Sugarcane Cooperatives Will Save Farmers

MASINDI – On his inauguration day, May 20, Cosmas Byaruhanga promised to use his second term as Masindi District LCV chairperson to get farmers in all sectors in the western district organized into cooperatives, especially sugarcane cooperatives.

“We are going to mobilize farmers to organize themselves into cooperatives because when they are in cooperatives they will be understanding each other. This will also help them have a bargaining ground to demand what is due to them,” said Byaruhanga, who said is serving his last term as LC-V chairman.

He was sworn into office together with all elected district leaders by Masindi Chief Magistrate, Johnson Ssejjemba at the district headquarters.

Byaruhanga also said he wants to ensure that sugarcane farmers are organized into cooperatives.

“Sugarcane is the backbone of Masindi. It pumps more than Shs 3 billion in the district in a year. All the developments you are seeing in Masindi are because of sugarcane,” Byaruhanga explained.

In all, 38 councilors were sworn in from 18 sub counties and town councils, which form Masindi District.

https://thecooperator.news/form-cooperatives-with-a-purpose-masindi-lc-v/

The function was also attended by the newly elected members of parliament; Kenneth Kiiza Nyendwoha for Bujenje Constituency, Ronald Akugizibwe Aled, for Buruli County and Joab Businge, for Masindi Municipality.

They all promised to work with the LC-V to develop the district.

Background

Earlier this year, Byaruhanga pushed for the revival of all sugarcane cooperatives formed by sugarcane farmers in the 1970s.

“Sugarcane cooperatives are so necessary. They would help sugarcane farmers during times of crisis. These sugarcane cooperatives existed and we are now going to trace their registration numbers. I know they are there with the registrar of cooperatives,” said Byaruhanga, who is also the chairperson of Masindi District Sugarcane Farmers Association Limited (MASGAL). He was speaking then during an extra ordinary meeting for Bwijanga Coffee Farmers Cooperative in Bwijanga Sub County.

Byaruhanga explained that they need to revive sugarcane cooperatives so that they can form a union, which will give them a firm bargaining ground to lobby for their own sugar factory.

“If we want to get our own sugar factory, that’s the only way to go. Let’s unite into cooperatives if we are to address our challenges,” he noted.

He added that sugarcane farmers are grappling with many challenges such as over grown cane, spillage, low prices and too much cane.

“These challenges can be addressed when we have got our own sugar factory. We have a lot of cane which can feed it.

According to the statistics from MASGAL, there are over 7000 sugarcane out growers in Masindi district producing around 1.2 million tons of sugarcane.

Byaruhanga is optimistic that with this number they can get a sugar factory and sustain it.

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SACCO Demands Leadership Audit

SHEEMA – Members of Kitagata Savings and Credit Co-Operative Society have signed a petition urging the Chief Executive Officer of Uganda Microfinance Regulatory Authority, UMRA, to audit the SSACCO leadership.

In their letter dated April 14 2021, SACCO members demanded a leadership audit into what they called “inflated and fraudulent financial reports presented during their annual general meeting (AGM), insider money lending to relatives and sharing of SACCO funds amongst the management, which contravenes section 95(a) of the Sacco by-laws.”

They also accuse their leaders of misappropriating Shs 2.2million.

The SACCO, formed around 1993-1995, currently has over 4,000 members.

Last weekend, a petition circulated widely showing that Kitagata, once a vibrant SACCO in Sheema District, was struggling and teetering on the brink of collapse.

“In western Uganda, it was Kyamuhunga and Kitagata on top of financial management but if you can check now Kyamuhunga People’s SACCO is now modern. You can even bank using the internet while for us with a membership of over 4,000 we are struggling and on the brink of collapse. I think we need to fight hard to restore our lost glory,” Laban Muhabwe, a retired police officer, said.

Muhabwe, a member of Kitagata SACCO, accused the District Commercial Officer of Sheema of interfering with the SACCO operations.

https://thecooperator.news/mushanga-sacco-celebrates-50-years-of-growth/

“I was appointed as the secretary of the supervisory committee but because I brought out issues, which were pertinent, Allan expelled me from the committee. But is it the work of the commercial officer to expel any members from the SACCO committee?” Muhabwe asked.

Muhabwe said the commercial officer also used his powers to remove him from the supervisory committee and appointed a new vetting committee usurping all the powers of the SACCO management.

