Sesaco, a Ugandan food-processing company, is working to strengthen its operations and expand its range of value-added products as it continues to recover from the economic challenges caused by the Covid-19 pandemic.
Charles Nsubuga, the company’s chief executive officer, said Sesaco is focusing on improving the quality of its products to compete more effectively in local and international markets.
In an interview with Bbeg Media, Nsubuga said the company was among the businesses affected by the pandemic, which disrupted economic activities, reduced demand for some products, and left many businesses struggling to meet their financial obligations.
“Value addition is our main target,” Nsubuga said, explaining that the company wants to turn locally produced agricultural materials into finished products that offer better returns to farmers and businesses.
He said Sesaco initially welcomed the government’s decision to allow some businesses to continue operating during the pandemic. However, the company later discovered that remaining open did not necessarily guarantee a market for its products.
“At first, we were so happy that the government allowed us to operate during the Covid-19 pandemic, but later we realised that the products we were making were mainly for our own use,” he said.
The experience exposed the difficulties businesses faced during the pandemic, when disruptions to markets and household incomes affected the ability of consumers to buy goods.
Sesaco has since been working to revive its operations by maintaining existing products and developing new ones using locally available agricultural produce.
The company processes a range of raw materials, including groundnuts, soya beans, common beans, maize and sweet potatoes. These are used to make products such as soya milk, soya yoghurt, maize flour and doughnuts, among others.
Nsubuga said the company wants to improve its products and expand its market reach while encouraging Ugandans to embrace locally manufactured food products.
He also highlighted the role Sesaco has played in promoting value addition among farmers during its more than 30 years of operation.
According to Nsubuga, the company has sensitised thousands of farmers across the country on how to add value to their agricultural produce to improve its marketability and increase their earnings.
Value addition involves processing agricultural products into goods that can fetch better prices than raw produce.
For example, soya beans can be processed into soya milk or yoghurt, while maize can be milled into flour for household and commercial use.
The approach can also help reduce post-harvest losses by creating additional markets for agricultural produce and extending its usefulness beyond the harvesting season.
However, Nsubuga said weather-related challenges continue to affect the farmers who supply the company with raw materials.
He identified prolonged droughts as a major concern because they reduce agricultural production and leave farmers with less produce to sell. Heavy rains and flooding can also destroy crops, disrupt harvesting, and affect the supply of raw materials to processors.
Such disruptions can create uncertainty for food-processing businesses that depend on a reliable supply of agricultural produce to maintain production and meet market demand.
Nsubuga called on the government to provide more incentives and support to farmers and Ugandan-owned businesses, saying local investors play an important role in creating jobs and supporting economic activity.
He said stronger support for farmers would help improve agricultural production, while incentives for local businesses could enable them to expand their operations, develop new products and create more employment opportunities.
