BREIF ON PEYERO MILLERS

Payelo Millers

Peyero Millers Company Limited is a limited liability company, located in Gulu Municipality, Gulu district and is an agro based company dealing in processing of rice The mission of the company is to develop a successful agribusiness model, based on mechanized agriculture, a strong out grower scheme and value addition of both rice and sunflower to produce first class rice and edible oil for domestic and regional markets. In 2006, the company acquired an 8 ton per day rice mill and has since then been doing toll milling and farming on its 3200 acre of land. The company is a female owned company and both shareholders are females.

Support to the company

The company applied for BUDS-DFID support to procure and install a modern 50T per day rice mill, which has already been installed and will be operationalized at the end of September 2012. In addition, the company has been supported to install a high voltage power line and transformer in light of power requirements at the factory. For the current season, the company has cultivated 500 acres of land and in addition, has a memorandum of understanding with about 2000 farmers from 27 farmer groups who are located in the districts of Gulu, Nwoya and Amuru. The cost of the rice mill and the transformer is Ushs 238,762,000 (£ 60,263) and only the high voltage power line costing Ushs 60,748,155 ( £15,036) has been reimbursed.

The pipeline activities include procurement of 15 walking tractors complete with implements and 120 oxen and ox ploughs to enable the farmer groups increase the production of rice from average 1-2 acres of land to 3-5 acres using this equipment. 10 of the 15 farmer groups have presented their applications for support.

Other needs of the company

Better farm equipment and implements on the farm to increase production of rice considering that the company has an old tractor, and 3200 hectares of land and needs to massively boost farm level production of rice, in order to complement the efforts of the farmer groups and feed the 60T rice machine on daily basis.

Storage facilities at the factory and in some cases at the premises of the farmer groups in order to improve post-harvest handling and storage of the rice

Branding and brand development of the products to allow for brand marketing of the peyero brand. The above activities are eligible under the BUDS

Anticipated benefits Creation of over 20 permanent jobs in the technical, marketing, administration, transport, procurement positions

and farmer extension positions. Market to over 2000 farmers, from 27 farmer groups who have been mobilised by the company and who will

have ready market for their rice Increased production of rice by rural based farmers, who have just returned from IDP camps, leading to

increased incomes and ultimately employment on their own rice farms. Development of the rice value chain and the numerous benefits to the actors thereof

Rice from Payelo Milliers