Sunday, July 6, 2025
Home Change Makers Co-operative Model Helps Farmers Beat Middlemen

Co-operative Model Helps Farmers Beat Middlemen

by Patrick Okino
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For the tenth year running, Vision Group, together with the Embassy of the Netherlands, KLM Airlines, dfcu Bank and Koudijs Animal Nutrition, is running the Best Farmers Competition. The 2025 competition runs from April to November, with the awards in December. Every week, Vision Group platforms will publish profi les of the farmers. Winners will walk away with sh150m and a fully paid-for trip to the Netherlands.

When you speak of Alito Joint Multipurpose Cooperative in Lango, nearly everyone can identify Kole district — the co-operative’s home— thanks to its strong reputation among farmers for quality seeds and farm produce.

Founded in 1998 in Awilo village, Lwala parish, Okwerodot sub[1]county, Kole district, the cooperative began with just five members (two men and three women). Today, it has grown to 16,815 members across Northern Uganda and employs 16 staff.

Main enterprise and growth

Alito’s primary enterprise is soybean production. According to the chairperson, the Rev. John Christopher Okwang, the cooperative currently harvests over 200 tonnes of soybeans annually, generating approximately sh500m in revenue.

At its inception, Alito harvested about 1,000kg of grain, which was bulked and sold to the Uganda Oilseed Producers Association (UOSPA). Their innovative approach soon attracted more farmers in Kole and nearby districts.

 To scale up, the cooperative began seed multiplication for sunflower and beans, which UOSPA later distributed to farmers. In 2004, UOSPA trained local farmers in group dynamics — joint farming, bulking and marketing — which increased membership from five to 58 by the year’s second season.

That same year, Mukwano Industries established an oil mill in Lira, boosting Alito’s sunflower production efforts by providing agronomy training, post-harvest handling support and a ready market for grains.

Partnerships and expansion

As production expanded, Alito won a competition funded by the Food and Agriculture Organisation (FAO) to promote oilseed production. The cooperative was awarded a sunflower milling machine, further boosting membership.

Okwang with a tractor at Alito Joint Cooperative offices. (Photos by Patrick Okino)

In 2009, support from USAID enabled construction of a 120-metric-tonne storage facility, as well as the donation of a motorcycle and computer for data collection. Additional partners also helped build another store that year to accommodate rising membership and production.

In 2013, the cooperative joined a training programme with International Seed Development, which focused on seed production across 10 cooperatives in northern Uganda. IMPACT ON FARMERS Alito sources seed from Makerere University and sells it at a modest profit.

The cooperative has recruited six agricultural extension officers to train farmers and gather their input.

“Our extension officers mobilize farmers, increasing both the quantity and quality of produce,” Okwang said.

According to Emmanuel Obedigum, the co-operative’s monitoring and evaluation officer, each farmer buys soybean seed at sh8,000 per kg (typically purchasing 20kg for an acre).

Each acre yields between 700kg and 1,000kg, which the cooperative buys at sh3,000 per kg — a fixed price that shields farmers from market fluctuations. This guarantees farmers earnings between sh2.1m and sh3m per acre per season.

Shift from sunflower

Although sunflower was once a key crop, production has declined due to a breakdown in the milling machine. The cooperative has shifted focus to soybean, currently selling grain at sh6,000 per kg to farmers, NGOs and government entities. While not formally involved in cross-border trade, Alito has sold to buyers from Kenya, Rwanda and Tanzania.

Earlier this year, Kenyan buyers purchased 200kg and Rwandans bought 500kg. Farmers from Malawi and Somalia have also visited to learn from Alito’s seed business practices.

Financial services

Members can access production loans at 3% monthly interest. These loans support planting, weeding, and help farmers delay sales until market prices improve. Loans are repaid upon selling to the cooperative.

Alito also emphasises post-harvest handling. Farmers receive training in quality assurance to ensure clean seed. Committees for production and quality assurance conduct field assessments and inspections.

Learning hub

The cooperative has expanded into small-scale livestock and aquaculture, including goats, cattle, pigs, sheep, bee[1]keeping and fish farming. This provides hands-on training for university students. Students from Makerere and Busitema, All Saints, and Uganda Christian universities have participated, with Kyambogo and Gulu universities expected soon.

Obedigum at another big store at Alito Joint cooperative.

Training includes demonstration gardens, crop management, storage, animal care and fieldwork.

Makerere University student Brian Ponja noted: “We are learning real-world challenges farmers face, from planting to marketing.”

Storage facilities

Alito has three central stores with a combined capacity of 200 metric tonnes (80, 60 and 60 tonnes each) and 16 satellite stores serving 309 farmer groups in Lango, Acholi and Karamoja.

However, increased production and delayed sales have strained storage, prompting reliance on satellite stores.

Protecting farmers

Okwang said middlemen often exploit farmers needing quick cash. Alito counters this by offering soft loans, allowing farmers to sell later at better prices.

Member Molly Akullo, a widow, said joining the cooperative transformed her farming and helped her afford school fees. She now harvests up to 1,000kg annually, up from less than 500 kg.

Another pioneer member, Esther Apwot, specialises in soybean seed multiplication.

 “This season, I harvested 2,000kg ready to sell at sh3,000 per kg,” she said.

Simon Mua of Atara in Lira also praised Alito’s guaranteed market through pre-arranged contracts.

Security and best practices

The cooperative employs two security guards after past theft attempts. Best practices include training farmers in seed selection, agronomy, post-harvest handling, marketing and gender-based violence prevention. Alito also links farmers to services, such as machinery, credit and other agricultural opportunities.

VISION FOR 20,000 MEMBERS

Alito aims to grow its membership to 20,000 within two years. Group leaders are actively mobilising communities to join.

“My message to farmers is simple: join a cooperative,” Okwang said.

“Not just Alito — there are many cooperatives improving lives across the country.”

Development partners and the Government now recognize cooperatives as an effective vehicle for agricultural transformation and rural development.

Value addition

Emmanuel Obedigum, the co-operative’s monitoring and evaluation officer, stressed the need for value addition.

“Selling raw grain doesn’t bring in the income we deserve,” he said.

Plans include processing soybean into oil or other products for better market prices. They also promote mechanisation, charging sh80,000–sh90,000 per acre for tractor use.

Threshers are charged at sh10,000 per bag. Farmers are encouraged to thresh in the field to retain residues that improve soil fertility. To reduce aflatoxin contamination, the cooperative promotes using tarpaulins instead of threshing on bare ground.

Challenges

Despite its success, Alito faces staffing shortages, limited finances, inadequate mechanisation, climate change, and reliance on selling raw produce. Obedigum said they encourage bulk marketing while sourcing funds to purchase produce.

“But some farmers aren’t patient,” he admitted.

The cooperative needs 20 staff to effectively serve its 16,815 members and more tractors — currently they have only one.

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