Agricultural Market Development Trust (AGMARK)
“Sustainable Smallholder Cross Border Trade Integration (SSMATI)”
Organized and structured marketing arrangements not only catalyze agricultural production but also sustain it. Lack of organized marketing of cereal food crops (rice, maize and sorghum) remains a major constraint to production in the surplus producing regions of southern and eastern Uganda where an estimated 71% of trade between Uganda and its neighbors is informal.
Kigezi Region in southern Uganda is a significant supplier (though informally) of grain to processors in Kigali- Rwanda. The main grain processors like MINIMEX could only utilize 32% of its plant capacity (52,000 tons per year) in 2008 and imported 88% of its processing grain needs (from Uganda and Tanzania). MINIMEX is distraught despite having a market for its processed products. The same challenge faces other processors including The DUHAMIC-ADRI Association, The MAISERIE de Mukamira, and the Rwanda Development Investment company.
Eastern Uganda accounts for an estimated 50% of Uganda annual maize output. Located juxtaposition to Kenya (a chronic maize deficit country), Eastern Uganda maize production has its dominant market in Kenya where it crosses the Busia border informally.
The EA Trade Hub grant to AGMARK is intended to integrate smallholder surplus production in Kigezi and the Eastern Regions of Uganda into the Rwanda and Kenya cereals value chain respectively, through agro-dealers located in the two regions. The objectives of this grant are to develop sustainable value chains and reduce poverty by increasing small holder farmers access to commercial staple foods markets.
"Agrodealer Trade Across Borders Project (ATAB)"
The objective of the 2nd AGMARK grant is to support agrodealers by linking them to grain traders involved in cross border trade along the Uganda – Kenya, Uganda – Sudan, Uganda-Rwanda and Tanzania – Kenya borders. This will not only increase regional trade but also improve accessibility by small holder farmers to mainstream formal grain markets as they channel their grain through agrodealers.
Countries: Kenya, Uganda, Rwanda, S.Sudan
1st Grant Timeline: January 11, 2010 to January 10, 2011
Total Amount: $249,304
2nd Grant Timeline: March 1, 2012 to December 31, 2012
Total Amount: $212,780