Business Innovation for Resilient and Efficient Farming Psalms Food Industries Limited
Uganda's agro-based economy faces challenges in meeting the demand for food items from larger supermarkets, restaurants, and fast-food outlets, resulting in a heavy reliance on imported products. Psalms Food Industries Ltd, a Ugandan food brand, recognized an opportunity to use locally sourced produce and compete with imports. This publication explores the journey of Psalms Food Industries Ltd, which started as a small-scale operation and has grown into a successful enterprise producing diverse food products, with potato crisps being a significant product line. The publication highlights the unique approach of Psalms Food Industries Ltd, actively seeking out local produce for processing and emphasizing the use of Ugandan ingredients. However, challenges arise due to the limitations of local potato varieties, including small size, deep dents, and seasonal fluctuations in quality, which affect processing efficiency. Additionally, the absence of a reliable seed industry and fragmented supply chains hinder the alignment of farmer practices with the business's requirements for quality produce. To overcome these challenges and sustain growth, Psalms Food Industries Ltd has partnered with REACH-Uganda to improve business processes, strengthen the supply chain, and explore introducing new potato varieties. This includes expanding factory space, implementing automated processing, enhancing quality control, improving packaging and distribution, and developing marketing strategies. The publication emphasizes the importance of personalized supply chains and direct sourcing from farmer groups to enhance collaboration and reduce reliance on traders. Furthermore, the collaboration aims to introduce potato varieties better suited for mechanical processing and frying, improving product quality, reducing wastage, and potentially increasing yields and sale prices. The results achieved so far include significant growth in production, sales, and employment, as well as improved branding and marketing efforts. The publication also highlights the projected financial and social impacts, such as increased income for farmers, improved household resilience, and enhanced market access for Ugandan produce.
Value chains, Potatoes, Quality control