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Maize Production Proposal

Bachelor of business education (Gulu University)

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COMMERICAL MAIZE PRODUCTION

Business Proposal

2023 - 2027

Prepared by:

Mr. Richard Obura

Tel: +256 784 766 231 WhatsApp +256 756 121 724

E- mail: [email protected]

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1. Executive Summary
This commercial maize production project is a three years project running from June -2023 to
June 2027. The overall objective in the phase is to produce 858 tons of maize corns.

The initial investments required for the project in the first year is forty one million, five hundred
and forty six thousands, six hundred shillings only (41,546,600 Ugx). Of which, 19,800,000 Ugx
will be own contribution and 21,746,200 Ugx is being sought from the Agricultural Credit
Facility (ACF) through post bank Uganda.

The production capacity in 2023 is planned to start with 30 acres of maize; then increase to 60
acres in 2024; 85 acres in 2025, and 85 in 2026. The total land acres to be cultivated in the first
four years is 517 acres (209.2 hectares), from which, it is expected to yield 825 tons of maize,
and, raise about 1,113,200,000 (one billion two hundred and one millions, two hundred
thousand shillings only).

The total production cost in four years will be 423,931,500 (four hundred twenty three million,
nine hundred thirty one thousands five hundred shillings only). Therefore the expected gross
profit from the project is projected at 850,600,625 (Eight hundred fifty million, six hundred
thousand, and six hundred and twenty five shillings only).

The key success factors for the project will be; high compliancy to best & timely agricultural
practices; mitigating production risks through – agro insurance, cultivating hybrid seeds,
cultivating the most fertile and rain prone areas such as Nwoya /Amuru districts, procuring own
tractor and tractor mounted implements to mechanise all production processes(planting weeding,
spraying, & harvesting) , obtaining a framework agreement with commercial dealers who are
interested in investing with us so as ensure timely access to market and financing, and
collaborating with professionals.

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Table of Contents

1. EXECUTIVE SUMMARY .................................................................................................... I

Table of Contents..................................................................................................................... ii
List of figures: ........................................................................................................................ iii
List of Acronyms .................................................................................................................... iii
2. BACKGROUND .................................................................................................................... 1
2.2 Project Goal and Objectives .............................................................................................. 1
2.3 Project Timeline ................................................................................................................ 1
3. PHASE ONE .......................................................................................................................... 2
3.1.1 Commercial Maize Production ....................................................................................... 2
3.1.1.1 Introduction ................................................................................................................. 2
3.1.1.2 Operational Plan .......................................................................................................... 3
3.1.1.3 Estimated Project Startup Cost .................................................................................... 8
3.1.1.4 Risk Management ........................................................................................................ 8
3.1.1.5 Sales Forecast ............................................................................................................ 10
1.1.6 Expected returns in four years ...................................................................................... 10
3.1.1.6 Business Growth Model ............................................................................................ 11
3.1.1.7 Pricing Model ............................................................................................................ 11
3. ANNEXES ............................................................................................................................ 13
Annex 1: Year 1 Calendar ..................................................................................................... 13
Annex 2: Project Work Break-Down Structure..................................................................... 14
Annex 3: Projected Cash Flow – 5 years............................................................................... 15
Annex 4: High-level Risk Management Framework ............................................................. 16
Annex 5: SWOT Analysis .................................................................................................... 17
Annex 6: Risks Probability and Impact Matrix ..................................................................... 18
Annex 7: Certified Seed distributors in Uganda .................................................................... 19
Annex 8: Required Farm Equipment and Machineries ......................................................... 20
4.1 Tractor – 4wd 85 – Hp ..................................................................................................... 20
4.2 Tractor Implements ......................................................................................................... 21
4.2.1 Boom Sprayer ............................................................................................................... 21
4.2.2 Double Row Corn Harvester ........................................................................................ 22
4.2.3 6 rows multipurpose Planter ....................................................................................... 23
4.2.4 16 disc harrow .............................................................................................................. 24
4.2.4 4 discs – disc plough................................................................................................... 25
4.2.6 Farm trailer – 10 tons with an embedded hydraulic system ......................................... 26
5.0 Current Tractor and Implements Performa ..................................................................... 27

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List of figures:

Figure 1: Maize weeder machine - at China North Machine – Kampala ....................................... 5

Figure 2: 4WD 85 HP Massey Ferguson Tractor ......................................................................... 20
Figure 3: 800Lts with 12m boom at tractor providers Uganda ltd ............................................... 21
Figure 4: Boom Spray illustration on a 1 hectare plantation measuring 80m by 100m ............... 22
Figure 5: 2 rows corn harvester .................................................................................................... 23
Figure 6: 6 rows multi-purpose planter........................................................................................ 24
Figure 7: MD series Disc Harrow off set - 16 discs ..................................................................... 25
Figure 8: Massey Fergusson 4 discs - Disc plough ...................................................................... 25
Figure 9: A double Axle tractor pulled hydraulic-system driven trailer ....................................... 26

List of Acronyms
ACF Agricultural Credit Facilities
CI: Capital Investment
DLGs: District Local Governments
EBQ: Economic Batch Quantity
EOQ: Economic Order Management Quantity
NARO: National Agricultural Research Organization
NIC: National Insurance Corporations
OE: Operating Expense
OPV: Open Pollinated Varieties
OWC: Operation Wealth Creation
PDM: Parish Development Model
PFI: Participating Financial Institution
RBS: Risk Breakdown Structure
ROI: Returns on Investments
SWOT: Strengths, Weaknesses, Opportunities and Threats
TECOP: Technical, Environmental, Commercial, Operational and Political
VUCA: Vulnerability, Uncertainty, Complexity and Ambiguity
WBS: Work Breakdown Structure

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2. Background

2.1 Project Ownership

Proprietor: Mr. Obura Richard
2.2 Project Goal and Objectives
2.2.1 Goal
The project goal is to generate profits and achieve financial sustainability for the owner and
stakeholders so as to promote social – economic transformation, prosperity and quality of life.

