The Eastern Africa Grain Council (EAGC) is establishing farmer-owned and operated “Grain Trade Business Hubs,” or G-Hubs, as comprehensive centers designed to tackle the multifaceted challenges faced by smallholder farmers and stimulate regional grain commerce, the organization’s chief executive said Friday.
Gerald Makau Masila, in an interview at an agricultural exhibition here, outlined the core mission of the G-Hubs as empowering farmers through collective action, explaining that these hubs will provide essential resources and improve farmers’ access to markets.
He spoke to reporters at an annual agribusiness expo hosted at the National Crops Resources Research Institute (NaCRRI) in Namulonge, Wakiso district. The event, championed by the National Agricultural Research Organisation (NARO) in partnership with the EAGC and DANIDA Green Business Partnerships (DGBP), focused on the sustainability of food systems in Uganda, climate-smart agriculture trade, and wealth creation.
A key function of the G-Hubs is to facilitate this collective action, Masila said. By uniting multiple farmer cooperatives, the hubs will enable the pooling of resources, significantly increasing the farmers’ bargaining power within the agricultural value chain. This unified strength will allow them to operate more effectively in various aspects of their businesses.
Masila emphasized that improved access to essential inputs is another crucial benefit of the G-Hubs. Through the consolidated purchasing power of the hub, farmers will gain access to high-quality inputs such as improved seeds and fertilizers. This collective procurement is expected to result in considerably lower costs compared to individual purchases, making these vital resources more affordable for smallholder farmers.
The CEO also highlighted the vital role G-Hubs will play in post-harvest management. Recognizing the substantial losses that can occur after harvesting, these centers will provide access to appropriate storage facilities and implement quality control measures. This infrastructure and expertise are intended to help farmers minimize post-harvest losses, preserve the quality of their grain, and ultimately increase its market value.
Enhancing market access is another central function of the G-Hubs. Masila noted that the EAGC, through these hubs and its GSOKO platform, will actively work to connect farmers with premium markets, both within the region and internationally. By aggregating the produce of member farmers, G-Hubs can offer larger, more consistent volumes that are attractive to buyers, thereby improving farmers’ opportunities for profitable sales. The GSOKO platform will further streamline this process by providing a direct link between farmers and buyers.
To support sustainable agricultural practices, G-Hubs will also offer technical support. Farmers will benefit from advisory services aimed at helping them adopt and implement improved farming techniques, leading to increased yields and better quality produce. Masila stressed that this knowledge transfer is essential for long-term agricultural development and the empowerment of farmers.
In addition to these services, the G-Hubs will also work to improve farmers’ access to financial services. This includes facilitating connections with credit institutions and linking farmers to output markets, addressing a critical constraint often faced by smallholder farmers seeking to invest in their operations and expand their businesses.
Masila underscored the EAGC’s pivotal role in supporting the development and operation of these G-Hubs. This support includes capacity building through training programs designed for both the management of the G-Hubs and the member farmers, equipping them with the necessary skills and knowledge for effective operation and participation in the market.
Furthermore, the EAGC will offer crucial market intelligence through its Regional Agricultural Trade Intelligence Network (RATIN). This system will provide G-Hubs and farmers with valuable information on market trends, pricing, and demand, enabling them to make informed decisions about production and sales.
The EAGC will also actively engage in policy advocacy at regional and national levels, working to promote reforms that support the growth of the grain sector and the development of G-Hubs, creating a more enabling environment for agricultural trade.
Masila stated that the EAGC will foster strategic partnerships with other organizations, such as TradeMark Africa, to further strengthen the G-Hubs and enhance the overall efficiency and effectiveness of the grain value chain in the region.
In practical terms, the G-Hub concept addresses key challenges faced by smallholder farmers. Individually, these farmers often struggle with the high cost of inputs due to small purchase volumes and have difficulty accessing profitable markets with limited quantities of produce. By organizing farmers into G-Hubs, the EAGC aims to facilitate collective action that overcomes these hurdles. Farmers within a G-Hub can collectively decide on suitable crops for their region, aggregate their land for more efficient production planning, and purchase inputs in bulk, leading to significant cost savings.
Regarding post-harvest handling, G-Hubs will provide a central point for aggregation and storage. These facilities, developed according to EAGC standards, will ensure that harvested grain is handled and stored properly. Trained experts within the G-Hubs will sample and grade the grain, ensuring quality and food safety standards are met before it enters the market.
The GSOKO platform will then provide the crucial link to the market. Grain stored in the G-Hubs will be listed on this platform, a trade catalog circulated weekly to EAGC members. Potential buyers, such as millers and traders, can view the available commodities and submit inquiries. The EAGC trade desk will then connect the farmer-producers (through the G-Hub) with the buyers, facilitating contract negotiation and ensuring secure transactions. Payments are often managed through an EAGC settlement account, providing security for both buyers and sellers. Masila noted that this system has already facilitated the trade of significant volumes of grain across the region, benefiting farmers, traders, and ultimately consumers who gain access to quality, safe, and affordable grain.
Frank Tumwebaze, the Minister for Agriculture, Animal Industry and Fisheries, said on Friday that the government remains steadfast in its commitment to supporting agricultural research institutions, recognizing them as the bedrock of the nation’s food systems.
Tumwebaze emphasized the crucial role of these institutions in propagating high-quality seeds and developing safe, resilient, disease-free, and environmentally friendly foundation seed.
“This forms the fundamental basis of our agriculture and our food security. Therefore, our support for these institutions will continue,” the minister stated.
Tumwebaze acknowledged the existing need for more researchers across the diverse disciplines within agricultural research. “We will continue our efforts to address this and increase the number of skilled personnel within these institutions,” he affirmed.
Dr. Sadik Kassim, the deputy director of the National Agricultural Research Organisation (NARO), emphasized NARO’s mission to build resilience in the agriculture sector through the development of drought, pest, and disease-tolerant crop varieties.
He also highlighted NARO’s work in enhancing nutrition through fortified products, contributing to agro-industrialization by developing prototypes, pursuing import substitution with crops like barley and wheat, and increasing export volumes, as seen in the coffee and maize sectors.
