Overview:
Market cartels are jeopardizing Uganda's horticulture trade and export revenue. Stakeholders urge government action to streamline the sector.
KAMPALA, Uganda — Cartels and brokers are increasingly squeezing Uganda’s horticulture trade, manipulating market prices and threatening the nation’s vital export earnings, according to sector stakeholders.
Juliet Kyokunda, country director for TechnoServe Uganda, said these cartels inflate prices for consumers while simultaneously offering meager returns to farmers, undermining the profitability of the entire value chain.
Speaking Wednesday at the National Horticulture Convention in Kampala, Kyokunda detailed how exploitative middlemen historically dictate low prices to farmers who lack market information. TechnoServe has worked to counter this by directly connecting exporters with farmers, establishing collection centers and fostering contract farming schemes that educate growers on quality standards.
“We initially believed that directly linking farmers to markets would eliminate this problem,” Kyokunda explained. “However, we’ve since realized that middlemen are, in some cases, indispensable to the supply chain. Our current focus is on sensitizing these middlemen and integrating them constructively into the sector to ensure fair practices.”
While the influence of exploitative middlemen has decreased due to improved information flow to farmers, Kyokunda acknowledged their complete elimination might not be feasible. She expressed concern that cartels with high-level connections operate with impunity, making them particularly challenging to address.
Kyokunda urged the government to spearhead reforms aimed at rooting out these illicit market players.
Peter Dhamuzungu, the principal agricultural officer in charge of cash crops at the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), said the government is responding by considering a review of the current policy framework for the horticulture sector. This initiative aims to address a range of challenges, including cartels, counterfeit agricultural inputs and limited market access for farmers.
“We urge those affected to identify specific cartels so the law can be enforced,” Dhamuzungu told reporters. “Our goal is to ensure a level playing field where all participants operate fairly within established guidelines. We are confident that with this information, the government can intervene effectively.”
Dhamuzungu highlighted the uncoordinated nature of the sector’s stakeholders as a significant challenge, contributing to issues like the prevalence of fake agricultural inputs. He also noted that horticultural crops, often improved or hybrid varieties, are susceptible to higher incidences of pests and diseases. This leads to numerous interceptions of produce, directly impacting Uganda’s export markets and, consequently, national export earnings.
The MAAIF is in the process of developing a comprehensive horticulture strategy and policy, Dhamuzungu said. This framework is intended to streamline objectives, clearly define roles for each stakeholder across the value chain and enhance regulations.
“We anticipate these efforts will help mitigate current challenges and ensure operations align with our vision,” he said, adding that the goal is to establish a robust policy environment that will guide stakeholders, avert current issues and organize the sector more effectively, ensuring everyone benefits from its growth.