Agricultural investment, gender and land:
Lessons from an IFAD-supported project in Uganda
24 March 2014
Presented by Connie Magomu Masaba,
Project Manager
Annual World Bank Conference on Land and Poverty
World Bank, Washington DC
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project – Phase II
1
Vegetable Oil Development Project
Main
partners:
smallholder
farmers,
Government of Uganda and private sector
(Bidco)
Support production and processing of oil palm
to reduce reliance on imported vegetable oils
and address low per capita vegetable oil
consumption
Combining small-scale production with largescale processing and integrating small-scale
producers into the wider economy
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
2
Business model - Overview
Nucleus estate and contract farming
Smallholders: 1,600 farmers (600 women)
harvest ffb & sell to OPUL; cultivate 3500ha
KOPGT: Intermediary between OPUL and
farmers; provides services to farmers (extension,
loans, transport,…)
OPUL: Buys ffbs; manages nucleus estate of
6500ha and oil palm mill
GoU: Purchased and leases land for nucleus
estate;
support
smallholder
involvement
(including KOPGT); transportation infrastructure
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
3
Business model - Overview
Gender analysis and needs assessment at onset
Women are engaged in the project in their own
right as landowners or tenants, as wives of
landowners or tenants, or as plantation workers
Increasing impact on gender equality and
strengthen women’s empowerment by:
promoting economic empowerment
enabling women and men to have equal voice and influence in
relevant institutions and organisations
Fostering a more equitable balance in workloads and in the
sharing of economic and social benefits
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
4
Business model - Ownership
Farmers have a 10% minority share in OPUL and BUL
owns the remaining 90%
Land rights remain vested in smallholders, while BUL
leases nucleus estate
Nucleus estate: unencumbered public land and purchase
of private land on a willing seller-willing buyer basis
Increase women’s access to land (encumbered public
land,
purchased
private
land,
sharecropping
arrangements, land fund, legal support, sensitization of
men)
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
5
Business model - Voice
Wide consultations with farmers and communities before
implementation
Farmers can influence decision making of company
10% share in OPUL
Representation on OPUL board
Representation on Oil Palm pricing committee
Representation on the services cost panel
Farmers’ interests represented by KOPGT and KOPGA
Democratic elections
Representation at different levels (units, blocks, district)
Annual general meeting
Strengthen women’s membership & participation
Access to land, max and no min acreage, 578 women
Quota of 30%, acceptance of male community members
KOPGT staff and management
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
6
Business model - Risks
Stakeholders bear different risks:
Smallholders:
Purchase price determined through fluctuating market prices
Production risks linked to weather, pest and other factors affecting
harvest (mitigation: loans and “in kind” repayment system)
Production risks linked to land tenure situation (mitigation:
demonstration of legitimate access to land)
Risk associated with loans (mitigation: co-guaranteeing approach)
Risk of having ffb unduly rejected (mitigation: inspection officer)
OPUL:
Market risk as it has committed to purchase produce at
guaranteed prices (demand is still very high)
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
7
Business
model
Reward
Farmers (of which 36% women)
Improved and steady incomes ($390/month); fair price
Say in decision-making of company
Access to support package
Extension (appropriate venue, timing & material; female officers;
attention to basic business and marketing skills)
Inputs
credit (entry requirements do not exclude women)
Assured market for produce
Private sector
Increased production (commercial benefits from investing in women)
Increased sales
Co-investment by farmers and government
Government
Increased tax incomes
Increased investment in agriculture-FDI and New industry in place
Employment creation
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
8
Farmers
Early results
578 women engaged in the project in their own right
Investment in housing, schooling, farm and off-farm busninesses
Improved land rights (landless and women, purchase of land, demonstration of
legitimate access to land, legal support)
Empowerment
Community
Creation of employment (2,000 employed on nucleus estate, 500 in farmer
gardens and 1,600 directly as farmers)
Address gender disparity (household mentoring)
Improved infrastructure (e.g. 750 km of road network and ferry service) and
services (e.g. financial and public)
Production in other crops, livestock and complementary agricultural activities,
tourism and other non-agricultural enterprises is expanding
Illegal logging is down and less reliance on dwindling fish stocks
Contribution of OPUL to the local government revenue of Kalangala District is
being invested in improving facilities (schools, clinics, etc.) and infrastructure
(roads and electricity)
Increased economic activities (business and tourism)
Poverty reduction
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
9
Lessons Learned
Effective partnership between rural smallholders and the
private sector with positive development outcomes is
possible
Governments can play a positive role in agricultural
investment projects (policy environment, mobilising
smallholders, infrastructure and building trust)
Choice of the business partners is very important
willingness to work with smallholders
Inclusion of smallholders in all decision-making
processes has been key to the project’s success
Building partnerships takes time
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
10
Conclusion
Business models that support local farmers are more promising and
make good business sense
Farmers have proved to be highly dynamic and responsive to market
forces
Success of partnerships depends on the level of ownership, voice,
risk-sharing and benefit-sharing between partners
Mutually beneficial partnerships require sustained support by a range
of service providers (government, civil society, private sector)
Pro-active measures are needed to improve the opportunities for
women
Gender analysis at start
Increasing women’s membership and participation
Ensuring women benefit from technical training, extension
services and production inputs
Promote gender equality and women’s empowerment at
household level
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
11
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
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Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
13
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
14
Nabukera and her Husband Musimenta
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
15
Nabbosa’s Houses
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
16
Tabitha’s houses
Ministry of Agriculture, Animal Industry and Fisheries
Vegetable Oil Development Project
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