Kampala- More than 9,000 smallholder farmers will gain better market access for their produce as World Food Programme (WFP) partners with Afgri-Gulu Ltd, a marketing company.
The venture will see Afgri-Gulu conduct normal grain trade using the WFP’s 5,000 metric tonne-capacity warehouse, and at the same time operate the warehouse receipt system.
WFP Country Representative Alice Martin-Daihirou, in a communication issued to the Daily Monitor yesterday said: “By partnering with Afgri-Gulu Ltd, a company which, through its parent company, has substantial experience in marketing grain in Africa – and has unmatched expertise and financial capacity to buy grain from farmer groups in Uganda – we will empower thousands of farmer groups and improve their access to markets.”
Afgri-Gulu Ltd, a subsidiary of the listed South African company Afgri-Gulu, will allow farmer groups and traders to decide how they want to trade their produce.
“This will be either through normal trading business and therefore get paid immediately, or via the warehouse receipt system,” Ms Martin-Daihirou added.
Under the arrangement, the farmers will also benefit from training from the company on good agricultural practices and how to reduce post-harvest losses.
Ms Martin-Daihirou said while WFP played an important role as a catalyst in rehabilitating the Gulu infrastructure, the agency is confident that Afgri-Gulu Ltd has the capacity to further develop the grain market in Uganda to stimulate growth and provide better returns for the farmers and others involved in the trade.
Commenting about the partnership, acting manager Uganda Commodities Exchange Deborah Mwesigye said the idea will see farmers benefit immensely.
“To Uganda Commodities Exchange this a good venture because farmers will access market for their produce through the WRS,” Ms Mwesigye added.
pended as we jointly agree on how to deal with this issue once and for all,” Mr Imran said.
In an interview on Tuesday, UNBS executive director Ben Manyindo wondered: “Why should the inspection be done here and not in the country of origin?”
He continued: “What happens if the imports end up being unfit for usage/consumption where will it be dumped? Isn’t it better to do it from the country of origin so that incase of problem it’s easy to find a solution while there?”
Although Mr Manyindo disputed the claim that ongoing enforcement of pre-inspection of imported used vehicles (PVOC) was not a consultative process, he said engagement over the matter will continue as they seek to enhance compliance of the scheme—PVOC.
The warehouse receipt system model allows farmers to process, bag and store grain at the furnished licensed premises as well as use their produce as collateral to access finance.
A legally tradable electronic receipt, which is a document of title indicating the quantity and quality of stored goods can be used by the depositor to obtain a bank loan.