National Animal Feeds Policy

1 THE REPUBLIC OF UGANDA THE NATIONAL ANIMAL FEEDS POLICY Ministry of Agriculture, Animal Industry and Fisheries P.O.Box 102 Entebbe March 2005 - 2 - TABLE OF CONTENTS ACRONYMS .............................................................................................................. 4 FOREWORD .............................................................................................................. 5 EXECUTIVE SUMMARY ........................................................................................... 6 1.0 INTRODUCTION .................................................................................................. 8 1.1 Overview of the Agricultural Sector. ............................................................................................................ 8 1.2 Overview of the Livestock sub-sector ......................................................................................................... 8 1.3 Constraints in the livestock sub-sector ......................................................................................................... 9 1.4 The Animal Feeds Industry in Uganda ......................................................................................................... 9 1.4.1 Opportunities in the Animal Feeds Industry. ........................................................................................... 10 1.4.2 Constraints to the Animal Feeds industry. ............................................................................................... 10 1.5 Justification for the Animal Feeds Policy ................................................................................................... 12 1.6 Expected benefits of the Policy 13 2.0 THE NATIONAL ANIMAL FEEDS POLICY ...................................................... 14 2.1 The Broad Policy Framework ..................................................................................................................... 14 2.2 Vision ............................................................................................................................................................. 14 2.3 Mission ........................................................................................................................................................... 15 2.4 Goal ................................................................................................................................................................ 15 2.5 Policy objectives ............................................................................................................................................ 15 2.6 Guiding Principles of the Policy .................................................................................................................. 15 3.0 STRATEGIES FOR IMPLEMENTING THE POLICY ......................................... 17 4.0 INSTITUTIONAL FRAMEWORK FOR IMPLEMENTATION OF THE POLICY . 21 4.1 Public sector participation ........................................................................................................................... 21 - 3 - 4.1.1. Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) ........................................................ 21 4.1.2 The Animal Feeds Technical and Advisory Committee .......................................................................... 22 4.1.3 The Uganda National Bureau of Standards (UNBS) ............................................................................... 22 4.1.4 Chief Government Analyst ...................................................................................................................... 22 4.1.5 National Agricultural Research System ................................................................................................... 22 4.1.5 Local governments................................................................................................................................... 23 4.2 Private sector participation ......................................................................................................................... 23 4.2.1 Feed manufacturers and distributors ........................................................................................................ 23 4.2.2 Farmers .................................................................................................................................................... 24 4.2.3 Other service providers ............................................................................................................................ 24 5.0 FUNDING OF THE ANIMAL FEEDS INDUSTRY .............................................. 25 6.0 LEGAL FRAMEWORK FOR IMPLEMENTATION OF THE POLICY ................ 