Saturday, November 13, 2010

Uganda bemoans lack of proper agric market

Uganda bemoans lack of proper agric market
By Kabanda Chulu in Uganda
Sat 13 Nov. 2010, 03:59 CAT

UGANDA’s agriculture minister Hope Mwesigye has said lack of proper market structures has continued to frustrate agricultural productivity despite huge investments by governments and development partners.

And Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) chief executive officer Cris Muyunda has said there is need to address the danger of turning into a full-fledged bureaucracy that does not deliver services to target beneficiaries.

Officially opening the 4th ACTESA stakeholders meeting on agriculture commodity trade in Entebbe, Uganda on Wednesday, Mwesigye said ACTESA and its partners had an obligation to define a clear pathway of graduating smallholder farmers into entrepreneurs that would produce sustainably for markets.

She said there was need to ensure that small-scale farmers and traders remained in business and continued producing and marketing enough commodities for their own countries and export markets.

“To enhance agricultural growth and food security by simply increasing
investment is not enough, and governments and development partners have to make fundamental changes in the way we do business,” advised Mwesigye.

“Stand alone and supply-driven commodity interventions are not only unsustainable but they will not succeed. Instead, we should support ACTESA to strengthen existing public private partnerships and business-to-business alliances that facilitate the development of smallholder-supportive value chains.”

And USAID representative Peter Ewell challenged ACTESA to put in place well-defined and measurable indicators when implementing programmes.

And COMESA secretary general Sindiso Ngwenya said the lack of market capacities for the dominant smallholder farmers had ruined the performance of the agriculture sector in Africa.

“Of all the factors constraining agricultural productivity and overall growth of the agriculture sector, access to profitable markets is the most important one,” said Ngwenya in a speech read on his behalf by COMESA director of gender affairs Emiliana Tembo. “Small farmers must become commercialised and consider agriculture a real business enterprise.”

And Dr Muyunda said ACTESA was on track to fulfilling its intended objectives as could be seen by the various programmes being undertaken.

“The bottom line is that ACTESA is not a talking shop; it’s an impact-oriented organisation strongly focusing on the best practices in policy market services and capacity building,” said Dr Muyunda.

“In terms of challenges that we still have to address, we note the following that there is always a danger of turning into a fully-fledged bureaucracy that does not deliver hence the need to do a lot better both as a secretariat and as stakeholders in quickening the delivery of service to our target beneficiaries.”

ACTESA is a specialised agency of COMESA whose main goal is to increase farmer productivity and incomes in the region through trade in strategic agricultural commodities.

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Tuesday, January 26, 2010

ACTESA cautions govts over unstable food prices

ACTESA cautions govts over unstable food prices
By Kabanda Chulu in Maputo, Mozambique
Tue 26 Jan. 2010, 04:00 CAT

THE impact of food prices on the welfare of all citizens and their instability can bring down any powerful government, ACTESA chief executive officer Cris Muyunda has said.

And Mozambican agriculture minister Soares Nhaca has said there is need to devise priority actions for managing food price policies and implementation of instruments aimed at attaining household food security.

During the Agriculture Commodity Trade in Eastern and Southern Africa (ACTESA) policy seminar on food price variability, Dr Muyunda yesterday said food prices had been an issue of economic importance and political sensitivity for a long time.

He said decision makers had the enormous task of managing price stability.

“Food prices should remain attractive to both farmers and consumers and the political survival of those in power should be ensured through stable prices which also play an important precondition for development,” Dr Muyunda said. “Food prices impact on the welfare of all citizens and their instability can bring down powerful governments and the sharp prices in 2008 brought enormous and long-lasting instability in our regional markets hence the need to find effective solutions that will depend on the particular causes of price instability.”

He said there was need to examine comprehensively the various instruments for stabilising food prices and managing the price risk.

“In terms of governance, these instruments can either be marke- based or public. Fundamentally, decision makers should consider instruments such as modernising production and trade structures to take advantage of price differential between food types, locations and times of purchase and sale and controlling of food supply through production of input subsidies,” Dr Muyunda said.

“But which instruments should our governments adopt? Policy makers have the best chance of achieving their objectives if their choice of instruments is based on solid understanding of the functioning of food markets and the effectiveness of different policies and these solutions should attack the problem at its root.”

Officially opening the seminar, Nhaca said there was need to address cereal trade policy options, food prices controls and public stocks for food price stabilisation.

“We should urgently put in place priority actions for managing food price policies and we should prepare ourselves on how to deal with situations as the one that we had with the recent food crises, fuel prices and shocks to the economy as a whole,” said Nhaca. “In Mozambique, the agriculture sector contributes 23 per cent to GDP but it is livelihood base for more than three quarters of the population and for this reason, agriculture remains the focus of our government’s efforts to reduce poverty.”

The seminar is being held under the ACTESA programme on African Agricultural Markets Programme (AAMP) that aims at enhancing the capacity to respond to the challenge of food security in the Common Market for Eastern and Southern Africa (COMESA) region.

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