Vanilla, which remains one of Uganda's high-value crops, is largely grown in 25 Districts of Uganda, mainly in Central, Eastern, and Western parts of the country. Photo / File
In the six years to December 2024, Uganda’s vanilla economy has demonstrated a return to the heydays of the 90s and early 2000s, when vanilla carried so much value for farmers and the economy as a whole.
Bank of Uganda data indicates that vanilla earnings had almost collapsed in the 2000s, dropping from $11.52m in 2003 to just $0.13m in 2013.
However, current data indicates a progressive comeback.
During the period, Bank of Uganda data shows, the value of vanilla exports has increased by 394.4 percent, demonstrating a triumphant return to the country’s menu of most valuable commodity exports.
Its impact on the export value chain has also increased, with its contribution to total export earnings rising from 0.13 percent in 2020 to 0.22 percent in 2024 – still small but with a promise of further growth.
During the six years, vanilla export earnings have risen from just $4.47m in 2019 to $17.63m in 2024, a 394.4 percent growth.
The growth, save for 2020, has been consistent throughout, rising from $4.47m in 2019 to $8.72m in 2021, before almost tripling to $21.55m in 2022.
However, in 2023, there was a slight reduction of $0.89m to $20.66m, before dropping further to $17.63m in December 2024. But even with the declines, there are signs that vanilla is likely to retain respectable earnings in the foreseeable future.
In terms of volumes, exports have in the last six years registered tremendous growth, increasing from 27,441 to 604,329 kilogrammes.
During the period, volumes have grown, apart from 2020 and 2021 when they dropped to 14,823 kilogrammes and 69,746 kilogrammes, respectively.
In 2022, exports rose to 189,180 kilogrammes, before increasing further to 266,650 kilogrammes in 2023. In 2024, they almost tripled, rising to 604,329 kilogrammes.
On Tuesday, Agriculture State Minister Fred Bwino Kyakulaga, said vanilla had become one of Uganda’s most promising high-value export crops, noting that the earnings in 2024 demonstrated renewed confidence in a sector betting on increased professionalism, regulation and strategic partnerships.
“Vanilla represents a golden opportunity for Uganda’s economic transformation. With continued collaboration, sound policy, and farmer commitment, Uganda can become a top global supplier of premium, traceable vanilla,” he said, before declaring the start of the vanilla harvest window for Season A, which runs from June 18 to September 18.
“Uganda is well positioned to become a leading global supplier of reliable, high-quality vanilla, especially as buyers seek alternatives to Madagascar’s volatile supply,” he added, indicating that Uganda had retained its position as the world’s second-largest vanilla producer, behind Madagascar, which exports 1,200 to 2,000 metric tonnes in a single season.
Vanilla is harvested biannually from June to August and December to January.
In the mid-90s, vanilla became the leading source of income for many households in Mukono, Buikwe, Mpigi, Luweero, Bundibugyo and Kasese, but some abandoned the crop due to fluctuating prices.
Despite the progress, Kyakulaga, however, acknowledged that the sector still faces several challenges, such as premature harvesting, poor post-harvest handling, theft, unauthorised processing, illicit trade, and inadequate crop management.
The bulk of Uganda’s vanilla exports are destined for US, France and Germany, according to the Ministry of Agriculture.
In June 2023, the Ministry of Agriculture said government was positioning Uganda as a strong contender and a dependable source of vanilla, but this would only be achieved by resolving the issue of quality.
Local vanilla prices have also remained volatile, with farmers previously asking government to intervene and stabilise the fluctuating price of the high-value export crop.
Whereas the high-value export attracts a high value of as high as $500 (Shs1.8m) per kilogramme of dried beans at the international market, in Uganda, a kilogramme of green beans at the farm-gate remains highly volatile, sometimes fetching as little as Shs20,000.
The vanilla value chain players have also previously asked government to speed up the formulation of a policy to streamline the sector.
In 2018, Chariton Namuwoza, a then-global marketing expert supporting the strengthening of the vanilla sector in Uganda, said that if the policy is formulated, it will address the quality of exported vanilla to the global market.
The policy would also help in the organisation of farmers into producer groups so that they can regulate themselves.
“There has to be a regulation to control middlemen ... and building the capacity of the producers to comply with the quality requirements,” Namuwoza said.
Aga Sekalala, one of the leading vanilla processors and exporters through Uvan, has previously said that whereas the demand and market for vanilla was still big, Uganda can only benefit if the country can avoid exporting immature beans.
In 2022, Kyakulaga said government had already drafted a Vanilla Policy, out of which it would develop a Vanilla Law and strategy to improve the vanilla value chain. However, not much has since been said about the policy.
Government only governs the vanilla sector through guidelines and ordinances that were issued in 2019 to maintain the profitability of vanilla trade.
The guidelines followed regional engagements with players in the vanilla value chain, where it was noted that middlemen were diluting the quality of vanilla by encouraging the trade in unripe beans.
