The document discusses establishing sustainable markets for Ugandan products using value chains. It outlines several challenges including meeting high standards for quality, packaging, and food safety. Constraints include the high costs of certification, limited production capacity, and high transport costs. Small producers are being marginalized as supermarkets push for bulk sourcing from large suppliers. The document argues for developing regional markets in Africa which are less demanding than global markets, and cooperating within value chains to gain access to international markets by meeting demands for quality, price, volumes, and delivery schedules.

1. Establishing Sustainable Markets
for Ugandan Products
Using Value Chains as tool for
Development

2. Introduction
• Attitude to work and business
• Production
• Market Access Requirements
• Global Trends
• Challenges
• Supply Chains
• Possible solutions

3. Attitude to Work

4. Production

5. WHAT ARE THE MARKET REQUIREMENTS?
• Quality – appearance, packaging, shelf life,
cooling,
food safety, microbiology analysis, hygiene
• Competitive pricing
• Quantity
• Reliability
• Just- in- time Deliveries

6. Market Requirements
• Compliance to regulations ( most critical)
- Organic Certification
- Eurep gap
- Traceability
- HACCP
- BRC : British Retail Consortium
- MRL: Minimum Residue levels
- SPS : Sanitary and Phytosanitary measures

7. Challenges with Standards
• Determined by the Consumers
• Supermarkets
• We have multiplicity of requirements across
different markets.
• Standards are set and the process of challenging
their legality poses enormous difficulties.
• Small producers are now being marginalized focusing
is shifting to large producers/ exporters.

8. The Market

9. WHAT ARE THE CONSTRAINTS
• High cost of Organic Certification
• PIP/EUREPGAP Certification
• Poor post-harvest techniques of farmers
• Limited production capacity of Solar driers, electricity e.t.c
• High airfreight costs
- Entebbe to Europe 1.6 – 1.8 USD/kg.
- West Africa to Europe 0.7 – 0.8 USD/kg.
• Transport by sea
- Uganda to Europe 23 days, 0.8 USD/kg.
- West Africa to Europe 11 days, 0.30 USD/kg.
Shelf life pineapples 21 days,7 to 12deg C, 90% RH

11. Supermarket Buying Power
• Large supermarket are
pushing for a marketing
system where they can
source in bulk, assured
of security of supply
and capability to meet
the detailed product
specs.

12. The Down Side of the Recent Trends
• Likely effect of the trend is that
– A fall in export production &
– increased production cost
– Higher risk of crop wastage and crop failure
– Exclusion of small growers from the supply chain
– Increase need in technical, marketing and general
management to meet the international demand.
– Cost of certification and compliance

13. Participation in the Global Market
The potential development benefit from
integration into global value chains is
affected by global trade rules and agreements
and by the way in which the integration into
value chains takes place
Should we consecrate on the developing the regional Market
than fighting for the cold dollar ?
!!!Think about the market opportunities !!!!
After China what next

14. Struggling for trade fairness
• Export oriented agriculture is determined by the
structure and conditions of trade
• We are affected by the protectionist agricultural
policies from the rich importing countries
• Our products are subject to unfair competition e.g. in
2000 OECD countries, producers received subsidy
worth US $ 330 billion which equal t Africa’s entire
annual GDP.

15. Our products
• Low Value Exports
– Coffee, Tea, Cotton, Maize, Beans e.t.c
increasingly being affected by trade policies in the
international market ; increasing competition
from the far east
• High Value Exports
– Fruits, vegetables , fish , exotic products- less
affected by unfair trade policies.; due to land
fragmentation we have low production

16. Obstacles for Ugandan Exporters
• Internal Obstacles
– Inadequate technologies
– Poor infrastructure and communication
– Red tape
– Corruption
– Poor ethical practices
– Other supply side constraints are due to poor
performance of our government in aspects of
international trade.

17. Contd…
• Lack of organised production.
• Lack of right varieties for planting
• Setting up farmer groups, quality dried fruits.
• Continuous training of farmers; post harvest handling,
hygiene, traceability.
• Some packaging material unavailable locally
• Complying to International standards
e.g. Eurep gap, Traceability, HACCP etc.
 Incase of disease outbreaks (ginger apple,banana), solutions
on control.
• Poor Infrastructure i.e. the roads, cooling facilities

18. Competitiveness
• Competitiveness is a multi- facetted
phemenon; not only the entrepreneurial
capacity at the micro level determines the
commercial success.
• Value added chains are important in achieving
competitiveness in the market.

19. Supply Chain
Consumer
Agri Industry
Processing
Retailer
Food Industry
Farmers
Input Supplier
Industrialized
Country
Developing Country

20. Value added Chains
• You will gain or maintain access to international food
markets, producers need to exactly comply with
market demands.
• Balance competition for quality , price , and the
delivery of the right volumes at the right time.
• Access to sophisticated management technologies
• Quality and marketing logistics.
Normally cooperation with lead firms is often the only
way to winning market access in the internal
market.

21. In conclusion
• We need to :
– Shape our entrepreneurship first
– Put pressure to Government
– Follow the trends , target the niche markets based
on our model of production
– Develop the regional market – COMESA, EAC and
Africa. Which is less demanding.