In Rwamwanja Refugee Settlement – Southwest Uganda, smallholder farmers face significant challenges in the maize market, including price fluctuations, limited market access, and exploitation by middlemen. To address these issues, Finn Church Aid (FCA) has implemented several innovative solutions through the Food System Lab Rwamwanja (FSL-RW). FSL-RW is one of the 10 Food System Labs in the EU-funded HealthyFoodAfrica (HFA) research project.
Boosting market stability with a maize milling and value addition facility
One of the key initiatives was the establishment of a maize milling and value addition facility for the Rwamwanja Rural Farmers’ Cooperative (RRFC). This cooperative encompasses 36 producer associations involved in maize production. The facility began by milling maize grains into flour for consumption, offering members a slightly lower milling price to encourage commitment and participation.
From February to May 2024, the cooperative recorded the milling of 25 metric tons of maize grain, primarily for household consumption. To expand its operations and diversify its income, the cooperative now produces maize bran and packages maize flour for retail sale. Additionally, they have secured a contract with a school – Ntenungi Secondary School, which consumes 130 kilograms of maize flour daily.
In three months, the facility produced 7.5 tonnes of maize bran, which is returned to farmers to feed small livestock such as chickens and pigs. This has spurred the growth of poultry and pig farming within the community due to the affordable cost of feed.
“The establishment of the mill has not only provided a stable market for maize farmers but also encouraged better post-harvest handling and quality management,” says Frank Tukamuhebwa, an Agriculture Extension Officer at FCA. “Farmers are now more mindful of drying and maintenance practices as they see the economic benefits of producing higher quality grain.”
Comparative Economic Benefits
In the first season of 2024, non-members sold maize grain at 500-650 Uganda Shillings (UGX) per kilogram, while members sold milled maize flour at 1500-2000 UGX per kilogram. After deducting milling and packaging costs, a profit margin of 150-300 UGX per kilogram is achieved. This price differential encourages farmers to maintain high grain quality, as better quality grain fetches higher prices.
Addressing Soil Degradation with Rhizobia Inoculant
In addition to market challenges, soil exhaustion due to over-cultivation and limited access to nutrients is a significant issue for smallholder farmers. The project promotes the use of rhizobia inoculants, an eco-friendly biofertilizer. Rhizobia bacteria form symbiotic relationships with legume roots, improving soil nutrition by fixing atmospheric nitrogen and solubilizing soil nutrients.
“The rhizobia inoculant is a cost-effective and environmentally friendly solution,” Tukamuhebwa explains. “Farmers only need two sachets of inoculant to fertilize an acre of beans at a cost of one dollar, compared to $60 for chemical fertilizers. This not only reduces costs but also minimizes soil and water pollution.”
Establishing Multi-Stakeholder Platforms for Value Chain Governance
To ensure fair market access for maize producers, FSL-RW introduced a multi-stakeholder platform (MSP) for the maize value chain. This platform brings together all actors in the value chain, including processors, middlemen, producers, agro-input dealers, research organizations, financial institutions, and government bodies.
“The MSP has been crucial in creating a transparent and equitable value chain,” says Tukamuhebwa. “It allows for regular discussions and monitoring of innovations and challenges, ensuring a sustainable and rewarding market for all stakeholders,” he adds.
A representative committee, including members from various stakeholders, meets routinely to monitor the progress of the value chain. This collaborative approach fosters a supportive system that bridges core market functions and promotes a sustainable and rewarding environment for smallholder farmers.
The innovative measures implemented by FCA through FSL-RW highlight the importance of value addition, sustainable agricultural practices, and multi-stakeholder collaboration. These initiatives not only address immediate market challenges but also promote long-term growth and sustainability for smallholder farmers. As Tukamuhebwa aptly puts it, “These efforts are transforming the agricultural landscape, providing farmers with the tools and support they need to thrive.”
Text – Linda Kabuzire
Pictures: Timothy Atwine