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Agriculture rebounds as economy recovers

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Prices of agricultural products are starting to rebound as the easing of lockdown measures in Uganda open up places of food consumption.

Evans Nakhokho, the chief manager, Agribusiness at Centenary bank, said during a thought-leadership forum hosted by the bank that economic recovery interventions had triggered a five per cent increase in food prices.

“The five percentage point price improvement is largely attributed to the gradual recovery of activities in the agricultural sector and the economy as a whole. A case in point is the improved price of matoke and other foodstuffs,” Nakhokho said.

Key to this recovery is the role that has been played by both financial and non-financial services in helping to ease the access of credit to framers, which, according to Nakhokho, raised the fortunes in the sector.

“Financing plays an instrumental role in boosting agricultural activities. The structured ecosystem that focuses on both financial and non-financial services has enabled the utilization of credit. This year, we have disbursed close to Shs 600 billion, of which 60 per cent has been issued to smallholder farmers.”

The symbiotic relationship shared by the banking sector and agriculture means that both have been pivotal to each other’s recovery efforts, according to Nakhokho.

“Agriculture financing contributes about 12 per cent of the total lending to all sectors in the banking industry, which is approximately Shs 2 trillion,” he said.

Beyond the financing, banks have also offered guidance to their customers in relation to managing their credit and how it can be invested for a strong return on investment, according to Nakhokho. He said they had reviewed business projects and even restructured the loans to make it easier for customers to pay back the money.

LESSONS

Mona Ssebuliba, chief operating officer, Agricultural Business Initiative (aBi), said their focus as an organization has been on stabilizing and strengthening financial institutions to ensure that agribusiness financing is supported.

“This has been implemented by rescheduling lines of credit (principal and interest) for a period of 12 months, reduced interest rate from an average of 13.5 per cent to 8.2 per cent on all running facilities…”

Ssebuliba said. Ssebuliba said farmers have to improve their businesses if they are to survive other challenges. He advised commercial farmers to have “the ability to swiftly adapt to improved business models, digitizing for improved resilience, business monitoring, and putting in place business continuity plans for the unexpected occurrences…”

ASSESSING COVID IMPACT

Martin Fowler, the agriculture adviser, United States Agency for International Development (USAID) Uganda, recently stated that the Covid-19 lockdown presented mixed results in the prices of food. According to Fowler, there was a slight spike in staple food prices between March and April, followed by a slight decline, though, to August.

“Maize prices rose rapidly in the early weeks of Covid-19 lockdown (mid- March to April) from Shs 1,129 to Shs 1,458 per kg. This trend was caused by a combination of panic buying, speculation, government purchases and supply-chain disruptions. Other staples mirrored this trend,” Fowler said.

According to Fowler, food prices currently remain close to (significantly above, in the case of beans) 2019 levels and the five-year (2015-2019) averages, which shows that the sector has for the meantime managed to weather the storm from the impact of Covid-19 on the agricultural sector.

Effecting of the lockdown by the government, therefore, led to a decline in effective demand for food, which reduced household incomes, according to USAID.

Agriculture experts have now projected that the significant loss of formal sector jobs and incomes as a result of the impact of Covid-19 will continue to impact negatively the domestic demand for food, and their prices on the market. Similarly, international and regional demand prospects for agricultural commodities remain uncertain despite the improvement in food prices.

Original Post: The Observer

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FARM NEWS

National Coffee Forum Petitions Parliament Over UCDA Merger

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Coffee stakeholders through National Coffee Forum say UCDA merger will disrupt the coffee sub-sector. Coffee is one of the leading sources of foreign exchange for Uganda

Coffee stakeholders through the National Coffee Forum – Uganda (NCF – UG) has petitioned Parliament through the Speaker over the proposed mainstreaming of Uganda Coffee Development Authority (UCDA) into Ministry of Agriculture, Animal Industry and Fisheries (MAAIF)

The government plans to merge a number of Agencies to the line Ministries in a move aimed at saving about Shs1 trillion annually. If the move succeeds, UCDA will be taken to MAAIF.

However, coffee stakeholders through NCF – UG say that they find the proposal to take UCDA to MAAIF untenable and detrimental to the coffee sub-sector.

NCF-UG is a private foundation whose membership includes farmers, processors, exporters, roasters, brewers and researchers, among others.

