The weakening of the Uganda shilling against the US dollar cannot be good for Uganda’s agriculture. This is because most of the inputs that are used throughout Uganda’s agricultural value chains are imported. This means that whatever gains that farmers make in an increase in farm-gate prices are eroded when the farmers need to purchase the necessary inputs for their businesses. So, in effect it is flawed to surmise that:
“Onzivua (not real name), a honey processor from West Nile, whose inputs are all locally acquired, has not experienced a big change in costs of production. His interaction with the dollar is minimal.” http://www.monitor.co.ug/Magazines/Farming/Dollar-rise-is-good-for-Uganda-s-agriculture-/-/689860/2854396/-/item/0/-/10ipjkg/-/index.html
If Onzivua wants to export his honey he will most likely need to use glass or plastic containers which are either imported into Uganda or are made in Uganda with imported inputs. That is one of the reason why imported honey, coffee, rice, juice, etc., and more over of less quality dominate Uganda supermarket shelves. why, because often farmers such as Onzivua are unable to compete when it comes to packaging, for example.
Excellent packaging processes often require reliable access to electricity, which many farmers in Uganda do not have access to. Then there is the cost of transport from farm to urban centers of Uganda for consumption by Uganda’s elite urban dwellers and/or for onward export. The vehicles which form Uganda’s transportation are all imported. The fuel they run on is imported. The spare parts to repair them are imported. Even bicycles or bicycle parts are imported.
The value of farm-gate price gains is further eroded when farmers have to purchase other goods and services that are heavily dependent on imports, for example health care services. As the Uganda shilling value of agricultural produce increases so does the Uganda shilling value of imported medications increase.