052 Increasing access with agro-processing

Posted on | April 27, 2010 | No Comments

Partner
VEDCO, Uganda

Status
on-going

Project description
Diesel engines powering agro-processing machinery enhance human nutrition, save productive time and add value to marketable produce thus presenting a good potential for boosting rural development. However, the use of these engines to generate energy to support other income generating activities and services is greatly limited by knowledge of the possibilities, inadequate technical and entrepreneurial skills. The knowledge gap regarding the potential inherent in the diesel engines and the potential contribution of the specialised large importers and dealers concentrated in Kampala city and to support rural based entrepreneurs in the countryside, who are not connected to the national grid to exploit the potential in diesel engines needs a bridging intervention.

Energy demand for productive services like phone and battery charging, saloons and lighting is largely unsatisfied and could be fulfilled through expanding the services of current investment in agro-processing to make the diesel engines multi-functional.

Using PRA approaches VEDCO will present the current diesel engine powered mills as latent multi-functional energy solutions with the potential to generate extra income for the groups through the expansion of current services and challenge the farmers groups to expand current services. These services could include the following: fruit processing and preservation, honey processing, blending and sealing beverages from soya beans, coffee and vegetables, barbershops/saloons, phone charging, video halls, lighting mini-bakeries, kiosks, restaurants and business/social service institutions like health centres and schools.

In order to up scale the project to other groups and individual entrepreneurs that may want to buy diesel powered MFPs, an awareness campaign shall me made both on radio and in print media, using posters in strategic positions, distribution of information leaflets and the documentary shot during project implementation shall be broadcast on the most outreaching television station.

VEDCO will pilot with current farmers’ groups that already are in possession of a milling facility powered by a diesel generator. Under the ‘Value Addition Program’ currently being undertaken by VEDCO more groups will be mobilised and facilitated to acquire milling facilities.

The program is aimed at improving competitiveness of agro-based products on the market, through processing the raw agro-produce into high quality products, with longer shelf life, better packaging (in some cases branded), wider market outreach and acceptability, therefore higher value. In the program farmer groups raise 50-75% of the value of the required machinery and installation, and the project supports them to get technicians to train them on maintenance and management, and to top up on acquisition costs. There are groups that run the establishments as business.

VEDCO will initially work with the farmers groups that are already in possession of diesel generators and milling facilities to facilitate the recognition and appreciation of the possibility of increasing utility from their diesel engines. Participatory Rural Appraisal techniques shall be used to review current benefits and to compare them with potential benefits in cases where multiple functions are explored.

VEDCO will facilitate this review with support from technicians attached to suppliers/ dealers of mills and diesel engines. The experimentation will consider the priorities of the potential service users and the business entrepreneurs, and identify supply and demand side bottlenecks.

On the demand side the project will catalyse growth of demand by encouraging other farmers’ groups to invest in and utilise the services made available by the diesel engine (both for agro-processing and productive uses). This could be made possible by linking with other NGOs and CBOs in the area to create awareness about the product and services and to support potential female and male users to access information on products, prices, services and sources through promotional materials developed in appropriate languages.

Farmers’ groups shall be equipped with financial and business development skills and encouraged to learn by sharing knowledge with each other and with service users.

On the supply side, importers and dealers will be engaged to contribute to production of promotional materials, to train technicians so that they provide technical and managerial expertise relevant for entrepreneurs to provide end-users with satisfactory services and to develop confidence and trust in the products. Micro-financing service providers (SACCOs, MFIs, and Banks) shall be encouraged to develop financial products suitable for energy entrepreneurs at different levels, and for end users.

Direct monitoring of project achievements shall be done, coupled with participatory evaluation sessions so that input and feedback of the actors can be addressed, and an electronic documentation of the processes and procedures made. Lessons learned shall be documented and shared with the actors and EASE partners in shared reports, meetings and regional workshops.

Learning questions

To what extent does generation of energy for productive services in addition to the primary function of the mills contribute to improving incomes of female and male farmers?
What is the effective intervention strategy in overcoming the bottlenecks in growth of demand for utilisation of diesel engines as multifunctional energy solutions?
What changes have occurred in the supply chain for energy solutions that can be attributed to the project activities?

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