“I was also among the candidates vying for the chairmanship seat, so why didn’t they leave the vetting committee to do its work without interference? Muhabwe asked.

He also alleges that the district commercial officer has been colluding with the manager to swindle SACCO funds.

“I am corrupt free and I won’t allow them to take our money again. That’s why he appointed a new vetting committee when we still had a serving committee? You can see how his actions stifle the performance of Kitagata SACCO,” Muhabwe emphasized

Muhabwe, who served as chairman of Exodus SACCO between 2012-2014, said he is ready to turnaround the fortunes of Kitagata SACCO.

“I moved Exodus SACCO from Shs 1.8billion to Shs 7-8 billion within two years then I retired in 2015. So why do you deny me a chance to take on the leadership of Kitagata SACCO where I am a fully-fledged member with over two million shares?” he asked.

Alfred Nuwamanya, another member, said most of the sticking issues would have been addressed during the last AGM but it ended prematurely after the commercial officer suspended elections of the new board committee.

Edith Tusuubira, the Executive Director of Uganda Micro Finance Regulatory Authority, confirmed receiving the SACCO’s petition for a leadership audit.

Frank Besigye Kyerere, the Resident District Commissioner (RDC) of Sheema, said he had not received a copy of the petition nor word from UMRA.

He warned however, that misappropriating members’ savings can lead to arrest and prosecution of the errant SACCO managers.

“I haven’t gotten any copy but I just say it’s unfortunate. You see a SACCO is a body corporate if you are a leader of a SACCO and you embezzle funds you should be charged,” he said.

Karakure Buhanda Allan, the District Commercial Officer of Sheema blamed the Kitagata saga on Muhabwe.

“There is no way you can call a general meeting of over 10,000 members yet members hold their pre-AGMs in their respective villages,” Allan said.

He said Kitagata SACCO is now recovering from the entrenched losses it suffered under the old management.

“From 2005 they had a dormant board, which was led by Rev Bashoborwa. The then manager had taken control of the institution and was fraudulent. And to me for the last four years Kitagata has been on a recovery course.” he said.

He said the former manager was also charged with embezzlement after causing financial loss of over Shs 180 million.

Allan confirmed that the SACCO board had expired in 2019 but the outbreak of Covid-19 never allowed Kitagata to hold any AGM.

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SACCOs Tipped On Playbook For Success

KWANIA – Cooperatives should follow a basic playbook for success which has a blend of good financial character and good governance, Patrick Bura, the District Principal Commercial Officer of Kwania, has said.

Bura offered the management tip while officiating at the recent Annual General Meeting (AGM) of Ikwera Co-operative Savings and Credit Society Ltd at Aduku town council in the northern district of Kwania.

The AGM was attended by about 900 members from the sub-counties of Abongomola, Nambieso, Chawente, Inomo, Akali, Ayabi, Atongtidi and Aduku.

On the same day, Ikwera SACCO elected a new board to run its affairs for the next four years.

Robert Odur, the former SACCO chairperson retained his job, Acayo Molly Grace is the new vice chairperson, Sister Molly Grace (treasurer), and Opio Nam Joseph (general secretary).

Awor Dilish, Adupa Bilington, Lawrence Etin, Ngu Jasper, and Ocaka Sarafina were elected members of the committee.

SACCO delegates elected

The meeting also elected 22 SACCO delegates representing 11 sub-counties in Kwania district.

“It is the duty of the delegates to formally and informally educate the SACCO members. It is their duty to spread the SACCO gospel to potential members.” Bura said.

A 2019 forensic audit found that Ikwera SACCO had made a loss of Shs 245m after unknown assailants broke into its premises and stole members’ savings. A security guard identified as Bonny Doi was arrested.

https://thecooperator.news/saccos-urged-to-embrace-tech-digital-lending/

“The robbery took place amidst loud sounds of door breaking, safe dismantling and wall digging at night but Doi, the SACCO’s security guard, failed to make an alarm or call police officers at Kwania police station, which is less than 500 meters away,” Felix Oguna, the SACCO manager said, adding, “that prompted his arrest, investigations are ongoing although we have not recovered the money.”

Bura however, urged the new board to ensure good governance, which includes having credible leadership that implements good management practices.

“Given the turbulence it has had before, the SACCO is now on track. But it can only keep on track if the board is not selfish and practices good corporate governance,” he said.