2.2.2 Objectives
 To achieve high yields per acre of land by implementing effective agricultural practices, such
as proper seed selection, appropriate fertilization, timely planting, and pest control.
 To produce high-quality maize grains that meets market standards and consumer
expectations in terms of size, colour, texture, and freedom from contaminants.
 To optimise production schedules that aligns with higher market demands and better prices
 To efficiently utilise resources such as water, fertilizers, and energy through precision
scheduling, agriculture techniques, targeted fertilizer application, and efficient machinery
utilization
 To mitigate production risks through crop insurance, diversification, and forward contracting
to safeguard against potential market fluctuations, adverse weather conditions, or other
production risk
2.3 Project Timeline
4 years (from June 2023 to June 2027)

2.4 Project Budget and funding Sources

Total Operational Budget (4 yrs.) 423,931,500 Ugx
Funding Sources: Agricultural facility Loans, retained earnings, collaborating processors and
private funds

2.5 Project Location

The maize production project shall be located at Anaka sub county, Amuru district of northern
Uganda. The project site is along Gulu – Arua road, which is a major highway connecting west
Nile region to the Gulu-Kampala Highway. The road shall facilitate easy access of the project
site by suppliers, partners and customers

2.6 Project Benefits to the Economy

This project has the potential of improving food security, stimulating economic and market
growth, market development and social development in the economy.

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3. PHASE ONE
3.1.1 Commercial Maize Production
3.1.1.1 Introduction
Maize production is a vital component of Uganda's agricultural sector and plays a significant role
in food security and income generation for farmers and traders in the maize value chain. Uganda
is among the top maize-producing countries in east Africa along with Ethiopia and Egypt, with
maize being a staple food for the over 80% the local population. Besides, maize is also supplied
as raw materials in animal feed, industrial processing, and biofuel production.

The domestic demand for maize is high, driven by population growth, urbanization, and
increasing household consumption. The local consumers, particularly in rural areas consume
maize as posho (maize meal), urban consumers have a significant demand for maize products
such as snacks and breakfast cereals. Maize is also an essential raw material for various
industries, including animal feed, food processing, and brewing.

The local maize market is substantial, with both small-scale and large-scale farmers contributing
to production. The market has witnessed steady growth due to rising population, increasing
urbanization, and changing dietary preferences, with a large proportion of maize exported to
Kenya, South Sudan, Congo and Somalia, which has an equally high demand for maize due to
bad weather and, political instability in these countries.

The market trends and opportunities in the maize value chain is partly due to the increasing
awareness of the nutritional value of maize products, such as fortified maize flour, presents
opportunities for value-added products, growing demand for organic and non-GMO maize
products which provides a distinct niche market for producers and government's emphasis on
promoting agricultural mechanization and improved farming practices opens opportunities for
technology-driven maize production in the country. Further demands for maize as animal feed is
expanding, being driven by the growth of the livestock industry in Uganda. Recently, Uganda
government imposed taxes on imported maize product, which is expected to boost local maize
production in the country.

The major challenges to commercial maize production include: challenges in the maize market
include price volatility, climate change impacts, pests and diseases, and post-harvest losses. In
addition, there is limited access to financing, and lack of mechanization pose challenges for
smallholder farmers.

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The proposed project intends to enter the market through: Invest in modern farming techniques,
and post-harvest handling to enhance productivity and reduce losses, building partnerships with
food processors, retailers, and distributors to access wider markets opportunities.

Project Site: The Project will be located within Amuru and Nwoya districts of northern Uganda.
This site is considered due to its favourable agro-climatic conditions and rainfall amount which
comes in excess of 1500mm per annum and spread over two seasons. This rain pattern facilitates
double cropping of many maize without Irrigation

3.1.1.2 Operational Plan

1. Land Preparation:
Land ploughing and disking will happen towards the end of June and start of July respectively.
To be specific, this will be from 15 June – 10 July for 1st ploughing irrespective on the rain
pattern. First ploughing will ideally be done when there is minimum rains. A tractor hired from a
local farmer, farmer groups, or TOTCO ltd which is located within Lira city to facilitate this. The
choice will be guided by the availability and best offer in the market in the interest of the project.
The tractor is a choice as it turns enough soil to allow adequate decomposition and avoids
compacting. The disking will happen two weeks prior to planting – this is estimated to be
between 30th July and 3rd Aug. This timing allows the soils to start decomposing by the time
seed planting is done, with adequate soil turnover, such and such as to support moisture retention
just in case of drought.
In 2024, a tractor, Massey Ferguson MF385 and its accompanying implements (see Annex 8)
will be obtained to facilitate mechanization of all production processes (ploughing, disking,
seeding, weeding and harvesting) with the aim of saving time and money so as to be efficient.
Potential suppliers are Tractor Provider – Uganda ltd, Shandong Changmei machinery, and
Orkobonvehicle.
2. Seed Selections and Planting:
In Nwoya district, several maize hybrids have shown good performance and adaptability. While
the best hybrid may vary depending on specific factors such as soil type, season weather, and
individual farmer practices, here are a few maize hybrids that have performed quiet well with the
highest yield.
DK 8031 and 8090: though relatively new, DK 8031 & DK8090 are yielding highly and has
shown great adaptations in the area. They both show good disease resistance. On average, DK

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8031& 8090 have yielded between 2.5 to 6 tons per acre under favourable weather, adequate
fertilizers usage and timely planting. The other DK variety DK 777 is also showing a good trend.
Other good varieties in the area: SC 513, UH5051, Bazooka SC, PAN 53 and H624. All of these
hybrid varieties have given more than 2.5 tons per acre to about 6 tons per acre with fertilizers
and early planting.
Preferred Seed Variety: The preferred variety for this project will be DK 8090 and UH 5051. For
the year 2023 only UH5051. Supply will be obtained from Uganda Prisons or other certified
distributors (Annex 7). DK8090 will be planted in 2024 and above. This is because of the already
available market for UH5051 in this production cycle.

