From Inputs to Markets: How Agro Supply’s Factory Is Unlocking New Opportunities for Ugandan Smallholders

When I visited Agro Supply in Uganda in April 2024, I was eager to see firsthand this growing enterprise's impact on its smallholder farmers' community. Agro Supply's mission to empower smallholders with access to drought-resistant seeds and other high-quality inputs has always been compelling, but what struck me most was the depth of connection the team has built with their farmers. This relationship, grounded in trust and open communication, has become the foundation for solving even greater challenges, most notably, market access.

A Deep Relationship with Smallholders

During my visit, I was privileged to meet several Agro Supply Field Agents and farmers. Gathered under the shade of a tree, with translators bridging the gap between our languages, I listened to their candid perspectives on Agro Supply’s impact. One thing was clear: Agro Supply is more than a supplier to these farmers; it is a trusted partner. Farmers spoke about how access to drought-resistant seed varieties had transformed their yields, helping them withstand increasingly unpredictable weather patterns. Many pointed to the demo gardens as a source of inspiration, showcasing new seed varieties that gave them hope for better harvests.

These relationships go beyond just perception. Earlier in 2024, Catalyst Fund conducted an impact assessment on Agro Supply’s customers via 60 Decibels that revealed key insights:

👉 Agro Supply is positively impacting farmers’ quality of life and reducing their stress about meeting basic needs. Nearly 9 in 10 farmers say their quality of life has improved 👨‍🌾 and report increased production and earnings 📈.

👉 81% of farmers experienced climate shocks in their households; drought or severe lack of rain was the top shock reported.

👉 Agro Supply has played a role in aiding farmers’ recovery from shocks; 70% of farmers say Agro Supply positively contributed to their recovery 🌱🌽.

Data from Agro Supply’s savings layaway systems, analyzed by our venture builders, also confirms the qualitative interviews. Looking at various savings cohorts, we see progressive growth in average savings amounts per smallholder farmer, suggesting increasing trust and/or savings capacity.

Farmers didn’t stop at praising the improvements Agro Supply had brought; they were hungry for more—not just in terms of inputs but also in opportunities. While the improved seeds and training had laid a strong foundation, they expressed a pressing need for better market access. Without reliable buyers offering fair prices, their ability to reinvest and expand their farms remained limited. This feedback wasn’t just insightful; it was a call to action that Agro Supply is already answering.

Tackling Market Access

Recognizing that quality inputs are only part of the equation, Agro Supply has turned its attention to solving the market access challenge. The upcoming processing facility is a key piece of this puzzle. Situated strategically close to its network of smallholder farmers, the factory will not only process grains but also create a consistent, reliable market for their harvests. Farmers I spoke with shared their excitement about the prospect of selling their produce at fair prices and reinvesting their earnings into diversifying their operations. For some, this means expanding into animal husbandry, with feed from the factory providing a crucial resource.

This facility represents more than just infrastructure; it symbolizes a deeper commitment to the community. By bridging the gap between smallholders and larger markets, Agro Supply is empowering farmers to transition from subsistence to sustainable, profitable farming. The ripple effects of this transformation are vast, from improved household incomes to stronger rural economies.

Circular Benefits for Smallholders

The processing facility offers more than market access. Smallholders will benefit from affordable processed grains such as maize and sorghum for household consumption, along with access to valuable by-products like animal feeds. These by-products will support farmers looking to diversify into animal husbandry, creating additional income streams. The dual play strategy of providing both inputs and market access enables Agro Supply to acquire more farmers, creating a virtuous cycle. As the farmer base grows, the factory can expand its processing capacity, eventually tapping into larger export markets. This circular model strengthens Agro Supply’s position while delivering tangible, multifaceted benefits to smallholders.

Building Trust Through Shared Experiences

One of the highlights of my trip was spending time with the Agro Supply team. Their dedication and passion for uplifting their community were evident in every interaction. Whether touring the site for the new factory or enjoying a local Ugandan dish in a small restaurant in Lira, it was clear that this is a team deeply rooted in the region and committed to its people.

The photos from my visit tell the story: farmers gathered around demo gardens, curious and engaged; Field Agents sharing insights under the shade of a tree; and the team strategizing on how to scale their impact. Each image is a testament to the trust Agro Supply has built and the bright future it is helping to shape.

The Road Ahead

Agro Supply's journey is a powerful example of what can happen when a business truly listens to its community. By addressing both the input and market challenges, they are creating a comprehensive solution that enables smallholder farmers to thrive. This holistic approach is not only advancing agriculture in Uganda but also setting a benchmark for how businesses can drive meaningful change.

As Agro Supply continues to scale, its impact will only grow. The factory, the farmers, and the team are all part of a larger story—one of resilience, innovation, and the transformative power of partnership. For the smallholders of Uganda, the future looks brighter than ever.

UNIDO supports the Catalyst Fund via the “Acceleration of Financial Technology Enabled Climate Resilience Solutions” project funded by the Global Environment Facility and executed by BFA Global in collaboration with the implementing entity, UNIDO. Operating in five African countries—Kenya, Nigeria, Rwanda, South Africa, and Uganda—the project aims to foster the growth of fintech-enabled climate resilience solutions positively impacting the well-being of vulnerable communities.

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