He said a strong foundation for any cooperative starts with leaders who are willing to dedicate their time and resources to developing the SACCO.

“Your SACCO’s philosophy is savings and credit so members must be ready to save and save regularly to be able to access credit, which they must repay in time.” he explained.

George KK Akaca, the Aduku Town Council area councilor, urged prudence in appraising individual loan applications to avoid lending money to defaulters.

“Poor appraisal of loan applicants by loans officers has led to the collapse of many cooperatives,” he warned. He said a proper appraisal should take into consideration the applicant’s assets and carefully record their addresses.

“Otherwise, in no time you will find that they have gone bankrupt, or you cannot trace them, and it would be very hard for the SACCO to recover its money,” he said.

Growing SACCO

According to Ikwera SACCO’s General Manager, Felix Oguna, the SACCO, which was started in 2010, currently has 1,129 members.

The SACCO’s loan portfolio shot from Shs 540m to Shs 762m last year. It projects to have saved at least Shs 900m by the end of 2021.

“The SACCO has a number of challenges which include poor loan recovery, delay in loan payment, limited loan fund and high cost security provision among others, but now that we have the delegates in place, slowly the problems will come to an end,” Oguna said.

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Struggling SACCO Appeals For Bailout

HOIMA – A struggling Teachers’ Saving and Credit Co-operative Society (SACCO) in Hoima Oil City is appealing for a government financial bailout – with good reason.

The 175 member Hoima Municipality Teachers SACCO which started in 2018 offers cheap loans of at least 8% interest rate to only government teachers.

There are about 500 government teachers in Hoima city.

Moses Ayebale, the SACCO chairman, said the SACCO is struggling to grow because it lacks funds.

https://thecooperator.news/hoima-elders-stuck-with-two-year-old-sacco/

He said the SACCO was fully registered in February 2019 and has saved over Shs 10 million but the teachers’ demands for loans outstrip its savings.

Ayebale said the high office rent, payment of staff, lack of furniture and other office equipment such as computers are crippling the SACCO.

“We had employed a full time manager but because of inadequate funds to pay him we agreed that he should work three days a week,” Ayabale said.

He said the government should invest in the struggling SACCO to help teachers turnaround their livelihoods and avoid expensive bank loans. He also urged the government to get experts to train them in skills and knowledge of managing the SACCO.

“If the government injects money in our SACCO, we shall be able to meet the teachers’ high demand for loans. And again, there is no harm if the government can provide us with experts to monitor this SACCO. If they can convene a meeting, train us and provide us with tools, it will help us manage our SACCO because we teachers, are not trained in financial management,” he said.

Ayebale said they managed to lobby for Shs 65 million from the government salary loans kitty of Shs 25 billion injected in Walimu Sacco. He said 12 teachers out of the 30 corded within Hoima city have already benefited from the funds.

“To be corded, one must be an active member of the SACCO and on the government payroll. The recovery of the Shs 65 million is good because it only benefits corded teachers. The teachers benefiting from Walimu SACCO salary loans pay 15% interest and 7% of the 15% is given to our SACCO.” he said.

He added that the SACCO expects to get another Shs 200 million from Walimu once the borrowed Shs 65 million is recovered.

Johnson Kusiima Baigana, the Hoima City Principal Education Officer, said the SACCO will save teachers from acquiring high interest loans from banks, which pile pressure on them.

“You find a teacher having loans in more than one bank with high interest rates. When they fail to pay, banks start harassing and chasing them around like thieves. This affects their concentration in class because they are looking out of the window to see who comes into the school. They are ready to take off,” he said.

“The government has a hand in this Teachers’ SACCO because its the government through our president, that encouraged teachers to form SACCOs and even injected billions of shillings in Walimu SACCO to save them from borrowing from banks.” he said, adding that, “We thought our SACCO was going to get soft loans for teachers but we found some challenges at the national level, they have not kept their promises because money is not flowing as we expected.”

“We are going to engage Walimu SACCO managers to find out what went wrong because teachers apply for the money and they get no response.” he said.

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Fuel Theft Derails Oil Roads Construction

KIKUUBE – A steep rise in the theft of cement and hundreds of litres of fuel from Chinese road contractor; China Railway Seventh Group (CRSG) threatens to derail completion of the on-going construction of the Shs 500 billion ,97 kilometer, oil roads project in the Albertine Graben region.

