By Aine Dixon
Cooperative societies play a pivotal role in Uganda’s agricultural sector, addressing challenges and creating opportunities for millions of farmers.
Among these is the Mt Rwenzori Snows Youth Coffee Farmers’ Cooperative Society Limited, under the leadership of its Chief Executive Officer, Alfred Masereka. This cooperative helps farmers access markets, adopt sustainable practices, and improve their livelihoods. Through innovation and community-based solutions, cooperatives contribute significantly to poverty alleviation, food security, and economic development.
Their role
Cooperatives are critical to Uganda’s agricultural economy, driving growth in the Gross Domestic Product (GDP) and enhancing the quality of life for rural households. By fostering market access, collective bargaining power, environmental sustainability, and employment opportunities, cooperatives equip farmers with the tools and resources necessary to thrive.
The Mt Rwenzori Snows Youth Coffee Farmers’ Cooperative Society, based in Kyarumba Town Council, Kasese District, exemplifies how cooperatives transform agriculture. The cooperative leverages its natural resources to promote sustainable farming practices. With 1,576 registered members, it has adopted digital technology through the Community Pass Digital Platform. Biometric cards for record-keeping enhance transparency and efficiency, a forward-thinking approach that earned the cooperative recognition at the 2023 Pass Community Summit.
Masereka says digital innovation is not just a tool for modernising agriculture but a necessity for empowering our farmers and ensuring their livelihoods are secure.
Structure of cooperatives in Uganda
Uganda’s cooperatives operate under a three-tier structure:
Primary cooperative societies at the grassroots level which directly engage with farmers, secondary cooperative societies (unions or area cooperative enterprises) representing groups of primary societies, and tertiary cooperative societies which are national umbrella organisations such as the Uganda Cooperative Alliance and the National Alliance of Agricultural Cooperatives in Uganda (NAAC).
These cooperatives follow the Cooperative Societies Act, with Annual General Meetings (AGMs) serving as the highest decision-making bodies. Boards of Directors elected at AGMs oversee management teams responsible for daily operations, guided by principles like democratic governance and member education.
Benefits of cooperatives for farmers
Cooperatives like Mt Rwenzori Snows Youth Coffee Farmers’ Cooperative enable farmers to overcome market challenges through collective bulking. This allows farmers to negotiate better prices with buyers and bypass exploitative middlemen. Contracts with national and international buyers provide stable markets, often with premium payments for certified products such as Fairtrade or organic coffee.
Farmers benefit from affordable loans, savings schemes, and inputs on credit. Partnerships with commercial banks and social lenders offer essential financial support for investing in farming operations.
Training sessions and workshops are key to cooperatives’ support for farmers. Mt Rwenzori Snows Youth Coffee Farmers’ Cooperative has trained 613 youth, women, and men in income-generating skills such as poultry farming, sandal-making, and entrepreneurship. These initiatives diversify income sources and equip members with sustainable business management skills.
Cooperatives enhance productivity by encouraging sustainable farming practices. Initiatives such as soil conservation, bamboo planting along riverbanks, and rainwater harvesting mitigate climate change effects while improving yields.
Innovative technologies, such as solar irrigation systems and digital trackers for farm management, ensure consistent production even during unfavourable weather conditions. For instance, Mt Rwenzori Cooperative’s adoption of these innovations underscores its commitment to modern agriculture.
Challenges
Many cooperatives are led by aging leaders lacking technical expertise in governance, resource mobilisation, and financial management.
Most cooperatives rely solely on members’ share capital, with limited external support from the government or development partners.
Side-selling by disloyal members undermines collective bargaining power and financial stability.
Overcoming challenges
Visionary leadership, such as that of Masereka, has enabled cooperatives to address these challenges through strategic partnerships and capacity building. External funding from donors, government programs, and international organisations supplements members’ share capital, enabling cooperatives to hire skilled staff and invest in infrastructure.
Cooperatives also collaborate with social lenders offering low-interest loans, ensuring financial stability and facilitating growth-oriented investments.
Impact on livelihoods
Cooperatives are transforming rural communities. Mt Rwenzori Cooperative has created jobs for 13 staff members and provided reliable markets for its members’ produce. This guarantees steady incomes, improving household living standards. Farmers now earn an average daily income of 10,000 UGX, thanks to diversified skills training and market access initiatives.
Other cooperatives, such as Bukonzo Organic Farmers Union and Kibinge Masaka Coffee Farmers’ Cooperative Union, similarly contribute to poverty reduction through value addition, job creation, and market expansion.
Driving food security, export growth
Cooperatives are integral to Uganda’s food security goals and agricultural export growth. By promoting value addition, branding, and certification of agricultural products, they enhance Uganda’s global market competitiveness. Climate-smart agriculture and ecosystem restoration further ensure sustainable food production.
As Masereka emphasises: “Cooperatives are not just about farming; they are about creating a sustainable future for communities. By working together, we can transform Uganda’s agricultural landscape.”