DK 8090 is a high-yielding maize hybrid which is showing excellent performance and

adaptability in the area. DK 8090 is a single-cross hybrid, developed by crossbreeding two parent
lines with desirable traits.
DK 8090 exhibits good vigor, standability, and adaptability to different agro-ecological
conditions. DK 8090 maize hybrid is highly regarded for its high yields, which has allowed
farmers to achieve significant maize production per acre. This hybrid is producing large, well-
filled ears with a high grain weight, contributing to its impressive yields in the fields.

DK 8090 is having a medium maturity period, ranging from approximately 100 to 110 days
depending on the planting time and weather pattern. This has made it very suitable for this
regions with relatively longer growing seasons. The variety is also exhibiting resistance and
tolerance to common maize diseases and pests prevalent in this area.

It has demonstrated resistance tolerance to streak virus, northern leaf blight, and maize leaf rust.
Additionally, DK 8090 has shown high level of tolerance to maize stem borer and fall armyworm
which posse moderate risk in the area.

Under an ideal farming situation – good soils and adequate rainfall, UH50051 and DK 8090®
hybrid variety has a production outcome capacity of 25 – 60 bags of maize equivalent to 2.5 – 6
tons compared to 1.8 – 2 tons per acre from Open Pollinated Varieties (OPV)1, 3.3 to 3.8 from
Longe 10H and DK777®. Therefore, in 2023 seasons, the farm targets an output of 3.3 - 4.0 tons
/ acre of DK 8090® variety of which an estimated 100 – 250 tons of maize should be harvested
by the beginning of January 2024.

1
Ministry of Agriculture, Animal Industry and Fisheries Profitability of Agricultural Enterprises 2019

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Planting: Seeds will be planted from the 1st – 10th Aug to take advantage of the moist weather
and moderate rains between September and November –these are the month when the leafy part
of the maize grows to maximum size and height and yielding.

Sparing: Spraying will be done when the plants have reached 6 weeks. Spraying with fungicide
will be done to prevent fungal attacks on the crops as opposed to spraying to treat the attack.
Besides fungi, the major pest in this area apart are: fall armyworms (a nocturnal pest that remains
in the crop panicle, cutworms, leafhoppers, and termites. Common chemicals to manage these
are Emamectin (for fall armyworms), disband and Imidacloprid – which are readily available in
Gulu town.

Weeding: Weeding will be done in the first 3-6 weeks of planting using an herbicides. The
purpose of herbicidal weeding is to ensure timely weeding to achieve the lowest weed volumes
as we prepare for a mechanize weeding which is slow.
The second weeding (mechanized) will happen at 10-14 weeks after planting using a mechanized
weeder; 2nd weeding will be purposefully done to compact soil around the maize stem so as to
retain more moisture.

Figure 1: Maize weeder machine - at China North Machine – Kampala

In the second year, a mechanical weeder, will be procured to mechanise the process of weeding.
Usually, manual weeding in one acre of maize crop requires five farmers, each being paid 8000 –

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10,000 Ugx per day, using the maize weeding machine reduces this to 10,000 for fuel per acres
and 2-3 men to clear each acre on a daily basis. Therefore, saving time and cost by 70 – 80%.

3. Fertilizers and Nutrient Management

The two most important fertilizers used for maize production in Uganda are Di -ammonium
phosphate (DAP) and Urea.
DAP: DAP fertilizer is used to provide essential nutrients, specifically nitrogen (N) and
phosphorus (P).
DAP is important in the following ways:
Maize plants require sufficient nutrients during their early growth stages to establish strong root
systems and healthy foliage. DAP fertilizer helps stimulate root growth and development,
enabling maize plants to absorb water and nutrients efficiently.
Nitrogen is a critical in supporting the development of green, leafy foliage and improves overall
plant health. DAP fertilizer contains nitrogen in a readily available form, ensuring that maize
plants have an adequate supply for optimal growth and biomass production.
The balanced ratio of nitrogen and phosphorus in DAP fertilizer promotes vigorous plant growth,
leading to higher maize yields. Adequate phosphorus availability is especially crucial during the
reproductive stage, as it supports flower formation, pollination, and grain development. DAP
contributes to improved grain quality, kernel size, and overall yield.
DAP is effective in a wide range of soil types, including sandy, loamy, and clay soils. It is also
used in both acidic and alkaline soils, making it versatile for maize cultivation in different areas.
DAP fertilizer is granular, and it easy to handle and apply. The granules are typically placed at
one bottle top per hole at the time of planting along with the seed in the case that the seeds are
not pre-soaked in Alpha and omega fertilizers.
Urea: Urea is the second and most important nitrogen-based fertilizer in maize production
applied when the plants are one month old or when they have just reached about 45cm high.

Urea is a concentrated source of nitrogen, containing about 46% nitrogen by weight. Nitrogen is
an essential nutrient for maize and plays a crucial role in promoting vegetative growth, leaf
development, and overall plant vigor.
Adequate nitrogen supply is crucial for achieving high maize yields. UREA fertilizer provides a
concentrated nitrogen source that can boost maize productivity when applied at the right rate and

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time. Proper nitrogen management with urea results in increased biomass, larger ears, and
improved grain yield.
Urea will be applied to maize crops using top dressing methods. The amount required is 50 kg
per acre if there is low rainfall or twice in case of heavy rain.

4. Crop Management:
Crop Management will be done to ensure the crop strives well without stress. The following will
be done: Monitoring and controlling weeds through manual or mechanical methods or use
herbicides, implementing integrated pest management practices to manage pests effectively to
ensure no crop is destroyed by common pest.