In 2018, the government contracted China Railway Seventh Group (CRSG) to tarmac the 25 kilometer Hohwa-Nyairongo-Kyarushesha-Butole Road, Kabaale-Kizirabfumbi road (25kms) and the 47 kilometer Masindi-Biiso road.

Overwhelmed by the persistent fuel thefts, an CRSG official recently petitioned Kikuube Resident District Commissioner Amlan Tumusime to intervene and stop the escalating vice.

Ambrose Atwine, the company spokesperson, said CRSG is overwhelmed by the problem.

According to information from CRSG, the company loses about 4,500 litres of fuel worth over Shs 162 million to fuel thieves per month, which translates to over Shs 1.3 billion every year.

Charles Muhangi, a maize farmer and cattle keeper in Kyarushesha village in Kyangwali sub-county, said security must intervene and stop the fuel theft.

https://thecooperator.news/market-vendors-tipped-on-sacco-formation/

“We farmers have suffered with poor roads for a long time. It has been very difficult to transport our produce from here to the markets, so when we hear someone sabotaging the construction of these roads, we get concerned because they mean a lot to us,” he said.

RDC Amlan Tumusime said stealing road construction materials was becoming a serious challenge to government projects.

He said government officials including police officers were involved in the theft.

Tumusime said they are investigating several police officers implicated in the theft.

“Several police officers who have been singled will soon have tough measures taken against them and they have started recording statements” he said, adding that the suspected officers have been conniving with truck drivers to siphon fuel from CRSG trucks and sell it in jerrycans.

Fuel thieves connive with company truck drivers to siphon fuel from trucks. The stolen fuel is sold in Hoima, Masindi and Kampala.

Tumusime said spy networks have helped pin down the suspects.

Speaking to theCooperator last Monday, Tumusime said over 10 thugs were arrested, produced in courts of law, charged and remanded last month.

He said the district has managed to impound two vehicles used by thieves to transport the stolen fuel last month and this month.

Vehicle registration number UAD 189K Toyota Corona and Premio registration number UAS 609N were impounded in an impromptu security operation.

The culprits allegedly fled and abandoned the vehicles when security stormed. The vehicles are currently parked at Kikuube central police station.

He said over 10 jerrycans of siphoned fuel, 10 drums and a pipe used to siphon the fuel were also impounded during the operation.

“We first sensitized the community and educated them that these projects benefit them and not the Chinese. I am very happy that the community was empowered and whenever they see anybody stealing fuel, they call us and this has helped us to curb this challenge,” he said.

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Masindi Demands New Modern Market

MASINDI – A heave of frustration and anger is boiling over in Masindi Municipality as vendors lash out at the delayed construction of a new modern market under the Markets and Agriculture Trade Improvement Project (MATIP).

All the riled vendors are allied to Masindi Central SACCO and Masindi Central Market Vendors Association.

David Asiimwe, the chairman of Masindi Central Vendors’ Association, said all requirements were met yet the project is not taking off.

“We have enough land measuring five acres and it’s free from encumbrances. We also want to operate in a good market. Masindi is one of the traditional districts but we are wondering why it has never benefited from this project yet other traditional districts have benefited,” he said.

Asiimwe said the market is in a sorry state.

“We operate in darkness because lights are not enough. We also have a problem of thieves who steal vendors’ items. All the gates are dilapidated, thieves easily break in and steal vendors’ properties,” Asiimwe said.

There’s only one security guard yet the market has five gates, he said.

Asiimwe said too many vendors are jostling for the small, crowded space in the market.

“This can be addressed when a modern market is built. Right now the congestion is uncontrollable. That is why we are calling upon government to expedite the process (of building a modern market). This market was not well planned, that’s why we cannot all fit in here,” he said.

According to Asiimwe, the market has over 2,000 vendors; food handlers, old clothes sellers and fish mongers.

Kenneth Bitaroho, a fish monger, said he is disappointed to see Masindi District lagging behind on development yet other districts have become cities.

“Our leaders promised that the project would commence this financial year but we are seeing the year ending without any development. They keep saying next financial year but nothing happens. If other districts have gotten modern markets, why not Masindi?” Bitaroho asked.

Lamura Kabasindi, a vendor in Masindi Central Market, said when it rains, customers avoid the market.