The Forum Chairperson Francis Wakabi says that mainstreaming the entity will negatively affect the achievements Uganda has attained in coffee production and export.

“This decision will negatively affect our access to the international market and will stunt Uganda’s economic growth opportunities by distorting the functions of UCDA that have stabilized the industry over the years,” said Wakabi in a petition dated February 21, 2024. The petition was copied in to the Chairperson of Parliament’s Committee on Agriculture, Animal Industry and Fisheries as well as all MPs.

He adds that Uganda should not risk its achievements by tampering with UDCA that is the main contributor to our coffee success story.

“Mainstreaming it would therefore disrupt the many livelihoods that depend on the industry and adversely affect the badly needed foreign exchange for the country,” the petition reads in part.

As a result of UCDA coffee regulation, Wakabi says that Uganda’s competitiveness was elevated on the global market, ensuring high quality Uganda coffee and enabling Uganda’s coffee to displace that of Brazil and India in Italy and UK coffee markets.

“… World over, coffee is supervised and regulated by a specialized body like UCDA for purposes of institutional memory and specialized focus. Experience from Ethiopia and Kenya who disbanded their specialized coffee authorities and mainstreamed them back into the relevant ministries had to reverse their decisions after registering negative outcomes,” said Wakabi.

The Forum further says that the European Union (EU) buys over 60% of Uganda coffee, making it the biggest market for Uganda.

“The EU has introduced a new regulation called the EU deforestation regulations (EUDR) which bans export of coffee from deforested land, taking effect from 2025. This calls for farmer traceability and the EU commission in Uganda is already working with UCDA to implement the said regulations. They require a country to constantly monitor deforested areas and map all the farmers for purposes of implementation of the farmer traceability program to maintain a high standard of quality. It was reported that Uganda has achieved most of the requirements under the EUDR and required a few steps to be declared compliant. Monitoring and implementing the scheme for the millions of farmers is a tedious activity which requires a specialized unit that can be best implemented using the already established structures of UCDA. Disrupting the current UCDA structure will not only halt the progress made in achieving compliance, but also risk reversing the gains made,” added Wakabi.

He avers that UCDA has been able to greatly contribute to Uganda’s improved Coffee quality through implementation of programs such as certification of Coffee nurseries to ensure quality of planting materials, Provision of Coffee specific extension services and agronomy to improve production and productivity, Provision of technical expertise in Coffee rehabilitation, post-harvest handling practices and pest and disease management and provision of coffee processing equipment like wet mills to farmers and cooperatives to improve quality and promote value addition. The coffee stakeholders are worried that once UCDA is taken to MAAIF which is loaded with many crops and projects, coffee, a key source of foreign exchange for Uganda may not get the necessary priority. Coffee stakeholders argue that if indeed Parliament is a people-centred institution, it should listen to the views of farmers and other stakeholders and retain UCDA as a semi-autonomous agency.

“Given the above position with the attendant reasons, the NCF advises that the proposed mainstreaming of UCDA into MAAIF should not be implemented and that the proposed Bill No. 30 (part VII) be dropped in order not to disrupt the industry and the progress made under the stewardship of UCDA. All coffee stakeholders are unanimously in agreement with this position,” reads the petition in part.

Source: businessfocus.co.ug

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Govt to import 10 million vaccines to control cattle disease

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Entebbe, Uganda.  Government is set to import 10 million doses of vaccines to enable scaling up of ring vaccination as the fight to eradicate Foot and Mouth Disease (FMD) in Ugandan cattle enters a new phase.

Cabinet chaired by President Yoweri Museveni on Monday also proposed that once ring vaccination is complete, farmers start paying for the FMD vaccines in a compulsory vaccination scheme, and thereafter, trade in animal products, will be restricted to those adhering to the plan.

Minister of Agriculture, Animal industry and Fishers Frank Tumwebazwe on Monday shared the resolutions after Cabinet laid out strategies to contain the disease that has hit 36 districts.

Cabinet agreed to create a revolving fund to enable procurement of sufficient FMD vaccines to facilitate compulsory bi-annual vaccination of the susceptible domestic animal population. It also approved a plan for farmers to pay for the vaccines while government covers other costs.

“Vaccination is to be made compulsory. Proof of vaccination will be a precondition for any farmer to sell any animal products,” said Minister Tumwebazwe.