Some of the common pest and disease in Nwoya are: Fall armyworm, Maize stem borers and the
spotted stem borer, Maize weevils, aphids and thrips. To manage these pest, we will do timely
planting at the beginning of August time to avoid peak pest infestation periods, and planting
resistant varieties as well as use of pesticides.
5. Post-Harvest Handling
Dry maize cobs will be harvested by hand plucking and thrown into a mechanized threshing
machine, cleaning and bagging will be manually done before bagging and storage. Preservatives
will be applied in between the stored bags.
To avoid the risk of aflatoxin spread, we will seek for a large storage facility with an investor or
processor so that maize is stored in the most professional way to avoid damage and infestations
with aflatoxins. In the subsequent years a framework agreement will be signed for at least three
years with a commercial storage facility that has the capacity to store, secure, and preserve the
maize corns in large bulk.

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3.1.1.3 Estimated Project Startup Cost

Item Unit cost Qty ACF requested Self-Funding
required
Land hire 120,000 30 3,600,000 Ugx
Bush clearing 30000 30 900,000 Ugx
1st Ploughing 80,000 30 2,400,000 Ugx
2nd ploughing / harrowing 80,000 30 2,400,000 Ugx
Insurance 1,996,200 1 1,996,200 Ugx
Motorised Knapsack Sprayer 750,000 1 750,000 Ugx
DAP Fertilizers 190,000 30 5,700,000 Ugx
UREA Fertilizer 190,000 30 5,700,000 Ugx
UREA Application 30,000 30 900,000 Ugx
Maize seeds (UH 5051 hybrid) 190,000 30 5,700,000 Ugx
Planting & DAP application 60,000 30 1,800,000 Ugx
Turfuga / rockets /emermectin 50,000 302 1,500,000Ugx
herbicide 40,000 30 1,200,000 Ugx
Herbicides Application 30,000 30 900,000 Ugx
2nd Weeding (manual) 60,000 30 1,800,000 Ugx
Harvesting 30,000 30 900,000 Ugx
Drying packaging & sorting 20,000 30 600,000 Ugx
Transport to collection point 1,000 ,000 Wholesome 1,000,000 Ugx
Packaging materials 1,680,000 Wholesome 1,680,000 Ugx
Sisal string 4,000 30 120,000 Ugx
Sub Total 21,746,600 Ugx 19,800, 000 Ugx

3.1.1.4 Risk Management

To overcome the major risks identified in this project, the following steps will be deliberately
taken mitigate risks as follows:
1. Insurance – Agricultural premium will be procured to cover risks associated with production.
We expect that from 15th of Aug, - 20 Aug 2022, adequate rains to facilitate successful maize
planting. The rains are expected to go through Aug, Sept, Oct and Nov. These are the critical
months in which maize is expected to produce quality cobs. However, in the event that there
will be no rain around any of these months it could affect the quantity and quality of the cobs,
thus an insurance will be required to mitigate this risk. The premium will also be supportive
in case of animal destructions on the farm, unexpected heavy rains or droughts and any other
insurable risk(s).
2. Crop Quality - to ensure consistency and maintain quality, only certified seeds distributor will
be contracted to supply Dk 8090 seeds. To date, the best suppliers are: Tropical Seeds (U)
limited, Victoria Seeds (U) ltd, equator seeds, and Uganda Prisons Services among others. In
2
Emermectin is applied thrice in case of an attack of fall Army worms

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the following years, new varieties with different growth cycles will be grown to avoid risks of
pest and disease pertinent to specific varieties.
3. Labour Management – a group of organized community workers will be hired to work on the
farm in order to be able to follow schedules for each of the activities so as to be consistent
with the activity calendars.
4. Project financing – Acquiring an Agricualrual Credit Facility (ACF) is central to the success
of this project. ACF is government facility disbursed on specific activities as per the work
plan, the project will therefore follow its pre-defined work plan (See Annex 1) to ensure that
the funds are available, properly and efficiently managed to achieve its objectives and
minimize the risk of losing funds along the project life cycle. In addition, startup funding will
be acquired from potential investor so that delays associated with disbursement does not
disturb the production cycle.

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3.1.1.5 Sales Forecast

The expected sales from the maize based on the current market prices, is illustrated as below.
However, considering the effects of inflations and potential prices gains due to demand
fluctuations in Kenya and South Sudan, the expected sales forecast might be more than these
projections on the assumptions that maize is highly demanded across the borders and most likely
to have high demands with improved security across the Uganda – Sudan borders in the near
future.

1.1.6 Expected returns in four years

Item Capacity Output Sales/ ton Expected Expected gross Comments
(Acres) (tons) income /year Profit by year
2023 30 99 1,400,000 118,800,00 77,553,400 Maize prices
has been
2024 60 198 1,400,000 277,200,000 197,465,425 increasing by
2025 85 264 1,500,000 369,600,000 261,953,900 about 10%
every two
2026 85 264 1,500,000 369,600,000 261,953,900 years for the
last 4 years 3
Total 517 825 1,135,200,000 798,926,624

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Ministry of Agriculture, Animal Industry and Fisheries Profitability of Agricultural Enterprises 2021 report

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3.1.1.6 Business Growth Model

The project will be evaluated and a business growth model will be adapted after the following
analysis:

1. Conducting a 3 years sensitivity analysis on our own activity to examine how small changes
in input, such as climate conditions, input usage, or management practices, will impact
production. It helps assess the vulnerability of the production project to determine how it will
fair in the medium to long term.
2. Conducting a 3 years Yield Gap Analysis to compare the projected potential yield with the
actual yield achieved in our farm. This analysis will continuously identify the factors
contributing to the yield gap and guides decision-making to bridge the gap through improved
practices or interventions.
3. Input Usage which will take into account the inputs required for maize our production, such
as seeds, fertilizers, pesticides, and water. The quantity, timing, and application rates of these
inputs are considered based on best practices and recommendations from extension teams.

