UDC, NSSF To Form National Marketing Company

Uganda Development Corperation (UDC) which is the investment arm of Government in Partnership with National Social Security Fund (NSSF) will form a National Marketing Company (NaMCo) which will help to improve the agriculture value chain by creating both domestic and foreign market for farmers produce across the Country.

This was revealed by the Executive Director of UDC, Dr Patrick Birungi during the National Development Forum(UDF) 2nd Annual Conference that was recently held at Chobe Safari Lodge located in Nwoya District, Northern Uganda. The high-level forum which is Chaired by General Caleb Akandwanaho (Salim Saleh) attracted heads of key government institutions, politicians, investors, top businessmen, cooperatives among others.

An exclusive interview with UDC boss Dr Birungi at the side-lines of the forum, revealed that the reason why UDC and NSSF will form the National Marketing company is to improve the demand side of agricultureproduce and bridge the gap between small farmers and the market in order to lift farmers livelihood and encourage savings. He adds that the National Marketing company is estimated to cost around shs 127 bn and is expected to begin soon. "UDC and NSSF will contribute49% of the amount which is worth 49% shareholdingand the remaining 51% shares will be owned by private sector" Says Dr Birungi. He further revealed that the NaMCo will start with marketing of grains such as maize and oil seeds and later on deal in other products based on demand.

He further reiterated that the reason for forming NaMCo is to improve farmers livelihood. "Agricultural marketing has been left to market forces leaving farmers exposed to exploitation by middle men," He adds that government realised that farmers have been selling crops which are still growing leading them to earn little or nothing from their investments. "Farmers are facing limited ability and no incentives to invest in productivity, enhancing inputs leading to low production of quality commodities," He says adding that NaMCo will solve this problem.

He adds that farmers continue to face the challenge of price fluctuation where by prices of commodities change every season. For example in 2017, maize prices were at shs 1600 per kg and in 2018 it fell to shs 1500 per kg which made farmers loss millions of shillings. He added that farmers also face a challenge of limited domestic market causing low purchasing power. Dr Birungi further said that some farmers after growing older and are not able to farm end up in extreme poverty.

"After making our full analysis of challenges faced by farmers, the National Market Company will aim at solving the demand side of the value chain," he revealed. He says the National Marketing Company will make sure it contributes to the development of formal and structured markets for agricultural products. "The company will put in place systems for aggregation, processing, storage and marketing of produce locally and internationally," Says UDC boss.

He further assured the Public that National Market Company will ensure stable and fair prices to farmers for their efforts and resources invested in production. "We shall make sure we create mechanism for stabilizing food supply Nationally and Regionally," He says during interview. He also revealed that the National Marketing Company will also negotiate better prices for farmers and will also encourage quality and standards for the entire value change. "Under National Marketing Company, we shall ensure farmers save for their retirement,"

He says adding that even at their old age they do not get poor. Dr Birungi added that the National Marketing company will partner with various agriculture value chain actors in order to leverage their already established facilities such as warehouses and value-addition plants.