26 - 4 - ACRONYMS AFATC Animal Feeds Advisory and Technical Committee DMPS Dairy Master Plan Study DWD Directorate of Water Development FMP Fisheries Master Plan GDP Gross Domestic Product GOU Government of Uganda MAAIF Ministry of Agriculture, Animal Industry and Fisheries MPMPS Meat Production Master Plan Study NAADS National Agricultural Advisory Services NARS National Agricultural Research System PEAP Poverty Eradication Action Plan PMA Plan for Modernisation of Agriculture UBOS Uganda Bureau of Statistics UNBS Uganda National Bureau of Standards - 5 - FOREWORD The livestock sub-sector plays a key role in the socio-economic development of our country. It provides food, employment, export revenue as well as income to the farmers and other stakeholders. It is, thus, a major contributor to the government’s strategy for poverty eradication and improving peoples; welfare as envisaged in the PEAP. The potential of the country’s livestock sub-sector is very high given Uganda’s comparative advantage in the region in terms of agro-ecological conditions and strategic location. The history of the development of the livestock industry testifies to the potential in terms of production trends and product output volume since the early 1960s. Government is committed to providing a conducive environment for the continued development of the livestock industry. It is against this background that the Animal Feeds Policy has been developed. The policy gives a formal framework upon which the Animal Feeds industry will develop within the broader Plan for Modernization of Agriculture. It was formulated through a consultative and participatory process involving a wide spectrum of key stakeholders in both the public and private sectors, notably, policy makers’ traders, farmers’ organisations, academics, civil society, NGOs, and the development partners. Through this policy, Government intends to develop the local capacity of stakeholders to optimally utilize the feed resources in order to increase the supply as well as improve the quality of animal products and by-products and to maximize the economic and social benefits of the livestock sub sector. Government will also promote all technically feasible options and remove the major barriers in order to stimulate more innovative approaches by the stakeholders in the industry. In addition, it addresses crosscutting issues in the meat industry such as gender and environment. I wish to acknowledge the efforts of all the stakeholders who contributed to the preparation of this Policy. Special tribute goes to all the staff of the Ministry for their relentless efforts in the development of this policy document. It is my sincere hope and conviction that all of us will give the required support to make the implementation of the Animal Feeds Policy a success. Janat B. Mukwaya (MP) MINISTER OF AGRICULTURE, ANIMAL INDUSTRY AND FISHERIES. - 6 - EXECUTIVE SUMMARY Agriculture forms the base of Uganda’s economy, contributing 43% of the National Gross Domestic Product (NGDP) and providing raw materials for the industrial sector. Livestock is an integral part of the agricultural sector providing a renewable resource base for economic development. Livestock, which provide the bulk of animal protein in the country, contributes 7.4% of the NGDP and 17% of the Agricultural Domestic Production. It is a major source of income for the majority of the Ugandan rural population. Studies have shown that there is a great potential for this contribution to increase. However, there are constraints limiting the exploitation of this potential, among them, poor animal nutrition. This is in spite of the country’s favourable agroecological conditions and availability of ingredients for animal feeds. The animal feeds policy has therefore, been formulated to realize a vision of a developed animal feeds industry that contributes significantly to improved animal production and productivity, thus improving the welfare of the citizens and the national economy. The policy is structured into six chapters covering the following: 1) Introduction and background information 2) The Animal Feeds Policy 3) Strategies for Implementing the Policy 4) Institutional Framework for Implementation of the Policy 5) Funding of the Animal Feeds Industry and 6) Legal Framework for implementation of the Policy. The policy is based upon the principles of promoting participation of the private, providing a conducive environment for good manufacturing practice and quality control, promoting and stimulating a competitive animal feeds industry, providing a conducive fiscal and regulatory basis for the growth of the industry and putting in place suitable institutional framework and infrastructure for delivery of support services. . The policy specifically aims at stimulating increased feed production, ensuring quality animal feeds on the market, reducing production costs and building capacity among private and public sector for the development of the animal feeds industry. The policy spells out strategies for attaining these objectives that take into account the key national concerns of decentralisation, private sector participation, gender considerations and protection of the environment. The policy strategies for increasing animal feeds production include strengthening of research, availing credit to the industry, and encouraging increased production of raw materials for feeds production. They also include encouraging transfer of appropriate technologies, encouraging formation of farmers and manufacturers associations and developing rural infrastructure to increase access to raw materials. To ensure animal feeds quality, the policy spells out strategies which include: formulation of standards, rules and regulations to govern the industry. It in addition provides for the establishment of an institutional and legal framework to enforce these provisions. The implementation of the policy will be the responsibility of both the public and private sectors. The public sector will play a guiding, supporting and regulatory role in - 7 - implementation of the policy. It will provide support services to create an enabling environment for the private sector to invest in the industry. The private sector will take a leading role in the production and marketing of animal feeds. The private sector too, where possible will provide support services to the industry. The policy provides for the establishment