BUSINESS PLAN, FOR THE;

ESTABLISHMENT OF APIARY AND SESAME (SIMSIM) ENTERPRISES

KITGUM DISTRICT, KITGUM MATIDI SUBCOUNTY

SUBMITTED TO:
CHILD FUND INTERNATIONAL IN UGANDA (HEEC PROJECT)
KITGUM DISTRICT

CONTACT PERSON:
GRANT PROJECT OFFICER HEEC
MR. GEORGE MASSA

SUBMITTED BY:
WATUTE PI KWO FARMERS GROUP
(EDITED BY: HALLMARK DEVELOPMENT AGENCY)

CONTACT PERSON:
..
CHAIRPERSON

DATE OF SUBMISSION: MARCH 2014

Enterprises: Apiary and Sesame (simsim)

Background
Watute Pi Kwo Farmers Group comprises of 27 youth and caregivers (21 female and 06 male) whose
children or who are themselves enrolled for support under the Child Fund International Household and
Economic Empowerment project-HEEC. The group is found in Kitgum District, Kitgum Matidi Sub-County,
Ibakara Parish, Pakumu village. The group has undergone training in farming as a business which culminated
into choosing suitable agricultural enterprises for itself. Apparently the group chose Sesame (simsim) and
apiary farming as enterprises they can succeed in with the following mission statement;
Vision: Financially secure households for individual group members and a model apiary group for Kitgum
Kitgum district.
Goal:

To raise 28,500,000/= from Sesame and Apiary enterprises by end of 2014.

Objectives

To grow 5 hectares1 (15 acres) of improved sesame (simsim) variety and produce 5,250 kg of sesame
seeds on land secured by group members by November 2014.
To launch 50 bee hives in the groups locality and produce 1,250 kg of crude honey by November
2014.

Apiary production
In Africa an apiary should contain only about 10 hives per km2 (to ensure they get adequate food) Owing to
the aggressive nature of African bee, it is not advisable to place hives right on the farm but near it; 100-200
metres away from crops is good. It is important to keep hives away from fertile spots of the farmland. Bees
can travel 3km to visit a plant.
The ideal apiary site should be; away from play grounds and noisy commercial or industrial areas;
near a fresh water supply: the banks of a river, lake, fish pond, or even dripping faucet; near food sources,
e.g. citrus, avocado, shear butter, neem, eucaplytus plantation, waste or marsh land; fairly dry, away from
swampy or flooding valley or any land with stagnant water; accessible to good roads; on the lee ward side of
a hill, with rainfall not exceeding 1,250 mm a year; and away from smoke and fire, danger of vandalism and
unfriendly neighbors
Bait the beehive with any one of the following materials: a little raw beeswax, dry cassava flour, molasses,
lime/lemon, cow dung, lemon grass, or a dish of water
Installation: A hive can be suspended between two trees or from sturdy branches of big trees. You need to
test the strength of the branch on which you intend to hang the hive because it can weigh as much as 60 kg.
Inspect the area or tree, be sure its ant free. If there is ant avoid it.
Yield from a Kenya Top Bar (KTB) hive is about 40 kilos a year2.

1
2

Most groups look at their gardens in terms of hectare (2.5-3 acres) but the technical calculations are done in acres
The DAO Kitgum puts the realistic yield at 25 kg per hive per year

Sesame (simsim) agronomy

Sesame oil is used as a salad or cooking oil and in shortening, margarine and soap. It is considered the
queen of vegetable oils.
Sesame is highly drought resistant and grows best in areas where cotton does well like in Kitgum district.
The crop ranks sixth in the world production of edible oil seeds.
Sesame prefers fertile, well-drained soils and is not salt tolerant. Medium textured soil is most favorable.
Sesame prefers neutral to slightly alkaline Ph, with moderate fertility. Sesame does not like heavy clay soil or
irrigation water containing high concentration of salt.
The crop being of tropical origin thrives in areas where temperatures remain high throughout the growing
season (110 150 days). Sesame needs to be planted in good moisture and covered shallow (075 to 1.5
inches). A row width of 27 to 40 inches has shown to be adequate for sesame production. A planting rate of
3 kg per ha applies on a 40 inch row space. Sesame varieties grown commercially require 90 to 110 days
from planting to reach physiological maturity. The crop yield in this region according to FAO is at 600 kg per
acre3.
Sesame thrives quite well in the conditions that this agricultural zone II (North Eastern Savannah grass lands)
offers.
Crop type
Simsim
Apiary

