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public summary of fair for life development fund use 2017

 

 

PUBLIC SUMMARY OF FAIR FOR LIFE DEVELOPMENT FUND USE 2017

Name of the producer organization: UGANDA AROMATICS

Address :

UGANDA AROMATICS Ltd – P.0. Box 522 – Tororo UGANDA

Organizational form:

Uganda Aromatics is a company employing 4 full time employees and working with a network of 22 organic farmers.

Background:

The company is located in Tororo, Uganda. Uganda is an eastern African country, called the Pearl of Africa because of its biodiversity of wildlife, water bodies and unique mountains and forest.

 

In Uganda, agriculture is the main economic activity for food crops and cash crops and Tororo region is a disadvantaged area without reliable cash crops.

In the early 1990’s the late David OworJabwana started an aromatic crop project in the area which brought cash crops. Unfortunately David Oworjabwana passed away in 2006 and with few financial resources to maintain the buildings and to increase the crop areas, the project never developed.

Joel Ofufa, who is David OworJabwana’s son, studied agriculture at school. In 2015, after he graduated, he decided to develop a new project in the area. This is how UgandaAromatics was initiated in Tororo to develop further aromatic cash crops and provide market.

The company is committed in developing lemongrass, citronella and palmarosa grass, and the essential oils distilled from these grasses.

The aromatic crops are supplied by a network of producer in Tororo region, willing to develop cash crops in order to improve their lifestyle.

By 2017, 22 farmers were involved in the project, and the company is willing to increase the number of farmer up to 100 in the following months.

After being collected and wilted, the grasses are brought to the company where they are distilled to obtain the essential oils.

FAIR TRADE COMMITTEE

The fair trade ethic of the company is to help the whole chain of actors involved in this project, which means :

• The employees

• The farmers

• The local community

As education plays an important role for the future of the community, the local community is associated to the school located in front of the distillery.

A Fair trade fund use committee was elected with at least a representative of each category of actor.

Depending on the importance and the number of people of each category involved in the project, the fair trade fund will be distributed, as follows:

• 50 % for the farmers

• 30 % for the employees

• 20 % for the local community

DECISION PROCESS ON FAIR TRADE DEVELOPMENT FUND USE

Uganda Aromatic applied to the fair trade certification for the first time in December 2017.

As it is a new project, the first fair trade fund will be distributed in January 2018.

The use of the fund will be discussed in a general assembly of the committee.

It has already been decided that the amount of money allocated to the local community will be invested in providing water for the school. For the time being, the school does not get enough water every day from the local borehole.Uganda Aromatics has built its own borehole for the need of the distillery but the company is not using all the water available. Part of the fair trade fund will be used for installing a pipe which will provide a water tank dedicated to the school.

PAYMENT OF FAIR TRADE FUND

According to a partnership agreement which was signed between Nateva and Uganda Aromatics, the Fair trade partner agrees to pay 5 % as a contribution to the Production Operation’s Fair Trade Fund. The amount to be paid will be calculated annually based on the total sales made by the Production Operation (Uganda Aromatics) to the Fair Trade Partner (Nateva) during the past year. The Fair trade partner will then contribute this amount into a dedicated Fair Trade Fund’s bank account by the end of January.

The total amount of money according to the 2017sales which is due to the Fair trade fund is850 $.

2017 was the 1st harvest and sales year for Uganda Aromatics. The number of farmers, of crops and sales of essential oil should increase substantially in 2018 and the amount of money in the fair trade fund should increase accordingly.

Aurore Pellissier

22nd December 2017

 

 

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