For the year 2023-2027, we will continue expanding our production based on the Product-
Market-Fit model. This means we will utilise an effective inputs usage as well as adaptation of
modern technology and mechanisation of all farm processes. The Product-Market-Fit model
focuses on finding the right combination of product and market to achieve growth. It involves
understanding customer needs, developing products that meet those needs, and targeting the right
market segments
After this, we will consider scaling up depending on the market trends, reviewing our business –
life cycle model to determine the risk associated with maturity and decline and to understand
whether we have to continue expanding on the same production or diversify in the new markets.

3.1.1.7 Pricing Model

The current maize pricing models in Uganda considers, Production Costs, market demands,
supply and demands dynamics, market competition, market price index, quality and grading as
well as currency exchange.
Our product will be priced with considerations of finding the best fits between the lowest and the
highest price in the market. As we intend to supply direcly to supplier and processor, our pricing
will go for a caped pricing model that considers the production cost, supply and demands
dynamics such as weather-related risk and bench marking on market price index.

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The model takes into account the costs incurred in maize production, including land rental, labor,
seeds, fertilizers, pesticides, irrigation, machinery, storage, and transportation. By accurately
estimating production costs, the model ensures that prices cover expenses and provide a
reasonable return on investment for producers. We will not be relying on market competitionus
to determine our prices as we expect to already have specific buyers attached to our project.

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3. Annexes
Annex 1: Year 1 Calendar
June July Aug Sep /oct Dec Jan 2024 Activity
Cost
W1/W2 W3/W4 W3 W4 W1 W2 W3 W4 W2/ W3 W3 W4 W1
Land hire 3,600 ,000 3,600,000
Bush Clearing
900,000 2.400,000
1st Ploughing 2,400,000
2,400,000
2nd Ploughing
2,400,000 3,200,000
Seeds
5,200,000 5,200,000
Planting
1,800,000 1,800,000
Crop Insurance
1,992,600 1,992,600
Motorised Knapsack Sprayer
750,000 750,000
Herbicides
1.200,000 1,200,000
Herbicides applications
900,000 900,000
2nd Weeding – mechanical
1,800,000 1,800,000
Fungicide -Turfuga/ rocket
1,500,000 1,500,000
1st Fertilizers (DAP)
5,200,000 5,200,000
2nd Fertilizers (Urea)
5,200,000 5,200,000
Urea Application
900,000 900,000
Harvesting
900,000 900,000
Drying and packaging
800,000 800,000
Transport to collection points
1,000,000 1,000,000
Packaging materials
1,680,000 1,680,000
Sisal Strings
160,000 160,000
Weekly Expenses 4,500,000 2,400,000 5,200,000 4,392,600 7000,000 750,000 7,100,000 2,400,000 1,800,000 800,000 1,840,000 1,900,000 42,182,600

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Annex 2: Project Work Break-Down Structure

Enterprise Development Project 1.1 Need Assessment 1.1.1 Consult NARO, DLGs, traders groups etc.
for Commercial Maize Production 1.1.2 Identifications and consultations with model farmers
1.1.3 Requirement documentation done
1.1.4 Project locations and production strategy determined
1.1.5 Proposal development completed and funding strategy done
1.2 Maize Production 1.2.1 Production land hired and cleared
1.2.2 Hybrid seeds suppliers determined
1.2.3 Agronomist consulted
1.2.4 Planting calendars reviewed
1.2.5 Fertilizers and sprays purchased and applied
1.2.6 Workers contracted
1.2.7 ploughing & disking done
1.2.8 Planting done
1.2.9 Timely weeding done
1.2.10 Timely harvest completed
1.2.11 Stored hired
1.2.12 Marketing done
1.3 Integrated Project 1.3.1 Manage project cost
Management 1.3.2 Manage and direct different enterprise activities
1.3.3 Acquire, develop and manage teams
1.3.4 Manage frame-work agreements
1.3.5 Stakeholders engagement Managed
1.3.6 Close year 1 activities

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Annex 3: Projected Cash Flow – 5 years

Commercial Maize Farms Project
5 years Projected Cash Flow
For the FY. 2023/34 2024/25 2025/26 2026/27 2027/28
Cash flow at the begging of the yr. - 74.3 m 170.6m 282.4 m 439.9m
Cash at the end of yr. 77.3m 170.6m 282.4m 439.9m 606.9m
Operating Activities 2023 2024 2025 2026 2027
Cash from:
Customer (000,000) 113 124.9 369 369 -
Other operations (000,000) 0 0 1 2 2
Cash Paid for:
Inventory (000,000) 20.9 53.8 76 76 -
Administrative cost (000,000) 2.1 11 25 25 -
Wages (000,000) 12.3 18.5 49.5 49.5 -
Income tax (000,000) - - - - -
Net Cash flow from Operations 77.7 193.7 219.5 219.5

Investing Activities
Cash receipt from
Sales of equipment (000,000) 0 0 0 0 100
Loans collections (000,000) 0 0 0 0 0
Sales of securities (’000,000) 0 0 2 8 65

Cash paid for:

Equip purchase (000,000) 0 100 50 0 0
Investment securities (000,000) 0 5 10 15 -
Loans to other entities (000,000) 0 0 0 0 -
Net Cash flow from Investments 0 (105) (58) (7) 165

Financing Activities
Cash receipt from:
Issuance of stock (000,000) 0 0 0 0 0
Borrowing (000,000) 20 56 65 - -

Cash paid for:

Treasury bills (000,000) 0 30 40 55 0
Loans (000,000) 23 64.4 74.7 - -
Net Cash flow from Financing Activities. (3) (38.4) (49.7) (55) 0

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Annex 4: High-level Risk Management Framework

