By Communications Staff
Agribusiness Development Centre (ADC) supports farmers in 4 different regions of the country by training them in good governance, financial literacy, marketing and a special training for coffee and cocoa farmers in price risk management.
During the pandemic, ADC carried out a research through its experienced group of business advisors in the Eastern, Western, Central and Northern regions to find out how the pandemic had affected their businesses and lives so that solutions are found to the challenges.
Below are some of the challenges and some of the solutions ADC adopted:
- Drop in Prices for example milk ugx 800-500, Cocoa 7000-6500 which leads to increased side selling.
- High Prices of Agricultural Inputs like quality Seeds/Fertilizers or pesticides.
- Low liquidity levels for SACCOs due to low Savings, and credit due to lack of mobilization [Two most areas where SACCOs remain Liquid]
- There is a high default lending {90% of borrowers are into arrears]
- Low subscriber growth because of halt in operations which means there are no new members coming registering
- Lost contracts with Buyers [Millers] because the FBOs could not meet the required quantity.
- Exporters are holding on stock, no longer buying from local buyers. [Cocoa – Bundibugyo]
All the above challenges need a combined effort from ADC and its partners to support the FBOs to get back on their feet.
ADC has created an e learning tool to give farmers trainings virtually to continue building their capacity so that they can become self-sufficient. An SMS system was also adopted during the lockdown, daily messages that enlightened farmers on measures of how to keep safe from COVID19 and the daily tips on financial literacy especially during a crisis.
ADC also created a WhatsApp group where most farmers who have smart phones can interact and share experiences but most importantly it acts as a market connection for farmers who advertise on the platform but also referrals from the Business Advisors and processors on the group.
Finally, one of ADC’s effort is towards working with Partners to create packages and develop sustainable modules to support farmers.
Great appreciation goes to those that have supported ADC to be able to continue supporting Farmer Based Organizations (FBOs).