of an Animal Feeds Advisory and technical committee composed of representatives of key stakeholders in the industry. The composition and functions of this body shall be spelt out in the Animal Feeds Bill. The committee will provide an advisory role in the implementation of the policy and enforcement of provisions in the Animal Feeds Bill. The Policy identifies sources of funding for implementation of the strategies spelt out. These sources include funding from government, donors, funds accruing from regulatory functions of the policy as well as private sector funding - 8 - CHAPTER 1 1.0 INTRODUCTION 1.1 Overview of the Agricultural Sector Agriculture is the largest economic sector, accounting for 43% of Gross Domestic Products (GDP) and 80% of employment. Most industries and services in the country are based on this sector and approximately 90% of total merchandise exports consist of Agricultural products. Food accounts for 47% of GDP of which 56% is from subsistence. It is estimated that only one third of total food produced is marketed. While the country is endowed with some of the best agricultural land in the region, with a relatively favourable climate, only 5 million hectares out of the 18 million hectares of arable land is under cultivation. Agricultural production grew by an average of 2.7% per annum from 1979 to 1980 and 3.7% from 1989 to 1999. For the last half of the decade (from 1995 to 2000), the growth rate has decreased slightly to 3.4%. 1.2 Overview of the Livestock sub-sector Livestock production constitutes an important sub sector of Uganda’s agricultural sector. It contributes significantly to the welfare of the population by:  Being the source of high value human food such as meat, milk and eggs;  Providing income to farmers through sale of animals and their products;  Serving as mobile banks from which the funds can be liquidated for other uses and  Using the dung as organic fertilisers for sustainable agriculture. Data from the 2000 Statistical Abstract by Uganda Bureau of Statistics (UBOS) shows that livestock production contributes about 16.9% to agricultural GDP equivalent to about 7.4% of total GDP. Livestock production grew by about 3% per annum from 1989 to 1998. Current estimated livestock population consists of 6.3 million cattle (of which 97% are indigenous breeds and only 3% are improved or exotic), 6.8 million goats, 1.1 million sheep, 1.7 million pigs, 32.6 million poultry, 55,000 rabbits and 28,576 equidae (Donkeys, Camels and Horses). It is estimated that mixed farming smallholders and pastoralists own over 90% of the national cattle herd and almost all the small ruminants, pigs and poultry - 9 - producing the bulk of the meat and milk. These production units are characterised by low output per animal and unit area, slow growth rates and small mature sizes. Livestock production from intensive systems of production accounts for only 10% of total livestock production. This system is characterised by high input-high output production, utilising high yielding germplasm. It is mainly peri-urban based and uses compounded animal feeds to supplement rations. 1.3 Constraints in the livestock sub-sector Livestock productivity is still very low whether measured in animal units or unit factor of production. Comparative performance figures for cattle and goat breeds are much lower than for exotic temperate breeds (MAAIF, 1997). This has been attributed to the following factors:  Prevalence of animal diseases, limiting increase in numbers and improvement in production.  Inadequate nutrition reducing livestock productivity. The legume content of pastures is very low and both digestibility and protein content are below requirements for high levels of animal production.  Water scarcity in the semi-arid areas. Currently, the capacity of the natural and man-made reservoirs to supply total livestock water demand is only 30%. (DWD, 2001).  Inadequate supporting infrastructure such as poor road network, lack of storage and processing facilities, quarantine stations, diagnostic and analytical laboratory facilities, holding grounds.  Lack of information, knowledge and skills concerning better methods of animal husbandry, soil conservation and pest and diseases control, marketing opportunities, prices and processing is a major constraint.  Lack of capital, limited financial management skills and failure to access financial services limits investment and thus improvement in livestock production, processing and marketing. 1.4 The Animal Feeds Industry in Uganda As noted above, one of the constraints limiting production is poor nutrition. For optimum production, especially improved breeds, there is a need to supplement the conventional feed resources with compounded feeds. The animal feed production has increased in recent years (from 32,000 mt in 1993 to 45,000 mt in 1999). Output, however, is unevenly distributed during the year due to limited product lines. Poultry feeds account for nearly 80% of all - 10 - feeds, followed by dairy feeds (20%). Feeds of other types include Hog meal, Rabbit pellets and Hound meal. Vitamins and mineral premixes are imported from Europe and Kenya and the other ingredients are obtained from local suppliers. 1.4.1 Opportunities in the Animal Feeds Industry. 1.4.1.2 Agro-ecological conditions Given Uganda’s good climate and the generally favourable balance of natural resources, there is considerable potential for increased livestock production. This potential can be harnessed by adopting, on a national scale, proper livestock management systems on natural pastures and forages, coupled with supplementary feeding using agro-industrial by-products that can be availed by a developed animal feeds industry. 