Stromme Foundation has supported Farm Concern International, FCI, to implement Commercial Villages for Market Access & Financial Services Project for 1,000 smallholder farmers organized into 5 Commercial Villages in Rubirizi and Bushenyi Districts, Uganda. The main objective of this project is to improve market and trade efficiency for smallholder farmers and wholesale buyers along target value chains. This is being achieved through the Commercial Village Model, saving groups and linkages to financial institutions, business partnership with formal and informal market actors; digital innovations for trade and extension, as well as linkages to business development service providers.

 

Summary

In Uganda, access to competitive markets remains one of the major challenges facing smallholder farmers. Specifically, smallholder farmers are constrained by low level of commercialization, limited access to markets, multiple layers of predatory market players that reduce gross margins and, limited access to market information. Farm Concern International (FCI) is implementing the Commercial Villages for Market Access & Financial Services (COVIMAP) project to address these market constraints. FCI is applying the value network approach to targeted value chains in Rubirizi district of Uganda, to improve access to markets for 1000 households, 10 wholesale buyers in 5 villages. The main objective of this project is to improve market and trade efficiency for smallholder farmers and wholesale buyers along target value chains. This is being achieved through the Commercial Village Model, saving groups and linkages to financial institutions, business partnership with formal and informal market actors; digital innovations for trade and extension, as well as linkages to business development service providers. Specific interventions include; 

  • Market research and value chain analysis through developed tools; Selection of; 1 anchor value chain, 2 core value chains and 3 non-core value chains; buyer identification, price improvement by 10%.
  • Commercialization of target value chains through the Commercial Village Model; prioritized value chains based on markets; increased productivity by 10%; 5 Commercial Villages with 40% women and at least 30% youth, increased profitability by 15%.
  • Linkages to markets through the Market & Trade Hub Model and, Traditional Informal Market Efficiency (TIME) model, targeting wholesale buyers, agro-processors, agro-trading companies prioritized and engaged as business partners with Commercial Villages in the Rubirizi district 

The project anticipates the following outcomes;

  1. Increased savings by smallholder farmers
  2. Improved bargaining power leading to improved profitability
  3. Improved quality on commodity transacted in villages and markets
  4. Improved quantity on commodity transacted in villages and markets
  5. Increased savings by smallholder farmers.

Rubirizi and Bushenyi districts are characterized by traditional marketing systems that are predominantly informal with high levels of trade and business inefficiencies, poor information flow as well as several chain actors. The marketing systems also have low volumes of market demanded varieties as well as inefficient transport arrangements which often results in high cost of products. In some villages, farm produce does not reach potential markets. The project is harnessing various domestic marketing systems through market driven production and market access of selected value chains. Therefore, improving market and trade systems is paramount in facilitating market access and linkages for the benefit of farmers, traders and other business support service providers.

 

Click here to view the Programme Brief

Category: Interventions
Hits: 104

FCI VISION : Commercialized smallholder communities with increased incomes for improved, stabilized & sustainable livelihoods in Africa and beyond