Lınkıng Smallholder Farmers toAgrıcultural Market at the 4th COMCEC 

AWG Meetıng

By DrMukama Charles

Ministry of Agriculture, Animal Industry and Fisheries

Importance of Markets/exports

Employment. Growth in exports can create employment. 

Economic growth. Exports are a component of aggregate demand (AD). Rising exports will help increase AD and cause higher economic growth. Growth in exports can also have a knock on effect to related ‘service industries’. 

Current account deficit. The strength of exports has a large role in determining the current account deficit. 

Agriculture in Export Market

Traditional exports ‐ 25.1% Coffee  15.8 Cotton 3.2 Tea 3.1 Tobacco 3.0

Non Traditional Exports ‐ 74.9%  (Includes other Agric Pdts)

UBOS Statistical Abstract 2013

GDP Youth Labour

Agriculture 23.1 63

Industry 26.9 8

Services 50.0 29

 

Agricultural Exports 12/13Commodities 2012/13

No UG USD 1 Coffee 1,132,456,977,894 435,560,3762 Fish 44,509,303,330 17,118,9633 Tea 222,107,136,304 85,425,8224 Cotton 102,882,985,282 39,570,3795 Tobacco 182,114,439,450 70,044,0156 Cocoa 127,088,179,981 48,880,0697 Wheat 225,998,382,844 86,922,4558 Fats and oils 57,755,091,703 22,213,4979 maize 149,900,013,998 57,653,852

10 skins and Hides 49,540,835,031 19,054,16711 S/cane & products 43,179,487,074 16,607,49512 Sesame seeds 65,973,606,458 25,374,46413 Beans 40,967,158,043 15,756,59914 Oranges, dried & juice 21,783,397,199 8,378,23016 live animals 5,523,242,282 2,124,32417 meat 6,861,692,671 2,639,11318 manioc (cassava) 1,655,045,541 636,55619 bananas 589,344,346 226,67120 Groundnuts 934,889,849 359,57321 poultry 616,518,280 237,12222 millet 515,240,605 198,16923 diary 14,061,411 5,408

Grand Total 2,482,967,029,576 954,987,319 

Market Structure for EAEastern Africa

Traditional exports to non-Africa (%) 10

Non-traditional exports to non-Africa (%) 6

Other exports to non-Africa (%) 2

Intra-African trade (%) 2

Domestic markets for food staples (%) 80

Total market value (billions of US$) 22.0

Market opportunıtıes for Ugandan farmers Uganda is a member to bigger markets for which access is duty and quota free e.g. EAC (over 125m  people in 5 countries), COMESA (over 400m people in 19 countries), EU, AGOA, and other emerging markets in Middle East, China, Japan, etc.

Uganda is land locked,  Uganda has a capacity to produce a variety of agricultural products for international market eg food crops, horticulture, timber etc

Over 90% of Agricultural exports are raw – room for industry, 40% of the industrial inputs are agricultural products, Government has put in place and maintained sound macro economic framework conducive for investment e.g. liberalization, privatization, excellent incentive regimes, abolition of export taxes, etc.

Investment Opportunities High potential of producing cheap hydro electricity from several parts of the country to provide rural electrification. 

Unique products e.g. meat from the Ankole cattle, Arabica coffee, a host of many organically products e.g. fruits and vegetables.

Promotion of Public‐ Private sector partnerships. Fully liberalised economy and conducive political climate. Strong agriculture research system e.g. the  Rice centre of excellence at Namulonge.

Agrıcultural support servıces eg ın packagıng, cold chaın, ınputs manufacturıng etc

Lınkıng farmers to Market/ExportsModernization:

Transformation, upgrading, innovation, rejuvenation

From subsistence to commercial ‐ AgriBusiness Supply/Demand driven Productivity/Profit driven

SUPPLY InternationalDemandExports

Modernization

P

Agribusiness developmentUNIDO (2011) identifies seven pillars of agribusiness and agro‐industry development in Africa:

Enhancing Agricultural Productivity            research, tech, reduce dieases,  soils, irrigation

Upgrading value chains            Seed to customer, Exploiting local, regional, and international demand, Strengthening technological effort and innovation‐ uptake Promoting effective and innovative financing, Stimulating private participation, and Improving infrastructure and energy access.

Major Challenges to Markets Road ınfrastructure Energy – (avaılabılıty and cost) for value addıtıon Productıvıty constraınts that humper competetıveness and sustaınabılıty‐ tech, land tenure systems etc,

Qualıty and standards‐ affects c/border movt of products, Instıtutıonal capacıty and framework constraınts, Economıc polıcy envıronment‐that could favor ımport from developed economıes‐ need for affırmatıve actıon for smallholder farmers,

Entrepreneurshıp skılls and attıtudes, Low ınvestment ın auxıllary servıces‐ cold chaın, packagıng, warehouse receıcept systems,

Low ınstıtutıonal partnershıps

Export ISSUES

Export Issues Cont’d

What is MAAIF Doing?5 year DSIPDevelopment StrategyThematic Programmes Enhancing agricultural productivity and production Improving market access and value addition Creating an enabling environment for investment in agriculture

Institutional strengthening in the sector Implementation Approach Agricultural Technology & Agribusiness Advisory Services (ATAAS) 

Non‐ ATAAS – Commodity value chain development

Agricultural production is by many scattered small‐scale farmers – so there is support to form groups for collective production, marketing & access to services – SACCOs and Cooperatıves‐ challenges ın governance and fınancıng ın vıew of the lıberalızatıon polıcıes,

PPP is beıng encouraged to promote investment, Contract & out‐growers’ schemes exist eg  Kibimba Rice Scheme, BIDCO for edıble oıl, Jesa Dairy Farm, Germany Herbal Project in Bushenyi, Sugar factories etc, 

However, challenges exist in management of Farmer Organızatıons, outgrowers and contracts

Export Expansion ImplementationInstıtutıonal lınkages:

Foreign Affairs

MTIC

MAAIF Services

EXPORT

ACTION IMPLIMENTATION

PoliticianTechnician

Econ

omist

Institu

tion

P/Sector

FORWARD

Lawyer

Way Forward

THANK YOU