Tomato farmers count losses as prices plummet

Farmers in Kasese are counting heavy losses resulting from a sharp drop in tomato prices.

According to several farmers, the farm gate price fell from Shs 50,000 for a basket of tomatoes last season, to Shs 10,000 this season.

Several reasons have been cited for the drop, including: surplus produce due to a bumper harvest; transportation challenges; lack of access to markets and reduced demand.

The Chairperson of Nyabubare Tomatoes Farmers Cooperative Society, Doviko Bagonza, in Karusandara sub-county, blames the price drop on the disruption of transport.

“We [farmers] have lost market due to lack of transport means, which is leading to huge losses for us,” he said.

Bagonza appealed to government to help farmers add value to their produce.

”We appeal to government to give us processing machines to manufacture juice or tomato sauce because we now produce enough to sustain them,” he said.

Mr. Samuel Nyarwa, a tomato farmer in Karusandara sub-county Kasese district, said that farmers have had to abandon their crop in the garden due to limited demand.

“Our biggest clients were from the DRC and South Sudan, but because of the insurgencies in those countries, our customers are no longer coming to buy,” Nyarwa said

Henry Muhumuza, a large scale tomatoes’ farmer is afraid he will make huge losses this year as a result of the drop in tomato prices.

“I invested 69m into growing tomatoes on 24 acres of land, and got a bumper harvest. I was hoping for a 300m return, but we have been betrayed by the low price on the market,” he said.

He called upon the government to come to help farmers with accessing wider markets in order to absorb surplus produce.

“Many of us take agricultural loans for farming, but when we fail to get market for the produce, we suffer the consequences and banks end up attaching our properties”, Muhumuza said.

Invest in value addition

Lt. Col. Medhi Baguma, Coordinator Operation Wealth Creation, Busongora South constituency, urged farmers to invest more in value addition. This, he said, would cushion them from the negative impact of price fluctuations.

“It is true that our tomato farmers are faced with low prices this season, but I advise them to plan for value addition if they are to benefit even more from their crops,” he said.

Dembe Kasozi, the district councillor for Karusandara sub-county requested government to set up a tomato processing plant in the region as way of assisting farmers to add value to their produce.

“I appeal to government to bring us at least one machine for processing tomato sauce if we are to add value to our crops,” Dembe said.

Kasese district RDC, Lt. Joe Walusimbi, promised that his office would look into ways that the farmers can be assisted.

In a visit to the district last month, the minster for Agriculture, Animal Husbandry and Fisheries, Hon. Ssempijja Vincent Bamulangaki encouraged farmers to increase their production in order to justify government investment in value addition technology.

“For you to get machines from government, you be able to produce enough to justify the investment,” he said.

He promised to send a technical team from the ministry to assess the viability of setting up processing plants for various products in the area.

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Masindi lorry drivers accuse security personnel of harassment

Lorry drivers in Masindi district, under their umbrella organization Bunyoro Lorry Drivers Association have accused security operatives in the district of extortion and harassment.

The drivers say the harassment is perpetrated in the name of implementing the presidential directive regulating the movement of vehicles. President Yoweri Museveni banned the movement of passenger vehicles as part of measures to fight the spread of the COVID-19 pandemic.

Cargo vehicles were allowed to continue operating, along with a few other services considered essential. However, cargo lorry drivers in Masindi district say they are surprised to see security operatives harassing them and yet they were allowed to move.

Juma Ssekiranda, a lorry driver said, security operatives in Masindi have continued to harass and arrest them as they go about their daily business, leading to losses.

“They also stop us from moving with our experienced loaders, which has made work more difficult and hence we cannot reach our destinations on time.”

Another driver who declined to be named said security operatives had misinterpreted the curfew directives restricting movement past 7:00 pm.

“Security does not allow us to move beyond 7:00pm and yet the president’s curfew order does not apply to cargo,” he said.

Extortion

Meanwhile, drivers have accused some security personnel of extortion under the guise of enforcing presidential directives.

One of them, Kenneth Kyeyune, noted that some drivers found driving after 7:00 pm were forced to pay money before being released.

“One of my colleagues was forced to pay 110,000 shillings before he was allowed to continue with his journey.”

When contacted, the Acting RDC, Masindi, Longino Baheebwa, said many lorry drivers carry passengers masquerading as loaders, in violation of official directives that only allow three passengers per cargo vehicle: the driver, turn boy and a loader.

He also advised the drivers to identify and report all security operatives engaged in extortion for easy follow up.

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COVID-19: Tough times for SACCOS as more members default on loans

Savings and Credit Cooperative Organizations (SACCOs) in Western Uganda are facing increased member defaults on loans in the wake of the novel Coronavirus.

According to Pison Mugizi, Chairman of Butuuro SACCO in Bushenyi -Ishaka municipality, about Shs 6 billion was loaned out to members, but none of it has been paid back yet. Most of the defaulters blame the COVID-19 related lockdown for their inability to pay.

“Many of members, such as bodabodas and traders, have no other source of income following the lockdown on businesses by the presidential directive,” Mugizi said.

In response, the SACCO’s management resolved to extend the affected members’ loan repayment times.

“We encourage affected members to come and discuss with management how their loan repayments can be rescheduled; or we can give them a grace period of payment,” he said.

However, he encouraged members whose business has not been directly affected by the lockdown to continue servicing their loans as agreed.

“Some members pretend to have been affected by the COVID-19 pandemic and yet they haven’t. People like farmers are still planting. We appeal to them to pay their loans as per their schedules,” Mugizi said.

Butuuro SACCO has two branches, one in Kyabugimbi town council and another in Kashenshero town council in Mitooma district.

In a similar bind is Ankole Diocese Millennium SACCO.

According to Agnes Atwine, the SACCO’s Senior acting Manager, loans to members currently stand at Shs 5.8billion. However, there are fears that members will default on payments as measures to combat the spread of the novel Coronavirus continue to take their toll on businesses.

“We are worried as loans compose eighty one (81%) percent of our total business, and yet members seem unable to pay,” Atwine explained.

The SACCO’s patron, Bishop Rt. Rev. Dr. Sheldon Frederick Mwesigwa, also revealed that the Ankole Diocese Millennium SACCO’s 2019 Annual General Meeting (AGM), which had been slated for March 24, 2020 was postponed until further notice due to the novel Coronavirus pandemic.

Savings, recruitment hit

Benon Kajubi, the Managing Director Kakiika United Co-operative Savings and Credit Society Ltd told theCooperator that the pandemic has negatively impacted savings and recruitment of new members.

“Since the outbreak of this disease, savings have reduced, and we no longer get people coming to take loans. Even the number of new clients seeking to open accounts with us has gone down,” he said.

Instead, he said, the SACCO receives more members coming to withdraw their savings to use during the lockdown.

Founded in 2010, Kakiika United Co-operative Savings and Credit Society Ltd has a current loan portfolio of about Shs 400 million.

Nevertheless, Kajubi is optimistic that the strict measures aimed at combating the spread of the novel Coronavirus will soon be eased and business will normalize.

Uganda has registered 54 COVID-19 cases so far, with zero deaths.

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