1.4.1.2 Agro-industrial by-products. Survey findings indicate that there is an enormous potential for production of feed ingredients. Production of cereal grains and legume seed is increasing. However, the quantity of the ingredients available is reduced by the demand for human requirements for the same items. Fermentation by-products such as native beer residues and brewer’s grains are produced in large amounts in Uganda. Potential feed ingredients include maize, sorghum, cassava, sweet potatoes, cottonseed cake, soyabean, sunflower, fish, lake shells, bone ash, blood meal and bananas among others. This can give rise to considerable amounts of agro-processing by-products, which can be used for the manufacture of animal feeds. Uganda is well adapted to the production of soybeans, sunflower and groundnuts although the volumes are not adequate presently to support large scale processing of feeds. Cottonseed meal is readily available and the quantity appears to be adequate to support the formulation of mixed feeds. The major energy feed supplies are maize bran, bagasse and molasses. The sources of protein include cottonseed cake, sunflower cake and soybean meal. 1.4.2 Constraints to the Animal Feeds industry. 1.4.2.1 Lack of raw materials. Some of the constraints to efficient use of agro-industrial by products include bulkiness and high costs of transportation and, therefore, their use is limited to feeding livestock only in a given locality. Besides, there are several competing - 11 - uses for some of them, which include mulching, alcohol brewing, direct human consumption and fuel. 1.4.2.2 Seasonal variation in availability Output of raw materials varies from season to season. This leads to inconsistency in quality and quantity of animal feeds between firms and also within the same firm. 1.4.2.3 Weak market The domestic market for feeds is weak, with supplies of uneven quality both of ingredients and finished products. There are large variations in prices of some ingredients resulting in escalating costs of production. This problem applies to the domestic food market generally, due to low production and low levels of incomes. While some manufacturers of animal feeds have identified regional markets, specifically Rwanda and Kenya, issues of quality and limited capacity hampers full utilisation of this market. 1.4.2.4. Non supportive financial market. The financial market does not adequately cater for the livestock sub-sector. Poultry and dairy farmers have limited access to credit facilities, and this prevents significant expansion of the feed business. All major feed manufacturers do not have arrangements where farmers can be supplied with inputs (feeds) on credit. Many farmers have desires to increase their output but are constrained by lack of capital or favourable terms of input supply. 1.4.2.5 Lack of knowledge and skills Lack of information, knowledge and skills concerning good manufacturing practice in the production of animal feeds is a constraint. Most of the feed manufacturers, especially the small holders lack basic training in animal nutrition and feed milling technology. . This has led to poor quality feeds on the market. Several farmers have resorted to on-farm mixing to reduce costs of production. Others have abandoned farming altogether. This is further compounded by lack of quality extension services to empower farmers to demand for quality feeds. Besides, there are no regulations under which defaulting manufacturers can be put to task.. - 12 - 1.4.2.6 Science and technology development An effective national science and technology development programme can reduce the country’s dependency on a limited number of feed ingredient sources. There is currently very little research in alternative sources of feed ingredients or in feed processing technology. Skilled manpower in this field is lacking although Makerere University Faculties of Agriculture and Veterinary Medicine have specialised laboratories in feed analysis, which occasionally assist manufacturers. These institutions have however focused more on teaching and less on applied research. 1.4.2.7. Inadequate institutional support services There are many public and private sector entities that can assist feed manufacturers in obtaining information, solving technical problems, and improving their operations. Many of these services are, however, diffused and sometimes duplicated across agencies. At present there is no policy and institutional arrangement for regulation and guiding of the animal feeds industry. Other institutions which feed processors might depend upon for information like the Uganda Investment Authority, Uganda Manufacturers association, Uganda revenue Authority and Institutions of higher learning need to be coordinated to enable them to play their roles effectively. 1.5 Justification for the Animal Feeds Policy 1. According to the Meat Production Master Plan Study (MPMPS) and the Dairy Master Plan Study (DMPS), Uganda has a deficit in the per capita consumption of livestock products despite the largely untapped potential for increasing livestock production. These studies identify animal nutrition as one of the limiting factors to utilisation of this potential and recommend the formulation of policies and strategies in the animal feeds industry as well as the pasture and range resources to address these constraints. 