The risk management for this farming project is based on the risk categorization using the Risk
Breakdown Structure (RBS) framework. This framework is derived from the Vulnerability
Uncertainty, complexity and Ambiguity (VUCA), Political, Economic, Social, Technical,
Environment and Legal (PESTEL), and technical, environmental, commercial, operational and
political (TECOP) models.
The incorporated project RBS framework for this project is hereby summarized below.
1. Technical Risk 1.1 Scope definition
1.2 Requirement definition
1.3 Estimates, Assumptions, and Constraints
1.4 Technical Processes
1.5 Technology
1.6 Technical Interface
2. Management Risk 2.1 Project Management
2.2 Programme / portfolio Management
2.3 Operations Management
2.4 organization
2.5 Resourcing
2.6 Communication Risk
3. Commercial Risk 3.1 Contractual terms and condition
3.2 Internal Procurement
All Sources of Risk
3.3 Suppliers and vendors
3.4 Subcontracts
3.5 Customer stability
3.6 Partnership / joint venture
4. External Risks 4.1 Legislations
4.2 Interest Rates on loans
4.3 Sites/ Facilities
4.4 Environmental / weather
4.5 Competition
4.6 Regulatory

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Annex 5: SWOT Analysis

Strengths: Weaknesses:
 Favorable agro-investments opportunities and policies such as Agro-  Low Productivity: Maize productivity in Uganda is often lower compared
financing, PDM, agro-extension services, local weather monitoring and to its potential due to various factors such as limited access to improved
reporting station, and government infrastructures (security, market, seeds, low fertilizer usage, inadequate pest and disease management, and
transport and communication infrastructures) inefficient farming practices.
 Favourable Agro-climatic Conditions in the local areas of  Improper post-harvest handling and storage practices contribute to
Amuru/Nwoya suitable for maize production, allowing for year-round significant losses
cultivation and potential for multiple cropping cycles.  Maize farming face challenges in accessing affordable credit and
 High Demand: Maize is a staple food in Uganda, ensuring a consistent financial services to invest in inputs, equipment, and technology.
and reliable market for maize farmers.  Limited availability and affordability of modern farming machinery and
 Abundant Land Availability: Nwoya/Amuru has ample agricultural land, equipment hinder higher productivity and efficiency in maize farming.
providing opportunities for expansion and increased production.  Inadequate storage and processing facilities, inadequate market
 Traditional Knowledge and Experience: Amuru/Nwoya has been information systems can constrain market access and limit price
cultivating Maize for generations, leading to a wealth of traditional negotiation power for the product.
knowledge and expertise among farmers.
Opportunities: Threats:
 Investing in maize processing facilities, can add value to the crop and  Increasing climate variability such as changing weather patterns in the
increase profitability. area pose risks to maize production.
 Export markets for flour or processed maize, presents opportunities to  Maize crops in Amuru/Nwoya are susceptible to various pests and
diversify revenue streams and access higher-value markets. diseases, such as armyworms, stalk borers, and maize smut, which can
 Adoption of climate-smart agricultural practices, including lead to significant yield losses if not properly managed.
conservation agriculture and efficient irrigation techniques to enhance  Fluctuations in maize prices due to market dynamics, consumer
resilience to climate change and improve productivity. preferences, and input prices can impact profitability
 Meeting the increasing demand for organic and specialty maize  Competition from imported maize products, such as cheaper maize
products by adopting and cultivating specific organic maize varieties imports, can affect the competitiveness in the local market
can tap into niche markets.  Limited availability and affordability of improved seeds, fertilizers,
 Collaborating with agribusinesses, processors, and retailers can create pesticides, and farm machinery can hinder productivity and limit the
value chain linkages and access stable and higher-value markets. adoption of modern farming practices.

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Annex 6: Risks Probability and Impact Matrix

The risk identification and categorisation matrix here categorises risks into those with severe impacts (red), moderate impacts (yellow)
and mild impacts (green)

Threats Opportunities

0.05 0.09 0.18 0.36 0.72 0.72 0.36 0.18 0.09 0.05
- high qty
Skills gaps Competition Customer -Location - funding - Bank Loan - best farm Regional Training
varieties –
stability gaps land in fertile markets predefined
areas

0.04 0.07 0.14 0.28 0.56 0.56 0.28 0.14 0.07 0.04

Cross border - poor quality Technical Bad Weather - Crop -Scope defn - certified Farmers
security inputs defn Insurance suppliers associations

Probability
Probability

0.03 0.05 0. 10 0.20 0.40 0.40 0.20 0.10 0.05 0.03

- Interest rates Contract Customer Cross-border - Land lease - Agric CF

terms for stability & regional
land mkts. - long term
partnership
0.02 0.03 0.06 0.12 0.24 0.24 0.12 0.06 0.03 0.02

Unreliable Regulations Theft Guards Organization Retainer

professionals agreements

0.01 0.01 0.02 0.04 0.08 0.08 0.04 0.02 0.01 0.01
Legislations Value addition

Very Low Low Moderate High Very High Very high High Moderate Low Very Low
0.05 0.10 0.20 0.40 0.80 0.80 0.40 0.20 0.10 0.05
Negative Impact Positive Impact

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Annex 7: Certified Seed distributors in Uganda

S.no Name Office / Agent Phone Website

Location
1 National Semi-Arid Entebbe 0414 533 258 www.naseco.go.ug
Resources Research 0754 618001
Institute( NASECO)
2 Agricultural Research Kampala 0414 531 769 www.naro.go.ug
Organization (NARO): (Kawanda)
3 Victoria Seeds Lira 0414 542 008 www.victoriaseeds.com
0785 543 559(lira)
4 Equator Seeds Limited: Gulu 0782 620830 www.equatorseeds.com
0774 595651
5 SEEDCO (U) Limited: Kampala 0756532660 www.seedcogroup.com/uganda