“Whenever it rains, the market becomes muddy and sometimes it floods. How can a customer come to such a market?” she said.

James Masaba, the chairperson of Masindi Central Market, said SACCO officials who run the market are ashamed to collect dues from vendors working in such a bad situation.

He said vendors run the risk of contracting diseases like diarrhea, dysentery and cholera due to poor hygiene and poor garbage disposal.

“We only have one stance latrine to cater for over 2,000 vendors. This latrine is not enough for the whole population. But all these challenges can be addressed when we get a modern market,” he said.

According to district elders, Masindi Central Market started with makeshift structures in the 1920s. It was later taken over by government in the 1970s.

https://thecooperator.news/masindi-central-market-vendors-revive-sacco-after-5-year-break/

“The first people who embraced it were the Nubians who would sell pancakes and rolled simsim,” Abiasali Kasingwa, 88, said.

On March 23 2020, the Permanent Secretary Ministry of Local Government Ben Kumamanya wrote to the Town Clerk Masindi Municipality, saying; “Masindi Central Market in Masindi municipality has been considered for re-development and as part of the prerequisite for executing the program, you are required to submit the following; a copy of the land title where the market is located, a copy of the register of vendors and a copy of the management structure.”

According to the letter, Masindi Municipal Council authorities were supposed to send the documents not later than April 17th 2020.

Kumumanya promised that the market would be constructed during the 2020/2021 financial year under the Markets and Agricultural Trade Improvement Project (MATIP).

The ministry letter raised lots of hope among vendors only to be dampened later.

Haruna Ismail Irumba, the councilor representing the Civic Ward in the municipality, blames Masindi mayor, the town clerk and the area member of parliament for not following up the matter aggressively.

“We were told that they needed a land title for the project to begin. We secured it two years back but nothing is taking off. I think the delay can be blamed on the laxity of our leaders here because everything required was done long time ago,” Irumba explained.

Interviewed for a comment, Deo Kabugo, the town clerk Masindi Municipality, told theCooperator that he went to the ministry two weeks ago.

“I was told they had advertised for a consultant to do the architectural design. All the required documents were sent. The people of Masindi should be rest assured that they will get the market since it’s already in the process,” he said.

The new mayor for Masindi Municipality Ronald Kyomuhendo Busingye said his team met the Minister of Finance Matia Kasaija who assured them the market will be rebuilt.

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Microfinance Institutions In Trouble In Kwania

KWANIA –In Kwania and Apac Northern districts Savings and Credit Co-operative Societies (SACCOs) have become the preferred go-to lenders threatening to lock out microfinance institutions.

The SACCOs are drawing in huge numbers of civil servants who ordinarily are clients of microfinance institutions.

SACCO leaders in the two districts have agreed to bolster the inter-SACCO lending market by lending and borrowing money from each other – thereby locking out microfinance institutions whose loans are considered ‘expensive.’

Under the new arrangement, 11-SACCOs in the two districts will run their own inter-SACCO market. They will be able to lend and borrow from each other at reasonable interest rates to offset their dire financial positions.

Their proposed working arrangement has been forwarded to the Ministry of Trade, Industry and Cooperatives for legal advice.

Robert Odur, the Chairman Board of Directors of Ikwera SACCO in Kwania district, said the latest move is bound to put an end to the exploitative commercial relationship between civil servants and microfinance institutions, which is costly to many borrowers.

According to Odur, many civil servants are shunning the expensive microfinance loans.

“We want to create a forum through which SACCOs can interact. For example, if SACCO ‘A’ has a cash flow problem it should be able to access funding from SACCO ‘B’. It just allows SACCOs to team up and develop their capacity to serve their members. The current situation is that if your SACCO runs short of money the only place you can go to is the nearby SACCO to save civil servants from microfinance lending institutions,” Odur said in a recent interview.

Bazil Odongo, a livestock dealer and resident of Ololango Village in Apac district, said he borrowed Shs 25 million in October last year at an 8% interest rate from Acanpekun Credit and Cooperative Society in the district. Odongo said he has serviced the loan well and is making a lot of profit.

“Shs 25 million that I used to borrow from Platinum (microfinance) at an interest rate of 10% could earn me a profit of Shs 5 million, but when I opted to borrow the same amount from the SACCO, I started realizing a profit of Shs 10 million. That is why I am expanding my livestock business,” he said.

