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Value Addition and Quality Food Trade

BACKGROUND

As Uganda’s farms invest in expanding the production of raw materials, its agro-processing sectors that aggregate and add value are underperforming and not supporting the growth sufficiently. Grains and several value-added products such as flour traded in local markets do not meet the minimum quality standards posing health risks to consumers. This affects access to higher-value markets, profitability, and growth of the sector. The Feed the Future Uganda Inclusive Agricultural Markets (FtF IAM) Activity envisions a food sector where growth is driven by value addition based on constant upgrading to serve higher value markets. Under this intervention, FtF IAM leverages the MDF to improve relationships and firm-level upgrading to support market actors to produce the quality of products needed to meet end-market demand. The activity has a vision of improving relationships between all market actors that incentivize traders, processors, aggregators, and farmers to upgrade the quality of products needed to meet end-market demand.

OBJECTIVES

  1. To increase investment in and sales of processed food products to premium markets
  2. To build capacity of processors producing quality, certified products to meet premium markets.
  3. Processors improve farmer productivity and quality management.
  4. Strengthen relationship between UNBS, private accredited testing and certification services providers and processors.
  5. To Co-invest with processors upgrading to reach new markets.

 

APPROACH

FtF IAM builds capacity of agro-processors and grain traders to upgrade technologies and practices to meet local and international standards. The Activity also partners with private and public agencies, such as the UNBS to support transparent, and accessible services that enable grain and food processors to achieve standards.

 

EXPECTED RESULTS

Results under this intervention are measured by the Number of:

  • Aggregators/MBOs investing in and adopting business advisory services.
  • Aggregators engaging farmer suppliers successfully and earn increased revenues through forward purchase agreements.
  • Processors negotiating and signing MOUs/contracts with aggregators/farmers
  • Buyers scaling and deepening offers to farmers with inclusion of other services like financial services, transport, insurance, and input companies offering private extension
  • More buyers signing MOUs with input dealers to provide inputs to farmers/aggregators based on pre-season forward purchasing agreements.
  • Buyers scaling forward purchasing as they deliver higher quality and are more competitive in their end markets i.e. developing and benefiting economies of scale.
  • Service providers developing and testing new commercially viable products on the companies
  • Processors adopting GMP and GHP to achieve certification/sales results
  • Service providers expanding sales promotions (Ex. audit) and developing affordable service and mainstreams that service into their service model.
  • Private laboratory service providers deepening their services to underserved areas
  • Consumers demanding for safe, quality and more nutritious products due to the intense awareness campaigns.
  • Processors investing and practices adopting GMP and GHP at facility and supply chain levels.
  • More processors achieving certification and sales goals while successfully demonstrating value to other processors and new consumers.
  • Processors improve branding and packaging to suit market demand and standards.
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