6 East African Seeds Kampala 0392 773 321 www.easeed.com

7 Uganda Prisons Services Luzira 0414256751 www.prisions.go.ug

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Annex 8: Required Farm Equipment and Machineries

4.1 Tractor – 4wd 85 – Hp

This project will require a 4wd – 85 Hp versatile tractor for ploughing and planting. The Massey
Ferguson 385 4WD, 85 Hp tractor is one those versatile tractors used by farmers and agricultural
businesses for various farming operations, including small to medium-scale farming, as well as for
commercial applications. The Massey Ferguson 385 model is manufactured by Massey Ferguson
with the following features:
 The MF 385 is equipped with a powerful and fuel-efficient engine. Its diesel engine has a power
output of 85 horsepower (hp). The engine is designed for an efficient fuel consumption of about
18.5, L ha -1, which is 15% more than competing more than John Dere and New Holland.
 This tractor comes with a robust and efficient transmission system, which has a 12 forward and 4
reverse gear system, allowing operators to select the appropriate speed for different tasks
 The MF 385 is equipped with a reliable hydraulic system which has a strong lifting capacity that
enables it to handle various implements and perform tasks such as plowing, tilling, and lifting.
 The tractor features a power take-off (PTO) system allows the transfer of power from the engine to
operate various implements and attachments. The standard PTO speed is 540 RPM (revolutions
per minute), required for powering implements like mowers, threshers, and pumps.
 The MF 385 is designed with operator comfort and safety system, has a comfortable and
ergonomic operator's platform with well-placed controls for easy operation. Safety features such as
rollover protection structures (ROPS) and seat belts are included to ensure operator safety.
 Reliability and Durability: Massey Ferguson is known for manufacturing durable and reliable
agricultural equipment.

Figure 2: 4WD 85 HP Massey Ferguson Tractor

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4.2 Tractor Implements

4.2.1 Boom Sprayer
Boom sprayers are one of the most important primary farm implements used for the application of
liquid pesticides, herbicides, fertilizers, and other agricultural chemicals onto crops and/or fields.
Key features are:
 The boom arms are the main structural components of the sprayer, extending horizontally from
the sprayer unit. They typically consist of multiple sections that can be folded or extended to
adjust the spraying width and coverage of up to 24 m span. These arms are fitted with spray
nozzles that distribute the liquid over the crops and/or fields.
 The boom arms are fitted with spray nozzles that determine the spray pattern, droplet size, and
spray volume.
 Boom sprayers have a tank of varying sizes. This project will require the 800lts boom tank as this
provides adequate pressure to ensure proper distribution of the liquid during operations.
 Boom sprayers have pressure and flow control mechanisms to regulate the spray pressure and
volume.
 Boom sprayers are equipped with control systems that enable operators to manage various
aspects of the spraying operation. These controls include on/off switches, pressure gauges, flow
meters, and boom section control valves.
 Boom sprayers are mounted on a tractor and have suspension systems to maintain stability and
minimize boom movement during operation. Height adjustment system to set the optimal
distance between the spray nozzles and the target crops or fields.
 Boom sprayers may include safety features such as agitation systems to prevent chemical
settling, tank rinsing systems for easy cleaning, and safety shields or curtains to protect the
operator from chemical exposure during spraying.

Figure 3: 800Lts with 12m boom at tractor providers Uganda ltd

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This model of the boom sprayer has up to 12m working span, therefore in one spraying cycle, the
boom is able to spread insecticide and/or fertilizer covering 24m as illustrated below. This shows that
two complete cycles will cover a total horizontal span of 80 meters.

12M 12M

12M 24M 24M 24M 12M

104M

12M 12M

96 M
Figure 4: Boom Spray illustration on a 1 hectare plantation measuring 80m by 100m

4.2.2 Double Row Corn Harvester

The hydraulic controlled double row corn harvester is a specialized agricultural machine designed to
efficiently harvest corn crops planted in two rows simultaneously.
The key features and considerations of a double-row corn harvester:
 The harvester is equipped with harvesting mechanism that includes row dividers or snouts,
gathering units, and cutting components. The row dividers help guide the corn plants into the
gathering units, which consist of rotating augers or gathering chains. The cutting components,
such as stalk choppers or snapping plates, separate the corn ears from the stalks.
 The double-row corn harvester is designed to match the specific row spacing of the corn field. It
typically accommodates row spacing configurations commonly used in maize production, such
as 75 cm (30 inches) or 90 cm (36 inches) between rows.
 Double-row corn harvesters have a higher harvesting capacity compared to single-row
harvesters, as they can simultaneously harvest two rows of corn plants. This increases efficiency
and reduces the time required to complete the harvest.
 Once the corn ears are detached from the stalks, they are collected and transported within the
harvester. The collected corn ears are conveyed through the machine to the grain tank

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 Double-row corn harvesters often have adjustable components to accommodate different field
conditions and corn crop variations. These adjustments may include height adjustments to match
the crop height, row spacing adjustments, and options for different cutting attachments or
configurations.

Figure 5: 2 rows corn harvester

4.2.3 6 rows multipurpose Planter
A 6-row multi-purpose planter is a specialized agricultural machine designed for planting various
crops in multiple rows simultaneously. It offers increased efficiency and productivity compared to
single-row planters.
The machine can spread fertilizers during planting, and complete the suppression at the same time.
This gives it an advantage over other simple planters that only plant seeds, but do not spread
fertilizers. Therefore, the multi-purpose planter is far more cost effective to operate and, an essential
requirement for this project.
Here are some key features and considerations of a 6-row multi-purpose planter:
 The planter is designed to accommodate six rows, allowing for the simultaneous planting of six
rows of crops in a single pass, which can be adjusted to match the specific requirements of the
crops being planted.
 The planter is equipped with a seed metering system that ensures accurate seed placement and
spacing.
 The planter typically has multiple seed hoppers, one for each row, to hold the seeds for planting.
The hoppers can be easily filled and provide sufficient capacity to cover a significant planting
area without frequent refilling.
 6-row multi-purpose planters have the capability to apply fertilizers simultaneously with seed
planting. This can be done through separate fertilizer hoppers or through integrated systems that
combine seed and fertilizer placement.

