Business Newsletter. August Vol. 1 No.1

Transcription

1 Business Newsletter August Vol. 1 No.1 AgriNet U Ltd was locally incorporated as a business in Uganda in February The core business of AgriNet is provision of Transaction Security Services, i.e. assuredness for both buyer and seller of their transaction. AgriNet links value chain players to markets, finance and information. Services provided by AgriNet to businesses include: Sourcing of quality produce Market intelligence (who is buying/selling what) Reliable and current commodity prices Agricultural inputs prices Execution of forward farming contracts AgriNet s Transaction Security Service guarantees sellers and buyers that their transactions are: at agreed times & locations; with agreed volumes & qualities; on agreed payment terms & conditions; with track ability; and with traceability of produce and payments. With its head office in Kampala, and a sub regional office in Tororo, Uganda, AgriNet operates through a network of rural entrepreneurs running Market Access Businesses and Information Boards throughout Uganda. Currently, AgriNet operations cover: South and Western region (Kabale, Bushenyi, Ibanda, Hoima and Mbarara), Eastern region (Tororo, Busia, Soroti, Kumi), Northern region (Gulu, Lira, Apac, Amuru, Dokolo), Central region (Kampala, Mpigi, Mityana, Wakiso, Masaka, Mukono, Rakai). A Regional Manager directs business in each region. The coverage is still expanding gradually. June 2009

2 A word from the Managing Director Events Key events held recently: Editor s Desk I take pleasure to welcome you to this first maiden issue of AgriNet Newsletter. Our vision for this newsletter is to transform AgriNet network members through information exchange. As AgriNet U Ltd transforms the scale, focus and partnerships in market intelligence and transaction security services, we intend to have this newsletter regularly addressing practical issues in the area of markets and rural development As I reflect on the articles in this first issue, I realize the need to appreciate our business partners and esteemed clients and all those who have encouraged and mentored us to come this far. We should have had no newsletter should you have folded your hands and brains so to speak. Undoubtedly, your support and guidance shall benefit many. Finally, allow me to invite your critical eyes and minds to read through all the articles herein. And to the AgriNet IBM and MAC network members, I urge you all to contribute regularly to our future issues. Soya bean forward contract seasonal review and planning meeting in Kyangwali and Businsi, Hoima AgriNet Launches Mobile Money/ZAP with IBM Assistant FAOR visits soya bean contract farmers in Hoima. Bi-monthly RMs meeting Market intelligence training AgriNet registers as a depositor Uganda Commodity Exchange for warehouse receipt system commodity trading With marketing regards, Paul Nyende Managing Director, AgriNet U Ltd Mobile: pnyende@agrinetug.net P STORIES 2

3 PROGRESS WITH SOYA BEAN CONTRACT FARMING Grace Ntume, Regional Manager, Hoima During the months of July and August, farmers in Hoima growing soya beans are busy harvesting, drying, threshing and sorting. They are positive to hold cash very soon. The process of sorting to ensure quality control is new among many farmers and honestly I admit this has not been an easy task to convince them to do so. We came up with the idea of them having the best grade soya beans separated from the low grade by offering UGX 700 for high grade and half price (UGX 350) for the low grade. This has led to tremendous positive response from the farmers in ensuring quality. A family from Tukonyerangane Organic Farmers Association threshing soya beans. Agaba Richard of Kyangwali displays his well sorted soya. The main challenge currently is that the fields where planted at different intervals, thus maturity periods varied. This has resulted in a scenario where some farmers have soya beans ready for collection and others have soya beans still in the fields. This has led to transport and storage implications. Through the MAC we got 6,000,0000 UG shillings to pay the farmers and the challenge we are having is that we have no mobile money services in areas where farmers are and therefore we are transporting money using both public means or Matatu and motor cycles. However, in the RM s monthly meeting held 10 th Aug 2009, AgriNet decided to register with ZAIN and MTN for mobile money service. AgriNet will then be the agent, who will make various IBMs and MACs sub-agents. In this way IBMs will deliver mobile money services to their communities. DEAL OR NO DEAL: The challenge of brokering deals Sunflower Deal with Kenya, by John Peter Opio: On sunflower AgriTrade expressed interest to buy 5 MT per week but set a price at for delivering at the at border point in Malaba Uganda similar to one Mukwano offers in the villages in northern Uganda. This therefore meant no deal for AgriNet. There are other dealers buying the sunflower at a higher price than that offered by Mukwano. The sunflower production is not high thus there is more demand by numerous buyers as the area faced a serious dry spell. So AgriTrade had rather to renegotiate the price with the major recipient or get nothing at all. It is also worth noting that the gross margin for sunflower is negative, so uncompetitive prices even worsen the situation. So we await the conclusion on sunflower deal with Kenya. 3

