Ferris, S.

Kaganzi, E

CGSpace

Linking farmers to markets : theNyabyumba potato farmers in UgandaFor farmers in south-western Uganda and neighbouring Rwanda, round orIrish potatoes are mainly grown as a food security crop. Farmers typicallysell ungraded potatoes at the farm gate and, due to lack of organisationand limited storage facilities, the bulk of the harvest is sold at peak harvesttimes. Consequentlyfarmers receive lowprices and there havebeen few incentives forinvestment in thesector. However, withthe rapid expansion ofurban areas,particularly Kampala,food habits arechanging. This iscreating new marketoptions for betterorganised farmers. Onesuch farmers’ group inKabale district isselling graded, highquality potatoesdirectly to a fast foodoutlet in Kampala. Tomeet the stringentquality parameters for this contract, the farmers have  introduced severalinnovations at the technical, organisation and marketing levels. Making thesechanges has been possible through effective support from both research anddevelopment services and the ability of the farmers’ group to invest in newoptions through their newfound income.The Nyabyumba farmers’ groupThe Nyabyumba farmers’ group is located in the highlands of Kabale district,Uganda. The group started in 1998 as a farmer field school focussing on seedpotato production. They became a member of the Uganda National Seed PotatoProducers’ Association (UNSPPA) in 1999 and, for several years, successfullyproduced and sold potato seed. In 2002, demand for potato seed began to falland the group sought assistance from the Regional Potato and Sweet PotatoImprovement Programme (PRAPACE) to seek alternative market options. CIAT’sagro-enterprise team provided a local service provider, the NGO Africare,  withstaff training in “market facilitation” and technical marketing assistance indeveloping a new potato enterprise. The process was conducted in 3 phases:1:  Planning and preparing for the marketThe farmers’ group worked with Africare’s market facilitator to study thechanges in demand for potato, current production status, profitability,organisational strengths and the types of support they could obtain from theirresearch and development partners. A marketing team was established, whichcomprised members of the farmers’ group and service providers.2: Market chain analysis and agro-enterprise designThe marketing team conducted a market chain analysis to assess the conductand performance of actors and services involved in producing, handling, andNo. 22June 2005The Highlightsseriessummarisesresearch resultsand policyimplications fromthe work of CIATand its partnersin AfricaCIAT’s agro-enterprise team provided a local service providerwith staff training in “market facilitation” and technical marketingassistance in developing a new potato enterprise.For moreinformationcontact:Shaun Ferriss.ferris@cgiar.orgor Elly Kaganzie.kaganzi@cgiar.orgCIATAfrica CoordinationKawanda AgriculturalResearch InstituteP.O. Box 6247Kampala, UgandaPhone:+256(41)567670Fax:+256(41)567635Email:ciat-uganda@cgiar.orgInternet:www.ciat.cgiar.orgselling potatoes to various marketoutlets. This study identified severalmarket opportunities for potatoes inKampala. One of the most promisingwas ‘Nandos’, a multinational fast-foodrestaurant, which buys 5 to 10 tonnesof potatoes every month. Based ontheir initial analysis, further meetingswere held with Nandos staff toundertake a cost–benefit analysis andconfirm the viability of direct sales.Using participatory methods, such asmarket mapping (see Figure 1), andresults from the market survey, thefarmers and service providersdeveloped an action plan.3:  Establishing the enterpriseHaving developed their plan, themarketing team returned to Kampala,with their market facilitator tonegotiate contractual terms withNandos. This included aspects suchas: price, variety, volume, quality,frequency of supply and terms ofpayment. To meet these specifications,the farmers group had to make severalchanges and face several challenges:-Financial: The group had to open abank account, as payment was bycheque. For the first 3 months, thefarmers used their own resources andhad borrowed USh 3 million ($1,600).Organisational: A managementcommittee was formed and membersreceived basic training in recordkeeping and accounting.Communication: To overcome thecommunications problems related toliving in remote upland villages, thegroup purchased a mobile phone. Thiswas vital in maintaining links withNandos and transport companies.Consistency of supply: The farmersmade changes to provide a regularmonthly supply through a combinationof: adopting new varieties; staggeredplanting; planting in wetlands; usingdrip irrigation; building stores andbuying potatoes from other farmerswhen their stocks were low. Throughthese means the group managed todeliver a total 76.5 metric tonnes (mt)of potatoes to Nandos at a value of USh24,052,176 (US$13,000) between July2003 and April 2004.Quality: The farmers learned how tosort and grade their potatoes. Failureto meet the grade was a costly exercisefor them, but over the first 8 monthsthe level of rejects fell from as high as80% to less than 10%. By December2004, the farmers were consistentlysupplying potatoes that met Nandos’stringent quality requirements.Experimentation: To achieve thisperformance, the farmers adoptedmicro-irrigation in upland areas, whichimproved the quality of off-seasontubers. To synchronise productionmembers have taken on strict plantingschedules. Farmers also dehaulm thecrop prior to harvesting, which reducestuber moisture content and extendsstorage life. The experimental work wassupervised by specialists from theNational Agricultural ResearchOrganisation of Uganda (NARO).Impact: By May 2005, the farmersgroup has expanded to a membershipof 120 members, 80 of whom arewomen. They have supplied 190 mt ofpotatoes to Nandos, bringing theirincome to USh 60,000,000 orapproximately US$ 33,000.ConclusionsThe Nyabyumba farmers’ enterprise isnow more firmly established-althoughthey face many challenges, they areseeking to develop strategies forgrowth. The group’s experiencesdemonstrate that:• A market orientation enablessmallholder farmers tosuccessfully link themselves tohigher value markets, but theprocess requires long termsupport from research anddevelopment partners.• This approach enabled farmers toincrease their income and toinvest in better agronomicpractices. Women played a keyrole in developing and sustainingthe business.• Access to innovations at criticalpoints in the enterprise processare vital to success.• Enterprises must be based onthe analysis of sound technicaland economic information.• Participatory approaches permitfarmers to achieve a betterunderstanding of the challengesfaced by each actor in the marketchain.• Farmers can gain confidence byconsolidating relationships withtheir buyers.Figure 1: Example of a map of the existingpotato production and marketing chain inKabale, drawn by Nyabyumba farmers’ group.We gratefully acknowledgefinancial support from CIDAfor this work.AFRICARE

Linking farmers to markets: the Nyabyumba potato farmers in Uganda

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Linking farmers to markets: the Nyabyumba potato farmers in Uganda

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