Reach for Results - Diners
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Date
2019
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Publisher
IFDC
Abstract
This document highlights the impact of the acquisition and operation of a 12-ton truck by Diners Group Limited (DGL), supported by the Resilient Efficient Agribusiness Chains in Uganda (REACH-Uganda) project, in facilitating sustainable and efficient rice value chains in Eastern Uganda. The truck is a vital tool for collecting paddy rice from farmers and transporting it to the Diners Rice Factory in Mbale, eliminating the need for expensive hired transport. By reducing transportation costs by up to 50%, the truck has significantly benefited both the farmers and the factory. In collaboration with DGL, the REACH-Uganda project aims to empower farmers and farmer groups in Eastern Uganda by providing training, equipment, and support to enhance their rice farming productivity. By establishing linkages between the farmers and DGL, the project ensures a consistent market for the farmers' produce while enabling the enterprise to receive a reliable supply of high-quality rice. DGL, functioning as a multi-stage rice miller, offers farmers better value for their produce than local single-stage millers, further enhancing their profitability. Despite the advantages of sourcing paddy to DGL, the factory faces competition from single-stage millers due to the high transportation costs incurred by farmers. The introduction of the Diners Rice Truck has effectively addressed this challenge, enabling the collection of over 400 bags (280 metric tons) of paddy rice within two months of operation. This is a significant increase compared to the previous period, with expectations of further growth as the second harvest season approaches. The truck has not only reduced transport costs but also saved time and energy for the farmers. Additionally, the truck has facilitated the efficient distribution of Diners Rice products to wholesalers and retailers in distant markets, eliminating the need for hired transport and reducing costs and delays. As a result, DGL plans to expand its operations by acquiring more land and establishing a larger structure to accommodate the increasing volume of paddy received and rice produced. The truck's visibility throughout Eastern Uganda has also contributed to establishing DGL as a prominent player in the rice industry.
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Keywords
Rice , Value chains, Distribution