiasm on the main island. Recently, the government has been buying land from willing sellers to establish the oil palm project, the second after Kalangala District. Before the growing of oil palms, an acre of land cost approximately Shs500,000. That figure has since grown to averagely Shs10m for prime land following land acquisitions by the government for the oil palm project. With household incomes set to grow and given the infrastructural developments in the area, Buvuma is the next frontier for those looking for long term investment. Buvuma, like many islands, boasts of kilometres of pristine sand beaches which could be developed into resorts, recreation centres, and/or holiday homes. Oil palm estates like in Malaysia and Indonesia can also provide another tourism attraction if packaged well. Palm oil is the most versatile vegetable oil in the world with many uses. But unlike Kalangala, Buvuma is so near Kampala and Jinja with a lot of potential for long term investors. Proposed infrastructure in terms of road and water transport will make it an island to die for. Investors could acquire land, a key means of production, when it is still affordable. Once electricity is generated, piped water extended, new docking areas built and factories set up for palm oil production, the prices will skyrocket. The government’s efforts to create a sustainable business on the island means that Buvuma District’s 90,000 population will have a lot of income. Unlike most other crops, oil palm trees are harvestable every 10 days once they reach maturity at about four years. A single tree lasts upwards of 25 years. The oil palm industry which is native to sub Saharan Africa is one of the major economic activities in Malaysia and Indonesia — the world’s leading producers of palm oil. Buvuma’s potential isn’t only in real estate and recreation. Banking and financial services, education, health and transport are among other sectors that are going to blossom. Factories to produce final products from palm oil can easily be set up. Leaders on the main island where oil palm project is being set up now need to embark on a campaign to change the mindset of the youth. In many parts of the country that are urbanizing, many young people simply want to fold their arms and wait for deals. They have watched a few people in Kampala that come on the scene driving fancy cars and throwing around money and they think that is the way to go — waiting for a big deal instead of working hard. As oil palm trees mature, households involved will demand for better standards of living. So, they will need better houses, cars, fashionable clothes etc. The youth of Buvuma who may not directly work in the oil palm sector should now acquire technical skills to provide the services. They can become mechanics, masons, fashion designers, electricians and beauticians among others. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 23, 2021