Established in 2013, AGRILEC is an agribusiness with four employees (two women and two men) that operates in Eastern Province’s Kayonza District. It specialises in supplying fresh vegetables to local schools and markets, and sources from 1,074 smallholder farmers in the district.

Smallholder Contract Farming of Fresh Vegetables for School Feeding and Local Markets

Beginning in August 2024, this 15-month project has a goal to expand to 100 schools and 5,000 smallholder farmers, increasing annual individual farmer income by £215. AGRILEC’s business model integrates contract farming and partnerships with agriculture inputs dealers to ensure quality and scale. They aim to increase sales by 30% by 2025, diversifying into local markets while promoting sustainable practices and standardising product quality.

At a total cost of £232,900 (£69,800 from CASA), the project will provide technical assistance for investment readiness support; business plan development; piloting contract farming; capacity building for AGRILEC’s agronomists; development of a fresh vegetable distribution and management system; marketing capacity building support; and development and integration of an environmental, social and governance framework with AGRELIC. Through the project, AGRILEC is investing £133,100 from an already-secured commercial loan for vegetables aggregation, storage and transportation facilities, and the establishment of farmer service centres. AGRILEC is also seeking further debt investment.