Contract farming is a system in which a farmer enters into an agreement with a buyer, typically a company, to produce a specific crop or livestock under predetermined terms and conditions.
In recent years, this form of agriculture has gained significant popularity in many parts of the world, especially in developing countries such as Uganda, where small-scale farmers lack the necessary resources to produce crops and livestock on their own.
Contract farming has proven to be a beneficial alternative for such farmers and has improved the lives of many who did not have access to basic necessities like land to farm.
The NBSAgribusiness team travelled to Gomba to visit the YPA farm, which has mastered this
In the heart of a rural community called Kigayaaza in Ggomba district, nestled amongst rolling hills and lush greenery, lies a 12 square mile goat farm that is transforming lives.
This farm is not run by a seasoned farmer, but rather a young entrepreneur who saw an opportunity to make a difference in the community and the country as a whole through contractual farming.
The young farmer, Obedi Ben, started the goat farm just a few years ago with a small herd of goats. He quickly realised that there was a growing demand for goat beef and cheese in the country and around the globe and decided to take advantage of this market opportunity. However, as a young person with limited resources, he faced many challenges getting her business off the ground.
That's when Obedi Ben came up with the idea of contractual farming. Ben reached out to members of his community and the country who were interested in investing in the farm, offering them the opportunity to sign a contract to purchase a certain number of goats for 2.5 million as shares. In return, these investors would receive a portion of the profits from the farm and multiple goats at the end of the contract.
The response from those who had the money without enough resources like land, labour, and time was overwhelming, and soon Obedi Ben had a group of committed investors who were eager to support the business. With their help, he is able to expand his herd of goats and invest in better equipment and infrastructure for her farm.
Today, the Youth Platform Africa (YPA) goat farm is thriving. He has a herd of over 10,000 goats and produces only meat that is sold both locally, regionally, and globally. But what sets this farm apart is the impact it is having on the community, country, and Africa at large.
Thanks to Ben’s innovative business model, many local farmers and the middle class have been able to supplement their incomes by investing in the farm. This has provided a much-needed source of stability for families in the area, particularly during times of economic hardship.
Ben says contract farming provides a guaranteed market for farmers' produce, which is often lacking in traditional farming systems. With contract farming, the buyer agrees to purchase a specific number of animals from the farmer through shares, and this commitment gives farmers the confidence they need to invest in the farm without fear of not being able to sell their products.
Ben says he is targeting having 20 million goats to be able to supply the market, especially in the Middle East, where Uganda’s goat is more preferable. The innovators of this farm aim to start up an industry here to be able to add value to the goat’s products.
Uganda is one of the countries that have not done so by adding value to their produce. For example, goats here can cost 500,000 Uganda shillings, but when exported to countries like Italy, every part of the goat is added value, from the hides and skin to the leather, which makes very expensive shoes.
Ben hopes that Uganda will be able to balance trade in the future.
Besides this, Ben's farm has become a hub for education and training in the community. He regularly hosts workshops and seminars on topics such as goat farming, sustainable agriculture, and entrepreneurship. Through these initiatives, he is helping to empower others to pursue their own dreams and build a better future for themselves and their families.
As the team walked through this goat farm, we were struck by the sense of community that permeates every aspect of the business. The goats roam freely, grazing on the lush grasses and shrubs that dot the landscape. Local farmers and uptowners stop by to check on their investments, swapping stories and advice with one another. And Ben himself is always on hand, chatting with visitors and sharing his knowledge and experience with others.
In a world that often seems divided and uncertain, Ben's goat farm stands as a beacon of hope and possibility. Through his commitment to innovation, community building, and social impact, he is transforming lives and building a brighter future for all those around him.
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