Area/hives
15 kg
50 hives

Out-put (kg/acre/hive)
350 kg
25 kg

Total output (kg)

5,250
1,250

Technical feasibility
Northern Uganda is located in a seasonally dry tropical area (4-6 dry mo/yr) which favors Sesame and Apiary
production. Simsim/sesame and apiary are among the enterprises marked as eligible to grow in agriculture
zone II (North eastern savannah grass lands) by the governments NAADS program. The zone has an
adequate amount of rainfall (an average of 1,197mm), favorable temperature (15-32C), terrain (generally
flat with isolated hills) and soil type (moderate to poor) suitable for the crops production.
The location where the group intends to establish their apiary farm is well drained with access to adequate
water supply. There is also available a good number of trees in which the hives can be nested.
Physical resources and in-put assessment
The group has adequate resources for this enterprise, from their own contribution and the grant by Child
Fund International. The group will provide land and most of the labor needed to realize the goals of these
enterprises. CFI will provide the group with most of the in-puts needed including beehives, equipment,
seeds, oxen, pesticide, and farm implements among others.

Labor requirements and availability

However the Kitgum District Agricultural Officer contends that only 350 kg can actually be produced from one acre.

The group members will provide all the labor needed to run the two enterprises as set out in the financial
plan below. Most group members are physically fit or have members of their HHs who are fit enough to
engage in these activities. With CFI support group members will be in position to bridge the labor gap
despite labor demands on their own individual farms.
Operation and management
The group shall have a by-law to guide its management and operations. The groups leaders (Chairperson,
Treasurer and Secretary) shall be elected from among its members. The groups meeting to discuss
operation and management issues shall be convened at least once a month. A strict book keeping shall be
undertaken for the groups financial accounts. With time the group will engage in VS & LA to ensure better
management and utilization of revenue generated.
Market plan
Enterprise

Target
market

Buyer

Kitgum

Town
Council,
Lira,
Pader, and
Export
Unprocessed Kitgum

Honey
Town

Council,
Lira,
Pader, and
Export
TOTAL REVENUE
Simsim
(Sesame II)

Produce buyers

Processors
Households

Expected
quantity
(per
acre/hive)
to sell
350 kg

Number of Market
acres/hives price
UgX/Kg

Marketing
cost/unit
UgX

15

4,000/=

21,000,000/=

25 kg

50

6,000/=

7,500,000/=

28,500,000/=

Strategy to succeed in the market

Bulking; by producing large quantities of sesame & honey and joining forces with other individual
farmers, the group hopes to get a good price for its final products hence earning better revenues.
Value addition; the group intends to undertake value addition for its sesame and honey through
proper preservation, sorting, grading, grinding, filtration and packaging. This will result into a
marked increase in the value of the products per unit hence fetching better revenues for the group.
With value addition the group will potentially double its revenue from the enterprises.
Opening outlets and working with agents; this will ensure a robust distribution network for the
groups products ensuring that every marketing opportunity is well exploited. Designated shops
shall be offered discounts to sell and promote the groups products.

THE BUDGET (IN UGX)

Income
Item
Quantity Unit
Unit price Value
Sale of simsim
5,250 Kilos
4,000 21,000,000
Unprocessed honey
1,250 Kilos
6,000
7,500,000
Total income
28,500,000
Costs
Variable costs
Item
Quantity Unit
Unit Cost Amount
Simsim seeds (improved variety)
45 Kilos
7,000
315,000
Pesticides
5 Litre
40,000
200,000
Anticide
2 Litre
40,000
80,000
Labor pesticide application
5 Hectare
20,000
100,000
Anticide application
2 Rounds
50,000
100,000
Labor-bush clearing
5 Hectare
60,000
300,000
Labor Raking
5 Hectare
15,000
75,000
Labor planting
5 Hectare
60,000
300,000
Labor-weeding
5 Hectare
60,000
300,000
Labor harvesting simsim
5 Hectare
100,000
500,000
Setting-up the bee hives
50 Hives
3,000
150,000
Bush clearing under the hives
2 Rounds
60,000
120,000
Spraying anticide
2 Rounds
60,000
120,000
Security at the time of harvest
2 Harvests
60,000
120,000
Harvesting honey
100 Hives
5,000
500,000