4 Moringa Deal with a Kenyan Buyer, by Eva Luwerekera: The Moringa deal is not done yet, but the sample passed the testing and discussions on terms are going on to see to it that the deal goes through. The client is offering 600dollars per mt, but the dollar rate in Uganda has dropped slightly so we are discussing the way forward. The Black beans deal was put on hold due to lack of a supplier, but our buyer says he is still interested in buying if we get the beans. BOSCO ELTON NAMARA, New Regional Manager, Masaka- Rakai As a strategy to grow the network, AgriNet has recruited a new RM for Masaka and Rakai districts located in the Central region of Uganda. This region is known for its high agricultural potential producing mainly coffee, banana and fruits and vegetables. Bosco Namara has been a MAC working formerly under Max Olupot as his Regional Manager. Bosco is resident in the region, he vast experience in agricultural extension, but is currently a businessman based in Masaka town. JACKIE LUBEGA, New Database Manager I am a female Ugandan, I hold a Master of Science Degree in Information Science from Makerere University (2006) and a Bachelors Degree in Librarianship and Information Science from Makerere University (2000). Before joining AgriNet, I worked with Monitor Publications Ltd as an Assistant Editor/Proof Reader from February 2000 to February Before then, I also worked at the Radio and Satellite Communication Services as an Information Officer from June 2004 to October 2004 then returned to school to pursue my masters. Earlier on, I worked with Uganda Manufacturer s Association as an Information Officer from February 2005 to December I am honoured and privileged to be appointed as Database Manager for AgriNet. Looking at my past working experience I had been doing mostly information and communication work. But with this appointment it gives me an opportunity to widen my scope and career even more. And that the kind of data I am handling is Agricultural makes it even more interesting. Doing this job has made me realise that not being an agriculturalist by profession you take certain things for granted like commodity prices, but now I understand that for example changes in market prices vary because of several circumstances like the season, weather changes (which is common lately) and the easy access to these commodities. So I must say this job is interesting and I have a lot to learn and appreciate about agriculture. 4

5 MOVING FORWARD ON SMS BULLETIN SALES, BY PAUL NYENDE: The core business of AgriNet is provision of transaction security services, i.e assuredness for both buyer and seller of their transaction. AgriNet links value chain players to markets, finance and information. In all these services provided by AgriNet, information sharing is key. Thus AgriNet is also in the business of selling market intelligence which includes daily market prices of various commodities across the country and trade alerts to notify both buyers and sellers of available trade opportunities. Cost structure of AgriNet Services, August 2009 Type of service Service Description Price per month Terms & Conditions Agricultural UGX 9,000 Commodity Prices GENERAL SMS PRICE BULLETIN: Daily Market Prices of 3-5 commodities, sent on your mobile pone Monday to Friday every week CUSTOMIZED SMS PRICE BULLETIN: Daily Market Prices of 2-3 SPECIFIC commodities (of your choice) sent on your mobile phone 3-5 times a every week UGX 15, Monthly subscriptions 2. Advance payment 3. Monthly subscriptions 4. Advance payment Trade Alerts GENERAL ALERTS: Notification of opportunities to buy or sell SPECIFIC ALERTS: Notification of opportunities to buy or sell specific commodities of one s choice UGX 15,000 Broadcasted when and as they arise Monthly subscriptions Advance payment Alerts can arise from buyer or seller or AgriNet network Special Adverts Charged per SMS Special Adverts within AgriNet network of IBMs and UGX 300 Special Adverts within and outside AgriNet network Periodic Alerts Alerts on informative Agricultural events at the time of Charged per SMS Content as per occurrence. These may include disease outbreaks, UGX 300 customer specification forecast, new varieties on market, etc. This information is Disclaimer on content disseminated for and on behalf of the client 1 Agro- input inquiries Inquiries of commodity prices, information on new products, advice on usage Negotiable Product marketing Using AgriNet network to market or sell a product 5-10 % commission Forward agreement or contract of deal AgriNet Business Newsletter is a monthly publication of the AgriNet U Ltd. It shares business experiences by the AgriNet network members and business partners. Potential clients will find useful insights from the stories that are case studies of services offered by the company. AgriNet can be reached on Plot 209 Upper Mawanda Road, Old Mulago Hill, Postal address 22130, Kampala, Tel/Fax , Mobile , admin@agrinetug.net 5