The East African Business Council (EABC) has said farmers should embrace contract farming given that it has capacity to reduce losses and improve predictability of the agricultural sector.
Mr John Bosco Kalisa, the EABC chief executive officer, said that in his experience, trade in agricultural products across the region is easier where there is a contract, which creates an obligation between the farmer and buyer of the produce.
However, for contract farming to be mainstreamed, Mr Kalisa said, government needs to come up with policy guidelines on how it will work.
Agriculture remains Uganda’s mainstay, contributing more than 25 percent of the country’s gross domestic product, even as majority of those involved are largely subsistent.
Contract farming brings prospective buyers and farmers together.
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