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AGRICULTURAL PRODUCE MARKETING FACILITY (APMF) What are your thoughts about a Wholesale Center of Trade for Agricultural Products in Kampala?

What are your thoughts about a Wholesale Center of Trade for Agricultural Products in Kampala? AN AGRICULTURAL PRODUCE MARKETING FACILITY (APMF)

 

Uganda lacks an organized wholesale market system for agricultural products. A well developed auction place for agricultural products can assist farmers in finding a reliable market place for their products. It can also assist to increase the quality of products and increase the service delivery within a sector. See the example of the Fresh Produce Market in South Africa (http://www.joburgmarket.co.za/); it is the center of trade for fruit and vegetables in South Africa and the Southern African Development Community region.

 

Agri-Profocus Coordination has been contacted to assist the shaping of the idea for the establishment of an Agricultural Produce Marketing Facility in Kampala. With more than 500 APF subscribers connected with the agricultural sector in Uganda; we can assist the development of this concept. There is potential interest to construct such market facility, however at this moment some crucial questions need to be answered and we would like to invite you to share your ideas and experiences. What do you think of an APMF in Kampala?

 

  1. Is the establishment of an APMF recommendable for the development of the agricultural sector and farmer entrepreneurship in Uganda?
  2. For which products should this facility be in place, with which products should it start?
  3. How can this type of facility assist small scale farmers to increase their share and influence in their sector?
  4. How can such a facility be managed adequately, who should be involved?

Please respond through this discussion forum so all can read and contribute. In case of tecnical problem you can respond to mvanschie@snvworld.org

 

Depending on the reactions and interest in the subject; APF is willing to organize a discussion meeting. Please when responding to these questions; indicate your possible interest in participating in such a meeting.

 

Looking forward to your contributions!

Regards

Marieke

 

Tags: markets

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Replies to This Discussion

Marieke,

I strongly suggest you get in contact with Nogamu. Both their position and their experience in this field will be quite valuable for your purposes! In case you need an introduction, please let me know. 

John

John You are right ,Nogamu will be helpful on this
Good idea. Information to subsistence farmers to produce what they can market in a profitable manner instead of what they simply can produce will be a great step forward! The link between markets and the producer can be improved substancially also using new IT-technologies as it recently has been introduced in Kenya. To help subsistence farmers I recommend to undertake commodity value chain analysis to define what to do, and then of course focus on orienting agricultural production and product development processes to respond to market demands.

Dear Marieke,

What a brilliant idea! An APMF. The idea of a  well developed auction place for agricultural products, Increasing the quality of products and service delivery within a sector! Haaa! Even the spirits of my forefarthers would smile.

Concerning the example of Joburg market, there is one fundamental point I have noted: Following a natural growth trajectory where every structural changes that took place just fitted in the growth needs. My fear is for anybody wanting to nurture the good idea to start from the possibility of copying and pasting a similar arrangement; thinking that it may work here in uganda. Examples of failure of beautiful ideas like that of the Tri-Star Apparels (U) Ltd under the AGOA arrangement notwithstanding; one needs to be conscious about the possibility of political influence. It should also be appreciated that the good example given has a very long history dating back to the 19th century.

After my admiration of the fact that the market is a city undertaking with good management; I am still wondering how such a beautiful establishment  could be effectively managed without political interference or influence; especially in the wave of prosperity for all program. If it was to be managed by the farmers, the current management capacities for the farmers organizations in the country could give anybody a clue of its future. Can this be a private enterprise, City council Initiative as for Joburg or government entity? How is its initiation and evolvement seen in reality? If a magnificent structure of a market is built from donor money is erected; is anyone sure the farmers will bring their produce to that market like it is with joburg?

One needs to reflect about the real need that necessitates such an initiative? Is it that farmers have no where to sell their produce or is it intended to stimulate production? I have heard about the already existing markets like Nakasero, Kalerwe, Nakawa...  who are not organized to the expectations of the archtects of the wonderful idea. How are these being put into perspective in the wave of such a germinating idea?  

Any way, I can see a very beautiful initiative whose benefits are worth cherishing by everybody. However, I am failing to get a clear glimpse of the process that could lead to its success. I will be glad to learn about how the process and conceptual plan of implementation is envisaged. Then I can join farming immediately.

Thanks.

 

 

I strongly support this establishment not only for commercial purpose but also for emergency support to the dying population that is rarely noticed in our african society. This should be done in conjunction with organizations like NOGAMU, KULIKA, BRAC and so on, who have some direct contact with many rural farmers.

I am all in favor of such a kind of centre. I have a good example in my country were it is managed by one of the marketing firms who buys the farmers goods and sells it to small vendors around the region and in town, to the hotels, the army, the public services and homeless centres.Some big farmers also have private stalls there .

The facility is managed by the marketing companies, farmers’ representatives.

The prices are auctioned everyday very early in the morning.

The products are perishable, fresh products. Fruits, vegetables ,tuber crops, herbs flowers. Not dry food.

Later on Fish, other aquaculture products and meat will be introduced. The facility will be established in the suburb of the town where it fairly accessible from all directions

 

 Ruth

Very nice idea. Matoke could be a nice commodity to start with. But before that, we need to know in detail how matoke trade is currently done (with all the formal and informal dynamics) and see what needs to be done to improve this trade. (Is it really true that "Uganda lacks an organized wholesale market system for agricultural products"? Many informal but organized systems extist). Such a facility should be an advantage for all the actors. If not, it will not work. Also ownership is extremely important. The APF coordination was contacted by who to assist the shaping of the idea? Is it driven by the traders, government or external forces?