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 The planter is designed to be adjustable to accommodate different crops, row spacing, and
planting depths.

Figure 6: 6 rows multi-purpose planter

4.2.4 16 disc harrow
Disc harrow is a type of agricultural implement used for soil tillage where crops are to be planted,
chop up unwanted weeds or crop residue and breaks up large clumps of dirt to prepare it for planting.
Disc harrows consists of a series of concave discs arranged in rows and mounted on a frame. They are
made of concave metal discs, which are scalloped or set at an oblique angle. Features are:
 The MD series disc harrow typically features a gang arrangement of multiple discs, which can
vary in number depending on the specific model. The discs are mounted on individual axles and
spaced evenly across the width of the harrow. The disc diameter and spacing between discs can
also vary.
 The disc blades are the cutting components of the harrow. They are typically made of hardened
steel and have a concave shape. The blades are angled to penetrate the soil and effectively cut
and mix crop residues, weeds, and other organic matter. The disc blades are often replaceable
and can be sharpened to maintain their cutting efficiency.
 The MD series disc harrow is mounted on a sturdy frame that provides stability and support. The
frame is connected to a tractor or other power source through a hitch system, allowing for easy
attachment and transport. The hitch may be adjustable to control the working depth of the discs.
 MD series disc harrow have adjustable gang angles. This feature allows operators to change the
angle of the disc gangs to match the soil and field conditions. Adjusting the gang angles can
affect the aggressiveness of the tillage and the depth at which the discs penetrate the soil.
 The disc harrow have mechanisms for adjusting the working depth of the discs. This allows
operators to control the depth of soil penetration based on the desired tillage requirements and
soil conditions.
Below is a cat II disc with 24 Inch x 4.5 mm, with 9 Inch Disc Spacing.
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Figure 7: MD series Disc Harrow off set - 16 discs

4.2.4 4 discs – disc plough

The most recognized brand for the four discs is the Massey Fergusson designed disc plough, suited to
a wide range of soil types including peat and sandy areas. The key features are the large 66cm heavy
duty discs, which are equally spaced at 53cm and at a working depth of 25cm which is ultimately
suitable for use in the light soils.
The components are
 Disc Blades: The plough has four disc blades that are typically made of hardened steel. The
blades are circular and concave in shape, allowing them to cut through the soil effectively.
 Frame and Hitch: The plough is mounted on a sturdy frame, which is connected to the tractor's
hitch system. The hitch allows for easy attachment and detachment of the plough to the tractor.
 Adjustable Angle: The angle of the disc blades can usually be adjusted to control the depth and
aggressiveness of the ploughing operation. This adjustment allows for customization based on
the soil type, moisture level, and desired tillage depth.

Figure 8: Massey Fergusson 4 discs - Disc plough

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Advantages
 The four discs ploughs are easy on horse power and great for the soil because they make a finer
cut and give better aeration than a conventional plough.
 It's ideal for ploughing crop residue and stubble back in after harvesting.

4.2.6 Farm trailer – 10 tons with an embedded hydraulic system

The preferred hydraulic tipping trailer for this project will be that, which is capable of operating in
tandem with a tractor unit (front part), which can safely tow a gross wt. of 20 ton fitted with draw-
bar and an hydraulic supply of at least 138 bar (2000 psi ) via a trailer tipping pipe with quick connect
fittings.

Figure 9: A double Axle tractor pulled hydraulic-system driven trailer

The 3 side tipper mechanism will be preferred as it does a great job by unloading the goods in three
directions. Most trailers unload only in one direction which requires more space, time and fuel, so to
overcome these problems we will purchase a three way tipper mechanism.
Function and Advantages:

 Tractor trailers are primarily used in the transportation to move large volumes of inputs such as
seeds and fertilizers as well as outputs such as maize bags efficiently and economically.
 They offer significant advantages in terms of capacity, flexibility, and cost-effectiveness
compared to smaller vehicles.
 The combination of a powerful tractor unit and a large trailer allows for hauling heavy loads,
making them suitable for long-haul or regional transportation.
 Tractor trailers are compatible with highway infrastructure and are commonly used for intercity
and cross-country deliveries.
 The detachable nature of the trailer allows for easy loading and unloading, as well as the ability
to switch trailers depending on the cargo requirements.

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 Tractor trailers offer fuel efficiency benefits, especially when compared to multiple smaller
vehicles that would be needed to transport the same volume of goods.

5.0 Current Tractor and Implements Performa

S.no Item Price ($) Supplier Comment
1 Double row – corn harvester 3,200 Shandong An agent is required for the
Changmei purchasing
machinery
2 Boom Sprayer – 800 litters 900 Orkobonvehicle The items will be procured
together and shipped to Uganda as
3 6 – row multipurpose planter 900 Orkobonvehicle one package from orkobonvehicle
4 4 discs – disc plough 800 Orkobonvehicle

5 16 disc harrow 680 Orkobonvehicle

6 Farm trailer – 20 tons 5400 Orkobonvehicle
7 Farm trailer hydraulic system 600 Orkobonvehicle
8 Tractor – 4wd 85 – Hp (MF 385 model) 5,200 Orkobonvehicle
Total 18,480

Note:
Orkobonvehicle contacts are: - WhatsApp: +90 536 336 28 56, website www.orkobonvehicle.com

The quoted prices does not cover the cost of shipping the equipment to Kampala. And excludes clearing and
forwarding costs as well as applicable taxes at the entry ports.

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