The Eastern Africa Grain Council (EAGC) has launched farmer-owned and operated “Grain Trade Business Hubs,” aimed at addressing the challenges faced by smallholder farmers.
Speaking at an agribusiness exhibition, Gerald Makau Masila, the EAGC’s CEO, said that the G-Hubs’ core mission is to empower farmers through collective action. He explained the hubs will provide essential resources, including streamlined access to markets via the Gsoko platform.
The announcement occurred at an annual agribusiness expo hosted by the National Crops Resources Research Institute (NaCRRI). The event, a partnership between the National Agricultural Research Organisation (NARO), the EAGC, and DANIDA Green Business Partnerships (DGBP), focused on sustainable food systems, climate-smart agriculture trade, and economic development in Uganda.
Masila emphasized that a key function of the G-Hubs is to facilitate collective action. By uniting farmer cooperatives, the hubs will enable resource pooling, significantly increasing farmers’ bargaining power and operational efficiency.
Improved access to essential inputs is another crucial benefit, Masila noted. Through the hubs’ consolidated purchasing power, farmers can access higher-quality inputs at lower costs.
The CEO also highlighted the vital role of G-Hubs in post-harvest management, providing access to proper storage and quality control measures to minimize losses and preserve grain quality.
A central function is enhancing market access, significantly through the EAGC’s Gsoko platform. Masila said that the EAGC will actively work to connect farmers with premium markets regionally and internationally via these hubs and the Gsoko platform. By aggregating produce, G-Hubs can offer larger, consistent volumes attractive to buyers. The Gsoko platform will further streamline this process, providing a direct link between farmers and buyers. Grain stored in the G-Hubs will be listed on this platform, a weekly trade catalog for EAGC members. Potential buyers can view commodities and submit inquiries, with the EAGC trade desk connecting farmer-producers (via G-Hubs) with buyers.
To support sustainable practices, G-Hubs will offer technical support, providing advisory services on improved farming techniques. Masila stressed that this knowledge transfer is essential for long-term agricultural development.
In addition to these services, the G-Hubs will work to improve farmers’ access to financial services, including connections with credit institutions and output markets.
Masila underscored the EAGC’s pivotal role in supporting the G-Hubs’ development and operation, including capacity building and providing market intelligence via its Regional Agricultural Trade Intelligence Network (RATIN).
The EAGC will also engage in policy advocacy and foster strategic partnerships to further strengthen the hubs and enhance the grain value chain’s efficiency.
The G-Hub concept addresses challenges like high input costs and limited market access. By organizing farmers and leveraging the Gsoko platform, the EAGC aims to facilitate collective action and improve market linkages.
Regarding post-harvest handling, G-Hubs will provide central aggregation and storage facilities. Trained experts will ensure quality and food safety.
The Gsoko platform will be the crucial link to the market, facilitating contract negotiation and secure transactions, often managed through an EAGC settlement account. Masila noted this system has already facilitated significant regional grain trade.
Minister for Agriculture, Animal Industry and Fisheries Frank Tumwebaze emphasized the government’s commitment to supporting agricultural research institutions.
Dr. Sadik Kassim, deputy director of NARO, highlighted the organization’s mission to build resilience in the agricultural sector.
