Joel and Perez from Amaro Farmers’ Cooperative packing groundnuts in a sack
- Akol Joel, Groundnut Farmer in Kalapata, Uganda
Akol Joel is a farmer in Kalapata who makes a living by growing and selling groundnuts, a major crop grown in Uganda for both cash and consumption. Joel and other local farmers face numerous obstacles in their career that contribute to continuing poverty in their community.
Uganda Groundnut Project Summary
Improve the livelihoods of local farmers in Kalapata, Uganda by increasing income.
Without the means to process the nuts themselves, farmers are taken advantage of by middlemen who own processing machines and are left with little income.
Establish a groundnut processing plant that will add value to the groundnuts that can be sold at a good price, increasing income for local farmers.
Funding Usage Plan
Purchase and install a groundnut processing machine at the trading center closer to where the farmers live.
The land of poor farmers
In Kalapata, 90% of the population depends on agriculture as their main source of income. Smallholder farmers in Uganda face a wide range of agricultural production challenges, including poor processing capacity, lack of storage and transportation infrastructure, and low market prices for groundnuts created by middlemen who own processing facilities.
Moreover, droughts are becoming more frequent and prolonged due to climate change, requiring farmers to adapt to climate-resistant farming methods. Most of the trees in the area have been cut down for firewood for cooking fuel and baking bricks for construction, causing land degradation.
Farmers working in the field in Kalapata
Local farmers transporting groundnuts on a motorcycle to a shelling plant
The groundnuts have to be shelled before they are sold in the market. Yet farmers in Kalapata lack the means to shell their own groundnuts and have to transport them to the nearest processing plant, which is located around 20km away from the village. Those who do not own the means of transportation such as motorcycles have to shell the nuts by hand, a demanding task that often require an entire family’s worth of labor. Unshelled groundnuts have to be sold at a very low price to middlemen who own processing machines.
Even within the same region, the income of those with the ability to add value to products is more than twice the income of those without. The majority of smallholder groundnut farmers in Kalapata do not possess the ability to add value, which results in much lower income for their amount of labor.
Average Monthly Household Income (USD)
Source - 2012-13 UNHS report (By Uganda Bureau of statistics – Uganda National Household Survey)
Amaro Holdings Limited, a local farmers' cooperative
Amaro Holdings Limited is a farmers’ cooperative founded by community leaders and local smallholder farmers in Kalapata. Its mission is to improve the living standards of farmers by introducing new approaches and technologies to increase agricultural productivity and strengthen the value cycle of agricultural products. Farmers in Kalapata were able to bring their own ideas to the table to implement, while receiving professional support from institutions such as Kumi University in Uganda in order to take the organization to the next level.
Amaro aims to provide various support to increase agricultural productivity, such as educating farmers on climate-resistant farming techniques, introducing new technology, providing quality seeds and storage facilities. The cooperative also buys products directly from farmers at a fair price and reinvests the profit back into the community, such as providing educational scholarships and health services to farming families and planting trees to combat deforestation.
Farmers harvesting groundnuts in the field
A groundnut processing machine for our own community!
Amaro Holdings Limited is seeking investments into the purchase of groundnut processing machine that will allow local farmers to shell the groundnuts at a low cost without having to travel far, thus saving a significant amount of time and operational cost.
The shelled groundnuts will be packaged and sold at a fair price to local, regional and international markets, increasing the income of local farmers and their families. Additional value can be added to the groundnuts by creating food products such as jam and butter.
Moreover, groundnut shells can be used to make charcoal that can be used as an alternative source of cooking fuel, reducing the need for firewood. This will help combat further deforestation in an area where 80% of the population still depend on firewood for the main source of energy.
Charcoal briquettes made from groundnut shells
A local member making food products from groundnuts
Social Impact Analysis
Income generated from the sale of quality groundnuts at a fair price
With the income generated, the farmers/local community will be able to afford better education and health services, improving the standard of life.
Goal 1:No poverty
Food security strengthened from increased production of groundnuts
Increased agricultural productivity will provide more food and income to purchase other food.
Goal 2:Zero Hunger
Halt deforestation by providing alternative forms of cooking energy
Transform groundnut shells into charcoal briquettes, which can be used as cooking fuel in the community in place of firewood.
Goal 15:Life on Land
*This project is in alliance with SDGs adopted by the UN. Please refer to the UN website for further details.
Business Model: Amaro Holdings Limited
How your Impact Donation will be used
Your contribution will be used to purchase and install a groundnut shelling machine in Kalapata Community in Nyero Sub-county, Kumi District, Uganda. Part of the donation will be used to purchase a charcoal briquette machine that will be used to transform groundnut shells into charcoal to be sold to households, offices and schools.
Groundnut shelling machine
Charcoal briquette press machine
Uganda has one of the lowest Purchasing Power Parity (PPP) index in the world. In 2015, United States ranked 17th in the world with a PPP of $56,430, while Uganda ranked 194th with $1,780. PPP provides a measure of income level differences across countries assuming all exchange rates and living costs are equal. For more information about the economic situation in Uganda, please refer to the Global Business Knowledge website.
**The Kalapata Groundnut Project in Uganda was supported by Handong Global University’s UNESCO-UNITWIN project on entrepreneurship and technology development in 2016.
가치를 더할 수 있는 농업기술 전파로 우간다 칼라파타 지역의 땅콩 농부들을 빈곤에서 벗어날 수 있도록 함께 해주세요.
Empower smallholder groundnut farmers in Uganda by enhancing the value cycle of groundnuts with a bit of technology.