Drought behind food price hike

By Samuel Sanya and Daniel Edyegu

Dependence on weather patterns for agricultural production has once again sent many who depend on agriculture for a living into a panic.

Coffee yields have been hit in eastern Uganda, milk prices are up because the drought has affected volumes and maize crop yields have been affected as a prolonged drought takes a toll on the central and western parts of the country.

Isaac Taremwa, a sorghum and maize farmer in Kabale, western Uganda says the drought will affect prices of Obushera – a local beverage.

Sorghum, beans, and maize crops have been hit in the region, only potatoes planted in the wetlands are safe.

The Uganda Coffee Development Authority (UCDA) explains that the drought has affected both Arabica and Robusta coffee farmers countrywide.true

Prices of Arabica coffee around Mt. Elgon have dropped to sh3,000 per kilogramme of premium parchment, from highs of sh5,500 because the excessive heat affected the quality of cherries.

“The rains disappeared earlier than we expected, considering that weather forecasts from the Uganda metrological centre indicated heavy rains would go until July. The drought is likely to increase the quantity of black beans in our coffee,” UCDA’s Fred Ruzinda says.

Coffee starts flowering in March. During this time the crop requires adequate rainfall to aid flowering and subsequent fruition. The rains make the coffee cherries ripen and build the weight of parchment.

The harvest season for coffee usually starts in July and hits its peak in August. This time round, however, farmers have barely harvested any yields this month.

“We expect the peak-season to start towards the end of August,” says Hadija Nafuna, a coffee buyer.

In eastern Uganda, the drought has mainly hit the coffee producing districts of Mbale, Manafwa, parts of Sironko and the lower parts of Bulambuli district.

The milk production belt in western Uganda is another area that has been affected. Bright Rwamirama, the State Minister for Agriculture and Animal Husbandry, recently said milk prices have increased mainly due to the export market and the drought causing low levels of milk production.

He says farmers should increase the nutrition levels for their animals during the dry season and stock enough water for them.

"If you stock water for your cows and increase their levels of nutrition, how then can you be affected by the dry season? Instead, milk production can increase and you supply more where it is needed,’’ said Rwamirama.

A litre of unpacked milk (at the local milk dairies) has gone as high as sh1,800, from sh1,000 in some areas.

A litre of packed milk has increased from previously sh2,000 to sh2,400 at some milk centers and at other milk dairies has increased from sh2,400 to sh2,600, a difference of sh400 and sh200 respectively.

Lifeblood

The agriculture sector employs 66% of the total Ugandan labour force and plays a critical role in the economy.

Coffee exports earn the country $500m (sh1.3trillion) annually, only second to tourism that brings in $800m.

A similar drought in 2011 led to a spike in headline inflation from 5% at the start of the year to 30.6% in October, leading to the prevailing tight monetary policy.

“Food prices are likely to go up, especially for maize,” said James Mbogga, a consultant with Seasons Harvest Limited.

Commercial bank rates are still high at an average of 22% from highs of 30% as credit growth remains weak, affecting economic growth.

A second spate of drought could rekindle inflation from its lows of 3.4%. 
                                             Food prices are likely to go up                          

Agricultural sector at cross roads

Maria Kiwanuka, the finance minister, allocated sh403.6b, 3.1% of the current national budget to agriculture, but sector players say the funding should be higher.

The Government has restructured the National Agricultural Advisory Services  (NAADS) into a rural agri-business initiative to disseminate knowledge on how to promote profitable agriculture enterprises across the country.

The hitch in the plan seems to be the limited number of extension service workers.

Uganda has more than 4.2 million households depending on agriculture directly and indirectly. Most are smallholder farmers.

Morrison Rwakakamba, the Agency for Transformation head, notes it would take the 1,600 government registered extension workers a total seven years and two months to reach each household.

“Before we ask for additional funding for the agricultural sector, it’s important that we assess just how effectively the current funding is being used. We need digital extension services through the radio,” he says.

Rwakakamba made the comments at a workshop on pesticide safety by the Uganda National Association of Community and Occupational Health (UNACOH) in Kasangati, Kampala recently.

Agriculture has the potential to transform the economy, however, the lack of well-run farmer groups, limited mechanisation and irrigation have affected productivity of the sector and incomes of most Ugandans.

Agricultural sector output grew by 1.4% last financial year, improving from 0.8% the year before. Growth in agriculture lags behind the construction sector at 8.2%, electricity supply at 10% and the manufacturing sector at 4.2%.

“Agriculture is a private sector activity for which the Government will continue to provide support towards its further development in research, seed multiplication and certification, and disease control,” Kiwanuka noted in her third budget speech.

The Government has set its sights on bolstering research into the production of maize, beans, coffee, market fruits and vegetables, rice, bananas, fish, dairy and beef cattle as a means to boost food security and household incomes.

But the specific farmer problems remain unattended to. The re-establishment of cooperative schemes is slow, inputs are overpriced, good seed varieties are hard to access and market prices are unpredictable.

Tress Bucyanayandi, the agriculture minister, notes that the financial sector should develop a special loan facility to enable farmers to mechanise and improve yields.

There are on-going efforts to rehabilitate large scale irrigation schemes. The Government intends to accelerate the adoption of small scale and affordable irrigation technology to boost productivity.

The rehabilitation of Mubuku, Doho and Agoro irrigation schemes is substantially complete. The Olweny swamp rice scheme will be rehabilitated this financial year together with 33 schemes in other districts.    Limited mechanisation for processes such as irrigation have kept farming dependent on weather patterns

Out of an estimated six million hectares of cultivated land in Uganda, only 54,000 hectares are being irrigated. Of these, only 2,500 hectares have proper irrigation schemes.

Feasibility studies are planned for the rehabilitation of Atera, Labori, Odina and Kiige irrigation schemes.

“This will reduce excessive reliance on natural weather for agricultural production. Our approach is to invest where the private sector cannot do well,” Kiwanuka said.

She noted that there are on-going initiatives by the ministries of agriculture, local government and finance, together with the Uganda Prisons Service and private sector operators to multiply improved seed.

Bucyanayandi notes that farmers should be planting much earlier in the wet seasons to enable crops to mature before the dry season sets in.

“Irrigation is currently done in government-run irrigation schemes. Farmers need to use machines to ensure that they plant early and get better yields. They need loans to acquire irrigation systems,” he said.

Additional reporting by Wilfred Sanya and Mutesi Noorah