Uganda Warehouse Receipt System
Bill Passed - April 2006
The WRS Project team in Uganda witnessed the passing
of the Warehouse Receipts System Bill by the Parliament on the 5th
of April 2006. This means that the WRS is now fully recognised in
law in Uganda, allowing a Warehouse Receipt to be recognised as
a document of title. Further, the passing of the WRS ensures the
establishment of a framework for regulating warehouses and warehouse
operators who can issue authorised Warehouse Receipts.
Cotton WRS Pilot a Success in
Uganda - February 2006
Despite a slow start and limited farmer mobilisation
and sensitisation events under the Cotton WRS Project pilot in Uganda,
nearly 100,000kg of seed cotton was deposited by farmers from Kasese
and Bushenyi in warehouses owned by Nyakatonzi Cooperative Union
in February 2006. The Cooperative Union provided toll ginning services
to the depositors. The farmer groups retained full control of their
cotton and were able to sell the lint equivalent and cotton seed
as separate commodities. The success is anticipated to be repeated
in the 2006/07 marketing season as more farmers show appreciation
for the WRS.
Farmers able to get instant
market price over Mobile Phone SMS - February 2006
The CFC WRS Project and UCDA have developed a MIS
which uses mobile phone networks to disseminate coffee prices on
the touch of a button. Farmers anywhere in Uganda can access coffee
prices from international markets, translated into USD/Kg and also
national prices at five different locations (in Uganda Shillings).
The system, provided by True African Ltd, is self-financing and
sustainable, with True African Ltd and UCDA sharing income generated
through use of the service. UCDA’s share of the money will
be channelled into ensuring delivery of high quality, timely market
information to farmers, traders and exporters.
Persistent Rains Slow WRS Pilot
in Eastern Uganda - November 2005
The WRS Pilot Project encountered slow progress
in the arabica-growing regions of Eastern Uganda (Mbale, Sironko,
Manafa & Kapchorwa). The WRS Project had forecasted deposits
reaching 100MT of parchment coffee in the first pilot, but only
35MT of was received under the system. The main impediments were
two-fold -persistent wet weather which hampered coffee harvests
and drying, and the stiff competition encountered with local traders.
A more aggressive campaign is planned for the next coffee harvest
season.
Uganda receives first deposits
under WRS - July 2005
The Western Region of Uganda recorded the first
coffee deposits under the WRS Project Pilot, with a total of 25MT
of Robusta FAQ. Nearly 18MT of this was sold through auction at
the Uganda Commodity Exchange (UCE). Some of the coffee traded through
the auction realised premium prices of UGX50-250/kg above the on-the-day
prevailing market prices both in Kampala and the rural West. One
of the groups which sold coffee through auction at UCE was the Ruhinda
Area Coop Farmer Group. The group deposited a total of 4.92MT of
premium grade FAQ. The coffee was warehoused at Kakoba in Mbarara
and was of the following grade:
Outturn:
96% (Grade 10.10)
Moisture Content:
12.3
Foreign Matter:
0.25
Defectives:
4
Kiboko:
0.75
Black Beans:
0.5
Screen 18:
10.5
Screen 15:
64.5
Screen 12:
21.5
The FAQ was sold in July 2005 through auction at
the Uganda Commodity Exchange. The coffee was eventually sold to
a major coffee exporter for UGX1,950/kg. The UCDA indicative price
for that day ranged between UGX1,800/kg and UGX1,900/kg while prevailing
price for coffee purchased ex-Mbarara was also UGX1,850/kg.
Tanzania Warehouse Receipt Act
Passed - June 2005
The Tanzania Warehouse Act No. 10, which was promoted
under the CFC funded project and passed by Parliament on 20th April
2005, has been given Presidential assent in June 2005. For a copy
of the Warehouse Act click
here. Developments are underway to make the Law operational.
This includes developing operational manuals and setting up a Regulatory
Board.
Cotton WRS Pilot Progresses
in Tanzania - June 2006
Since the Cotton WRS pilot begun in Tanzania in
2001/2002, the major depositor has been one farmer cooperative,
the Oridoyi Rural Cooperative Society, which recorded the following
deliveries of seed cotton:
Season
Seed Cotton Deposited under
WRS (kg)
2002/03
103,273
2003/04
229,470
2004/05
826,000
2005/06
1,200,000
Despite ginning with dilapidated gin stands, which
caused many delays, the group remained committed to the WRS. Following
consultations by the Project Team, the Ministry of Cooperative and
Marketing (MCM) provided funds for procuring four new ginning stands
which were installed in October 2005. As a result ginning efficiency
has improved dramatically, reducing ginning time to 3 months from
12 months.
The group is expected to make substantial savings
in terms of loan servicing cost. The quality of the lint has also
improved. The group was able to market their lint directly to a
UK-based merchant, with transaction assistance from a locally-based
broker. The group receives inventory finance from CRDB.
For more details on the Oridoyi Primary Society click here http://www.wrs-tz.org/
Coffee Farmers Accessing Millions
of TZS from Bank Finance under the WRS - June 2006
There are over 50 coffee farmer groups using the
Warehouse Receipt Systems. Since 2002, the amount of coffee parchment
deposited under the WRS has been increasing. The table below shows
quantities of parchment coffee deposited by these groups as well
as funds provided against deposits by CRDB Bank, Exim Bank and Kilimanjaro
Cooperative Bank Ltd.