By Lydia Labanya
Researchers from Makerere University Business School (MUBS) have proposed the need for the Government to invest in increased maize production in the country to create jobs, improve revenue generation and the economic welfare of Ugandans.
The team of researchers led by Prof. Wasswa Balunywa released their research findings during a conference held last week at Hotel Africana in Kampala, during which they emphasised that the Government prioritises maize growing to create local and international opportunities for Ugandans.
Other researchers who participated in the study included Dr Fred Muhumuza, Associate Prof. Julius Kikooma, Dr Agnes Nassuna, Dr Edith Balirwa Mwebaza, Dr Samuel Mayanja, Dr Ronett Atukunda, Dr Johnson Ssekakubo, Shakira Nagujja and Victoria Nabukeera. Balunywa pointed out that the MUBS Economic Forum was established to discuss and address prevailing economic concerns.
A primary worry, he highlighted, is the nation’s declining export earnings.
“To eradicate poverty, we must empower people to produce maize consistently and on an elevated scale,” Balunywa said.
He further illuminated maize’ pivotal role in Uganda’s economic landscape.
“Recently, maize ascended as Uganda’s second-largest agricultural export earner. This study is examining if maize can serve as the cornerstone for regional food stability and a means to enhance incomes for our populace,” Balunywa said.
Giving details about their study, Balunywa said: “Today, we are presenting findings from our study’s initial phase, which zeroes in on farmers. Our intent is to grasp their farming methods, the hurdles they face and the kind of support they garner from the Government.”
Listing the challenges, Balunywa mentioned the agricultural community’s dependence on outdated methods and their unfamiliarity with genetically modified seeds.
Factors like unpredictable or inadequate rainfall further compound the issues. Balunywa struck an optimistic note, saying: “Our research indicates Uganda’s untapped capability to ramp up its maize production. But quality assurance, particularly in drying methods, is paramount. The recent discovery of toxins in our maize brings this concern to the fore.”
He added: “Maize holds transformative potential to address poverty and bridge our economic gap. As such, we advocate measures to address maize production challenges, ensuring it’s of premier quality, abundant and meets market requisites.”
Balunywa drew attention to the presence of key agricultural officers and ministry officials.
“Our aim with this research is to pave the way for policy formulation, especially in the areas of poverty alleviation and trade,” he said.
The study indicates that since Uganda is naturally endowed with arable land that is good for agricultural production, the country can easily become a global food basket through producing plenty of maize, which can always be sold to countries that are always suffering from food shortage.
Ronett Atukunda, a senior lecturer at MUBS, examined the regional maize demand.
“We are ranked second in maize production in sub-Saharan Africa. Despite the challenges we face, resolving them could significantly boost Uganda’s standing,” she said.
Atukunda highlighted the prospective benefits of a co-operative to ensure market stability and maize’s pivotal position in the national food chain.
“As previously mentioned, 19% of Uganda’s maize production, which ranks it as the second-largest in the region, is attributed to smallholder farmers. Imagine the potential if a co-operative was established to guarantee a market,” Atukunda said.
Dr Samuel Mayanja expounded on persistent challenges like diminished yields, the prevalence of subsistence farming and post-harvest handling dilemmas, referencing the 2021 Kenyan ban on Ugandan maize imports due to aflatoxin concerns.
Mayanja proposed that focus be put on quality standards, larger-scale farming and government interventions like increased agricultural financing and strategic infrastructure investments.
Moses Muhwezi, the acting MUBS principal, underscored the significance of research in linking educational institutions with national growth.
“Educationists often face criticism for being overly theoretical. Yet, we are convinced that research and education are integral components of national development,” he said.
The performance of the economy report for April indicated that monthly earnings from maize exports increased to $42.7m (about sh157.9b) in March 2023 from $30.7m (about sh113.5b) earned in February 2023 and $35m (sh129.5b) earned in January 2023.
One year ago in January 2022, the earnings from maize exports were only $6.7m. Going by the above figures, maize has eventually become the country’s third leading foreign exchange earner and has potential to generate more if production volumes are enhanced.
The MUBS research team pointed out things that need to be addressed including low yields, a predominant focus on subsistence farming, inadequate post-harvest processes, limited acreage and access to markets.
Uganda’s potential
According to the research findings, Uganda, regarded as the potential breadbasket of East and Central Africa, needs to embark on critical steps to boost maize production efficiency and quality.
The nation’s potential to be a major maize supplier to regions including Eastern and South Africa is underlined by persistent food shortages in countries such as Kenya, Somalia and South Sudan.
The MUBS researchers established that more than 81% of Ugandan farmers involved in maize growing rely on natural rain and only 19% grow maize throughout the year.
“Over 90% grow maize for both subsistence and commercial purposes. Five per cent were growing for commercial purposes. Fifty-nine per cent do not own the land for growing maize. Ninety-three per cent knew nothing about genetically modified seeds,” the research report indicates.
On storage, the study established that over 80% of the farmers store their maize using sack bags, followed by 30% storing maize by pouring it on the floor of their store.
“And 55% reported being aware of aflatoxins, while 45% did not know anything about it,” the MUBS researchers established. On marketing and selling of maize, the study established that the majority of the farmers (54%) sell their maize immediately after harvest, while 43.7% sell off-season during high demand.
According to the study, about 62% of the farmers sell to local retail traders and 61% to individual local customers.
The majority of the farmers (62%) determine their maize prices using prevailing market prices. On support and collaboration among maize farmers, the team established that the majority of the farmers (62%) did not belong to any co-operative group.
About 83% indicated that they did not get any support and only 12% reported having got support from the Government.
The MUBS researchers noted that Uganda has always produced below capacity, but even when it has excess to sell to external players, sometimes the maize is poorly handled.
“For instance, Uganda hosts approximately 1.5 million refugees under the United Nations High Commissioner for Refugees (UNHCR, 2022). However, there has been a row over UNHCR’s importation of maize and failure to buy it from Ugandan farmers. UNHCR cited the poor quality of Ugandan foods as the main reason for their refusal to buy from Ugandan farmers. Equally, in 2021, Kenya banned the importation of cereals from Uganda on the grounds that the grains had aflatoxins, which is associated with post-harvest handling,” Balunywa said.
Recommendations
The research team has given several recommendations, including the need to enhance production and productivity, enforcing quality standards along the input supply chains, and establishing a policy to zone agriculture.
“There is a need for provision of extension services to maize farmers. The Government should increase the number of agricultural extension workers and also train individuals in co-operatives to scale up sound agricultural practices,” the researchers recommended.
On the quality of maize, they recommend that the Government should put in place a system that guides farmers on the selection of high-yielding maize seeds, fertilisers, drying process, storage and how to test for aflatoxins in maize grains.
They want quality assurance to be integrated from production to marketing.
On agricultural financing, the researchers advised the Government to support irrigation schemes for the country to reduce dependence on natural rains for maize production.
On price fluctuations, which deny the farmers the best value out of their maize, the team suggests that the Government comes in strongly to implement price stabilisation strategies such as supporting the construction of silos, warehouses and establishing commodity funds. The Africa Maize Market size is expected to grow from $38.80b in 2023 to $53.66b by 2028.
In Africa, South Africa is the leading producer of maize and the country earned over $810m from maize exports in 2021, which is the same range of what Uganda currently earns from coffee exports.
This implies that if Uganda increased the volumes of maize the country produces, it can earn much more from maize exports than it is currently earning.
