Background

The goal of producer organizations (PO) is to group farmers together under the auspices of a business approach to farming. By working in POs, farmers are able to achieve increased access to new crop production technologies, higher yields, better access to local and regional markets and improved access to inputs and rural credit.  There are several challenges facing the establishment of the PO system in Uganda which include:

• Lack of the organizational, planning, and managerial skills required to manage large input supply and bulk marketing activities.

• Lack of access to credit

• Lack of a commercial orientation

• Lack of access to markets

APEP Interventions

So that viable PO groups can be established in Uganda, APEP has trained 20 individuals as Producer Organization Trainers (POT). POTs, in conjunction with the PO director and PO specialist, have formed 291 POs focused on cotton, coffee, maize, sunflower, sesame, barley, rice and matooke bananas.  he POs have received training in bulk marketing and bulk input supply training, which includes managing budgets, record keeping of crops marketed and inputs supplied, establishing marketing plans and crop quality control and transport.

Another step involves the regrouping of POs into depot committees (DC). The principal role of the DC is to increase the volume of crop being consolidated at a central pick up point. For each zone, participating POs have one representative for each crops respective DC. These representatives are responsible for coordinating all bulk marketing and input supply activities. Each DC also hires a third party depot manager to control the volume and quality of the crop arriving at the depot center before it is sent to the buyer. Depot managers are trained by APEP in input storage and distribution.

In addition to improved agronomic practices and organizational management trainings, POs have benefited from trainings to help access rural credit and financial management.  As of September 2004, APEP POs have achieved a great amount of success in bulk inputting with savings totaling $7,500, as well as additional revenues of over $13,000 for bulk marketing activities.