William Odoc, a teacher at Acungi primary school in Kwania district, said many teachers are turning to SACCOs.

https://thecooperator.news/budget-kwania-cooperatives-get-shs-89m/

He said microfinance institutions make unnecessary deductions on teachers’ salaries even after loans are repaid.

“It is better to acquire loans from SACCOs, it’s easy to access and repay unlike the microfinance lending institutions that are fond of making unnecessary deductions and chasing after defaulting customers,” he noted.

But Patrick Okullo, the manager Platinum Apac branch, dismissed as false claims that microfinance institutions make unnecessary deductions and chase after debtors. “In the financial year 2018/2020 our loan portfolio was at the tune of Shs 300 million, however, in the financial year 2019/2020 we realized a drop of up to Shs 180m, this is partly attributed to the Covid-19 pandemic. Although to some extent we think the coming up of SACCOs is equally doing us more harm,” he said.

Apac District Local Government currently has a total of six fully registered SACCOs with 1,512 Village Saving Lending Associations, (VSLA) and three Microfinance institutions that include; Brac, Platinum and, Bayport operating in the two districts of Apac and Kwania, with over 15,000 clients.

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SACCO Leaders Shun Management Training

HOIMA – Last week Hoima City and the district leadership scheduled two weeks of training sessions in financial literacy for all SACCO leaders that lack basic money management knowledge but surprisingly they were shunned by many.

Speaking to theCooperator Joy Kabatalya, the Emyooga focal person, said the training sessions were meant to equip SACCO leaders with financial management skills and help them understand the concept of the Presidential Initiative On Job And Wealth Creation (Emyooga).

She said city and district leaders also wanted to equip SACCO leaders with knowledge and skills in SACCO management to ensure sustainability and avoid misappropriation of funds.

According to her, the trainings are conducted at the respective sub county/division headquarters but unfortunately many have shunned the sessions.

She said only 30 out of 72 SACCO leaders turned up.

Kabatalya warned that members who shun financial literacy training will not access funds since the training is a mandatory condition for accessing the funds.

“We were training them as one way of preparing them before accessing this money to understand the do’s and don’ts of this initiative, to avoid what is happening in other districts where SACCPO leaders are embezzling the money but most of the leaders have decided to shun the training,” she said.

She also decried the poor saving culture among SACCO members yet they must save at least 30 percent of the money they apply for to be eligible for the Emyooga loans.

Kabatalya said the condition is forcing some SACCO members to withdraw their membership, which is detrimental to the future of SACCOs.

In the same week Hoima district and city authorities led by Samuel Kisembo Hoima, the Resident City Commissioner, released 62 SACCO certificates out of 72, which were formed from1,460 Emyooga associations.

https://thecooperator.news/anger-in-hoima-as-leaders-cling-on-to-emyooga-cash/

However, after handing over the certificates, the SACCO leaders were told they will not access the money until they get financial literacy empowerment. Hoima district and city received Shs 2.24 billion to be disbursed to 72 SACCOs.

John Tumusiime, the Hoima District Commercial Officer, said financial literacy training is mandatory because it will help beneficiaries to ensure that Emyooga cash, which is meant to be a revolving fund, is used sustainably.

“You need to put in place measures to ensure that the systems and structures of the SACCOs and associations are strengthened. For example, you need to have proper records, offices, which are independent from individual members’ businesses, and staff with basic qualifications,” he advised.

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Abapiri Farmers Lobby For Shs 400m Warehouse

KWANIA –Frustrated by how little farm produce they can stash away, a 450-member group of farmers allied with Abapiri Oil Seed Cooperative Society, in Abapiri Village, in Chawente Sub County, Kwania District is lobbying the government, well-wishers and donors for Shs 400 million to construct a warehouse.

The cooperative, which deals in soya beans, maize, simsim and other cereal crops plans to construct a store to bulk members’ farm produce for sale.

Stephen Otim, the chairman of the cooperative, said they have already procured land to build the warehouse but are still lobbying the government, well-wishers and donors for funds.

https://thecooperator.news/budget-kwania-cooperatives-get-shs-89m/

“We are grappling with the challenge of proper storage, however, the cooperative has a plan of constructing a big store estimated to cost Shs 400 million, we already have land but we are seeking support from the government,” he said.

