Why Farmers need to Produce for the Market. Published by the New Vision of 12th March 2009


Currently, there are efforts to revive cooperatives and a wide range of programs supported by government of Uganda such as NAADS and other private sector organizations, to help farmers market their produce. Government has also formulated the Marketing and Agro-Processing Strategy (MAPS) under the ministry of Trade, Tourism and Industry (MTTI).

However, a discussion paper on “ Promoting Market Access for the Rural Poor” by the International Fund for Agricultural Development(IFAD) in 2003 indicates that the emergence of private sector market intermediaries to fill the vacuum left by the withdraw of the state has not worked as expected. Evidence suggests that most farmers stop at production and have not established long term relationships with the buyers both in the domestic and export markets.

Yet, an analysis of agricultural market food price reports by Fit Uganda Limited for 2008 and January 2009 indicates that food prices have increased and new markets such as Southern Sudan have opened up. Therefore, a number of questions like, ‘Why are Ugandan typical farmers not taking up these opportunities?’ ‘Is government doing enough to help farmers market their produce?’ ‘Is the private sector touching the right buttons as regards farmer’s access to markets have remained un -answered.

According to Grace Maiso, a Program Manager with a non Governmental organization –Environmental Alert, the consumer is the biggest driver of market demand. Interventions on the supply side alone will not transform smallholder agriculture. There is need to focus on the demand side by increasing the purchasing power of Ugandans to enable them consume more of the products that are being produced by farmers.

Additionally, the government, private sector and Civil society organizations should support initiatives that enable farmers shift from producing what the market can absorb, to producing to meet specific requirements of buyers. By linking with buyers in advance of production, farmers would have a more assured market at an agreed price.

To avoid the problem of middlemen, farmers need to be organized into producer organizations. However, for these producer organizations to succeed they must be able to provide demand driven services and represent the interests of their members to stand alone as sustainable business organizations, enter into and deliver on contracts, demand and pay for extension services as well as access financing and become recognized players in the market.

To make matters worse, many farming households are trapped in a vicious cycle of selling food at low prices at the time of harvest, only to buy the very same kinds of food back at much higher prices a few months later. There is therefore, need to scale-up government initiatives like warehouse receipt systems, which provide farmers with a way to access reliable markets at reduced price risk and also provide a source of credit finance. This call for the creation of certified produce Bulking Centers in rural areas across all regions of Uganda where the stored produce could either be sold to the warehouser for current market price, deposited for retained ownership, used to secure bank loans and later sold, or withdrawn for personal use or a combination of this list.

There is need to support a viable marketing system that delivers other services to farmers including relevant market information, proper storage facilities, standards of produce and their enforcement, in addition to providing linkages between the farmers and the buyers. However, personal interactions with farmers in Mubende and Kyenjojo districts indicate that market information distributed by Government and Civil society organizations is sometimes obsolete by the time it is accessed by farmers.

Ambrose Bugaari
Enterprise Development Specialist
Ambrose_bugaari@yahoo.com