24 April 2012

Uganda: Government to Build More Warehouses

The Trade, Industry and Cooperatives minister, Amelia Kyambadde, has revealed that her ministry will construct 60 warehouses and 10 silos across the country in the next financial year. She was speaking in Sheema district at a function to celebrate women's achievements. She noted these warehouses and silos would be managed by cooperative societies within those districts. She said seven warehouses have been constructed this financial year. Kyambadde said these silos and warehouses would help on food security, a crucial subject that has seen households struggle to have three meals a day. She said that a lot of food goes to waste because of the lack of a proper storage system.

Silos and warehouses are important in boosting farmers' produce. First, farmers do not have to sell their produce for a song just because they are worried their produce will rot away. This way, the middlemen, and their hard bargains, are eliminated since the farmers have where to store their produce.

Also, with their produce stored in a proper warehouse, farmers can negotiate for a better price since they tend to deal with bigger purchasers. Farmers usually appoint representatives who negotiate with the bigger buyers. Then again, farmers can access loans using their produce stored in the warehouse as security. Although these loans have a shorter lifespan; the time is usually not more than three months.

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