Identifying market opportunities for Smallholder farmers in Uganda

Abstract

Kampala has a population of over 1.2 million inhabitants that is growing at a rate of over 3.9% per year. The growth of the city represents a large expansion in markets for agricultural products, and offers a strong deman for a wide range of food products. This paper reports the findings of a study to assess the market demand in Kampala for the agricultural products that were prioritized by farmer organizations in the National Agricultural Advisory Service, NAADS, trailblazing sub-counties, and identify other potential crop and livestock products that are in high demand or scarce supply and that could potentially be produced by Ugandan farmers. This study includes: a) livestock products, b) roots, tubers and plantains, c) fruits and vegetables, d) legumes and oil crops, e) cereals, and f) high value products. Information on the purchase  conditions for the range of products identified, in produce markets, local stores and kiosks, butchers, small and large supermarkets, and food-processing industries was collected and analyzed. The study shows that there exists a demand in Kampala for the majority of the products prioritized by NAADS farmers, and that there is demand for a number of additional products that could be produced by small farmers. While produce markets continue to constitute the highest volume demand for agricultural products, local supermarkets, small shops and kiosks report higher growth in demand across all food categories studied. The growth of the large, multi-national supermarket sector constitutes a challenge to the smallholder farmer. These outlets offer higher prices but have more exacting purchase conditions, especially in terms of quality and frequency of delivery. The paper concludes that to meet these emerging food demands requires not only effective delivery of support services but also that agricultural research organizations provide market and technical information on which small holder farmers and their service providerscan make appropriate production decisions.