2. Animal feeds account for 70% of production costs and, therefore, have a significant effect on the farmers’ production costs and profits. Presently, zero grazing and intensive units of dairy, poultry and piggery based on compounded animal feeds play a vital role in ensuring increased supplies of milk, meat and eggs to the urban populations. They are also a source of livelihood to poor peri-urban populations especially among the disadvantaged sections of societies like women and youth. - 13 - 3. The plane of nutrition has significant influence on the infection rate and disease resistance of animals. Inadequate feeding and insufficiency in feed quality are responsible in part for the low livestock and poultry performance in Uganda. 4. There is scope for promoting the Animal Feeds Industry within the framework of the Plan for Modernisation of Agriculture (PMA). The Animal feeds Industry provides opportunities for stimulating agro-industrial investments, value addition, reducing post-harvest losses and increasing shelf life of agricultural products. It lends itself to scientific applications and can contribute to accelerated agricultural modernisation. 5. Currently the lack of a policy and institutional and regulatory framework is hampering development of the industry and its contribution to the development of the livestock sub sector. It is, therefore, imperative that the animal feeds industry be upgraded and placed on a higher priority in agricultural development within the framework of private sector promotion and development. The national animal feeds policy is a first step in this direction. 1.6 Expected benefits of the Animal Feeds policy. The implementation of the Animal Feeds Policy is expected to result into the following benefits: 1. A strong animal feeds regulatory services system with the participation of both the public and private sector. 2. Increased and improved availability of quality animal feeds on the market 3. Improved animal nutrition, increased production and productivity and consequently increased returns on investment in livestock farming. 4. Increased incomes, food security and improved welfare of the farmers 5. Increased contribution of livestock to the national economy. - 14 - CHAPTER 2 2.0 THE NATIONAL ANIMAL FEEDS POLICY 2.1 The Broad Policy Framework The basis and operational context of the Animal Feeds Policy derives from the Agricultural Sector policy in general and the livestock sub-sector in particular. The overall policy of government is to marshal political and social forces towards economic development at all levels by building an independent integrated and self-sustaining national economy. Agriculture, being the largest sector, will be the engine of growth. Overall government policy is geared towards eradicating poverty in Uganda. This policy has been translated into the Poverty Eradication Action Plan (PEAP). The PEAP identifies the modernisation of agriculture as the cornerstone in the strategy for eradication of poverty, especially in the rural areas. Therefore, a Plan for Modernisation of Agriculture (PMA) has been developed. This plan provides the National Agricultural Development Policy Framework. Its goal is to transform subsistence agriculture into commercial agriculture. The PMA defines roles for both the public and private sector. It takes into account the liberalised environment in which feed manufacturers now operate and the GOU policies on decentralisation, privatisation, liberalisation, good governance and poverty eradication In addition to the thematic areas addressed in PMA, specific livestock development policies and strategies are contained in the Dairy Master Plan of 1993, The Meat Production Master Plan of 1998, the Small Ruminant and Rabbit development Strategy (SRRDS) of 1999 and the Delivery of Veterinary Services Policy of 2000. In addition the Fisheries Master Plan (FMP) of 1999 provides for the medium and long term development of the fisheries sub-sector including aquaculture. All these policies and studies recognise the need to develop policies to address the constraints that pertain to animal nutrition in general and animal feeds in particular. 2.2 Vision The vision of the animal feeds policy is: A developed feeds industry that contributes to increased livestock production and productivity thus contributing to the welfare and incomes of livestock raisers, feed manufacturers and distributors. - 15 - 2.3 Mission The mission of the policy is: To ensure a sustainable development of the Feds Industry that satisfies the national feeds requirements, provides excess for export and increases incomes for all involved in the industry. 2.4 Goal The policy goal is: To improve the livelihoods of the people by increasing livestock production and productivity through improved animal nutrition. 2.5 Policy objectives The livestock sub sector objective is “to contribute towards maximisation of the potential of Uganda’s livestock sub-sector on a sustainable yield basis within the framework of sound environmental management limits”. Improved animal nutrition will be achieved through improved production and utilisation of compounded animal feeds and forage. The broad objective of the Animal Feeds Policy, therefore, is To promote, support and guide the manufacture and marketing of animal feeds. The specific objectives are:  To stimulate increased feed production and availability  To ensure quality animal feeds on the market and protect end users against improperly formulated, contaminated, decomposed and deceptively packaged or labelled feeds  To put in place strategies for reducing production costs and ensure that producers cater for their interests as well as those of livestock farmers with regard to feed prices and profitability; and  To build capacity among private and public sector for the development of the animal feeds industry. 