A 36% increase in farm-gate prices has been recorded

By Joan Pounds

KAMPALA, Uganda - A 36% increase in farm-gate prices has been recorded in a joint project involving Uganda local government authorities and international multilateral lenders to improve farmers’ incomes.

The Community Agricultural Infrastructure Improvement Programme (CAIIP-1) has been funded by loans from International Fund for Agricultural Development (IFAD) and the African Development Bank (AfDB).

CAIIP-1 was launched in October 2007 and ended last year.

Presenting a project report to the stakeholders during a recent meeting in Kampala, Professor Augustus Nuwagaba of Reev Consult International said the programme registered several impacts in the communities.

He said, “An increase in farm-gates prices of 36% compared to the baseline in 2008 has been registered by the project. This is attributed to the interventions in rural roads improvement that geared towards enhancing improved farmers access to markets. More traders can now access the farms meaning increased competition, higher bargaining power and increased farm gate prices.”

Other positive impacts included higher agricultural productivity and marketing coupled with job creation for the youth in various parts of the country.

Alex Onzima, Uganda’s state Minister for Local Government, said the donor funded programmes such as CAIIP-1 have yielded positive results.

“CAIIP -1 has been one of the most successful programmes funded by international multi- financial institutions. Since its inception, it has funded the construction of 4,384.kilometres of community access roads, 578 kilometres district feeder roads, 77 rural agricultural markets and also installed 123 agro-processing facilities for value- addition on grains and milk,” Onzima said.

Some 35 district leaders attended the function to formally wrap up CAIIP -1 in Kampala.

The Minister said with the support of Development Partners, the government has managed to reduce poverty, increase access to markets for agricultural produce harvested by smallscale farmers.

AfDB contributed $45million while IFAD added another $32million and the government topped up with $6million.

CAIIP-1 programme was implemented in 35 districts across the country with the major objectives being to enhance farmers access to markets and attract competiveness prices by way of improved rural infrastructure.

The CAIIP-1 programme was implemented in three components which include Rural Infrastructure.Community Mobilization and Program Management.

Prof. Nuwagaba said there had been an increase of over 40% in the share of the market price s of various commodities between 2008 and 2011. This was because the volume of produce marketed has gradually improved particularly for beans and coffee.

“When community roads are kept in good condition, prices of agricultural produce stabilize at competitive levels whether farmers sell at farm gate or through other channels with a multiple effect on house hold incomes,” he said.

To make sure that there’s continuity Prof. Nuwagaba asked the Ministry of Local Government to allocate enough resources to local governments if they are to maintain the infrastructure such as roads and agro-processing facilities.

Patrick Mutabwire, the Permanent Secretary in the Ministry of Local Government said district administrations now have the capacity to maintain after being allocated equipment and money sourced from the Uganda Roads Fund.

“Local farmers in those areas where facilities like milk coolers, rice and maize mills have been installed should stop selling their produce in raw form. They should add value before the produce is released on the market,”he said.

However several district leaders said the funds allocated are not enough to enable them carry out routine maintenance.