Food processing and collection services

Food processing and collection services
Photo by Shutterstock
Food processing and collection services
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Process and aggregate from a cluster of farms commodities, especially coffee, tea, cotton, cassava, maize, vegetable oil, fish, dairy and beef.

Expected Impact

Address post-harvest losses and increase value adding of agricultural products for local consumption and export.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Industry, Innovation and Infrastructure (SDG 9) Life on Land (SDG 15)
Coffee farmer
Photo by TradeMark East Africa / NUCAFE
Case Study: NUCAFE
NUCAFE, a UNDP Business Call to Action (BCtA) member and a UNCDF pipeline company, empowers farmers in Uganda with access to the coffee value chain - all the way from farm processing to manufacturing and exporting. Access to these services is enhanced with technical skills training, business development, and farmer organization governance and management training.
Equator Seeds Limited (ESL) factory
Photo by Equator Seeds Limited (ESL)
Case Study: Equator Seeds Limited
Equator Seeds Limited (ESL), a UNCDF pipeline company, sells a broad portfolio of oil, field crop and vegetable seeds and seedlings and provides other related inputs and services. The company primarily operates in Uganda and South Sudan and chiefly targets smallholder farmers who grow maize, beans, and sorghum, among other crops.
Sector Sources
  • (I) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. (II) United Nations Development Programme (2019). Briefing note for countries on the 2019 Statistical Update: Uganda. (II) Ministry of Agriculture, Animal Industry and Fisheries. Agricultural sector potential in Uganda. https://www.agriculture.go.ug/agricultural-sector-potential/ (IV) National Planning Authority. National Development Plan III (NDPIII) 2020/21 – 2024/25. (V) Fowler, M. and Rauschendorfer, J. (2019). Agroindustrialisation in Uganda. https://www.theigc.org/wp-content/uploads/2019/11/Fowler-and-Rauschendorfer-2019-working-paper.pdf (VI) Rakotoarisoa, M.A., Iafrate, M. and Paschali, M. (2011). Why Has Africa Become a Net Food Importer? http://www.fao.org/fileadmin/templates/est/PUBLICATIONS/Books/AFRICA_STUDY_BOOK_REVISED_low_res.pdf (VII) Government of Uganda. Uganda Green Growth Development Strategy (UGGDS) 2017/18 – 2030/31. (VIII) United Nations Development Programme (2019). Inequalities in Human Development in the 21st Century. Briefing note for countries on the 2019 Human Development Report. Uganda. (IX) World Bank (2018). Making Farming More Productive and Profitable for Ugandan Farmers.https://www.worldbank.org/en/country/uganda/publication/making-farming-more-productive-and-profitable-for-ugandan-farmers (X) Government of Uganda. Uganda Vision 2040. https://consultations.worldbank.org/sites/default/files/materials/consultation-template/materials/vision20204011.pdf
IOA Sources
  • (1) World Bank database. https://data.worldbank.org/ (2) Centre for Development Alternatives (2019). Agro-Processing: A Gateway to Inclusive Structural Transformation in Uganda? https://cda.co.ug/1986/agro-processing-a-gateway-to-inclusive-structural-transformation-in-uganda/ (3) Fowler, M. and Rauschendorfer, J. (2019). Agroindustrialisation in Uganda. https://www.theigc.org/wp-content/uploads/2019/11/Fowler-and-Rauschendorfer-2019-working-paper.pdf (4) FitchSoultions (2020). Uganda Agribusiness Report Includes 5-year forecasts to 2024. Q3 2020. (5) Minister of Finance, Planning and Economic Development (2018). National Investment Policy (NIP) of Republic of Uganda Draft. (6) Food and Agriculture Organization of the United Nations (2019). Government of Uganda, FAO, WFP, IFAD make strides in development of a comprehensive strategy plan to reduce post-harvest losses in grains. http://www.fao.org/uganda/news/detail-events/es/c/1198628/#:~:text=Food%20losses%20contribute%20to%20and,produced%20in%20the%20country%20respectivel (7) Uganda Investment Authority (2019). Bankable Projects 2019/2020 - 3rd Edition. https://www.ugandainvest.go.ug/wp-content/uploads/2019/06/BANKABLE-PROJECTS-2.pdf (8) Alliance for a Green Revolution in Africa (2019). The Agribusiness Deal Room at the 2019 African Green Revolution Forum (AGRF). https://agrf.org/dealroom/wp-content/uploads/2020/07/Agribusiness-Deal_Room-AGRF-booklet_020919.pdf (9) Economic Policy Research Centre (2018). Fostering a Sustainable Agro-Industrialisation Agenda in Uganda. https://eprcug.org/research/research-reports/579-fostering-a-sustainable-agro-industrialisation-agenda-in-uganda/download (10) Konrad Adenauer Stiftung (2020). Industrial Policy for Economic Transformation in Uganda. https://www.kas.de/documents/280229/9581001/CDA_KAS+Reality+Check+12_Industrial+Policy+for+Economic+Transformation+in+Uganda.pdf/34cdb812-3de4-87e2-7281-0256682ba53f?t=1594904315863 (11) Uganda Revenue Authority (2019). A Guide on Tax Incentives /Exemptions available to the Uganda Investors. https://www.ebiz.go.ug/wp-content/uploads/2020/03/TAX_INCENTIVES_GUIDE_FOR_INVESTORS_IN_UGANDA_October_2019.pdf (12) Adams, F. et al. (2019). 'Financial analysis of small-scale mango chips processing in Ghana', Cogent Food and Agriculture. https://www.tandfonline.com/doi/full/10.1080/23311932.2019.1679701 (13) Mujuka, E., Mburu, J., Ogutu, A. and Ambuko, J. (2017). Returns to investment in postharvest loss reduction technologies among mango farmers in Embu County, Kenya. https://onlinelibrary.wiley.com/doi/full/10.1002/fes3.195 (14) PwC analysis based on Prof. A. Damodaran data, 2020. (15) UNDP/PwC stakeholder interviews, 2020. (16) Food Security (2018). Nucleus-outgrower schemes as an alternative to traditional smallholder agriculture in Tanzania – strengths, weaknesses and policy requirements. https://d-nb.info/1171128797/34#:~:text=lack%20of%20infrastructure%20(particularly%20in,of%20labour%20supply%20(in%20certain (17) UNDP / PwC private sector interviews, 2021.