The Agriculture Cluster Development Project (ACDP)

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The Agriculture Cluster Development Project (ACDP)

The Agriculture Cluster Development Project (ACDP)

MINISTRY OF AGRICULTURE, ANIMAL INDUSTRY AND FISHERIES

THE AGRICULTURE CLUSTER DEVELOPMENT PROJECT

The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), with support from the World Bank is implementing the Agriculture Cluster Development Project (ACDP). The project arose from the need to implement the Ministry’s comprehensive plan to operationalize the Agriculture Sector Development Strategy and Investment Plan 2011/12 – 2014/15 (now Agriculture Sector Strategic Plan 2015/16 – 2019/20) and in line with the Uganda National Development Plan.

Project Development Objective

To Raise On-farm Productivity, Production, and Marketable Volumes of maize, beans, cassava, rice, and coffee in Specified Geographical Clusters

Project Components

The activities and investments to be supported under ACDP are organized in four comprehensive components:

  1. Supporting intensification of on farm production:
  • Enhance availability and use of agro inputs (seeds, fertilizer and pesticides) as well as availability and access to household postharvest and storage facilities
  • Support provision of subsidized agro-inputs inputs to farmers through an Electronic Voucher (e-voucher) system
  • Build farmers’ capacity and knowledge on value chain development
  1. Preparation for agricultural water management investments:
  • Support studies to prepare for irrigation and drainage infrastructure investment in lowland rice paddy settings;
  • Support development of designs and business models for smallholder irrigation systems in coffee;
  • Promote sustainable water management practices and infrastructure operation and maintenance through support to farmer organisations.
  • Strengthen the irrigation unit of MAAIF.
  1. Market linkages, storage and value addition:
  • Provide matching grants to Area-based Commodity Cooperative Enterprises to improve their capacity for marketing, post-harvest handling and value addition of farm produce
  • Address bottlenecks and trouble spots on rural access roads to ease market accessibility
  1. Project management, policy, regulatory and ICT functions of MAAIF:
  • Facilitate effective management and coordination of the project
  • Strengthening MAAIF’s effectiveness to carry out its roles with respect to policy and regulations affecting agricultural input and output markets
  • Strengthen ICT and Monitoring and Evaluation functions at MAAIF to enable effective real time coordination and management

Project Beneficiaries

The core beneficiaries of ACDP are small holder farmers and other value chain actors at the local, district and national levels. The project will benefit 450,000 farm households, which is expected to translate to about 2.2 million Ugandans across the 42 Districts

Eligibility:

To benefit from ACDP, a farmer should:

  1. Be a member of a registered farmer association/cooperative.
  2. Be Ugandan and in possession of a valid National Identity card
  3. Be willing to commit at least one acre of the land for the project commodity
  4. Be willing to co-fund purchase of inputs.

ACDP is rolling out a subsidy programme where farmers will be expected to co-fund purchase of inputs.

In the first season, the farmer will contribute 33% of the cost of inputs while the project will contribute 67%; Second season will be equal contribution by the farmer and project i.e. 50:50; in the third season, the farmer will contribute 67% and project 33%. It is expected that by the fourth season, the farmer will have matured to take up full cost of his/her inputs. The project emphasizes economic empowerment through increased household income

Project Geographical Coverage

The project will be implemented in 42 districts across Uganda. These have been grouped into 12 commodity clusters.  A commodity cluster is an area covering on average of 2-3 districts with proven production potential for at least 2 of the selected commodities. A cluster facilitates concentrations of producers, agribusinesses, and institutions, usually in the same sector, to work together in addressing common challenges and opportunities. The selection of the clusters is based on high potential for production, existing infrastructure and experience in the production of the commodities. The cluster approach provides opportunities for economies of scale, utilization of common market infrastructure, input and output bulking, and enhanced value addition.

Project implementation has kicked off in five pilot district, each with one commodity as follows; Iganga (Maize), Ntungamo (Beans), Kalungu (Coffee), Amuru (Rice) and Nebbi (Cassava). Lessons learned from the pilot Districts will guide a phased roll out of the project to 42 Districts across Uganda.

Clusters and Districts to be covered under ACDP

 

Cluster 1 Masaka Maize and Robusta Coffee
Mpigi
Rakai
Kalungu
Cluster 2 Iganga Maize and Rice
Bugiri
Namutumba
Cluster 3 Pallisa Rice and Cassava
Tororo
Butaleja
Cluster 4 Kapchorwa Maize and Arabica Coffee
Bukwo
Mbale
Cluster 5 Soroti Rice
Serere
Kumi
Cluster 6 Amuru Rice, Beans and Robusta Coffee
Nwoya
Cluster 7 Apac Rice, Beans, Cassava and Robusta Coffee
Kole
Oyam
Lira
Dokolo
Cluster 8 Kabarole Maize, and Coffee (Robusta and Arabica)
Kamwenge
Kasese
Cluster 9 Kyenjojo-Kyegegwa Maize, Beans and Robusta Coffee
Mubende
Kibaale
Cluster 10 Hoima Maize, Rice and Robusta Coffee
Masindi-Kiryandongo
Cluster 11 Ntungamo Beans and Robusta Coffee
Kabale
Bushenyi-Isingiro
Cluster 12 Nebbi Cassava and Arabica Coffee
Arua
Yumbe
Maracha

 

The Karamoja region is not covered under ACDP because it has a special intervention under the Regional Pastoral Livelihoods Resilience Project.

E-Voucher

The key instrument that will be utilized for the delivery of ACDP subsidy programme is the e-voucher system. Through the e-voucher system, farmers will access their input subsidies electronically. Access to the inputs will be through a simple 7-step e-voucher process: