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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:

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:

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.