Soroti Fruit Processing Factory
TypePublic Private Partnership
IndustryManufacture & Distribution of Orange and Mango Juice
Founded2014
HeadquartersArapai, Soroti, Uganda
Key people
Douglas Kakyukyu Ndawula
CEO[1]
ProductsFruit juice, fruit concentrate, packaged fruit
Total assetsUS$13.4 million (2019)[2]
Number of employees
150 (2019)[3]
Websitewww.softe.co.ug

Soroti Fruit Processing Factory, also Soroti Fruit Factory, is a fruit processing plant in Soroti, Uganda.[4][5]

Location

The factory is located in Arapai Industrial Park, in Arapai sub-county, Soroti District, on the outskirts of the city of Soroti, approximately 299 kilometres (186 mi), by road, north-east of Kampala, Uganda's capital and largest city.[6] The geographical coordinates of the fruit processing facility are: 01°46'32.0"N, 33°37'05.0"E (Latitude:1.775556; Longitude:33.618056).[7]

Overview

The government of Uganda (GOU), with the assistance of the Korea International Cooperation Agency (KOICA) and in partnership with the Teso Tropical Fruit Growers Cooperative Union (TETFGCU), decided to establish a fruit processing factory in Soroti District to take advantage of the abundant citrus crop in the Teso sub-region and the high yield per tree. GOU provided the land, utilities, and infrastructure. KOICA set aside US$7.4 million for equipment and training and is building the factory.[5] And TETFGCU will grow the fruit that the factory will process. Citrus fruit and mangoes are the principal fruits under consideration.[4]

Ownership

The ownership of the factory is as depicted in the table below:[8]

Soroti Fruit Processing Factory Stock Ownership
RankName of OwnerPercentage Ownership
1Uganda Development Corporation80.0
2Teso Tropical Fruit Growers Cooperative Union20.0
Total100.00

Timetable

Construction of the factory began in April 2015 and was scheduled to be completed in May 2016. Installing and commissioning the machinery and equipment was anticipated from August 2016 to October 2016. The factory was scheduled to commence commercial operation in November 2016.[4][9]

After years of delay, the factory began test runs of its production lines in May 2018, with commercial commissioning planned for August 2018.[8] Production is planned to be phased, starting with one 8-hour shift and gradually increasing to two and eventually three daily shifts.[8][10]

Commercial production is expected to begin in April 2019. The factory has capacity to process six metric tonnes of fruit on a daily basis.[11]

On 13 April 2019, president Yoweri Museveni launched commercial production at the completed factory. At the beginning, 150 employees were hired, with the expectation to increase to 250 people when the factory runs at maximum capacity.[3]

In October 2019, the factory began producing mango juice under the label "Teju", short for "Teso Juice". It is expected that Teju will soon be served on the revived Uganda Airlines.[12]

Privatization

In September 2023, following years of commercial losses, the government of Uganda decided to privatize the juice factory. It is expected that a knowledgeable and experienced investor will be able solve three major stumbling blocks that the factory faces: (a) lack of cash to buy all the fruit that the farmers produce (b) failure to process in a timely manner all the fruit that is procured. The factory needs to automate and (c) failure to sell all the juice produced by the factory.[13]

Developments

During Q4 2023, in an effort to increase efficiency and profitability, management changed tactics and stopped procuring raw fruit from middlemen and started buying directly from the farmers. In addition, to incentivize the farmers, each farmer receives back 10 percent of the juice extracted from the fruit that he/she sells to the factory. It is not clear if the farmer receives actual fruit juice or the value of the juice in monetary payment.[14]

References

  1. ↑ Simon Peter Emwamu and Simon Naulele (29 January 2020). "Hope fades as Soroti Fruit Factory fails to meet farmer expectations". Daily Monitor. Kampala. Retrieved 29 January 2020.
  2. ↑ FBAC (4 January 2019). "Uganda to commission US$13.4 million mango and orange fruit factory". Foodbusinessafrica.com (FBAC). Nairobi. Retrieved 14 April 2019.
  3. 1 2 George Asiimwe (13 April 2019). "Museveni Launches Soroti Fruit Factory". Kampala: ChimpReports Uganda. Retrieved 14 April 2019.
  4. 1 2 3 UDC (9 February 2015). "Soroti Fruit Factory Project". Kampala: Uganda Development Corporation (UDC). Retrieved 17 March 2016.
  5. 1 2 Felix Osujo, and James Odong (19 September 2014). "Museveni launches construction of Soroti fruit factory". New Vision. Kampala. Retrieved 17 March 2016.
  6. ↑ Google (14 November 2021). "Road Distance Between Soroti Fruit Processing Plant And Kampala In Uganda" (Map). Google Maps. Google. Retrieved 14 November 2021.
  7. ↑ Google (14 November 2021). "Location of Soroti Fruit Processing Factory" (Map). Google Maps. Google. Retrieved 14 November 2021.
  8. 1 2 3 Ismail Musa Ladu, and George Muron (22 May 2018). "After years of waiting, the fruit factory is now ready". Daily Monitor. Kampala. Retrieved 18 September 2018.
  9. ↑ Odyek, John (11 April 2016). "Soroti fruit factory experiences delays in completion". New Vision. Kampala. Retrieved 10 October 2016.
  10. ↑ Nassali, Fatiah (17 May 2018). "Teso fruit factory set to open in August". Kampala: NilePost Uganda. Retrieved 18 September 2018.
  11. ↑ Geoffrey Mutegeki (9 April 2019). "Museveni to commission Soroti fruit factory". New Vision. Kampala. Retrieved 9 April 2019.
  12. ↑ Anthony Wesaka (24 October 2019). "Teso Juice To Grace Uganda Airlines Flights". Daily Monitor. Kampala. Retrieved 28 October 2019.
  13. ↑ Simon Peter Emwamu (21 September 2023). "Govt to privatise Soroti Fruit Factory". Daily Monitor. Kampala, Uganda. Retrieved 11 October 2023.
  14. ↑ Eddy Enuru (4 December 2023). "Soroti Fruit Factory resumes orange crushing". Nile Post Uganda. Kampala, Uganda. Retrieved 16 December 2023.

01°46′32″N 33°37′05″E / 1.77556°N 33.61806°E / 1.77556; 33.61806

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.