Uganda Wakiso program 1600-3003

Report: July 30, 2009

Excerpts from a report for the period from January to June, 2009

Objective: By 2010, 271 farmers in Wakiso Sub County will have timely access to credit, appropriate technology and crop husbandry services and collective procurement of inputs leading to increases in land size to at least two - four acres of maize, beans and mushrooms yields/production to 67%, 80% and 100% respectively.

To date, a total of 223 farmers (133 from the previous phase plus 90 from the new parishes) have been trained in post-harvest management and value addition. As a result of training farmers in post-harvest management, there is reduced crop damage by pests and diseases as well as increased yields due to farmers using recommended pesticides and modern grain threshing and crop rotation methods.
The number of farmers who increased acreage of land cultivated from two to three – four, was high during this season from 33 at the beginning of the first season to 90 at the end of the second season (an increase of 57) due to increased prices to UgShs 550 (about $0.27) from UgShs 350 (about $0.17) per kg of maize and to UgShs 1,400 (about $0.70) from UgShs 1,100 (about $0.55) per kg of beans.
The marketing committees have improved on delivery of agribusiness services and marketing knowledge offered to farmers after the marketing officer regularly visited and reminded them about their roles. They need to be visited regularly and reminded of their roles for optimum performance in providing needed information to farmers.
Voluntary Action for Development (VAD) provided 23 follow-up visits to on-farm technical training to 90 farmers of the 183 registered in savings and credit groups. Of these, 30 of them have invested in mushroom growing, 18 in beans and 42 in maize. Farmers adopt new farming techniques more quickly when trained on their individual farms.
To date, a total of 223 farmer members of Savings, Credit and Cooperative Organizations (SACCOs) have been supported with group trainings in savings and credit management, loan repayment and recovery.

There has been a repayment rate of 76.2%. As most of their income comes from farming, farmers cannot pay back loans on time when there are prolonged drought spells as occurred this year. Also, some farmers are storing produce in hopes of future higher prices. Loan repayments are used to lend to other farmers.
Of the cumulative savings in four groups of $3667.50, $3500 belongs to one group; their success is attributed to their location (a peri-urban area with a lot of active economic activities), high membership, and good governance.
Depending on each SACCO’s rules, the dividends can be retained or shared. Many of the members preferred to put their money in savings than in shares because savings can be withdrawn at any time and at no additional cost compared to a share which cannot be withdrawn at any time, rather paid through dividends on a yearly basis. VAD will continue to sensitize the SACCOs to invest more in shares for sustainability of the SACCOs as well as individual farmers gaining from dividends in the future.
SACCOs have signed agreements with Maganjo Farmers Association (MAFA), which is a non–profit, non–governmental association created in 2001 and officially registered in 2004 with the district government (District) to carry out agricultural development activities in Wakiso District. A statutory institution within the agricultural marketing sector, it buys the produce in bulk at optimal prices depending on prevailing prices. MAFA also provides free training on post-harvesting techniques, especially in proper drying and storage. Farmers in these areas were facing problems with middlemen who exploit them by purchasing their produce at low prices. With MAFA’s intervention, farmers are now less vulnerable to exploitation and are earning increased incomes.

Objective: By 2010, 271 farmers in Wakiso Sub County will strengthen their bargaining position through collective marketing of beans, maize and mushrooms and will engage in value adding activities resulting in 17%, 33% and 50% increase in prices received by each farmer for maize, beans and mushrooms respectively.

To date, a total of 71 farmers (41 from the previous phase and 30 from new targeted parishes) have been trained in packaging and supported with mushroom packaging materials to add value to their products. As a result, 12 men and 18 women have sold 180 kgs during this quarter; prices for mushroom products have increased from UgShs 2,500 (about $1.25) per kilogram to UgShs 3,000 (about $1.50).
Nine market newsletters, i.e. one per month, have been produced for the 90 farmers from the new parishes with 1080 copies distributed. Because of access to market information provided to farmers, over 70% sold their produce collectively at a good price rather than working individually through middlemen. Better prices have also resulted from adding value to products with techniques such as sorting, cleaning, grading for maize and beans and packing for mushrooms. Due to illiteracy and functional illiteracy, members are slow to learn and adopt use of the monthly bulletins.

Objective: By 2010, VAD has strengthened its organizational, technical and managerial capacities to increase its own capital base by 30% and its loan portfolio by 100% to ensure continuing support to the 10 cooperatives and assist project participants to achieve better returns.

VAD’s microfinance entity (MFI) is improving in its ability to respond to the needs of the farmers, receiving 152 loan requests since February 2009, an increase of 58.5% from the same period the previous year. Thirty-three percent (33%) of requests were addressed: VAD does not have adequate funds to meet all loan demands and not all farmer requests complied with requirements for membership.
All loan proforma modules are now implemented and therefore VAD MFI is able to retrieve necessary information for decision-making including performance monitoring tools for risk analysis, dropout rate and repayment rate.
It is projected that with increasing demand for financial services, VAD MFI will try to bring services nearer to make them accessible and timely. In the next three years, VAD will open at least two local branches in one of the 11 parishes after a market survey, planned in January 2010, is carried out. This will require VAD to secure more staff and funds for loans.
VAD MFI is consistently establishing itself in the market with unique products that are particularly responsive to the needs of farmers as 86% of VAD’s clients are rural-based. VAD is overwhelmed by the increasing demand for financial services and is working to satisfy this demand through development of a strategic plan for the next three years to achieve increased operational efficiency, thus allowing VAD to address this increased demand for services. VAD is also working to keep loan recovery in a range of 92% to 100%.

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