Photo: Planet RetailSource: The Monitor (Kampala), OPINION, 10 July 2007 by Katherine Roubos

Ugandan farmers are missing out on a huge market for fresh produce each month because they are not selling to supermarkets like Uchumi and Shoprite.

Supermarkets are one of the fastest expanding businesses in East Africa, with South Africa's Shoprite leading the pack in Uganda. According to business executives, supermarkets in Uganda are set to double in number in the next two years as both Shoprite and Uchumi plan to open new stores.

It is critical that Ugandan farmers find a way to access this burgeoning market, rather than shrug their shoulders as Uchumi imports mangos from South Africa and Shoprite imports watermelons from Kenya.

Mr David Njenga, the country manager of Uchumi Supermarkets Ltd., insists there is a "huge potential to increase local sourcing for fresh produce". Uchumi currently deals with 50 produce suppliers; the five major suppliers are from Kenya and South Africa, the rest are local producers or traders.

"We want to deal directly with the farmers, rather than with traders" Mr Njenga says, "but we know that transportation is hard for small farmers."

Uchumi imports 50 per cent of its produce, buying all of its bananas, passion fruit, and pineapples from Ugandan farmers, but sourcing oranges, mangos, tangerines, and apples from foreign suppliers. Other products like tomatoes, potatoes, lemons, pawpaws, and onions are partly sourced locally and the rest are imports.

"It's hard because they don't have commercial farms for these products here, so the quality is not as good," Mr Njenga says, "but I would prefer to source locally if someone approached me with a good quality product."

So how does a farmer begin to supply large supermarket chains? Quality, consistency, and communication are the key.

Full story at http://allafrica.com/stories/200707091700.html [1]