A visit to a certified warehouse in Jinja, Uganda

WFP/Laura Melo

Panel members had a lively discussion with the manager and one of the owners at the Agroways certified warehouse in Jinja.  P4P supports this system by buying through the warehouse and by training farmers on proper post-harvest management to ensure good quality. By David Tschirley, Market specialist and Professor, International Development at Michigan State University.

Panel members had a lively discussion with the manager and one of the owners at the Agroways certified warehouse in Jinja.  P4P supports this system by buying through the warehouse and by training farmers on proper post-harvest management to ensure good quality. We learned that the volume moving through the warehouse has increased dramatically over the past three years, from less than 1,000 tons three years ago to over 3,000 tons during the first six months of 2010. Importantly, most of this volume was of grade 1 maize, and most was purchased by private buyers, not by WFP.  So farmers are learning the importance of good post-harvest practices and private buyers are becoming convinced that the system offers real advantages in terms of security of contract and quality guarantees.  Banks have been attracted by the electronic receipt, which provides them greater security, and so have begun making loans to farmers with the receipt as collateral.  By using its buying power to support this institution, WFP is promoting the long-term development of Uganda’s agricultural sector, with long-lasting positive effects for farmers, traders, processors, and consumers.