Improving Agricultural Market Performance:
Creation and Development of Market Institutions
115
2016 Production (‘000 MT) 2016 Exports (‘000 MT) Imports
(‘000 MT)
Pork*** 96.8 110,727 0% 0.012 11,563 0% 0.056
Poultry*** 67.5 89,470 0% 0.151 15,187 0% 0.151
Peanut 300 42,890 1% 1.5 2,302 0%
Seed
Cotton**
76 79,069
0%
/ /
/
Tea** 61.4 5,561 1% 56 1,845 3%
Tobacco** 31.7 7,176.7 0% 24.9 2,275 1%
Fish
(aquaculture)
117.6 73,800
0%
18.3 43,000
0%
* ‘000 60kg bags
** production for 2014
*** production for 2015
Source: USDA Foreign Agricultural Service (2017), International Trade Center (2017), FAO (2017)
Handling and Storage
The combination of limited storage facilities, poor post-harvest handling techniques, and high
electricity costs have reduced the potential for local value-added activities.233 In fact, it is
estimated 20 to 30% of the value of agricultural produces is lost due to absent or inadequate
handling and storage infrastructure.234 Post-harvest handling activities are challenged due to
inadequate or absent storage and bulking facilities. For example, the lack of cold storage
facilities has led to the waste of farmers’ milk production.235 Most urgent are storage facilities
for grain, milk, and coffee, while abattoirs in different parts of the country need to be
developed for the livestock sector.236 Storage facilities for crops, livestock, and fish products
should be developed to facilitate more efficient bulk cleaning, grading, and storing for small-
scale farmers and farmers associations.237
The absence of storage facilities also affects supply and demand and market prices and,
ultimately, profit margins for farmers.238 Price fluctuations are strong given the high supply
during the harvest season. Famers can’t store their produce and wait for periods with lower
supplies and, hence, higher prices for their agricultural products. This leads to an imbalanced
agricultural market.
Processing and Packaging
The proportion of processed agricultural products and commodities is currently lest than
5%.239 One of the spearheads of the Government of Uganda has been to attract FDI in the agro-
233 Government of Uganda (2015), Second National Development Plan (NDPII) 2015/16 – 2019/20, available at
[Accessed May 2017].
234 Interview conducted with Ministry of Agriculture, Animal Industry, and Fisheries in Kampala, June 7, 2017
235 Export.gov (2016), Uganda - Agriculture, available a Accessed
May 2017].
236 Government of Uganda (2017), Agriculture, available a Accessed May
2017].
237 Government of Uganda (2015), Second National Development Plan (NDPII) 2015/16 – 2019/20, available at
[Accessed May 2017].
238 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.
239 WTO (2012), Trade Policy Review: East African Community, Geneva: World Trade Organization: Geneva.