NAMULONGE, Uganda — A new initiative by the Eastern Africa Grain Council (EAGC) aims to significantly boost the flow of grain commerce across the region through the establishment of “Grain Trade Business Hubs,” or G-Hubs. These centers, owned and run by farmers themselves, are designed as comprehensive solutions to the various challenges faced by small-scale agriculturalists, according to the EAGC’s top executive, speaking on Friday.
During an interview at a local agricultural exhibition, Gerald Makau Masila, the EAGC’s Chief Executive Officer, articulated that the primary goal of these G-Hubs is to empower farmers through collaborative efforts. He elaborated that the hubs will serve as vital resource points and improve the connection of farmers to viable markets.
Masila’s remarks were made to reporters attending an annual agribusiness exposition held at the National Crops Resources Research Institute (NaCRRI) in Namulonge, within the Wakiso district. This year’s event, a collaboration between the National Agricultural Research Organisation (NARO), the EAGC, and DANIDA Green Business Partnerships (DGBP), centered on the long-term viability of Uganda’s food systems, climate-smart agricultural trade, and the creation of economic opportunities.
A fundamental aspect of the G-Hubs, Masila explained, is their role in fostering collective action. By bringing together numerous farmer cooperatives, the hubs will facilitate the pooling of resources. This consolidation is expected to substantially increase the negotiating strength of farmers within the agricultural supply chain, enabling them to operate more effectively in various facets of their businesses.
Masila further pointed out that enhanced access to essential farming supplies represents another critical advantage of the G-Hubs. Through the combined purchasing power of the hub, farmers will be able to acquire superior quality inputs, such as improved seeds and fertilizers. This bulk procurement strategy is anticipated to yield considerably lower costs compared to individual purchases, thereby making these crucial resources more accessible to smallholder farmers.
The CEO also underscored the significant role the G-Hubs will play in managing post-harvest processes. Recognizing the considerable losses that can occur after crops are harvested, these centers will offer access to suitable storage facilities and implement quality control protocols. This infrastructure and the associated expertise are intended to assist farmers in minimizing post-harvest losses, maintaining the quality of their grain, and ultimately enhancing its market value.
Improving market access is another central objective of the G-Hubs. Masila indicated that the EAGC, via these hubs and its GSOKO platform, will actively work to link farmers with premium markets, both regionally and internationally. By consolidating the produce of member farmers, G-Hubs can offer larger, more consistent volumes that are attractive to potential buyers, thus improving farmers’ prospects for profitable sales. The GSOKO platform will further streamline this process by establishing a direct connection between farmers and buyers.
To foster sustainable farming practices, the G-Hubs will also provide technical assistance. Farmers will benefit from advisory services aimed at promoting the adoption of enhanced farming techniques, leading to increased yields and improved produce quality. Masila emphasized that this transfer of knowledge is vital for the long-term advancement of agriculture and the empowerment of farmers.
Beyond these services, the G-Hubs will also strive to improve farmers’ access to financial services. This includes facilitating connections with lending institutions and linking farmers to output markets, addressing a significant challenge often faced by smallholder farmers seeking to invest in and expand their operations.
Masila highlighted the EAGC’s crucial role in supporting the development and operation of these G-Hubs. This support encompasses capacity building through training programs tailored for both the management of the G-Hubs and the participating farmers, equipping them with the necessary skills and knowledge for effective operation and market engagement.
Additionally, the EAGC will provide essential market intelligence through its Regional Agricultural Trade Intelligence Network (RATIN). This system will supply G-Hubs and farmers with valuable data on market trends, pricing, and demand, enabling them to make informed decisions regarding production and sales.
The EAGC will also actively participate in policy advocacy at both regional and national levels, working to promote reforms that support the growth of the grain sector and the development of G-Hubs, thereby creating a more favorable environment for agricultural trade.
Masila noted the EAGC’s commitment to forging strategic alliances with other organizations, such as TradeMark Africa, to further strengthen the G-Hubs and enhance the overall efficiency and effectiveness of the grain value chain within the region.
From a practical standpoint, the G-Hub concept directly tackles key challenges encountered by smallholder farmers. Individually, these farmers often face high input costs due to limited purchasing power and struggle to access profitable markets with small quantities of produce. By organizing farmers into G-Hubs, the EAGC intends to facilitate collective action that overcomes these obstacles. Farmers within a G-Hub can jointly decide on suitable crops for their area, consolidate their land for more efficient production planning, and purchase inputs in bulk, leading to significant cost reductions.
In terms of post-harvest management, G-Hubs will serve as central aggregation and storage points. These facilities, developed in line with EAGC standards, will ensure proper handling and storage of harvested grain. Trained professionals within the G-Hubs will sample and grade the grain, ensuring adherence to quality and food safety standards before it enters the market.
The GSOKO platform will then provide the critical market link. Grain stored in the G-Hubs will be listed on this platform, a trade catalog distributed weekly to EAGC members. Potential buyers, including millers and traders, can view the available commodities and submit inquiries. The EAGC trade desk will then connect the farmer-producers (via the G-Hub) with the buyers, facilitating contract negotiation and ensuring secure transactions. Payments are often managed through an EAGC settlement account, providing security for both parties. Masila emphasized that this system has already facilitated substantial grain trade volumes across the region, benefiting farmers, traders, and ultimately consumers who gain access to quality, safe, and affordable grain.
Frank Tumwebaze, the Minister for Agriculture, Animal Industry and Fisheries, stated on Friday the government’s unwavering commitment to supporting agricultural research institutions, recognizing their fundamental role in the nation’s food systems.
Minister Tumwebaze stressed the vital contribution of these institutions in propagating high-quality seeds and developing safe, resilient, disease-free, and environmentally sound foundation seed.
“This forms the fundamental basis of our agriculture and our food security. Therefore, our support for these institutions will continue,” the minister affirmed.
Tumwebaze acknowledged the existing need for more researchers across the diverse disciplines within agricultural research. “We will continue our efforts to address this and increase the number of skilled personnel within these institutions,” he stated.
Dr. Sadik Kassim, the Deputy Director of the National Agricultural Research Organisation (NARO), highlighted NARO’s dedication to building resilience within the agriculture sector through the development of crop varieties resistant to drought, pests, and diseases.
He also emphasized NARO’s work in enhancing nutrition through fortified products, contributing to agro-industrialization by developing prototypes, pursuing import substitution with crops like barley and wheat, and increasing export volumes, as seen in the coffee and maize sectors.
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