2.6 Guiding Principles of the Policy The Animal Feeds Policy is guided by the national macro-economic and public service policy reforms. These include liberalisation, privatisation and decentralisation. The policy is based on the following principles: - 16 -  Promoting participation of the private sector to produce and market quality animal feeds  Providing a conducive environment for good manufacturing practice and quality control in animal feeds production.  Promoting and stimulating a competitive animal feeds industry in the country in particular and the region in general to ensure value for money to the end users of animal feeds.  Providing a conducive fiscal and regulatory basis for the growth of the animal feds industry.  Put in place suitable institutional framework and infrastructure for delivery of support services. - 17 - CHAPTER 3. 3.0 STRATEGIES FOR IMPLEMENTING THE POLICY In addition to the guiding principles stated in 2.6, the strategies for implementing the policy will take into account the following key concerns: (i) Empowerment of stakeholders The policy will promote the involvement of all categories of stakeholders in the animal feeds industry (farmers, animal feeds manufacturers, traders, policy makers, local governments, civic organisations and other service providers) in the identification of priority needs, planning and implementation of programs to improve the animal feeds industry. (ii) Decentralisation of delivery of services In conformity with the local government Act (1997), the animal feeds policy will promote decentralisation of delivery of services to local governments. This will bring the services nearer to the stakeholders, making them cost effective and relevant to their needs. These will include advisory services, training, participatory research, regulatory services, monitoring and evaluation. (iii) Strengthening private sector participation Government recognises the private sector as the engine for economic growth. It will therefore divest itself from direct commercial activities. The private sector will be the lead agency in the manufacture, marketing and utilisation of animal feeds. (iv) Gender considerations Women constitute more than 50% of the farmers who use animal feeds, especially on the intensive poultry, piggery and diary farms. The policy will ensure that their special needs and interests (such as smallholder units, limited capital, access to labour) are taken into consideration. (v) Environmental considerations Sustainability of agricultural activities in general and animal feeds manufacture in particular depends on proper utilisation of natural resources. The policy will take into consideration issues of environmental degradation and pollution during production, marketing and use of animal feeds. - 18 - The following objectives will, inter-alia, be focused on: Uganda’s forage resources need to be supplemented with supplementary feeds if increased animal production and productivity is to be attained especially under the intensive production systems. Current animal feeds production cannot satisfy national demands throughout the year. Uganda can increase production if the conducive environment and abundant fisheries resources are harnessed. In order to ensure adequate feed supply at all times for national needs as well as for the regional market, the following strategies shall be adopted:  Strengthen research in animal nutrition to identify alternative sources of especially energy and protein sources that are not in direct competition with industrial use or human consumption;  Facilitate availability and accessibility of credit especially to the small feed manufacturers and input suppliers in order to increase their production capacity;  Encourage increased production of raw materials for feed production;  Develop rural infrastructure to enhance access to raw materials;  Promote use of appropriate technologies by strengthening advisory services in collaboration with National Agricultural Advisory Services (NAADS) and the private sector;  Encourage use of transferable technologies to expand small scale feed producers and  Encourage formation of farmers and manufacturers associations to ease extension delivery, acquisition of credit and other services. The quality of animal feeds on the market is poor. This is due to the fact that there is no regulatory mechanism and standards for production and marketing of animal feeds. In order to ensure quality feeds on the market, to protect farmers and gain confidence of the regional market, the following strategies will be adopted: 3.1 Policy: Promotion of increased and sustainable animal feeds production and availability will improve the nutrition of animals and increase productivity of farm animals 3.2 Policy: Assurance of quality animal feeds will protect the farmers and their animals against improperly formulated, contaminated and deceptively packaged feeds - 19 -  Formulating and regularly reviewing of National Animal Feeds Standards , regulations and guidelines;  Putting in place institutions for enforcing the set standards in animal feed production and marketing;  Establishing an effective animal feeds inspectorate;  Setting up a legal framework to control and regulate animal feeds production, importation and marketing;  Encouraging the development of private feeds analysis laboratories;  Strengthening and setting up public referral laboratories;  Training of relevant staff on aspects of good quality feed