Strategy for agricultural marketing and agro-processing ... - Foodnet

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(iv) Establishment of a marketing information system Under the NAADS programme, a tender will shortly be awarded to a specialist consultancy firm to establish an agricultural market information service and manage its operation for a trial period. Such a system will improve (and in many instances, begin) the flow of information on prices and quantities of agricultural produce to farmers and traders operating in different parts of the country. It will, at the same time, provide training to farmers in the analysis and use of that information. By creating more competitive agricultural produce markets, the returns to the investments being made by farmers and traders will thus be improved. Over time, once competitive markets become established, it is envisaged that such a service would likely be supported by the agricultural industry itself. Funding for this contract, at least during its pilot phase, has already been agreed to and will be met from resources provided by both the Government and its development partners (the same is true of the other NAADS-related intervention described under Para.(v), below). It is planned that if the pilot proves successful, the marketing information system will quickly be expanded nationwide. (v) The development of “organised agriculture” and increasing the capacity of farmers Under the NAADS programme, a contract is to be drawn up with a training organisation(s) to work with and develop the capacity of farmers’ associations to join together in marketing their produce, so that they are able to increase their bargaining power and thus obtain higher farmgate prices. The formation of farmers marketing groups (also known as Farmer Controlled Enterprises, FCEs, or co-operatives) will enable the direct sale of produce to stakeholders further up the marketing chain, eliminating at least one level of middlemen and, thus, achieving higher net farmgate prices. Furthermore, FCEs/co-operatives encourage the improvement and standardisation of quality to meet more onerous contractual quality specifications demanded by larger buyers. It has to be recognised that this intervention will cover only a limited number of Districts, in line with the rolling-out of the NAADS programme itself. Full national coverage will not be realised for at least another five years. However, the DANIDA-supported Agricultural Sector Programme Support intervention has been working over the past three years with the Uganda National Farmers’ Federation (UNFF) and other Ugandan partners to develop the capacity of smallholder farmers to mobilise themselves in “common interest groups” to demand improvements in the delivery of services. Similarly, efforts have also recently begun to encourage the formation of co-operatives for the same purpose, stressing the requirement that they be genuinely developed from the grass-roots. The strengthening of community-based agriculture producer organisations, a number of which are already operating, will also be a major component of the APEP intervention which is to be implemented over a five-year period starting before the end of 2002. 4.2.3 Infrastructure (vi) Improving the efficiency of the infrastructure network A key component of the recent White Paper of the Ministry of Works, Housing and Communications (MWHC) on its feeder roads rehabilitation and maintenance strategy, are plans for the sustainable maintenance of district, urban and community access roads. Under this programme, District roads are to be maintained such that they are passable throughout the year. In the coming year, work will begin on a plan for the expansion of the District road network, as 12
called for in the PMA, that will take into account projected developments in specific Districts and which will be planned for - and executed with - the active participation of affected local communities. In this way, the urban areas and their input and produce markets will be made more accessible to the poor farming community. As a result of efforts made by the MWHC over the past decade – in line with the increased emphasis now placed by the government on maintenance (supported with PAF funding) - the proportion of the District road network in a fair or good condition has increased from 15 to 67 per cent. However, only 7 per cent of community access roads can be thus classified. Nevertheless, the White Paper indicates that 50 per cent of the community access roads are to be improved to a fair condition over the next ten years. This figure does not include the community access roads’ rehabilitation activities to be financed by NGOs and LCIIs, themselves, and through other means (the LGDP and Non-Sectoral Conditional Grants, for example). Work is presently underway to improve infrastructure and facilities at the principal border post crossing point for road transport to and from Kenya, in order to reduce the excessive time spent by goods vehicles in transit between the two countries. (vi) Overcoming other infrastructure shortcomings The Government has adopted a power sector strategy which both seeks to encourage private sector participation and emphasises the role of competition in promoting efficiency within the sector. A five-year intervention, Energy for Rural Transformation, is getting underway which seeks to accelerate the expansion of access to electricity in the rural areas. The intervention foresees the close involvement of the private sector in developing both a commercially-oriented service delivery system for energy and small-scale renewable energy power generation by private enterprises. Under the MTCS a strategy has been proposed for improving the legislation associated with the production of agricultural commodities and the processing of food, as well as for ensuring that inspections are carried out and the legislation enforced. A number of publicly-funded interventions have been planned for the establishment of a number of produce markets, and/or the improvement of existing infrastructure at some markets. At the same time, the private sector is being encouraged to invest in agro-processing ventures, such as an abattoir conforming to international standards and a textile manufacturing plant in the Kampala area. Continued research in the design and use of appropriate farm-level produce storage structures is being financed, together with interventions to increase the uptake of such technologies, as well as the adoption at the farm level of improved post-harvest handling practices. As far as the storage and marketing of grain for commercial purposes is concerned, it is the policy of the Government to support the private sector in its activities in this field. It is planned that the U-TRADE project will operate in this general area, supporting Government’s efforts to relieve infrastructure bottlenecks as they constrain the expansion of exports, for example. 13
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