He said the government should rehabilitate roads and provide irrigation systems to boost farmers’ production. Thomas Olal, a member of Abapiri Oil Seed Cooperative, is optimistic that construction of the warehouse will allow them to bulk their produce and sell at affordable prices to help members climb out of poverty.

Hellen Ayao urged the government to invest in different cooperatives in the country. She rallied people to join groups in order to benefit from the government programs.

“We lack a warehouse, I call upon the government to support us, we want to bulk our produce and sell at affordable prices as you know bulking is power. This will help us get a lot of money to eradicate poverty at the grassroots. I want to encourage people to join the group so that we benefit from the government program,” she said.

Patrick Bura, the Kwania District Commercial Officer, said in a telephone interview that; “Cooperatives have a potentially strong role in reducing poverty and social exclusion, and promoting national development. The government is yet to plan on how to support such cooperatives, but as of now they can write a proposal to the Africa Development Bank for financial support, yes as of now.”

Abapiri Oil Seed Cooperative Society started in 2017 as a Village Savings and Loan Association (VSLA) – largely to promote commercial agriculture and strengthen group marketing for increased household income. The Cooperative currently has a total of 451 members with 150 loan portfolios. However, it is operating without a proper storage facility.

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Gulu Farmers Avoid Large Scale Farming

GULU –Deeply frustrated by the high cost of opening and ploughing virgin land, farmers in Acholi sub-region have steered clear of large scale farming.

Beatrice Kipwola, a member of Paicho Central Kal Cooperative Society in Paicho Sub County, Gulu district, told theCooperator that she has restricted herself to cultivating no more than five acres of land.

“Each season I plant only five acres of both soya beans and beans. This year, I had planned to add another five acres, but this means I have to inject Shs 900,000 in just opening and ploughing the virgin land, minus other inputs, planting and weeding expenses. This is a risk I don’t want to take, considering that high yields are not a guarantee,” Kipwola said.

A tractor costs between Shs 80,000 to Shs 90,000 to dig up an acre of unused land. An ox-plough costs Shs 40,000.

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Since more than 90 percent of people in Acholi sub region are engaged in either subsistence or commercial agriculture –free hands for hire to open new land are hard to come-by because everyone is busy.

Each person or family does their own land opening.

Kipwola, who gets a net profit of about Shs 300,000 to Shs 400,000 every season, said she is afraid of expanding her gardens because hiring individuals to open land costs Shs 120,000 per acre. She said the high cost diminishes her profit margins.

Kipwola hires an ox-plough to open land.

Joska Lacaa, another member of Paicho Central Kal Cooperative Society, said she cannot cultivate beyond three acres.

Lacaa said she has restricted herself to growing only an acre of ground nuts and an acre of maize to avoid the prohibitive cost of opening new land.

She said uprooting a single tree stump from virgin land costs between Shs 10,000 to Shs 20,000.

“If there are 20 tree stumps on an acre, it means I have to part with a minimum of Shs 200,000 before employing the use of a tractor, twice. So, where will my profit come from?” Lacaa said.

Simon Opiro, the chairperson of Paicho Central Kal Cooperative Society, said land opening is a daunting task for the more active 47 female members of the cooperative. The cooperative has 219 members, but only 81 are active. Unlike men who can do some of the tasks, women have to hire most of the services, he said.

Opiro said that besides the prohibitive cost of hiring tractors for land opening, the whole sub county has only three tractors, which are always occupied. He said it takes about a month or more to get a tractor on-the-ground after booking.

Santa Joyce Laker, the chairperson of Atiak Sugar Plantation Out growers’ Cooperative Society Limited, said land opening is the biggest challenge to the cooperative.

“Operation Wealth Creation gives only seeds; how do you give seeds to someone who is unable to clear a large farm for commercial agriculture?” Laker said.

“We need support from government. It has only supported us to open land for sugarcane, not other crops, yet commercializing agriculture needs a lot of inputs,” Laker said.

A 2016 study of Land, Food, Security and Agriculture in Uganda by Friedrich Ebert Stiftung and Makerere University Business School found that cooperatives in Uganda now, unlike in the heyday of the cooperative movement, are not getting enough government support in terms of inputs.

The study suggests that agriculture credit be extended to cooperatives in form of tractor hire services and supply of inputs such as pesticides and other equipment, such that recovery is done at the time of sale of produce.

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