Agro-processing factories count low income due to COVID-19 impacts

By Jean Claude KUBWIMANA. 

Huye Feeds Limited Factory that is located in Huye district’s industrial park is one of businesses affected by Covid-19.

The factory produces poultry, pig, cow and fish feeds and according to proprietors, it has drastically been affected by the pandemic which halved its production capacity.

“We have a problem of lack of market, and farmers are not growing cattle as before, and therefore the quantity of feed we used to sell has reduced. Since the pandemic was reported in 2020, our production capacity has reduced to 50 percent because we could produce 500 tons of feed per month and now we can only produce 250 or 300 tons,” said Nyirishema Felix, Managing Director of the factory.

He said that they are trying to help citizens in the southern province purchase feed at Lower price despite the high investment in the raw materials.

The cost of raw materials has  increased, he said, adding  maize and soya bean  prices that are locally grown have increased by about 50 percent within two years.

“Soya bean price increased from Rwf500 to Rwf1000 while maize price increased from Rwf200 to Rwf350. This determines the loss we counted due to lack of clients who are wary of high prices of animal feeds. For example poultry feeds have increased from Rw370 to Rwf420 per kilogramme since November 3, 2021. It’s a challenge for farmers but we do not have any other choice as the raw materials are expensive,” Nyirishema said,”

Animal product market affected

Nyirishema understands why farmers are not purchasing animal feeds since they also lack a market for their produce, especially eggs and meat.

Because of covid-19, markets, restaurants, schools, wedding events, bars were not operating for many occasions yet these were our potential clients, he said.

“We expect things to come back to normal when these obstacles are over. Other raw materials we used to import from China and Europe also became expensive two years ago because their transport cost has doubled,” he said, citing that Prothene synthetic price has increased from Rwf2000 to rwf5000 per kilogram.

Seeking Solutions

Nyirishema said that they have been discussing with MINAGRI and Rwanda Ministry of Trade and industries and RDB   to see how they can tackle scarcity of raw materials in the country.

Noel Nizeyimana, Managing Director of Green Care Rwanda Limited Company that produces manure fertilizers ‘Greecompost’ from wastes in Huye District said that production capacity of the factory has reduced.

“In general we continued working as it is mandatory that wastes collected from homes must be collected despite many farmers who stopped buying our organic fertilizers. The pandemic hampered our five year strategic plan of having another factory, now it is our new procedure to think of how to expand activities,” he said.

The production capacity, he said, has decreased from two tonnes per day to one tonne due to lack of raw materials.

Vaccine

The factory’s owner confirmed to The Inspirer that all employees have two doses of the vaccine.

“We wait for the booster jabs,” Noel said.

Lesson learnt

“The pandemic taught us to save and  employees have changed their mindset towards  saving and making other income generating activities as well as changing lifestyle based on few available opportunities,” he said.

Fortunately, he said the factory is returning to normal production capacity but not at 100 percent.

“We are still at 2019 production level of our target as we think of the expected target by then,” he said.

Access to recovery fund

He said that there is still a shortage of enough capital and they wish to have access to the business recovery fund.

“The fund was given to owners of big factories but youth did not get that opportunity. We need that support as other business people get it,” he said.

The factory has the capacity to recycle10 tonnes of wastes per day and they produce 600 to 800 tonnes of manure fertilizers per year.

The factory has 25 permanent workers in production of fertilizers and they work with maize, cheer-seed and rice farmers’ cooperatives in Huye district.

“We have 5 cooperatives and 4 agro-dealers who supply fertilizers,” he said.

Sebutege Ange, the mayor of Huye district encourages agro-processing factories to work hand in hand with crop producers and traders in order to tackle shortage of raw materials by setting up good prices that motivate farmers to give them the produce of maize and soya beans.

Sebutege added that this sector will also recover from the Covid-19 pandemic as others following the new normal.

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