PSFU Launches Nationwide Study Findings on Contract Farming in Uganda
PSFU Launches Nationwide Study Findings on Contract Farming in Uganda
Kampala, Uganda – Thursday, 21st August
The Private Sector Foundation Uganda (PSFU), in partnership with the AGRA, on Thursday, August 21st, launched comprehensive nationwide study findings on Contract Farming in Uganda, at Protea Skyz Hotel, Naguru.
The study, under the theme: Formalizing Agricultural Markets for Inclusive Growth, aimed at advancing the Contract Farming Bill 2023, provides evidence-based recommendations to formalize agricultural markets and improve the livelihoods of smallholder farmers.
The Chief Guest, Dr. Paul Mwambu, Commissioner of Crop Inspection and Certification at the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), underscored the urgent need for reforms. He noted that “Over 68% of farmers receive no credit or input support from buyers. Where input and grade linkages are absent, smallholder farmers struggle to meet quality and quantity requirements, limiting the potential of contract arrangements. This study will go a long way in offering solutions to such challenges, hence increasing productivity among Ugandan farmers.”
The CEO of PSFU, Stephen Asiimwe, applauded the Foundation’s policy team for undertaking a nationwide study to professionalize and streamline contract farming in Uganda.
“This research provides the groundwork for fairer and more structured agricultural market systems that protect farmers while enhancing their income, and subsequently increasing their purchasing power and improving the economy,” Asiimwe said.
Adding to this, Dr. Julius Byaruhanga, Director of Policy and Business Development at PSFU, emphasized PSFU’s commitment to policy advocacy: “This study is a critical step towards enacting the Contract Farming Bill 2023.”
He added that: “Contract Farming in Uganda is meant to protect farmers, aggregators, and processors in a way that will avoid bottlenecks of having farmers or off-takers breaching the contracts they enter into of the lack of a protective law. This is the reason why we did a nationwide study, to understand what the business practice around contract farming is,”
The launch and dialogue brought together key stakeholders from across the agricultural sector, including representatives from government, Parliament, farmer groups, agribusinesses, and development partners.
The discussions focused on the findings of the study, the Contract Farming Bill 2023, and building consensus on the next steps towards a coordinated legal and policy framework for Uganda’s agricultural transformation.
Below is the detailed report for the Contract Farming Study conducted by PSFU, for further review