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Input Supply And Agribusiness Services Spotlight Of The Week- INCREASING THE VOLUME OF AGRO-INPUTS SOLD THROUGH LAST-MILE DISTRIBUTION MODELS

Input Supply and Agribusiness Services Spotlight of the Week- INCREASING THE VOLUME OF AGRO-INPUTS SOLD THROUGH LAST-MILE DISTRIBUTION MODELS

Feed the Future Uganda Inclusive Agricultural Markets (FtF IAM) Activity is collaborating with agri input distributors to increase the volume of agro-inputs sold through last-mile distribution models, such as the “Hub Model” that the Grainpulse Limited is co-investing in, in Western and Northern Uganda. This week Grainpulse reported total sales of UGX 356,527,200 (est. $96,359) for fertilizer and agro-inputs for April and May through four (4) newly established and upgraded hubs in Gulu, Kamwenge, Mbarara, and Ibanda. These sales were enabled through a network of 20 recruited local agro-input dealers.  June and July are harvest time, and in preparation for purchasing maize cobs, Grainpulse is now conducting training for 96 village agents and farmers in postharvest handling practices to improve the quality of maize that the company purchases from the farmers. Grainpulse is one of four companies adapting and expanding input agent models, with Season A 2022 being the first season under FtF IAM partnerships. These sales are a positive indication that the model is beginning to show sales results in new geographic locations.

Kotido Central Vet Care (KCVC), a veterinary inputs company based in Kotido district that is collaborating with FTF IAM to scale last-mile distribution of quality veterinary inputs to 15,000 smallholder farmers in the Karamoja sub-region, negotiated a 10% discount for wholesale procurement of veterinary products worth 11.2 million UGX from Vet Centre Ltd and Triplex Uganda Ltd, who are two KCVC suppliers. The 10% discount offered by the suppliers will enable KCVC to reduce the product prices for smallholder farmers, which have a 25% retail markup on the wholesale price to compensate KCVC and the commissions to be earned through the supply chain for wholesalers (7.5%) and community Animal Health Workers (7.5%) from sales to the smallholder farmers.

Oasis Agribusiness a partner engaged in the last-mile distribution of inputs in Lango and Karamoja sub-regions had continued to scale and adapt its input supply business model this week. It held an engagement meeting between DFCU bank staff and three farmer groups to discuss an approach and terms of linking farmers to agricultural credit. Oasis interested the bank to invest in inputs and provide farmers with input credit that will be paid after harvesting and marketing their products. Oasis plans to reach 15 groups of about 450 farmers with an agro-input credit from DFCU bank. Ninety farmers (90) from three groups have been approved to get that credit so far. Oasis also opened a new input outlet and stocked inputs of UGX 8,000,000 (Est USD 2,162) in Orwamuge trading center in Abim district. This was done to increase last mile distribution of quality inputs in that community for increased productivity of farmers.

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