AOI’s new Uganda operations are off to an excellent start. Our administrative office in Kampala opened in November 2014, and we have already started our operations in the field for both Flue-Cured and Burley tobacco. We have made significant progress in the growing areas of Hoima, Arua and Gulu. At this early stage, the first crop appears to be a good one.
We hosted the launch of Alliance One in Uganda on February 12 and it was very well-received by the community. The perception of Alliance One is a positive one, as attendees left the event with the understanding of Alliance One as an agricultural company committed to the tobacco-growing farmers throughout the country. Customers from BAT and PMI were in attendance at the grand opening and they were extremely impressed with the launch of the company and the caliber of attendees, which included the Honorable Dr. James Mutende, State Minister of Trade, Industry and Cooperatives and his good wife Hon. Lydia Wanyoto Mutende, Ugandan Peace Envoy to the United Nations and a member of the East African Legislative Assembly; Dr. Sam Semanda, Commissioner Agriculture Planning and Development, representing the Minister of Agriculture; local government officials from the growing areas; farmer associations chairmen; and farmers. Our customers believe that AOI has made a major leap in the right direction in Uganda and they look forward to being part of the Ugandan crop in the future.
We are enthusiastic and optimistic about our potential to significantly contribute to the growth of the Ugandan rural economy and improve the livelihoods of farmers throughout the country by providing the Ugandan farmer access to a wider, global customer base.
Farmer education will be a top focus for our agronomists, and we will work to enhance farmer efficiency through trainings and demonstrations of appropriate farming technologies. There will be four farmer and agronomy Good Agricultural Practices (GAP) training days per year, where we will discuss best practices for growing a compliant, sustainable crop as well as our Agricultural Labor Practices (ALP) policy. We will also be rolling out many of our Social Responsibility in Tobacco Production (SRTP) programs as we focus on creating a sustainable future for our producers, their families and communities, and the environment in Uganda.
We look forward to working with all stakeholders to achieve a sustainable and competitively price product which will, in turn, provide stability for the farmer as well as improved income.
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