Improving Agricultural Market Performance:
Creation and Development of Market Institutions
114
and commercial ranches in Uganda’s south. The lion’s share of Uganda’s agricultural
production activities are manually done (e.g. cattle-driven ox ploughs) and mechanization is
only developing sporadically.
High costs, limited availability, inadequate, and unequal access to finance and insurance
continues to constrain small-scale farmers to invest in their assets, upgrade their production
capacities, and support them in periods of extreme weather (e.g. droughts or heavy rainfall)
leading to crop failures.224 Some credit is available but interest rates range from 10 to 20%.225
Agricultural institutional financing226 is a critical component missing in Uganda’s agricultural
sector, considerably undermining the efficiency and performance of its market system.
Finally, more adequate facilities are required to facilitate more efficient production, especially
for small-scale subsistence farming.227 For instance, hatcheries are needed to support fisheries
and the aquaculture industry228 while water pumps,229 irrigation, contract farming, and out-
grower schemes,230 veterinary services and care, farming-related inputs, machinery, and
equipment (e.g. hybrid seeds, animal feeds, livestock genetics, pesticides, and fertilizers)231
need to become more available for Uganda’s small-scale farmers – particularly in the rural
areas - at lower costs. For example, seeds have to be imported from Kenya, making their
supply unreliable and expensive.232
Table 4 – Uganda (UGA)/World agricultural production and exports, selected commodities
2016 Production (‘000 MT) 2016 Exports (‘000 MT) Imports
(‘000 MT)
UGA World UGA % UGA World UGA %
Sorghum 320 62,640 1% 83 8,709 1% 9.3
Soybeans 30 351,780 0% 10.6 145,170 0%
Bananas** 587 114,130 1% 2.8 21,876 0%
Millet** 237 28,385 1% / / /
Coffee* 3700 159,312 2% 3600 130,326 3% 0
Cassava** 2812 268,278 1% / / /
Maize 1680 1,068,790 0% 225 148,475 0% 1.5
Wheat** 22 729,012 0% 0.4 184,341 0% 562
Beef &
veal***
162.7 61,583 0% 0.131 9,641 0% 0.034
224 New Agriculturist (2012), Country profile – Uganda, available a
Accessed May 2017].
225 Women in Europe for a Common Future (2014), Empower Women – Benefit for All: Report
Baseline and Training Needs Assessment – Agriculture for Uganda, pp. 15-20, Utrecht: WEFC.
226 Export.gov (2016), Uganda - Agriculture, available a Accessed
May 2017].
227 New Agriculturist (2012), Country profile – Uganda, available a
Accessed May 2017].
228 Government of Uganda (2017), Agriculture, available a Accessed May
2017].
229 Women in Europe for a Common Future (2014), Empower Women – Benefit for All: Report
Baseline and Training Needs Assessment – Agriculture for Uganda, pp. 15-20, Utrecht: WEFC.
230 Government of Uganda (2015), Second National Development Plan (NDPII) 2015/16 – 2019/20, available at
[Accessed May 2017].
231 Export.gov (2016), Uganda - Agriculture, available a Accessed
May 2017].
232 Women in Europe for a Common Future (2014), Empower Women – Benefit for All: Report
Baseline and Training Needs Assessment – Agriculture for Uganda, pp. 15-20, Utrecht: WEFC.