TruTrade is now directly linking smallholder farmers’ to consumers in towns and cities. We are particularly focused on meeting the needs of less-well-off clients who want to buy small amounts on a regular basis, they care about food safety and quality and need produce at an affordable price.
The advantage of the Base Of Pyramid (BOP) market is that it can provide TruTrade’s franchisees, with a year-round regular outlet. As Jacinta from AgriNet explains, "small-scale vendors pay on the day of delivery, unlike large-scale buyers or institutions, and this helps us to turn round our trade finance quickly."
In April, TruTrade decided to test a range of products on the BOP market, including: maize flour, high quality cassava flour (HQCF), beans, millet flour, simsim paste and sunflower oil. TruTrade has packaged these products and supplied them to stallholders in Kansanga, Makindye, Mbuya, Makerere, Mengo and Ntinda.
In 2015, our first year of operations, TruTrade provided a market for about 750MT of produce, worth just over US$280,000. This was sourced from over 2,150 farmers who together received close to US$210,000, getting on average 16% more than they would have from their traditional markets. Find out more in our 2015 Annual Review.
TruTrade was showcased at IBM Connect 2016 event held in Orlando, Florida, USA between 29th January and 4th February 2016. Our chair Clive Lightfoot and franchisee James Weru explained how TruTrade’s software uses IBM collaboration and cloud technologies to facilitate learning between value chain players and to provide transparent and secure transaction services.
TruTrade is now doing its first deals. In Uganda one of the founding franchisees’ AgriNet Ltd is sourcing sorghum and barley from small-scale producers to supply East African Breweries (EABL) in Kampala.
Our Transaction Security Services (TSS) provides a transparent and secure way to link farmers who grow sorghum with the buyer. But how does this work in practice? I was in Lira, in northern Uganda where AgriNet are bulking sorghum and saw TSS in action.