Coffee farmers reap big under warehouse system
Sep 13, 2006
COFFEE farmers in western Uganda have received sh1,900 per kilogramme of coffee above Uganda Coffee Development Authority’s (UCDA) indicative price of sh1,800 under the Warehouse Receipt System (WRS).
By Charles Bwogi
COFFEE farmers in western Uganda have received sh1,900 per kilogramme of coffee above Uganda Coffee Development Authority’s (UCDA) indicative price of sh1,800 under the Warehouse Receipt System (WRS).
The system allows farmers to deposit produce in a certified warehouse where they are issued with a receipt. The receipt can be used as collateral in the bank in case the farmer or group wants credit.
“In the pilot project concluded last month, farmers deposited 30 tonnes of FAQ (semi-processed Robusta Coffee) and received between sh100-sh150 above UCDA’s indicative price of sh1,800,†Christian Baine, the implementer of the system, said.
The pilot project covered primary societies in Bushenyi and neighbouring districts.
Baine said primary societies mainly in Bushenyi had asked for the extension of the project in their area and had so far deposited three tonnes, which is a sign of progress.
According to the commissioner of cooperative development, who is also the WRS coordinator, Fred Mwesigye, the system is one of the ways the Government has developed to ensure farmers are not exploited by traders and middlemen.
“By bringing the farmer up the value chain under the WRS, a farmer is able to negotiate for a better price and earn a premium price,†he said.
Mwesigye said the system presents a farmer with an opportunity to trade directly with big traders like exporters who enjoy buying in bulk and from particular places like warehouses.
COFFEE farmers in western Uganda have received sh1,900 per kilogramme of coffee above Uganda Coffee Development Authority’s (UCDA) indicative price of sh1,800 under the Warehouse Receipt System (WRS).
The system allows farmers to deposit produce in a certified warehouse where they are issued with a receipt. The receipt can be used as collateral in the bank in case the farmer or group wants credit.
“In the pilot project concluded last month, farmers deposited 30 tonnes of FAQ (semi-processed Robusta Coffee) and received between sh100-sh150 above UCDA’s indicative price of sh1,800,†Christian Baine, the implementer of the system, said.
The pilot project covered primary societies in Bushenyi and neighbouring districts.
Baine said primary societies mainly in Bushenyi had asked for the extension of the project in their area and had so far deposited three tonnes, which is a sign of progress.
According to the commissioner of cooperative development, who is also the WRS coordinator, Fred Mwesigye, the system is one of the ways the Government has developed to ensure farmers are not exploited by traders and middlemen.
“By bringing the farmer up the value chain under the WRS, a farmer is able to negotiate for a better price and earn a premium price,†he said.
Mwesigye said the system presents a farmer with an opportunity to trade directly with big traders like exporters who enjoy buying in bulk and from particular places like warehouses.