production;  Conducting research on feed safety, quality and related activities and  Encouraging regional and international collaboration in the area of feed production, research and quality control; Animal feeds constitute 70% of the costs of production in intensive livestock production. At the current market prices of animal feeds, the livestock raisers are left with a minimal profit margin. In order to ensure that animal feeds producers supply feed at prices affordable by the farmers, the following strategies shall be adopted:  Encouraging the private sector to set up storage facilities to cater for seasonal variations in ingredient availability;  Encouraging use of alternative sources of energy and protein that are not in direct competition with human consumption;  Promoting use of agro-industrial by-products in the production of animal feeds and feedstuffs;  Encouraging stakeholders to form groups for joint marketing strategies to reduce transport costs and  Promoting competition in the feed industry to ensure quality, efficiency and pricing. 3.3 Policy: The reduction of costs of animal feeds will increase the profitability of the enterprises for the feed producers and farmers alike - 20 - It is imperative that farmers, stockists, feed manufacturers and other stakeholders in the animal feeds industry know what to look for if they are to promote use of good quality feeds. Currently, knowledge and skills in quality animal feeds production is lacking among the producers and the extension service providers. In order to build capacity for quality animal feeds production, the following strategies are to be adopted:  Carrying out regular training of personnel in public and private sector in animal nutrition;  Carry out sensitisation and awareness creation activities for all stakeholders using the mass media (radios, television and news papers), exhibitions at agricultural shows, production and dissemination of posters, pamphlets and booklets.  Ensure that manufacturers have trained technical personnel and  Ensure that manufacturers have suitable equipment and infrastructure for quality production. 3.4 Policy: Capacity building for production of quality animal feeds will ensure sustainability in supply and maintenance of required standards for the domestic as well as export markets. - 21 - CHAPTER 4 4.0 INSTITUTIONAL FRAMEWORK FOR IMPLEMENTATION OF THE POLICY The animal feeds industry is currently private sector-led, but lacks an institutional framework to guide and regulate it. Efficient and effective operation of the industry and its impact on production and consumption of animal products necessitates a mechanism of regulation. There are several institutions whose roles are very important in this industry and the institutional arrangements discussed in this chapter are aimed at spelling out their roles in implementation of the policy. Both the public and the private sector will have responsibilities for implementing the animal feeds policy. 4.1 Public sector participation The main role of the public sector will be facilitatory, creating an enabling environment for other stakeholders involved in the production, processing and marketing of animal feeds. 4.1.1. Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) The Ministry responsible for the Animal Industry and Fisheries (MAAIF) will be the key central government institution that shall be responsible for the coordination of the animal feeds industry. It will have overall responsibility for policy formulation, setting standards and quality control and monitoring. Specifically, the department responsible for animal nutrition in the ministry will undertake the following functions:  Registration and licensing of feed manufacturers, importers and distributors;  Technical guidance and monitoring of the development of the animal feeds industry;  Inspection, certification and enforcement of the rules and regulations governing the production and marketing of animal feeds in collaboration with local governments;  Establishment and maintenance of an effective information gathering and dissemination system on the feed industry;  Setting and regularly reviewing National Standards for Animal Feeds in collaboration with Uganda National Bureau of Standards (UNBS) and other stakeholders; - 22 -  Training of agricultural advisory service providers in aspects of animal nutrition and feeds quality control.  Encouraging manufacturers and farmers to form associations/co-operative societies to enable them access services such as credit;  Collaboration and linkage with other stakeholders, nationally, regionally and internationally regarding animal feed resources and feeding systems and 4.1.2 The Animal Feeds Technical and Advisory Committee Government will establish an Animal Feeds Technical and Advisory Committee to be housed within the MAAIF. The establishment and composition of this committee shall be spelt out by the Animal Feeds Act. It will have representation of stakeholders from both the public and private sectors. The key functions of the committee shall be the following:  To advise government on policy, regulations and standards in the animal feeds industry;  To guide and advise on the registration and licensing of animal feeds manufacturers, importers and distributors;  To monitor and review the regulatory framework and  To advise government on other matters pertaining to the development of the animal feeds industry. The secretariat will be the department responsible for animal nutrition. 