Thanks Anthony, this is a very interesting post (and I appreciate your answer to my question on your previous post). I have a couple more questions if you have time to answer them:
Roughly what are the running costs of the plant, for instance electricity? Also, are there any other significant costs either you or the farmers would have to pay? For example, fuel to transport the grain from farms to the plant (I’m not sure how far away the farms are, or how much fuel costs in Uganda).
How long does the harvesting season last, and how many hours a day could the plant operate? I’m wondering what yearly capacity the 15 ton/hour capacity corresponds to.
Thanks, that’s very useful. I’ve been looking into this some more, and I have some more questions:
About the comparison with sugarcane: from the section of your page (https://www.ugandafarm.org/size-of-long-island/) and the links, I see that sugar cane prices did fall to Ugx 1,000-3,000 per ton at one point in 2021, but the usual range seems to be more like Ugx 60,000-200,000 per ton. With yield of around 40 tons/acre, even using the lowest price Ugx 60,000/ton would give an annual revenue of Ugx 2.4m/acre. For your estimates for sorghum of Ugx 1,300/kg and 700kg/acre with 2 harvests/year, that would only be Ugx 1.82m/acre.
I appreciate that avoiding the risks of a sugarcane monoculture is valuable separate from increasing the average income. But I’m still surprised that the average annual income with sorghum could be lower than with sugarcane. Is there some thing I’m missing about the price of sugarcane or the costs of growing it?
About the benefits of the facility versus the current setup of growing sorghum without a plant: do you have an estimate for how much sorghum Uganda Breweries and other companies would be willing to buy in the current setup? That is, how many farmers/acres could you support without the plant?
A separate question: could you give me an idea of what proportion of farmers in Busoga grow sugarcane versus being subsistence farmers?