THE REPUBLIC OF UGANDA
PRESENTATION ON P4P STRATEGY
BY
Mr. Okasaai S. Opolot
DIRECTOR CROP RESOURCES
MINISTRY OF AGRICULTURE, ANIMAL INDUSTRY 1
AND FISHERIES
Background
• The Uganda National Development Plan
(NDP) vision is ''A transformed society
from a peasant to a modern and prosperous
country'', implying changing from a
predominantly peasant low income to a
middle income country. NDP's theme is
''Growth, Employment, and SocioEconomic Transformation for Prosperity"
•
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Background (cont’d)
• The Agriculture Development Strategy
Investment Plan (DSIP) is aligned with the
NDP and is Uganda's implementation
strategy for the CAADP Compact.
• DSIP's vision is based on “A Competitive,
Profitable and Sustainable Agricultural
Sector
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Background (cont’d)
• The DSIP objectives inlcude:
• Increased rural incomes & livelihoods,
• Improved Household food & nutrition
security,
• Developed favourable legal, policy &
institutional frameworks that facilitate
private sector expansion and increased
profitability along the entire value chain
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Background (cont’d)
• DSIP investments have been packaged
under four Programmes:
• Enhancing Production and Productivity,
• Improving Access to Markets and Value
Addition,
• Creating an Enabling Environment and
• Institutional Strengthening in the Sector.
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How P4P is aligned to DSIP
• Purchase for Progress (P4P) initiative is
fully aligned to the DSIP
• Implemented through the private sector
providing the lead partnership
• Partnership between Government & WFP
is anchored on a Joint Action Agreement
signed between the MAAIF, MTIC &
WFP.
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How P4P is aligned to DSIP
(Cont’d)
• P4P fully supports the agriculture sector
DSIP which is an elaboration of the
agriculture sector in NDP. It addresses:
• Production and productivity
• Value addition and access to markets for
example through development of
infrastructure (access roads, warehouses)
and warehouse receipt systems.
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How P4P is aligned to DSIP
(Cont’d)
• WFP is the largest single buyer of quality
maize and accounts for 40-60% of the
export maize in Uganda.
• Development of farmer institutions
• Supports commodity value chains for
example: maize, beans
•
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P4P strategy
• P4P implementation in Uganda is aligned
to the NDP, the main framework for setting
of the national development agenda.
• P4P fully supports the agriculture sector
DSIP which is an elaboration of the
agriculture sector in NDP.
• Activities supported by both the central &
local governments with direct involvement
of the communities
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P4P Implementation Arrangements
• Central government, Local government,
Traders & smallholder farmers
• Partnership with agricultural development
oriented organizations
• Identification of priority interventions
along the commodity value chains for
example post harvest handling &
marketing.
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P4P Implementation
Arrangements(cont’d)
• Signing of a Joint Action Agreement
signed between MAAIF, MTIC & WFP
• Close collaboration with other donor
funded projects such as USAID’s Feed the
Future & the Livelihoods and Enterprises
for Agricultural Development (LEAD).
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What has worked under the P4P
strategy?
Infrastructure
• Warehouses have been constructed in
Gulu, Kapchorwa & Tororo & equipped
with machines for cleaning, drying,
grading, bagging & storage,
• Provided cleaning, drying, grading &
bagging equipment to Nyakatonzi & Soroti
cooperative societies,
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What has worked under the P4P
strategy? (Cont’d)
• In process to lease equipment to private
sector
• 33 satellite collection points have been
constructed, and
• Rehabilitated over 130KM access roads for
satellite collection points connecting
farmers to bigger markets.
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What has worked under the P4P
strategy? (Cont’d)
Capacity Building/Training
• Strengthening of farmer group structures,
management & legal status.
• Training of farmer groups & small scale traders
on group dynamics.
• Training on post harvest handling techniques &
business & marketing skills.
• Empowering women skills to contribute the
development of the parishes
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What has worked under the
P4P strategy? (Cont’d)
• Financing
• Farmer groups are linked to financial
institutions like Stanbic Bank, Centenary
Bank, DFCU and Housing Finance bank
where they get loans using receipts as
collateral. The high interest rates have
remained a challenge
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What has worked under the P4P
strategy? (Cont’d)
• Market and market information
• Farmers are linked to markets, in addition,
to WFP,
• Use of ICT (mobile phones) for
information and data
collection/dissemination system,
• Empowerment of farmers to negotiate for
better prices.
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Lessons learnt from the P4P
strategy
• Warehouses to be managed by
cooperatives or private sectors for a better
utilization of their capacity
• Satellite ware-houses are better managed
by smallholder farmer
groups/communities.
• Offering a uniform price for produce
regardless of quality is a disincentive.
•
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Lessons learnt from the P4P
strategy (cont’d)
• Finance
• Farmers sell their produce prematurely to
solve immediate family needs.
• P4P approach is applicable to all
commodities,
• Active involvement of all stakeholders
through commodity platforms at various
levels is important for effective
implementation (Participatory approach).
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Challenges
• Limited utilization of the WRS
• The benefits such as access to credit are
not as smooth as initially envisaged
• Continued trading in ungraded
commodities across the borders. No much
incentive to add value,
• Agricultural inputs provision to increase
production and productivity,
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Challenges
(cont’d)
• Linkages to quality oriented markets,
• Limited agricultural post harvest
infrastructure and equipment (need more
interventions in warehouse infrastructure,
access roads, and value addition
equipment).
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Way forward
• There is need to pay premium prices for
quality
• Need to strengthen agricultural finance to
provide leverage for smallholder farmers to
hold their produce in warehouses for a
longer time.
• Effective implementation of signed
partnerships agreements,
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Way forward (Cont’d)
• P4P should transform into Agricultural
Markets Support & this can be achieved
through building strong partnerships along
the commodity value chains to address the
critical bottlenecks to the agricultural
markets.
Main key players in this could be:• Private sector, Playing a leading role,
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Way forward (Cont’d)
• Public sector, creating an enabling
environment and creating Public Private
Partnerships
• FAO, addressing the lower part of the
commodity value chain,
• WFP, improving value addition and market
access,
• IFAD providing interventions in agricultural
finance; and
• Development partners.
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United Nations World Food Programme Uganda
Agriculture and Market Support
Thank You
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