4.1.3 The Uganda National Bureau of Standards The UNBS shall link with the Ministry of Agriculture, Animal Industry and Fisheries through their representative on the Animal Feeds Advisory Committee. Its role will be collaboration regarding the setting and reviewing of the National Animal Feeds Standards and quality assurance. 4.1.4 Chief Government Analyst The government chemist shall be involved in the analysis of feed samples and will also be responsible for checking on the efficiency of other animal feeds laboratories. 4.1.5 National Agricultural Research System The National Agricultural Research System (NARS), composed of institutions in the public and private sector (Public research institutes, Universities, - 23 - Agricultural colleges, Civic organisations, individual researchers), shall take the responsibility for the research aspects of the policy.. The system will perform the following functions:  To identify research priorities in consultation with the government and other stakeholders based on demand and needs;  To formulate and implement research projects and programmes;  To collaborate with other research programmes regionally and internationally;  To carry out feed analysis and monitoring of feed quality in support of the regulatory services;  To participate in setting and reviewing of the National Feed Standards and  To provide technical support and training to stakeholders 4.1.5 Local governments In conformity with the government policy of decentralisation, the local governments will have the following roles in implementing the animal feeds policy:  Facilitating and supporting animal nutrition extension services;  Mobilising manufacturers, distributors, retailers and farmers to promote the formation of societies and associations;  Mobilising manufacturers, distributors, retailers and farmers to facilitate training in all aspects of animal nutrition and feed manufacturing;  Encouraging the establishment of feed mills, seed production and utilisation of agro-industrial by-products for animal feeding;  Supporting and maintaining basic rural infrastructure to promote distribution and marketing of animal feeds and  Supporting enforcement of animal feeds standards and regulations. 4.2 Private sector 4.2.1 Feed manufacturers and distributors In line with government policy of promoting privatisation and liberalisation, the private sector will play a leading role in the manufacture and marketing of animal feeds. The government will, through its industrial development policy framework, encourage the formation of special interest groups for the purpose of fostering the development and growth of the animal feeds industry. These will be co-ordinated within by Uganda Manufacturers Association. Under such - 24 - arrangements, the feed manufacturers will be promoted so that they participate in fostering their industry through:  Offering advisory services to farmers;  Representing members’ interests on the Technical and Advisory Committee;  Participating in policy formulation and identification of priority areas for research;  Mobilising credit for their members;  Liaising with other groups or associations of relevance to their cause for promoting the animal feeds industry;  Supporting capacity building of their members and  Promoting delivery of quality feeds services to their clients. 4.2.2 Farmers Farmers will be the key determinants of the relevance and effectiveness of the animal feeds policy, as they are the ones who will use the feeds to enable the target animals to active high production and productivity in a cost effective manner. Their key roles will, therefore, include the following:  To provide feedback to government and other stakeholders on the performance of the animal feeds on the market;  To report to the relevant authorities any malpractices observed in the feed industry and  To advise government on priority needs regarding the delivery of services to farmers such as extension, research, inputs and credit. 4.2.3 Other service providers There are several other stakeholders who will directly or indirectly have roles to enhance the development of the animal feeds industry. These include stockists, marketing agencies and private advisory service providers. - 25 - CHAPTER 5 5.0 FUNDING OF THE ANIMAL FEEDS INDUSTRY The funding of the animal feeds industry will be by both the public and private sectors. Government will play a leading role in funding the Animal Feeds regulatory services. It is proposed that, under the Animal Feeds Bill to be enacted, licensing and registration fees will be paid by feed manufacturers, dealers, importers and exporters. This money will be utilised to support the regulatory services. Under NAADS, government will support the delivery of advisory services to farmers by the private sector. In addition, feed manufacturers and NGOs will be encouraged to extend advisory services to farmers with regard to use of the animal feeds. Regarding research, government will fund core research programmes that are of strategic interest to the nation. The private sector will be encouraged to fund research programmes that are of direct benefit to their enterprises in particular and the animal feeds industry in general. - 26 - CHAPTER 6 6.0 LEGAL FRAMEWORK FOR IMPLEMENTATION OF THE POLICY For purposes of implementing the Animal Feeds policy, the Animal Feeds Bill shall be formulated and enacted by parliament. The objectives of the Animal Feeds Act shall be to provide for:  Regulation of production, importation, export and marketing of animal feeds  Establishment of the Animal Feeds Advisory and Technical Committee (AFATC)  Funding of the Animal Feeds regulatory service  Institutional framework for enforcing the Policy