Notes
Per Kilo

3 kg per acre
3 acre per litre
20,000/= per hectare

15,000/= per hectare

To spray all fifty hives twice

The fifty hives will be harvested

twic a year
60,000 Treated twice in a year
3,340,000

Oxen treatment
2 Rounds
30,000
Variable cost total
Fixed cost (capital cost)
Item
Quantity Unit
Unit cost Amount
Bee hives (KTB) (with bee wax)
50 Hives
100,000
5,000,000
Binding wire (for hanging hives)
5 rolls
10,000
50,000
Handling containers
1 Assorted 100,000
100,000
Bee keeping equipment
1 Set
400,000
400,000
Simsim and g/nut paste mill
1 Set
1,000,000
1,000,000
Ox ploughs
1 Piece
200,000
200,000
Yoke
1 Piece
40,000
40,000
Oxen
2 Bull
800,000
1,600,000
Tapulins (for drying simsim)
5 Sheet
40,000
200,000
Planting rope
2 Roll
4,000
8,000
Two-wheeled cart
2 Set
200,000
400,000
Rake
20 Piece
5,000
100,000
Axe
20 Piece
8,000
160,000
Hand hoes
20 Piece
10,000
200,000
Fixed cost total
9,458,000

PROFITABILITY
Gross4 profit = Total revenue total variable cost
Gross profit = 28,500,000/= 3,340,000/=
Gross profit = 25,160,000/=

Before a 10% annual depreciation of available fixed assets is deducted

Activity
CASH IN-FLOW
Sale of simsim
Unprocessed honey
Cash available
CASH OUT-FLOW

CASH FLOW AND AVAILABILITY

QTR I 2014
QTR II 2014
QTR III 2014
-

4,500,000
4,500,000

3,000,000
3,000,000

Simsim seeds (improved variety)

Pesticides
Anticide
40,000
Labor pesticide application
50,000
Anticide application
50,000
Labor-bush clearing
300,000
Labor Raking
75,000
Labor planting
Labor-weeding
Labor harvesting simsim
Setting-up the bee hives
150,000
Bush clearing under the hives
60,000
Spraying anticide
60,000
Security at the time of harvest
Harvesting honey
Oxen treatment
30,000
Bee hives (KTB) (with bee wax) 5,000,000
Binding wire (for hanging hives)
50,000
Handling containers
100,000
Bee keeping equipment
400,000
Simsim and g/nut paste mill
Ox ploughs
200,000
Yoke
40,000
Oxen
1,600,000
Tapulins (for drying simsim)
Planting rope
8,000
Two-wheeled cart
400,000
Rake
100,000
Axe
160,000
Hand hoes
200,000
CASH NEEDED
9,073,000

1,125,000

1,290,000

1,310,000

NET CASH-FLOW

(5,698,000)

(6,988,000)

(5,298,000)

(9,073,000)

315,000
200,000

QTR IV 2014 QTR I 2015

300,000
60,000
250,000
-

40,000
50,000
50,000
300,000

500,000
60,000
60,000
30,000
200,000
-

21,000,000
21,000,000

60,000
250,000
1,000,000
-

15,702,000

Cash availability
(a) We have the following resource to use for our enterprise: 2,685,000/= worth of labor
(b) We need the following amount of cash for our enterprise: 12,798,000/=
No, we do not have enough cash
(c) The amount of extra cash we need is: 10,118,000/=
(d) I need the extra cash in the following months: February, March, April, May and June.
(e) I can get the money from the following sources
Source
Grant from Child Fund International
Members contribution

Risks
Risks
Rain on stacked sesame harvest
Wind and hail storm

Mitigation strategies
Covering using tapulin
Strict timing of seasonality with the aid of
weather forecast
Strict timing of seasonality with the aid of
weather forecast
Deploying members to secure the fields
Crop rotation
Insuring the crops in the field
Creating buffers around the plot
Trap them or use scare crows
Spraying with anti-cide

Sun scorch
Theft
Pest and diseases
Hailstorm
Wild fires
Birds and rodents
Ant attacks on colonized hives
S.W.O.T. analysis
Strength

Weaknesses
Opportunity

Threats

Amount
10,118,000/=
2,685,000/= (labor in-kind)

Adequate labor from group members to manage the

crops and oxen
Child Fund Financial support
New seeds
Knowledge in farm work
Market inaccessibility
Inadequate equipment and farm implements
The group can start a VS & LA among members
Availability of land
High commodity prices
Fertile land
Theft
Transportation challenges
Price fluctuation
Weather changes

Annex I
The agricultural production zones of Uganda5

Increasing incomes through exports; a plan for zonal agricultural production, agro processing and marketing. Dr. Sam Nahamya and Mr. John Mitala

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