“I appeal to fellow livestock farmers and stakeholders to understand and appreciate these effort as we steadily move to eradicate FMD in Uganda just like other animal diesases like rinderpest wre eradicated.”

Ntoroko veterinary disease surveillance team conducting FMD surveillance and sample collection

The 36 districts currently affected and under quarantine are Budaka, Bukedea, Bukomansimbi, Bunyangabu, Butaleja, Fortportal City, Gomba, Ibanda, Isingiro, Kabarole, Kasanda, Kayunga, Kazo, Kiboga, Kibuku, Kiruhura, Kumi, Kyankwanzi, Kyegegwa, Kyotera, Luuka, Lwengo, Lyantonde, Mbarara, Mbarara City, Mityana, Mpigi, Mubende, Nakaseke, Nakasongola, Namisindwa, Ngora, Ntungamo, Rakai, Rwampara and Sembabule.

All districts neighboring the affected districts are at high risk, under strict surveillance, and the authorities have been advised to remain vigilant.

These include Apac, Amolatar, Bugiri, Bushenyi, Butaleja, Hoima, Iganga, Jinja, Kabale, Kaberamaido, Kaliro, Kamuli, Kamwenge, Katakwi, Kasese, Kibaale, Kiboga, Kyenjojo, Mbale, Masindi, Mayuge, Mukono, Namalemba, Nakapiripirit,
Palisa, Rukungiri, Sironko, Wakiso and Soroti.

Tumwebaze assured farmers that in the next one or two months, his Ministry expects to receive and dispatch 2.3 million doses of the FMD vaccine to the affected and susceptible districts for ring vaccination scale-up.

He told parliament earlier that as a way of increasing availability of Foot and Mouth Disease vaccines in the country,
Uganda’s National Agiculture Research Organisation (NARO) has started the process of formulating and developing an FMD vaccine for Uganda.

Source: The independent

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FARM NEWS

Farmers losing Shs4 trillion due to livestock diseases

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ScienceDirect has revealed that farmers in Uganda lose more than $1.1b (Shs4.1 trillion) in aggregated annual direct and indirect loss due to the rising spread of tick-borne animal challenges, with the commonest and economically damaging tick-borne disease being the East Coast Fever.

The livestock industry in Uganda and its productivity continue to be threatened by a number of diseases many of which are tick-borne related.

This, Dr Anna Rose Ademun, the Ministry of Agriculture commissioner animal health, said results from arcaricides that have become resistant, thus the need to ensure collaboration and get solutions to the problem.

“There are ongoing efforts by the Agriculture Ministry, in collaboration with the Food and Agriculture Organisation to support diagnosis of tick resistance to acaricides at regional laboratory centres but this is not enough,” she said during the livestock industry key stakeholders meeting in Kampala, which had been convened to discuss and prioritise areas for tick control.

The stakeholders included veterinarians, extension staff, farmers, processors and government representatives.

Ministry of Agriculture is already working on the Managing Animal Health and Acaricides for a Better Africa Initiative, which seeks to, among others, provide sustainable solutions to enable small-scale farmers maximise the potential of their cattle by developing and practicing methods that can successfully manage tick infections in cattle.

During the meeting, the TickAcademy App, which will support farmers in managing tick infestations was also pre-launched.

By the end of January, farmers and extension workers will be able to access the app’s educational content, which includes simple-to-watch films, to help them become knowledgeable about tick control.

Mr Enrique Hernández Pando, the GALVmed head of commercial development and impact, said the Managing Animal Health and Acaricides for a Better Africa Initiative will be important in tackling acaricide resistance challenges as well as help farmers and animal health officers to access creative methods of addressing the problem of acaricide resistance.

During the meeting, stakeholders jointly agree to train and sensitise field staff and farmers about tick management strategies that work, as well as strengthen the diagnostic infrastructure and testing capabilities for tick resistance and other animal health-related concerns.

Others will involve making it easier for farmers to obtain credit from savings institutions run by farmer groups at a reasonable cost so they may purchase specialized equipment for applying pesticides.

Mr Nishal Gunpath, the Elanco Animal Health country director south and sub-Saharan Africa, said they will support the Initiative to drive livestock in a better direction, noting that it will also help small-scale livestock farmers to maximise their potential.

Original Source: Daily Monitor

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