Courtesy of Derrick Twagaya of NOGAMU

 

 

Dear Colleagues, to me this is a brilliant idea which all organizations with agriculture programs should embrace with open hands.


 


It should begin with fresh fruits and vegetables,  grain and cereals and later agro-processed products.


 


It should have two sections for naturally grown or organic and the other for conventional but farmers have to have knowledge of what their offers are. I think NOGAMU would be willing to liase with and be part of this facility.

1. Is the establishment of an APMF recommendable for the development of the agricultural sector and farmer entrepreneurship in Uganda?

Yes. It would tremendously augment farmer entrepreneurship.

2. For which products should this facility be in place, with which products should it start?

Initially, fruits and vegetables, since there are significant post-harvest losses associated with these. Eventually, a variety of goods (one-stop shop).

3. How can this type of facility assist small scale farmers to increase their share and influence in their sector?

i. Marketing (bulking): Benefits of economies of scale and marketing at better prices.

ii. Organization: Organized farmers, louder voices.

iii. Financial services: Access at more favourable terms. Services tailored to the needs of small holder farmers.

iv. Policy: A conglomeration of organizations in the facility will see to it that the policy environment is conducive to small holder farmers.

v. Food security: The facility will enable farmers to contribute to improved food security nationwide.

vi. Farming services: The quality and quantity of services will be greatly enhanced, resulting in improved (modern) farming methods.

vii. Inclusion of gender concerns would boost participation of women farmers, which is in the best interests of such a facility and the nation at large.

4. How can such a facility be managed adequately, who should be involved?

It should be a Public Limited Liability company, founded on public-private partnerships. The stakeholders in the company should be:

i. Farmer organizations.

ii. Local private companies.

iii. Local public companies.

iv. Kampala Capital City Authority.

v. Multi-national organizations.

vi. Government ministries.

vii. Development partners.

The stakeholders are listed in order of importance. Their roles, responsibilities, rights and returns should be clearly mentioned in the memorandum and articles of association.

The Ugandan experience with neo-liberal policy and practice has certain not-so-desirable results, which must be put into consideration when organizing the facility.

As a matter of fact, this needs further discussion and I would not hesitate to participate in a meeting of such cause.

 


Courtesy of Majanja Martin xenonmarto@yahoo.com

 

Dear All,

With the current developments the only thing we should fight for is a whole sale website where people can find buyers and sellers of the various commodities not a physical place and this is based on not only cost factors but also the safety issues to do with safety among others.
Having a central marketing place may initially lead to higher/competitive prices of the produce but when you look at the losses that come in in accessing the wholesale point might erase the targeted outcome. Most of the agricultural produce are perishable and need high care as well to ensure safety  so moving them around mindful of our poor handling state and hygiene situations would just spoil all efforts.
Existing selling points are trying to offer the option but with more entrepreneurship and consumer awareness no one would want to consume such products except that at times they are left with no choice, that's why hotels and supermarkets rarely use that option.

This is a good idea provided that sound business principles are considered before such a decision is taken. For instance, who is going to supply the produce to the market, at what price and in what quantities? How are you going to ensure that minimum quality standards are maintained? Who is going to buy the produce and at what price? Who will be your main competitors and what will be your competitive strategies? In a liberalised competitive environment like ours one needs to be careful when trading in perishable products like tomatoes,cabbages,vegetables,fruits etc. For a start maybe one should look at products like dry beans,peas,maize and enter into contractural relationship with buyers like the World Food Programme(WFP). Remember the modern approach to starting the type of enterprise you have in mind is what is the target market and what products will address their needs. Of course you have to look at the ownership of such an enterprise and source of capital, management, suitable location etc.

Does the proposal make a business sense? This has to answered adequately before embarking on any other initiative. 'Dream big but start small' may be relevant here to get the ball rolling!

 

ACORD ideas on establishment of an Agricultural Produce Marketing Facility in Kampala.

 

Is the establishment of an APMF recommendable for the development of the agricultural sector and farmer entrepreneurship in Uganda?.

         Yes, Uganda is  an agricultural economy, and setting up such a structure

         would definatly contribute to the development of Agricultuaral sector and 

         farmer entrepreneurship in Uganda, as this will offer t opportunity to farmers

         share out their expertise and experiences that will contribute to increaded

         production and  improved quality, thus attracting more market. 

 

For which products should this facility be in place, with which products should it start? Bananas, Rice, Beans, Sinsim, Ground nuts, maize.grams, sunflower. The facillity could start with products such as;  Rice, Beans, Sinsim, Ground nuts, maize.

  1. How can this type of facility assist small scale farmers to increase their share and influence in their sector?

         The facility will help assist small scale farmers  to increase their share and influence 

         in the sector the following ways;

  • Re-organising individual farmers into farmer groups.
  • Encourage produce bulking, and collective marketing.
  • Strenthen information sharing and Linkage to the facility ,buyers and other service providers.   
  • Offer training/capacity buildiing  opportunioties for small scale farmers eg  that will lead  to improved quality of products. 
  • Quality assurance.     
  • Could facilitate farmers ability to lobby for micro finance services from financial institutions.          
  1. How can such a facility be managed adequately, who should be involved?
 
         Magagement of the facility should be multi-sectoral or product catagorised.
         farmers should be directly and closely involved in the management.
 
ACORDUganda  would be willing to participate in the APF discussion to be convened.
 
Regards,
 
Caroline Adio
Team Leader-ACORD Kitgum.

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