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Market development
Export market
The export sector is dominated by larger companies, both local and international, who have entered into organic trade to supplement their existing trade in conventional products. Most provide bulk raw materials to the developed markets, although some carry out primary processing before export. The exceptions are fresh fruit exporters, dried fruit exporters, and companies dealing in essential oils and aromatic plants, where end market products are being exported. The export value of organic products from Uganda was estimated to exceed US$7 million in 2005, and it has been growing rapidly in the last five years, averaging 65% per annum between 2003 and 2005. Over the past three years there has been more demand for Uganda’s organic products than could be supplied, presenting a big market opportunity to be explored by the thousands of smallholder farmers.
The development of the organic export markets to date has relied heavily on the support of programs such as Export Promotion of Organic Products from Africa (EPOPA)2, and Centre for the Promotion of Imports from Developing Countries (CBI -a Dutch program facilitated by the Dutch Ministry of Foreign Affairs). EPOPA has worked closely with a number of Ugandan organic exporters, allowing them to increase their level of international competitiveness, which has translated into increased organic exports from Uganda. CBI has primarily played the role of assisting in various matters of access to the EU market. As a result of these efforts, the number of organic export projects increased steadily from fewer than five in 2002 to over 25 by the end of 2006.
The National Organic Agricultural Movement of Uganda (NOGAMU), which is the apex organisation bringing together the producers, processors, exporters, NGOs, and other stakeholders in the organic sector, has instigated a measure among organic dried fruit processors to ensure their standards of hygiene and sanitation. Working with Makerere University with support from HIVOS (a Dutch NGO), NOGAMU has embarked on a series of training programs, including the deployment of graduate interns at dried fruit processing facilities. The United Nations Industrial Development Organization (UNIDO), with contributions from NOGAMU, is currently in the process of writing a curriculum for the training of dried fruit processors in standards of sanitation and hygiene.
Domestic market
NOGAMU established a shop for organic products in Kampala in 2002, through which its membership can access the local market. The shop has grown, with monthly sales rising from UGS170,000 in January 2003 to over UGS2 million in December 2004. The annual sales of organic products in the NOGAMU shop reached UGS38 million by the end of 2006. NOGAMU also has three contracts for supplies to schools and restaurants. Further local marketing efforts by Uganda’s organic movement have resulted in some producers being able to supply local supermarkets with organic goods, such as dried fruits, honey, and muesli. The organic products in greatest demand at the NOGAMU shop are fresh vegetables, fresh and dried fruits, spices, fruit juice concentrates, ready-to-drink-juices, free range eggs, vegetable oils, and Shea nut butter. NOGAMU is in the process of establishing other outlets in major towns of Uganda for marketing organic products.
In order to increase local sales of organic products, the shop introduced a basket home delivery scheme as a convenience for customers who sometimes are discouraged from going shopping because of the constant traffic jams on the city roads. The current and prospective consumers interested in organic products are sent emails every week containing a list of the products available with their prices. Consumers then respond and place orders indicating the quantity they wish to be supplied with in the basket.
Organic producers are currently receiving higher prices than suppliers of conventional products, especially with fresh vegetables, where domestic market suppliers are getting organic price premiums ranging from 30 to 50% . The domestic market currently is not based on certified production. NOGAMU has implemented some verification mechanisms through its marketing department.
NOGAMU is also involved in raising awareness among consumers. This has been done through the production of information materials that include brochures, posters, leaflets, and advertisements placed in the major local newspapers. Promotional materials that include T-shirts and caps that have the NOGAMU logo inscribed on them are also produced and sold at subsidized rates. An annual ‘NOGAMU day’ is a main vehicle to reach the public. NOGAMU also organizes and coordinates participation of members in many other relevant local trade shows.(Author: Moses Kiggundu Muwanga)
(Adapted From IFOAM, Building Sustainable Organic Sectors)
Further reading on Early Organic Sector Development In Uganda:
Case Study Overview
Organic Agricultural and Social Conditions
Organization and Structure
Regulatory Framework
Policy
Supporting Structures and Lessons Learned
IFOAM is constantly updating the information on this website. Comments or suggestions contact the Platform Coordinator
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