Global demand for organic products widens market for Ugandan farmers
Coffee is one of the products that are in demand by consumers of organic products. Uganda farmers stand to benefit from this huge global market.
Trends show that global consumption and demand for organic foods increased from $23b (Shs34.5t), in 2003, to $63b (Shs160.5 t) as of 2013, which presents an huge opportunity for Ugandan farmers. “The advantage with Uganda is that we have the largest growing organic certified lands in Africa,” notes Chariton Namuwoza, chief of value chain and programmes, National Organic Agricultural Movement of Uganda (Nogamu).
Tremendous growth
Latest figures show that by last year, there were 350,000 hectares under organic farming, accounting for more than two per cent of the agricultural land. There are 1.2 million sustainable organic farmers, with 189,000 of them certified. Organic exports are also increasing. In 2012/2013, the country earned $44m (Shs114.4b) up from $42m (Shs109.6b) earned in 2011/2012. “About 10 years ago, the country earned $4m (Shs10.4b) from the organic exports,” Namuwoza shares. “This shows a tremendous growth.”
Export markets
European Union countries consume more than 80 per cent of Uganda’s organically grown products. These are Germany, Denmark, Switzerland, Austria, Belgium, Netherlands, France, Sweden, Norway, Italy and UK. The other destinations include US, Japan, the Middle East, Kenya, South Sudan and Rwanda.
Also, the number of organic exporters has been growing and are fully certified or in conversion, from internationally accredited certifying bodies.
Currently, Uganda has the second highest number of certified farmers in Africa, 44 certified export companies, ranks 13 in the world as regards the land area under organic agriculture and first in Africa.
The products grown organically and sourced from Uganda include the following: Cotton (lint, yarn and garments), coffee (Arabic and Robusta), sesame (simsim), dried fruit (pineapples, apple bananas, mangoes, jack fruit), fresh fruits (pineapple, apple bananas, passion fruits, avocadoes, papaya/pawpaw, ginger), jack fruit, vanilla, cocoa, fish, shea butter and shea nuts, bird-eyed chillies, dried hibiscus and honey.
Challenges
The biggest challenge many farmers face is the cost of processing certification. “The charges depend on the size of the farm and this could cost $3,000 (Shs7.8m) to $10,000 (Shs26m) which is too much since most are smallholder based,” Namuwoza explains. His advice for farmers is to get group certification than individual.
The other challenge has been setting up quality management systems which include training and documentation. All this comes with costs. Crop financing is yet another. The market is available but the farmers cannot export because they do not have enough capital to invest, and banks will not lend smallholder farmers and ask for high interest rates.
There are infrastructure challenges. Demand is for quality products, say, processed fruits either dried or in pulp form but accessing the machinery to do the job comes at a cost. Then the transport cost, both at seaport and airport, makes Ugandan farmers less competitive because the products will be more expensive because the country is landlocked.
Requirements for Certification
To benefit from this growing market through export requires an organic certification, which describes the production. Other export documents needed include the EU 1 Certificate and each country has its requirements.
The Phytosanitary Certificate requires a farmer to follow the official document issued by the plant protection organisation of the exporting country to the plant protection organisation of the importing country. This certifies that the plants or plant products covered by the certificate have been inspected according to appropriate procedures and are considered to be free from quarantine pests and practically free from other injurious pests, and that they are considered to conform to the current phytosanitary regulations of the importing country.
The other requirements for one to start exporting organic products out of Uganda include -a trading License, packing list and invoice are required out of any port-let it be seaport or airport.
