The Future of Smallholder Farming in Eastern Africa - Uganda ...

5.5 Access to Market
A number of factors relating to investment in soil conservation and low gross margins
arise from poor access to the factor and product market. It is therefore of paramount
importance to address issues relating to market access. This include establishment of an
efficient market information system, establishment of farmer groups (cooperatives) that
carry out marketing of both produce and input as well as providing farmers with some
credit facilities. Management of these organizations should be streamlined and made more
accountable to regain the confidence of farmers lost due to poor management in the past.
The study established that roads are key not just for market access but also investment in
soil conservation as most farmers will not invest in land improvement if the produce will
not reach the market or if the cost of transport is too high due to poor road status. The
government should therefore take it upon itself to lay emphasis on improvement of rural
road network that make the markets inaccessible and increase the transport costs thereby
substantially reducing farmers’ gross margins. Possibilities of actively involving the
private sector and local communities in road maintenance should also be explored.
The importance of encouraging development of on-farm storage facilities cannot be
overemphasized. With adequate and appropriate storage in place, seasonal fluctuation in
the product prices will be reduced and farmers will not be forced to sell below the
production cost as was evident in the study. Some of these storage technologies already
exist and only need disseminating to farmers and traders. Where they exist but are idle,
the National Cereals and Produce Board (NCPB) stores should be rent out to the farmer
groups for grain storage. Other investors should also be encouraged to put up suitable
storage facilities for hire by the farmer groups and traders.
5.6 Education
The study recognized the importance of education in poverty reduction through evident
linkages between education and agricultural productivity and income of household head.
The higher the education level of the land user the higher the level of agricultural
productivity. It is therefore important for the Government to strengthen its efforts to
ensure education for all, as this is paramount if increased agricultural productivity and thus
poverty reduction is to be achieved.