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Input Supply And Agribusiness Services

Input Supply and Agribusiness Services

BACKGROUND

Uganda’s inputs distribution system is highly fragmented and characterized by weak relationships between importers, distributors, wholesalers of genuine inputs, and their retail networks. As a result, the distribution and sale of counterfeits continue to increase, despite public and private efforts to counteract the practice. Limited awareness and weak demand for quality inputs, coupled with inefficient distribution networks, are the main boosters of counterfeits. The Feed the Future Uganda Inclusive Agricultural Markets(FtF IAM) Activity visualizes a competitive agricultural input market in which agro-input suppliers, including input companies, agribusiness service providers, cooperatives, and agents target underserved customers with high-quality non counterfeited products, increasing investment in agro-input distribution models and other agricultural services. The Activity works with government institutions like the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) to realign incentive structures by encouraging the private sector to increase self-policing efforts and embrace innovations and vital knowledge to solve the counterfeit problem.

OBJECTIVES

  • Build consumer awareness and improve the Government of Uganda’s capacity to monitor and enforce rules and regulations against counterfeits.
  • Facilitate Agri input distributors to invest in agent-based last-mile distribution models with embedded services like demonstration gardens including e-extension and one-on-one extension services.
  • Seed companies to invest in multiplication and marketing of QDS
  • Scale supply of mechanization services to improve equipment management, cash flow analysis, and distribution models by Member Based Organisations (MBOs) and private service providers.

APPROACH

Under this intervention, FtF IAM incentivizes input distributors, their suppliers, and agribusiness service providers to improve distribution and retail channels that reach last-mile farmers who require embedded services like extension, payment, financing, information, logistics, and business support, along with the technologies: seeds, fertilizer, crop protection products and spray services, irrigation, mechanization equipment and services, animal health, etc. The Activity also aims to increase farmers’ awareness and knowledge of how and why to adopt new technologies.

EXPECTED RESULTS

Results under this intervention are measured by the following:

  • Reduced threats of counterfeits and more farmers holding suppliers of counterfeit accountable
  • More farmers adopting new technologies and investing more in quality inputs for increased production, productivity, and household income
  • More agri-input distributors and agro retailers adopting commercially viable last-mile distribution models with embedded services for increased sales and profitability.
  • More seed companies investing in the multiplication and marketing of QDS.
  • More farmers use mechanization services to increase production and productivity
  • Improved equipment management, cash flow analysis, and distribution models by MBOs and private service providers.
  • Service providers supply more Farm Mechanization services for increased sales and profitability
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