<strong>processing</strong> enterprises, particularly in relation to adding value <strong>and</strong> the <strong>agro</strong>-<strong>processing</strong> options that are available. This raises the issue of the need <strong>for</strong> increased training opportunities in the fields of business planning, sources of finance <strong>and</strong> technologies that are available to trans<strong>for</strong>m low-value raw materials into higher-value, processed goods 3 . (iv) Lack of ‘organised agriculture’ The general situation prevailing in the country is <strong>for</strong> individual producers, themselves, to deal directly with market traders <strong>and</strong>, thus, <strong>for</strong> returns to be lower than those that could be realised were farmers to come together to negotiate market deals. Indeed, in only a limited number of cases have smallholder producers <strong>for</strong>med associations to take advantage of economies of scale that can be realised from <strong>marketing</strong> activities – of both outputs <strong>and</strong> inputs. By coming together to market their outputs, smallholders are able to participate more effectively in the <strong>marketing</strong> of their produce, retaining <strong>for</strong> themselves a greater proportion of the <strong>marketing</strong> margins available. (v) Inefficient transport systems High transaction costs are a feature of Ug<strong>and</strong>a’s <strong>agricultural</strong> industry, much of which can be attributed to the country being l<strong>and</strong>-locked. Inefficiencies in the operations of the railways, <strong>for</strong> example, result in high costs being charged <strong>for</strong> transporting <strong>agricultural</strong> commodities to the East African coast <strong>for</strong> shipping overseas. Reducing internal <strong>and</strong> international freight costs is there<strong>for</strong>e critical if the country is to become more competitive in the medium to long term. The lack of rural roads, as well as the poor condition of those that there are, also act as a major barrier to market access <strong>for</strong> many poor farmers particularly in the more remote parts of the country. This is aggravated by the general lack of af<strong>for</strong>dable transport. Not surprisingly, there<strong>for</strong>e, recent research has shown that significant returns are to be realised from investment in the construction <strong>and</strong> maintenance of roads linking farming communities with population centres. (vi) Other infrastructure shortcomings Only 5 per cent of the population has access to electricity with the bulk of them being located in the Entebbe-Kampala-Jinja conurbation. Thus, the national electricity grid extends only minimally into the rural areas (less than 1 per cent of the rural population has access to gridsupplied electricity), while those who are connected suffer from the unreliability of the power supply. At the same time, the cost of electricity is high which puts <strong>agro</strong>-<strong>processing</strong> ventures at a competitive disadvantage. Finally, the inadequate capacity of public agencies to draw up regulations governing quality st<strong>and</strong>ards relating to both <strong>agricultural</strong> input imports <strong>and</strong> <strong>agricultural</strong> produce exports, means that the country’s international trade is highly vulnerable to interruption, as happened in the case of fish exports in the late-1990s. Studies have revealed that inadequate storage capacity is not currently a severe constraint to <strong>agricultural</strong> <strong>marketing</strong> <strong>and</strong> <strong>agro</strong>-<strong>processing</strong> activities. However, poor storage structures <strong>and</strong> practices at the farm household level do result in losses <strong>and</strong>/or a reduction in the quality of grain <strong>and</strong> other commodities. Because of this, the majority of farmers are unable to take full advantage of price changes during the <strong>marketing</strong> season. 3 The private sector is only now emerging in certain areas - <strong>agro</strong>-<strong>processing</strong> <strong>for</strong> example – <strong>and</strong> there is undoubtedly a need <strong>for</strong> a considerable volume of public sector resources to be invested in capacity building in this, <strong>and</strong> other, fields. 6
At the same time, the poor st<strong>and</strong>ard of the facilities at many of the produce markets <strong>and</strong> the complex <strong>and</strong> burdensome dues levied on traders are recognised as being important constraints to wholesale <strong>and</strong> retail market activities in the country – with women being particularly adversely affected. 7
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